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

Amendments

Www Dfas MilE File Tax Return 20112012 Tax Forms IrsFile Taxes 2012How To Do An Amended Tax ReturnWww Mifastfile OrgHow To File 2010 TaxesFiling Amended Tax Return 2009How Do You File An Amended Tax ReturnHelp Filling Out 1040xFree State Tax Prep OnlineAmending Tax ReturnsI Need To Print A 1040ez FormH&r Block Advantage Free FileTaxwise SoftwareEz Tax Form 2013Free File Amended Tax ReturnHow Do You Fill Out A 1040x FormTax DeadlineHrblock EfileHow To Make A Tax Amendment1040x Tax FormNeed 2011 TaxesMy Free Tax1040x FilingTurbotax 1040ez OnlineAmending 2011 Tax ReturnTax Form 1040ez 2013How To Fill 1040nr Ez FormFederal Tax FormsForm 1040nr SoftwareFree E File State Tax ReturnTax Form 2011File State Taxes Free OnlineIrs FormsMyfreetaxes Com TaxtimeFederal Tax Extension OnlineFree State Tax EfileE-file State Return For FreeHttps Www Freefilefillableforms Com Ffa Checkstatus Htm

Amendments

Amendments Part Three -   Ganancias y Pérdidas Los cuatro capítulos de esta sección abordan las ganancias y pérdidas provenientes de inversiones. Amendments Explican también cómo calcular la base de una propiedad. Amendments Una ganancia proveniente de la venta o del canje de acciones, bonos u otra propiedad de inversión puede estar sujeta a impuestos o al menos parcialmente exenta de impuestos. Amendments Una pérdida puede ser o no ser deducible. Amendments Además, estos capítulos tratan sobre las ganancias provenientes de la venta de propiedad de uso personal, incluidas las reglas especiales que corresponden al vender su vivienda. Amendments Las pérdidas por hecho fortuito y robo no relacionadas con los negocios se presentan en el capítulo 25 de la Parte Cinco. Amendments Table of Contents 13. Amendments   Base de BienesIntroduction Useful Items - You may want to see: Base de CostoBienes Raíces Base AjustadaAumentos a la Base Disminuciones a la Base Base Distinta al CostoBienes Recibidos por Servicios Intercambios Sujetos a Impuestos Conversiones Involuntarias Intercambios no Sujetos a Impuestos Bienes Traspasados de un Cónyuge Bienes Recibidos como Donación Bienes Heredados Bienes de Uso Personal Cambiados a Uso Comercial o de Alquiler Acciones y Bonos 14. Amendments   Venta de BienesRecordatorio Introduction Useful Items - You may want to see: Ventas y CanjesQué es una Venta o Canje Cómo Calcular Pérdidas o Ganancias Canjes no Sujetos a Impuestos Traspasos entre Cónyuges Transacciones entre Partes Vinculadas Pérdidas y Ganancias de CapitalPérdidas o Ganancias Ordinarias o de Capital Bienes de Capital y Bienes que no Son de Capital Período de Tenencia Deudas Incobrables no Empresariales Ventas Ficticias Reinversiones de Ganancia de Valores Cotizados en Bolsa 15. Amendments   Venta de su ViviendaRecordatorio Introduction Useful Items - You may want to see: Vivienda Principal Cómo Calcular las Pérdidas o Ganancias Precio de Venta Cantidad Recibida Base Ajustada Cantidad de Pérdidas o Ganancias Enajenaciones que no Sean Ventas Cómo Determinar la Base Cómo Excluir las GananciasExclusión Máxima Requisitos de Propietario y de Uso Exclusión Máxima Reducida Uso Comercial o Alquiler de Vivienda Cómo Declarar la VentaHipoteca financiada por el vendedor. Amendments Información adicional. Amendments Situaciones EspecialesExcepción para ventas a personas emparentadas o vinculadas. Amendments Recuperación (Devolución) de un Subsidio Hipotecario Federal 16. Amendments   Cómo Declarar Ganancias y PérdidasQué Hay de Nuevo Introduction Useful Items - You may want to see: Cómo Declarar Ganancias y Pérdidas de CapitalExcepción 1. Amendments Excepción 2. Amendments Presente el Formulario 1099-B o el Formulario 1099-S al IRS. Amendments Pérdidas de Capital Tasas Impositivas sobre Ganancias de Capital Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Low Income Taxpayer Clinic Program Reports on Activities

IR-2014-21, March 5, 2014

WASHINGTON — The Internal Revenue Service’s Low Income Taxpayer Clinic (LITC) Program Office issued its second annual program report on how LITCs assist thousands of low income taxpayers nationwide with pro bono representation, education, and advocacy services.

The LITCs provide free or low-cost assistance to low income taxpayers who have a tax dispute with the IRS, such as an audit or collection matter, and conduct education and outreach to taxpayers who speak English as a second language (ESL).  LITCs also advocate for low income taxpayers and highlight the need to change administrative practices and procedures that cause their clients economic hardship. 

“The LITCs help taxpayers achieve favorable outcomes in cases, access benefits administered through the tax system, and resolve tax debts, levies, and liens.  During 2012, LITCs helped taxpayers secure more than $5.8 million in tax refunds and eliminate nearly $35.5 million in tax liabilities, penalties and interest,” said William P. Nelson, LITC Program Director.  The report provides an overview and history of the LITC Program, discusses the type of work the LITCs perform, and explains how their work helps ensure the fairness and integrity of the tax system. 

The LITC program has a three-prong mission to represent, educate, and advocate for taxpayers.  Included in the report are several stories that provide examples of how LITCs have helped taxpayers.  One taxpayer was facing a levy action that put her in danger of losing her home but the LITC was able to negotiate an offer in compromise to eliminate the debt and keep the taxpayer in her home.  LITCs employ staff but also rely on the contributions of volunteers.  In 2012, taxpayers benefited from over 59,000 volunteer hours provided by nearly 2,300 LITC volunteers.

The LITC program awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand, or maintain a low income taxpayer clinic.  The grant program is administered by the Office of the Taxpayer Advocate at the IRS, led by the National Taxpayer Advocate.  Although LITCs receive partial funding from the IRS, LITCs, their employees and volunteers operate independently from the IRS.  LITCs are generally operated by:

  • clinical programs at accredited law, business, or accounting schools;
  • legal aid or legal services organizations; and
  • other tax exempt organizations that serve low income individuals and families.

The Low Income Taxpayer Clinic Program Report is available at http://www.irs.gov/pub/irs-pdf/p5066.pdf.

Follow the IRS on New Media
Subscribe to IRS Newswire

Page Last Reviewed or Updated: 05-Mar-2014

The Amendments

Amendments 2. Amendments   Foreclosures and Repossessions Table of Contents Amount realized and ordinary income on a recourse debt. Amendments Amount realized on a nonrecourse debt. Amendments If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. Amendments The foreclosure or repossession is treated as a sale from which you may realize gain or loss. Amendments This is true even if you voluntarily return the property to the lender. Amendments If the outstanding loan balance was more than the FMV of the property and the lender cancels all or part of the remaining loan balance, you also may realize ordinary income from the cancellation of debt. Amendments You must report this income on your return unless certain exceptions or exclusions apply. Amendments See chapter 1 for more details. Amendments Borrower's gain or loss. Amendments    You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale. Amendments The gain is the difference between the amount realized and your adjusted basis in the transferred property (amount realized minus adjusted basis). Amendments The loss is the difference between your adjusted basis in the transferred property and the amount realized (adjusted basis minus amount realized). Amendments For more information on figuring gain or loss from the sale of property, see Gain or Loss From Sales and Exchanges in Publication 544. Amendments You can use Table 1-1 to figure your ordinary income from the cancellation of debt and your gain or loss from a foreclosure or repossession. Amendments Amount realized and ordinary income on a recourse debt. Amendments    If you are personally liable for the debt, the amount realized on the foreclosure or repossession includes the smaller of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The FMV of the transferred property. Amendments The amount realized also includes any proceeds you received from the foreclosure sale. Amendments If the FMV of the transferred property is less than the total outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, the difference is ordinary income from the cancellation of debt. Amendments You must report this income on your return unless certain exceptions or exclusions apply. Amendments See chapter 1 for more details. Amendments       Example 1. Amendments Tara bought a new car for $15,000. Amendments She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. Amendments Tara is personally liable for the loan (recourse debt) and the car is pledged as security for the loan. Amendments On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. Amendments The balance due after taking into account the payments Tara made was $10,000. Amendments The FMV of the car when it was repossessed was $9,000. Amendments On November 15, 2013, the credit company forgave the remaining $1,000 balance on the loan due to insufficient assets. Amendments In this case, the amount Tara realizes is $9,000. Amendments This is the smaller of: The $10,000 outstanding debt immediately before the repossession reduced by the $1,000 for which she remains personally liable immediately after the repossession ($10,000 − $1,000 = $9,000), or The $9,000 FMV of the car. Amendments Tara figures her gain or loss on the repossession by comparing the $9,000 amount realized with her $15,000 adjusted basis. Amendments She has a $6,000 nondeductible loss. Amendments After the cancellation of the remaining balance on the loan in November, Tara also has ordinary income from cancellation of debt in the amount of $1,000 (the remaining balance on the $10,000 loan after the $9,000 amount satisfied by the FMV of the repossessed car). Amendments Tara must report this $1,000 on her return unless one of the exceptions or exclusions described in chapter 1 applies. Amendments Example 2. Amendments Lili paid $200,000 for her home. Amendments She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. Amendments Lili is personally liable for the mortgage loan and the house secures the loan. Amendments In 2013, the bank foreclosed on the mortgage because Lili stopped making payments. Amendments When the bank foreclosed the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. Amendments At the time of the foreclosure, the bank forgave $2,000 of the $10,000 debt in excess of the FMV ($180,000 minus $170,000). Amendments She remained personally liable for the $8,000 balance. Amendments In this case, Lili has ordinary income from the cancellation of debt in the amount of $2,000. Amendments The $2,000 income from the cancellation of debt is figured by subtracting the $170,000 FMV of the house from the $172,000 difference between her total outstanding debt immediately before the transfer of property and the amount for which she remains personally liable immediately after the transfer ($180,000 minus $8,000). Amendments She is able to exclude the $2,000 of canceled debt from her income under the qualified principal residence indebtedness rules discussed earlier. Amendments Lili must also determine her gain or loss from the foreclosure. Amendments In this case, the amount that she realizes is $170,000. Amendments This is the smaller of: (a) the $180,000 outstanding debt immediately before the transfer reduced by the $8,000 for which she remains personally liable immediately after the transfer ($180,000 − $8,000 = $172,000) or (b) the $170,000 FMV of the house. Amendments Lili figures her gain or loss on the foreclosure by comparing the $170,000 amount realized with her $175,000 adjusted basis. Amendments She has a $5,000 nondeductible loss. Amendments Table 1-1. Amendments Worksheet for Foreclosures and Repossessions Part 1. Amendments Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). Amendments Otherwise, go to Part 2. Amendments 1. Amendments Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property   2. Amendments Enter the fair market value of the transferred property   3. Amendments Ordinary income from the cancellation of debt upon foreclosure or repossession. Amendments * Subtract line 2 from line 1. Amendments If less than zero, enter zero. Amendments Next, go to Part 2   Part 2. Amendments Gain or loss from foreclosure or repossession. Amendments   4. Amendments Enter the smaller of line 1 or line 2. Amendments If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property   5. Amendments Enter any proceeds you received from the foreclosure sale   6. Amendments Add line 4 and line 5   7. Amendments Enter the adjusted basis of the transferred property   8. Amendments Gain or loss from foreclosure or repossession. Amendments Subtract line 7 from line 6   * The income may not be taxable. Amendments See chapter 1 for more details. Amendments Amount realized on a nonrecourse debt. Amendments    If you are not personally liable for repaying the debt secured by the transferred property, the amount you realize includes the full amount of the outstanding debt immediately before the transfer. Amendments This is true even if the FMV of the property is less than the outstanding debt immediately before the transfer. Amendments Example 1. Amendments Tara bought a new car for $15,000. Amendments She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. Amendments Tara is not personally liable for the loan (nonrecourse), but pledged the new car as security for the loan. Amendments On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. Amendments The balance due after taking into account the payments Tara made was $10,000. Amendments The FMV of the car when it was repossessed was $9,000. Amendments The amount Tara realized on the repossession is $10,000. Amendments That is the outstanding amount of debt immediately before the repossession, even though the FMV of the car is less than $10,000. Amendments Tara figures her gain or loss on the repossession by comparing the $10,000 amount realized with her $15,000 adjusted basis. Amendments Tara has a $5,000 nondeductible loss. Amendments Example 2. Amendments Lili paid $200,000 for her home. Amendments She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. Amendments She is not personally liable for the loan, but grants the bank a mortgage. Amendments The bank foreclosed on the mortgage because Lili stopped making payments. Amendments When the bank foreclosed on the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. Amendments The amount Lili realized on the foreclosure is $180,000, the outstanding debt immediately before the foreclosure. Amendments She figures her gain or loss by comparing the $180,000 amount realized with her $175,000 adjusted basis. Amendments Lili has a $5,000 realized gain. Amendments See Publication 523 to figure and report any taxable amount. Amendments Forms 1099-A and 1099-C. Amendments    A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A, Acquisition or Abandonment of Secured Property, showing information you need to figure your gain or loss. Amendments However, if the lender also cancels part of your debt and must file Form 1099-C, the lender can include the information about the foreclosure or repossession on that form instead of on Form 1099-A. Amendments The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Amendments For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. Amendments Prev  Up  Next   Home   More Online Publications