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When Can I File An Amended Tax Return For 2013

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When Can I File An Amended Tax Return For 2013

When can i file an amended tax return for 2013 1. When can i file an amended tax return for 2013   Canceled Debts Table of Contents General RulesForm 1099-C Discounts and loan modifications Sales or other dispositions (such as foreclosures and repossessions) Abandonments Stockholder debt This chapter discusses the tax treatment of canceled debts. When can i file an amended tax return for 2013 General Rules Generally, if a debt for which you are personally liable is forgiven or discharged for less than the full amount owed, the debt is considered canceled in whatever amount it remained unpaid. When can i file an amended tax return for 2013 There are exceptions to this rule, discussed under Exceptions , later. When can i file an amended tax return for 2013 Generally, you must include the canceled debt in your income. When can i file an amended tax return for 2013 However, you may be able to exclude the canceled debt. When can i file an amended tax return for 2013 See Exclusions , later. When can i file an amended tax return for 2013 Example. When can i file an amended tax return for 2013 John owed $1,000 to Mary. When can i file an amended tax return for 2013 Mary agreed to accept and John paid $400 in satisfaction of the entire debt. When can i file an amended tax return for 2013 John has canceled debt of $600. When can i file an amended tax return for 2013 Example. When can i file an amended tax return for 2013 Margaret owed $1,000 to Henry. When can i file an amended tax return for 2013 Henry and Margaret agreed that Margaret would provide Henry with services (instead of money) in full satisfaction of the debt. When can i file an amended tax return for 2013 Margaret does not have canceled debt. When can i file an amended tax return for 2013 Instead, she has income from services. When can i file an amended tax return for 2013 A debt includes any indebtedness: For which you are liable, or Subject to which you hold property. When can i file an amended tax return for 2013 Debt for which you are personally liable is recourse debt. When can i file an amended tax return for 2013 All other debt is nonrecourse debt. When can i file an amended tax return for 2013 If you are not personally liable for the debt, you do not have ordinary income from the cancellation of debt unless you retain the collateral and either: The lender offers a discount for the early payment of the debt, or The lender agrees to a loan modification that results in the reduction of the principal balance of the debt. When can i file an amended tax return for 2013 See Discounts and loan modifications , later. When can i file an amended tax return for 2013 However, upon the disposition of the property securing a nonrecourse debt, the amount realized includes the entire unpaid amount of the debt, not just the FMV of the property. When can i file an amended tax return for 2013 As a result, you may realize a gain or loss if the outstanding debt immediately before the disposition is more or less than your adjusted basis in the property. When can i file an amended tax return for 2013 For more details on figuring your gain or loss, see chapter 2 of this publication or see Publication 544. When can i file an amended tax return for 2013 There are several exceptions and exclusions that may result in part or all of a canceled debt being nontaxable. When can i file an amended tax return for 2013 See Exceptions and Exclusions, later. When can i file an amended tax return for 2013 You must report any taxable canceled debt as ordinary income on: Form 1040 or Form 1040NR, line 21, if the debt is a nonbusiness debt; Schedule C (Form 1040), line 6 (or Schedule C-EZ (Form 1040), line 1), if the debt is related to a nonfarm sole proprietorship; Schedule E (Form 1040), line 3, if the debt is related to nonfarm rental of real property; Form 4835, line 6, if the debt is related to a farm rental activity for which you use Form 4835 to report farm rental income based on crops or livestock produced by a tenant; or Schedule F (Form 1040), line 8, if the debt is farm debt and you are a farmer. When can i file an amended tax return for 2013 Form 1099-C If you receive a Form 1099-C, that means an applicable entity has reported an identifiable event to the IRS regarding a debt you owe. When can i file an amended tax return for 2013 The identifiable event may be an actual cancellation of the debt or it may be an event the applicable entity is required, solely for purposes of reporting to the IRS, to treat as a cancellation of debt. When can i file an amended tax return for 2013 For information on the reasons an applicable entity files Form 1099-C, see Identifiable event codes, later. When can i file an amended tax return for 2013 Unless you meet one of the exceptions or exclusions discussed later, this canceled debt is ordinary income and must be reported on the appropriate form discussed above. When can i file an amended tax return for 2013 An applicable entity includes: A federal government agency, A financial institution, A credit union, and Any organization a significant trade or business of which is lending money. When can i file an amended tax return for 2013 Identifiable event codes. When can i file an amended tax return for 2013    Box 6 of Form 1099-C should indicate the reason the creditor filed this form. When can i file an amended tax return for 2013 The codes shown in box 6 are explained below. When can i file an amended tax return for 2013 Also see the chart after the explanation for a quick reference guide for the codes used in Box 6. When can i file an amended tax return for 2013 Note. When can i file an amended tax return for 2013 Codes A through G and I identify specific occurrences resulting from an actual discharge of indebtedness. When can i file an amended tax return for 2013 However, Code H, Expiration of nonpayment testing period, does not necessarily identify an actual discharge of indebtedness. When can i file an amended tax return for 2013 Code A — Bankruptcy. When can i file an amended tax return for 2013 Code A is used to identify cancellation of debt as a result of a title 11 bankruptcy case. When can i file an amended tax return for 2013 See Bankruptcy , later. When can i file an amended tax return for 2013 Code B — Other judicial debt relief. When can i file an amended tax return for 2013 Code B is used to identify cancellation of debt as a result of a receivership, foreclosure, or similar federal or state court proceeding other than bankruptcy. When can i file an amended tax return for 2013 Code C — Statute of limitations or expiration of deficiency period. When can i file an amended tax return for 2013 Code C is used to identify cancellation of debt either when the statute of limitations for collecting the debt expires or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. When can i file an amended tax return for 2013 In the case of the expiration of a statute of limitations, an identifiable event occurs only if and when your affirmative defense of the statute of limitations is upheld in a final judgment or decision in a judicial proceeding, and the period for appealing the judgment or decision has expired. When can i file an amended tax return for 2013 Code D — Foreclosure election. When can i file an amended tax return for 2013 Code D is used to identify cancellation of debt when the creditor elects foreclosure remedies that statutorily end or bar the creditor's right to pursue collection of the debt. When can i file an amended tax return for 2013 This event applies to a mortgage lender or holder who is barred from pursuing debt collection after a power of sale in the mortgage or deed of trust is exercised. When can i file an amended tax return for 2013 Code E — Debt relief from probate or similar proceeding. When can i file an amended tax return for 2013 Code E is used to identify cancellation of debt as a result of a probate court or similar legal proceeding. When can i file an amended tax return for 2013 Code F — By agreement. When can i file an amended tax return for 2013 Code F is used to identify cancellation of debt as a result of an agreement between the creditor and the debtor to cancel the debt at less than full consideration. When can i file an amended tax return for 2013 Code G — Decision or policy to discontinue collection. When can i file an amended tax return for 2013 Code G is used to identify cancellation of debt as a result of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. When can i file an amended tax return for 2013 For purposes of this identifiable event, a defined policy includes both a written policy and the creditor's established business practice. When can i file an amended tax return for 2013 Code H — Expiration of nonpayment testing period. When can i file an amended tax return for 2013 Code H is used to indicate that the creditor has not received a payment on the debt during a testing period ending on December 31, 2013. When can i file an amended tax return for 2013 The testing period is a 36-month period increased by the number of months the creditor was prevented from engaging in collection activity by a stay in bankruptcy or similar bar under state or local law. When can i file an amended tax return for 2013 This identifiable event applies only for a creditor that is a financial institution or credit union (and certain of their subsidiaries), the Federal Deposit Insurance Corporation (FDIC), Resolution Trust Corporation (RTC), National Credit Union Administration (NCUA), and other Federal executive agencies. When can i file an amended tax return for 2013 Expiration of the nonpayment testing period does not necessarily result from an actual discharge of indebtedness. When can i file an amended tax return for 2013 Code I — Other actual discharge before identifiable event. When can i file an amended tax return for 2013 Code I is used to identify an actual cancellation of debt that occurs before any of the identifiable events described in codes A through H. When can i file an amended tax return for 2013 Form 1099-C Reference Guide for Box 6 Identifiable Event Codes A Bankruptcy B Other judicial debt relief C Statute of limitations or expiration of deficiency period D Foreclosure election E Debt relief from probate or similar proceeding F By agreement G Decision or policy to discontinue collection H Expiration of nonpayment testing period I Other actual discharge before identifiable event Even if you did not receive a Form 1099-C, you must report canceled debt as gross income on your tax return unless one of the exceptions or exclusions described later applies. When can i file an amended tax return for 2013 Amount of canceled debt. When can i file an amended tax return for 2013    The amount in box 2 of Form 1099-C may represent some or all of the debt that has been canceled or treated as canceled. When can i file an amended tax return for 2013 The amount in box 2 will include principal and may include interest and other nonprincipal amounts (such as fees or penalties). When can i file an amended tax return for 2013 Unless you meet one of the exceptions or exclusions discussed later, the amount of the debt that has been canceled is ordinary income and must be reported on the appropriate form as discussed earlier. When can i file an amended tax return for 2013 Interest included in canceled debt. When can i file an amended tax return for 2013    If any interest is included in the amount of canceled debt in box 2, it will be shown in box 3. When can i file an amended tax return for 2013 Whether the interest portion of the canceled debt must be included in your income depends on whether the interest would be deductible if you paid it. When can i file an amended tax return for 2013 See Deductible Debt under Exceptions, later. When can i file an amended tax return for 2013 Persons who each receive a Form 1099-C showing the full amount of debt. When can i file an amended tax return for 2013    If you and another person were jointly and severally liable for a canceled debt, each of you may get a Form 1099-C showing the entire amount of the canceled debt. When can i file an amended tax return for 2013 However, you may not have to report that entire amount as income. When can i file an amended tax return for 2013 The amount, if any, you must report depends on all the facts and circumstances, including: State law, The amount of debt proceeds each person received, How much of any interest deduction from the debt was claimed by each person, How much of the basis of any co-owned property bought with the debt proceeds was allocated to each co-owner, and Whether the canceled debt qualifies for any of the exceptions or exclusions described in this publication. When can i file an amended tax return for 2013 See Example 3 under Insolvency, later. When can i file an amended tax return for 2013 Discounts and loan modifications If a lender discounts (reduces) the principal balance of a loan because you pay it off early, or agrees to a loan modification (a “workout”) that includes a reduction in the principal balance of a loan, the amount of the discount or the amount of principal reduction is canceled debt. When can i file an amended tax return for 2013 However, if the debt is nonrecourse and you did not retain the collateral, you do not have cancellation of the debt income. When can i file an amended tax return for 2013 The amount of the canceled debt must be included in income unless one of the exceptions or exclusions described later applies. When can i file an amended tax return for 2013 For more details, see Exceptions and Exclusions, later. When can i file an amended tax return for 2013 Sales or other dispositions (such as foreclosures and repossessions) Recourse debt. When can i file an amended tax return for 2013   If you owned property that was subject to a recourse debt in excess of the FMV of the property, the lender's foreclosure or repossession of the property is treated as a sale or disposition of the property by you and may result in your realization of gain or loss. When can i file an amended tax return for 2013 The gain or loss on the disposition of the property is measured by the difference between the FMV of the property at the time of the disposition and your adjusted basis (usually your cost) in the property. When can i file an amended tax return for 2013 The character of the gain or loss (such as ordinary or capital) is determined by the character of the property. When can i file an amended tax return for 2013 If the lender forgives all or part of the amount of the debt in excess of the FMV of the property, the cancellation of the excess debt may result in ordinary income. When can i file an amended tax return for 2013 The ordinary income from the cancellation of debt (the excess of the canceled debt over the FMV of the property) must be included in your gross income reported on your tax return unless one of the exceptions or exclusions described later applies. When can i file an amended tax return for 2013 For more details, see Exceptions and Exclusions, later. When can i file an amended tax return for 2013 Nonrecourse debt. When can i file an amended tax return for 2013   If you owned property that was subject to a nonrecourse debt in excess of the FMV of the property, the lender's foreclosure on the property does not result in ordinary income from the cancellation of debt. When can i file an amended tax return for 2013 The entire amount of the nonrecourse debt is treated as an amount realized on the disposition of the property. When can i file an amended tax return for 2013 The gain or loss on the disposition of the property is measured by the difference between the total amount realized (the entire amount of the nonrecourse debt plus the amount of cash and the FMV of any property received) and your adjusted basis in the property. When can i file an amended tax return for 2013 The character of the gain or loss is determined by the character of the property. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013    See Publications 523, 544, and 551, and chapter 2 of this publication for more details. When can i file an amended tax return for 2013 Abandonments Recourse debt. When can i file an amended tax return for 2013   If you abandon property that secures a debt for which you are personally liable (recourse debt) and the debt is canceled, you will realize ordinary income equal to the canceled debt. When can i file an amended tax return for 2013 You must report this income on your tax return unless one of the exceptions or exclusions described later applies. When can i file an amended tax return for 2013 For more details, see Exceptions and Exclusions, later. When can i file an amended tax return for 2013 This income is separate from any amount realized from the abandonment of the property. When can i file an amended tax return for 2013 For more details, see chapter 3. When can i file an amended tax return for 2013 Nonrecourse debt. When can i file an amended tax return for 2013   If you abandon property that secures a debt for which you are not personally liable (nonrecourse debt), you may realize gain or loss but will not have cancellation of indebtedness income. When can i file an amended tax return for 2013 Stockholder debt If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution. When can i file an amended tax return for 2013 For more information, see Publication 542, Corporations. When can i file an amended tax return for 2013 Prev  Up  Next   Home   More Online Publications
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Response times from Appeals can vary, depending on the type of case and the time needed to review the file. Normally, you can expect to hear from an Appeals employee within 90 days after you file your request. If it has been more than 90 days since you filed your request, you should contact the office where you sent your appeal request. They can tell you when they forwarded your case to Appeals. Please allow 90 days from when your file was sent to Appeals for a reply. If the IRS office to which you sent your request cannot provide a reason for the delay you have two options: (1) have that office contact Appeals for an approximate date when Appeals might contact you, (2) call the Appeals Account Resolution Specialist (AARS) at 559-233-1267. The AARS can tell you if your case has been assigned to an Appeals employee and how to contact that employee directly.

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The time it takes to resolve your case depends on the facts and circumstances. It could take anywhere from 90 days to a year. Please contact your Appeals Officer or Settlement Officer for a more specific timeframe.

Page Last Reviewed or Updated: 16-Jan-2014

The When Can I File An Amended Tax Return For 2013

When can i file an amended tax return for 2013 Publication 583 - Main Content Table of Contents What New Business Owners Need To Know Forms of BusinessMore information. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013 Exception—Community Income. When can i file an amended tax return for 2013 Exception—Qualified joint venture. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013 Identification NumbersEmployer Identification Number (EIN) Payee's Identification Number Tax Year Accounting Method Business TaxesIncome Tax Self-Employment Tax Employment Taxes Excise Taxes Depositing Taxes Information Returns PenaltiesWaiver of penalty. When can i file an amended tax return for 2013 Business ExpensesBusiness Start-Up Costs Depreciation Business Use of Your Home Car and Truck Expenses RecordkeepingWhy Keep Records? Kinds of Records To Keep How Long To Keep Records Sample Record System How to Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What New Business Owners Need To Know As a new business owner, you need to know your federal tax responsibilities. When can i file an amended tax return for 2013 Table 1 can help you learn what those responsibilities are. When can i file an amended tax return for 2013 Ask yourself each question listed in the table, then see the related discussion to find the answer. When can i file an amended tax return for 2013 In addition to knowing about federal taxes, you need to make some basic business decisions. When can i file an amended tax return for 2013 Ask yourself: What are my financial resources? What products and services will I sell? How will I market my products and services? How will I develop a strategic business plan? How will I manage my business on a day-to-day basis? How will I recruit employees? The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. When can i file an amended tax return for 2013 For information on how to contact the SBA, see How to Get More Information, later. When can i file an amended tax return for 2013 Forms of Business The most common forms of business are the sole proprietorship, partnership, and corporation. When can i file an amended tax return for 2013 When beginning a business, you must decide which form of business to use. When can i file an amended tax return for 2013 Legal and tax considerations enter into this decision. When can i file an amended tax return for 2013 Only tax considerations are discussed in this publication. When can i file an amended tax return for 2013 Your form of business determines which income tax return form you have to file. When can i file an amended tax return for 2013 See Table 2 to find out which form you have to file. When can i file an amended tax return for 2013 Sole proprietorships. When can i file an amended tax return for 2013   A sole proprietorship is an unincorporated business that is owned by one individual. When can i file an amended tax return for 2013 It is the simplest form of business organization to start and maintain. When can i file an amended tax return for 2013 The business has no existence apart from you, the owner. When can i file an amended tax return for 2013 Its liabilities are your personal liabilities. When can i file an amended tax return for 2013 You undertake the risks of the business for all assets owned, whether or not used in the business. When can i file an amended tax return for 2013 You include the income and expenses of the business on your personal tax return. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013   For more information on sole proprietorships, see Publication 334, Tax Guide for Small Business. When can i file an amended tax return for 2013 If you are a farmer, see Publication 225, Farmer's Tax Guide. When can i file an amended tax return for 2013 Partnerships. When can i file an amended tax return for 2013   A partnership is the relationship existing between two or more persons who join to carry on a trade or business. When can i file an amended tax return for 2013 Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business. When can i file an amended tax return for 2013   A partnership must file an annual information return to report the income, deductions, gains, losses, etc. When can i file an amended tax return for 2013 , from its operations, but it does not pay income tax. When can i file an amended tax return for 2013 Instead, it “passes through” any profits or losses to its partners. When can i file an amended tax return for 2013 Each partner includes his or her share of the partnership's items on his or her tax return. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013   For more information on partnerships, see Publication 541, Partnerships. When can i file an amended tax return for 2013 Husband and wife business. When can i file an amended tax return for 2013   If you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. When can i file an amended tax return for 2013 Do not use Schedule C or C-EZ. When can i file an amended tax return for 2013 Instead, file Form 1065, U. When can i file an amended tax return for 2013 S. When can i file an amended tax return for 2013 Return of Partnership Income. When can i file an amended tax return for 2013 For more information, see Publication 541, Partnerships. When can i file an amended tax return for 2013 Exception—Community Income. When can i file an amended tax return for 2013   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. When can i file an amended tax return for 2013 S. When can i file an amended tax return for 2013 possession, you can treat the business either as a sole proprietorship or a partnership. When can i file an amended tax return for 2013 The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. When can i file an amended tax return for 2013 A change in your reporting position will be treated as a conversion of the entity. When can i file an amended tax return for 2013 Exception—Qualified joint venture. When can i file an amended tax return for 2013   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. When can i file an amended tax return for 2013 Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. When can i file an amended tax return for 2013 For an explanation of "material participation," see the Instructions for Schedule C, line G. When can i file an amended tax return for 2013   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. When can i file an amended tax return for 2013 Each of you must file a separate Schedule C or C-EZ and a separate Schedule SE. When can i file an amended tax return for 2013 For more information, see Qualified Joint Venture in the Instructions for Schedule SE. When can i file an amended tax return for 2013 Corporations. When can i file an amended tax return for 2013   In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. When can i file an amended tax return for 2013 A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. When can i file an amended tax return for 2013 A corporation can also take special deductions. When can i file an amended tax return for 2013   The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. When can i file an amended tax return for 2013 However, shareholders cannot deduct any loss of the corporation. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013   For more information on corporations, see Publication 542, Corporations. When can i file an amended tax return for 2013 S corporations. When can i file an amended tax return for 2013   An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation. When can i file an amended tax return for 2013 Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. When can i file an amended tax return for 2013 On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013   For more information on S corporations, see the instructions for Form 2553, Election by a Small Business Corporation, and Form 1120S, U. When can i file an amended tax return for 2013 S. When can i file an amended tax return for 2013 Income Tax Return for an S Corporation. When can i file an amended tax return for 2013 Limited liability company. When can i file an amended tax return for 2013   A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. When can i file an amended tax return for 2013 The members of an LLC are not personally liable for its debts. When can i file an amended tax return for 2013 An LLC may be classified for federal income tax purposes as either a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in regulations section 301. When can i file an amended tax return for 2013 7701-3. When can i file an amended tax return for 2013 For more information, see the instructions for Form 8832, Entity Classification Election. When can i file an amended tax return for 2013 Identification Numbers You must have a taxpayer identification number so the IRS can process your returns. When can i file an amended tax return for 2013 The two most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN). When can i file an amended tax return for 2013 An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000. When can i file an amended tax return for 2013 An EIN is issued to individuals (sole proprietors), partnerships, corporations, and other entities by the IRS and is in the following format: 00–0000000. When can i file an amended tax return for 2013 You must include your taxpayer identification number (SSN or EIN) on all returns and other documents you send to the IRS. When can i file an amended tax return for 2013 You must also furnish your number to other persons who use your identification number on any returns or documents they send to the IRS. When can i file an amended tax return for 2013 This includes returns or documents filed to report the following information. When can i file an amended tax return for 2013 Interest, dividends, royalties, etc. When can i file an amended tax return for 2013 , paid to you. When can i file an amended tax return for 2013 Any amount paid to you as a dependent care provider. When can i file an amended tax return for 2013 Certain other amounts paid to you that total $600 or more for the year. When can i file an amended tax return for 2013 If you do not furnish your identification number as required, you may be subject to penalties. When can i file an amended tax return for 2013 See Penalties, later. When can i file an amended tax return for 2013 Employer Identification Number (EIN) EINs are used to identify the tax accounts of employers, certain sole proprietors, corporations, partnerships, estates, trusts, and other entities. When can i file an amended tax return for 2013 If you don't already have an EIN, you need to get one if you: Have employees, Have a qualified retirement plan, Operate your business as a corporation or partnership, or File returns for: Employment taxes, or Excise taxes. When can i file an amended tax return for 2013 Applying for an EIN. When can i file an amended tax return for 2013   You may apply for an EIN: Online—Click on the EIN link at www. When can i file an amended tax return for 2013 irs. When can i file an amended tax return for 2013 gov/businesses/small. When can i file an amended tax return for 2013 The EIN is issued immediately once the application information is validated. When can i file an amended tax return for 2013 By telephone at 1-800-829-4933. When can i file an amended tax return for 2013 By mailing or faxing Form SS-4, Application for Employer Identification Number. When can i file an amended tax return for 2013 When to apply. When can i file an amended tax return for 2013   You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. When can i file an amended tax return for 2013 If you apply by mail, file Form SS-4 at least 4 weeks before you need an EIN. When can i file an amended tax return for 2013 If you apply by telephone or through the IRS website, you can get an EIN immediately. When can i file an amended tax return for 2013 If you apply by fax, you can get an EIN within 4 business days. When can i file an amended tax return for 2013   If you do not receive your EIN by the time a return is due, file your return anyway. When can i file an amended tax return for 2013 Write “Applied for” and the date you applied for the number in the space for the EIN. When can i file an amended tax return for 2013 Do not use your social security number as a substitute for an EIN on your tax returns. When can i file an amended tax return for 2013 More than one EIN. When can i file an amended tax return for 2013   You should have only one EIN. When can i file an amended tax return for 2013 If you have more than one EIN and are not sure which to use, contact the Internal Revenue Service Center where you file your return. When can i file an amended tax return for 2013 Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. When can i file an amended tax return for 2013 The IRS will tell you which number to use. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013   For more information about EINs, see Publication 1635, Understanding Your EIN. When can i file an amended tax return for 2013 Payee's Identification Number In the operation of a business, you will probably make certain payments you must report on information returns (discussed later under Information Returns). When can i file an amended tax return for 2013 The forms used to report these payments must include the payee's identification number. When can i file an amended tax return for 2013 Employee. When can i file an amended tax return for 2013   If you have employees, you must get an SSN from each of them. When can i file an amended tax return for 2013 Record the name and SSN of each employee exactly as they are shown on the employee's social security card. When can i file an amended tax return for 2013 If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. When can i file an amended tax return for 2013 This may occur, for example, if the employee's name has changed due to marriage or divorce. When can i file an amended tax return for 2013   If your employee does not have an SSN, he or she should file Form SS-5, Application for a Social Security Card, with the SSA. When can i file an amended tax return for 2013 This form is available at SSA offices or by calling 1-800-772-1213. When can i file an amended tax return for 2013 It is also available from the SSA website at www. When can i file an amended tax return for 2013 ssa. When can i file an amended tax return for 2013 gov. When can i file an amended tax return for 2013 Other payee. When can i file an amended tax return for 2013   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. When can i file an amended tax return for 2013 If you make reportable payments to an organization, such as a corporation or partnership, you must get its EIN. When can i file an amended tax return for 2013   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. When can i file an amended tax return for 2013 This form is available from IRS offices or by calling 1-800-829-3676. When can i file an amended tax return for 2013 It is also available from the IRS website at IRS. When can i file an amended tax return for 2013 gov. When can i file an amended tax return for 2013    If the payee does not provide you with an identification number, you may have to withhold part of the payments as backup withholding. When can i file an amended tax return for 2013 For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. When can i file an amended tax return for 2013 Tax Year You must figure your taxable income and file an income tax return based on an annual accounting period called a tax year. When can i file an amended tax return for 2013 A tax year is usually 12 consecutive months. When can i file an amended tax return for 2013 There are two kinds of tax years. When can i file an amended tax return for 2013 Calendar tax year. When can i file an amended tax return for 2013 A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. When can i file an amended tax return for 2013 Fiscal tax year. When can i file an amended tax return for 2013 A fiscal tax year is 12 consecutive months ending on the last day of any month except December. When can i file an amended tax return for 2013 A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. When can i file an amended tax return for 2013 If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. When can i file an amended tax return for 2013 You must use a calendar tax year if: You keep no books. When can i file an amended tax return for 2013 You have no annual accounting period. When can i file an amended tax return for 2013 Your present tax year does not qualify as a fiscal year. When can i file an amended tax return for 2013 You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. When can i file an amended tax return for 2013 For more information, see Publication 538, Accounting Periods and Methods. When can i file an amended tax return for 2013 First-time filer. When can i file an amended tax return for 2013   If you have never filed an income tax return, you can adopt either a calendar tax year or a fiscal tax year. When can i file an amended tax return for 2013 You adopt a tax year by filing your first income tax return using that tax year. When can i file an amended tax return for 2013 You have not adopted a tax year if you merely did any of the following. When can i file an amended tax return for 2013 Filed an application for an extension of time to file an income tax return. When can i file an amended tax return for 2013 Filed an application for an employer identification number. When can i file an amended tax return for 2013 Paid estimated taxes for that tax year. When can i file an amended tax return for 2013 Changing your tax year. When can i file an amended tax return for 2013   Once you have adopted your tax year, you may have to get IRS approval to change it. When can i file an amended tax return for 2013 To get approval, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year. When can i file an amended tax return for 2013 You may have to pay a fee. When can i file an amended tax return for 2013 For more information, see Publication 538. When can i file an amended tax return for 2013 Accounting Method An accounting method is a set of rules used to determine when and how income and expenses are reported. When can i file an amended tax return for 2013 You choose an accounting method for your business when you file your first income tax return. When can i file an amended tax return for 2013 There are two basic accounting methods. When can i file an amended tax return for 2013 Cash method. When can i file an amended tax return for 2013 Under the cash method, you report income in the tax year you receive it. When can i file an amended tax return for 2013 You usually deduct or capitalize expenses in the tax year you pay them. When can i file an amended tax return for 2013 Accrual method. When can i file an amended tax return for 2013 Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. When can i file an amended tax return for 2013 You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year. When can i file an amended tax return for 2013 For other methods, see Publication 538. When can i file an amended tax return for 2013 If you need inventories to show income correctly, you must generally use an accrual method of accounting for purchases and sales. When can i file an amended tax return for 2013 Inventories include goods held for sale in the normal course of business. When can i file an amended tax return for 2013 They also include raw materials and supplies that will physically become a part of merchandise intended for sale. When can i file an amended tax return for 2013 Inventories are explained in Publication 538. When can i file an amended tax return for 2013 Certain small business taxpayers can use the cash method of accounting and can also account for inventoriable items as materials and supplies that are not incidental. When can i file an amended tax return for 2013 For more information, see Publication 538. When can i file an amended tax return for 2013 You must use the same accounting method to figure your taxable income and to keep your books. When can i file an amended tax return for 2013 Also, you must use an accounting method that clearly shows your income. When can i file an amended tax return for 2013 In general, any accounting method that consistently uses accounting principles suitable for your trade or business clearly shows income. When can i file an amended tax return for 2013 An accounting method clearly shows income only if it treats all items of gross income and expense the same from year to year. When can i file an amended tax return for 2013 More than one business. When can i file an amended tax return for 2013   When you own more than one business, you can use a different accounting method for each business if the method you use for each clearly shows your income. When can i file an amended tax return for 2013 You must keep a complete and separate set of books and records for each business. When can i file an amended tax return for 2013 Changing your method of accounting. When can i file an amended tax return for 2013   Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. When can i file an amended tax return for 2013 A change in accounting method not only includes a change in your overall system of accounting, but also a change in the treatment of any material item. When can i file an amended tax return for 2013 For examples of changes that require approval and information on how to get approval for the change, see Publication 538. When can i file an amended tax return for 2013 Business Taxes The form of business you operate determines what taxes you must pay and how you pay them. When can i file an amended tax return for 2013 The following are the four general kinds of business taxes. When can i file an amended tax return for 2013 Income tax. When can i file an amended tax return for 2013 Self-employment tax. When can i file an amended tax return for 2013 Employment taxes. When can i file an amended tax return for 2013 Excise taxes. When can i file an amended tax return for 2013 See Table 2 for the forms you file to report these taxes. When can i file an amended tax return for 2013 You may want to get Publication 509. When can i file an amended tax return for 2013 It has tax calendars that tell you when to file returns and make tax payments. When can i file an amended tax return for 2013 Income Tax All businesses except partnerships must file an annual income tax return. When can i file an amended tax return for 2013 Partnerships file an information return. When can i file an amended tax return for 2013 Which form you use depends on how your business is organized. When can i file an amended tax return for 2013 See Table 2 to find out which return you have to file. When can i file an amended tax return for 2013 The federal income tax is a pay-as-you-go tax. When can i file an amended tax return for 2013 You must pay the tax as you earn or receive income during the year. When can i file an amended tax return for 2013 An employee usually has income tax withheld from his or her pay. When can i file an amended tax return for 2013 If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. When can i file an amended tax return for 2013 If you are not required to make estimated tax payments, you may pay any tax due when you file your return. When can i file an amended tax return for 2013 Table 2. When can i file an amended tax return for 2013 Which Forms Must I File? IF you are a. When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013   THEN you may be liable for. When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013   Use Form. When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 Sole proprietor   Income tax   1040 and Schedule C 1 or C-EZ (Schedule F 1 for farm business)     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES     Employment taxes:         • Social security and Medicare   taxes and income tax   withholding   941 or 944 (943 for farm employees)     • Federal unemployment (FUTA)   tax   940     Excise taxes   See Excise Taxes Partnership   Annual return of income   1065     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes Partner in a partnership (individual)   Income tax   1040 and Schedule E 2     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES Corporation or S corporation   Income tax   1120 (corporation) 2  1120S (S corporation) 2     Estimated tax   1120-W (corporation only)     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes S corporation shareholder   Income tax   1040 and Schedule E 2     Estimated tax   1040-ES 1 File a separate schedule for each business. When can i file an amended tax return for 2013 2 Various other schedules may be needed. When can i file an amended tax return for 2013 Estimated tax. When can i file an amended tax return for 2013   Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. When can i file an amended tax return for 2013 Sole proprietors, partners, and S corporation shareholders. When can i file an amended tax return for 2013   You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. When can i file an amended tax return for 2013 Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. When can i file an amended tax return for 2013 For more information, see Publication 505, Tax Withholding and Estimated Tax. When can i file an amended tax return for 2013 Corporations. When can i file an amended tax return for 2013   You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. When can i file an amended tax return for 2013 Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. When can i file an amended tax return for 2013 You must deposit the payments as explained later under Depositing Taxes. When can i file an amended tax return for 2013 For more information, see Publication 542. When can i file an amended tax return for 2013 Self-Employment Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. When can i file an amended tax return for 2013 Your payments of SE tax contribute to your coverage under the social security system. When can i file an amended tax return for 2013 Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. When can i file an amended tax return for 2013 You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. When can i file an amended tax return for 2013 Your net earnings from self-employment were $400 or more. When can i file an amended tax return for 2013 You had church employee income of $108. When can i file an amended tax return for 2013 28 or more. When can i file an amended tax return for 2013 Use Schedule SE (Form 1040) to figure your SE tax. When can i file an amended tax return for 2013 For more information, see Publication 334, Tax Guide for Small Business. When can i file an amended tax return for 2013 You can deduct a portion of your SE tax as an adjustment to income on your Form 1040. When can i file an amended tax return for 2013 The Social Security Administration (SSA) time limit for posting self-employment income. When can i file an amended tax return for 2013   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. When can i file an amended tax return for 2013 If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. When can i file an amended tax return for 2013 The SSA will not change its records to increase your self-employment income. When can i file an amended tax return for 2013 Employment Taxes This section briefly discusses the employment taxes you must pay, the forms you must file to report them, and other forms that must be filed when you have employees. When can i file an amended tax return for 2013 Employment taxes include the following. When can i file an amended tax return for 2013 Social security and Medicare taxes. When can i file an amended tax return for 2013 Federal income tax withholding. When can i file an amended tax return for 2013 Federal unemployment (FUTA) tax. When can i file an amended tax return for 2013 If you have employees, you will need to get Publication 15, Circular E, Employer's Tax Guide. When can i file an amended tax return for 2013 If you have agricultural employees, get Publication 51, Circular A, Agricultural Employer's Tax Guide. When can i file an amended tax return for 2013 These publications explain your tax responsibilities as an employer. When can i file an amended tax return for 2013 If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. When can i file an amended tax return for 2013 That publication has information to help you determine whether an individual is an employee or an independent contractor. When can i file an amended tax return for 2013 If you classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. When can i file an amended tax return for 2013 An independent contractor is someone who is self-employed. When can i file an amended tax return for 2013 Generally, you do not have to withhold or pay any taxes on payments to an independent contractor. When can i file an amended tax return for 2013 Federal Income, Social Security, and Medicare Taxes You generally must withhold federal income tax from your employee's wages. When can i file an amended tax return for 2013 To figure how much federal income tax to withhold from each wage payment, use the employee's Form W-4 (discussed later under Hiring Employees) and the methods described in Publication 15. When can i file an amended tax return for 2013 Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). When can i file an amended tax return for 2013 Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. When can i file an amended tax return for 2013 Medicare tax pays for benefits under the hospital insurance part of FICA. When can i file an amended tax return for 2013 You withhold part of these taxes from your employee's wages and you pay a part yourself. When can i file an amended tax return for 2013 To find out how much social security and Medicare tax to withhold and to pay, see Publication 15. When can i file an amended tax return for 2013 Which form do I file?   Report these taxes on Form 941, Employer's QUARTERLY Federal Tax Return, or Form 944, Employer's ANNUAL Federal Tax Return. When can i file an amended tax return for 2013 (Farm employers use Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. When can i file an amended tax return for 2013 ) Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. When can i file an amended tax return for 2013 You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. When can i file an amended tax return for 2013 You pay FUTA tax only from your own funds. When can i file an amended tax return for 2013 Employees do not pay this tax or have it withheld from their pay. When can i file an amended tax return for 2013 Which form do I file?   Report federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. When can i file an amended tax return for 2013 See Publication 15 to find out if you can use this form. When can i file an amended tax return for 2013 Hiring Employees Have the employees you hire fill out Form I-9 and Form W-4. When can i file an amended tax return for 2013 Form I-9. When can i file an amended tax return for 2013   You must verify that each new employee is legally eligible to work in the United States. When can i file an amended tax return for 2013 Both you and the employee must complete the U. When can i file an amended tax return for 2013 S. When can i file an amended tax return for 2013 Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. When can i file an amended tax return for 2013 You can get the form from USCIS offices or from the USCIS website at www. When can i file an amended tax return for 2013 uscis. When can i file an amended tax return for 2013 gov. When can i file an amended tax return for 2013 Call the USCIS at 1-800-375-5283 for more information about your responsibilities. When can i file an amended tax return for 2013 Form W-4. When can i file an amended tax return for 2013   Each employee must fill out Form W-4, Employee's Withholding Allowance Certificate. When can i file an amended tax return for 2013 You will use the filing status and withholding allowances shown on this form to figure the amount of income tax to withhold from your employee's wages. When can i file an amended tax return for 2013 For more information, see Publication 15. When can i file an amended tax return for 2013 Employees claiming more than 10 withholding allowances. When can i file an amended tax return for 2013   An employer of an employee who claims more than 10 withholding allowances for wages paid can use several methods of withholding. When can i file an amended tax return for 2013 See section 16 of Publication 15. When can i file an amended tax return for 2013 Form W-2 Wage Reporting After the calendar year is over, you must furnish copies of Form W-2, Wage and Tax Statement, to each employee to whom you paid wages during the year. When can i file an amended tax return for 2013 You must also send copies to the Social Security Administration. When can i file an amended tax return for 2013 See Information Returns, later, for more information on Form W-2. When can i file an amended tax return for 2013 Excise Taxes This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following. When can i file an amended tax return for 2013 Manufacture or sell certain products. When can i file an amended tax return for 2013 Operate certain kinds of businesses. When can i file an amended tax return for 2013 Use various kinds of equipment, facilities, or products. When can i file an amended tax return for 2013 Receive payment for certain services. When can i file an amended tax return for 2013 For more information on excise taxes, see Publication 510, Excise Taxes. When can i file an amended tax return for 2013 Form 720. When can i file an amended tax return for 2013   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. When can i file an amended tax return for 2013 Environmental taxes. When can i file an amended tax return for 2013 Communications and air transportation taxes. When can i file an amended tax return for 2013 Fuel taxes. When can i file an amended tax return for 2013 Tax on the first retail sale of heavy trucks, trailers, and tractors. When can i file an amended tax return for 2013 Manufacturers taxes on the sale or use of a variety of different articles. When can i file an amended tax return for 2013 Form 2290. When can i file an amended tax return for 2013   There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. When can i file an amended tax return for 2013 The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. When can i file an amended tax return for 2013 Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. When can i file an amended tax return for 2013 For more information, see the instructions for Form 2290. When can i file an amended tax return for 2013 Form 730. When can i file an amended tax return for 2013   If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. When can i file an amended tax return for 2013 Use Form 730, Monthly Tax Return for Wagers, to figure the tax on the wagers you receive. When can i file an amended tax return for 2013 Form 11-C. When can i file an amended tax return for 2013   Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering. When can i file an amended tax return for 2013 Depositing Taxes You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S corporation taxes before you file your return. When can i file an amended tax return for 2013 Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). When can i file an amended tax return for 2013 Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. When can i file an amended tax return for 2013 Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment. When can i file an amended tax return for 2013 Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. When can i file an amended tax return for 2013 The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. When can i file an amended tax return for 2013 You must give a copy of each information return you are required to file to the recipient or payer. When can i file an amended tax return for 2013 In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. When can i file an amended tax return for 2013 For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. When can i file an amended tax return for 2013 Form 1099-MISC. When can i file an amended tax return for 2013   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. When can i file an amended tax return for 2013 These payments include the following items. When can i file an amended tax return for 2013 Payments of $600 or more for services performed for your business by people not treated as your employees, such as subcontractors, attorneys, accountants, or directors. When can i file an amended tax return for 2013 Rent payments of $600 or more, other than rents paid to real estate agents. When can i file an amended tax return for 2013 Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. When can i file an amended tax return for 2013 Royalty payments of $10 or more. When can i file an amended tax return for 2013 Payments to certain crew members by operators of fishing boats. When can i file an amended tax return for 2013 You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. When can i file an amended tax return for 2013 Form W-2. When can i file an amended tax return for 2013   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. When can i file an amended tax return for 2013 For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3. When can i file an amended tax return for 2013 Form 8300. When can i file an amended tax return for 2013   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction or two or more related business transactions. When can i file an amended tax return for 2013 Cash includes U. When can i file an amended tax return for 2013 S. When can i file an amended tax return for 2013 and foreign coin and currency. When can i file an amended tax return for 2013 It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. When can i file an amended tax return for 2013 For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). When can i file an amended tax return for 2013 Penalties The law provides penalties for not filing returns or paying taxes as required. When can i file an amended tax return for 2013 Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. When can i file an amended tax return for 2013 Failure to file tax returns. When can i file an amended tax return for 2013   If you do not file your tax return by the due date, you may have to pay a penalty. When can i file an amended tax return for 2013 The penalty is based on the tax not paid by the due date. When can i file an amended tax return for 2013 See your tax return instructions for more information about this penalty. When can i file an amended tax return for 2013 Failure to pay tax. When can i file an amended tax return for 2013   If you do not pay your taxes by the due date, you will have to pay a penalty for each month, or part of a month, that your taxes are not paid. When can i file an amended tax return for 2013 For more information, see your tax return instructions. When can i file an amended tax return for 2013 Failure to withhold, deposit, or pay taxes. When can i file an amended tax return for 2013   If you do not withhold income, social security, or Medicare taxes from employees, or if you withhold taxes but do not deposit them or pay them to the IRS, you may be subject to a penalty of the unpaid tax, plus interest. When can i file an amended tax return for 2013 You may also be subject to penalties if you deposit the taxes late. When can i file an amended tax return for 2013 For more information, see Publication 15. When can i file an amended tax return for 2013 Failure to follow information reporting requirements. When can i file an amended tax return for 2013   The following penalties apply if you are required to file information returns. When can i file an amended tax return for 2013 For more information, see the General Instructions for Certain Information Returns. When can i file an amended tax return for 2013 Failure to file information returns. When can i file an amended tax return for 2013 A penalty applies if you do not file information returns by the due date, if you do not include all required information, or if you report incorrect information. When can i file an amended tax return for 2013 Failure to furnish correct payee statements. When can i file an amended tax return for 2013 A penalty applies if you do not furnish a required statement to a payee by the due date, if you do not include all required information, or if you report incorrect information. When can i file an amended tax return for 2013 Waiver of penalty. When can i file an amended tax return for 2013   These penalties will not apply if you can show that the failures were due to reasonable cause and not willful neglect. When can i file an amended tax return for 2013   In addition, there is no penalty for failure to include all the required information, or for including incorrect information, on a de minimis number of information returns if you correct the errors by August 1 of the year the returns are due. When can i file an amended tax return for 2013 (To be considered de minimis, the number of returns cannot exceed the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. When can i file an amended tax return for 2013 ) Failure to supply taxpayer identification number. When can i file an amended tax return for 2013   If you do not include your taxpayer identification number (SSN or EIN) or the taxpayer identification number of another person where required on a return, statement, or other document, you may be subject to a penalty of $50 for each failure. When can i file an amended tax return for 2013 You may also be subject to the $50 penalty if you do not give your taxpayer identification number to another person when it is required on a return, statement, or other document. When can i file an amended tax return for 2013 Business Expenses You can deduct business expenses on your income tax return. When can i file an amended tax return for 2013 These are the current operating costs of running your business. When can i file an amended tax return for 2013 To be deductible, a business expense must be both ordinary and necessary. When can i file an amended tax return for 2013 An ordinary expense is one that is common and accepted in your field of business, trade, or profession. When can i file an amended tax return for 2013 A necessary expense is one that is helpful and appropriate for your business, trade, or profession. When can i file an amended tax return for 2013 An expense does not have to be indispensable to be considered necessary. When can i file an amended tax return for 2013 The following are brief explanations of some expenses that are of interest to people starting a business. When can i file an amended tax return for 2013 There are many other expenses that you may be able to deduct. When can i file an amended tax return for 2013 See your form instructions and Publication 535, Business Expenses. When can i file an amended tax return for 2013 Business Start-Up Costs Business start-up costs are the expenses you incur before you actually begin business operations. When can i file an amended tax return for 2013 Your business start-up costs will depend on the type of business you are starting. When can i file an amended tax return for 2013 They may include costs for advertising, travel, surveys, and training. When can i file an amended tax return for 2013 These costs are generally capital expenses. When can i file an amended tax return for 2013 You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). When can i file an amended tax return for 2013 You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. When can i file an amended tax return for 2013 The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. When can i file an amended tax return for 2013 Any remaining cost must be amortized. When can i file an amended tax return for 2013 For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535. When can i file an amended tax return for 2013 Depreciation If property you acquire to use in your business has a useful life that extends substantially beyond the year it is placed in service, you generally cannot deduct the entire cost as a business expense in the year you acquire it. When can i file an amended tax return for 2013 You must spread the cost over more than one tax year and deduct part of it each year. When can i file an amended tax return for 2013 This method of deducting the cost of business property is called depreciation. When can i file an amended tax return for 2013 Business property you must depreciate includes the following items. When can i file an amended tax return for 2013 Office furniture. When can i file an amended tax return for 2013 Buildings. When can i file an amended tax return for 2013 Machinery and equipment. When can i file an amended tax return for 2013 You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. When can i file an amended tax return for 2013 This deduction is known as the “section 179 deduction. When can i file an amended tax return for 2013 ” For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property. When can i file an amended tax return for 2013 Depreciation must be taken in the year it is allowable. When can i file an amended tax return for 2013 Allowable depreciation not taken in a prior year cannot be taken in the current year. When can i file an amended tax return for 2013 If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U. When can i file an amended tax return for 2013 S. When can i file an amended tax return for 2013 Individual Income Tax Return, or by changing your accounting method. When can i file an amended tax return for 2013 For more information on how to correct depreciation deductions, see chapter 1 in Publication 946. When can i file an amended tax return for 2013 Business Use of Your Home To deduct expenses related to the business use of part of your home, you must meet specific requirements. When can i file an amended tax return for 2013 Even then, your deduction may be limited. When can i file an amended tax return for 2013 To qualify to claim expenses for business use of your home, you must meet both the following tests. When can i file an amended tax return for 2013 Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use, later), Regular, For your trade or business, AND The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or A separate structure (not attached to your home) you use in connection with your trade or business. When can i file an amended tax return for 2013 Exclusive use. When can i file an amended tax return for 2013   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. When can i file an amended tax return for 2013 The area used for business can be a room or other separately identifiable space. When can i file an amended tax return for 2013 The space does not need to be marked off by a permanent partition. When can i file an amended tax return for 2013   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. When can i file an amended tax return for 2013 Exceptions to exclusive use. When can i file an amended tax return for 2013   You do not have to meet the exclusive use test if either of the following applies. When can i file an amended tax return for 2013 You use part of your home for the storage of inventory or product samples. When can i file an amended tax return for 2013 You use part of your home as a daycare facility. When can i file an amended tax return for 2013 For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). When can i file an amended tax return for 2013 Principal place of business. When can i file an amended tax return for 2013   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. When can i file an amended tax return for 2013 You use it exclusively and regularly for administrative or management activities of your trade or business. When can i file an amended tax return for 2013 You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. When can i file an amended tax return for 2013   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. When can i file an amended tax return for 2013 The relative importance of the activities performed at each location. When can i file an amended tax return for 2013 If the relative importance factor does not determine your principal place of business, the time spent at each location. When can i file an amended tax return for 2013    If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. When can i file an amended tax return for 2013 However, for other ways to qualify to deduct home office expenses, see Publication 587. When can i file an amended tax return for 2013 Which form do I file?   If you file Schedule C (Form 1040), use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. When can i file an amended tax return for 2013 If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587. When can i file an amended tax return for 2013 More information. When can i file an amended tax return for 2013   For more information about business use of your home, see Publication 587. When can i file an amended tax return for 2013 Car and Truck Expenses If you use your car or truck in your business, you can deduct the costs of operating and maintaining it. When can i file an amended tax return for 2013 You generally can deduct either your actual expenses or the standard mileage rate. When can i file an amended tax return for 2013 Actual expenses. When can i file an amended tax return for 2013   If you deduct actual expenses, you can deduct the cost of the following items: Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. When can i file an amended tax return for 2013 You can divide your expenses based on the miles driven for each purpose. When can i file an amended tax return for 2013 Example. When can i file an amended tax return for 2013 You are the sole proprietor of a flower shop. When can i file an amended tax return for 2013 You drove your van 20,000 miles during the year. When can i file an amended tax return for 2013 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. When can i file an amended tax return for 2013 You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. When can i file an amended tax return for 2013 Standard mileage rate. When can i file an amended tax return for 2013   Instead of figuring actual expenses, you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. When can i file an amended tax return for 2013 You can use the standard mileage rate for a vehicle you own or lease. When can i file an amended tax return for 2013 The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. When can i file an amended tax return for 2013 It is announced annually by the IRS. When can i file an amended tax return for 2013 To figure your deduction, multiply your business miles by the standard mileage rate for the year. When can i file an amended tax return for 2013    Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. When can i file an amended tax return for 2013 However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes. When can i file an amended tax return for 2013 Choosing the standard mileage rate. When can i file an amended tax return for 2013   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. When can i file an amended tax return for 2013 In later years, you can choose to use either the standard mileage rate or actual expenses. When can i file an amended tax return for 2013   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). When can i file an amended tax return for 2013 Additional information. When can i file an amended tax return for 2013   For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. When can i file an amended tax return for 2013 Recordkeeping This part explains why you must keep records, what kinds of records you must keep, and how to keep them. When can i file an amended tax return for 2013 It also explains how long you must keep your records for federal tax purposes. When can i file an amended tax return for 2013 A sample recordkeeping system is illustrated at the end of this part. When can i file an amended tax return for 2013 Why Keep Records? Everyone in business must keep records. When can i file an amended tax return for 2013 Good records will help you do the following. When can i file an amended tax return for 2013 Monitor the progress of your business. When can i file an amended tax return for 2013   You need good records to monitor the progress of your business. When can i file an amended tax return for 2013 Records can show whether your business is improving, which items are selling, or what changes you need to make. When can i file an amended tax return for 2013 Good records can increase the likelihood of business success. When can i file an amended tax return for 2013 Prepare your financial statements. When can i file an amended tax return for 2013   You need good records to prepare accurate financial statements. When can i file an amended tax return for 2013 These include income (profit and loss) statements and balance sheets. When can i file an amended tax return for 2013 These statements can help you in dealing with your bank or creditors and help you manage your business. When can i file an amended tax return for 2013 An income statement shows the income and expenses of the business for a given period of time. When can i file an amended tax return for 2013 A balance sheet shows the assets, liabilities, and your equity in the business on a given date. When can i file an amended tax return for 2013 Identify source of receipts. When can i file an amended tax return for 2013   You will receive money or property from many sources. When can i file an amended tax return for 2013 Your records can identify the source of your receipts. When can i file an amended tax return for 2013 You need this information to separate business from nonbusiness receipts and taxable from nontaxable income. When can i file an amended tax return for 2013 Keep track of deductible expenses. When can i file an amended tax return for 2013   You may forget expenses when you prepare your tax return unless you record them when they occur. When can i file an amended tax return for 2013 Prepare your tax returns. When can i file an amended tax return for 2013   You need good records to prepare your tax returns. When can i file an amended tax return for 2013 These records must support the income, expenses, and credits you report. When can i file an amended tax return for 2013 Generally, these are the same records you use to monitor your business and prepare your financial statements. When can i file an amended tax return for 2013 Support items reported on tax returns. When can i file an amended tax return for 2013   You must keep your business records available at all times for inspection by the IRS. When can i file an amended tax return for 2013 If the IRS examines any of your tax returns, you may be asked to explain the items reported. When can i file an amended tax return for 2013 A complete set of records will speed up the examination. When can i file an amended tax return for 2013 Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. When can i file an amended tax return for 2013 You can choose any recordkeeping system suited to your business that clearly shows your income and expenses. When can i file an amended tax return for 2013 The business you are in affects the type of records you need to keep for federal tax purposes. When can i file an amended tax return for 2013 You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. When can i file an amended tax return for 2013 See Accounting Method, earlier. When can i file an amended tax return for 2013 If you are in more than one business, you should keep a complete and separate set of records for each business. When can i file an amended tax return for 2013 A corporation should keep minutes of board of directors' meetings. When can i file an amended tax return for 2013 Your recordkeeping system should include a summary of your business transactions. When can i file an amended tax return for 2013 This summary is ordinarily made in your books (for example, accounting journals and ledgers). When can i file an amended tax return for 2013 Your books must show your gross income, as well as your deductions and credits. When can i file an amended tax return for 2013 For most small businesses, the business checkbook (discussed later) is the main source for entries in the business books. When can i file an amended tax return for 2013 In addition, you must keep supporting documents, explained later. When can i file an amended tax return for 2013 Electronic records. When can i file an amended tax return for 2013   All requirements that apply to hard copy books and records also apply to electronic storage systems that maintain tax books and records. When can i file an amended tax return for 2013 When you replace hard copy books and records, you must maintain the electronic storage systems for as long as they are material to the administration of tax law. When can i file an amended tax return for 2013 An electronic storage system is any system for preparing or keeping your records either by electronic imaging or by transfer to an electronic storage media. When can i file an amended tax return for 2013 The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. When can i file an amended tax return for 2013 All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. When can i file an amended tax return for 2013 Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. When can i file an amended tax return for 2013   The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. When can i file an amended tax return for 2013 You still have the responsibility of retaining any other books and records that are required to be retained. When can i file an amended tax return for 2013   The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. When can i file an amended tax return for 2013 This test is not considered an examination and the results must be shared with you. When can i file an amended tax return for 2013 If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. When can i file an amended tax return for 2013 If not, you may be subject to penalties for non-compliance, unless you continue to maintain your original hard copy books and records in a manner that allows you and the IRS to determine your correct tax. When can i file an amended tax return for 2013 For details on electronic storage system requirements, see Revenue Procedure 97-22, available in Internal Revenue Bulletin 1997-13. When can i file an amended tax return for 2013 Supporting Documents Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. When can i file an amended tax return for 2013 Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. When can i file an amended tax return for 2013 These documents contain information you need to record in your books. When can i file an amended tax return for 2013 It is important to keep these documents because they support the entries in your books and on your tax return. When can i file an amended tax return for 2013 Keep them in an orderly fashion and in a safe place. When can i file an amended tax return for 2013 For instance, organize them by year and type of income or expense. When can i file an amended tax return for 2013 Gross receipts. When can i file an amended tax return for 2013   Gross receipts are the income you receive from your business. When can i file an amended tax return for 2013 You should keep supporting documents that show the amounts and sources of your gross receipts. When can i file an amended tax return for 2013 Documents that show gross receipts include the following. When can i file an amended tax return for 2013 Cash register tapes. When can i file an amended tax return for 2013 Bank deposit slips. When can i file an amended tax return for 2013 Receipt books. When can i file an amended tax return for 2013 Invoices. When can i file an amended tax return for 2013 Credit card charge slips. When can i file an amended tax return for 2013 Forms 1099-MISC. When can i file an amended tax return for 2013 Purchases. When can i file an amended tax return for 2013   Purchases are the items you buy and resell to customers. When can i file an amended tax return for 2013 If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. When can i file an amended tax return for 2013 Your supporting documents should show the amount paid and that the amount was for purchases. When can i file an amended tax return for 2013 Documents for purchases include the following. When can i file an amended tax return for 2013 Canceled checks. When can i file an amended tax return for 2013 Cash register tape receipts. When can i file an amended tax return for 2013 Credit card sales slips. When can i file an amended tax return for 2013 Invoices. When can i file an amended tax return for 2013 These records will help you determine the value of your inventory at the end of the year. When can i file an amended tax return for 2013 See Publication 538 for information on methods for valuing inventory. When can i file an amended tax return for 2013 Expenses. When can i file an amended tax return for 2013   Expenses are the costs you incur (other than purchases) to carry on your business. When can i file an amended tax return for 2013 Your supporting documents should show the amount paid and that the amount was for a business expense. When can i file an amended tax return for 2013 Documents for expenses include the following. When can i file an amended tax return for 2013 Canceled checks. When can i file an amended tax return for 2013 Cash register tapes. When can i file an amended tax return for 2013 Account statements. When can i file an amended tax return for 2013 Credit card sales slips. When can i file an amended tax return for 2013 Invoices. When can i file an amended tax return for 2013 Petty cash slips for small cash payments. When can i file an amended tax return for 2013    A petty cash fund allows you to make small payments without having to write checks for small amounts. When can i file an amended tax return for 2013 Each time you make a payment from this fund, you should make out a petty cash slip and attach it to your receipt as proof of payment. When can i file an amended tax return for 2013 Travel, transportation, entertainment, and gift expenses. When can i file an amended tax return for 2013   Specific recordkeeping rules apply to these expenses. When can i file an amended tax return for 2013 For more information, see Publication 463. When can i file an amended tax return for 2013 Employment taxes. When can i file an amended tax return for 2013   There are specific employment tax records you must keep. When can i file an amended tax return for 2013 For a list, see Publication 15. When can i file an amended tax return for 2013 Assets. When can i file an amended tax return for 2013   Assets are the property, such as machinery and furniture you own and use in your business. When can i file an amended tax return for 2013 You must keep records to verify certain information about your business assets. When can i file an amended tax return for 2013 You need records to figure the annual depreciation and the gain or loss when you sell the assets. When can i file an amended tax return for 2013 Your records should show the following information. When can i file an amended tax return for 2013 When and how you acquired the asset. When can i file an amended tax return for 2013 Purchase price. When can i file an amended tax return for 2013 Cost of any improvements. When can i file an amended tax return for 2013 Section 179 deduction taken. When can i file an amended tax return for 2013 Deductions taken for depreciation. When can i file an amended tax return for 2013 Deductions taken for casualty losses, such as losses resulting from fires or storms. When can i file an amended tax return for 2013 How you used the asset. When can i file an amended tax return for 2013 When and how you disposed of the asset. When can i file an amended tax return for 2013 Selling price. When can i file an amended tax return for 2013 Expenses of sale. When can i file an amended tax return for 2013   The following documents may show this information. When can i file an amended tax return for 2013 Purchase and sales invoices. When can i file an amended tax return for 2013 Real estate closing statements. When can i file an amended tax return for 2013 Canceled checks. When can i file an amended tax return for 2013 What if I don't have a canceled check?   If you do not have a canceled check, you may be able to prove payment with certain financial account statements prepared by financial institutions. When can i file an amended tax return for 2013 These include account statements prepared for the financial institution by a third party. When can i file an amended tax return for 2013 These account statements must be highly legible. When can i file an amended tax return for 2013 The following table lists acceptable account statements. When can i file an amended tax return for 2013  IF payment is by. When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 THEN the statement must show the. When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 Check Check number. When can i file an amended tax return for 2013 Amount. When can i file an amended tax return for 2013 Payee's name. When can i file an amended tax return for 2013 Date the check amount was posted to the account by the financial institution. When can i file an amended tax return for 2013 Electronic funds transfer Amount transferred. When can i file an amended tax return for 2013 Payee's name. When can i file an amended tax return for 2013 Date the transfer was posted to the account by the financial institution. When can i file an amended tax return for 2013 Credit card Amount charged. When can i file an amended tax return for 2013 Payee's name. When can i file an amended tax return for 2013 Transaction date. When can i file an amended tax return for 2013    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. When can i file an amended tax return for 2013 You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. When can i file an amended tax return for 2013 Recording Business Transactions A good recordkeeping system includes a summary of your business transactions. When can i file an amended tax return for 2013 (Your business transactions are shown on the supporting documents just discussed. When can i file an amended tax return for 2013 ) Business transactions are ordinarily summarized in books called journals and ledgers. When can i file an amended tax return for 2013 You can buy them at your local stationery or office supply store. When can i file an amended tax return for 2013 A journal is a book where you record each business transaction shown on your supporting documents. When can i file an amended tax return for 2013 You may have to keep separate journals for transactions that occur frequently. When can i file an amended tax return for 2013 A ledger is a book that contains the totals from all of your journals. When can i file an amended tax return for 2013 It is organized into different accounts. When can i file an amended tax return for 2013 Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. When can i file an amended tax return for 2013 For example, a recordkeeping system for a small business might include the following items. When can i file an amended tax return for 2013 Business checkbook. When can i file an amended tax return for 2013 Daily summary of cash receipts. When can i file an amended tax return for 2013 Monthly summary of cash receipts. When can i file an amended tax return for 2013 Check disbursements journal. When can i file an amended tax return for 2013 Depreciation worksheet. When can i file an amended tax return for 2013 Employee compensation record. When can i file an amended tax return for 2013 The business checkbook is explained next. When can i file an amended tax return for 2013 The other items are illustrated later under Sample Record System. When can i file an amended tax return for 2013 The system you use to record business transactions will be more effective if you follow good recordkeeping practices. When can i file an amended tax return for 2013 For example, record expenses when they occur, and identify the source of recorded receipts. When can i file an amended tax return for 2013 Generally, it is best to record transactions on a daily basis. When can i file an amended tax return for 2013 Business checkbook. When can i file an amended tax return for 2013   One of the first things you should do when you start a business is open a business checking account. When can i file an amended tax return for 2013 You should keep your business account separate from your personal checking account. When can i file an amended tax return for 2013   The business checkbook is your basic source of information for recording your business expenses. When can i file an amended tax return for 2013 You should deposit all daily receipts in your business checking account. When can i file an amended tax return for 2013 You should check your account for errors by reconciling it. When can i file an amended tax return for 2013 See Reconciling the checking account, later. When can i file an amended tax return for 2013   Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. When can i file an amended tax return for 2013 You should also note on the deposit slip the source of the deposit and keep copies of all slips. When can i file an amended tax return for 2013   You should make all payments by check to document business expenses. When can i file an amended tax return for 2013 Write checks payable to yourself only when making withdrawals from your business for personal use. When can i file an amended tax return for 2013 Avoid writing checks payable to cash. When can i file an amended tax return for 2013 If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. When can i file an amended tax return for 2013 If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment. When can i file an amended tax return for 2013    Use the business account for business purposes only. When can i file an amended tax return for 2013 Indicate the source of deposits and the type of expense in the checkbook. When can i file an amended tax return for 2013 Reconciling the checking account. When can i file an amended tax return for 2013   When you receive your bank statement, make sure the statement, your checkbook, and your books agree. When can i file an amended tax return for 2013 The statement balance may not agree with the balance in your checkbook and books if the statement: Includes bank charges you did not enter in your books and subtract from your checkbook balance, or Does not include deposits made after the statement date or checks that did not clear your account before the statement date. When can i file an amended tax return for 2013   By reconciling your checking account, you will: Verify how much money you have in the account, Make sure that your checkbook and books reflect all bank charges and the correct balance in the checking account, and Correct any errors in your bank statement, checkbook, and books. When can i file an amended tax return for 2013    You should reconcile your checking account each month. When can i file an amended tax return for 2013     Before you reconcile your monthly bank statement, check your own figures. When can i file an amended tax return for 2013 Begin with the balance shown in your checkbook at the end of the previous month. When can i file an amended tax return for 2013 To this balance, add the total cash deposited during the month and subtract the total cash disbursements. When can i file an amended tax return for 2013   After checking your figures, the result should agree with your checkbook balance at the end of the month. When can i file an amended tax return for 2013 If the result does not agree, you may have made an error in recording a check or deposit. When can i file an amended tax return for 2013 You can find the error by doing the following. When can i file an amended tax return for 2013 Adding the amounts on your check stubs and comparing that total with the total in the “amount of check” column in your check disbursements journal. When can i file an amended tax return for 2013 If the totals do not agree, check the individual amounts to see if an error was made in your check stub record or in the related entry in your check disbursements journal. When can i file an amended tax return for 2013 Adding the deposit amounts in your checkbook. When can i file an amended tax return for 2013 Compare that total with the monthly total in your cash receipt book, if you have one. When can i file an amended tax return for 2013 If the totals do not agree, check the individual amounts to find any errors. When can i file an amended tax return for 2013   If your checkbook and journal entries still disagree, then refigure the running balance in your checkbook to make sure additions and subtractions are correct. When can i file an amended tax return for 2013   When your checkbook balance agrees with the balance figured from the journal entries, you may begin reconciling your checkbook with the bank statement. When can i file an amended tax return for 2013 Many banks print a reconciliation worksheet on the back of the statement. When can i file an amended tax return for 2013   To reconcile your account, follow these steps. When can i file an amended tax return for 2013 Compare the deposits listed on the bank statement with the deposits shown in your checkbook. When can i file an amended tax return for 2013 Note all differences in the dollar amounts. When can i file an amended tax return for 2013 Compare each canceled check, including both check number and dollar amount, with the entry in your checkbook. When can i file an amended tax return for 2013 Note all differences in the dollar amounts. When can i file an amended tax return for 2013 Mark the check number in the checkbook as having cleared the bank. When can i file an amended tax return for 2013 After accounting for all checks returned by the bank, those not marked in your checkbook are your outstanding checks. When can i file an amended tax return for 2013 Prepare a bank reconciliation. When can i file an amended tax return for 2013 One is illustrated later under Sample Record System. When can i file an amended tax return for 2013 Update your checkbook and journals for items shown on the reconciliation as not recorded (such as service charges) or recorded incorrectly. When can i file an amended tax return for 2013 At this point, the adjusted bank statement balance should equal your adjusted checkbook balance. When can i file an amended tax return for 2013 If you still have differences, check the previous steps to find the errors. When can i file an amended tax return for 2013   Table 3. When can i file an amended tax return for 2013 Period of Limitations IF you. When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013   THEN the period is. When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 . When can i file an amended tax return for 2013 1. When can i file an amended tax return for 2013 Owe additional tax and situations (2), (3), and (4), below, do not apply to you   3 years 2. When can i file an amended tax return for 2013 Do not report income that you should report and it is more than 25% of the gross income shown on the return   6 years 3. When can i file an amended tax return for 2013 File a fraudulent return   Not limited 4. When can i file an amended tax return for 2013 Do not file a return   Not limited 5. When can i file an amended tax return for 2013 File a claim for credit or refund after you filed your return   Later of: 3 years or  2 years after tax   was paid 6. When can i file an amended tax return for 2013 File a claim for a loss from worthless securities or a bad debt deduction   7 years Bookkeeping System You must decide whether to use a single-entry or a double-entry bookkeeping system. When can i file an amended tax return for 2013 The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. When can i file an amended tax return for 2013 You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control. When can i file an amended tax return for 2013 Single-entry. When can i file an amended tax return for 2013   A single-entry system is based on the income statement (profit or loss statement). When can i file an amended tax return for 2013 It can be a simple and practical system if you are starting a small business. When can i file an amended tax return for 2013 The system records the flow of income and expenses through the use of: A daily summary of cash receipts, and Monthly summaries of cash receipts and disbursements. When can i file an amended tax return for 2013 Double-entry. When can i file an amended tax return for 2013   A double-entry bookkeeping system uses journals and ledgers. When can i file an amended tax return for 2013 Transactions are first entered in a journal and then posted to ledger accounts. When can i file an amended tax return for 2013 These accounts show income, expenses, assets (property a business owns), liabilities (debts of a business), and net worth (excess of assets over liabilities). When can i file an amended tax return for 2013 You close income and expense accounts at the end of each tax year. When can i file an amended tax return for 2013 You keep asset, liability, and net worth accounts open on a permanent basis. When can i file an amended tax return for 2013   In the double-entry system, each account has a left side for debits and a right side for credits. When can i file an amended tax return for 2013 It is self-balancing because you record every transaction as a debit entry in one account and as a credit entry in another. When can i file an amended tax return for 2013   Under this system, the total debits must equal the total credits after you post the journal entries to the ledger accounts. When can i file an amended tax return for 2013 If the amounts do not balance, you have made an error and you must find and correct it. When can i file an amended tax return for 2013   An example of a journal entry exhibiting a payment of rent in October is shown next. When can i file an amended tax return for 2013 General Journal Date Description of Entry Debit  Credit Oct. When can i file an amended tax return for 2013 5 Rent expense 780. When can i file an amended tax return for 2013 00     Cash   780. When can i file an amended tax return for 2013 00                 Computerized System There are computer software packages you can use for recordkeeping. When can i file an amended tax return for 2013 They can be purchased in many retail stores. When can i file an amended tax return for 2013 These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting. When can i file an amended tax return for 2013 If you use a computerized system, you must be able to produce sufficient legible records to support and verify entries made on your return and determine your correct tax liability. When can i file an amended tax return for 2013 To meet this qualification, the machine-sensible records must reconcile with your books and return. When can i file an amended tax return for 2013 These records must provide enough detail to identify the underlying source documents. When can i file an amended tax return for 2013 You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. When can i file an amended tax return for 2013 This documentation must be sufficiently detailed to show all of the following items. When can i file an amended tax return for 2013 Functions being performed as the data flows through the system. When can i file an amended tax return for 2013 Controls used to ensure accurate and reliable processing. When can i file an amended tax return for 2013 Controls used to prevent the unauthorized addition, alteration, or deletion of retained records. When can i file an amended tax return for 2013 Charts of accounts and detailed account descriptions. When can i file an amended tax return for 2013 See Revenue Procedure 98-25 in Cumulative Bulletin 1998-1 for more information. When can i file an amended tax return for 2013 How Long To Keep Records You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. When can i file an amended tax return for 2013 Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out. When can i file an amended tax return for 2013 The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. When can i file an amended tax return for 2013 Table 3 contains the periods of limitations that apply to income tax returns. When can i file an amended tax return for 2013 Unless otherwise stated, the years refer to the period after the return was filed. When can i file an amended tax return for 2013 Returns filed before the due date are treated as filed on the due date. When can i file an amended tax return for 2013 Keep copies of your filed tax returns. When can i file an amended tax return for 2013 They help in preparing future tax returns and making computations if you file an amended return. When can i file an amended tax return for 2013 Employment taxes. When can i file an amended tax return for 2013   If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. When can i file an amended tax return for 2013 For more information about recordkeeping for employment taxes, see Publication 15. When can i file an amended tax return for 2013 Assets. When can i file an amended tax return for 2013   Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. When can i file an amended tax return for 2013 You must keep these records to figure any depreciation, amortization, or depletion deduction, and to figure your basis for computing gain or loss when you sell or otherwise dispose of the property. When can i file an amended tax return for 2013   Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. When can i file an amended tax return for 2013 You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition. When can i file an amended tax return for 2013 Records for nontax purposes. When can i file an amended tax return for 2013   When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. When can i file an amended tax return for 2013 For example, your insurance company or creditors may require you to keep them longer than the IRS does. When can i file an amended tax return for 2013 Sample Record System This example illustrates a single-entry system used by Henry Brown, who is the sole proprietor of a small automobile body shop. When can i file an amended tax return for 2013 Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting. When can i file an amended tax return for 2013 These sample records should not be viewed as a recommendation of how to keep your records. When can i file an amended tax return for 2013 They are intended only to show how one business keeps its records. When can i file an amended tax return for 2013 1. When can i file an amended tax return for 2013 Daily Summary of Cash Receipts This summary is a record of cash sales for the day. When can i file an amended tax return for 2013 It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day. When can i file an amended tax return for 2013 Henry takes the cash sales entry from his cash register tape. When can i file an amended tax return for 2013 If he had no cash register, he would simply total his cash sale slips and any other cash received that day. When can i file an amended tax return for 2013 He carries the total receipts shown in this summary for January 3 ($267. When can i file an amended tax return for 2013 80), including cash sales ($263. When can i file an amended tax return for 2013 60) and sales tax ($4. When can i file an amended tax return for 2013 20), to the Monthly Summary of Cash Receipts. When can i file an amended tax return for 2013 Petty cash fund. When can i file an amended tax return for 2013   Henry uses a petty cash fund to make small payments without having to write checks for small amounts. When can i file an amended tax return for 2013 Each time he makes a payment from this fund, he makes out a petty cash slip and attaches it to his receipt as proof of payment. When can i file an amended tax return for 2013 He sets up a fixed amount ($50) in his petty cash fund. When can i file an amended tax return for 2013 The total of the unspent petty cash and the amounts on the petty cash slips should equal the fixed amount of the fund. When can i file an amended tax return for 2013 When the totals on the petty cash slips approach the fixed amount, he brings the cash in the fund back to the fixed amount by writing a check to “Petty Cash” for the total of the outstanding slips. When can i file an amended tax return for 2013 (See the Check Disbursements Journal entry for check number 92. When can i file an amended tax return for 2013 ) This restores the fund to its fixed amount of $50. When can i file an amended tax return for 2013 He then summarizes the slips and enters them in the proper columns in the monthly check disbursements journal. When can i file an amended tax return for 2013 2. When can i file an amended tax return for 2013 Monthly Summary of Cash Receipts This shows the income activity for the month. When can i file an amended tax return for 2013 Henry carries the total monthly net sales shown in this summary for January ($4,865. When can i file an amended tax return for 2013 05) to his Annual Summary. When can i file an amended tax return for 2013 To figure total monthly net sales, Henry reduces the total monthly receipts by the sales tax imposed on his customers and turned over to the state. When can i file an amended tax return for 2013 He cannot take a deduction for sales tax turned over to the state because he only collected the tax. When can i file an amended tax return for 2013 He does not include the tax in his income. When can i file an amended tax return for 2013 3. When can i file an amended tax return for 2013 Check Disbursements Journal Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. When can i file an amended tax return for 2013 All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal. When can i file an amended tax return for 2013 Frequent expenses have their own headings across the sheet. When can i file an amended tax return for 2013 He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. When can i file an amended tax return for 2013 Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage. When can i file an amended tax return for 2013 Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. When can i file an amended tax return for 2013 If he did, he would record them in the journal, even though he could not deduct them as business expenses. When can i file an amended tax return for 2013 Henry carries the January total of expenses for materials ($1,083. When can i file an amended tax return for 2013 50) to the Annual Summary. When can i file an amended tax return for 2013 Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc. When can i file an amended tax return for 2013 , in the appropriate columns of that summary. When can i file an amended tax return for 2013 4. When can i file an amended tax return for 2013 Employee Compensation Record This record shows the following information. When can i file an amended tax return for 2013 The number of hours Henry's employee worked in a pay period. When can i file an amended tax return for 2013 The employee's total pay for the period. When can i file an amended tax return for 2013 The deductions Henry withheld in figuring the employee's net pay. When can i file an amended tax return for 2013 The monthly gross payroll. When can i file an amended tax return for 2013 Henry carries the January gross payroll ($520) to the Annual Summary. When can i file an amended tax return for 2013 5. When can i file an amended tax return for 2013 Annual Summary This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. When can i file an amended tax return for 2013 He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. When can i file an amended tax return for 2013 He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. When can i file an amended tax return for 2013 As in the journal, he keeps each major expense in a separate column. When can i file an amended tax return for 2013 Henry carries the cash receipts total shown in the annual summary ($47,440. When can i file an amended tax return for 2013 9