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Can I Still E File 2011 Taxes

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Can I Still E File 2011 Taxes

Can i still e file 2011 taxes Publication 596 - Introductory Material Table of Contents Future Developments What is the EIC? Can I Claim the EIC? Do I Need This Publication? Do I Have To Have A Child To Qualify For The EIC? How Do I Figure the Amount of EIC? How Can I Quickly Locate Specific information? Is There Help Online? What's New for 2013 Reminders Future Developments For the latest information about developments related to Publication 596, such as legislation enacted after it was published, go to www. Can i still e file 2011 taxes irs. Can i still e file 2011 taxes gov/pub596. Can i still e file 2011 taxes What is the EIC? The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $51,567. Can i still e file 2011 taxes A tax credit usually means more money in your pocket. Can i still e file 2011 taxes It reduces the amount of tax you owe. Can i still e file 2011 taxes The EIC may also give you a refund. Can i still e file 2011 taxes Can I Claim the EIC? To claim the EIC, you must meet certain rules. Can i still e file 2011 taxes These rules are summarized in Table 1. Can i still e file 2011 taxes Table 1. Can i still e file 2011 taxes Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Can i still e file 2011 taxes Second, you must meet all the rules in one of these columns, whichever applies. Can i still e file 2011 taxes Third, you must meet the rule in this column. Can i still e file 2011 taxes Chapter 1. Can i still e file 2011 taxes  Rules for Everyone Chapter 2. Can i still e file 2011 taxes  Rules If You Have a Qualifying Child Chapter 3. Can i still e file 2011 taxes  Rules If You Do Not Have a Qualifying Child Chapter 4. Can i still e file 2011 taxes  Figuring and Claiming the EIC 1. Can i still e file 2011 taxes Your adjusted gross income (AGI) must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Can i still e file 2011 taxes 2. Can i still e file 2011 taxes You must have a valid social security number. Can i still e file 2011 taxes   3. Can i still e file 2011 taxes Your filing status cannot be Married filing separately. Can i still e file 2011 taxes   4. Can i still e file 2011 taxes You must be a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizen or resident alien all year. Can i still e file 2011 taxes   5. Can i still e file 2011 taxes You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Can i still e file 2011 taxes   6. Can i still e file 2011 taxes Your investment income must be $3,300 or less. Can i still e file 2011 taxes    7. Can i still e file 2011 taxes You must have earned income. Can i still e file 2011 taxes 8. Can i still e file 2011 taxes Your child must meet the relationship, age, residency, and joint return tests. Can i still e file 2011 taxes   9. Can i still e file 2011 taxes Your qualifying child cannot be used by more than one person to claim the EIC. Can i still e file 2011 taxes   10. Can i still e file 2011 taxes You cannot be a qualifying child of another person. Can i still e file 2011 taxes 11. Can i still e file 2011 taxes You must be at least age 25 but under age 65. Can i still e file 2011 taxes    12. Can i still e file 2011 taxes You cannot be the dependent of another person. Can i still e file 2011 taxes   13. Can i still e file 2011 taxes You cannot be a qualifying child of another person. Can i still e file 2011 taxes   14. Can i still e file 2011 taxes You must have lived in the United States more than half of the year. Can i still e file 2011 taxes 15. Can i still e file 2011 taxes Your earned income must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Can i still e file 2011 taxes Do I Need This Publication? Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. Can i still e file 2011 taxes You are one of those people if any of the following statements are true for 2013. Can i still e file 2011 taxes You are filing Schedule E (Form 1040). Can i still e file 2011 taxes You are reporting income from the rental of personal property not used in a trade or business. Can i still e file 2011 taxes You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends). Can i still e file 2011 taxes You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797. Can i still e file 2011 taxes If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. Can i still e file 2011 taxes You do not need this publication. Can i still e file 2011 taxes But you can read it to find out whether you can take the EIC and to learn more about the EIC. Can i still e file 2011 taxes Do I Have To Have A Child To Qualify For The EIC? No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $14,340 ($19,680 if married filing jointly). Can i still e file 2011 taxes See chapter 3. Can i still e file 2011 taxes How Do I Figure the Amount of EIC? If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. Can i still e file 2011 taxes To figure it yourself, you can complete a worksheet in the instructions for the form you file. Can i still e file 2011 taxes To find out how to have the IRS figure it for you, see chapter 4. Can i still e file 2011 taxes How Can I Quickly Locate Specific information? You can use the index to look up specific information. Can i still e file 2011 taxes In most cases, index entries will point you to headings, tables, or a worksheet. Can i still e file 2011 taxes Is There Help Online? Yes. Can i still e file 2011 taxes You can use the EITC Assistant at www. Can i still e file 2011 taxes irs. Can i still e file 2011 taxes gov/eitc to find out if you may be eligible for the credit. Can i still e file 2011 taxes The EITC Assistant is available in English and Spanish. Can i still e file 2011 taxes What's New for 2013 Earned income amount is more. Can i still e file 2011 taxes The maximum amount of income you can earn and still get the credit has increased. Can i still e file 2011 taxes You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). Can i still e file 2011 taxes Your adjusted gross income also must be less than the amount in the above list that applies to you. Can i still e file 2011 taxes For details, see Rules 1 and 15. Can i still e file 2011 taxes Investment income amount is more. Can i still e file 2011 taxes The maximum amount of investment income you can have and still get the credit has increased to $3,300. Can i still e file 2011 taxes See Rule 6—Your Investment Income Must Be $3,300 or Less . Can i still e file 2011 taxes Reminders Increased EIC on certain joint returns. Can i still e file 2011 taxes . Can i still e file 2011 taxes  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Can i still e file 2011 taxes As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Can i still e file 2011 taxes When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. Can i still e file 2011 taxes Earned income credit has no effect on certain welfare benefits. Can i still e file 2011 taxes  Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Can i still e file 2011 taxes These programs include the following. Can i still e file 2011 taxes Temporary Assistance for Needy Families (TANF). Can i still e file 2011 taxes Medicaid. Can i still e file 2011 taxes Supplemental security income (SSI). Can i still e file 2011 taxes Supplemental Nutrition Assistance Program (food stamps). Can i still e file 2011 taxes Low-income housing. Can i still e file 2011 taxes In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Can i still e file 2011 taxes Check with your local benefit coordinator to find out if your refund will affect your benefits. Can i still e file 2011 taxes Do not overlook your state credit. Can i still e file 2011 taxes  If you can claim the EIC on your federal income tax return, you may be able to take a similar credit on your state or local income tax return. Can i still e file 2011 taxes For a list of states that offer a state EIC, go to www. Can i still e file 2011 taxes irs. Can i still e file 2011 taxes gov/eitc. Can i still e file 2011 taxes EIC questioned by IRS. Can i still e file 2011 taxes  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Can i still e file 2011 taxes We will tell you what documents to send us. Can i still e file 2011 taxes These may include: birth certificates, school records, etc. Can i still e file 2011 taxes The process of establishing your eligibility will delay your refund. Can i still e file 2011 taxes Spanish version of Publication 596. Can i still e file 2011 taxes  You can order Publicación 596SP, Crédito por Ingreso del Trabajo, from the IRS. Can i still e file 2011 taxes It is a Spanish translation of Publication 596. Can i still e file 2011 taxes See How To Get Tax Help to find out how to order this and other IRS forms and publications. Can i still e file 2011 taxes Photographs of missing children. Can i still e file 2011 taxes  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Can i still e file 2011 taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Can i still e file 2011 taxes 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. Can i still e file 2011 taxes Comments and suggestions. Can i still e file 2011 taxes  We welcome your comments about this publication and your suggestions for future editions. Can i still e file 2011 taxes You can write to us at the following address:  Internal Revenue Service Individual Forms and Publications Branch 1111 Constitution Ave. Can i still e file 2011 taxes NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Can i still e file 2011 taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Can i still e file 2011 taxes You can send your comments from www. Can i still e file 2011 taxes irs. Can i still e file 2011 taxes gov/formspubs/. Can i still e file 2011 taxes Click on “More Information” and then on “Comment on Tax Forms and Publications. Can i still e file 2011 taxes ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Can i still e file 2011 taxes Ordering forms and publications. Can i still e file 2011 taxes  Visit www. Can i still e file 2011 taxes irs. Can i still e file 2011 taxes gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Can i still e file 2011 taxes  Internal Revenue Service 1201 N. Can i still e file 2011 taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Can i still e file 2011 taxes  If you have a tax question, check the information available on IRS. Can i still e file 2011 taxes gov or call 1-800-829-1040. Can i still e file 2011 taxes We cannot answer tax questions sent to either of the above addresses. Can i still e file 2011 taxes Prev  Up  Next   Home   More Online Publications
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Questions and Answers on 501(c) Organizations

May 15, 2013

The IRS has received a variety of questions related to the exempt organization issues recently raised. Here are some basics on the issue.

1. What are the issues raised in the recent Treasury Inspector General for Tax Administration (“TIGTA”) report?

The issues relate to the application process for organizations seeking tax-exempt status. Part of the IRS’s responsibility is to review applications of organizations seeking tax-exempt status. Section 501(c)(3) organizations are required to get IRS approval. Others, including section 501(c)(4) organizations, are not required to get IRS approval, but often seek it.

2. Do the issues raised in the recent report relate to audits/ examinations?

No, the issues relate to the approval process of organizations that applied to the IRS for recognition of tax-exempt status. 

3. What does the IRS look for in the approval process? 

The IRS’s role is to determine whether organization meets the legal requirements for tax-exempt status. One requirement relates to the amount of political campaign intervention (“political activity”) that tax-exempt organizations may engage in. Section 501(c)(3) organizations are prohibited from engaging in any political activity. Other organizations, including section 501(c)(4) organizations, may only engage in a limited amount of political activity. 

4. Where does an organization send its application for tax-exemption?

All applications are sent to the IRS Determinations Office in Cincinnati. This office receives approximately 70,000 applications for tax-exempt status of all kinds each year. This includes applications from section 501(c)(3) and section 501(c)(4) organizations. This office, which includes fewer than 200 people working directly on applications, is primarily responsible for working determination applications. Determinations staff may consult with tax law specialists in Washington on how the law applies to their case. 

5. Has the IRS seen an increase in the number of applications in which the organization is potentially engaged in political activity?

Yes, the IRS has seen an increase in the number of section 501(c)(4) applications in general. The number of applications has more than doubled in recent years. In addition, the IRS has seen an increase in the number of tax-exempt organization applications in which the organization is potentially engaged in political activity. This includes both section 501(c)(3) and section 501(c)(4) organizations.

6. How did the IRS handle the increase in the number of applications from organizations that appeared to be engaged in political activity?

As done in the past in other situations, such as credit counseling and down payment assistance), the IRS selected cases using identified criteria so that cases needing further review would be worked consistently. This means that cases meeting the selection criteria were centralized and assigned to designated employees developing expertise in the area so that they could be worked in a fair and consistent manner. 

7. How are decisions made regarding what cases should be centralized in this area?

Cases are selected for centralization if there are indications in the application that the organization may engage in political campaign intervention, lobbying, or advocacy. This was done to ensure that the legal requirements related to these activities are applied in a fair and consistent manner. The set of criteria was revised at a later point in order to avoid centralizing pure lobbying organizations that did not require follow-on development. During certain periods (August 2010 to July 2011 and January 2012 to June 2012), specific names, terms and policies (such as Tea Party and Patriot) were inappropriately used as criteria in determining which cases should be centralized. However, case selection during these periods was not limited to these criteria. 

8. What cases were centralized?

The TIGTA report reflects that 300 cases were centralized. Approximately 70 of those cases included the name Tea Party. The remaining cases included organizations of all political views. The current number of centralized cases is approximately 470.

9. Why did IRS employees look at Tea Party organizations?

IRS employees had seen cases of organizations with the name Tea Party in which political activity was an issue that needed to be reviewed for compliance with legal requirements. Because of the increased inventory of applications, this inappropriate criterion was used as a shortcut to centralize similar cases.

10. Would organizations with Tea Party in the name have been centralized if only appropriate selection criteria had been used?

Yes, in most cases the organization would have been centralized based on the information included in the application. The IRS should have focused on this information instead of using a shortcut.

11. Were centralized cases worked differently depending on which selection criteria was used?

No, centralized cases were not worked differently depending on which selection criteria was used.

12. Did mistakes occur in working the centralized cases?

Yes. Applicants whose cases were centralized unfortunately experienced inappropriate delays and over-expansive information requests in some cases. This was caused by ineffective processes and not related to the selection criteria used for the centralization of a case.

13. Is there any evidence of political bias in selecting cases for centralization or in working those cases?

The TIGTA report included no findings of political bias. In addition, the IRS has found no indication of political bias. 

14. How many centralized applications have been approved?

Since centralization, more than 175 applications have been approved to date. As with all applications for tax-exempt status that are approved, the names of organizations whose applications have been approved are publicly available. 

Page Last Reviewed or Updated: 04-Sep-2013

The Can I Still E File 2011 Taxes

Can i still e file 2011 taxes 1. Can i still e file 2011 taxes   Canceled Debts Table of Contents General RulesForm 1099-C Discounts and loan modifications Sales or other dispositions (such as foreclosures and repossessions) Abandonments Stockholder debt This chapter discusses the tax treatment of canceled debts. Can i still e file 2011 taxes General Rules Generally, if a debt for which you are personally liable is forgiven or discharged for less than the full amount owed, the debt is considered canceled in whatever amount it remained unpaid. Can i still e file 2011 taxes There are exceptions to this rule, discussed under Exceptions , later. Can i still e file 2011 taxes Generally, you must include the canceled debt in your income. Can i still e file 2011 taxes However, you may be able to exclude the canceled debt. Can i still e file 2011 taxes See Exclusions , later. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes John owed $1,000 to Mary. Can i still e file 2011 taxes Mary agreed to accept and John paid $400 in satisfaction of the entire debt. Can i still e file 2011 taxes John has canceled debt of $600. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes Margaret owed $1,000 to Henry. Can i still e file 2011 taxes Henry and Margaret agreed that Margaret would provide Henry with services (instead of money) in full satisfaction of the debt. Can i still e file 2011 taxes Margaret does not have canceled debt. Can i still e file 2011 taxes Instead, she has income from services. Can i still e file 2011 taxes A debt includes any indebtedness: For which you are liable, or Subject to which you hold property. Can i still e file 2011 taxes Debt for which you are personally liable is recourse debt. Can i still e file 2011 taxes All other debt is nonrecourse debt. Can i still e file 2011 taxes If you are not personally liable for the debt, you do not have ordinary income from the cancellation of debt unless you retain the collateral and either: The lender offers a discount for the early payment of the debt, or The lender agrees to a loan modification that results in the reduction of the principal balance of the debt. Can i still e file 2011 taxes See Discounts and loan modifications , later. Can i still e file 2011 taxes However, upon the disposition of the property securing a nonrecourse debt, the amount realized includes the entire unpaid amount of the debt, not just the FMV of the property. Can i still e file 2011 taxes As a result, you may realize a gain or loss if the outstanding debt immediately before the disposition is more or less than your adjusted basis in the property. Can i still e file 2011 taxes For more details on figuring your gain or loss, see chapter 2 of this publication or see Publication 544. Can i still e file 2011 taxes There are several exceptions and exclusions that may result in part or all of a canceled debt being nontaxable. Can i still e file 2011 taxes See Exceptions and Exclusions, later. Can i still e file 2011 taxes You must report any taxable canceled debt as ordinary income on: Form 1040 or Form 1040NR, line 21, if the debt is a nonbusiness debt; Schedule C (Form 1040), line 6 (or Schedule C-EZ (Form 1040), line 1), if the debt is related to a nonfarm sole proprietorship; Schedule E (Form 1040), line 3, if the debt is related to nonfarm rental of real property; Form 4835, line 6, if the debt is related to a farm rental activity for which you use Form 4835 to report farm rental income based on crops or livestock produced by a tenant; or Schedule F (Form 1040), line 8, if the debt is farm debt and you are a farmer. Can i still e file 2011 taxes Form 1099-C If you receive a Form 1099-C, that means an applicable entity has reported an identifiable event to the IRS regarding a debt you owe. Can i still e file 2011 taxes The identifiable event may be an actual cancellation of the debt or it may be an event the applicable entity is required, solely for purposes of reporting to the IRS, to treat as a cancellation of debt. Can i still e file 2011 taxes For information on the reasons an applicable entity files Form 1099-C, see Identifiable event codes, later. Can i still e file 2011 taxes Unless you meet one of the exceptions or exclusions discussed later, this canceled debt is ordinary income and must be reported on the appropriate form discussed above. Can i still e file 2011 taxes An applicable entity includes: A federal government agency, A financial institution, A credit union, and Any organization a significant trade or business of which is lending money. Can i still e file 2011 taxes Identifiable event codes. Can i still e file 2011 taxes    Box 6 of Form 1099-C should indicate the reason the creditor filed this form. Can i still e file 2011 taxes The codes shown in box 6 are explained below. Can i still e file 2011 taxes Also see the chart after the explanation for a quick reference guide for the codes used in Box 6. Can i still e file 2011 taxes Note. Can i still e file 2011 taxes Codes A through G and I identify specific occurrences resulting from an actual discharge of indebtedness. Can i still e file 2011 taxes However, Code H, Expiration of nonpayment testing period, does not necessarily identify an actual discharge of indebtedness. Can i still e file 2011 taxes Code A — Bankruptcy. Can i still e file 2011 taxes Code A is used to identify cancellation of debt as a result of a title 11 bankruptcy case. Can i still e file 2011 taxes See Bankruptcy , later. Can i still e file 2011 taxes Code B — Other judicial debt relief. Can i still e file 2011 taxes Code B is used to identify cancellation of debt as a result of a receivership, foreclosure, or similar federal or state court proceeding other than bankruptcy. Can i still e file 2011 taxes Code C — Statute of limitations or expiration of deficiency period. Can i still e file 2011 taxes Code C is used to identify cancellation of debt either when the statute of limitations for collecting the debt expires or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. Can i still e file 2011 taxes In the case of the expiration of a statute of limitations, an identifiable event occurs only if and when your affirmative defense of the statute of limitations is upheld in a final judgment or decision in a judicial proceeding, and the period for appealing the judgment or decision has expired. Can i still e file 2011 taxes Code D — Foreclosure election. Can i still e file 2011 taxes Code D is used to identify cancellation of debt when the creditor elects foreclosure remedies that statutorily end or bar the creditor's right to pursue collection of the debt. Can i still e file 2011 taxes This event applies to a mortgage lender or holder who is barred from pursuing debt collection after a power of sale in the mortgage or deed of trust is exercised. Can i still e file 2011 taxes Code E — Debt relief from probate or similar proceeding. Can i still e file 2011 taxes Code E is used to identify cancellation of debt as a result of a probate court or similar legal proceeding. Can i still e file 2011 taxes Code F — By agreement. Can i still e file 2011 taxes Code F is used to identify cancellation of debt as a result of an agreement between the creditor and the debtor to cancel the debt at less than full consideration. Can i still e file 2011 taxes Code G — Decision or policy to discontinue collection. Can i still e file 2011 taxes Code G is used to identify cancellation of debt as a result of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. Can i still e file 2011 taxes For purposes of this identifiable event, a defined policy includes both a written policy and the creditor's established business practice. Can i still e file 2011 taxes Code H — Expiration of nonpayment testing period. Can i still e file 2011 taxes Code H is used to indicate that the creditor has not received a payment on the debt during a testing period ending on December 31, 2013. Can i still e file 2011 taxes The testing period is a 36-month period increased by the number of months the creditor was prevented from engaging in collection activity by a stay in bankruptcy or similar bar under state or local law. Can i still e file 2011 taxes This identifiable event applies only for a creditor that is a financial institution or credit union (and certain of their subsidiaries), the Federal Deposit Insurance Corporation (FDIC), Resolution Trust Corporation (RTC), National Credit Union Administration (NCUA), and other Federal executive agencies. Can i still e file 2011 taxes Expiration of the nonpayment testing period does not necessarily result from an actual discharge of indebtedness. Can i still e file 2011 taxes Code I — Other actual discharge before identifiable event. Can i still e file 2011 taxes Code I is used to identify an actual cancellation of debt that occurs before any of the identifiable events described in codes A through H. Can i still e file 2011 taxes Form 1099-C Reference Guide for Box 6 Identifiable Event Codes A Bankruptcy B Other judicial debt relief C Statute of limitations or expiration of deficiency period D Foreclosure election E Debt relief from probate or similar proceeding F By agreement G Decision or policy to discontinue collection H Expiration of nonpayment testing period I Other actual discharge before identifiable event Even if you did not receive a Form 1099-C, you must report canceled debt as gross income on your tax return unless one of the exceptions or exclusions described later applies. Can i still e file 2011 taxes Amount of canceled debt. Can i still e file 2011 taxes    The amount in box 2 of Form 1099-C may represent some or all of the debt that has been canceled or treated as canceled. Can i still e file 2011 taxes The amount in box 2 will include principal and may include interest and other nonprincipal amounts (such as fees or penalties). Can i still e file 2011 taxes Unless you meet one of the exceptions or exclusions discussed later, the amount of the debt that has been canceled is ordinary income and must be reported on the appropriate form as discussed earlier. Can i still e file 2011 taxes Interest included in canceled debt. Can i still e file 2011 taxes    If any interest is included in the amount of canceled debt in box 2, it will be shown in box 3. Can i still e file 2011 taxes Whether the interest portion of the canceled debt must be included in your income depends on whether the interest would be deductible if you paid it. Can i still e file 2011 taxes See Deductible Debt under Exceptions, later. Can i still e file 2011 taxes Persons who each receive a Form 1099-C showing the full amount of debt. Can i still e file 2011 taxes    If you and another person were jointly and severally liable for a canceled debt, each of you may get a Form 1099-C showing the entire amount of the canceled debt. Can i still e file 2011 taxes However, you may not have to report that entire amount as income. Can i still e file 2011 taxes The amount, if any, you must report depends on all the facts and circumstances, including: State law, The amount of debt proceeds each person received, How much of any interest deduction from the debt was claimed by each person, How much of the basis of any co-owned property bought with the debt proceeds was allocated to each co-owner, and Whether the canceled debt qualifies for any of the exceptions or exclusions described in this publication. Can i still e file 2011 taxes See Example 3 under Insolvency, later. Can i still e file 2011 taxes Discounts and loan modifications If a lender discounts (reduces) the principal balance of a loan because you pay it off early, or agrees to a loan modification (a “workout”) that includes a reduction in the principal balance of a loan, the amount of the discount or the amount of principal reduction is canceled debt. Can i still e file 2011 taxes However, if the debt is nonrecourse and you did not retain the collateral, you do not have cancellation of the debt income. Can i still e file 2011 taxes The amount of the canceled debt must be included in income unless one of the exceptions or exclusions described later applies. Can i still e file 2011 taxes For more details, see Exceptions and Exclusions, later. Can i still e file 2011 taxes Sales or other dispositions (such as foreclosures and repossessions) Recourse debt. Can i still e file 2011 taxes   If you owned property that was subject to a recourse debt in excess of the FMV of the property, the lender's foreclosure or repossession of the property is treated as a sale or disposition of the property by you and may result in your realization of gain or loss. Can i still e file 2011 taxes The gain or loss on the disposition of the property is measured by the difference between the FMV of the property at the time of the disposition and your adjusted basis (usually your cost) in the property. Can i still e file 2011 taxes The character of the gain or loss (such as ordinary or capital) is determined by the character of the property. Can i still e file 2011 taxes If the lender forgives all or part of the amount of the debt in excess of the FMV of the property, the cancellation of the excess debt may result in ordinary income. Can i still e file 2011 taxes The ordinary income from the cancellation of debt (the excess of the canceled debt over the FMV of the property) must be included in your gross income reported on your tax return unless one of the exceptions or exclusions described later applies. Can i still e file 2011 taxes For more details, see Exceptions and Exclusions, later. Can i still e file 2011 taxes Nonrecourse debt. Can i still e file 2011 taxes   If you owned property that was subject to a nonrecourse debt in excess of the FMV of the property, the lender's foreclosure on the property does not result in ordinary income from the cancellation of debt. Can i still e file 2011 taxes The entire amount of the nonrecourse debt is treated as an amount realized on the disposition of the property. Can i still e file 2011 taxes The gain or loss on the disposition of the property is measured by the difference between the total amount realized (the entire amount of the nonrecourse debt plus the amount of cash and the FMV of any property received) and your adjusted basis in the property. Can i still e file 2011 taxes The character of the gain or loss is determined by the character of the property. Can i still e file 2011 taxes More information. Can i still e file 2011 taxes    See Publications 523, 544, and 551, and chapter 2 of this publication for more details. Can i still e file 2011 taxes Abandonments Recourse debt. Can i still e file 2011 taxes   If you abandon property that secures a debt for which you are personally liable (recourse debt) and the debt is canceled, you will realize ordinary income equal to the canceled debt. Can i still e file 2011 taxes You must report this income on your tax return unless one of the exceptions or exclusions described later applies. Can i still e file 2011 taxes For more details, see Exceptions and Exclusions, later. Can i still e file 2011 taxes This income is separate from any amount realized from the abandonment of the property. Can i still e file 2011 taxes For more details, see chapter 3. Can i still e file 2011 taxes Nonrecourse debt. Can i still e file 2011 taxes   If you abandon property that secures a debt for which you are not personally liable (nonrecourse debt), you may realize gain or loss but will not have cancellation of indebtedness income. Can i still e file 2011 taxes Stockholder debt If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution. Can i still e file 2011 taxes For more information, see Publication 542, Corporations. Can i still e file 2011 taxes Prev  Up  Next   Home   More Online Publications