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Sale of Assets Financed with Tax-Exempt Bonds by State and Local Governments and 501(c)(3) Organizations

Tax Exempt Bonds (“TEB”) focuses on providing participants in the municipal bond industry with quality service to assist issuers and conduit borrowers in understanding their tax responsibilities. TEB has initiated an outreach and educational services program to increase understanding and compliance with tax law applicable to tax-exempt bonds. As part of this service TEB is providing the following information with respect to the sale of property financed by tax-exempt bonds. Governmental issuers and 501(c)(3) organizations may use this information to establish practices to monitor tax compliance throughout the period that their bonds are outstanding. This information is not intended to be cited as an authoritative source. TEB recommends that issuers and 501(c)(3) organizations review this basic information concerning remedial actions in consultation with their counsel.

For remedial action with respect to exempt facility bonds, see section 1.142-2 of the Income Tax Regulations (the “Regulations”), and for build America bonds, see IRM 7.2.3.1.2.3.

Generally

To raise needed funds, state and local governments and 501(c)(3) organizations may plan to sell property financed with tax-exempt bonds. The sale of such property could cause the bond issue to become taxable. A timely remedial action, if necessary, will help ensure that the interest on the bond issue remains tax-exempt.

There are three basic remedial action options as generally described below:

  • Redemption or defeasance of nonqualified bonds
  • Alternative use of disposition proceeds
  • Alternative use of facility

Governmental Bonds Example

A governmental bond is one that is not a private activity bond. A bond is a private activity bond if both: (i) more than 10% of the proceeds of a bond issue are used for a private business use (the private business use test); and (ii) more than 10% of the debt service on the bonds is directly or indirectly secured by an interest in property or payments with respect to property used for a private business use or derived from payments in respect of property used for a private business use (the private security or payment test). The sale of bond-financed property, a “deliberate action,” may cause the bond issue to meet both of these tests.

Private business use, generally, is use directly or indirectly in a trade or business carried on by any person other than a governmental unit. The result of meeting both the private business use test and the private security or payment test (together, the private business tests) is that the tax-exempt bond issue becomes a taxable private activity bond.

An example of when governmental bonds are likely to meet the private business tests is the sale of a tax-exempt bond financed facility to a corporation. The sale is a deliberate action because the sale was within the issuer’s control. Depending on how much of the proceeds of the bond issue that the issuer used to construct or acquire the facility and how long after the bonds are issued that the sale occurs, the private business use test may be met since the purchaser is not a governmental entity. If the present value of the sales price is greater than 10% of the present value of the debt service on the bonds, the private security or payment test is met. If the revenues from the facility were pledged as security for the payment of debt service on the bonds and are expected to be more than 10% of the present value of the debt service, the private security or payment test is met (regardless of the sales price to the new purchaser). If the bond issue meets both the private business use test and the private security or payment test, the bonds are taxable unless remedial action is taken as described below.

Qualified 501(c)(3) Bonds Example

If the bonds financing the property are qualified 501(c)(3) bonds, the private business use test threshold of 10% is reduced to 5%. The 5% is further reduced by the percentage of proceeds of the bonds used to pay costs of issuance. (Up to 2% of the proceeds may be used for costs of issuance.) Additionally, use of tax-exempt bond financed property in an unrelated trade or business of any 501(c)(3) organization, as described in section 513 of the Internal Revenue Code (the “Code”), is considered private business use and counts toward the 5% limit.

An example of qualified 501(c)(3) bonds likely to meet the private business tests is the sale of tax-exempt bond financed land to a taxable corporation. The sale is a deliberate action because the sale was within the issuer’s (or 501(c)(3) borrower’s) control. Depending on how much of the proceeds of the bond issue that the issuer or 501(c)(3) borrower used to construct or acquire the facility and how long after the bonds are issued that the sale occurs, the private business use test may be met since the purchaser is not a governmental entity or a 501(c)(3) organization. If the parcel of land sold was pledged as security for the payment of debt service on the bonds, the private security or payment test is met if the sales price is more than 5% of the present value of the debt service on the bonds. If the revenues from the facility were pledged as security for the payment of debt service on the bonds and are expected to be more than 5% of the present value of the debt service, the private security or payment test is met (regardless of the sales price to the new purchaser). If the bond issue meets both the private business use test and the private security or payment test, the bonds are taxable unless remedial action is taken as described below.

A qualified 501(c)(3) bond is one where, among other requirements, the tax-exempt bond financed property is owned by a 501(c)(3) organization or a governmental unit. An example of qualified 501(c)(3) bonds failing to meet this requirement is the sale of the tax-exempt bond financed land to a taxable corporation. Accordingly, the bonds are taxable unless remedial action is taken as described below.

Remedial Action under the Treasury Regulations

The Regulations permit an issuer to take remedial action to preclude the sale of tax-exempt bond financed assets from causing the bonds to become taxable bonds. There are five basic conditions that an issuer must meet to qualify to take a remedial action. The conditions are:

  • The issuer must have reasonably expected on the issue date that the bonds would not meet either the applicable private business tests (including the ownership test for qualified 501(c)(3) bonds) or the private loan financing test for the entire term of the bonds.
  • The term of the bonds must not be longer than reasonably necessary for the qualified purposes of the issue (as a guideline, the term is not greater than 120% of the average reasonably expected economic life of the financed property).
  • Generally, the terms of a sale must be a bona fide and arm’s-length arrangement for fair market value.
  • Disposition proceeds must be treated as gross proceeds for arbitrage and rebate purposes. Disposition proceeds are any amounts, including property, derived from the sale, exchange or other disposition of the tax-exempt bond financed property.
  • Except for a remedial action involving the redemption or defeasance of nonqualified bonds, the proceeds must have been spent on a qualified purpose before the date of the deliberate action, that is, the sale of the bond-financed assets.

Redemption or Defeasance of Nonqualified Bonds

Generally, in the case of a sale of bond-financed property, the nonqualified bonds are the portion of the outstanding bonds equal to the percentage of the proceeds of the bond issue that financed that property. For example, if 50% of the proceeds of a bond issue financed the sold property, the nonqualified bonds equal 50% of the outstanding bonds of the issue at the time of the sale.

The first type of remedial action available is the redemption or defeasance of all of the nonqualified bonds within 90 days of the deliberate action. (Generally, proceeds of another issue of tax-exempt bonds may not be used for this redemption.) If the disposition proceeds are all cash, the issuer need not redeem or defease all of the nonqualified bonds, but must use all of the disposition proceeds to redeem a pro rata portion of nonqualified bonds. The redemption must be on the earliest call date after the deliberate action, or if the earliest call date is more than 90 days after the deliberate action, the issuer must establish a defeasance escrow within 90 days of the deliberate action. Defeasance is only permitted as a remedial action if the first call date is no more than 10 ½ years from the issue date of the bonds. The issuer must provide written notice to the Commissioner of the escrow within 90 days of its establishment.

Alternative Use of Disposition Proceeds

The second type of remedial action, available when the seller receives only cash, allows the issuer to spend the disposition proceeds within two years of the date of the sale for an alternative qualifying use. The issuer must treat the disposition proceeds as proceeds of the bonds, and must not take any action after the date of the sale to cause either the applicable private business use tests or the private loan financing test to be met. (If the bonds are qualified 501(c)(3) bonds, the disposition proceeds must be used for a qualified purpose under section 145 of the Code.) If the issuer does not expect the full amount of the disposition proceeds to be spent for a qualifying purpose within the two year period, it must use the balance of disposition proceeds to redeem (or defease) nonqualified bonds as allowed for the first type of remedial action described above.

Note: If the proceeds of a governmental bond issue are to be subsequently used by a 501(c)(3) organization, remediation by spending the disposition proceeds for an alternate use requires that the nonqualified bonds satisfy all the requirements for qualified 501(c)(3) bonds beginning on the date of the sale.

Alternative Use of Facility

The third type of remedial action available to the issuer is when the tax-exempt financed facility will be used after the sale for a purpose that is a qualifying purpose for another type of tax-exempt bonds (provided that the purchaser of the facility does not use tax-exempt bond proceeds for its purchase). The nonqualified bonds must satisfy all the requirements for the alternate type of tax-exempt bonds beginning on the date of the sale. The issuer must either apply any disposition proceeds resulting from the sale to pay the debt service on the bonds on the next available payment date or deposit the proceeds into an escrow within 90 days of their receipt. If the issuer must establish an escrow, the investment yield on the disposition proceeds must be restricted to the yield on the bonds and the escrow used to pay debt service on the next available payment date.

Allocation of Disposition Proceeds

For all three remedial actions, if the property was financed by different sources, the issuer must first allocate disposition proceeds to the outstanding bonds in proportion to the principal amounts of the outstanding bonds. If the disposition proceeds are not greater than the principal amount of outstanding bonds allocated to the sold property, the proceeds must first be allocated to the outstanding bonds before allocating to bonds no longer outstanding or to sources not derived from borrowing (such as revenues of the issuer).

Remedial Actions-Examples

The following examples assume that the above-described five conditions for remedial action are satisfied. Also, in these examples, no bond proceeds were used for costs of issuance or to fund a reserve fund.


Example 1. - Disposition proceeds are less than the principal amount of the outstanding bonds allocated to the sold property.

Issuer issues $10 million of bonds to finance the construction of a community center. Issuer later sells the center for $5 million, its fair market value. At this time, all $10 million of the bonds are still outstanding. The issuer may choose to remediate by using all $5 million of disposition proceeds to redeem within 90 days or establish a defeasance escrow for a pro rata portion of the $10 million of nonqualified bonds. The remaining outstanding $5 million of bonds would not be private activity bonds because the issuer has remediated as required by the Regulations.

Or, the issuer could remediate by using the alternative use of disposition proceeds option. Under this option, the issuer must apply the total amount of disposition proceeds, $5 million, to a qualifying alternative use within two years (or use a combination of the alternative use of disposition proceeds and redemption or defeasance options).

The disposition proceeds are considered gross proceeds of the bonds and as such are subject to the applicable yield restriction and arbitrage rebate rules pending their use as described above.

Example 2.- Disposition proceeds are greater than the principal amount of the outstanding bonds allocated to the sold property.

Issuer issues $10 million of bonds to finance a school and land. Issuer subsequently sells a portion of the land for $3 million. At this time, all $10 million of the bonds are still outstanding. The principal amount of outstanding bonds allocated to the sold property is $2 million. If the issuer chooses to remediate by redeeming bonds, it must redeem $2 million of outstanding bonds leaving the issuer with $1 million of gross proceeds.

Or, the issuer could remediate by using the alternative use of disposition proceeds option. If so, the Issuer must apply the total amount of the disposition proceeds, $3 million, to a qualifying use within two years (or use a combination of the alternative use of disposition proceeds and redemption or defeasance options).

The disposition proceeds are considered gross proceeds of the bonds and as such are subject to the applicable yield restriction and arbitrage rebate rules pending their use as described above.

Example 3. - Disposition proceeds are greater than the principal amount of the outstanding bonds allocated to the sold property and the conduit borrower finances the project in part with tax-exempt bond proceeds and in part with an equity contribution.

A 501(c)(3) conduit borrower contributed $4 million of cash from its revenues and used $6 million of tax-exempt bonds to finance a $10 million acquisition of a continuing care facility. Subsequently, the conduit borrower sells the facility for $12 million. At this time, all $6 million of the bonds are still outstanding. Thus the issuer has $6 million of nonqualified bonds. The issuer may remediate by either redeeming all of the $6 million nonqualified bonds or by requiring the conduit borrower to use $12 million of disposition proceeds for an alternative use within two years (provided all requirements of qualified 501(c)(3) bonds are met).

Of the $12 million of disposition proceeds, $6 million are considered gross proceeds of the bonds and as such are subject to the applicable yield restriction and arbitrage rebate rules pending their use as described above.

Gross Proceeds - Example 2 versus Example 3

When the tax-exempt bond financed property is sold for an amount in excess of the principal amount of the outstanding bonds allocated to that property, a different result occurs with respect to that excess amount depending on whether all the bonds of the issue have been redeemed. In Example 3, where the issuer redeemed all of the outstanding bonds, the remaining disposition proceeds are not gross proceeds of the bonds and, therefore, are no longer subject to the federal tax restrictions. This is because the amount of gross proceeds cannot exceed the amount of the outstanding bonds of the issue. Whereas in Example 2, although the issuer has redeemed the nonqualified bonds, the issuer still has bonds of the issue outstanding and thus the additional disposition proceeds are gross proceeds of the bonds and subject to the applicable yield restriction and arbitrage rebate rules pending their use.

Correction of Violations Using TEB Voluntary Closing Agreement Program (VCAP)

If an issuer or conduit borrower discovers that it has sold bond financed assets causing the applicable private business tests to be met but is ineligible to self-correct through a remedial action provision, TEB encourages the issuer to take advantage of its Voluntary Closing Agreement Program (TEB VCAP) to resolve federal tax violations relating to bonds as described in Notice 2008-31 and IRM section 7.2.3.

Page Last Reviewed or Updated: 04-Sep-2013

The 2010 Tax Software

2010 tax software Publication 4492-A - Main Contents Table of Contents DefinitionsKansas Disaster Area Storms and Tornadoes Casualty and Theft Losses Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Recovery Assistance Distributions Repayment of Qualified Recovery Assistance Distributions How To Report Qualified Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Employee Retention Credit Demolition and Clean-up Costs Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 2010 tax software Definitions The following definitions are used throughout this publication. 2010 tax software Kansas Disaster Area The Kansas disaster area covers the Kansas counties of Barton, Clay, Cloud, Comanche, Dickinson, Edwards, Ellsworth, Kiowa, Leavenworth, Lyon, McPherson, Osage, Osborne, Ottawa, Phillips, Pottawatomie, Pratt, Reno, Rice, Riley, Saline, Shawnee, Smith, and Stafford. 2010 tax software Storms and Tornadoes The term “storms and tornadoes” as used in this publication, refers to the storms and tornadoes that began on May 4, 2007, and affected the Kansas disaster area (defined above). 2010 tax software Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that occurred in the Kansas disaster area. 2010 tax software Limits on personal casualty or theft losses in the Kansas disaster area. 2010 tax software   Losses of personal use property that arose in the Kansas disaster area after May 3, 2007, are not subject to the $100 or 10% of adjusted gross income limits. 2010 tax software Qualifying losses include losses from casualties and thefts that arose in the disaster area and that were attributable to the storms and tornadoes. 2010 tax software When to deduct the loss. 2010 tax software   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. 2010 tax software However, the Kansas disaster area is a Presidentially declared disaster. 2010 tax software Therefore, you could have elected to deduct losses from these storms and tornadoes on your tax return for the previous year. 2010 tax software The deadline for making this election has expired. 2010 tax software   The following special instructions explain how to complete your forms if you deduct the loss in 2007 or elected to deduct the loss in 2006. 2010 tax software Special instructions for individuals who file Form 4684 to claim a Kansas disaster area casualty or theft loss for 2007 or are amending their 2006 return. 2010 tax software   Individuals filing or amending their 2007 tax return or amending their 2006 tax return for casualty or theft losses that were attributable to the storms and tornadoes should enter “Kansas Disaster Area” at the top of Form 1040 or 1040X. 2010 tax software They must also complete and attach the 2006 version of Form 4684 for either year and enter “Kansas Disaster Area” on the top and on the dotted line next to line 11 and enter -0- on line 11. 2010 tax software Individuals filing or amending their 2007 tax return should cross out “2006” and enter “2007” at the top of Form 4684. 2010 tax software They must also enter the amount from line 21 of that form on line 20 of Schedule A (Form 1040). 2010 tax software Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. 2010 tax software Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). 2010 tax software However, for property that was involuntarily converted after May 3, 2007, as a result of the storms and tornadoes, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Kansas disaster area. 2010 tax software For more information, see the Instructions for Form 4684. 2010 tax software Net Operating Losses Qualified recovery assistance loss. 2010 tax software   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. 2010 tax software However, the portion of an NOL that is a qualified recovery assistance loss can be carried back to the 5 tax years before the NOL year. 2010 tax software In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. 2010 tax software   A qualified recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified recovery assistance casualty loss (as defined below), Moving expenses paid or incurred after May 3, 2007, and before January 1, 2010, for the employment of an individual whose main home was in the Kansas disaster area before May 4, 2007, who was unable to remain in that home because of the storms and tornadoes, and whose main job location (after the move) is in the Kansas disaster area, Temporary housing expenses paid or incurred after May 3, 2007, and before January 1, 2010, to house employees of the taxpayer whose main job location is in the Kansas disaster area, Depreciation or amortization allowable for any qualified recovery assistance property (even if you elected not to claim the special recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after May 3, 2007, and before January 1, 2010, for any damage from the storms and tornadoes to property located in the Kansas disaster area. 2010 tax software Qualified recovery assistance casualty loss. 2010 tax software   A qualified recovery assistance casualty loss is any deductible section 1231 loss of property located in the Kansas disaster area if the loss was caused by the storms and tornadoes. 2010 tax software For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the storms and tornadoes of property located in the Kansas disaster area. 2010 tax software Any such loss taken into account in figuring your qualified recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. 2010 tax software Amended return. 2010 tax software   If you have already filed your 2007 tax return and then carried your NOL back 2 years, you may file an amended return to carry back for 5 years your NOL attributable to a qualified recovery assistance loss. 2010 tax software More information. 2010 tax software    For more information on NOLs, see Publication 536. 2010 tax software IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for individuals who suffered economic losses as a result of the storms and tornadoes. 2010 tax software Definitions Qualified recovery assistance distribution. 2010 tax software   Except as provided below, a qualified recovery assistance distribution is any distribution you received and designated as such from an eligible retirement plan if all of the following apply. 2010 tax software The distribution was made after May 3, 2007, and before January 1, 2009. 2010 tax software Your main home was located in the Kansas disaster area on May 4, 2007. 2010 tax software You sustained an economic loss because of the storms and tornadoes. 2010 tax software Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 2010 tax software   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified recovery assistance distribution, regardless of whether the distribution was made on account of the storms and tornadoes. 2010 tax software Qualified recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. 2010 tax software   The total of your qualified recovery assistance distributions from all plans is limited to $100,000. 2010 tax software If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. 2010 tax software   A reduction or offset after May 3, 2007, of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified recovery assistance distribution. 2010 tax software Eligible retirement plan. 2010 tax software   An eligible retirement plan can be any of the following. 2010 tax software A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). 2010 tax software A qualified annuity plan. 2010 tax software A tax-sheltered annuity contract. 2010 tax software A governmental section 457 deferred compensation plan. 2010 tax software A traditional, SEP, SIMPLE, or Roth IRA. 2010 tax software Main home. 2010 tax software   Generally, your main home is the home where you live most of the time. 2010 tax software A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. 2010 tax software Taxation of Qualified Recovery Assistance Distributions Qualified recovery assistance distributions are included in income in equal amounts over three years. 2010 tax software However, if you elect, you can include the entire distribution in your income in the year it was received. 2010 tax software Qualified recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). 2010 tax software However, any distributions you receive in excess of the $100,000 qualified recovery assistance distribution limit may be subject to the additional tax on early distributions. 2010 tax software For more information, see How To Report Qualified Recovery Assistance Distributions on page 4. 2010 tax software Repayment of Qualified Recovery Assistance Distributions If you choose, you generally can repay any portion of a qualified recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. 2010 tax software Also, you can repay a qualified recovery assistance distribution made on account of a hardship from a retirement plan. 2010 tax software However, see Exceptions below for qualified recovery assistance distributions you cannot repay. 2010 tax software You have three years from the day after the date you received the distribution to make a repayment. 2010 tax software Amounts that are repaid are treated as a qualified rollover and are not included in income. 2010 tax software Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. 2010 tax software See Form 8915 for more information on how to report repayments. 2010 tax software Exceptions. 2010 tax software   You cannot repay the following types of distributions. 2010 tax software Qualified recovery assistance distributions received as a beneficiary (other than a surviving spouse). 2010 tax software Required minimum distributions. 2010 tax software Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. 2010 tax software How To Report Qualified Recovery Assistance Distributions You will need the following information to correctly report any 2007 or 2008 qualified recovery assistance distributions. 2010 tax software 2007 Qualified Recovery Assistance Distributions If you received a distribution after May 3, 2007, from an eligible retirement plan, you may be able to designate it as a qualified recovery assistance distribution. 2010 tax software See Qualified recovery assistance distribution on page 3. 2010 tax software If you have not filed your 2007 income tax return, see Form 8915 and Form 8606 on this page to see how to complete these forms for any qualified recovery assistance distributions. 2010 tax software Be sure to attach Form 8915 and Form 8606 (if required) to your 2007 income tax return. 2010 tax software If you have filed your 2007 income tax return, you will need to amend your return to designate any distributions as qualified recovery assistance distributions. 2010 tax software You can amend your 2007 income tax return by using Form 1040X. 2010 tax software You will need to complete and attach Form 8915 and Form 8606 (if required) to your amended income tax return for any qualified recovery assistance distributions. 2010 tax software See Form 8915 and Form 8606 on this page. 2010 tax software Form 8915. 2010 tax software   For a 2007 qualified recovery assistance distribution, complete the 2005 Form 8915, Qualified Hurricane Retirement Plan Distributions and Repayments. 2010 tax software Before you complete the form, modify the form as follows. 2010 tax software Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 2010 tax software ” To the right of the title, cross out “2005” and enter “2007. 2010 tax software ” In Part I, at the top of column (a), cross out “2005” and enter “2007. 2010 tax software ” In Part II, cross out “Hurricane” in the title and enter “Recovery Assistance. 2010 tax software ” On lines 10 and 11, cross out “2005” and enter “2007. 2010 tax software ” In Part III, cross out “Hurricane” in the title and enter “Recovery Assistance. 2010 tax software ” On line 12, cross out “hurricane” and enter “recovery assistance. 2010 tax software ” On lines 13 and 14, cross out “line 15b” and “line 25b. 2010 tax software ” On lines 18 and 19, cross out “2005” and enter “2007. 2010 tax software ”   You can now complete Form 8915. 2010 tax software For the instructions, use the applicable dates and terms in this publication instead of those used in the 2005 Form 8915 instructions. 2010 tax software See Example 1 on page 5 to see how to complete Form 8915. 2010 tax software Form 8606. 2010 tax software   For a 2007 qualified recovery assistance distribution, complete or amend the 2007 Form 8606, Nondeductible IRAs. 2010 tax software Before you complete or amend the form, use the following additional instructions. 2010 tax software Form 8606, Part I. 2010 tax software    On line 6, subtract any repayments of qualified recovery assistance distributions from the amount you would otherwise enter on line 6. 2010 tax software Do not enter an amount less than -0-. 2010 tax software Include on line 7 the amount of any qualified recovery assistance distributions that you received even if they were later repaid. 2010 tax software Complete line 15 as follows. 2010 tax software If all of your distributions are qualified recovery assistance distributions, enter the amount from line 15 on Form 8915, line 13. 2010 tax software Do not enter this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 2010 tax software If you have qualified recovery assistance distributions as well as other distributions, you will need to multiply the amount on line 15 by a fraction. 2010 tax software The numerator of the fraction is your total qualified recovery assistance distributions and the denominator is the amount from Form 8606, line 7. 2010 tax software Enter the result in the white space in the bottom margin of the form under line 15. 2010 tax software To the left of this amount, enter “Qualified recovery assistance distributions” and also enter this amount on Form 8915, line 13. 2010 tax software Then, subtract this amount from the amount on line 15 and include the result on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 2010 tax software Also, enter this amount on Form 8606 under your qualified recovery assistance distributions. 2010 tax software To the left of this amount, enter “Other distributions. 2010 tax software ” Form 8606, Part III. 2010 tax software    Include on line 19 the amount of any qualified recovery assistance distributions that you received even if they were later repaid. 2010 tax software Complete line 25 as follows. 2010 tax software If all of your distributions are qualified recovery assistance distributions, enter the amount from line 25 on Form 8915, line 14. 2010 tax software Do not enter this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 2010 tax software If you have qualified recovery assistance distributions as well as other distributions, you will need to multiply the amount on line 25 by a fraction. 2010 tax software The numerator of the fraction is your total qualified recovery assistance distributions and the denominator is the amount from Form 8606, line 21. 2010 tax software Enter the result in the white space in the bottom margin of the form under line 25. 2010 tax software To the left of this amount, enter “Qualified recovery assistance distributions” and also enter this amount on Form 8915, line 14. 2010 tax software Then, subtract this amount from the amount on line 25 and include the result on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 2010 tax software Also, enter this amount on Form 8606 under your qualified recovery assistance distributions. 2010 tax software To the left of this amount, enter “Other distributions. 2010 tax software ” Example 1. 2010 tax software   On May 4, 2007, Margaret Maple lost her home due to the tornadoes on that day. 2010 tax software Her home was located in the Kansas disaster area. 2010 tax software On July 31, 2007, Margaret took out $30,000 from her 401(k) plan and an additional $15,000 from her traditional IRA in order to rebuild her home. 2010 tax software Margaret has not filed her 2007 return yet but would like to designate the $45,000 in distributions from her retirement plans as qualified recovery assistance distributions. 2010 tax software Since the distributions occurred in 2007, Margaret would modify and complete the 2005 Form 8915 as discussed on page 4. 2010 tax software Margaret would also need to complete Form 8606 since her distribution from her traditional IRA has nondeductible contributions from previous years. 2010 tax software   In addition to the $15,000 qualified recovery assistance distribution on July 31, 2007, Margaret received an additional distribution of $15,000 from her traditional IRA on October 31, 2007, that she did not designate as a qualified recovery assistance distribution. 2010 tax software Because Margaret has a qualified recovery assistance distribution as well as a distribution not so designated, Margaret must allocate the amount on Form 8606, line 15 to both distributions, as discussed earlier. 2010 tax software Margaret's qualified recovery assistance distributions are $13,125 ($26,250 × $15,000 ÷ $30,000). 2010 tax software Margaret enters in the white space in the bottom margin of Form 8606, the following, “Qualified recovery assistance distributions $13,125. 2010 tax software ” This amount is then reported on Form 8915, line 13. 2010 tax software Below this entry, Margaret enters “Other distributions $13,125,” and includes this amount on Form 1040, line 15b. 2010 tax software See Margaret's modified 2005 Form 8915 and 2007 Form 8606 shown on pages 6 through 8. 2010 tax software This image is too large to be displayed in the current screen. 2010 tax software Please click the link to view the image. 2010 tax software 2005 Form 8915, page 1, Illustrated Example 1. 2010 tax software This image is too large to be displayed in the current screen. 2010 tax software Please click the link to view the image. 2010 tax software 2005 Form 8915, page 2, Illustrated Example 1 This image is too large to be displayed in the current screen. 2010 tax software Please click the link to view the image. 2010 tax software Form 8606, page 1, Illustrated Example 1 2008 Qualified Recovery Assistance Distributions If you received a distribution in 2008 from an eligible retirement plan, you may be able to designate it as a qualified recovery assistance distribution. 2010 tax software See Qualified recovery assistance distribution on page 3. 2010 tax software You will need to complete and attach Form 8915 and Form 8606 (if required) to your 2008 income tax return for any qualified recovery assistance distributions. 2010 tax software See Form 8915 and Form 8606 below. 2010 tax software Form 8915. 2010 tax software   For a 2008 qualified recovery assistance distribution, you will need to complete the 2006 Form 8915. 2010 tax software Before you complete the form, modify the form as follows. 2010 tax software Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 2010 tax software ” To the right of the title, cross out “2006” and enter “2008. 2010 tax software ” In the first sentence of Part I and on line 1, cross out “hurricane” and enter “recovery assistance,” cross out “2006” and enter “2008,” and cross out “2005” and enter “2007. 2010 tax software ” At the top of column (a) cross out “2006” and enter “2008. 2010 tax software ” In Part II, cross out “Hurricane” in the title and enter “Recovery Assistance. 2010 tax software ” On lines 12, 14, and 15, cross out “2005” and enter “2007. 2010 tax software ” On lines 17 and 19, cross out “2006” and enter “2008. 2010 tax software ” In Part III, cross out “Hurricane” in the title and enter “Recovery Assistance. 2010 tax software ” On line 21, cross out “hurricane” and enter “recovery assistance. 2010 tax software ” On lines 22 and 23, cross out “line 15b” and “line 25b. 2010 tax software ” On lines 27, 29, and 30, cross out “2005” and enter “2007. 2010 tax software ” On lines 32 and 34, cross out “2006” and enter “2008. 2010 tax software ”   You can now complete Form 8915. 2010 tax software For the instructions, use the applicable dates and terms in this publication instead of those used in the 2006 Form 8915 instructions. 2010 tax software Example 2. 2010 tax software   On June 15, 2008, Margaret Maple, from the previous example, took out $15,000 from her 401(k) plan that she is designating as a qualified recovery assistance distribution. 2010 tax software Since the distribution occurred in 2008, Margaret would modify and complete the 2006 Form 8915 as discussed above. 2010 tax software Also, since Margaret is including her 2007 recovery assistance distributions in income over 3 years, she reports the applicable amount of those distributions on the modified 2006 Form 8915. 2010 tax software See Margaret's modified 2006 Form 8915 shown on pages 9 and 10. 2010 tax software This image is too large to be displayed in the current screen. 2010 tax software Please click the link to view the image. 2010 tax software 2006 Form 8915, page 1, Illustrated Example 2 This image is too large to be displayed in the current screen. 2010 tax software Please click the link to view the image. 2010 tax software 2006 Form 8915, page 2, Illustrated Example 2 Form 8606. 2010 tax software   For a 2008 qualified recovery assistance distribution, you may need to complete the 2008 Form 8606. 2010 tax software Before you complete Form 8606, use the additional instructions outlined in Form 8606, Part I, on page 4 and Form 8606, Part III, on this page. 2010 tax software Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Kansas disaster area, you can repay part or all of that distribution after May 3, 2007, but no later than October 22, 2008, to an eligible retirement plan. 2010 tax software For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. 2010 tax software To be a qualified distribution, the distribution must meet all of the following requirements. 2010 tax software The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. 2010 tax software The distribution was received after November 4, 2006, and before May 5, 2007. 2010 tax software The distribution was to be used to purchase or construct a main home in the Kansas disaster area that was not purchased or constructed because of the storms and tornadoes. 2010 tax software Amounts that are repaid before October 23, 2008, are treated as a qualified rollover and are not included in income. 2010 tax software Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. 2010 tax software A qualified distribution not repaid before October 23, 2008, may be taxable for 2006 or 2007 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. 2010 tax software You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before October 23, 2008. 2010 tax software See How to report, next, for information on completing Form 8915. 2010 tax software How to report. 2010 tax software   To report the repayment of a qualified distribution for the purchase or construction of a main home that was not purchased or constructed due to the storms and tornadoes, use the 2005 Form 8915, Part IV. 2010 tax software Before you complete the form, modify the form as follows. 2010 tax software Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 2010 tax software ” To the right of the title, cross out “2005” and enter “2006” or “2007. 2010 tax software ” Enter only the year the distribution was received. 2010 tax software Cross out “Hurricane” in the title of Part IV and enter “Kansas. 2010 tax software ” In the sentence below the title of Part IV, cross out “March 1, 2006” and enter “October 23, 2008. 2010 tax software ” On line 24, cross out “March 1, 2006” and enter “October 23, 2008. 2010 tax software ” You can now complete Part IV of Form 8915. 2010 tax software Use the applicable dates and terms in this publication instead of those used in the 2005 Form 8915 instructions to complete the form. 2010 tax software Attach Form 8915 to your original or amended return for the year of the distribution. 2010 tax software Amended return. 2010 tax software   If you repay part or all of a qualified distribution by October 22, 2008, you will need to file an amended return for that part of a distribution that was previously included in income. 2010 tax software Loans From Qualified Plans The following benefits are available to qualified individuals. 2010 tax software Increases to the limits for distributions treated as loans from employer plans. 2010 tax software A 1-year suspension for payments due on plan loans. 2010 tax software Qualified individual. 2010 tax software   You are a qualified individual if your main home on May 4, 2007, was located in the Kansas disaster area and you had an economic loss because of the storms and tornadoes. 2010 tax software Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 2010 tax software Limits on plan loans. 2010 tax software   The $50,000 limit for distributions treated as plan loans is increased to $100,000. 2010 tax software In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. 2010 tax software If your home was located in the Kansas disaster area, the higher limits apply only to loans received during the period beginning on May 22, 2008, and ending on December 31, 2008. 2010 tax software One-year suspension of loan payments. 2010 tax software   Payments on plan loans outstanding after May 3, 2007, may be suspended for 1 year by the plan administrator. 2010 tax software To qualify for the suspension, the due date for any loan payment must occur during the period beginning on May 4, 2007, and ending on December 31, 2008. 2010 tax software Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified recovery assistance property (as defined below) you acquire after May 4, 2007. 2010 tax software The special allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). 2010 tax software The special allowance applies only for the first year the property is placed in service. 2010 tax software The special allowance is deductible for both the regular tax and the alternative minimum tax (AMT). 2010 tax software There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. 2010 tax software You can elect not to deduct the special allowance for qualified recovery assistance property. 2010 tax software If you make this election for any property, it applies to all property in the same class placed in service during the year. 2010 tax software Qualified recovery assistance property. 2010 tax software   Property that qualifies for the special allowance for qualified recovery assistance property includes the following. 2010 tax software Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. 2010 tax software Water utility property. 2010 tax software Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. 2010 tax software (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. 2010 tax software ) Qualified leasehold improvement property. 2010 tax software Nonresidential real property and residential rental property. 2010 tax software   For more information on this property, see Publication 946. 2010 tax software Other tests to be met. 2010 tax software   To be qualified recovery assistance property, the property must also meet all of the following tests. 2010 tax software You must have acquired the property, by purchase, after May 4, 2007, but only if no binding written contract for the acquisition was in effect before May 5, 2007. 2010 tax software The property must be placed in service before 2009 (2010 in the case of nonresidential real property and residential rental property). 2010 tax software Substantially all of the use of the property must be in the Kansas disaster area and in the active conduct of your trade or business in the Kansas disaster area. 2010 tax software The original use of the property in the Kansas disaster area must begin with you after May 4, 2007. 2010 tax software Used property can be qualified recovery assistance property if it has not previously been used within the Kansas disaster area. 2010 tax software Also, additional capital expenditures you incurred after May 4, 2007, to recondition or rebuild your property meet the original use test if the original use of the property in the Kansas disaster area began with you. 2010 tax software Excepted property. 2010 tax software   Qualified recovery assistance property does not include any of the following. 2010 tax software Property required to be depreciated using the Alternative Depreciation System (ADS). 2010 tax software Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. 2010 tax software Property for which you are claiming a commercial revitalization deduction. 2010 tax software Property in the same class as that for which you elected not to claim the special allowance for qualified recovery assistance property. 2010 tax software Property placed in service and disposed of in the same tax year. 2010 tax software Property converted from business use to personal use in the same tax year it is placed in service. 2010 tax software Property converted from personal use to business use in the same or later tax year may be qualified recovery assistance property. 2010 tax software Recapture of special allowance. 2010 tax software   If, in any year after the year you claim the special allowance, the property ceases to be qualified recovery assistance property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. 2010 tax software Amended return. 2010 tax software   If you have already filed your tax return, you may have to amend that return to claim any special allowance. 2010 tax software Additional guidance will be published on how you may claim, or elect not to claim, the special allowance if you have already filed your tax return. 2010 tax software Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 recovery assistance property (as defined later) placed in service in the Kansas disaster area. 2010 tax software Increased dollar limit. 2010 tax software   The limit on the section 179 deduction ($125,000 for 2007, $250,000 for 2008) is increased by the smaller of: $100,000, or The cost of qualified section 179 recovery assistance property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). 2010 tax software   The amount for which you can make the election is reduced if the cost of all section 179 property you placed in service during the year exceeds $500,000 for 2007 and $800,000 for 2008 increased by the smaller of: $600,000, or The cost of qualified section 179 recovery assistance property placed in service during the year. 2010 tax software Qualified section 179 recovery assistance property. 2010 tax software   Qualified section 179 recovery assistance property is section 179 property that is qualified recovery assistance property (explained earlier under Special Depreciation Allowance). 2010 tax software Section 179 property does not include nonresidential real property or residential rental property. 2010 tax software For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. 2010 tax software Amended return. 2010 tax software   If you have already filed your tax return, you may have to amend that return for any increased section 179 deduction. 2010 tax software Employee Retention Credit An eligible employer who conducted an active trade or business in the Kansas disaster area can claim the employee retention credit. 2010 tax software The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). 2010 tax software Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). 2010 tax software Use Form 5884-A to claim the credit. 2010 tax software See Form 5884-A later. 2010 tax software The following rules and definitions apply. 2010 tax software Employers affected by the storms and tornadoes. 2010 tax software   The following definitions apply to employers affected by the storms and tornadoes. 2010 tax software Eligible employer. 2010 tax software   For this purpose, an eligible employer is any employer who meets all of the following. 2010 tax software Employed an average of not more than 200 employees on business days during the tax year before May 4, 2007. 2010 tax software Conducted an active trade or business on May 4, 2007, in the Kansas disaster area. 2010 tax software Whose trade or business was inoperable on any day after May 4, 2007, and before January 1, 2008, because of damage caused by the storms and tornadoes. 2010 tax software Eligible employee. 2010 tax software   For this purpose, an eligible employee is an employee whose principal place of employment on May 4, 2007, with the eligible employer was in the Kansas disaster area. 2010 tax software An employee is not an eligible employee for purposes of the storms and tornadoes if the employee is treated as an eligible employee for the work opportunity credit. 2010 tax software Qualified wages. 2010 tax software   Qualified wages are wages you paid or incurred before January 1, 2008, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before May 4, 2007, and ending on the date your trade or business resumed significant operations at that place. 2010 tax software In addition, the wages must have been paid or incurred after May 4, 2007. 2010 tax software    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. 2010 tax software    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). 2010 tax software Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. 2010 tax software Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. 2010 tax software   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. 2010 tax software For a special rule that applies to railroad employees, see section 51(h)(1)(B). 2010 tax software   Qualified wages do not include the following. 2010 tax software Wages paid to your dependent or a related individual. 2010 tax software See section 51(i)(1). 2010 tax software Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. 2010 tax software Wages for services of replacement workers during a strike or lockout. 2010 tax software Form 5884-A. 2010 tax software   Use Section A of Form 5884-A (Rev. 2010 tax software October 2006) to claim the employer retention credit. 2010 tax software Section B does not apply to the Kansas disaster area. 2010 tax software Before you complete the form, modify the form as follows. 2010 tax software Cross out “Hurricane Katrina, Rita, or Wilma” in the title at the top of the form and enter “Kansas Storms and Tornadoes. 2010 tax software ” On line 1a cross out “Hurricane Katrina” and enter “Kansas Storms and Tornadoes,” cross out “August 28, 2005,” and enter “May 4, 2007,” and cross out “January 1, 2006,” and enter “January 1, 2008. 2010 tax software ”   Complete the form as instructed. 2010 tax software Lines 1b and 1c do not apply. 2010 tax software Include the amount from Form 5884-A, line 4 in the amount entered on Form 3800, line 1x. 2010 tax software On the dotted line to the left of line 1x, enter “5884-A. 2010 tax software ” Use the applicable dates and terms in this publication instead of those used in the Form 5884-A instructions. 2010 tax software Amended return. 2010 tax software   You may have to amend a previously filed return to claim the employee retention credit. 2010 tax software Demolition and Clean-up Costs You can elect to deduct 50% of any qualified recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. 2010 tax software Qualified recovery assistance clean-up costs are any amounts paid or incurred after May 3, 2007, and before January 1, 2010, for the removal of debris from, or the demolition of structures on, real property located in the Kansas disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. 2010 tax software Amended return. 2010 tax software   If you have already filed your tax return, you may have to amend that return to claim the 50% of any qualified recovery assistance clean-up costs. 2010 tax software Request for Copy or Transcript of Tax Return Request for copy of tax return. 2010 tax software   You can use Form 4506 to order a copy of your tax return. 2010 tax software Generally, there is a $39. 2010 tax software 00 fee (subject to change) for requesting each copy of a tax return. 2010 tax software If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Kansas Storms”) is written in red across the top of the form when filed. 2010 tax software Request for transcript of tax return. 2010 tax software   You can use Form 4506-T to order a free transcript of your tax return. 2010 tax software A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. 2010 tax software You can also call 1-800-829-1040 to order a transcript. 2010 tax software How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 2010 tax software By selecting the method that is best for you, you will have quick and easy access to tax help. 2010 tax software Contacting your Taxpayer Advocate. 2010 tax software   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. 2010 tax software   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. 2010 tax software You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. 2010 tax software You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. 2010 tax software For more information, go to www. 2010 tax software irs. 2010 tax software gov/advocate. 2010 tax software Low Income Taxpayer Clinics (LITCs). 2010 tax software   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. 2010 tax software The clinics also provide tax education and outreach for taxpayers who speak English as a second language. 2010 tax software Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. 2010 tax software It is available at www. 2010 tax software irs. 2010 tax software gov or your local IRS office. 2010 tax software Free tax services. 2010 tax software   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. 2010 tax software It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. 2010 tax software It also has an index of over 100 TeleTax topics, (recorded tax information) you can listen to on your telephone. 2010 tax software   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 2010 tax software Free help with your return. 2010 tax software   Free help in preparing your return is available nationwide from IRS-trained volunteers. 2010 tax software The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 2010 tax software Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2010 tax software To find a site near you, call 1-800-829-1040. 2010 tax software Or to find the nearest AARP TaxAide site, visit AARP's website at www. 2010 tax software aarp. 2010 tax software org/taxaide or call 1-888-227-7669. 2010 tax software For more information on these programs, go to www. 2010 tax software irs. 2010 tax software gov and enter keyword “VITA” in the upper right-hand corner. 2010 tax software Internet. 2010 tax software You can access the IRS website at www. 2010 tax software irs. 2010 tax software gov 24 hours a day, 7 days a week to: E-file your return. 2010 tax software Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 2010 tax software Check the status of your refund. 2010 tax software Click on Where's My Refund. 2010 tax software Wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 2010 tax software Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 2010 tax software Download forms, instructions, and publications. 2010 tax software Order IRS products online. 2010 tax software Research your tax questions online. 2010 tax software Search publications online by topic or keyword. 2010 tax software View Internal Revenue Bulletins (IRBs) published in the last few years. 2010 tax software Figure your withholding allowances using the withholding calculator online at www. 2010 tax software irs. 2010 tax software gov/individuals. 2010 tax software Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. 2010 tax software Sign up to receive local and national tax news by email. 2010 tax software Get information on starting and operating a small business. 2010 tax software Phone. 2010 tax software Many services are available by phone. 2010 tax software Ordering forms, instructions, and publications. 2010 tax software Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. 2010 tax software You should receive your order within 10 days. 2010 tax software Asking tax questions. 2010 tax software Call the IRS with your tax questions at 1-800-829-1040. 2010 tax software Solving problems. 2010 tax software You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. 2010 tax software An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 2010 tax software Call your local Taxpayer Assistance Center for an appointment. 2010 tax software To find the number, go to www. 2010 tax software irs. 2010 tax software gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2010 tax software TTY/TDD equipment. 2010 tax software If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 2010 tax software TeleTax topics. 2010 tax software Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 2010 tax software Refund information. 2010 tax software To check the status of your refund, call 1-800-829-4477 and press 1 for automated refund information or call 1-800-829-1954. 2010 tax software Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 2010 tax software Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 2010 tax software Evaluating the quality of our telephone services. 2010 tax software To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 2010 tax software One method is for a second IRS representative to listen in on or record random telephone calls. 2010 tax software Another is to ask some callers to complete a short survey at the end of the call. 2010 tax software Walk-in. 2010 tax software Many products and services are available on a walk-in basis. 2010 tax software Products. 2010 tax software You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2010 tax software Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. 2010 tax software Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 2010 tax software Services. 2010 tax software You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. 2010 tax software An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 2010 tax software If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. 2010 tax software No appointment is necessary — just walk in. 2010 tax software If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. 2010 tax software A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. 2010 tax software If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment may be requested. 2010 tax software All other issues will be handled without an appointment. 2010 tax software To find the number of your local office, go to www. 2010 tax software irs. 2010 tax software gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2010 tax software Mail. 2010 tax software You can send your order for forms, instructions, and publications to the address below. 2010 tax software You should receive a response within 10 days after your request is received. 2010 tax software Internal Revenue Service 1201 N. 2010 tax software Mitsubishi Motorway Bloomington, IL 61705-6613 CD/DVD for tax products. 2010 tax software You can order Publication 1796, IRS Tax Products CD/DVD, and obtain: Current-year forms, instructions, and publications. 2010 tax software Prior-year forms, instructions, and publications. 2010 tax software Bonus: Historical Tax Products DVD - Ships with the final release. 2010 tax software IRS Tax Map: an electronic research tool and finding aid. 2010 tax software Tax law frequently asked questions (FAQ). 2010 tax software Tax Topics from the IRS telephone response system. 2010 tax software Fill-in, print, and save features for most tax forms. 2010 tax software Internal Revenue Bulletins. 2010 tax software Toll-free and email technical support. 2010 tax software The CD/DVD is released twice during the year in January and March. 2010 tax software Purchase the CD/DVD from National Technical Information Service (NTIS) at www. 2010 tax software irs. 2010 tax software gov/cdorders for $35 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the CD/DVD for $35 (plus a $5 handling fee). 2010 tax software Price is subject to change. 2010 tax software CD for small businesses. 2010 tax software Publication 3207, The Small Business Resource Guide CD, is a must for every small business owner or any taxpayer about to start a business. 2010 tax software This year's CD includes: Helpful information, such as how to prepare a business plan, find financing for your business, and much more. 2010 tax software All the business tax forms, instructions, and publications needed to successfully manage a business. 2010 tax software Tax law changes. 2010 tax software Tax Map: an electronic research tool and finding aid. 2010 tax software Web links to various government agencies, business associations, and IRS organizations. 2010 tax software “Rate the Product” survey—your opportunity to suggest changes for future editions. 2010 tax software A site map of the CD to help you navigate the pages of the CD with ease. 2010 tax software An interactive “Teens in Biz” module that gives practical tips for teens about starting their own business, creating a business plan, and filing taxes. 2010 tax software An updated version of this CD is available each year in early April. 2010 tax software You can get a free copy by calling 1-800-829-3676 or by visiting www. 2010 tax software irs. 2010 tax software gov/smallbiz. 2010 tax software Prev  Up  Next   Home   More Online Publications