Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

2010 Income Tax Forms 1040ez

How To File A 1040xHow To File 2011 Income TaxStudent Taxes 20131040ez1040 2010How Do You File 2011 Taxes In 2013Free Tax FormsWhere Mail 1040xFiling Tax Extension 20112012 1040 FormsHow To File Taxes For FreeFile A 2012 Tax ReturnFile 1040nr EzTaxes For 2010Turbotax Deluxe Federal E File State 2011 For Pc DownloadE-file Back Taxes Free For Past 3 Years TaxeOnline 1040ezAmended State Tax FormTaxact 2011 Deluxe Federal Edition DownloadFile My 2012 TaxesCan I File My 2012 Taxes NowMilitary Tax Refund CalculatorAarp State Tax Filing For Seniors1040x For 2012Free State And Federal Tax ReturnE File 2009 Tax ReturnTaxact 2010 Free VersionWhen Is The Last Day To File Taxes 2014Free File AllianceHow Can I File My 2006 TaxesFile State Taxes Online Free 2012How Do I File My 2012 Taxes2010 Form 1040ezCalif State Taxes WebsiteHow To Amend Tax ReturnTax Amendment Form 20131040ez Tax Table 2010H&r Block At Home MilitaryIt 1040xFree E File Federal And State Tax Return

2010 Income Tax Forms 1040ez

2010 income tax forms 1040ez Publication 908 - Introductory Material Table of Contents Future Developments What's New Reminders Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 908, such as legislation enacted after it was published, go to www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/pub908. 2010 income tax forms 1040ez What's New Expiration of provision for catch-up contributions for IRC section 401(k) participants whose employer filed bankruptcy. 2010 income tax forms 1040ez  The Pension Protection Act of 2006, P. 2010 income tax forms 1040ez L. 2010 income tax forms 1040ez 109-280, previously allowed additional contributions of up to $7,000 in a traditional or Roth IRA for employees who participated in an IRC section 401(k) plan of an employer that filed bankruptcy in an earlier year. 2010 income tax forms 1040ez This provision was not extended for tax years beginning on or after January 1, 2010. 2010 income tax forms 1040ez Automatic 6-month extension of time to file a bankruptcy estate return now available for individuals in Chapter 7 or 11 bankruptcy. 2010 income tax forms 1040ez  Beginning June 24, 2011, the IRS clarified in T. 2010 income tax forms 1040ez D. 2010 income tax forms 1040ez 9531 that there is available an automatic 6-month extension of time to file a bankruptcy estate income tax return for individuals in Chapter 7 or Chapter 11 bankruptcy proceedings upon filing a required application. 2010 income tax forms 1040ez The previous extension of time to file a bankruptcy estate return was 5 months. 2010 income tax forms 1040ez Reminders The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. 2010 income tax forms 1040ez  The changes to the U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Bankruptcy Code enacted by BAPCA are incorporated throughout this publication. 2010 income tax forms 1040ez Debtors filing under chapters 7, 11, 12, and 13 of the Bankruptcy Code must file all applicable federal, state, and local tax returns that become due after a case commences. 2010 income tax forms 1040ez Failure to file tax returns timely or obtain an extension can cause a bankruptcy case to be converted to another chapter or dismissed. 2010 income tax forms 1040ez In chapter 13 cases, the debtor must file all required tax returns for tax periods ending within 4 years of the filing of the bankruptcy petition. 2010 income tax forms 1040ez Photographs of missing children. 2010 income tax forms 1040ez  The IRS is a proud partner with the National Center for Missing and Exploited Children. 2010 income tax forms 1040ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2010 income tax forms 1040ez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 2010 income tax forms 1040ez Introduction This publication is not intended to cover bankruptcy law in general, or to provide detailed discussions of the tax rules for the more complex corporate bankruptcy reorganizations or other highly technical transactions. 2010 income tax forms 1040ez Additionally, this publication is not updated on an annual basis and may not reflect recent developments in bankruptcy or tax law. 2010 income tax forms 1040ez If you need more guidance on the bankruptcy or tax laws applicable to your case, you should seek professional advice. 2010 income tax forms 1040ez This publication explains the basic federal income tax aspects of bankruptcy. 2010 income tax forms 1040ez A fundamental goal of the bankruptcy laws enacted by Congress is to give an honest debtor a financial “fresh start”. 2010 income tax forms 1040ez This is accomplished through the bankruptcy discharge, which is a permanent injunction (court ordered prohibition) against the collection of certain debts as a personal liability of the debtor. 2010 income tax forms 1040ez Bankruptcy proceedings begin with the filing of either a voluntary petition in the United States Bankruptcy Court, or in certain cases an involuntary petition filed by creditors. 2010 income tax forms 1040ez This filing creates the bankruptcy estate. 2010 income tax forms 1040ez The bankruptcy estate generally consists of all of the assets the individual or entity owns on the date the bankruptcy petition was filed. 2010 income tax forms 1040ez The bankruptcy estate is treated as a separate taxable entity for individuals filing bankruptcy petitions under chapter 7 or 11 of the Bankruptcy Code, discussed later. 2010 income tax forms 1040ez The tax obligations of taxable bankruptcy estates are discussed later under Individuals in Chapter 7 or 11. 2010 income tax forms 1040ez Generally, when a debt owed to another person or entity is canceled, the amount canceled or forgiven is considered income that is taxed to the person owing the debt. 2010 income tax forms 1040ez If a debt is canceled under a bankruptcy proceeding, the amount canceled is not income. 2010 income tax forms 1040ez However, the canceled debt reduces other tax benefits to which the debtor would otherwise be entitled. 2010 income tax forms 1040ez See Debt Cancellation, later. 2010 income tax forms 1040ez Useful Items - You may want to see: Publication 225 Farmer's Tax Guide 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 538 Accounting Periods and Methods 544 Sales and Other Dispositions of Assets 551 Basis of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) SS-4 Application for Employer Identification Number, and separate instructions 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) 1040 U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Individual Income Tax Return, and separate instructions Schedule SE (Form 1040) Self-Employment Tax 1040X Amended U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Individual Income Tax Return, and separate instructions 1041 U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Income Tax Return for Estates and Trusts, and separate instructions 1041-ES Estimated Income Tax for Estates and Trusts 1041-V Payment Voucher 4506 Request for Copy of Tax Return 4506-T Request for Transcript of Tax Return 4852 Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2010 income tax forms 1040ez 4868 Application for Automatic Extension of Time To File U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Individual Income Tax Return 7004 Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns See How To Get Tax Help, later, for information about getting these publications and forms. 2010 income tax forms 1040ez Prev  Up  Next   Home   More Online Publications
Español

Register to Vote

Find assistance with registering to vote and voting.

Registering to Vote

The U.S. Election Assistance Commission has resources for voters, including voter guides, registration information, voting accessibility, and information for military and overseas voters.

Voter Eligibility

To be eligible to vote, you must be a U.S. citizen. In most states, you must be 18 years old to vote, but some states do allow 17 year olds to vote. States also have their own residency requirements to vote. For additional information about state-specific requirements and voter eligibility, contact your state election office.

How to Register

In almost all states, you can register by mail to vote using the National Mail Voter Registration Form. North Dakota, Wyoming, American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands do not accept the National Mail Voter Registration Form. New Hampshire accepts it only as a request for an absentee voter mail-in registration form. If you live in one of these states, please check with your state election office to find out how to register to vote.

You may also use the National Mail Voter Registration Form to update your registration if you changed your name, to change your address, or to register with a political party.

You may be able to apply to register to vote in person at the following public facilities:

In some states, you can also register online to vote. To learn if your state offers online voter registration, please contact your state election office.

Back to Top

Back to Top

State Registration Deadlines

Almost every state has a voter registration deadline. In order to be eligible to vote in the November elections, you must submit the National Mail Voter Registration Form by these deadlines:

  • Alabama – Voter registration is closed during the 10 days before an election. Applications must be postmarked or delivered by the eleventh day prior to the election.
  • Alaska – 30 days before the election
  • Arizona – 29 days before the election
  • Arkansas – 30 days before the election
  • California – 15 days before the election
  • Colorado – 29 days before the election. If the application is received in the mails without a postmark, it must be received within 5 days of the close of registration.
  • Connecticut – 14 days before the election
  • Delaware – The fourth Saturday before a primary or general election, and 10 days before a special election.
  • District of Columbia – 30 days before the election
  • Florida – 29 days before the election
  • Georgia – The fifth Monday before any general primary, general election, or presidential preference primary, or regularly scheduled special election following the Georgia Election Code. If a special  election is scheduled on a date other that those dates prescribed by the Georgia Election Code, registration would close on the fifth day after the call.
  • Hawaii – 30 days before the election
  • Idaho – 25 days before the election
  • Illinois – 28 days before the election
  • Indiana – 29 days before the election
  • Iowa – Must be delivered by 5 PM, 10 days before the election, if it is a state primary or general election; 11 days before all others. Registration forms which are postmarked 15 or more days before an election are considered on time even if received after the deadline. If you fail to meet these deadlines, you can register to vote on election day.
  • Kansas – Postmarked or delivered 21 days before the election.
  • Kentucky – 29 days before the election
  • Louisiana – 30 days before the election
  • Maine – Delivered 21 business days before the election or you can register in-person up to and including election day.
  • Maryland – Delivered by 9 PM, 21 days before the election
  • Massachusetts – 20 days before the election
  • Michigan – 30 days before the election
  • Minnesota – Delivered by 5 PM, 21 days before the election. You can also register at the polling place on election day.
  • Mississippi – 30 days before the election
  • Missouri – 28 days before the election
  • Montana – 30 days before the election
  • Nebraska – The third Friday before the election (or delivered by 6 PM, on the second Friday before the election)
  • Nevada – The deadline for mail-in registration is the fifth Saturday before any primary or general election. In person registration remains available until 9 PM on the third Tuesday preceding any primary or general election. You may register to vote in person only by appearing at the office of the County Clerk/Registrar of Voters.
  • New Hampshire – Town and city clerks will accept the National Mail Voter Registration Form only as a request for their own absentee voter mail-in registration form, which your city or town clerk must receive by 10 days before the election. You can register at the town or city clerk’s office or in-person on election day.
  • New Jersey – 21 days before the election
  • New Mexico – 28 days before the election
  • New York – 25 days before the election
  • North Carolina – Postmarked 25 days before the election or received in the elections office or designated voter registration agency site by 5 PM, 25 days before the election.
  • North Dakota – No voter registration
  • Ohio – 30 days before the election
  • Oklahoma – 25 days before the election
  • Oregon – 21 days before the election
  • Pennsylvania – 30 days before an election or primary
  • Rhode Island – 30 days before the election
  • South Carolina – 30 days before the election
  • South Dakota – Received 15 days before the election
  • Tennessee – 30 days before the election
  • Texas – 30 days before the election
  • Utah – 30 days before the election for mail-in applications and 15 days before the election for walk-in registration at the county clerk’s office
  • Vermont – Delivered to the town clerk before 5 PM, on the Wednesday before the election
  • Virginia – Delivered 22 days before the election
  • Washington – 29 days before the election or 8 days before the election if delivered in person to the local voter registration office
  • West Virginia – 21 days before the election
  • Wisconsin – 20 days before the election or completed in the local voter registration office up to 5 PM or the close of business, whichever is later, on the Friday before the election. You can also register at the polling place on election day.
  • Wyoming – Cannot accept the National Mail Voter Registration Form. You can register in-person, by mail, or at the polls on election day.

Back to Top

Back to Top

The 2010 Income Tax Forms 1040ez

2010 income tax forms 1040ez 2. 2010 income tax forms 1040ez   Tax Shelters and Other Reportable Transactions Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Abusive Tax SheltersRules To Curb Abusive Tax Shelters Investor Reporting Penalties Whether To Invest Introduction Investments that yield tax benefits are sometimes called “tax shelters. 2010 income tax forms 1040ez ” In some cases, Congress has concluded that the loss of revenue is an acceptable side effect of special tax provisions designed to encourage taxpayers to make certain types of investments. 2010 income tax forms 1040ez In many cases, however, losses from tax shelters produce little or no benefit to society, or the tax benefits are exaggerated beyond those intended. 2010 income tax forms 1040ez Those cases are called “abusive tax shelters. 2010 income tax forms 1040ez ” An investment that is considered a tax shelter is subject to restrictions, including the requirement that it be disclosed, as discussed later. 2010 income tax forms 1040ez Topics - This chapter discusses: Abusive Tax Shelters , Rules To Curb Abusive Tax Shelters , Investor Reporting , Penalties , and Whether To Invest . 2010 income tax forms 1040ez Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 556 Examination of Returns, Appeal Rights, and Claims for Refund 561 Determining the Value of Donated Property 925 Passive Activity and At-Risk Rules Form (and Instructions) 8275 Disclosure Statement 8275-R Regulation Disclosure Statement 8283 Noncash Charitable Contributions 8886 Reportable Transaction Disclosure Statement See chapter 5, How To Get Tax Help , for information about getting these publications and forms. 2010 income tax forms 1040ez Abusive Tax Shelters Abusive tax shelters are marketing schemes involving artificial transactions with little or no economic reality. 2010 income tax forms 1040ez They often make use of unrealistic allocations, inflated appraisals, losses in connection with nonrecourse loans, mismatching of income and deductions, financing techniques that do not conform to standard commercial business practices, or mischaracterization of the substance of the transaction. 2010 income tax forms 1040ez Despite appearances to the contrary, the taxpayer generally risks little. 2010 income tax forms 1040ez Abusive tax shelters commonly involve package deals designed from the start to generate losses, deductions, or credits that will be far more than present or future investment. 2010 income tax forms 1040ez Or, they may promise investors from the start that future inflated appraisals will enable them, for example, to reap charitable contribution deductions based on those appraisals. 2010 income tax forms 1040ez (But see the appraisal requirements discussed under Rules To Curb Abusive Tax Shelters , later. 2010 income tax forms 1040ez ) They are commonly marketed in terms of the ratio of tax deductions allegedly available to each dollar invested. 2010 income tax forms 1040ez This ratio (or “write-off”) is frequently said to be several times greater than one-to-one. 2010 income tax forms 1040ez Because there are many abusive tax shelters, it is not possible to list all the factors you should consider in determining whether an offering is an abusive tax shelter. 2010 income tax forms 1040ez However, you should ask the following questions, which might provide a clue to the abusive nature of the plan. 2010 income tax forms 1040ez Do the tax benefits far outweigh the economic benefits? Is this a transaction you would seriously consider, apart from the tax benefits, if you hoped to make a profit? Do shelter assets really exist and, if so, are they insured for less than their purchase price? Is there a nontax justification for the way profits and losses are allocated to partners? Do the facts and supporting documents make economic sense? In that connection, are there sales and resales of the tax shelter property at ever increasing prices? Does the investment plan involve a gimmick, device, or sham to hide the economic reality of the transaction? Does the promoter offer to backdate documents after the close of the year? Are you instructed to backdate checks covering your investment? Is your debt a real debt or are you assured by the promoter that you will never have to pay it? Does this transaction involve laundering United States source income through foreign corporations incorporated in a tax haven and owned by United States shareholders? Rules To Curb Abusive Tax Shelters Congress has enacted a series of income tax laws designed to halt the growth of abusive tax shelters. 2010 income tax forms 1040ez These provisions include the following. 2010 income tax forms 1040ez Disclosure of reportable transactions. 2010 income tax forms 1040ez   You must disclose information for each reportable transaction in which you participate. 2010 income tax forms 1040ez See Reportable Transaction Disclosure Statement , later. 2010 income tax forms 1040ez   Material advisors with respect to any reportable transaction must disclose information about the transaction on Form 8918, Material Advisor Disclosure Statement. 2010 income tax forms 1040ez To determine whether you are a material advisor to a transaction, see the Instructions for Form 8918. 2010 income tax forms 1040ez   Material advisors will receive a reportable transaction number for the disclosed reportable transaction. 2010 income tax forms 1040ez They must provide this number to all persons to whom they acted as a material advisor. 2010 income tax forms 1040ez They must provide the number at the time the transaction is entered into. 2010 income tax forms 1040ez If they do not have the number at that time, they must provide it within 60 days from the date the number is mailed to them. 2010 income tax forms 1040ez For information on penalties for failure to disclose and failure to maintain lists, see Internal Revenue Code sections 6707, 6707A, and 6708. 2010 income tax forms 1040ez Requirement to maintain list. 2010 income tax forms 1040ez   Material advisors must maintain a list of persons to whom they provide material aid, assistance, or advice on any reportable transaction. 2010 income tax forms 1040ez The list must be available for inspection by the IRS, and the information required to be included on the list generally must be kept for 7 years. 2010 income tax forms 1040ez See Regulations section 301. 2010 income tax forms 1040ez 6112-1 for more information (including what information is required to be included on the list). 2010 income tax forms 1040ez Confidentiality privilege. 2010 income tax forms 1040ez   The confidentiality privilege between you and a federally authorized tax practitioner does not apply to written communications made after October 21, 2004, regarding the promotion of your direct or indirect participation in any tax shelter. 2010 income tax forms 1040ez Appraisal requirement for donated property. 2010 income tax forms 1040ez   If you claim a deduction of more than $5,000 for an item or group of similar items of donated property, you generally must get a qualified appraisal from a qualified appraiser and complete and attach section B of Form 8283 to your return. 2010 income tax forms 1040ez If you claim a deduction of more than $500,000 for the donated property, you generally must attach the qualified appraisal to your return. 2010 income tax forms 1040ez If you file electronically, see Form 8453, U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Individual Income Tax Transmittal for an IRS e-file Return, and its instructions. 2010 income tax forms 1040ez For more information about appraisals, including exceptions, see Publication 561. 2010 income tax forms 1040ez Passive activity loss and credit limits. 2010 income tax forms 1040ez   The passive activity loss and credit rules limit the amount of losses and credits that can be claimed from passive activities and limit the amount that can offset nonpassive income, such as certain portfolio income from investments. 2010 income tax forms 1040ez For more detailed information about determining and reporting income, losses, and credits from passive activities, see Publication 925. 2010 income tax forms 1040ez Interest on penalties. 2010 income tax forms 1040ez   If you are assessed an accuracy-related or civil fraud penalty (as discussed under Penalties , later), interest will be imposed on the amount of the penalty from the due date of the return (including any extensions) to the date you pay the penalty. 2010 income tax forms 1040ez Accounting method restriction. 2010 income tax forms 1040ez   Tax shelters generally cannot use the cash method of accounting. 2010 income tax forms 1040ez Uniform capitalization rules. 2010 income tax forms 1040ez   The uniform capitalization rules generally apply to producing property or acquiring it for resale. 2010 income tax forms 1040ez Under those rules, the direct cost and part of the indirect cost of the property must be capitalized or included in inventory. 2010 income tax forms 1040ez For more information, see Publication 538. 2010 income tax forms 1040ez Denial of deduction for interest on an underpayment due to a reportable transaction. 2010 income tax forms 1040ez   You cannot deduct any interest you paid or accrued on any part of an underpayment of tax due to an understatement arising from a reportable transaction (discussed later) if the relevant facts affecting the tax treatment of the item are not adequately disclosed. 2010 income tax forms 1040ez This rule applies to reportable transactions entered into in tax years beginning after October 22, 2004. 2010 income tax forms 1040ez Authority for Disallowance of Tax Benefits The IRS has published guidance concluding that the claimed tax benefits of various abusive tax shelters should be disallowed. 2010 income tax forms 1040ez The guidance is the conclusion of the IRS on how the law is applied to a particular set of facts. 2010 income tax forms 1040ez Guidance is published in the Internal Revenue Bulletin for taxpayers' information and also for use by IRS officials. 2010 income tax forms 1040ez So, if your return is examined and an abusive tax shelter is identified and challenged, published guidance dealing with that type of shelter, which disallows certain claimed tax shelter benefits, could serve as the basis for the examining official's challenge of the tax benefits you claimed. 2010 income tax forms 1040ez In such a case, the examiner will not compromise even if you or your representative believes you have authority for the positions taken on your tax return. 2010 income tax forms 1040ez The courts have generally been unsympathetic to taxpayers involved in abusive tax shelter schemes and have ruled in favor of the IRS in the majority of the cases in which these shelters have been challenged. 2010 income tax forms 1040ez Investor Reporting You may be required to file a reportable transaction disclosure statement. 2010 income tax forms 1040ez Reportable Transaction Disclosure Statement Use Form 8886 to disclose information for each reportable transaction (discussed later) in which you participated. 2010 income tax forms 1040ez Generally, you must attach Form 8886 to your return for each tax year in which you participated in the transaction. 2010 income tax forms 1040ez Under certain circumstances, a transaction must be disclosed within 90 days of the transaction being identified as a listed transaction or a transaction of interest (discussed later). 2010 income tax forms 1040ez In addition, for the first year Form 8886 is attached to your return, you must send a copy of the form to: Internal Revenue Service OTSA Mail Stop 4915 1973 North Rulon White Blvd. 2010 income tax forms 1040ez  Ogden, UT 84404 If you file your return electronically, the copy sent to OTSA must show exactly the same information, word for word, provided with the electronically filed return and it must be provided on the official IRS Form 8886 or an exact copy of the form. 2010 income tax forms 1040ez If you use a computer-generated or substitute Form 8886, it must be an exact copy of the official IRS form. 2010 income tax forms 1040ez If you fail to file Form 8886 as required or fail to include any required information on the form, you may have to pay a penalty. 2010 income tax forms 1040ez See Penalty for failure to disclose a reportable transaction , later under Penalties. 2010 income tax forms 1040ez The following discussion briefly describes reportable transactions. 2010 income tax forms 1040ez For more details, see the Instructions for Form 8886. 2010 income tax forms 1040ez Reportable transaction. 2010 income tax forms 1040ez   A reportable transaction is any of the following. 2010 income tax forms 1040ez A listed transaction. 2010 income tax forms 1040ez A confidential transaction. 2010 income tax forms 1040ez A transaction with contractual protection. 2010 income tax forms 1040ez A loss transaction. 2010 income tax forms 1040ez A transaction of interest entered into after November 1, 2006. 2010 income tax forms 1040ez Note. 2010 income tax forms 1040ez Transactions with a brief asset holding period were removed from the definition of reportable transaction for transactions entered into after August 2, 2007. 2010 income tax forms 1040ez Listed transaction. 2010 income tax forms 1040ez   A listed transaction is the same as, or substantially similar to, one of the types of transactions the IRS has determined to be a tax-avoidance transaction. 2010 income tax forms 1040ez These transactions have been identified in notices, regulations, and other published guidance issued by the IRS. 2010 income tax forms 1040ez For a list of existing guidance, see Notice 2009-59 in Internal Revenue Bulletin 2009-31, available at www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/irb/2009-31_IRB/ar07. 2010 income tax forms 1040ez html. 2010 income tax forms 1040ez Confidential transaction. 2010 income tax forms 1040ez   A confidential transaction is offered to you under conditions of confidentiality and for which you have paid an advisor a minimum fee. 2010 income tax forms 1040ez A transaction is offered under conditions of confidentiality if the advisor who is paid the fee places a limit on your disclosure of the tax treatment or tax structure of the transaction and the limit protects the confidentiality of the advisor's tax strategies. 2010 income tax forms 1040ez The transaction is treated as confidential even if the conditions of confidentiality are not legally binding on you. 2010 income tax forms 1040ez Transaction with contractual protection. 2010 income tax forms 1040ez   Generally, a transaction with contractual protection is one in which you or a related party has the right to a full or partial refund of fees if all or part of the intended tax consequences of the transaction are not sustained, or a transaction for which the fees are contingent on your realizing the tax benefits from the transaction. 2010 income tax forms 1040ez For information on exceptions, see Revenue Procedure 2007-20 in Internal Revenue Bulletin 2007-7, available at www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/irb/2007-07_IRB/ar15. 2010 income tax forms 1040ez html. 2010 income tax forms 1040ez Loss transaction. 2010 income tax forms 1040ez   For individuals, a loss transaction is one that results in a deductible loss if the gross amount of the loss is at least $2 million in a single tax year or $4 million in any combination of tax years. 2010 income tax forms 1040ez A loss from a foreign currency transaction under Internal Revenue Code section 988 is a loss transaction if the gross amount of the loss is at least $50,000 in a single tax year, whether or not the loss flows through from an S corporation or partnership. 2010 income tax forms 1040ez   Certain losses (such as losses from casualties, thefts, and condemnations) are excepted from this category and do not have to be reported on Form 8886. 2010 income tax forms 1040ez For information on other exceptions, see Revenue Procedure 2004-66 in Internal Revenue Bulletin 2004-50, as modified and superseded by Revenue Procedure 2013-11, (or future published guidance) available at www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/irb/2004-50_IRB/ar11. 2010 income tax forms 1040ez html. 2010 income tax forms 1040ez Transaction of interest. 2010 income tax forms 1040ez   A transaction of interest is a transaction entered into after November 1, 2006, that is the same as, or substantially similar to, one of the types of transactions that the IRS has identified by notice, regulation, or other form of published guidance as a transaction of interest. 2010 income tax forms 1040ez The IRS has identified the following transactions of interest. 2010 income tax forms 1040ez “Toggling” grantor trusts as described in Notice 2007-73, 2007-36 I. 2010 income tax forms 1040ez R. 2010 income tax forms 1040ez B. 2010 income tax forms 1040ez 545, available at www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/irb/2007-36_IRB/ar20. 2010 income tax forms 1040ez html. 2010 income tax forms 1040ez Certain transactions involving contributions of a successor member interest in a limited liability company as described in Notice 2007-72, 2007-36 I. 2010 income tax forms 1040ez R. 2010 income tax forms 1040ez B. 2010 income tax forms 1040ez 544, available at www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/irb/2007-36_IRB/ar19. 2010 income tax forms 1040ez html. 2010 income tax forms 1040ez Certain transactions involving the sale or other disposition of all interests in a charitable remainder trust and claiming little or no taxable gain as described in Notice 2008-99, 2008-47 I. 2010 income tax forms 1040ez R. 2010 income tax forms 1040ez B. 2010 income tax forms 1040ez 1194, available at www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/irb/2008-47_IRB/ar11. 2010 income tax forms 1040ez html. 2010 income tax forms 1040ez Certain transactions involving a U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez taxpayer owning controlled foreign corporations (CFCs) that hold stock of a lower-tier CFC through a domestic partnership to avoid reporting income as described in Notice 2009-7, 2009-3 I. 2010 income tax forms 1040ez R. 2010 income tax forms 1040ez B. 2010 income tax forms 1040ez 312, available at www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/irb/2009-03_IRB/ar10. 2010 income tax forms 1040ez html. 2010 income tax forms 1040ez   For updates to this list, go to www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/Businesses/Corporations/Abusive-Tax-Shelters-and-Transactions. 2010 income tax forms 1040ez Penalties Investing in an abusive tax shelter may lead to substantial expenses. 2010 income tax forms 1040ez First, the promoter generally charges a substantial fee. 2010 income tax forms 1040ez If your return is examined by the IRS and a tax deficiency is determined, you will be faced with payment of more tax, interest on the underpayment, possibly a 20%, 30%, or even 40% accuracy-related penalty, or a 75% civil fraud penalty. 2010 income tax forms 1040ez You may also be subject to the penalty for failure to pay tax. 2010 income tax forms 1040ez These penalties are explained in the following paragraphs. 2010 income tax forms 1040ez Accuracy-related penalties. 2010 income tax forms 1040ez   An accuracy-related penalty of 20% can be imposed for underpayments of tax due to: Negligence or disregard of rules or regulations, Substantial understatement of tax, Substantial valuation misstatement (increased to 40% for gross valuation misstatement), Transaction lacking economic substance (increased to 40% for undisclosed transaction lacking economic substance), or Undisclosed foreign financial asset understatement (40% in all cases). 2010 income tax forms 1040ez Except for a transaction lacking economic substance, this penalty will not be imposed if you can show you had reasonable cause for any understatement of tax and that you acted in good faith. 2010 income tax forms 1040ez Your failure to disclose a reportable transaction is a strong indication that you failed to act in good faith. 2010 income tax forms 1040ez   If you are charged an accuracy-related penalty, interest will be imposed on the amount of the penalty from the due date of the return (including extensions) to the date you pay the penalty. 2010 income tax forms 1040ez   The 20% penalties do not apply to any underpayment attributable to a reportable transaction understatement subject to an accuracy-related penalty (discussed later). 2010 income tax forms 1040ez Negligence or disregard of rules or regulations. 2010 income tax forms 1040ez   The penalty for negligence or disregard of rules or regulations is imposed only on the part of the underpayment due to negligence or disregard of rules or regulations. 2010 income tax forms 1040ez The penalty will not be charged if you can show you had reasonable cause for understating your tax and that you acted in good faith. 2010 income tax forms 1040ez    Negligence includes any failure to make a reasonable attempt to comply with the provisions of the Internal Revenue Code. 2010 income tax forms 1040ez It also includes any failure to keep adequate books and records. 2010 income tax forms 1040ez A return position that has a reasonable basis is not negligence. 2010 income tax forms 1040ez   Disregard includes any careless, reckless, or intentional disregard of rules or regulations. 2010 income tax forms 1040ez   The penalty for disregard of rules and regulations can be avoided if all the following are true. 2010 income tax forms 1040ez You keep adequate books and records. 2010 income tax forms 1040ez You have a reasonable basis for your position on the tax issue. 2010 income tax forms 1040ez You make an adequate disclosure of your position. 2010 income tax forms 1040ez Use Form 8275 to make your disclosure and attach it to your return. 2010 income tax forms 1040ez To disclose a position contrary to a regulation, use Form 8275-R. 2010 income tax forms 1040ez Use Form 8886 to disclose a reportable transaction (discussed earlier). 2010 income tax forms 1040ez Substantial understatement of tax. 2010 income tax forms 1040ez   An understatement is considered to be substantial if it is more than the greater of: 10% of the tax required to be shown on the return, or $5,000. 2010 income tax forms 1040ez An “understatement” is the amount of tax required to be shown on your return for a tax year minus the amount of tax shown on the return, reduced by any rebates. 2010 income tax forms 1040ez The term “rebate” generally means a decrease in the tax shown on your original return as the result of your filing an amended return or claim for refund. 2010 income tax forms 1040ez   For items other than tax shelters, you can file Form 8275 or Form 8275-R to disclose items that could cause a substantial understatement of income tax. 2010 income tax forms 1040ez In that way, you can avoid the substantial understatement penalty if you have a reasonable basis for your position on the tax issue. 2010 income tax forms 1040ez Disclosure of the tax shelter item on a tax return does not reduce the amount of the understatement. 2010 income tax forms 1040ez   Also, the understatement penalty will not be imposed if you can show there was reasonable cause for the underpayment caused by the understatement and that you acted in good faith. 2010 income tax forms 1040ez An important factor in establishing reasonable cause and good faith will be the extent of your effort to determine your proper tax liability under the law. 2010 income tax forms 1040ez Substantial valuation misstatement. 2010 income tax forms 1040ez   In general, you are liable for a 20% penalty for a substantial valuation misstatement if all the following are true. 2010 income tax forms 1040ez The value or adjusted basis of any property claimed on the return is 150% or more of the correct amount. 2010 income tax forms 1040ez You underpaid your tax by more than $5,000 because of the misstatement. 2010 income tax forms 1040ez You cannot establish that you had reasonable cause for the underpayment and that you acted in good faith. 2010 income tax forms 1040ez   You may be assessed a penalty of 40% for a gross valuation misstatement. 2010 income tax forms 1040ez If you misstate the value or the adjusted basis of property by 200% or more of the amount determined to be correct, you will be assessed a penalty of 40%, instead of 20%, of the amount you underpaid because of the gross valuation misstatement. 2010 income tax forms 1040ez The penalty rate is also 40% if the property's correct value or adjusted basis is zero. 2010 income tax forms 1040ez Transaction lacking economic substance. 2010 income tax forms 1040ez   The economic substance doctrine only applies to an individual that entered into a transaction in connection with a trade or business or an activity engaged in for the production of income. 2010 income tax forms 1040ez For transactions entered into after March 30, 2010, a transaction has economic substance for you as an individual taxpayer only if: The transaction changes your economic position in a meaningful way (apart from federal income tax effects), or You have a substantial purpose (apart from federal income tax effects) for entering into the transaction. 2010 income tax forms 1040ez   For purposes of determining whether economic substance exists, a transaction's profit potential will only be taken into account if the present value of the reasonably expected pre-tax profit from the transaction is substantial compared to the present value of the expected net tax benefits that would be allowed if the transaction were respected. 2010 income tax forms 1040ez   If any part of your underpayment is due to any disallowance of claimed tax benefits by reason of a transaction lacking economic substance or failing to meet the requirements of any similar rule of law, that part of your underpayment will be subject to the 20% accuracy-related penalty even if you had a reasonable cause and acted in good faith concerning that part. 2010 income tax forms 1040ez   Additionally, the penalty increases to 40% if you do not adequately disclose on your return or in a statement attached to your return the relevant facts affecting the tax treatment of a transaction that lacks economic substance. 2010 income tax forms 1040ez Relevant facts include any facts affecting the tax treatment of the transaction. 2010 income tax forms 1040ez    Any excessive amount of an erroneous claim for an income tax refund or credit (other than a refund or credit related to the earned income credit) that results from a transaction found to be lacking economic substance will not be treated as having a reasonable basis and could be subject to a 20% penalty. 2010 income tax forms 1040ez Undisclosed foreign financial asset understatement. 2010 income tax forms 1040ez   For tax years beginning after March 18, 2010, you may be liable for a 40% penalty for an understatement of your tax liability due to an undisclosed foreign financial asset. 2010 income tax forms 1040ez An undisclosed foreign financial asset is any asset for which an information return, required to be provided under Internal Revenue Code section 6038, 6038B, 6038D, 6046A, or 6048 for any taxable year, is not provided. 2010 income tax forms 1040ez The penalty applies to any part of an underpayment related to the following undisclosed foreign financial assets. 2010 income tax forms 1040ez Any foreign business you control, reportable on Form 5471, Information Return of U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Persons With Respect To Certain Foreign Corporations, or Form 8865, Return of U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Persons With Respect to Certain Foreign Partnerships. 2010 income tax forms 1040ez Certain transfers of property to a foreign corporation or partnership, reportable on Form 926, Return by a U. 2010 income tax forms 1040ez S. 2010 income tax forms 1040ez Transferor of Property to a Foreign Corporation, or certain distributions to a foreign person, reportable on Form 8865. 2010 income tax forms 1040ez Your ownership interest in certain foreign financial assets, temporarily reportable on Form 8275 or 8275-R. 2010 income tax forms 1040ez    Instead of, or in addition to, Form 8275 or 8275-R, you may have to file Form 8938, Statement of Specified Foreign Financial Assets, with your tax return. 2010 income tax forms 1040ez See the Instructions for Form 8938 for details. 2010 income tax forms 1040ez    Your acquisition, disposition, or substantial change in ownership interest in a foreign partnership, reportable on Form 8865. 2010 income tax forms 1040ez Creation or transfer of money or property to certain foreign trusts, reportable on Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. 2010 income tax forms 1040ez Penalty for incorrect appraisals. 2010 income tax forms 1040ez   The person who prepares an appraisal of the value of property may have to pay a penalty if: He or she knows, or reasonably should have known, that the appraisal would be used in connection with a return or claim for refund; and The claimed value of the property on a return or claim for refund based on that appraisal results in a substantial valuation misstatement or a gross valuation misstatement as discussed earlier. 2010 income tax forms 1040ez For details on the penalty amount and exceptions, see Publication 561. 2010 income tax forms 1040ez Penalty for failure to disclose a reportable transaction. 2010 income tax forms 1040ez   If you fail to include any required information regarding a reportable transaction (discussed earlier) on a return or statement, you may have to pay a penalty of 75% of the decrease in tax shown on your return as a result of such transaction (or that would have resulted if the transaction were respected for federal tax purposes). 2010 income tax forms 1040ez For an individual, the minimum penalty is $5,000 and the maximum is $10,000 (or $100,000 for a listed transaction). 2010 income tax forms 1040ez This penalty is in addition to any other penalty that may be imposed. 2010 income tax forms 1040ez   The IRS may rescind or abate the penalty for failing to disclose a reportable transaction under certain limited circumstances but cannot rescind the penalty for failing to disclose a listed transaction. 2010 income tax forms 1040ez For information on rescission, see Revenue Procedure 2007-21 in Internal Revenue Bulletin 2007-9 available at www. 2010 income tax forms 1040ez irs. 2010 income tax forms 1040ez gov/irb/2007-09_IRB/ar12. 2010 income tax forms 1040ez html. 2010 income tax forms 1040ez Accuracy-related penalty for a reportable transaction understatement. 2010 income tax forms 1040ez   If you have a reportable transaction understatement, you may have to pay a penalty equal to 20% of the amount of that understatement. 2010 income tax forms 1040ez This applies to any item due to a listed transaction or other reportable transaction with a significant purpose of avoiding or evading federal income tax. 2010 income tax forms 1040ez The penalty is 30% rather than 20% for the part of any reportable transaction understatement if the transaction was not properly disclosed. 2010 income tax forms 1040ez You may not have to pay the 20% penalty if you meet the strengthened reasonable cause and good faith exception. 2010 income tax forms 1040ez The reasonable cause and good faith exception does not apply to any part of a reportable transaction understatement attributable to one or more transactions that lack economic substance. 2010 income tax forms 1040ez   This penalty does not apply to the part of an understatement on which the fraud penalty, gross valuation misstatement penalty, or penalty for nondisclosure of noneconomic substance transactions is imposed. 2010 income tax forms 1040ez Civil fraud penalty. 2010 income tax forms 1040ez   If any underpayment of tax on your return is due to fraud, a penalty of 75% of the underpayment will be added to your tax. 2010 income tax forms 1040ez Joint return. 2010 income tax forms 1040ez   The fraud penalty on a joint return applies to a spouse only if some part of the underpayment is due to the fraud of that spouse. 2010 income tax forms 1040ez Failure to pay tax. 2010 income tax forms 1040ez   If a deficiency is assessed and is not paid within 10 days of the demand for payment, an investor can be penalized with up to a 25% addition to tax if the failure to pay continues. 2010 income tax forms 1040ez Whether To Invest In light of the adverse tax consequences and the substantial amount of penalties and interest that will result if the claimed tax benefits are disallowed, you should consider tax shelter investments carefully and seek competent legal and financial advice. 2010 income tax forms 1040ez Prev  Up  Next   Home   More Online Publications