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Example Of 1040x Amended Tax Returns For 2013

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Example Of 1040x Amended Tax Returns For 2013

Example of 1040x amended tax returns for 2013 9. Example of 1040x amended tax returns for 2013   Depletion Table of Contents Introduction Topics - This chapter discusses: Who Can Claim Depletion? Mineral PropertyCost Depletion Percentage Depletion Oil and Gas Wells Mines and Geothermal Deposits Lessor's Gross Income TimberTimber units. Example of 1040x amended tax returns for 2013 Depletion unit. Example of 1040x amended tax returns for 2013 Introduction Depletion is the using up of natural resources by mining, drilling, quarrying stone, or cutting timber. Example of 1040x amended tax returns for 2013 The depletion deduction allows an owner or operator to account for the reduction of a product's reserves. Example of 1040x amended tax returns for 2013 There are two ways of figuring depletion: cost depletion and percentage depletion. Example of 1040x amended tax returns for 2013 For mineral property, you generally must use the method that gives you the larger deduction. Example of 1040x amended tax returns for 2013 For standing timber, you must use cost depletion. Example of 1040x amended tax returns for 2013 Topics - This chapter discusses: Who can claim depletion Mineral property Timber Who Can Claim Depletion? If you have an economic interest in mineral property or standing timber, you can take a deduction for depletion. Example of 1040x amended tax returns for 2013 More than one person can have an economic interest in the same mineral deposit or timber. Example of 1040x amended tax returns for 2013 In the case of leased property, the depletion deduction is divided between the lessor and the lessee. Example of 1040x amended tax returns for 2013 You have an economic interest if both the following apply. Example of 1040x amended tax returns for 2013 You have acquired by investment any interest in mineral deposits or standing timber. Example of 1040x amended tax returns for 2013 You have a legal right to income from the extraction of the mineral or cutting of the timber to which you must look for a return of your capital investment. Example of 1040x amended tax returns for 2013 A contractual relationship that allows you an economic or monetary advantage from products of the mineral deposit or standing timber is not, in itself, an economic interest. Example of 1040x amended tax returns for 2013 A production payment carved out of, or retained on the sale of, mineral property is not an economic interest. Example of 1040x amended tax returns for 2013 Individuals, corporations, estates, and trusts who claim depletion deductions may be liable for alternative minimum tax. Example of 1040x amended tax returns for 2013 Basis adjustment for depletion. Example of 1040x amended tax returns for 2013   You must reduce the basis of your property by the depletion allowed or allowable, whichever is greater. Example of 1040x amended tax returns for 2013 Mineral Property Mineral property includes oil and gas wells, mines, and other natural deposits (including geothermal deposits). Example of 1040x amended tax returns for 2013 For this purpose, the term “property” means each separate interest you own in each mineral deposit in each separate tract or parcel of land. Example of 1040x amended tax returns for 2013 You can treat two or more separate interests as one property or as separate properties. Example of 1040x amended tax returns for 2013 See section 614 of the Internal Revenue Code and the related regulations for rules on how to treat separate mineral interests. Example of 1040x amended tax returns for 2013 There are two ways of figuring depletion on mineral property. Example of 1040x amended tax returns for 2013 Cost depletion. Example of 1040x amended tax returns for 2013 Percentage depletion. Example of 1040x amended tax returns for 2013 Generally, you must use the method that gives you the larger deduction. Example of 1040x amended tax returns for 2013 However, unless you are an independent producer or royalty owner, you generally cannot use percentage depletion for oil and gas wells. Example of 1040x amended tax returns for 2013 See Oil and Gas Wells , later. Example of 1040x amended tax returns for 2013 Cost Depletion To figure cost depletion you must first determine the following. Example of 1040x amended tax returns for 2013 The property's basis for depletion. Example of 1040x amended tax returns for 2013 The total recoverable units of mineral in the property's natural deposit. Example of 1040x amended tax returns for 2013 The number of units of mineral sold during the tax year. Example of 1040x amended tax returns for 2013 Basis for depletion. Example of 1040x amended tax returns for 2013   To figure the property's basis for depletion, subtract all the following from the property's adjusted basis. Example of 1040x amended tax returns for 2013 Amounts recoverable through: Depreciation deductions, Deferred expenses (including deferred exploration and development costs), and Deductions other than depletion. Example of 1040x amended tax returns for 2013 The residual value of land and improvements at the end of operations. Example of 1040x amended tax returns for 2013 The cost or value of land acquired for purposes other than mineral production. Example of 1040x amended tax returns for 2013 Adjusted basis. Example of 1040x amended tax returns for 2013   The adjusted basis of your property is your original cost or other basis, plus certain additions and improvements, and minus certain deductions such as depletion allowed or allowable and casualty losses. Example of 1040x amended tax returns for 2013 Your adjusted basis can never be less than zero. Example of 1040x amended tax returns for 2013 See Publication 551, Basis of Assets, for more information on adjusted basis. Example of 1040x amended tax returns for 2013 Total recoverable units. Example of 1040x amended tax returns for 2013   The total recoverable units is the sum of the following. Example of 1040x amended tax returns for 2013 The number of units of mineral remaining at the end of the year (including units recovered but not sold). Example of 1040x amended tax returns for 2013 The number of units of mineral sold during the tax year (determined under your method of accounting, as explained next). Example of 1040x amended tax returns for 2013   You must estimate or determine recoverable units (tons, pounds, ounces, barrels, thousands of cubic feet, or other measure) of mineral products using the current industry method and the most accurate and reliable information you can obtain. Example of 1040x amended tax returns for 2013 You must include ores and minerals that are developed, in sight, blocked out, or assured. Example of 1040x amended tax returns for 2013 You must also include probable or prospective ores or minerals that are believed to exist based on good evidence. Example of 1040x amended tax returns for 2013 But see Elective safe harbor for owners of oil and gas property , later. Example of 1040x amended tax returns for 2013 Number of units sold. Example of 1040x amended tax returns for 2013   You determine the number of units sold during the tax year based on your method of accounting. Example of 1040x amended tax returns for 2013 Use the following table to make this determination. Example of 1040x amended tax returns for 2013    IF you  use . Example of 1040x amended tax returns for 2013 . Example of 1040x amended tax returns for 2013 . Example of 1040x amended tax returns for 2013 THEN the units sold during the year are . Example of 1040x amended tax returns for 2013 . Example of 1040x amended tax returns for 2013 . Example of 1040x amended tax returns for 2013 The cash method of accounting The units sold for which you receive payment during the tax year (regardless of the year of sale). Example of 1040x amended tax returns for 2013 An accrual method of accounting The units sold based on your inventories and method of accounting for inventory. Example of 1040x amended tax returns for 2013   The number of units sold during the tax year does not include any for which depletion deductions were allowed or allowable in earlier years. Example of 1040x amended tax returns for 2013 Figuring the cost depletion deduction. Example of 1040x amended tax returns for 2013   Once you have figured your property's basis for depletion, the total recoverable units, and the number of units sold during the tax year, you can figure your cost depletion deduction by taking the following steps. Example of 1040x amended tax returns for 2013 Step Action Result 1 Divide your property's basis for depletion by total recoverable units. Example of 1040x amended tax returns for 2013 Rate per unit. Example of 1040x amended tax returns for 2013 2 Multiply the rate per unit by units sold during the tax year. Example of 1040x amended tax returns for 2013 Cost depletion deduction. Example of 1040x amended tax returns for 2013 You must keep accounts for the depletion of each property and adjust these accounts each year for units sold and depletion claimed. Example of 1040x amended tax returns for 2013 Elective safe harbor for owners of oil and gas property. Example of 1040x amended tax returns for 2013   Instead of using the method described earlier to determine the total recoverable units, you can use an elective safe harbor. Example of 1040x amended tax returns for 2013 If you choose the elective safe harbor, the total recoverable units equal 105% of a property's proven reserves (both developed and undeveloped). Example of 1040x amended tax returns for 2013 For details, see Revenue Procedure 2004-19 on page 563 of Internal Revenue Bulletin 2004-10, available at www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/pub/irs-irbs/irb04-10. Example of 1040x amended tax returns for 2013 pdf. Example of 1040x amended tax returns for 2013   To make the election, attach a statement to your timely filed (including extensions) original return for the first tax year for which the safe harbor is elected. Example of 1040x amended tax returns for 2013 The statement must indicate that you are electing the safe harbor provided by Revenue Procedure 2004-19. Example of 1040x amended tax returns for 2013 The election, if made, is effective for the tax year in which it is made and all later years. Example of 1040x amended tax returns for 2013 It cannot be revoked for the tax year in which it is elected, but may be revoked in a later year. Example of 1040x amended tax returns for 2013 Once revoked, it cannot be re-elected for the next 5 years. Example of 1040x amended tax returns for 2013 Percentage Depletion To figure percentage depletion, you multiply a certain percentage, specified for each mineral, by your gross income from the property during the tax year. Example of 1040x amended tax returns for 2013 The rates to be used and other rules for oil and gas wells are discussed later under Independent Producers and Royalty Owners and under Natural Gas Wells . Example of 1040x amended tax returns for 2013 Rates and other rules for percentage depletion of other specific minerals are found later in Mines and Geothermal Deposits . Example of 1040x amended tax returns for 2013 Gross income. Example of 1040x amended tax returns for 2013   When figuring percentage depletion, subtract from your gross income from the property the following amounts. Example of 1040x amended tax returns for 2013 Any rents or royalties you paid or incurred for the property. Example of 1040x amended tax returns for 2013 The part of any bonus you paid for a lease on the property allocable to the product sold (or that otherwise gives rise to gross income) for the tax year. Example of 1040x amended tax returns for 2013 A bonus payment includes amounts you paid as a lessee to satisfy a production payment retained by the lessor. Example of 1040x amended tax returns for 2013   Use the following fraction to figure the part of the bonus you must subtract. Example of 1040x amended tax returns for 2013 No. Example of 1040x amended tax returns for 2013 of units sold in the tax year Recoverable units from the property × Bonus Payments For oil and gas wells and geothermal deposits, more information about the definition of gross income from the property is under Oil and Gas Wells , later. Example of 1040x amended tax returns for 2013 For other property, more information about the definition of gross income from the property is under Mines and Geothermal Deposits , later. Example of 1040x amended tax returns for 2013 Taxable income limit. Example of 1040x amended tax returns for 2013   The percentage depletion deduction generally cannot be more than 50% (100% for oil and gas property) of your taxable income from the property figured without the depletion deduction and the domestic production activities deduction. Example of 1040x amended tax returns for 2013   Taxable income from the property means gross income from the property minus all allowable deductions (except any deduction for depletion or domestic production activities) attributable to mining processes, including mining transportation. Example of 1040x amended tax returns for 2013 These deductible items include, but are not limited to, the following. Example of 1040x amended tax returns for 2013 Operating expenses. Example of 1040x amended tax returns for 2013 Certain selling expenses. Example of 1040x amended tax returns for 2013 Administrative and financial overhead. Example of 1040x amended tax returns for 2013 Depreciation. Example of 1040x amended tax returns for 2013 Intangible drilling and development costs. Example of 1040x amended tax returns for 2013 Exploration and development expenditures. Example of 1040x amended tax returns for 2013 Deductible taxes (see chapter 5), but not taxes that you capitalize or take as a credit. Example of 1040x amended tax returns for 2013 Losses sustained. Example of 1040x amended tax returns for 2013   The following rules apply when figuring your taxable income from the property for purposes of the taxable income limit. Example of 1040x amended tax returns for 2013 Do not deduct any net operating loss deduction from the gross income from the property. Example of 1040x amended tax returns for 2013 Corporations do not deduct charitable contributions from the gross income from the property. Example of 1040x amended tax returns for 2013 If, during the year, you dispose of an item of section 1245 property that was used in connection with mineral property, reduce any allowable deduction for mining expenses by the part of any gain you must report as ordinary income that is allocable to the mineral property. Example of 1040x amended tax returns for 2013 See section 1. Example of 1040x amended tax returns for 2013 613-5(b)(1) of the regulations for information on how to figure the ordinary gain allocable to the property. Example of 1040x amended tax returns for 2013 Oil and Gas Wells You cannot claim percentage depletion for an oil or gas well unless at least one of the following applies. Example of 1040x amended tax returns for 2013 You are either an independent producer or a royalty owner. Example of 1040x amended tax returns for 2013 The well produces natural gas that is either sold under a fixed contract or produced from geopressured brine. Example of 1040x amended tax returns for 2013 If you are an independent producer or royalty owner, see Independent Producers and Royalty Owners , next. Example of 1040x amended tax returns for 2013 For information on the depletion deduction for wells that produce natural gas that is either sold under a fixed contract or produced from geopressured brine, see Natural Gas Wells , later. Example of 1040x amended tax returns for 2013 Independent Producers and Royalty Owners If you are an independent producer or royalty owner, you figure percentage depletion using a rate of 15% of the gross income from the property based on your average daily production of domestic crude oil or domestic natural gas up to your depletable oil or natural gas quantity. Example of 1040x amended tax returns for 2013 However, certain refiners, as explained next, and certain retailers and transferees of proven oil and gas properties, as explained next, cannot claim percentage depletion. Example of 1040x amended tax returns for 2013 For information on figuring the deduction, see Figuring percentage depletion , later. Example of 1040x amended tax returns for 2013 Refiners who cannot claim percentage depletion. Example of 1040x amended tax returns for 2013   You cannot claim percentage depletion if you or a related person refine crude oil and you and the related person refined more than 75,000 barrels on any day during the tax year based on average (rather than actual) daily refinery runs for the tax year. Example of 1040x amended tax returns for 2013 The average daily refinery run is computed by dividing total refinery runs for the tax year by the total number of days in the tax year. Example of 1040x amended tax returns for 2013 Related person. Example of 1040x amended tax returns for 2013   You and another person are related persons if either of you holds a significant ownership interest in the other person or if a third person holds a significant ownership interest in both of you. Example of 1040x amended tax returns for 2013 For example, a corporation, partnership, estate, or trust and anyone who holds a significant ownership interest in it are related persons. Example of 1040x amended tax returns for 2013 A partnership and a trust are related persons if one person holds a significant ownership interest in each of them. Example of 1040x amended tax returns for 2013 For purposes of the related person rules, significant ownership interest means direct or indirect ownership of 5% or more in any one of the following. Example of 1040x amended tax returns for 2013 The value of the outstanding stock of a corporation. Example of 1040x amended tax returns for 2013 The interest in the profits or capital of a partnership. Example of 1040x amended tax returns for 2013 The beneficial interests in an estate or trust. Example of 1040x amended tax returns for 2013 Any interest owned by or for a corporation, partnership, trust, or estate is considered to be owned directly both by itself and proportionately by its shareholders, partners, or beneficiaries. Example of 1040x amended tax returns for 2013 Retailers who cannot claim percentage depletion. Example of 1040x amended tax returns for 2013   You cannot claim percentage depletion if both the following apply. Example of 1040x amended tax returns for 2013 You sell oil or natural gas or their by-products directly or through a related person in any of the following situations. Example of 1040x amended tax returns for 2013 Through a retail outlet operated by you or a related person. Example of 1040x amended tax returns for 2013 To any person who is required under an agreement with you or a related person to use a trademark, trade name, or service mark or name owned by you or a related person in marketing or distributing oil, natural gas, or their by-products. Example of 1040x amended tax returns for 2013 To any person given authority under an agreement with you or a related person to occupy any retail outlet owned, leased, or controlled by you or a related person. Example of 1040x amended tax returns for 2013 The combined gross receipts from sales (not counting resales) of oil, natural gas, or their by-products by all retail outlets taken into account in (1) are more than $5 million for the tax year. Example of 1040x amended tax returns for 2013   For the purpose of determining if this rule applies, do not count the following. Example of 1040x amended tax returns for 2013 Bulk sales (sales in very large quantities) of oil or natural gas to commercial or industrial users. Example of 1040x amended tax returns for 2013 Bulk sales of aviation fuels to the Department of Defense. Example of 1040x amended tax returns for 2013 Sales of oil or natural gas or their by-products outside the United States if none of your domestic production or that of a related person is exported during the tax year or the prior tax year. Example of 1040x amended tax returns for 2013 Related person. Example of 1040x amended tax returns for 2013   To determine if you and another person are related persons, see Related person under Refiners who cannot claim percentage depletion, earlier. Example of 1040x amended tax returns for 2013 Sales through a related person. Example of 1040x amended tax returns for 2013   You are considered to be selling through a related person if any sale by the related person produces gross income from which you may benefit because of your direct or indirect ownership interest in the person. Example of 1040x amended tax returns for 2013   You are not considered to be selling through a related person who is a retailer if all the following apply. Example of 1040x amended tax returns for 2013 You do not have a significant ownership interest in the retailer. Example of 1040x amended tax returns for 2013 You sell your production to persons who are not related to either you or the retailer. Example of 1040x amended tax returns for 2013 The retailer does not buy oil or natural gas from your customers or persons related to your customers. Example of 1040x amended tax returns for 2013 There are no arrangements for the retailer to acquire oil or natural gas you produced for resale or made available for purchase by the retailer. Example of 1040x amended tax returns for 2013 Neither you nor the retailer knows of or controls the final disposition of the oil or natural gas you sold or the original source of the petroleum products the retailer acquired for resale. Example of 1040x amended tax returns for 2013 Transferees who cannot claim percentage depletion. Example of 1040x amended tax returns for 2013   You cannot claim percentage depletion if you received your interest in a proven oil or gas property by transfer after 1974 and before October 12, 1990. Example of 1040x amended tax returns for 2013 For a definition of the term “transfer,” see section 1. Example of 1040x amended tax returns for 2013 613A-7(n) of the regulations. Example of 1040x amended tax returns for 2013 For a definition of the term “interest in proven oil or gas property,” see section 1. Example of 1040x amended tax returns for 2013 613A-7(p) of the regulations. Example of 1040x amended tax returns for 2013 Figuring percentage depletion. Example of 1040x amended tax returns for 2013   Generally, as an independent producer or royalty owner, you figure your percentage depletion by computing your average daily production of domestic oil or gas and comparing it to your depletable oil or gas quantity. Example of 1040x amended tax returns for 2013 If your average daily production does not exceed your depletable oil or gas quantity, you figure your percentage depletion by multiplying the gross income from the oil or gas property (defined later) by 15%. Example of 1040x amended tax returns for 2013 If your average daily production of domestic oil or gas exceeds your depletable oil or gas quantity, you must make an allocation as explained later under Average daily production. Example of 1040x amended tax returns for 2013   In addition, there is a limit on the percentage depletion deduction. Example of 1040x amended tax returns for 2013 See Taxable income limit , later. Example of 1040x amended tax returns for 2013 Average daily production. Example of 1040x amended tax returns for 2013   Figure your average daily production by dividing your total domestic production of oil or gas for the tax year by the number of days in your tax year. Example of 1040x amended tax returns for 2013 Partial interest. Example of 1040x amended tax returns for 2013   If you have a partial interest in the production from a property, figure your share of the production by multiplying total production from the property by your percentage of interest in the revenues from the property. Example of 1040x amended tax returns for 2013   You have a partial interest in the production from a property if you have a net profits interest in the property. Example of 1040x amended tax returns for 2013 To figure the share of production for your net profits interest, you must first determine your percentage participation (as measured by the net profits) in the gross revenue from the property. Example of 1040x amended tax returns for 2013 To figure this percentage, you divide the income you receive for your net profits interest by the gross revenue from the property. Example of 1040x amended tax returns for 2013 Then multiply the total production from the property by your percentage participation to figure your share of the production. Example of 1040x amended tax returns for 2013 Example. Example of 1040x amended tax returns for 2013 Javier Robles owns oil property in which Pablo Olmos owns a 20% net profits interest. Example of 1040x amended tax returns for 2013 During the year, the property produced 10,000 barrels of oil, which Javier sold for $200,000. Example of 1040x amended tax returns for 2013 Javier had expenses of $90,000 attributable to the property. Example of 1040x amended tax returns for 2013 The property generated a net profit of $110,000 ($200,000 − $90,000). Example of 1040x amended tax returns for 2013 Pablo received income of $22,000 ($110,000 × . Example of 1040x amended tax returns for 2013 20) for his net profits interest. Example of 1040x amended tax returns for 2013 Pablo determined his percentage participation to be 11% by dividing $22,000 (the income he received) by $200,000 (the gross revenue from the property). Example of 1040x amended tax returns for 2013 Pablo determined his share of the oil production to be 1,100 barrels (10,000 barrels × 11%). Example of 1040x amended tax returns for 2013 Depletable oil or natural gas quantity. Example of 1040x amended tax returns for 2013   Generally, your depletable oil quantity is 1,000 barrels. Example of 1040x amended tax returns for 2013 Your depletable natural gas quantity is 6,000 cubic feet multiplied by the number of barrels of your depletable oil quantity that you choose to apply. Example of 1040x amended tax returns for 2013 If you claim depletion on both oil and natural gas, you must reduce your depletable oil quantity (1,000 barrels) by the number of barrels you use to figure your depletable natural gas quantity. Example of 1040x amended tax returns for 2013 Example. Example of 1040x amended tax returns for 2013 You have both oil and natural gas production. Example of 1040x amended tax returns for 2013 To figure your depletable natural gas quantity, you choose to apply 360 barrels of your 1000-barrel depletable oil quantity. Example of 1040x amended tax returns for 2013 Your depletable natural gas quantity is 2. Example of 1040x amended tax returns for 2013 16 million cubic feet of gas (360 × 6000). Example of 1040x amended tax returns for 2013 You must reduce your depletable oil quantity to 640 barrels (1000 − 360). Example of 1040x amended tax returns for 2013 If you have production from marginal wells, see section 613A(c)(6) of the Internal Revenue Code to figure your depletable oil or natural gas quantity. Example of 1040x amended tax returns for 2013 Also, see Notice 2012-50, available at www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/irb/2012–31_IRB/index. Example of 1040x amended tax returns for 2013 html. Example of 1040x amended tax returns for 2013 Business entities and family members. Example of 1040x amended tax returns for 2013   You must allocate the depletable oil or gas quantity among the following related persons in proportion to each entity's or family member's production of domestic oil or gas for the year. Example of 1040x amended tax returns for 2013 Corporations, trusts, and estates if 50% or more of the beneficial interest is owned by the same or related persons (considering only persons that own at least 5% of the beneficial interest). Example of 1040x amended tax returns for 2013 You and your spouse and minor children. Example of 1040x amended tax returns for 2013 A related person is anyone mentioned in the related persons discussion under Nondeductible loss in chapter 2 of Publication 544, except that for purposes of this allocation, item (1) in that discussion includes only an individual, his or her spouse, and minor children. Example of 1040x amended tax returns for 2013 Controlled group of corporations. Example of 1040x amended tax returns for 2013   Members of the same controlled group of corporations are treated as one taxpayer when figuring the depletable oil or natural gas quantity. Example of 1040x amended tax returns for 2013 They share the depletable quantity. Example of 1040x amended tax returns for 2013 A controlled group of corporations is defined in section 1563(a) of the Internal Revenue Code, except that, for this purpose, the stock ownership requirement in that definition is “more than 50%” rather than “at least 80%. Example of 1040x amended tax returns for 2013 ” Gross income from the property. Example of 1040x amended tax returns for 2013   For purposes of percentage depletion, gross income from the property (in the case of oil and gas wells) is the amount you receive from the sale of the oil or gas in the immediate vicinity of the well. Example of 1040x amended tax returns for 2013 If you do not sell the oil or gas on the property, but manufacture or convert it into a refined product before sale or transport it before sale, the gross income from the property is the representative market or field price (RMFP) of the oil or gas, before conversion or transportation. Example of 1040x amended tax returns for 2013   If you sold gas after you removed it from the premises for a price that is lower than the RMFP, determine gross income from the property for percentage depletion purposes without regard to the RMFP. Example of 1040x amended tax returns for 2013   Gross income from the property does not include lease bonuses, advance royalties, or other amounts payable without regard to production from the property. Example of 1040x amended tax returns for 2013 Average daily production exceeds depletable quantities. Example of 1040x amended tax returns for 2013   If your average daily production for the year is more than your depletable oil or natural gas quantity, figure your allowance for depletion for each domestic oil or natural gas property as follows. Example of 1040x amended tax returns for 2013 Figure your average daily production of oil or natural gas for the year. Example of 1040x amended tax returns for 2013 Figure your depletable oil or natural gas quantity for the year. Example of 1040x amended tax returns for 2013 Figure depletion for all oil or natural gas produced from the property using a percentage depletion rate of 15%. Example of 1040x amended tax returns for 2013 Multiply the result figured in (3) by a fraction, the numerator of which is the result figured in (2) and the denominator of which is the result figured in (1). Example of 1040x amended tax returns for 2013 This is your depletion allowance for that property for the year. Example of 1040x amended tax returns for 2013 Taxable income limit. Example of 1040x amended tax returns for 2013   If you are an independent producer or royalty owner of oil and gas, your deduction for percentage depletion is limited to the smaller of the following. Example of 1040x amended tax returns for 2013 100% of your taxable income from the property figured without the deduction for depletion and the deduction for domestic production activities under section 199 of the Internal Revenue Code. Example of 1040x amended tax returns for 2013 For a definition of taxable income from the property, see Taxable income limit , earlier, under Mineral Property. Example of 1040x amended tax returns for 2013 65% of your taxable income from all sources, figured without the depletion allowance, the deduction for domestic production activities, any net operating loss carryback, and any capital loss carryback. Example of 1040x amended tax returns for 2013 You can carry over to the following year any amount you cannot deduct because of the 65%-of-taxable-income limit. Example of 1040x amended tax returns for 2013 Add it to your depletion allowance (before applying any limits) for the following year. Example of 1040x amended tax returns for 2013 Partnerships and S Corporations Generally, each partner or S corporation shareholder, and not the partnership or S corporation, figures the depletion allowance separately. Example of 1040x amended tax returns for 2013 (However, see Electing large partnerships must figure depletion allowance , later. Example of 1040x amended tax returns for 2013 ) Each partner or shareholder must decide whether to use cost or percentage depletion. Example of 1040x amended tax returns for 2013 If a partner or shareholder uses percentage depletion, he or she must apply the 65%-of-taxable-income limit using his or her taxable income from all sources. Example of 1040x amended tax returns for 2013 Partner's or shareholder's adjusted basis. Example of 1040x amended tax returns for 2013   The partnership or S corporation must allocate to each partner or shareholder his or her share of the adjusted basis of each oil or gas property held by the partnership or S corporation. Example of 1040x amended tax returns for 2013 The partnership or S corporation makes the allocation as of the date it acquires the oil or gas property. Example of 1040x amended tax returns for 2013   Each partner's share of the adjusted basis of the oil or gas property generally is figured according to that partner's interest in partnership capital. Example of 1040x amended tax returns for 2013 However, in some cases, it is figured according to the partner's interest in partnership income. Example of 1040x amended tax returns for 2013   The partnership or S corporation adjusts the partner's or shareholder's share of the adjusted basis of the oil and gas property for any capital expenditures made for the property and for any change in partnership or S corporation interests. Example of 1040x amended tax returns for 2013 Recordkeeping. Example of 1040x amended tax returns for 2013 Each partner or shareholder must separately keep records of his or her share of the adjusted basis in each oil and gas property of the partnership or S corporation. Example of 1040x amended tax returns for 2013 The partner or shareholder must reduce his or her adjusted basis by the depletion allowed or allowable on the property each year. Example of 1040x amended tax returns for 2013 The partner or shareholder must use that reduced adjusted basis to figure cost depletion or his or her gain or loss if the partnership or S corporation disposes of the property. Example of 1040x amended tax returns for 2013 Reporting the deduction. Example of 1040x amended tax returns for 2013   Information that you, as a partner or shareholder, use to figure your depletion deduction on oil and gas properties is reported by the partnership or S corporation on Schedule K-1 (Form 1065) or on Schedule K-1 (Form 1120S). Example of 1040x amended tax returns for 2013 Deduct oil and gas depletion for your partnership or S corporation interest on Schedule E (Form 1040). Example of 1040x amended tax returns for 2013 The depletion deducted on Schedule E is included in figuring income or loss from rental real estate or royalty properties. Example of 1040x amended tax returns for 2013 The instructions for Schedule E explain where to report this income or loss and whether you need to file either of the following forms. Example of 1040x amended tax returns for 2013 Form 6198, At-Risk Limitations. Example of 1040x amended tax returns for 2013 Form 8582, Passive Activity Loss Limitations. Example of 1040x amended tax returns for 2013 Electing large partnerships must figure depletion allowance. Example of 1040x amended tax returns for 2013   An electing large partnership, rather than each partner, generally must figure the depletion allowance. Example of 1040x amended tax returns for 2013 The partnership figures the depletion allowance without taking into account the 65-percent-of-taxable-income limit and the depletable oil or natural gas quantity. Example of 1040x amended tax returns for 2013 Also, the adjusted basis of a partner's interest in the partnership is not affected by the depletion allowance. Example of 1040x amended tax returns for 2013   An electing large partnership is one that meets both the following requirements. Example of 1040x amended tax returns for 2013 The partnership had 100 or more partners in the preceding year. Example of 1040x amended tax returns for 2013 The partnership chooses to be an electing large partnership. Example of 1040x amended tax returns for 2013 Disqualified persons. Example of 1040x amended tax returns for 2013   An electing large partnership does not figure the depletion allowance of its partners that are disqualified persons. Example of 1040x amended tax returns for 2013 Disqualified persons must figure it themselves, as explained earlier. Example of 1040x amended tax returns for 2013   All the following are disqualified persons. Example of 1040x amended tax returns for 2013 Refiners who cannot claim percentage depletion (discussed under Independent Producers and Royalty Owners , earlier). Example of 1040x amended tax returns for 2013 Retailers who cannot claim percentage depletion (discussed under Independent Producers and Royalty Owners , earlier). Example of 1040x amended tax returns for 2013 Any partner whose average daily production of domestic crude oil and natural gas is more than 500 barrels during the tax year in which the partnership tax year ends. Example of 1040x amended tax returns for 2013 Average daily production is discussed earlier. Example of 1040x amended tax returns for 2013 Natural Gas Wells You can use percentage depletion for a well that produces natural gas that is either Sold under a fixed contract, or Produced from geopressured brine. Example of 1040x amended tax returns for 2013 Natural gas sold under a fixed contract. Example of 1040x amended tax returns for 2013   Natural gas sold under a fixed contract qualifies for a percentage depletion rate of 22%. Example of 1040x amended tax returns for 2013 This is domestic natural gas sold by the producer under a contract that does not provide for a price increase to reflect any increase in the seller's tax liability because of the repeal of percentage depletion for gas. Example of 1040x amended tax returns for 2013 The contract must have been in effect from February 1, 1975, until the date of sale of the gas. Example of 1040x amended tax returns for 2013 Price increases after February 1, 1975, are presumed to take the increase in tax liability into account unless demonstrated otherwise by clear and convincing evidence. Example of 1040x amended tax returns for 2013 Natural gas from geopressured brine. Example of 1040x amended tax returns for 2013   Qualified natural gas from geopressured brine is eligible for a percentage depletion rate of 10%. Example of 1040x amended tax returns for 2013 This is natural gas that is both the following. Example of 1040x amended tax returns for 2013 Produced from a well you began to drill after September 1978 and before 1984. Example of 1040x amended tax returns for 2013 Determined in accordance with section 503 of the Natural Gas Policy Act of 1978 to be produced from geopressured brine. Example of 1040x amended tax returns for 2013 Mines and Geothermal Deposits Certain mines, wells, and other natural deposits, including geothermal deposits, qualify for percentage depletion. Example of 1040x amended tax returns for 2013 Mines and other natural deposits. Example of 1040x amended tax returns for 2013   For a natural deposit, the percentage of your gross income from the property that you can deduct as depletion depends on the type of deposit. Example of 1040x amended tax returns for 2013   The following is a list of the percentage depletion rates for the more common minerals. Example of 1040x amended tax returns for 2013 DEPOSITS RATE Sulphur, uranium, and, if from deposits in the United States, asbestos, lead ore, zinc ore, nickel ore, and mica 22% Gold, silver, copper, iron ore, and certain oil shale, if from deposits in the United States 15% Borax, granite, limestone, marble, mollusk shells, potash, slate, soapstone, and carbon dioxide produced from a well 14% Coal, lignite, and sodium chloride 10% Clay and shale used or sold for use in making sewer pipe or bricks or used or sold for use as sintered or burned lightweight aggregates 7½% Clay used or sold for use in making drainage and roofing tile, flower pots, and kindred products, and gravel, sand, and stone (other than stone used or sold for use by a mine owner or operator as dimension or ornamental stone) 5%   You can find a complete list of minerals and their percentage depletion rates in section 613(b) of the Internal Revenue Code. Example of 1040x amended tax returns for 2013 Corporate deduction for iron ore and coal. Example of 1040x amended tax returns for 2013   The percentage depletion deduction of a corporation for iron ore and coal (including lignite) is reduced by 20% of: The percentage depletion deduction for the tax year (figured without this reduction), minus The adjusted basis of the property at the close of the tax year (figured without the depletion deduction for the tax year). Example of 1040x amended tax returns for 2013 Gross income from the property. Example of 1040x amended tax returns for 2013   For property other than a geothermal deposit or an oil or gas well, gross income from the property means the gross income from mining. Example of 1040x amended tax returns for 2013 Mining includes all the following. Example of 1040x amended tax returns for 2013 Extracting ores or minerals from the ground. Example of 1040x amended tax returns for 2013 Applying certain treatment processes described later. Example of 1040x amended tax returns for 2013 Transporting ores or minerals (generally, not more than 50 miles) from the point of extraction to the plants or mills in which the treatment processes are applied. Example of 1040x amended tax returns for 2013 Excise tax. Example of 1040x amended tax returns for 2013   Gross income from mining includes the separately stated excise tax received by a mine operator from the sale of coal to compensate the operator for the excise tax the mine operator must pay to finance black lung benefits. Example of 1040x amended tax returns for 2013 Extraction. Example of 1040x amended tax returns for 2013   Extracting ores or minerals from the ground includes extraction by mine owners or operators of ores or minerals from the waste or residue of prior mining. Example of 1040x amended tax returns for 2013 This does not apply to extraction from waste or residue of prior mining by the purchaser of the waste or residue or the purchaser of the rights to extract ores or minerals from the waste or residue. Example of 1040x amended tax returns for 2013 Treatment processes. Example of 1040x amended tax returns for 2013   The processes included as mining depend on the ore or mineral mined. Example of 1040x amended tax returns for 2013 To qualify as mining, the treatment processes must be applied by the mine owner or operator. Example of 1040x amended tax returns for 2013 For a listing of treatment processes considered as mining, see section 613(c)(4) of the Internal Revenue Code and the related regulations. Example of 1040x amended tax returns for 2013 Transportation of more than 50 miles. Example of 1040x amended tax returns for 2013   If the IRS finds that the ore or mineral must be transported more than 50 miles to plants or mills to be treated because of physical and other requirements, the additional authorized transportation is considered mining and included in the computation of gross income from mining. Example of 1040x amended tax returns for 2013    If you wish to include transportation of more than 50 miles in the computation of gross income from mining, request an advance ruling from the IRS. Example of 1040x amended tax returns for 2013 Include in the request the facts about the physical and other requirements that prevented the construction and operation of the plant within 50 miles of the point of extraction. Example of 1040x amended tax returns for 2013 For more information about requesting an advance ruling, see Revenue Procedure 2013-1, available at www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/irb/2013-01_IRB/ar11. Example of 1040x amended tax returns for 2013 html. Example of 1040x amended tax returns for 2013 Disposal of coal or iron ore. Example of 1040x amended tax returns for 2013   You cannot take a depletion deduction for coal (including lignite) or iron ore mined in the United States if both the following apply. Example of 1040x amended tax returns for 2013 You disposed of it after holding it for more than 1 year. Example of 1040x amended tax returns for 2013 You disposed of it under a contract under which you retain an economic interest in the coal or iron ore. Example of 1040x amended tax returns for 2013 Treat any gain on the disposition as a capital gain. Example of 1040x amended tax returns for 2013 Disposal to related person. Example of 1040x amended tax returns for 2013   This rule does not apply if you dispose of the coal or iron ore to one of the following persons. Example of 1040x amended tax returns for 2013 A related person (as listed in chapter 2 of Publication 544). Example of 1040x amended tax returns for 2013 A person owned or controlled by the same interests that own or control you. Example of 1040x amended tax returns for 2013 Geothermal deposits. Example of 1040x amended tax returns for 2013   Geothermal deposits located in the United States or its possessions qualify for a percentage depletion rate of 15%. Example of 1040x amended tax returns for 2013 A geothermal deposit is a geothermal reservoir of natural heat stored in rocks or in a watery liquid or vapor. Example of 1040x amended tax returns for 2013 For percentage depletion purposes, a geothermal deposit is not considered a gas well. Example of 1040x amended tax returns for 2013   Figure gross income from the property for a geothermal steam well in the same way as for oil and gas wells. Example of 1040x amended tax returns for 2013 See Gross income from the property , earlier, under Oil and Gas Wells. Example of 1040x amended tax returns for 2013 Percentage depletion on a geothermal deposit cannot be more than 50% of your taxable income from the property. Example of 1040x amended tax returns for 2013 Lessor's Gross Income In the case of leased property, the depletion deduction is divided between the lessor and the lessee. Example of 1040x amended tax returns for 2013 A lessor's gross income from the property that qualifies for percentage depletion usually is the total of the royalties received from the lease. Example of 1040x amended tax returns for 2013 Bonuses and advanced royalties. Example of 1040x amended tax returns for 2013   Bonuses and advanced royalties are payments a lessee makes before production to a lessor for the grant of rights in a lease or for minerals, gas, or oil to be extracted from leased property. Example of 1040x amended tax returns for 2013 If you are the lessor, your income from bonuses and advanced royalties received is subject to an allowance for depletion, as explained in the next two paragraphs. Example of 1040x amended tax returns for 2013 Figuring cost depletion. Example of 1040x amended tax returns for 2013   To figure cost depletion on a bonus, multiply your adjusted basis in the property by a fraction, the numerator of which is the bonus and the denominator of which is the total bonus and royalties expected to be received. Example of 1040x amended tax returns for 2013 To figure cost depletion on advanced royalties, use the computation explained earlier under Cost Depletion , treating the number of units for which the advanced royalty is received as the number of units sold. Example of 1040x amended tax returns for 2013 Figuring percentage depletion. Example of 1040x amended tax returns for 2013   In the case of mines, wells, and other natural deposits other than gas, oil, or geothermal property, you may use the percentage rates discussed earlier under Mines and Geothermal Deposits . Example of 1040x amended tax returns for 2013 Any bonus or advanced royalty payments are generally part of the gross income from the property to which the rates are applied in making the calculation. Example of 1040x amended tax returns for 2013 However, for oil, gas, or geothermal property, gross income does not include lease bonuses, advanced royalties, or other amounts payable without regard to production from the property. Example of 1040x amended tax returns for 2013 Ending the lease. Example of 1040x amended tax returns for 2013   If you receive a bonus on a lease that ends or is abandoned before you derive any income from mineral extraction, include in income the depletion deduction you took. Example of 1040x amended tax returns for 2013 Do this for the year the lease ends or is abandoned. Example of 1040x amended tax returns for 2013 Also increase your adjusted basis in the property to restore the depletion deduction you previously subtracted. Example of 1040x amended tax returns for 2013   For advanced royalties, include in income the depletion claimed on minerals for which the advanced royalties were paid if the minerals were not produced before the lease ended. Example of 1040x amended tax returns for 2013 Include this amount in income for the year the lease ends. Example of 1040x amended tax returns for 2013 Increase your adjusted basis in the property by the amount you include in income. Example of 1040x amended tax returns for 2013 Delay rentals. Example of 1040x amended tax returns for 2013   These are payments for deferring development of the property. Example of 1040x amended tax returns for 2013 Since delay rentals are ordinary rent, they are ordinary income that is not subject to depletion. Example of 1040x amended tax returns for 2013 These rentals can be avoided by either abandoning the lease, beginning development operations, or obtaining production. Example of 1040x amended tax returns for 2013 Timber You can figure timber depletion only by the cost method. Example of 1040x amended tax returns for 2013 Percentage depletion does not apply to timber. Example of 1040x amended tax returns for 2013 Base your depletion on your cost or other basis in the timber. Example of 1040x amended tax returns for 2013 Your cost does not include the cost of land or any amounts recoverable through depreciation. Example of 1040x amended tax returns for 2013 Depletion takes place when you cut standing timber. Example of 1040x amended tax returns for 2013 You can figure your depletion deduction when the quantity of cut timber is first accurately measured in the process of exploitation. Example of 1040x amended tax returns for 2013 Figuring cost depletion. Example of 1040x amended tax returns for 2013   To figure your cost depletion allowance, you multiply the number of timber units cut by your depletion unit. Example of 1040x amended tax returns for 2013 Timber units. Example of 1040x amended tax returns for 2013   When you acquire timber property, you must make an estimate of the quantity of marketable timber that exists on the property. Example of 1040x amended tax returns for 2013 You measure the timber using board feet, log scale, cords, or other units. Example of 1040x amended tax returns for 2013 If you later determine that you have more or less units of timber, you must adjust the original estimate. Example of 1040x amended tax returns for 2013   The term “timber property” means your economic interest in standing timber in each tract or block representing a separate timber account. Example of 1040x amended tax returns for 2013 Depletion unit. Example of 1040x amended tax returns for 2013   You figure your depletion unit each year by taking the following steps. Example of 1040x amended tax returns for 2013 Determine your cost or adjusted basis of the timber on hand at the beginning of the year. Example of 1040x amended tax returns for 2013 Adjusted basis is defined under Cost Depletion in the discussion on Mineral Property. Example of 1040x amended tax returns for 2013 Add to the amount determined in (1) the cost of any timber units acquired during the year and any additions to capital. Example of 1040x amended tax returns for 2013 Figure the number of timber units to take into account by adding the number of timber units acquired during the year to the number of timber units on hand in the account at the beginning of the year and then adding (or subtracting) any correction to the estimate of the number of timber units remaining in the account. Example of 1040x amended tax returns for 2013 Divide the result of (2) by the result of (3). Example of 1040x amended tax returns for 2013 This is your depletion unit. Example of 1040x amended tax returns for 2013 Example. Example of 1040x amended tax returns for 2013 You bought a timber tract for $160,000 and the land was worth as much as the timber. Example of 1040x amended tax returns for 2013 Your basis for the timber is $80,000. Example of 1040x amended tax returns for 2013 Based on an estimated one million board feet (1,000 MBF) of standing timber, you figure your depletion unit to be $80 per MBF ($80,000 ÷ 1,000). Example of 1040x amended tax returns for 2013 If you cut 500 MBF of timber, your depletion allowance would be $40,000 (500 MBF × $80). Example of 1040x amended tax returns for 2013 When to claim depletion. Example of 1040x amended tax returns for 2013   Claim your depletion allowance as a deduction in the year of sale or other disposition of the products cut from the timber, unless you choose to treat the cutting of timber as a sale or exchange (explained below). Example of 1040x amended tax returns for 2013 Include allowable depletion for timber products not sold during the tax year the timber is cut as a cost item in the closing inventory of timber products for the year. Example of 1040x amended tax returns for 2013 The inventory is your basis for determining gain or loss in the tax year you sell the timber products. Example of 1040x amended tax returns for 2013 Example. Example of 1040x amended tax returns for 2013 The facts are the same as in the previous example except that you sold only half of the timber products in the cutting year. Example of 1040x amended tax returns for 2013 You would deduct $20,000 of the $40,000 depletion that year. Example of 1040x amended tax returns for 2013 You would add the remaining $20,000 depletion to your closing inventory of timber products. Example of 1040x amended tax returns for 2013 Electing to treat the cutting of timber as a sale or exchange. Example of 1040x amended tax returns for 2013   You can elect, under certain circumstances, to treat the cutting of timber held for more than 1 year as a sale or exchange. Example of 1040x amended tax returns for 2013 You must make the election on your income tax return for the tax year to which it applies. Example of 1040x amended tax returns for 2013 If you make this election, subtract the adjusted basis for depletion from the fair market value of the timber on the first day of the tax year in which you cut it to figure the gain or loss on the cutting. Example of 1040x amended tax returns for 2013 You generally report the gain as long-term capital gain. Example of 1040x amended tax returns for 2013 The fair market value then becomes your basis for figuring your ordinary gain or loss on the sale or other disposition of the products cut from the timber. Example of 1040x amended tax returns for 2013 For more information, see Timber in chapter 2 of Publication 544, Sales and Other Dispositions of Assets. Example of 1040x amended tax returns for 2013   You may revoke an election to treat the cutting of timber as a sale or exchange without IRS's consent. Example of 1040x amended tax returns for 2013 The prior election (and revocation) is disregarded for purposes of making a subsequent election. Example of 1040x amended tax returns for 2013 See Form T (Timber), Forest Activities Schedule, for more information. Example of 1040x amended tax returns for 2013 Form T. Example of 1040x amended tax returns for 2013   Complete and attach Form T (Timber) to your income tax return if you claim a deduction for timber depletion, choose to treat the cutting of timber as a sale or exchange, or make an outright sale of timber. Example of 1040x amended tax returns for 2013 Prev  Up  Next   Home   More Online Publications
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The Example Of 1040x Amended Tax Returns For 2013

Example of 1040x amended tax returns for 2013 Publication 947 - Main Content Table of Contents Practice Before the IRSWhat Is Practice Before the IRS? Who Can Practice Before the IRS? Who Cannot Practice Before the IRS? How Does an Individual Become Enrolled? What Are the Rules of Practice? Authorizing a RepresentativeWhat Is a Power of Attorney? When Is a Power of Attorney Required? When Is a Power of Attorney Not Required? How Do I Fill Out Form 2848? What Happens to the Power of Attorney When Filed? How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Example of 1040x amended tax returns for 2013 Practice Before the IRS The Office of Professional Responsibility and the Return Preparer Office generally are responsible for administering and enforcing the regulations governing practice before the IRS. Example of 1040x amended tax returns for 2013 The Office of Professional Responsibility generally has responsibility for matters related to practitioner conduct and exclusive responsibility for discipline, including disciplinary proceedings and sanctions. Example of 1040x amended tax returns for 2013 The Return Preparer Office is responsible for matters related to the authority to practice, including acting on applications for enrollment and administering competency testing and continuing education. Example of 1040x amended tax returns for 2013 What Is Practice Before the IRS? Practice before the IRS covers all matters relating to any of the following. Example of 1040x amended tax returns for 2013 Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS. Example of 1040x amended tax returns for 2013 Representing a taxpayer at conferences, hearings, or meetings with the IRS. Example of 1040x amended tax returns for 2013 Preparing and filing documents, including tax returns, with the IRS for a taxpayer. Example of 1040x amended tax returns for 2013 Providing a client with written advice which has a potential for tax avoidance or evasion. Example of 1040x amended tax returns for 2013 Furnishing information at the request of the IRS or appearing as a witness for the taxpayer is not practice before the IRS. Example of 1040x amended tax returns for 2013 Who Can Practice Before the IRS? The following individuals can practice before the IRS. Example of 1040x amended tax returns for 2013 However, any individual who is recognized to practice (a recognized representative) must be designated as the taxpayer's representative and file a written declaration with the IRS stating that he or she is authorized and qualified to represent a particular taxpayer. Example of 1040x amended tax returns for 2013 Form 2848 can be used for this purpose. Example of 1040x amended tax returns for 2013 Attorneys. Example of 1040x amended tax returns for 2013   Any attorney who is not currently under suspension or disbarment from practice before the IRS and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Example of 1040x amended tax returns for 2013 Certified public accountants (CPAs). Example of 1040x amended tax returns for 2013   Any CPA who is not currently under suspension or disbarment from practice before the IRS and who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Example of 1040x amended tax returns for 2013 Enrolled agents. Example of 1040x amended tax returns for 2013   Any enrolled agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Example of 1040x amended tax returns for 2013 Enrolled retirement plan agents. Example of 1040x amended tax returns for 2013   Any enrolled retirement plan agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Example of 1040x amended tax returns for 2013 The practice of enrolled retirement plan agents is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Example of 1040x amended tax returns for 2013 Enrolled actuaries. Example of 1040x amended tax returns for 2013   Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Example of 1040x amended tax returns for 2013 The practice of enrolled actuaries is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Example of 1040x amended tax returns for 2013 Student. Example of 1040x amended tax returns for 2013    Under certain circumstances, a student who is supervised by a practitioner may request permission to represent another person before the IRS. Example of 1040x amended tax returns for 2013 For more information, see Authorization for special appearances, later. Example of 1040x amended tax returns for 2013 Registered tax return preparers and unenrolled return preparers. Example of 1040x amended tax returns for 2013   A registered tax return preparer is an individual who has passed an IRS competency test and is authorized to prepare and sign tax returns as the preparer. Example of 1040x amended tax returns for 2013 An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or regulations) to sign the return. Example of 1040x amended tax returns for 2013   Registered tax return preparers and unenrolled return preparers may only represent taxpayers before revenue agents, customer service representatives, or similar officers and employees of the Internal Revenue Service (including the Taxpayer Advocate Service) during an examination of the taxable year or period covered by the tax return they prepared and signed. Example of 1040x amended tax returns for 2013 Registered tax return preparers and unenrolled return preparers cannot represent taxpayers, regardless of the circumstances requiring representation, before appeals officers, revenue officers, counsel or similar officers or employees of the Internal Revenue Service or the Department of Treasury. Example of 1040x amended tax returns for 2013 Registered tax return preparers and unenrolled return preparers cannot execute closing agreements, extend the statutory period for tax assessments or collection of tax, execute waivers, execute claims for refund, or sign any document on behalf of a taxpayer. Example of 1040x amended tax returns for 2013   If the unenrolled return preparer does not meet the requirements for limited representation, you may file Form 8821 to allow the preparer to inspect your tax information and receive copies of notices sent to you by the IRS. Example of 1040x amended tax returns for 2013 See Form 8821. Example of 1040x amended tax returns for 2013 Practice denied. Example of 1040x amended tax returns for 2013   Any individual engaged in limited practice before the IRS who is involved in disreputable conduct is subject to disciplinary action. Example of 1040x amended tax returns for 2013 Disreputable conduct includes, but is not limited to, the list of items under Incompetence and Disreputable Conduct shown later under What Are the Rules of Practice. Example of 1040x amended tax returns for 2013 Other individuals who may serve as representatives. Example of 1040x amended tax returns for 2013   Because of their special relationship with a taxpayer, the following individuals can represent the specified taxpayers before the IRS, provided they present satisfactory identification and, except in the case of an individual described in (1) below, proof of authority to represent the taxpayer. Example of 1040x amended tax returns for 2013 An individual. Example of 1040x amended tax returns for 2013 An individual can represent himself or herself before the IRS and does not have to file a written declaration of qualification and authority. Example of 1040x amended tax returns for 2013 A family member. Example of 1040x amended tax returns for 2013 An individual can represent members of his or her immediate family. Example of 1040x amended tax returns for 2013 Immediate family includes a spouse, child, parent, brother, or sister of the individual. Example of 1040x amended tax returns for 2013 An officer. Example of 1040x amended tax returns for 2013 A bona fide officer of a corporation (including a parent, subsidiary, or other affiliated corporation), association, or organized group can represent the corporation, association, or organized group. Example of 1040x amended tax returns for 2013 An officer of a governmental unit, agency, or authority, in the course of his or her official duties, can represent the organization before the IRS. Example of 1040x amended tax returns for 2013 A partner. Example of 1040x amended tax returns for 2013 A general partner may represent the partnership before the IRS. Example of 1040x amended tax returns for 2013 An employee. Example of 1040x amended tax returns for 2013 A regular full-time employee can represent his or her employer. Example of 1040x amended tax returns for 2013 An employer can be, but is not limited to, an individual, partnership, corporation (including a parent, subsidiary, or other affiliated corporation), association, trust, receivership, guardianship, estate, organized group, governmental unit, agency, or authority. Example of 1040x amended tax returns for 2013 A fiduciary. Example of 1040x amended tax returns for 2013 A fiduciary (trustee, executor, personal representative, administrator, receiver, or guardian) stands in the position of a taxpayer and acts as the taxpayer, not as a representative. Example of 1040x amended tax returns for 2013 See Fiduciary under When Is a Power of Attorney Not Required, later. Example of 1040x amended tax returns for 2013 Representation Outside the United States Any individual may represent an individual or entity, who is outside the United States, before personnel of the IRS when such representation occurs outside the United States. Example of 1040x amended tax returns for 2013 See section 10. Example of 1040x amended tax returns for 2013 7(c)(1)(vii) of Circular 230. Example of 1040x amended tax returns for 2013 Authorization for Special Appearances The Commissioner of Internal Revenue, or delegate, can authorize an individual who is not otherwise eligible to practice before the IRS to represent another person for a particular matter. Example of 1040x amended tax returns for 2013 The prospective representative must request this authorization in writing from the Office of Professional Responsibility. Example of 1040x amended tax returns for 2013 However, it is granted only when extremely compelling circumstances exist. Example of 1040x amended tax returns for 2013 If granted, the Commissioner, or delegate, will issue a letter that details the conditions related to the appearance and the particular tax matter for which the authorization is granted. Example of 1040x amended tax returns for 2013 The authorization letter should not be confused with a letter from an IRS center advising an individual that he or she has been assigned a Centralized Authorization File (CAF) number. Example of 1040x amended tax returns for 2013 The issuance of a CAF number does not indicate that an individual is either recognized or authorized to practice before the IRS. Example of 1040x amended tax returns for 2013 It merely confirms that a centralized file for authorizations has been established for the individual under that number. Example of 1040x amended tax returns for 2013 Students in LITCs and the STCP. Example of 1040x amended tax returns for 2013   A student who works in a Low Income Taxpayer Clinic (LITC) or Student Tax Clinic Program (STCP) who is supervised by a practitioner may request permission to represent another person before the IRS. Example of 1040x amended tax returns for 2013 Authorization requests must be made to the Office of Professional Responsibility. Example of 1040x amended tax returns for 2013 If granted, a letter authorizing the student's special appearance and detailing any conditions related to the appearance will be issued. Example of 1040x amended tax returns for 2013 Students receiving an authorization letter generally can represent taxpayers before any IRS function or office subject to any conditions in the authorization letter. Example of 1040x amended tax returns for 2013 If you intend to have a student represent you, review the authorization letter and ask your student, your student's supervisor, or the Office of Professional Responsibility if you have questions about the terms of the authorization. Example of 1040x amended tax returns for 2013 Who Cannot Practice Before the IRS? In general, individuals who are not eligible or who have lost the privilege as a result of certain actions cannot practice before the IRS. Example of 1040x amended tax returns for 2013 If an individual loses eligibility to practice, the IRS will not recognize a power of attorney that names the individual as a representative. Example of 1040x amended tax returns for 2013 Corporations, associations, partnerships, and other persons that are not individuals. Example of 1040x amended tax returns for 2013   These organizations (or persons) are not eligible to practice before the IRS. Example of 1040x amended tax returns for 2013 Loss of Eligibility Generally, individuals lose their eligibility to practice before the IRS in the following ways. Example of 1040x amended tax returns for 2013 Not meeting the requirements for renewal of enrollment (such as continuing professional education). Example of 1040x amended tax returns for 2013 Requesting to be placed in inactive retirement status. Example of 1040x amended tax returns for 2013 Being suspended or disbarred by the Office of Professional Responsibility for violating the regulations governing practice before the IRS. Example of 1040x amended tax returns for 2013 Failure to meet requirements. Example of 1040x amended tax returns for 2013   Individuals who fail to comply with the requirements for eligibility for renewal of enrollment will be notified by the IRS. Example of 1040x amended tax returns for 2013 The notice will explain the reason for noncompliance and provide the individual with an opportunity to furnish information for reconsideration. Example of 1040x amended tax returns for 2013 The individual has 60 days from the date of the notice to respond. Example of 1040x amended tax returns for 2013 Inactive roster. Example of 1040x amended tax returns for 2013   An individual will be placed on the roster of inactive individuals for a period of three years, if he or she: Fails to respond timely to the notice of noncompliance with the renewal requirements, Fails to file timely the application for renewal, or Does not satisfy the requirements of eligibility for renewal. Example of 1040x amended tax returns for 2013 The individual must file an application for renewal and satisfy all requirements for renewal after being placed in inactive status. Example of 1040x amended tax returns for 2013 Otherwise, at the conclusion of the next renewal cycle, he or she will be removed from the roster and the enrollment or registration terminated. Example of 1040x amended tax returns for 2013 Inactive retirement status. Example of 1040x amended tax returns for 2013   Individuals who request to be placed in an inactive retirement status will be ineligible to practice before the IRS. Example of 1040x amended tax returns for 2013 They must continue to adhere to all renewal requirements. Example of 1040x amended tax returns for 2013 They can be reinstated to an active enrollment status by filing an application for renewal and providing evidence that they have completed the required continuing professional education hours for the enrollment cycle or registration year. Example of 1040x amended tax returns for 2013 Suspension and disbarment. Example of 1040x amended tax returns for 2013   Individuals authorized to practice before the IRS are subject to disciplinary proceedings and may be suspended or disbarred for violating any regulation governing practice before the IRS. Example of 1040x amended tax returns for 2013 This includes engaging in acts of disreputable conduct. Example of 1040x amended tax returns for 2013 For more information, see Incompetence and Disreputable Conduct under What are the Rules of Practice, later. Example of 1040x amended tax returns for 2013   Practitioners who are suspended in a disciplinary proceeding are not allowed to practice before the IRS during the period of suspension. Example of 1040x amended tax returns for 2013 See What Is Practice Before the IRS, earlier. Example of 1040x amended tax returns for 2013   Practitioners who are disbarred in a disciplinary proceeding are not allowed to practice before the IRS. Example of 1040x amended tax returns for 2013 However, a practitioner can seek reinstatement from the Office of Professional Responsibility five years after disbarment. Example of 1040x amended tax returns for 2013   If the practitioner seeks reinstatement, he or she may not practice before the IRS until the Office of Professional Responsibility authorizes reinstatement. Example of 1040x amended tax returns for 2013 The Office of Professional Responsibility may reinstate the practitioner if it is determined that: The practitioner's future conduct is not likely to be in violation of the regulations, and Granting the reinstatement would not be contrary to the public interest. Example of 1040x amended tax returns for 2013 How Does an Individual Become Enrolled? The Return Preparer Office can grant enrollment to practice before the IRS to an applicant who demonstrates special competence in tax matters by passing a written examination administered by the IRS. Example of 1040x amended tax returns for 2013 Enrollment also can be granted to an applicant who qualifies because of past service and technical experience in the IRS. Example of 1040x amended tax returns for 2013 In either case, certain application forms, discussed next, must be filed. Example of 1040x amended tax returns for 2013 Additionally, an applicant must not have engaged in any conduct that would justify suspension or disbarment from practice before the IRS. Example of 1040x amended tax returns for 2013 See Incompetence and Disreputable Conduct, later. Example of 1040x amended tax returns for 2013 Form 2587. Example of 1040x amended tax returns for 2013   Applicants can apply to take the special enrollment examination by filing Form 2587, Application for Special Enrollment Examination. Example of 1040x amended tax returns for 2013 Form 2587 can be filed online, by mail, or by fax. Example of 1040x amended tax returns for 2013 For more information, see instructions and fees listed on the form. Example of 1040x amended tax returns for 2013 To get Form 2587, see How To Get Tax Help, later. Example of 1040x amended tax returns for 2013 Form 23 and Form 23-EP. Example of 1040x amended tax returns for 2013   Individuals who have passed the examination or are applying on the basis of past service and technical experience with the IRS can apply for enrollment by filing Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, or Form 23-EP, Application for Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent. Example of 1040x amended tax returns for 2013 The application must include a check or money order in the amount of the fee shown on Form 23 or Form 23-EP. Example of 1040x amended tax returns for 2013 Alternatively, payment may be made electronically pursuant to instructions on the forms. Example of 1040x amended tax returns for 2013 To get Form 23 or Form 23-EP, see How To Get Tax Help, later. Example of 1040x amended tax returns for 2013 Form 5434. Example of 1040x amended tax returns for 2013   An individual may apply as an enrolled actuary on the basis of past employment with the IRS and technical experience by filing Form 5434, Application for Enrollment, with the Joint Board for the Enrollment of Actuaries. Example of 1040x amended tax returns for 2013 The application must include a check or money order in the amount of the fee shown on Form 5434. Example of 1040x amended tax returns for 2013 To get Form 5434, see How To Get Tax Help, later. Example of 1040x amended tax returns for 2013 Period of enrollment. Example of 1040x amended tax returns for 2013   An enrollment card will be issued to each individual whose enrollment application is approved. Example of 1040x amended tax returns for 2013 The individual is enrolled until the expiration date shown on the enrollment card or certificate. Example of 1040x amended tax returns for 2013 To continue practicing beyond the expiration date, the individual must request renewal of the enrollment by filing Form 8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service, or Form 8554-EP, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent (ERPA). Example of 1040x amended tax returns for 2013 What Are the Rules of Practice? The rules governing practice before the IRS are published in the Code of Federal Regulations at 31 C. Example of 1040x amended tax returns for 2013 F. Example of 1040x amended tax returns for 2013 R. Example of 1040x amended tax returns for 2013 part 10 and reprinted in Treasury Department Circular No. Example of 1040x amended tax returns for 2013 230 (Circular 230). Example of 1040x amended tax returns for 2013 An attorney, CPA, enrolled agent, enrolled retirement plan agent, registered tax return preparer, or enrolled actuary authorized to practice before the IRS (referred to hereafter as a practitioner) has the duty to perform certain acts and is restricted from performing other acts. Example of 1040x amended tax returns for 2013 In addition, a practitioner cannot engage in disreputable conduct (discussed later). Example of 1040x amended tax returns for 2013 Any practitioner who does not comply with the rules of practice or engages in disreputable conduct is subject to disciplinary action. Example of 1040x amended tax returns for 2013 Also, unenrolled preparers must comply with the rules of practice and conduct to exercise the privilege of limited practice before the IRS. Example of 1040x amended tax returns for 2013 See Publication 470 for a discussion of the special rules for limited practice by unenrolled preparers. Example of 1040x amended tax returns for 2013 Duties Practitioners must promptly submit records or information requested by officers or employees of the IRS, except when the practitioner believes on reasonable belief and good faith that the information is privileged. Example of 1040x amended tax returns for 2013 Communications with respect to tax advice between a federally authorized tax practitioner and a taxpayer generally are confidential to the same extent that communication would be privileged if it were between a taxpayer and an attorney if the advice relates to: Noncriminal tax matters before the IRS, or Noncriminal tax proceedings brought in federal court by or against the United States. Example of 1040x amended tax returns for 2013 Communications regarding corporate tax shelters. Example of 1040x amended tax returns for 2013   This protection of tax advice communications does not apply to any written communications between a federally authorized tax practitioner and any person, including a director, shareholder, officer, employee, agent, or representative of a corporation if the communication involves the promotion of the direct or indirect participation of the corporation in any tax shelter. Example of 1040x amended tax returns for 2013 Duty to advise. Example of 1040x amended tax returns for 2013   A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return, document, affidavit, or other required paper, has the responsibility to advise the client promptly of the noncompliance, error, or omission, and the consequences of the noncompliance, error, or omission. Example of 1040x amended tax returns for 2013 Due diligence. Example of 1040x amended tax returns for 2013   A practitioner must exercise due diligence when performing the following duties. Example of 1040x amended tax returns for 2013 Preparing or assisting in the preparing, approving, and filing of returns, documents, affidavits, and other papers relating to IRS matters. Example of 1040x amended tax returns for 2013 Determining the correctness of oral or written representations made by him or her to the Department of the Treasury. Example of 1040x amended tax returns for 2013 Determining the correctness of oral or written representations made by him or her to clients with reference to any matter administered by the IRS. Example of 1040x amended tax returns for 2013 Restrictions Practitioners are restricted from engaging in certain practices. Example of 1040x amended tax returns for 2013 The following paragraphs discuss some of these restricted practices. Example of 1040x amended tax returns for 2013 Delays. Example of 1040x amended tax returns for 2013   A practitioner must not unreasonably delay the prompt disposition of any matter before the IRS. Example of 1040x amended tax returns for 2013 Assistance from disbarred or suspended persons and former IRS employees. Example of 1040x amended tax returns for 2013   A practitioner must not knowingly, directly or indirectly, do the following. Example of 1040x amended tax returns for 2013 Accept assistance from, or assist, any person who is under disbarment or suspension from practice before the IRS if the assistance relates to matters considered practice before the IRS. Example of 1040x amended tax returns for 2013 Accept assistance from any former government employee where provisions of Circular 230 or any federal law would be violated. Example of 1040x amended tax returns for 2013 Performance as a notary. Example of 1040x amended tax returns for 2013   A practitioner who is a notary public and is employed as counsel, attorney, or agent in a matter before the IRS, or has a material interest in the matter, cannot engage in any notary activities related to that matter. Example of 1040x amended tax returns for 2013 Negotiations of taxpayer refund checks. Example of 1040x amended tax returns for 2013   Practitioners must not endorse or otherwise negotiate (cash) any refund check (including directing or accepting payment by any means, electronic or otherwise, in an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to the taxpayer. Example of 1040x amended tax returns for 2013 Incompetence and Disreputable Conduct Any practitioner or unenrolled return preparer may be disbarred or suspended from practice before the IRS, or censured, for incompetence or disreputable conduct. Example of 1040x amended tax returns for 2013 The following list contains examples of conduct that is considered disreputable. Example of 1040x amended tax returns for 2013 Being convicted of any criminal offense under the revenue laws or of any offense involving dishonesty or breach of trust. Example of 1040x amended tax returns for 2013 Knowingly giving false or misleading information in connection with federal tax matters, or participating in such activity. Example of 1040x amended tax returns for 2013 Soliciting employment by prohibited means as discussed in section 10. Example of 1040x amended tax returns for 2013 30 of Circular 230. Example of 1040x amended tax returns for 2013 Willfully failing to file a federal tax return, evading or attempting to evade any federal tax or payment, or participating in such actions. Example of 1040x amended tax returns for 2013 Misappropriating, or failing to properly and promptly remit, funds received from clients for payment of taxes or other obligations due the United States. Example of 1040x amended tax returns for 2013 Directly or indirectly attempting to influence the official action of IRS employees by the use of threats, false accusations, duress, or coercion, or by offering gifts, favors, or any special inducements. Example of 1040x amended tax returns for 2013 Being disbarred or suspended from practice as an attorney, CPA, public accountant, or actuary, by the District of Columbia or any state, possession, territory, commonwealth, or any federal court, or any federal agency, body, or board. Example of 1040x amended tax returns for 2013 Knowingly aiding and abetting another person to practice before the IRS during a period of suspension, disbarment, or ineligibility of that other person. Example of 1040x amended tax returns for 2013 Using abusive language, making false accusations and statements knowing them to be false, circulating or publishing malicious or libelous matter, or engaging in any contemptuous conduct in connection with practice before the IRS. Example of 1040x amended tax returns for 2013 Giving a false opinion knowingly, recklessly, or through gross incompetence; or following a pattern of providing incompetent opinions in questions arising under the federal tax laws. Example of 1040x amended tax returns for 2013 Censure, Disbarments, and Suspensions The Office of Professional Responsibility may censure or institute proceedings to censure, suspend or disbar any attorney, CPA, or enrolled agent who has violated Circular 230. Example of 1040x amended tax returns for 2013 A practitioner will be given the opportunity to demonstrate compliance with the rules before any disciplinary action is taken. Example of 1040x amended tax returns for 2013 Authorizing a Representative You may either represent yourself, or you may authorize an individual to represent you before the IRS. Example of 1040x amended tax returns for 2013 If you chose to have someone represent you, your representative must be a person eligible to practice before the IRS. Example of 1040x amended tax returns for 2013 See Who Can Practice Before the IRS, earlier. Example of 1040x amended tax returns for 2013 What Is a Power of Attorney? A power of attorney is your written authorization for an individual to act on your behalf. Example of 1040x amended tax returns for 2013 If the authorization is not limited, the individual generally can perform all acts that you can perform. Example of 1040x amended tax returns for 2013 The authority granted to a registered tax return preparer or an unenrolled preparer is limited. Example of 1040x amended tax returns for 2013 For information on the limits regarding registered tax return preparers, see Circular 230 §10. Example of 1040x amended tax returns for 2013 3(f). Example of 1040x amended tax returns for 2013 For information on the limits regarding unenrolled preparers, see Publication 470. Example of 1040x amended tax returns for 2013 Acts performed. Example of 1040x amended tax returns for 2013   Any representative, other than a registered tax return preparer or an unenrolled return preparer, can usually perform the following acts. Example of 1040x amended tax returns for 2013 Represent you before any office of the IRS. Example of 1040x amended tax returns for 2013 Sign an offer or a waiver of restriction on assessment or collection of a tax deficiency, or a waiver of notice of disallowance of claim for credit or refund. Example of 1040x amended tax returns for 2013 Sign a consent to extend the statutory time period for assessment or collection of a tax. Example of 1040x amended tax returns for 2013 Sign a closing agreement. Example of 1040x amended tax returns for 2013 Signing your return. Example of 1040x amended tax returns for 2013   The representative named under a power of attorney is not permitted to sign your income tax return unless: The signature is permitted under the Internal Revenue Code and the related regulations (see Regulations section 1. Example of 1040x amended tax returns for 2013 6012-1(a)(5)). Example of 1040x amended tax returns for 2013 You specifically authorize this in your power of attorney. Example of 1040x amended tax returns for 2013 For example, the regulation permits a representative to sign your return if you are unable to sign the return due to: Disease or injury. Example of 1040x amended tax returns for 2013 Continuous absence from the United States (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return. Example of 1040x amended tax returns for 2013 Other good cause if specific permission is requested of and granted by the IRS. Example of 1040x amended tax returns for 2013 When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. Example of 1040x amended tax returns for 2013 For more information, see the Form 2848 instructions. Example of 1040x amended tax returns for 2013 Limitation on substitution or delegation. Example of 1040x amended tax returns for 2013   A recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized by you on the power of attorney. Example of 1040x amended tax returns for 2013   After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. Example of 1040x amended tax returns for 2013 If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent you. Example of 1040x amended tax returns for 2013 Disclosure of returns to a third party. Example of 1040x amended tax returns for 2013   Your representative cannot execute consents that will allow the IRS to disclose tax return or return information to a third party unless you specifically delegate this authority to your representative on line 5 of Form 2848. Example of 1040x amended tax returns for 2013 Incapacity or incompetency. Example of 1040x amended tax returns for 2013   A power of attorney is generally terminated if you become incapacitated or incompetent. Example of 1040x amended tax returns for 2013   The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on line 5 “Other” of the Form 2848 and if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. Example of 1040x amended tax returns for 2013 See Non-IRS powers of attorney, later. Example of 1040x amended tax returns for 2013 When Is a Power of Attorney Required? Submit a power of attorney when you want to authorize an individual to represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney. Example of 1040x amended tax returns for 2013 A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf. Example of 1040x amended tax returns for 2013 Represent you at a meeting with the IRS. Example of 1040x amended tax returns for 2013 Prepare and file a written response to the IRS. Example of 1040x amended tax returns for 2013 Form Required Use Form 2848 to appoint a recognized representative to act on your behalf before the IRS. Example of 1040x amended tax returns for 2013 Individuals recognized to practice before the IRS are listed under Part II, Declaration of Representative, of Form 2848. Example of 1040x amended tax returns for 2013 Your representative must complete that part of the form. Example of 1040x amended tax returns for 2013 Non-IRS powers of attorney. Example of 1040x amended tax returns for 2013   The IRS will accept a non-IRS power of attorney, but a completed Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. Example of 1040x amended tax returns for 2013 For more information, see Processing a non-IRS power of attorney, later. Example of 1040x amended tax returns for 2013   If you want to use a power of attorney document other than Form 2848, it must contain the following information. Example of 1040x amended tax returns for 2013 Your name and mailing address. Example of 1040x amended tax returns for 2013 Your social security number and/or employer identification number. Example of 1040x amended tax returns for 2013 Your employee plan number, if applicable. Example of 1040x amended tax returns for 2013 The name and mailing address of your representative(s). Example of 1040x amended tax returns for 2013 The types of tax involved. Example of 1040x amended tax returns for 2013 The federal tax form number. Example of 1040x amended tax returns for 2013 The specific year(s) or period(s) involved. Example of 1040x amended tax returns for 2013 For estate tax matters, the decedent's date of death. Example of 1040x amended tax returns for 2013 A clear expression of your intention concerning the scope of authority granted to your representative(s). Example of 1040x amended tax returns for 2013 Your signature and date. Example of 1040x amended tax returns for 2013 You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. Example of 1040x amended tax returns for 2013 This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. Example of 1040x amended tax returns for 2013 The statement should read: I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority, I am aware of the regulations contained in Circular 230, I am authorized to represent the taxpayer(s) identified in the power of attorney, and I am an individual described in 26 CFR 601. Example of 1040x amended tax returns for 2013 502(b). Example of 1040x amended tax returns for 2013 Required information missing. Example of 1040x amended tax returns for 2013   The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. Example of 1040x amended tax returns for 2013 You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. Example of 1040x amended tax returns for 2013 If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next. Example of 1040x amended tax returns for 2013 Procedure for perfecting a non-IRS power of attorney. Example of 1040x amended tax returns for 2013   Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf. Example of 1040x amended tax returns for 2013 The original non-IRS power of attorney grants authority to handle federal tax matters (for example, general authority to perform any acts). Example of 1040x amended tax returns for 2013 The attorney-in-fact attaches a statement (signed under penalty of perjury) to the Form 2848 stating that the original non-IRS power of attorney is valid under the laws of the governing jurisdiction. Example of 1040x amended tax returns for 2013 Example. Example of 1040x amended tax returns for 2013 John Elm, a taxpayer, signs a non-IRS durable power of attorney that names his neighbor and CPA, Ed Larch, as his attorney-in-fact. Example of 1040x amended tax returns for 2013 The power of attorney grants Ed the authority to perform any and all acts on John's behalf. Example of 1040x amended tax returns for 2013 However, it does not list specific tax-related information such as types of tax or tax form numbers. Example of 1040x amended tax returns for 2013 Shortly after John signs the power of attorney, he is declared incompetent. Example of 1040x amended tax returns for 2013 Later, a federal tax matter arises concerning a prior year return filed by John. Example of 1040x amended tax returns for 2013 Ed attempts to represent John before the IRS but is rejected because the durable power of attorney does not contain required information. Example of 1040x amended tax returns for 2013 If Ed attaches a statement (signed under the penalty of perjury) that the durable power of attorney is valid under the laws of the governing jurisdiction, he can sign a completed Form 2848 and submit it on John's behalf. Example of 1040x amended tax returns for 2013 If Ed can practice before the IRS (see Who Can Practice Before the IRS, earlier), he can name himself as representative on Form 2848. Example of 1040x amended tax returns for 2013 Otherwise, he must name another individual who can practice before the IRS. Example of 1040x amended tax returns for 2013 Processing a non-IRS power of attorney. Example of 1040x amended tax returns for 2013   The IRS has a centralized computer database system called the CAF system. Example of 1040x amended tax returns for 2013 This system contains information on the authority of taxpayer representatives. Example of 1040x amended tax returns for 2013 Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. Example of 1040x amended tax returns for 2013 Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the CAF. Example of 1040x amended tax returns for 2013 It also enables the IRS to automatically send copies of notices and other IRS communications to your representative if you specify that your representative should receive those communications. Example of 1040x amended tax returns for 2013   You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed Form 2848 and submitting it to the IRS. Example of 1040x amended tax returns for 2013 Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848). Example of 1040x amended tax returns for 2013 Preparation of Form — Helpful Hints The preparation of Form 2848 is illustrated by an example, later under How Do I Fill Out Form 2848. Example of 1040x amended tax returns for 2013 However, the following will also assist you in preparing the form. Example of 1040x amended tax returns for 2013 Line-by-line hints. Example of 1040x amended tax returns for 2013   The following hints are summaries of some of the line-by-line instructions for Form 2848. Example of 1040x amended tax returns for 2013 Line 1—Taxpayer information. Example of 1040x amended tax returns for 2013   If a joint return is involved, the husband and wife each file a separate Form 2848 if they both want to be represented. Example of 1040x amended tax returns for 2013 If only one spouse wants to be represented in the matter, that spouse files a Form 2848. Example of 1040x amended tax returns for 2013 Line 2—Representative(s). Example of 1040x amended tax returns for 2013   Only individuals may be named as representatives. Example of 1040x amended tax returns for 2013 If your representative has not been assigned a CAF number, enter “None” on that line and the IRS will issue one to your representative. Example of 1040x amended tax returns for 2013 If the representative's address or phone number has changed since the CAF number was issued, you should check the appropriate box. Example of 1040x amended tax returns for 2013 Enter your representative's fax number if available. Example of 1040x amended tax returns for 2013   If you want to name more than three representatives, attach additional Form(s) 2848. Example of 1040x amended tax returns for 2013 The IRS can send copies of notices and communications to two of your representatives. Example of 1040x amended tax returns for 2013 You must, however, check the boxes on line 2 of the Form 2848 if you want the IRS to routinely send copies of notices and communications to your representatives. Example of 1040x amended tax returns for 2013 If you do not check the boxes, your representatives will not routinely receive copies of notices and communications. Example of 1040x amended tax returns for 2013 Line 3—Tax matters. Example of 1040x amended tax returns for 2013   You may list any tax years or periods that have already ended as of the date you sign the power of attorney. Example of 1040x amended tax returns for 2013 However, you may include on a power of attorney only future tax periods that end no later than 3 years after the date the power of attorney is received by the IRS. Example of 1040x amended tax returns for 2013 The 3 future periods are determined starting after December 31 of the year the power of attorney is received by the IRS. Example of 1040x amended tax returns for 2013 However, avoid general references such as “all years” or “all taxes. Example of 1040x amended tax returns for 2013 ” Any Form 2848 with general references will be returned. Example of 1040x amended tax returns for 2013 Line 4—Specific use not recorded on Centralized Authorization File (CAF). Example of 1040x amended tax returns for 2013   Certain matters cannot be recorded on the CAF system. Example of 1040x amended tax returns for 2013 Examples of such matters include, but are not limited to, the following. Example of 1040x amended tax returns for 2013 Requests for a private letter ruling or technical advice. Example of 1040x amended tax returns for 2013 Applications for an employer identification number (EIN). Example of 1040x amended tax returns for 2013 Claims filed on Form 843, Claim for Refund and Request for Abatement. Example of 1040x amended tax returns for 2013 Corporate dissolutions. Example of 1040x amended tax returns for 2013 Requests for change of accounting method. Example of 1040x amended tax returns for 2013 Requests for change of accounting period. Example of 1040x amended tax returns for 2013 Applications for recognition of exemption under sections 501(c)(3), 501(a), or 521 (Forms 1023, 1034, or 1028). Example of 1040x amended tax returns for 2013 Request for a determination of the qualified status of an employee benefit plan (Forms 5300, 5307, or 5310). Example of 1040x amended tax returns for 2013 Application for Award for Original Information under section 7623. Example of 1040x amended tax returns for 2013 Voluntary submissions under the Employee Plans Compliance Resolution System (EPCRS). Example of 1040x amended tax returns for 2013 Freedom of Information Act requests. Example of 1040x amended tax returns for 2013 If the tax matter described on line 3 of Form 2848 concerns one of these matters specifically, check the box on line 4. Example of 1040x amended tax returns for 2013 If this box is checked, the representative should mail or fax the power of attorney to the IRS office handling the matter. Example of 1040x amended tax returns for 2013 Otherwise, the representative should bring a copy of the power of attorney to each meeting with the IRS. Example of 1040x amended tax returns for 2013 Where To File a Power of Attorney Generally, you can mail or fax a paper Form 2848 directly to the IRS. Example of 1040x amended tax returns for 2013 To determine where you should file Form 2848, see Where To File in the instructions for Form 2848. Example of 1040x amended tax returns for 2013 If Form 2848 is for a specific use, mail or fax it to the office handling that matter. Example of 1040x amended tax returns for 2013 For more information on specific use, see the Instructions for Form 2848, line 4. Example of 1040x amended tax returns for 2013 FAX copies. Example of 1040x amended tax returns for 2013   The IRS will accept a copy of a power of attorney that is submitted by facsimile transmission (fax). Example of 1040x amended tax returns for 2013 If you choose to file a power of attorney by fax, be sure the appropriate IRS office is equipped to accept this type of transmission. Example of 1040x amended tax returns for 2013 Your representative may be able to file Form 2848 electronically via the IRS website. Example of 1040x amended tax returns for 2013 For more information, your representative can go to www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov and under the Tax Professionals tab, click on e-services–Online Tools for Tax Professionals. Example of 1040x amended tax returns for 2013 If you complete Form 2848 for electronic signature authorization, do not file Form 2848 with the IRS. Example of 1040x amended tax returns for 2013 Instead, give it to your representative, who will retain the document. Example of 1040x amended tax returns for 2013 Updating a power of attorney. Example of 1040x amended tax returns for 2013   Submit any update or modification to an existing power of attorney in writing. Example of 1040x amended tax returns for 2013 Your signature (or the signature of the individual(s) authorized to sign on your behalf) is required. Example of 1040x amended tax returns for 2013 Do this by sending the updated Form 2848 or non-IRS power of attorney to the IRS office(s) where you previously sent the original(s), including the center where the related return was, or will be filed. Example of 1040x amended tax returns for 2013   A recognized representative may substitute or delegate authority if you specifically authorize your representative to substitute or delegate representation in the original power of attorney. Example of 1040x amended tax returns for 2013 To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed. Example of 1040x amended tax returns for 2013 A written notice of substitution or delegation signed by the recognized representative. Example of 1040x amended tax returns for 2013 A written declaration of representative made by the new representative. Example of 1040x amended tax returns for 2013 A copy of the power of attorney that specifically authorizes the substitution or delegation. Example of 1040x amended tax returns for 2013 Retention/Revocation of Prior Power(s) of Attorney A newly filed power of attorney concerning the same matter will revoke a previously filed power of attorney. Example of 1040x amended tax returns for 2013 However, the new power of attorney will not revoke the prior power of attorney if it specifically states it does not revoke such prior power of attorney and either of the following are attached to the new power of attorney. Example of 1040x amended tax returns for 2013 A copy of the unrevoked prior power of attorney, or A statement signed by the taxpayer listing the name and address of each representative authorized under the prior unrevoked power of attorney. Example of 1040x amended tax returns for 2013 Note. Example of 1040x amended tax returns for 2013 The filing of Form 2848 will not revoke any  Form 8821 that is in effect. Example of 1040x amended tax returns for 2013 Revocation of Power of Attorney/Withdrawal of Representative If you want to revoke an existing power of attorney and do not want to name a new representative, or if a representative wants to withdraw from representation, mail or fax a copy of the previously executed power of attorney to the IRS, or if the power of attorney is for a specific matter, to the IRS office handling the matter. Example of 1040x amended tax returns for 2013 If the taxpayer is revoking the power of attorney, the taxpayer must write “REVOKE” across the top of the first page with a current signature and date below this annotation. Example of 1040x amended tax returns for 2013 If the representative is withdrawing from the representation, the representative must write “WITHDRAW” across the top of the first page with a current signature and date below this annotation. Example of 1040x amended tax returns for 2013 If you do not have a copy of the power of attorney you want to revoke or withdraw, send a statement to the IRS. Example of 1040x amended tax returns for 2013 The statement of revocation or withdrawal must indicate that the authority of the power of attorney is revoked or withdrawn, list the matters and periods, and must be signed and dated by the taxpayer or representative as applicable. Example of 1040x amended tax returns for 2013 If the taxpayer is revoking, list the name and address of each recognized representative whose authority is revoked. Example of 1040x amended tax returns for 2013 When the taxpayer is completely revoking authority, the form should state “remove all years/periods” instead of listing the specific tax matter, years, or periods. Example of 1040x amended tax returns for 2013 If the representative is withdrawing, list the name, TIN, and address (if known) of the taxpayer. Example of 1040x amended tax returns for 2013 To revoke a specific use power of attorney, send the power of attorney or statement of revocation to the IRS office handling your case, using the above instructions. Example of 1040x amended tax returns for 2013 A power of attorney held by a student will be recorded on the CAF system for 130 days from the receipt date. Example of 1040x amended tax returns for 2013 If you are authorizing a student to represent you after that time, you will need to submit a current and valid Form 2848. Example of 1040x amended tax returns for 2013 When Is a Power of Attorney Not Required? A power of attorney is not required when the third party is not dealing with the IRS as your representative. Example of 1040x amended tax returns for 2013 The following situations do not require a power of attorney. Example of 1040x amended tax returns for 2013 Providing information to the IRS. Example of 1040x amended tax returns for 2013 Authorizing the disclosure of tax return information through Form 8821, Tax Information Authorization, or other written or oral disclosure consent. Example of 1040x amended tax returns for 2013 Allowing the IRS to discuss return information with a third party via the checkbox provided on a tax return or other document. Example of 1040x amended tax returns for 2013 Allowing a tax matters partner or person (TMP) to perform acts for the partnership. Example of 1040x amended tax returns for 2013 Allowing the IRS to discuss return information with a fiduciary. Example of 1040x amended tax returns for 2013 How Do I Fill Out Form 2848? The following example illustrates how to complete Form 2848. Example of 1040x amended tax returns for 2013 The two completed forms for this example are shown on the next pages. Example of 1040x amended tax returns for 2013 Example. Example of 1040x amended tax returns for 2013 Stan and Mary Doe have been notified that their joint tax returns (Forms 1040) for 2009, 2010, and 2011 are being examined. Example of 1040x amended tax returns for 2013 They have decided to appoint Jim Smith, an enrolled agent, to represent them in this matter and any future matters concerning these returns. Example of 1040x amended tax returns for 2013 Jim, who has prepared returns at the same location for years, already has a Centralized Authorization File (CAF) number assigned to him. Example of 1040x amended tax returns for 2013 Mary does not want Jim to sign any agreements on her behalf, but Stan is willing to have Jim do so. Example of 1040x amended tax returns for 2013 They want copies of all notices and written communications sent to Jim. Example of 1040x amended tax returns for 2013 This is the first time Stan and Mary have given power of attorney to anyone. Example of 1040x amended tax returns for 2013 They should each complete a Form 2848 as follows. Example of 1040x amended tax returns for 2013 Line 1—Taxpayer information. Example of 1040x amended tax returns for 2013   Stan and Mary must each file a separate Form 2848. Example of 1040x amended tax returns for 2013 On his separate Form 2848, Stan enters his name, street address, and social security number in the spaces provided. Example of 1040x amended tax returns for 2013 Mary does likewise on her separate Form 2848. Example of 1040x amended tax returns for 2013 Line 2—Representative(s). Example of 1040x amended tax returns for 2013   On their separate Forms 2848, Stan and Mary each enters the name and current address of their chosen representative, Jim Smith. Example of 1040x amended tax returns for 2013 Both Stan and Mary want Jim Smith to receive notices and communications concerning the matters identified in line 3, so on their separate Forms 2848, Stan and Mary each checks the box in the first column of line 2. Example of 1040x amended tax returns for 2013 They also enter Mr. Example of 1040x amended tax returns for 2013 Smith's CAF number, his telephone number, and his fax number. Example of 1040x amended tax returns for 2013 Mr. Example of 1040x amended tax returns for 2013 Smith's address, telephone number, and fax number have not changed since the IRS issued his CAF number, so Stan and Mary do not check the boxes in the second column. Example of 1040x amended tax returns for 2013 Line 3—Tax Matters. Example of 1040x amended tax returns for 2013   On their separate Forms 2848, Stan and Mary each enters “income” for the type of tax, “1040” for the form number, and “2009, 2010, and 2011” for the tax years. Example of 1040x amended tax returns for 2013 Line 4—Specific use not recorded on Centralized Authorization File (CAF). Example of 1040x amended tax returns for 2013   On their separate Forms 2848, Stan and Mary make no entry on this line because they do not want to restrict the use of their powers of attorney to a specific use that is not recorded on the CAF. Example of 1040x amended tax returns for 2013 See Preparation of Form — Helpful Hints, earlier. Example of 1040x amended tax returns for 2013 Line 5—Acts authorized. Example of 1040x amended tax returns for 2013   Mary wants to sign any agreement that reflects changes to her and Stan's joint 2009, 2010, and 2011 income tax liability, so she writes “Taxpayer must sign any agreement form” on line 5 of her Form 2848. Example of 1040x amended tax returns for 2013 Stan does not wish to restrict the authority of Jim Smith in this regard, so he leaves line 5 of his Form 2848 blank. Example of 1040x amended tax returns for 2013 If either Mary or Stan had chosen, they could have listed other restrictions on line 5 of their separate Forms 2848. Example of 1040x amended tax returns for 2013 Line 6—Retention/revocation of prior power(s) of attorney. Example of 1040x amended tax returns for 2013   Stan and Mary are each filing their first powers of attorney, so they make no entry on this line. Example of 1040x amended tax returns for 2013 However, if they had filed prior powers of attorney, the filing of this current power would revoke any earlier ones for the same tax matter(s) unless they checked the box on line 6 and attached a copy of the prior power of attorney that they wanted to remain in effect. Example of 1040x amended tax returns for 2013   If Mary later decides that she can handle the examination on her own, she can revoke her power of attorney even though Stan does not revoke his power of attorney. Example of 1040x amended tax returns for 2013 (See Revocation of Power of Attorney/Withdrawal of Representative, earlier, for the special rules that apply. Example of 1040x amended tax returns for 2013 ) Line 7—Signature of taxpayer. Example of 1040x amended tax returns for 2013   Stan and Mary each signs and dates his or her Form 2848. Example of 1040x amended tax returns for 2013 If a taxpayer does not sign, the IRS cannot accept the form. Example of 1040x amended tax returns for 2013 Part II—Declaration of Representative. Example of 1040x amended tax returns for 2013   Jim Smith must complete this part of Form 2848. Example of 1040x amended tax returns for 2013 If he does not sign this part, the IRS cannot accept the form. Example of 1040x amended tax returns for 2013 What Happens to the Power of Attorney When Filed? A power of attorney will be recognized after it is received, reviewed, and determined by the IRS to contain the required information. Example of 1040x amended tax returns for 2013 However, until a power of attorney is entered on the CAF system, IRS personnel may be unaware of the authority of the person you have named to represent you. Example of 1040x amended tax returns for 2013 Therefore, during this interim period, IRS personnel may request that you or your representative bring a copy to any meeting with the IRS. Example of 1040x amended tax returns for 2013 This image is too large to be displayed in the current screen. Example of 1040x amended tax returns for 2013 Please click the link to view the image. Example of 1040x amended tax returns for 2013 Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Example of 1040x amended tax returns for 2013 Please click the link to view the image. Example of 1040x amended tax returns for 2013 Filled-in Form 2848 - Page 2 This image is too large to be displayed in the current screen. Example of 1040x amended tax returns for 2013 Please click the link to view the image. Example of 1040x amended tax returns for 2013 Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Example of 1040x amended tax returns for 2013 Please click the link to view the image. Example of 1040x amended tax returns for 2013 Filled-in Form 2848 - Page 2 Processing and Handling How the power of attorney is processed and handled depends on whether it is a complete or incomplete document. Example of 1040x amended tax returns for 2013 Incomplete document. Example of 1040x amended tax returns for 2013   If Form 2848 is incomplete, the IRS will attempt to secure the missing information either by writing or telephoning you or your representative. Example of 1040x amended tax returns for 2013 For example, if your signature or signature date is missing, the IRS will contact you. Example of 1040x amended tax returns for 2013 If information concerning your representative is missing and information sufficient to make a contact (such as an address and/or a telephone number) is on the document, the IRS will try to contact your representative. Example of 1040x amended tax returns for 2013   In either case, the power of attorney is not considered valid until all required information is entered on the document. Example of 1040x amended tax returns for 2013 The individual(s) named as representative(s) will not be recognized to practice before the IRS, on your behalf, until the document is complete and accepted by the IRS. Example of 1040x amended tax returns for 2013 Complete document. Example of 1040x amended tax returns for 2013   If the power of attorney is complete and valid, the IRS will take action to recognize the representative. Example of 1040x amended tax returns for 2013 In most instances, this includes processing the document on the CAF system. Example of 1040x amended tax returns for 2013 Recording the data on the CAF system enables the IRS to direct copies of mailings to authorized representatives and to readily recognize the scope of authority granted. Example of 1040x amended tax returns for 2013 Documents not processed on CAF. Example of 1040x amended tax returns for 2013   Specific-use powers of attorney are not processed on the CAF system (see Preparation of Form – Helpful Hints, earlier). Example of 1040x amended tax returns for 2013 For example, a power of attorney that is a one-time or specific-issue grant of authority is not processed on the CAF system. Example of 1040x amended tax returns for 2013 These documents remain with the related case files. Example of 1040x amended tax returns for 2013 In this situation, you should check the box on line 4 of Form 2848. Example of 1040x amended tax returns for 2013 In these situations, the representative should bring a copy of the power of attorney to each meeting with the IRS. Example of 1040x amended tax returns for 2013 Dealing With the Representative After a valid power of attorney is filed, the IRS will recognize your representative. Example of 1040x amended tax returns for 2013 However, if it appears the representative is responsible for unreasonably delaying or hindering the prompt disposition of an IRS matter by failing to furnish, after repeated requests, nonprivileged information, the IRS can contact you directly. Example of 1040x amended tax returns for 2013 For example, in most instances in which a power of attorney is recognized, the IRS will contact the representative to set up appointments and to provide lists of required items. Example of 1040x amended tax returns for 2013 However, if the representative is unavailable, does not respond to repeated requests, and does not provide required items (other than items considered privileged), the IRS can bypass your representative and contact you directly. Example of 1040x amended tax returns for 2013 If a representative engages in conduct described above, the matter can be referred to the Office of Professional Responsibility for consideration of possible disciplinary action. Example of 1040x amended tax returns for 2013 Notices and other correspondence. Example of 1040x amended tax returns for 2013   If you have a recognized representative, you and the representative will routinely receive notices and other correspondence from the IRS (either the original or a copy) if you checked the box in the left column of line 2 of Form 2848. Example of 1040x amended tax returns for 2013 If the power of attorney is processed on the CAF system, the IRS will send your representative(s) a duplicate of all computer-generated correspondence that is sent to you. Example of 1040x amended tax returns for 2013 This includes notices and letters produced either at the Martinsburg Computing Center, or other IRS centers. Example of 1040x amended tax returns for 2013 The IRS employee handling the case is responsible for ensuring that the original and any requested copies of each manually-generated correspondence are sent to you and your representative(s) in accordance with your authorization. Example of 1040x amended tax returns for 2013 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. Example of 1040x amended tax returns for 2013 By selecting the method that is best for you, you will have quick and easy access to tax help. Example of 1040x amended tax returns for 2013 Free help with your return. Example of 1040x amended tax returns for 2013   Free help in preparing your return is available nationwide from IRS-certified volunteers. Example of 1040x amended tax returns for 2013 The Volunteer Income Tax Assistance (VITA) program is designed to help low and moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Example of 1040x amended tax returns for 2013 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Example of 1040x amended tax returns for 2013 To find the nearest VITA or TCE site, visit IRS. Example of 1040x amended tax returns for 2013 gov or call 1-800-906-9887 or 1-800-829-1040. Example of 1040x amended tax returns for 2013   As part of the TCE program, AARP offers the Tax-Aide counseling program. Example of 1040x amended tax returns for 2013 To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Example of 1040x amended tax returns for 2013 aarp. Example of 1040x amended tax returns for 2013 org/money/taxaide. Example of 1040x amended tax returns for 2013   For more information on these programs, go to IRS. Example of 1040x amended tax returns for 2013 gov and enter keyword “VITA” in the upper right-hand corner. Example of 1040x amended tax returns for 2013 Internet. Example of 1040x amended tax returns for 2013 You can access the IRS website at IRS. Example of 1040x amended tax returns for 2013 gov 24 hours a day, 7 days a week to: E-file your return. Example of 1040x amended tax returns for 2013 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Example of 1040x amended tax returns for 2013 Check the status of your refund. Example of 1040x amended tax returns for 2013 Go to IRS. Example of 1040x amended tax returns for 2013 gov and click on Where's My Refund. Example of 1040x amended tax returns for 2013 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Example of 1040x amended tax returns for 2013 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Example of 1040x amended tax returns for 2013 Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Example of 1040x amended tax returns for 2013 Download forms, including talking tax forms, instructions, and publications. Example of 1040x amended tax returns for 2013 Order IRS products online. Example of 1040x amended tax returns for 2013 Research your tax questions online. Example of 1040x amended tax returns for 2013 Search publications online by topic or keyword. Example of 1040x amended tax returns for 2013 Use the online Internal Revenue Code, regulations, or other official guidance. Example of 1040x amended tax returns for 2013 View Internal Revenue Bulletins (IRBs) published in the last few years. Example of 1040x amended tax returns for 2013 Figure your withholding allowances using the withholding calculator online at www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/individuals. Example of 1040x amended tax returns for 2013 Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/individuals. Example of 1040x amended tax returns for 2013 Sign up to receive local and national tax news by email. Example of 1040x amended tax returns for 2013 Get information on starting and operating a small business. Example of 1040x amended tax returns for 2013 Phone. Example of 1040x amended tax returns for 2013 Many services are available by phone. Example of 1040x amended tax returns for 2013   Ordering forms, instructions, and publications. Example of 1040x amended tax returns for 2013 Call 1-800-TAX -FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Example of 1040x amended tax returns for 2013 You should receive your order within 10 days. Example of 1040x amended tax returns for 2013 Asking tax questions. Example of 1040x amended tax returns for 2013 Call the IRS with your tax questions at 1-800-829-1040. Example of 1040x amended tax returns for 2013 Solving problems. Example of 1040x amended tax returns for 2013 You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Example of 1040x amended tax returns for 2013 An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Example of 1040x amended tax returns for 2013 Call your local Taxpayer Assistance Center for an appointment. Example of 1040x amended tax returns for 2013 To find the number, go to www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Example of 1040x amended tax returns for 2013 TTY/TDD equipment. Example of 1040x amended tax returns for 2013 If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Example of 1040x amended tax returns for 2013 TeleTax topics. Example of 1040x amended tax returns for 2013 Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Example of 1040x amended tax returns for 2013 Refund information. Example of 1040x amended tax returns for 2013 To check the status of your refund, call 1-800-829-1954 or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Example of 1040x amended tax returns for 2013 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Example of 1040x amended tax returns for 2013 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Example of 1040x amended tax returns for 2013 Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Example of 1040x amended tax returns for 2013 If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Example of 1040x amended tax returns for 2013 Other refund information. Example of 1040x amended tax returns for 2013 To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Example of 1040x amended tax returns for 2013 Evaluating the quality of our telephone services. Example of 1040x amended tax returns for 2013 To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Example of 1040x amended tax returns for 2013 One method is for a second IRS representative to listen in on or record random telephone calls. Example of 1040x amended tax returns for 2013 Another is to ask some callers to complete a short survey at the end of the call. Example of 1040x amended tax returns for 2013 Walk-in. Example of 1040x amended tax returns for 2013 Many products and services are available on a walk-in basis. Example of 1040x amended tax returns for 2013   Products. Example of 1040x amended tax returns for 2013 You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Example of 1040x amended tax returns for 2013 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. Example of 1040x amended tax returns for 2013 Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Example of 1040x amended tax returns for 2013 Services. Example of 1040x amended tax returns for 2013 You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Example of 1040x amended tax returns for 2013 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Example of 1040x amended tax returns for 2013 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are 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. Example of 1040x amended tax returns for 2013 No appointment is necessary—just walk in. Example of 1040x amended tax returns for 2013 If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Example of 1040x amended tax returns for 2013 A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Example of 1040x amended tax returns for 2013 If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Example of 1040x amended tax returns for 2013 All other issues will be handled without an appointment. Example of 1040x amended tax returns for 2013 To find the number of your local office, go to  www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Example of 1040x amended tax returns for 2013 Mail. Example of 1040x amended tax returns for 2013 You can send your order for forms, instructions, and publications to the address below. Example of 1040x amended tax returns for 2013 You should receive a response within 10 days after your request is received. Example of 1040x amended tax returns for 2013  Internal Revenue Service 1201 N. Example of 1040x amended tax returns for 2013 Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Example of 1040x amended tax returns for 2013   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Example of 1040x amended tax returns for 2013 Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Example of 1040x amended tax returns for 2013 We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Example of 1040x amended tax returns for 2013 Remember, the worst thing you can do is nothing at all. Example of 1040x amended tax returns for 2013   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Example of 1040x amended tax returns for 2013 You face (or your business is facing) an immediate threat of adverse action. Example of 1040x amended tax returns for 2013 You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Example of 1040x amended tax returns for 2013   If you qualify for our help, we’ll do everything we can to get your problem resolved. Example of 1040x amended tax returns for 2013 You will be assigned to one advocate who will be with you at every turn. Example of 1040x amended tax returns for 2013 We have offices in every state, the District of Columbia, and Puerto Rico. Example of 1040x amended tax returns for 2013 Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Example of 1040x amended tax returns for 2013 And our services are always free. Example of 1040x amended tax returns for 2013   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Example of 1040x amended tax returns for 2013 Our tax toolkit at www. Example of 1040x amended tax returns for 2013 TaxpayerAdvocate. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov can help you understand these rights. Example of 1040x amended tax returns for 2013   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/advocate. Example of 1040x amended tax returns for 2013 You can also call our toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Example of 1040x amended tax returns for 2013   TAS also handles large-scale or systemic problems that affect many taxpayers. Example of 1040x amended tax returns for 2013 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/advocate. Example of 1040x amended tax returns for 2013 Low Income Taxpayer Clinics (LITCs). Example of 1040x amended tax returns for 2013   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Example of 1040x amended tax returns for 2013 Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Example of 1040x amended tax returns for 2013 These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Example of 1040x amended tax returns for 2013 Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Example of 1040x amended tax returns for 2013 For more information and to find a clinic near you, see the LITC page on www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Example of 1040x amended tax returns for 2013 This publication is also available by calling 1-800-829-3676 or at your local IRS office. Example of 1040x amended tax returns for 2013 Free tax services. Example of 1040x amended tax returns for 2013   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Example of 1040x amended tax returns for 2013 Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Example of 1040x amended tax returns for 2013 The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Example of 1040x amended tax returns for 2013 The majority of the information and services listed in this publication are available to you free of charge. Example of 1040x amended tax returns for 2013 If there is a fee associated with a resource or service, it is listed in the publication. Example of 1040x amended tax returns for 2013   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Example of 1040x amended tax returns for 2013 DVD for tax products. Example of 1040x amended tax returns for 2013 You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Example of 1040x amended tax returns for 2013 Prior-year forms, instructions, and publications. Example of 1040x amended tax returns for 2013 Tax Map: an electronic research tool and finding aid. Example of 1040x amended tax returns for 2013 Tax law frequently asked questions. Example of 1040x amended tax returns for 2013 Tax Topics from the IRS telephone response system. Example of 1040x amended tax returns for 2013 Internal Revenue Code—Title 26 of the U. Example of 1040x amended tax returns for 2013 S. Example of 1040x amended tax returns for 2013 Code. Example of 1040x amended tax returns for 2013 Links to other Internet based Tax Research Materials. Example of 1040x amended tax returns for 2013 Fill-in, print, and save features for most tax forms. Example of 1040x amended tax returns for 2013 Internal Revenue Bulletins. Example of 1040x amended tax returns for 2013 Toll-free and email technical support. Example of 1040x amended tax returns for 2013 Two releases during the year. Example of 1040x amended tax returns for 2013  – The first release will ship the beginning of January. Example of 1040x amended tax returns for 2013  – The final release will ship the beginning of March. Example of 1040x amended tax returns for 2013 Purchase the DVD from National Technical Information Service (NTIS) at www. Example of 1040x amended tax returns for 2013 irs. Example of 1040x amended tax returns for 2013 gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Example of 1040x amended tax returns for 2013 Prev  Up  Next   Home   More Online Publications