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Free File State And Federal Taxes

Free file state and federal taxes Publication 80 - Main Content Table of Contents Introduction 1. Free file state and federal taxes Employer Identification Number (EIN) 2. Free file state and federal taxes Who Are Employees?Tests. Free file state and federal taxes Business Owned and Operated by Spouses Farm Crew Leaders 3. Free file state and federal taxes Employee's Social Security Number (SSN)Registering for SSNVS. Free file state and federal taxes 4. Free file state and federal taxes Wages and Other CompensationFringe Benefits 5. Free file state and federal taxes TipsOrdering rule. Free file state and federal taxes 6. Free file state and federal taxes Social Security and Medicare Taxes for FarmworkersThe $150 Test or the $2,500 Test 7. Free file state and federal taxes How To Figure Social Security and Medicare TaxesHousehold and agricultural employers. Free file state and federal taxes 8. Free file state and federal taxes Depositing TaxesPayment with Return When To Deposit How To Deposit Deposit Penalties 9. Free file state and federal taxes Employer's ReturnsReporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Prior Period Adjustments 10. Free file state and federal taxes Wage and Tax StatementsWaiver. Free file state and federal taxes 11. Free file state and federal taxes Federal Unemployment (FUTA) Tax—U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands Employers Only How To Get Tax Help Introduction This publication is for employers whose principal place of business is in the U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, or who have employees who are subject to income tax withholding for any of these jurisdictions. Free file state and federal taxes Employers and employees in these areas are generally subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Free file state and federal taxes See section 6 and section 7 for more information. Free file state and federal taxes This publication summarizes employer responsibilities to collect, pay, and report these taxes. Free file state and federal taxes Whenever the term “United States” is used in this publication, it includes U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Free file state and federal taxes This publication also provides employers in the U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands with a summary of their responsibilities in connection with the tax under the Federal Unemployment Tax Act, known as FUTA tax. Free file state and federal taxes See section 11 for more information. Free file state and federal taxes Except as shown in the table in section 12, social security, Medicare, and FUTA taxes apply to every employer who pays taxable wages to employees or who has employees who report tips. Free file state and federal taxes This publication does not include information relating to the self-employment tax (for social security and Medicare of self-employed persons). Free file state and federal taxes See Publication 570, Tax Guide for Individuals With Income From U. Free file state and federal taxes S. Free file state and federal taxes Possessions, if you need this information. Free file state and federal taxes This publication also does not include information relating to income tax withholding. Free file state and federal taxes In U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, contact your local tax department for information about income tax withholding. Free file state and federal taxes See Publication 15 (Circular E), for information on U. Free file state and federal taxes S. Free file state and federal taxes federal income tax withholding. Free file state and federal taxes Comments and suggestions. Free file state and federal taxes   We welcome your comments about this publication and your suggestions for future editions. Free file state and federal taxes   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free file state and federal taxes NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free file state and federal taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free file state and federal taxes    You can also send us comments from www. Free file state and federal taxes irs. Free file state and federal taxes gov/formspubs. Free file state and federal taxes Click on More Information and then click on Comment on Tax Forms and Publications. Free file state and federal taxes   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Free file state and federal taxes 1. Free file state and federal taxes Employer Identification Number (EIN) An employer identification number (EIN) is a nine-digit number that the IRS issues. Free file state and federal taxes Its format is 00-0000000. Free file state and federal taxes It is used to identify the tax accounts of employers and certain other organizations and entities that have no employees. Free file state and federal taxes Use your EIN on all of the items that you send to the IRS and SSA for your business. Free file state and federal taxes If you do not have an EIN, you may apply for one online. Free file state and federal taxes Go to IRS. Free file state and federal taxes gov and click on the Apply for an EIN Online link under Tools. Free file state and federal taxes You may also apply for an EIN by calling 1-800-829-4933, (U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands only) or 267-941-1099 (toll call), or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Free file state and federal taxes Do not use a social security number (SSN) in place of an EIN. Free file state and federal taxes If you do not have an EIN by the time a return is due, file a paper return and enter “Applied For” and the date that you applied for it in the space shown for the number. Free file state and federal taxes If you took over another employer's business, do not use that employer's EIN. Free file state and federal taxes You should have only one EIN. Free file state and federal taxes If you have more than one, write to the IRS office where you file your returns using the “without a payment” address in the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943. Free file state and federal taxes Or call the IRS Business & Specialty Tax Line at 1-800-829-4933 (U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands only) or 267-941-1000 (toll call). Free file state and federal taxes Persons who are deaf, hard of hearing, or have a speech disability (TDD/TTY users) in the U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands may call 1-800-829-4059. Free file state and federal taxes The IRS will tell you which EIN to use. Free file state and federal taxes For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN, or Publication 583, Starting a Business and Keeping Records. Free file state and federal taxes 2. Free file state and federal taxes Who Are Employees? Generally, employees are defined either under common law or under special statutes for certain situations. Free file state and federal taxes See Publication 15-A, Employer's Supplemental Tax Guide, for details on statutory employees and nonemployees. Free file state and federal taxes Employee status under common law. Free file state and federal taxes   Generally, a worker who performs services for you is your employee if you can control what will be done and how it will be done. Free file state and federal taxes This is so even when you give the employee freedom of action. Free file state and federal taxes What matters is that you have the right to control the details of how the services are performed. Free file state and federal taxes See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Free file state and federal taxes    Generally, people in business for themselves are not employees. Free file state and federal taxes For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Free file state and federal taxes However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Free file state and federal taxes   If an employer-employee relationship exists, it does not matter what it is called. Free file state and federal taxes The employee may be called an agent or independent contractor. Free file state and federal taxes It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Free file state and federal taxes Statutory employees. Free file state and federal taxes   There are also some special definitions of employees for social security, Medicare, and FUTA taxes. Free file state and federal taxes   While the following persons may not be common law employees, they are considered employees for social security and Medicare purposes if the conditions under Tests , discussed later, are met. Free file state and federal taxes a. Free file state and federal taxes   An agent (or commission) driver who delivers food or beverages (other than milk) or picks up and delivers laundry or dry cleaning for someone else. Free file state and federal taxes b. Free file state and federal taxes   A full-time life insurance salesperson who sells primarily for one company. Free file state and federal taxes c. Free file state and federal taxes   A homeworker who works by the guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Free file state and federal taxes d. Free file state and federal taxes   A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Free file state and federal taxes The orders must be for merchandise for resale or supplies for use in the customer's business. Free file state and federal taxes The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Free file state and federal taxes Tests. Free file state and federal taxes   Withhold social security and Medicare taxes from statutory employees' wages if all three of the following tests apply. Free file state and federal taxes The service contract states or implies that almost all of the services are to be performed personally by them. Free file state and federal taxes They have little or no investment in the equipment and property used to perform the services (other than an investment in transportation facilities). Free file state and federal taxes The services are performed on a continuing basis for the same payer. Free file state and federal taxes Persons in a or d, earlier, are also employees for FUTA tax purposes if tests 1 through 3 are met (U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands only). Free file state and federal taxes   Publication 15-A gives examples of the employer-employee relationship. Free file state and federal taxes Statutory nonemployees. Free file state and federal taxes   Certain direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Free file state and federal taxes They are generally treated as self-employed for employment tax purposes. Free file state and federal taxes See Publication 15-A for details. Free file state and federal taxes H-2A agricultural workers. Free file state and federal taxes   On Form W-2, do not check box 13 (Statutory employee) as H-2A workers are not statutory employees. Free file state and federal taxes Treating employees as nonemployees. Free file state and federal taxes   If you incorrectly treated an employee as a nonemployee and did not withhold social security and Medicare taxes, you will be liable for the taxes. Free file state and federal taxes See Treating employees as nonemployees in section 2 of Publication 15 (Circular E), for details on Internal Revenue Code section 3509, which may apply. Free file state and federal taxes IRS help. Free file state and federal taxes   If you want the IRS to determine if a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Free file state and federal taxes Voluntary Classification Settlement Program (VCSP). Free file state and federal taxes   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Free file state and federal taxes To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Free file state and federal taxes For more information, visit IRS. Free file state and federal taxes gov and enter “VCSP” in the search box. Free file state and federal taxes Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Free file state and federal taxes See Publication 541, Partnerships, for more details. Free file state and federal taxes The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Free file state and federal taxes Exception—Qualified Joint Venture. Free file state and federal taxes   If you and your spouse materially participate as the only members of a jointly owned and operated business, and you file a joint Form 1040, U. Free file state and federal taxes S. Free file state and federal taxes Individual Income Tax Return, or joint Form 1040-SS, U. Free file state and federal taxes S. Free file state and federal taxes Self-Employment Tax Return—U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or Puerto Rico, you can make a joint election to be taxed as a qualified joint venture instead of a partnership. Free file state and federal taxes See the Instructions for Schedule C (Form 1040) or the Instructions for Form 1040-SS. Free file state and federal taxes Spouses electing qualified joint venture status are treated as sole proprietors for federal tax purposes. Free file state and federal taxes Either of the sole proprietor spouses may report and pay the employment taxes due on wages paid to the employees, using the EIN of that spouse’s sole proprietorship. Free file state and federal taxes For more information on qualified joint ventures, visit IRS. Free file state and federal taxes gov and enter “qualified joint venture” in the search box. Free file state and federal taxes Farm Crew Leaders You are an employer of farmworkers if you are a crew leader. Free file state and federal taxes A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. Free file state and federal taxes If there is no written agreement between you and the farm operator stating that you are his or her employee, and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. Free file state and federal taxes 3. Free file state and federal taxes Employee's Social Security Number (SSN) An employee's social security number (SSN) consists of nine digits separated as follows: 000-00-0000. Free file state and federal taxes You must get each employee's name and SSN and enter them on Form W-2AS, W-2CM, W-2GU, or W-2VI. Free file state and federal taxes If you do not report the employee's correct name and SSN, you may owe a penalty unless you have reasonable cause. Free file state and federal taxes See Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Free file state and federal taxes Employee's social security card. Free file state and federal taxes   You should ask the employee to show you his or her social security card. Free file state and federal taxes The employee may show the card if it is available. Free file state and federal taxes Do not accept a social security card that says “Not valid for employment. Free file state and federal taxes ” A social security number issued with this legend does not permit employment. Free file state and federal taxes You may, but you are not required to, photocopy the social security card if the employee provides it. Free file state and federal taxes If an employee does not have a social security card or needs a new one, the employee should apply for one on Form SS-5 and submit the necessary documentation. Free file state and federal taxes The employee must complete and sign Form SS-5; it cannot be filed by the employer. Free file state and federal taxes You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. Free file state and federal taxes If your employee has applied for an SSN but has not received the card before you must file your Form W-2 reports, and you are filing your reports on paper, enter “Applied For” in box d. Free file state and federal taxes Enter all zeroes in the SSN field if filing electronically. Free file state and federal taxes When the employee receives the SSN, file Copy A of Form W-2c with SSA to show the employee's SSN. Free file state and federal taxes Correctly record the employee's name and SSN. Free file state and federal taxes   Record the name and number of each employee as they appear on his or her social security card. Free file state and federal taxes If the name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. Free file state and federal taxes Continue to use the old name until the employee shows you the replacement social security card with the corrected name. Free file state and federal taxes   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2AS, W-2CM, W-2GU, or W-2VI. Free file state and federal taxes It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. Free file state and federal taxes Where to get and file social security number application forms. Free file state and federal taxes    U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands—U. Free file state and federal taxes S. Free file state and federal taxes Social Security Administration, 8000 Nisky Center, First Floor, Suite 2, St. Free file state and federal taxes Thomas, VI 00802. Free file state and federal taxes  Guam—U. Free file state and federal taxes S. Free file state and federal taxes Social Security Administration, 655 Harmon Loop Road, Suite 300, Dededo, GU 96929. Free file state and federal taxes  American Samoa—U. Free file state and federal taxes S. Free file state and federal taxes Social Security Administration, Pago Plaza, Suite 117, Pago Pago, AS 96799. Free file state and federal taxes  Commonwealth of the Northern Mariana Islands—U. Free file state and federal taxes S. Free file state and federal taxes Social Security Administration, MH Building, Suite 201, Saipan, MP 96950. Free file state and federal taxes Verification of social security numbers. Free file state and federal taxes   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Free file state and federal taxes Visit www. Free file state and federal taxes socialsecurity. Free file state and federal taxes gov/employer/ssnv. Free file state and federal taxes htm for more information. Free file state and federal taxes Registering for SSNVS. Free file state and federal taxes   You must register online and receive authorization from your employer to use SSNVS. Free file state and federal taxes To register, visit SSA's website at www. Free file state and federal taxes ssa. Free file state and federal taxes gov/employer and click on the Business Services Online link. Free file state and federal taxes Follow the registration instructions to obtain a user identification (ID) and password. Free file state and federal taxes You will need to provide the following information about yourself and your company. Free file state and federal taxes Name. Free file state and federal taxes SSN. Free file state and federal taxes Date of birth. Free file state and federal taxes Type of employer. Free file state and federal taxes EIN. Free file state and federal taxes Company name, address, and telephone number. Free file state and federal taxes Email address. Free file state and federal taxes   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Free file state and federal taxes You must enter the activation code online to use SSNVS. Free file state and federal taxes 4. Free file state and federal taxes Wages and Other Compensation Generally, all wages are subject to social security and Medicare tax (and FUTA tax for U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands employers). Free file state and federal taxes However, wages subject to social security tax and FUTA tax are limited by a wage base amount that you pay to each employee for the year. Free file state and federal taxes The wage base for social security tax is $117,000 for 2014. Free file state and federal taxes After you pay $117,000 to an employee in 2014, including tips, do not withhold social security tax on any amount that you later pay to the employee for the year. Free file state and federal taxes The wage base for FUTA tax is $7,000 for 2014. Free file state and federal taxes All wages are subject to Medicare tax. Free file state and federal taxes The wages may be in cash or in other forms, such as an automobile for personal use. Free file state and federal taxes Wages include salaries, vacation allowances, bonuses, commissions, and fringe benefits. Free file state and federal taxes It does not matter how payments are measured or paid. Free file state and federal taxes See the table in section 12 for exceptions to social security, Medicare, and FUTA taxes on wages. Free file state and federal taxes See section 5 and section 6 for a discussion of how the rules apply to tips and farmworkers. Free file state and federal taxes Social security and Medicare taxes apply to most payments of sick pay, including payments by third parties such as insurance companies. Free file state and federal taxes Special rules apply to the reporting of third-party sick pay. Free file state and federal taxes For details, see Publication 15-A. Free file state and federal taxes Determine the value of noncash pay (such as goods, lodging, and meals) by its fair market value. Free file state and federal taxes However, see Fringe Benefits , later in this section. Free file state and federal taxes Except for farmworkers and household employees, this kind of pay may be subject to social security, Medicare, and FUTA taxes. Free file state and federal taxes Back pay, including retroactive wage increases (but not amounts paid as liquidated damages), is taxed as ordinary wages in the year paid. Free file state and federal taxes For information on reporting back pay to the Social Security Administration, see Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration. Free file state and federal taxes Travel and business expenses. Free file state and federal taxes   Payments to your employee for travel and other necessary expenses of your business generally are included in taxable wages if (a) your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, or (b) you advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount that he or she does not substantiate. Free file state and federal taxes Sick pay. Free file state and federal taxes   In general, sick pay is any amount that you pay, under a plan that you take part in, to an employee because of sickness or injury. Free file state and federal taxes These amounts are sometimes paid by a third party, such as an insurance company. Free file state and federal taxes In either case, these payments are subject to social security and Medicare taxes (and FUTA tax for U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands employers). Free file state and federal taxes Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Free file state and federal taxes Publication 15-A explains the employment tax rules that apply to sick pay, disability benefits, and similar payments to employees. Free file state and federal taxes Fringe Benefits Generally, fringe benefits are includible in the gross income of an employee and are subject to employment taxes. Free file state and federal taxes Examples of fringe benefits include the use of an automobile, aircraft flights that you provide, free or discounted commercial airline flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Free file state and federal taxes In general, the amount included in the employee's income is the excess of the fair market value of the benefit over the sum of any amount paid for it by the employee and any amount excluded by law. Free file state and federal taxes For more information, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Free file state and federal taxes When fringe benefits are treated as paid. Free file state and federal taxes   You can choose to treat certain noncash fringe benefits (including personal use of an automobile provided by you) as paid by the pay period, quarter, or on any other basis that you choose, but they must be treated as paid at least annually. Free file state and federal taxes You do not have to make a formal choice of payment dates or notify the IRS. Free file state and federal taxes You do not have to use the same basis for all employees. Free file state and federal taxes You may change methods as often as you like, as long as all benefits provided in a calendar year are treated as paid no later than December 31 of the calendar year. Free file state and federal taxes However, see Special accounting rule for fringe benefits provided during November and December , later in this section. Free file state and federal taxes   You can treat the value of a single taxable noncash fringe benefit as paid on one or more dates in the same calendar year, even if the employee gets the entire benefit at one time. Free file state and federal taxes However, once you elect the payment dates, you must report the taxes on your return in the same tax period in which you treated them as paid. Free file state and federal taxes This election does not apply to a fringe benefit where real property or investment personal property is transferred. Free file state and federal taxes Withholding social security and Medicare taxes on fringe benefits. Free file state and federal taxes   You add the value of fringe benefits to regular wages for a payroll period and figure social security and Medicare taxes on the total. Free file state and federal taxes   If you withhold less than the required amount of social security and Medicare taxes from the employee in a calendar year but report and pay the proper amount, you may recover the taxes from the employee. Free file state and federal taxes Depositing taxes on fringe benefits. Free file state and federal taxes   Once you choose payment dates for taxable noncash fringe benefits, you must deposit taxes in the same deposit period that you treat the fringe benefits as paid. Free file state and federal taxes You may make a reasonable estimate of the value of the fringe benefits. Free file state and federal taxes In general, the value of taxable noncash fringe benefits provided in a calendar year must be determined by January 31 of the following year. Free file state and federal taxes   You may claim a refund of overpayments or elect to have any overpayment applied to the next employment tax return. Free file state and federal taxes If deposits are underpaid, see Deposit Penalties in section 8. Free file state and federal taxes Valuation of vehicles provided to employees. Free file state and federal taxes    If you provide a vehicle to your employees, you may either determine the actual value of the benefit for the entire calendar year, taking into account the business use of the vehicle, or consider the entire use for the calendar year as personal and include 100% of the value of the vehicle in the employee's income. Free file state and federal taxes For reporting information to employees, see the box 14 instructions in the General Instructions for Forms W-2 and W-3. Free file state and federal taxes Special accounting rule for fringe benefits provided during November and December. Free file state and federal taxes   You may choose to treat the value of taxable noncash fringe benefits provided during November and December as paid in the next year. Free file state and federal taxes However, this applies only to those benefits that you actually provided during November and December, not to those you merely treated as paid during those months. Free file state and federal taxes   If you use this rule, you must notify each affected employee between the time of the employee's last paycheck of the calendar year and at or near the time that you give the employee Form W-2AS, W-2CM, W-2GU, or W-2VI. Free file state and federal taxes If you use the special accounting rule, your employee must also use it for the same period that you use it. Free file state and federal taxes You cannot use this rule for a fringe benefit of real property or tangible or intangible real property of a kind normally held for investment that is transferred to your employee. Free file state and federal taxes 5. Free file state and federal taxes Tips Tips that your employee receives from customers are generally subject to social security and Medicare withholding. Free file state and federal taxes Your employee must report cash tips to you by the 10th of the month after the month that the tips are received. Free file state and federal taxes The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Free file state and federal taxes Both directly and indirectly tipped employees must report tips to you. Free file state and federal taxes The report should not include tips that the employee paid out to other employees. Free file state and federal taxes No report is required for months when tips are less than $20. Free file state and federal taxes Your employees report tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Free file state and federal taxes They may also use Form 4070A, Employee's Daily Record of Tips, to keep a record of their tips. Free file state and federal taxes Both forms are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer, available at IRS. Free file state and federal taxes gov. Free file state and federal taxes The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period that the report covers, and The total tips received during the month or period. Free file state and federal taxes You are permitted to establish a system for electronic tip reporting by employees. Free file state and federal taxes See Regulations section 31. Free file state and federal taxes 6053-1(d). Free file state and federal taxes Collecting taxes on tips. Free file state and federal taxes   You must collect the employee social security and Medicare taxes on the employee's tips. Free file state and federal taxes You can also collect these taxes from the employee's wages or from other funds that he or she makes available. Free file state and federal taxes Stop collecting the employee social security tax when his or her total wages and tips for 2014 reach $117,000. Free file state and federal taxes Collect the employee Medicare tax for the whole year on all wages and tips. Free file state and federal taxes   You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the wage base limit. Free file state and federal taxes You are responsible for the employer Medicare tax for the whole year on all wages and tips. Free file state and federal taxes File Form 941-SS (or Form 944) to report withholding and employer taxes on tips. Free file state and federal taxes The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Free file state and federal taxes Ordering rule. Free file state and federal taxes   If, by the 10th of the month after the month you received an employee's report on tips, you do not have enough employee funds available to deduct the employee social security and Medicare tax on tips, you no longer have to collect it and are not liable for it. Free file state and federal taxes Reporting tips. Free file state and federal taxes   Report tips and any collected and uncollected social security in boxes 1, 5, 7, and 12 on Forms W-2AS, W-2CM, W-2GU, or W-2VI and on Form 941-SS, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Free file state and federal taxes Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Free file state and federal taxes Report an adjustment on Form 941-SS, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Free file state and federal taxes The table in section 12 shows how tips are treated for FUTA tax purposes. Free file state and federal taxes   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Free file state and federal taxes See Revenue Ruling 2012-18, 2012-26 I. Free file state and federal taxes R. Free file state and federal taxes B. Free file state and federal taxes 1032, available at www. Free file state and federal taxes irs. Free file state and federal taxes gov/irb/2012-26_IRB/ar07. Free file state and federal taxes html. Free file state and federal taxes 6. Free file state and federal taxes Social Security and Medicare Taxes for Farmworkers The tests described below apply only to services that are defined as agricultural labor (farmwork). Free file state and federal taxes In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Free file state and federal taxes For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. Free file state and federal taxes Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. Free file state and federal taxes A “share farmer” working for you is not your employee. Free file state and federal taxes However, the share farmer may be subject to self-employment tax. Free file state and federal taxes In general, share farming is an arrangement in which certain commodity products are shared between the farmer and the owner (or tenant) of the land. Free file state and federal taxes For details, see Regulations section 31. Free file state and federal taxes 3121(b)(16)-1. Free file state and federal taxes The $150 Test or the $2,500 Test All cash wages that you pay to any employee for farmwork are subject to social security and Medicare taxes if either of the following two tests is met. Free file state and federal taxes You pay cash wages to the employee of $150 or more in a year (count all cash wages paid on a time, piecework, or other basis) for farmwork. Free file state and federal taxes The $150 test applies separately to each farmworker that you employ. Free file state and federal taxes If you employ a family of workers, each member is treated separately. Free file state and federal taxes Do not count wages paid by other employers. Free file state and federal taxes The total that you pay for farmwork (cash and noncash) to all of your employees is $2,500 or more during the year. Free file state and federal taxes Exceptions. Free file state and federal taxes   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. Free file state and federal taxes   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. Free file state and federal taxes 7. Free file state and federal taxes How To Figure Social Security and Medicare Taxes The tax rate for social security is 6. Free file state and federal taxes 2% (amount withheld) each for the employer and employee (12. Free file state and federal taxes 4% total). Free file state and federal taxes The social security wage base limit is $117,000. Free file state and federal taxes The tax rate for Medicare is 1. Free file state and federal taxes 45% (amount withheld) each for the employee and employer (2. Free file state and federal taxes 9% total). Free file state and federal taxes There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. Free file state and federal taxes Multiply each wage payment by these percentages to figure the tax to withhold from employees. Free file state and federal taxes Employers report both the employee and employer shares on Forms 941-SS, 944, or Form 943 (farm employment). Free file state and federal taxes See section 5 for information on tips. Free file state and federal taxes Additional Medicare Tax withholding. Free file state and federal taxes   In addition to withholding Medicare tax at 1. Free file state and federal taxes 45%, you must withhold a 0. Free file state and federal taxes 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free file state and federal taxes You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free file state and federal taxes Additional Medicare Tax is only imposed on the employee. Free file state and federal taxes There is no employer share of Additional Medicare Tax. Free file state and federal taxes All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Free file state and federal taxes   For more information on what wages are subject to Medicare tax, see the chart Special Rules for Various Types of Employment and Payments in section 12. Free file state and federal taxes For more information on Additional Medicare Tax, visit IRS. Free file state and federal taxes gov and enter “Additional Medicare Tax” in the search box. Free file state and federal taxes Deducting the tax. Free file state and federal taxes   Deduct the employee tax from each wage payment. Free file state and federal taxes If you are not sure that the wages that you pay to a farmworker during the year will be taxable, you may either deduct the tax when you make the payments or wait until the $2,500 test or the $150 test explained in section 6 has been met. Free file state and federal taxes Employee's portion of taxes paid by employer. Free file state and federal taxes   If you pay your employee's social security and Medicare taxes without deducting them from the employee's pay, you must include the amount of the payments in the employee's wages for social security and Medicare taxes. Free file state and federal taxes This increase in the employee's wage payment for your payment of the employee's social security and Medicare taxes is also subject to employee social security and Medicare taxes. Free file state and federal taxes This again increases the amount of the additional taxes that you must pay. Free file state and federal taxes Household and agricultural employers. Free file state and federal taxes   This discussion does not apply to household and agricultural employers. Free file state and federal taxes If you pay a household or agricultural employee's social security and Medicare taxes, these payments must be included in the employee's wages. Free file state and federal taxes However, this wage increase due to the tax payments is not subject to social security or Medicare taxes as discussed in this section. Free file state and federal taxes See Publication 15-A for details. Free file state and federal taxes Sick pay payments. Free file state and federal taxes   Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. Free file state and federal taxes For details on third-party payers of sick pay, see Publication 15-A. Free file state and federal taxes 8. Free file state and federal taxes Depositing Taxes You must deposit social security and Medicare taxes if your tax liability (Form 941-SS, line 10; Form 944, line 7; or Form 943, line 11) is $2,500 or more for the tax return period. Free file state and federal taxes You must make the deposit by electronic funds transfer. Free file state and federal taxes For more information about electronic funds transfers, see How To Deposit , later in this section. Free file state and federal taxes Payment with Return $2,500 rule. Free file state and federal taxes   Instead of making deposits during the current quarter, you can pay your total Form 941-SS tax liability when you timely file Form 941-SS if: Your total Form 941-SS tax liability for either the current quarter or the preceding quarter is less than $2,500 and You do not incur a $100,000 next-day deposit obligation during the current quarter. Free file state and federal taxes   If you are not sure your total liability for the current quarter will be less than $2,500, (and your liability for the preceding quarter was not less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure to deposit penalties. Free file state and federal taxes Employers who have been notified to file Form 944 can pay their tax liability due for the fourth quarter with Form 944, if their fourth quarter tax liability is less than $2,500. Free file state and federal taxes Employers must have deposited any tax liability due for the first, second, and third quarters, according to the deposit rules, in order to avoid failure-to-deposit penalties for deposits due during those quarters. Free file state and federal taxes Only monthly schedule depositors are allowed to make an Accuracy of Deposits Rule payment with the return. Free file state and federal taxes Semiweekly schedule depositors must timely deposit the amount. Free file state and federal taxes See Accuracy of Deposits Rule and How To Deposit, later in this section. Free file state and federal taxes When To Deposit Under the rules discussed below, the only difference between farm and nonfarm workers' employment tax deposit rules is the lookback period. Free file state and federal taxes Therefore, farm and nonfarm workers are discussed together except where noted. Free file state and federal taxes Depending on your total taxes reported during a lookback period (discussed later), you are either a monthly schedule depositor or a semiweekly schedule depositor. Free file state and federal taxes The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often you pay your employees or how often you are required to make deposits. Free file state and federal taxes The terms identify which set of rules that you must follow when a tax liability arises (for example, when you have a payday). Free file state and federal taxes You will need to determine your deposit schedule for a calendar year based on the total employment taxes reported on Forms 941-SS, line 10; Form 944, line 7; or Form 943, line 9, for your lookback period (defined below). Free file state and federal taxes If you filed both Forms 941-SS and 941 during the lookback period, combine the tax liabilities for these returns for purposes of determining your deposit schedule. Free file state and federal taxes Determine your deposit schedule for Form 943 separately from Forms 941-SS and 941. Free file state and federal taxes Lookback period for employers of nonfarm workers. Free file state and federal taxes   The lookback period for Form 941-SS (or Form 941) consists of four quarters beginning July 1 of the second preceding year and ending June 30 of the prior year. Free file state and federal taxes These four quarters are your lookback period even if you did not report any taxes for any of the quarters. Free file state and federal taxes For 2014, the lookback period is July 1, 2012, through June 30, 2013. Free file state and federal taxes    Table 1. Free file state and federal taxes Lookback Period for Calendar Year 2014 Lookback Period July 1, 2012 Oct. Free file state and federal taxes 1, 2012 Jan. Free file state and federal taxes 1, 2013 Apr. Free file state and federal taxes 1, 2013 through through through through Sep. Free file state and federal taxes 30, 2012 Dec. Free file state and federal taxes 31, 2012 Mar. Free file state and federal taxes 31, 2013 June 30, 2013    The lookback period for Form 944 is the second calendar year preceding the current calendar year. Free file state and federal taxes For example, the lookback period for calendar year 2014 is calendar year 2012. Free file state and federal taxes In addition, for employers who filed Form 944 for 2012 or for 2013 and will file Form 941-SS (or Form 941) for 2014, the lookback period for 2014 is the second calendar year preceding the current calendar year, that is, 2012. Free file state and federal taxes Lookback period for employers of farmworkers. Free file state and federal taxes   The lookback period for Form 943 is the second calendar year preceding the current calendar year. Free file state and federal taxes The lookback period for calendar year 2014 is calendar year 2012. Free file state and federal taxes Adjustments to lookback period taxes. Free file state and federal taxes   To determine your taxes for the lookback period, use only the tax that you reported on the original returns (Forms 941-SS, 943, or 944). Free file state and federal taxes Do not include any adjustments shown on Form 941-X, 943-X, or 944-X. Free file state and federal taxes Example. Free file state and federal taxes   An employer originally reported total taxes of $45,000 for the lookback period. Free file state and federal taxes The employer discovered during January 2014 that the tax reported during the lookback period was understated by $10,000 and corrected this error by filing Form 941-X. Free file state and federal taxes The employer is a monthly schedule depositor for 2014 because the lookback period tax liabilities are based on the amounts originally reported, and they were $50,000 or less. Free file state and federal taxes Deposit Period The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. Free file state and federal taxes For monthly schedule depositors, the deposit period is a calendar month. Free file state and federal taxes The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. Free file state and federal taxes Monthly Deposit Schedule If your total tax reported for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. Free file state and federal taxes You must deposit taxes on wage payments made during a calendar month by the 15th day of the following month. Free file state and federal taxes New employers. Free file state and federal taxes   Your tax liability for any quarter in the lookback period before the date you started or acquired your business is considered to be zero. Free file state and federal taxes Therefore, you are a monthly schedule depositor for the first calendar year of your business (but see the $100,000 Next-Day Deposit Rule , later in this section). Free file state and federal taxes Semiweekly Deposit Schedule If your total tax reported for the lookback period is more than $50,000, you are a semiweekly schedule depositor for the current year. Free file state and federal taxes If you are a semiweekly schedule depositor, you must deposit on Wednesday and/or Friday, depending on what day of the week that you make wage payments, as follows. Free file state and federal taxes Deposit taxes on wage payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Free file state and federal taxes Deposit taxes on wage payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Free file state and federal taxes Semiweekly depositors are generally not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule , discussed later in this section, applies. Free file state and federal taxes For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 on the following Wednesday. Free file state and federal taxes If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. Free file state and federal taxes Semiweekly deposit period spanning two quarters. Free file state and federal taxes   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. Free file state and federal taxes Example. Free file state and federal taxes   If you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. Free file state and federal taxes Both deposits will be due on Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). Free file state and federal taxes Examples of Monthly and Semiweekly Schedules Employers of nonfarm workers. Free file state and federal taxes   Rose Co. Free file state and federal taxes reported Form 941-SS taxes as follows: 2013 Lookback Period 3rd Quarter 2011 $12,000 4th Quarter 2011 12,000 1st Quarter 2012 12,000 2nd Quarter 2012 12,000   $48,000 2014 Lookback Period 3rd Quarter 2012 $12,000 4th Quarter 2012 12,000 1st Quarter 2013 12,000 2nd Quarter 2013 15,000   $51,000 Rose Co. Free file state and federal taxes is a monthly schedule depositor for 2013 because its taxes for the four quarters in its lookback period ($48,000 for the 3rd quarter of 2011 through the 2nd quarter of 2012) were not more than $50,000. Free file state and federal taxes However, for 2014, Rose Co. Free file state and federal taxes is a semiweekly schedule depositor because the total taxes for the four quarters in its lookback period ($51,000 for the 3rd quarter of 2012 through the 2nd quarter of 2013) exceeded $50,000. Free file state and federal taxes Employers of farmworkers. Free file state and federal taxes   Red Co. Free file state and federal taxes reported taxes on its 2012 Form 943, line 9, of $48,000. Free file state and federal taxes On its 2013 Form 943, line 11, it reported taxes of $60,000. Free file state and federal taxes   Red Co. Free file state and federal taxes is a monthly schedule depositor for 2014 because its taxes for its lookback period ($48,000 for calendar year 2012) were not more than $50,000. Free file state and federal taxes However, for 2015, Red Co. Free file state and federal taxes is a semiweekly schedule depositor because the total taxes for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. Free file state and federal taxes New agricultural employers. Free file state and federal taxes   New agricultural employers filing Form 943 are monthly schedule depositors for the first and second calendar years of their business because their taxes for the lookback period (2 years) are considered to be zero. Free file state and federal taxes However, see the $100,000 Next-Day Deposit Rule , later in this section. Free file state and federal taxes Deposits on Business Days Only If a deposit due date falls on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. Free file state and federal taxes A business day is any day other than a Saturday, Sunday, or legal holiday. Free file state and federal taxes For example, if a deposit is required to be made on Friday, but Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). Free file state and federal taxes Semiweekly schedule depositors have at least 3 business days to make a deposit. Free file state and federal taxes If any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the required deposit. Free file state and federal taxes For example, if a semiweekly schedule depositor accumulated taxes for payments made on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). Free file state and federal taxes Legal holiday. Free file state and federal taxes   The term “legal holiday” means any legal holiday in the District of Columbia. Free file state and federal taxes Legal holidays for 2014 are listed below. Free file state and federal taxes January 1—New Year's Day January 20—Birthday of Martin Luther King, Jr. Free file state and federal taxes February 17—Washington's Birthday April 16—District of Columbia Emancipation Day May 26—Memorial Day July 4—Independence Day September 1—Labor Day October 13—Columbus Day November 11—Veterans Day November 27—Thanksgiving Day December 25—Christmas Day Application of Monthly and Semiweekly Schedules The following examples illustrate the procedure for determining the deposit date under the two different deposit schedules. Free file state and federal taxes Monthly schedule example. Free file state and federal taxes   Spruce Co. Free file state and federal taxes is a monthly schedule depositor with seasonal employees. Free file state and federal taxes It paid wages each Friday during August but did not pay any wages during September. Free file state and federal taxes Under the monthly deposit schedule, Spruce Co. Free file state and federal taxes must deposit the combined tax liabilities for the four August paydays by September 15. Free file state and federal taxes Spruce Co. Free file state and federal taxes does not have a deposit requirement for September (due by October 15) because no wages were paid and, therefore, it did not have a tax liability for September. Free file state and federal taxes Semiweekly schedule example. Free file state and federal taxes   Green, Inc. Free file state and federal taxes is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Free file state and federal taxes Although Green, Inc. Free file state and federal taxes , has a semiweekly deposit schedule, it will deposit just once a month because it pays wages only once a month. Free file state and federal taxes The deposit, however, will be made under the semiweekly deposit schedule as follows: Green, Inc. Free file state and federal taxes ’s tax liability for the April 25, 2014 (Friday), payday must be deposited by April 30, 2014 (Wednesday). Free file state and federal taxes Under the semiweekly deposit schedule, liabilities for wages paid on Wednesday through Friday must be deposited by the following Wednesday. Free file state and federal taxes $100,000 Next-Day Deposit Rule If you accumulate taxes of $100,000 or more on any day during a deposit period, you must deposit by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. Free file state and federal taxes For purposes of the $100,000 rule, do not continue accumulating taxes after the end of a deposit period. Free file state and federal taxes For example, if a semiweekly schedule depositor has accumulated taxes of $95,000 on Tuesday and $10,000 on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. Free file state and federal taxes Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. Free file state and federal taxes However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. Free file state and federal taxes For example, Fir Co. Free file state and federal taxes is a semiweekly schedule depositor. Free file state and federal taxes On Monday, Fir Co. Free file state and federal taxes accumulates taxes of $110,000 and must deposit on Tuesday, the next business day. Free file state and federal taxes On Tuesday, Fir Co. Free file state and federal taxes accumulates additional taxes of $30,000. Free file state and federal taxes Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. Free file state and federal taxes does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). Free file state and federal taxes If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day during a month, you become a semiweekly schedule depositor on the next day and remain so for the remainder of the calendar year and for the following calendar year. Free file state and federal taxes Example. Free file state and federal taxes   Elm, Inc. Free file state and federal taxes started its business on May 1, 2014. Free file state and federal taxes On May 8, it paid wages for the first time and accumulated a tax liability of $40,000. Free file state and federal taxes On Friday, May 9, Elm, Inc. Free file state and federal taxes paid wages and accumulated a liability of $60,000, making its accumulated Form 941-SS tax liability total $100,000. Free file state and federal taxes Elm, Inc. Free file state and federal taxes must deposit $100,000 by Monday, May 12, the next business day. Free file state and federal taxes Because this was the first year of its business, the tax liability for its lookback period is considered to be zero, and it would be a monthly schedule depositor based on the lookback rules. Free file state and federal taxes However, because Elm, Inc. Free file state and federal taxes accumulated $100,000 on May 9, it became a semiweekly schedule depositor on May 10. Free file state and federal taxes It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. Free file state and federal taxes Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. Free file state and federal taxes However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. Free file state and federal taxes Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited, and The deposit shortfall is paid or deposited by the shortfall makeup date as described below. Free file state and federal taxes Makeup date for deposit shortfall: Monthly schedule depositor. Free file state and federal taxes Deposit or pay the shortfall by the due date of your Form 941-SS, 944, or 943 for the period in which the shortfall occurred. Free file state and federal taxes You may pay the shortfall with your return even if the amount is $2,500 or more. Free file state and federal taxes Semiweekly schedule depositor. Free file state and federal taxes Deposit by the earlier of: The first Wednesday or Friday (whichever comes first) that comes on or after the 15th of the month following the month in which the shortfall occurred, or The return due date for the period in which the shortfall occurred. Free file state and federal taxes For example, if a semiweekly schedule depositor filing Form 941-SS has a deposit shortfall during July 2014, the shortfall makeup date is August 15, 2014 (Friday). Free file state and federal taxes However, if the shortfall occurred on the required April 2 (Wednesday), deposit date for a March 28 (Friday) pay date, the return due date for the March 28 pay date (April 30) would come before the May 16 (Friday) shortfall makeup date. Free file state and federal taxes In this case, the shortfall must be deposited by April 30, 2014. Free file state and federal taxes Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941-SS or 944 taxes). Free file state and federal taxes Form 943 taxes and Form 941-SS (or Form 944) taxes are not combined for purposes of applying any of the deposit rules. Free file state and federal taxes If a deposit is due, deposit the Form 941-SS (or Form 944) taxes and Form 943 taxes separately, as discussed next. Free file state and federal taxes How To Deposit You must deposit employment taxes by electronic funds transfer. Free file state and federal taxes See Payment with Return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. Free file state and federal taxes Electronic deposit requirement. Free file state and federal taxes   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Free file state and federal taxes Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Free file state and federal taxes If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Free file state and federal taxes   EFTPS is a free service provided by the Department of the Treasury. Free file state and federal taxes To get more information or to enroll in EFTPS, call 1-800-555-4477 (U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands only) or 303-967-5916 (toll call). Free file state and federal taxes You can also visit the EFTPS website at www. Free file state and federal taxes eftps. Free file state and federal taxes gov. Free file state and federal taxes Additional information about EFTPS is also available in Publication 966. Free file state and federal taxes When you receive your EIN. Free file state and federal taxes   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. Free file state and federal taxes You will receive information about Express Enrollment in your Employer Identification Number (EIN) Package and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. Free file state and federal taxes Follow the steps in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your payroll tax deposits. Free file state and federal taxes If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. Free file state and federal taxes Deposit record. Free file state and federal taxes   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. Free file state and federal taxes The number can be used as a receipt or to trace the payment. Free file state and federal taxes Depositing on time. Free file state and federal taxes   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. Free file state and federal taxes m. Free file state and federal taxes Eastern time the day before the date the deposit is due. Free file state and federal taxes If you use a third party to make deposits on your behalf, they may have different cutoff times. Free file state and federal taxes Same-day payment option. Free file state and federal taxes   If you fail to initiate a deposit transaction on EFTPS by 8 p. Free file state and federal taxes m. Free file state and federal taxes Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). Free file state and federal taxes To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. Free file state and federal taxes Please check with your financial institution regarding availability, deadlines, and costs. Free file state and federal taxes Your financial institution may charge you a fee for payments made this way. Free file state and federal taxes To learn more about the information you will need to provide your financial institution to make a same-day wire payment, please visit www. Free file state and federal taxes eftps. Free file state and federal taxes gov to download the Same-Day Payment Worksheet. Free file state and federal taxes How to claim credit for overpayments. Free file state and federal taxes   If you deposited more than the right amount of taxes for a tax period, you can choose on Form 941-SS, 941, 944, or 943 for that tax period to have the overpayment refunded or applied as a credit to your next return. Free file state and federal taxes Do not ask EFTPS to request a refund from the IRS for you. Free file state and federal taxes Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits of less than the required amount. Free file state and federal taxes The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. Free file state and federal taxes The IRS may also waive penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. Free file state and federal taxes For amounts not properly or timely deposited, the penalty rates are as follows. Free file state and federal taxes 2% - Deposits made 1 to 5 days late. Free file state and federal taxes 5% - Deposits made 6 to 15 days late. Free file state and federal taxes 10% - Deposits made 16 or more days late. Free file state and federal taxes Also applies to amounts paid within 10 days of the date of the first notice that the IRS sent asking for the tax due. Free file state and federal taxes 10% - Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return (but see Payment with Return , earlier in this section, for exceptions). Free file state and federal taxes 15% - Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. Free file state and federal taxes Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. Free file state and federal taxes Special rule for former Form 944 filers. Free file state and federal taxes    If you filed Form 944 for the prior year and must file Forms 941-SS for the current year because your employment tax liability for the prior year exceeded the Form 944 eligibility requirement ($1,000 or less), the failure-to-deposit penalty will not apply to a late deposit of employment taxes for the first month of the current year if the taxes are deposited in full by March 15 of the current year. Free file state and federal taxes Order in which deposits are applied. Free file state and federal taxes   Deposits generally are applied to the most recent tax liability within the return period (quarter or year). Free file state and federal taxes However, if you receive a failure-to-deposit penalty notice, you may designate how your payment is to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. Free file state and federal taxes Follow the instructions on the penalty notice that you received. Free file state and federal taxes For more information on designating deposits, see Revenue Procedure 2001-58. Free file state and federal taxes You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. Free file state and federal taxes irs. Free file state and federal taxes gov/pub/irs-irbs/irb01-50. Free file state and federal taxes pdf. Free file state and federal taxes Example. Free file state and federal taxes Cedar, Inc. Free file state and federal taxes is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. Free file state and federal taxes It does not make the deposit on July 15. Free file state and federal taxes On August 15, Cedar, Inc. Free file state and federal taxes deposits $2,000. Free file state and federal taxes Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. Free file state and federal taxes Accordingly, $500 of the July 15 liability remains undeposited. Free file state and federal taxes The penalty on this underdeposit will apply as explained earlier. Free file state and federal taxes Trust fund recovery penalty. Free file state and federal taxes   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Free file state and federal taxes The penalty is the full amount of the unpaid trust fund tax. Free file state and federal taxes This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. Free file state and federal taxes   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. Free file state and federal taxes   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship, or any other person or entity that is responsible for collecting, accounting for, and paying over trust fund taxes. Free file state and federal taxes A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. Free file state and federal taxes    Willfully means voluntarily, consciously, and intentionally. Free file state and federal taxes A responsible person acts willfully if the person knows the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. Free file state and federal taxes “Averaged” failure-to-deposit penalty. Free file state and federal taxes   The IRS may assess an “averaged” failure-to-deposit (FTD) penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 941-SS, line 14, when your tax liability shown on Form 941-SS, line 10, was $2,500 or more. Free file state and federal taxes IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 941-SS, line 10, was $2,500 or more and you did any of the following. Free file state and federal taxes Completed Form 941-SS, line 14, instead of Schedule B (Form 941). Free file state and federal taxes Failed to attach a properly completed Schedule B (Form 941). Free file state and federal taxes Completed Schedule B (Form 941) incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. Free file state and federal taxes   The IRS figures the penalty by allocating your total tax liability shown on Form 941-SS, line 10, equally throughout the tax period. Free file state and federal taxes Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. Free file state and federal taxes   You can avoid the penalty by reviewing your return before filing it. Free file state and federal taxes Follow these steps before filing your Form 941-SS. Free file state and federal taxes If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 941-SS, line 14. Free file state and federal taxes If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Schedule B (Form 941) in the lines that represent the dates you paid your employees. Free file state and federal taxes Verify that your total liability shown on Form 941-SS, line 14, or the bottom of Schedule B (Form 941) equals your tax liability shown on Form 941-SS,  line 10. Free file state and federal taxes Do not show negative amounts on Form 941-SS, line 14, or Schedule B (Form 941). Free file state and federal taxes For prior period errors, do not adjust your tax liabilities reported on your current Form 941-SS, line 14, or on Schedule B (Form 941). Free file state and federal taxes Instead, file an adjusted return (Form 941-X (if you are adjusting a previously filed Form 941-SS) or Form 944-X (if you are adjusting a previously filed Form 944-SS or 944)) if you are also adjusting your tax liability. Free file state and federal taxes If you are only adjusting your deposits in response to a failure-to-deposit penalty notice, see the Instructions for Schedule B (Form 941) (if you previously filed Form 941-SS) or the Instructions for Form 944-X (if you previously filed Form 944-SS or 944). Free file state and federal taxes If you filed Form 944 for 2013 and line 7 was $2,500 or more, you were required to complete Form 944, lines 13a–13m, or attach Form 945-A, Annual Record of Federal Tax Liability. Free file state and federal taxes If you failed to complete lines 13a–13m, or failed to attach Form 945-A, whichever was required, IRS may assess an “averaged” failure-to-deposit (FTD) penalty. Free file state and federal taxes 9. Free file state and federal taxes Employer's Returns General instructions. Free file state and federal taxes   File Forms 941-SS (or Form 944) for nonfarm workers and Form 943 for farmworkers. Free file state and federal taxes (U. Free file state and federal taxes S. Free file state and federal taxes Virgin Islands employers may be required to file Form 940 for the combined wages of nonfarm workers and farmworkers. Free file state and federal taxes ) Employers with employees subject to U. Free file state and federal taxes S. Free file state and federal taxes income tax withholding. Free file state and federal taxes   If you have both employees who are subject to U. Free file state and federal taxes S. Free file state and federal taxes income tax withholding and employees who are not subject to U. Free file state and federal taxes S. Free file state and federal taxes income tax withholding, you must file only Form 941 (or Form 944) and include all your employees’ wages on that form. Free file state and federal taxes Nonfarm employers. Free file state and federal taxes   File Form 941-SS for the calendar quarter in which you first pay wages for nonfarm workers and for each quarter thereafter unless you are a seasonal employer or file a final return. Free file state and federal taxes Due dates for each quarter of the calendar year are as follows. Free file state and federal taxes Quarter Due Jan. Free file state and federal taxes , Feb. Free file state and federal taxes , Mar. Free file state and federal taxes Apr. Free file state and federal taxes 30 Apr. Free file state and federal taxes , May, June July 31 July, Aug. Free file state and federal taxes , Sept. Free file state and federal taxes Oct. Free file state and federal taxes 31 Oct. Free file state and federal taxes , Nov. Free file state and federal taxes , Dec. Free file state and federal taxes Jan. Free file state and federal taxes 31   However, if you deposited all taxes when due for the quarter, you have 10 additional days from the due dates to file the return. Free file state and federal taxes If the due date for filing your return falls on a Saturday, Sunday, or legal holiday, you may file on the next business day. Free file state and federal taxes   If you closed your business or stopped paying wages and do not have to file returns in the future, check the box on line 15 of your final Form 941-SS and show the date final wages were paid. Free file state and federal taxes Form 944. Free file state and federal taxes   If IRS notified you to file Form 944, file your 2013 Form 944 by January 31, 2014, or by February 10, 2014 (if you deposited all taxes when due). Free file state and federal taxes Household employers reporting social security and Medicare taxes. Free file state and federal taxes   If you are a sole proprietor and file Forms 941-SS (or Form 944) for business employees, you may include taxes for household employees on your Forms 941-SS (or Form 944). Free file state and federal taxes Otherwise, report social security and Medicare taxes for household employees on Schedule H (Form 1040), Household Employment Taxes. Free file state and federal taxes See Publication 926, Household Employer's Tax Guide, for more information. Free file state and federal taxes Employers of farmworkers. Free file state and federal taxes   Every employer of farmworkers must file a Form 943 for each calendar year beginning with the first year the employer pays $2,500 or more for farmwork or employs a farmworker who meets the $150 test described in section 6. Free file state and federal taxes   File a Form 943 each year for all taxable wages paid for farmwork. Free file state and federal taxes You may report household workers in a private home on a farm operated for profit on Form 943. Free file state and federal taxes Do not report wages for farmworkers on Form 941-SS or 944. Free file state and federal taxes   Send Form 943 to the IRS by January 31 of the following year. Free file state and federal taxes Send it with payment of any taxes due that you are not required to deposit. Free file state and federal taxes If you deposited all taxes when due, you have 10 additional days to file. Free file state and federal taxes Penalties. Free file state and federal taxes   For each whole or part month that a return is not filed when required (disregarding any extensions of the filing deadline), there is a failure-to-file penalty of 5% of the unpaid tax due with that return. Free file state and federal taxes The maximum penalty is generally 25% of the tax due. Free file state and federal taxes Also, for each whole or part month that the tax is paid late (disregarding any extensions of the payment deadline), there is a failure-to-pay penalty of 0. Free file state and federal taxes 5% per month of the amount of tax. Free file state and federal taxes For individual filers only, the failure-to-pay penalty is reduced from 0. Free file state and federal taxes 5% per month to 0. Free file state and federal taxes 25% per month if an installment agreement is in effect. Free file state and federal taxes You must have filed your return on or before the due date of the return to qualify for the reduced penalty. Free file state and federal taxes The maximum amount of the failure-to-pay penalty is also 25% of the tax due. Free file state and federal taxes If both penalties apply in any month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. Free file state and federal taxes The penalties will not be charged if you have a reasonable cause for failing to file or pay. Free file state and federal taxes If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. Free file state and federal taxes Reporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Make current period adjustments for fractions of cents, sick pay, tips, and group-term life insurance on your Form 941-SS, 944, or 943. Free file state and federal taxes See the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943 for information on how to report these adjustments. Free file state and federal taxes Prior Period Adjustments Forms for prior period adjustments. Free file state and federal taxes   Use Form 941-X or Form 944-X to make a correction after you discover an error on a previously filed Form 941 or Form 944. Free file state and federal taxes There are also Forms 943-X, 945-X, and CT-1X to report corrections on the corresponding returns. Free file state and federal taxes Form 941-X and Form 944-X also replace Form 843, Claim for Refund and Request for Abatement, for employers to request a refund or abatement of overreported employment taxes. Free file state and federal taxes Continue to use Form 843 when requesting a refund or abatement of assessed interest or penalties. Free file state and federal taxes See Revenue Ruling 2009-39, 2009-52 I. Free file state and federal taxes R. Free file state and federal taxes B. Free file state and federal taxes 951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. Free file state and federal taxes You can find Revenue Ruling 2009-39, at www. Free file state and federal taxes irs. Free file state and federal taxes gov/irb/2009-52_IRB/ar14. Free file state and federal taxes html. Free file state and federal taxes Background. Free file state and federal taxes   Treasury Decision 9405 changed the process for making interest-free adjustments to employment taxes reported on Forms 941-SS, 943, 944-SS, and 944, and for filing a claim for refund of employment taxes. Free file state and federal taxes Treasury Decision 9405, 2008-32 I. Free file state and federal taxes R. Free file state and federal taxes B. Free file state and federal taxes 293, is available at www. Free file state and federal taxes irs. Free file state and federal taxes gov/irb/2008-32_IRB/ar13. Free file state and federal taxes html. Free file state and federal taxes You will use the adjustment process if you underreported employment taxes and are making a payment, or if you overreported employment taxes and will be applying the credit to the Form 941-SS, 943, or 944 period during which you file Forms 941-X, 943-X, or 944-X, respectively. Free file state and federal taxes You will use the claim process if you overreported employment taxes and are requesting a refund or abatement of the overreported amount. Free file state and federal taxes We use the terms “correct” and “corrections” to include interest-free adjustments under sections 6205 and 6413, and claims for refund and abatement under sections 6402, 6414, and 6404 of the Internal Revenue Code. Free file state and federal taxes Correcting employment taxes. Free file state and federal taxes   When you discover an error on a previously filed Form 941-SS, 943, 944-SS, or 944, you must: Correct that error using Form 941-X, Form 943-X, or Form 944-X, File a separate Form 941-X, Form 943-X, or Form 944-X for
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Tax Relief for Victims of April Storms and Floods in Montana

Updated 8/24/2011 to include Blaine, Broadwater, Carter, Chouteau, Fallon, Flathead, Golden Valley, Madison, Park, Phillips, Pondera, Powell, Rosebud, Toole, and Wibaux counties and the Fort Peck Reservation.

COIDMTWY-2011-24, July 28, 2011

DENVER— Victims of severe storms and flooding beginning on April 3, 2011 in parts of Montana may qualify for tax relief from the Internal Revenue Service.

The President has declared Big Horn, Blaine, Broadwater, Carbon, Carter, Cascade, Chouteau, Custer, Fallon, Fergus, Flathead, Garfield, Golden Valley, Hill, Jefferson, Judith Basin, Lewis and Clark, Madison, Musselshell, Park, Petroleum, Phillips, Pondera, Powell, Rosebud, Sweet Grass, Toole, Valley, Wibaux, and Yellowstone Counties and the Blackfeet Indian Reservation, Crow Indian Reservation, Fort Belknap Reservation, and Fort Peck Reservation a federal disaster area. Individuals who reside or have a business in these localities may qualify for tax relief.

As a result, the IRS postponed until June 30, 2011, certain deadlines for taxpayers who live or have a business in the disaster area. This includes the April 18 deadline for filing 2010 individual income tax returns, making income tax payments and making 2010 contributions to an individual retirement account (IRA). It also includes the April 18 and June 15 deadlines for making estimated tax payments.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after April 3 and on or before April 18, 2011, as long as the deposits were made by April 18, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The areas listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until June 30, 2011 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after April 3 and on or before June 30.

The IRS also gives affected taxpayers until June 30 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (August 20, 2007), that are due to be performed on or after April 3 and on or before June 30.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after April 3 and on or before April 18, provided the taxpayer made these deposits by April 18.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation, "Montana/Severe Storms and Flooding," at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information:

Disaster Assistance and Emergency Relief for Individuals and Businesses

Recent IRS Disaster Relief Announcements

Page Last Reviewed or Updated: 25-Apr-2013

The Free File State And Federal Taxes

Free file state and federal taxes It's easy, accurate and fast. So why would you file your taxes any other way? Free file state and federal taxes Old fashioned paper tax forms have been around for decades, but it might be time for them to go the way of the dodo. Who wants to wait for weeks to get their check in the mail when you can just efile your tax return electronically with the IRS and start enjoying your refund in as little as 7 days. Free file state and federal taxes If you consider the money the IRS holds on to while you wait for your refund as an interest free loan, then you’ll realize that you are losing money. No one other than the IRS can get an interest free loan and that doesn’t seem fair, does it? Enter the internet age. Commercial companies have been moving online for years now - when was the last time you've mailed a check or received a paper statement from your bank? Now, even the government sites are starting to get with the program and are offering quick and easy efile to everyone. Here are a few reasons why I switched to efile; maybe it’s time you do to!