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Free Tax Filing Military

Free tax filing military 5. Free tax filing military   Illustrated Examples Table of Contents Illustrated Example of Form 4563Line 1. Free tax filing military Line 2. Free tax filing military Lines 3a and 3b. Free tax filing military Lines 4a and 4b. Free tax filing military Line 5. Free tax filing military Line 6. Free tax filing military Line 7. Free tax filing military Line 9. Free tax filing military Line 15. Free tax filing military Illustrated Example of Form 5074Part I. Free tax filing military Part II. Free tax filing military Part III. Free tax filing military Illustrated Example of Form 8689Part I. Free tax filing military Part II. Free tax filing military Part III. Free tax filing military Part IV. Free tax filing military Use the following examples to help you complete the correct attachment to your Form 1040. Free tax filing military The completed form for each example is shown on the pages that follow. Free tax filing military Illustrated Example of Form 4563 John Black is a U. Free tax filing military S. Free tax filing military citizen, single, and under 65. Free tax filing military He was a bona fide resident of American Samoa during all of 2013. Free tax filing military John must file Form 1040 because his gross income from sources outside the possessions ($10,000 of dividends from U. Free tax filing military S. Free tax filing military corporations) is more than his adjusted filing requirement for single filers under 65. Free tax filing military (See Filing Requirement if Possession Income Is Excluded in chapter 4. Free tax filing military ) Because he must file Form 1040 (not illustrated), he fills out Form 4563 to determine the amount of income from American Samoa he can exclude. Free tax filing military See Bona Fide Resident of American Samoa in chapter 3. Free tax filing military Completing Form 4563. Free tax filing military   John enters his name and social security number at the top of the form. Free tax filing military Line 1. Free tax filing military   On Form 4563 (see later), John enters the date his bona fide residence began in American Samoa, June 2, 2012. Free tax filing military Because he is still a bona fide resident, he enters “not ended” in the second blank space. Free tax filing military Line 2. Free tax filing military   He checks the box labeled “Rented house or apartment” to describe his type of living quarters in American Samoa. Free tax filing military Lines 3a and 3b. Free tax filing military   He checks “No” on line 3a because no family members lived with him. Free tax filing military He leaves line 3b blank. Free tax filing military Lines 4a and 4b. Free tax filing military   He checks “No” on line 4a because he did not maintain a home outside American Samoa. Free tax filing military He leaves line 4b blank. Free tax filing military Line 5. Free tax filing military   He enters the name and address of his employer, Samoa Products Co. Free tax filing military It is a private American Samoa corporation. Free tax filing military Line 6. Free tax filing military   He enters the dates of his 2-week vacation to New Zealand from November 11 to November 25. Free tax filing military That was his only trip outside American Samoa during the year. Free tax filing military Line 7. Free tax filing military   He enters the $24,000 in wages he received from Samoa Products Co. Free tax filing military Line 9. Free tax filing military   He received $220 in dividends from an American Samoa corporation, which he enters here. Free tax filing military He also received $10,000 of dividends from a U. Free tax filing military S. Free tax filing military corporation, but he will enter that amount only on his Form 1040 because the U. Free tax filing military S. Free tax filing military dividends do not qualify for the possession exclusion. Free tax filing military Line 15. Free tax filing military   John totals the amounts on lines 7 and 9 to get the amount he can exclude from his gross income in 2013. Free tax filing military He will not enter his excluded income on Form 1040. Free tax filing military However, he will attach his completed Form 4563 to his Form 1040. Free tax filing military Illustrated Example of Form 5074 Tracy Grey is a U. Free tax filing military S. Free tax filing military citizen who is a self-employed fisheries consultant with a tax home in New York. Free tax filing military Her only income for 2013 was net self-employment income of $80,000. Free tax filing military Of the $80,000, $20,000 was from consulting work in Guam and the rest was earned in the United States. Free tax filing military Thinking she would owe tax to Guam on the $20,000, Tracy made estimated tax payments of $1,409 to Guam. Free tax filing military She was not a bona fide resident of Guam during 2013. Free tax filing military Tracy completes Form 1040 (not illustrated), reporting her worldwide income. Free tax filing military Because the adjusted gross income on her Form 1040 was $50,000 or more and at least $5,000 of her gross income is from Guam, Tracy must file Form 5074 with her Form 1040. Free tax filing military All amounts reported on Form 5074 are also reported on her Form 1040. Free tax filing military See U. Free tax filing military S. Free tax filing military Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) in chapter 3. Free tax filing military Completing Form 5074. Free tax filing military   Tracy enters her name and social security number at the top of the form. Free tax filing military Part I. Free tax filing military   On Form 5074 (see later), Tracy enters her self-employment income from Guam ($20,000) on line 6. Free tax filing military She has no other income from Guam, so the total on line 16 is $20,000. Free tax filing military Part II. Free tax filing military   Tracy's only adjustment in Part II is the deductible part of the self-employment tax on her net income earned in Guam. Free tax filing military She enters $1,413 on line 21 and line 28. Free tax filing military Her adjusted gross income on line 29 is $18,587. Free tax filing military Part III. Free tax filing military   Tracy made estimated tax payments of $1,409. Free tax filing military She enters this amount on line 30, and again on line 34 as the total payments. Free tax filing military Illustrated Example of Form 8689 Juan and Carla Moreno live and work in the United States. Free tax filing military In 2013, they received $14,400 in income from the rental of a condominium they own in the U. Free tax filing military S. Free tax filing military Virgin Islands (USVI). Free tax filing military The rental income was deposited in a bank in the USVI and they received $500 of interest on this income. Free tax filing military They were not bona fide residents of the USVI during the entire tax year. Free tax filing military The Morenos complete Form 1040 (not illustrated), reporting their income from all sources, including their interest income and the income and expenses from their USVI rental property (reported on Schedule E (Form 1040)). Free tax filing military The Morenos take the standard deduction for married filing jointly, both are under 65, and they have no dependents. Free tax filing military The Morenos also complete Form 8689 to determine how much of their U. Free tax filing military S. Free tax filing military tax shown on Form 1040, line 61 (with certain adjustments), must be paid to the U. Free tax filing military S. Free tax filing military Virgin Islands. Free tax filing military See U. Free tax filing military S. Free tax filing military Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) in chapter 3. Free tax filing military The Morenos file their Form 1040, attaching Form 8689 and all other schedules, with the Internal Revenue Service. Free tax filing military At the same time, they send a copy of their Form 1040 with all attachments, including Form 8689, to the Virgin Islands Bureau of Internal Revenue. Free tax filing military The Virgin Islands Bureau of Internal Revenue will process this copy. Free tax filing military Completing Form 8689. Free tax filing military   Juan and Carla enter their names and Juan's social security number at the top of the form. Free tax filing military Part I. Free tax filing military   The Morenos enter their income from the USVI in Part I (see later). Free tax filing military The interest income is entered on line 2 and the net rental income of $6,200 ($14,400 of rental income minus $8,200 of rental expenses) is entered on line 11. Free tax filing military The Morenos' total USVI income of $6,700 is entered on line 16. Free tax filing military Part II. Free tax filing military   The Morenos have no adjustments to their USVI income, so they enter zero (-0-) on line 28, and $6,700 on line 29. Free tax filing military Their USVI adjusted gross income (AGI) is $6,700. Free tax filing military Part III. Free tax filing military   On line 30, the Morenos enter the amount from Form 1040, line 61 ($4,539). Free tax filing military Their Form 1040 does not show any entries required on line 31, so they leave that line blank and enter $4,539 on line 32. Free tax filing military   The Morenos enter their worldwide AGI, $54,901 (Form 1040, line 38), on line 33. Free tax filing military Next, they find what percentage of their AGI is from USVI sources ($6,700 ÷ $54,901 = 0. Free tax filing military 122) and enter that as a decimal on line 34. Free tax filing military They then apply that percentage to the U. Free tax filing military S. Free tax filing military tax entered on line 32 to find the amount of U. Free tax filing military S. Free tax filing military tax allocated to USVI income ($4,539 x 0. Free tax filing military 122 = $554), and enter that amount on line 35. Free tax filing military Part IV. Free tax filing military   Part IV is used to show payments of income tax to the USVI only. Free tax filing military The Morenos had no tax withheld by the U. Free tax filing military S. Free tax filing military Virgin Islands, but made estimated tax payments to the USVI of $400, which they entered on lines 37 and 39. Free tax filing military They include this amount ($400) in the total payments on Form 1040, line 72. Free tax filing military On the dotted line next to the entry space for line 72, they enter “Form 8689” and show the amount. Free tax filing military The Morenos do not complete Form 1116 because they receive credit on Form 1040, line 72, for the tax paid to the USVI. Free tax filing military   The income tax they owe to the USVI ($154) is shown on Form 8689, line 44. Free tax filing military They enter this amount on line 45. Free tax filing military They also include this additional amount ($154) on the dotted line next to the entry space and in the total on Form 1040, line 72. Free tax filing military The Morenos will pay their USVI tax at the same time they file the copy of their U. Free tax filing military S. Free tax filing military income tax return with the U. Free tax filing military S. Free tax filing military Virgin Islands. Free tax filing military This image is too large to be displayed in the current screen. Free tax filing military Please click the link to view the image. Free tax filing military Form 4563, page 1 for John Black This image is too large to be displayed in the current screen. Free tax filing military Please click the link to view the image. Free tax filing military Form 5074, for Tracy Grey This image is too large to be displayed in the current screen. Free tax filing military Please click the link to view the image. 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Tax Relief for Victims of March 11 Floods in South Dakota

Updated 9/02/11 to include Yankton county.

SD-2011-19, August 24, 2011

ST. PAUL — Victims of flooding that began on March 11, 2011 in parts of South Dakota may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Charles Mix, Hughes, Stanley, Union and Yankton. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after March 11 and on or before June 30 have been postponed to June 30. 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). This also includes the estimated tax payment for the second quarter of 2011 normally due June 15.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after March 11 and on or before March 28, 2011, as long as the deposits were made by March 28, 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 counties 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 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 March 11 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 March 11 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 March 11 and on or before March 28 provided the taxpayer made these deposits by March 28.

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 “South Dakota/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

Page Last Reviewed or Updated: 20-Mar-2014

The Free Tax Filing Military

Free tax filing military Publication 595 - Main Contents Table of Contents Capital Construction FundCCF Accounts Types of Accounts You Must Maintain Within a CCF Tax Treatment of CCF Deposits Tax Treatment of CCF Earnings Tax Treatment of CCF Withdrawals More Information How To Get Tax Help Capital Construction Fund The following sections discuss CCF accounts and the types of bookkeeping accounts you must maintain when you invest in a CCF account. Free tax filing military They also discuss the income tax treatment of CCF deposits, earnings, and withdrawals. Free tax filing military CCF Accounts This section explains who can open a CCF account and how to use the account to defer income tax. Free tax filing military Opening a CCF account. Free tax filing military   If you are a U. Free tax filing military S. Free tax filing military citizen and you own or lease one or more eligible vessels (defined later), you can open a CCF account. Free tax filing military However, before you open your CCF account, you must enter into an agreement with the Secretary of Commerce through the NMFS. Free tax filing military This agreement will establish the following. Free tax filing military Agreement vessels. Free tax filing military Eligible vessels named in the agreement that will be the basis for the deferral of income tax. Free tax filing military Planned use of withdrawals. Free tax filing military Use of CCF funds to acquire, build, or rebuild a vessel. Free tax filing military CCF depository. Free tax filing military Where your CCF funds will be held. Free tax filing military    You can request an application kit or get additional information from NMFS at the following address. Free tax filing military NOAA/NMFS, Financial Services Division, F/MB5 Capital Construction Fund Program 1315 East-West Highway Silver Spring, MD 20910-3282    You can obtain information on the Capital Construction Fund Program at the following website: www. Free tax filing military nmfs. Free tax filing military noaa. Free tax filing military gov/mb/financial_services/ccf. Free tax filing military htm. Free tax filing military    You can call NMFS to request an application kit or get additional information at (301) 713-2393 (ext. Free tax filing military 204). Free tax filing military Their fax number is (301) 713-1939. Free tax filing military Eligible vessels. Free tax filing military   There are two types of vessels that may be considered eligible, those weighing 5 tons or more and those weighing less than 5 tons. Free tax filing military For each type, certain requirements must be met. Free tax filing military Vessel weighing 5 tons or more. Free tax filing military   To be considered eligible, the vessel must meet all the following requirements. Free tax filing military Be built or rebuilt in the United States. Free tax filing military Be documented under the laws of the United States. Free tax filing military Be used commercially in the fisheries of the United States. Free tax filing military Be operated in the foreign or domestic commerce of the United States. Free tax filing military Vessel weighing less than 5 tons. Free tax filing military   A small vessel, weighing at least 2 net tons but less than 5 net tons, must meet all the following requirements to be considered eligible. Free tax filing military Be built or rebuilt in the United States. Free tax filing military Be owned by a U. Free tax filing military S. Free tax filing military citizen. Free tax filing military Have a home port in the United States. Free tax filing military Be used commercially in the fisheries of the United States. Free tax filing military Deferring tax on CCF deposits and earnings. Free tax filing military   You can use a CCF account to defer income tax by taking the following actions. Free tax filing military Making deposits to your CCF account from taxable income. Free tax filing military Excluding from income deposits assigned to certain accounts (discussed later). Free tax filing military Making withdrawals from your CCF account when you acquire, build, or rebuild fishing vessels. Free tax filing military Reducing the basis of fishing vessels you acquire, build, or rebuild to recapture amounts previously excluded from tax. Free tax filing military    Reporting requirements. Free tax filing military Beginning with the tax year in which you establish your agreement, you must report annual deposit and withdrawal activity to the NMFS on NOAA Form 34-82. Free tax filing military This form is due within 30 days after you file your federal income tax return even if no deposits or withdrawals are made. Free tax filing military For more information, contact the NMFS at the address or phone number given earlier. Free tax filing military Types of Accounts You Must Maintain Within a CCF This section discusses the three types of bookkeeping accounts you must maintain when you invest in a CCF account. Free tax filing military Your total CCF deposits and earnings for any given year are limited to the amount attributed to these three accounts for that year. Free tax filing military Capital account. Free tax filing military   The capital account consists primarily of amounts attributable to the following items. Free tax filing military Allowable depreciation deductions for agreement vessels. Free tax filing military Any nontaxable return of capital from either (a) or (b), below. Free tax filing military The sale or other disposition of agreement vessels. Free tax filing military Insurance or indemnity proceeds attributable to agreement vessels. Free tax filing military Any tax-exempt interest earned on state or local bonds in your CCF account. Free tax filing military Capital gain account. Free tax filing military   The capital gain account consists of amounts attributable to the following items reduced by any capital losses from assets held in your CCF account for more than 6 months. Free tax filing military Any capital gain from either of the following sources. Free tax filing military The sale or other disposition of agreement vessels held for more than 6 months. Free tax filing military Insurance or indemnity proceeds attributable to agreement vessels held for more than 6 months. Free tax filing military Any capital gain from assets held in your CCF account for more than 6 months. Free tax filing military Ordinary income account. Free tax filing military   The ordinary income account consists of amounts attributable to the following items. Free tax filing military Any earnings (without regard to the carryback of any net operating or net capital loss) from the operation of agreement vessels in the fisheries of the United States or in the foreign or domestic commerce of the United States. Free tax filing military Any capital gain from the following sources reduced by any capital losses from assets held in your CCF account for 6 months or less. Free tax filing military The sale or other disposition of agreement vessels held for 6 months or less. Free tax filing military Insurance or indemnity proceeds attributable to agreement vessels held for 6 months or less. Free tax filing military Any capital gain from assets held in your CCF account for 6 months or less. Free tax filing military Any ordinary income (such as depreciation recapture) from either of the following sources. Free tax filing military The sale or other disposition of agreement vessels. Free tax filing military Insurance or indemnity proceeds attributable to agreement vessels. Free tax filing military Any interest (not including tax-exempt interest from state and local bonds), most dividends, and other ordinary income earned on the assets in your CCF account. Free tax filing military Tax Treatment of CCF Deposits This section explains the tax treatment of income used as the basis for CCF deposits. Free tax filing military Capital gains. Free tax filing military   Do not report any transaction that produces a capital gain if you deposit the net proceeds into your CCF account. Free tax filing military This treatment applies to either of the following transactions. Free tax filing military The sale or other disposition of an agreement vessel. Free tax filing military The receipt of insurance or indemnity proceeds attributable to an agreement vessel. Free tax filing military Depreciation recapture. Free tax filing military   Do not report any transaction that produces depreciation recapture if you deposit the net proceeds into your CCF account. Free tax filing military This treatment applies to either of the following transactions. Free tax filing military The sale or other disposition of an agreement vessel. Free tax filing military The receipt of insurance or indemnity proceeds attributable to an agreement vessel. Free tax filing military Earnings from operations. Free tax filing military   Report earnings from the operation of agreement vessels on your Schedule C or C-EZ (Form 1040) even if you deposit part of these earnings into your CCF account. Free tax filing military You subtract any part of the earnings you deposited into your CCF account from the amount you would otherwise enter as taxable income on Form 1040, line 43 (for 2005). Free tax filing military Next to line 43, write “CCF” and the amount of the deposits. Free tax filing military Do not deduct these CCF deposits on Schedule C or C-EZ (Form 1040). Free tax filing military If you deposit earnings from operations into your CCF account and you must complete other forms such as Form 6251, Alternative Minimum Tax (Individuals), or a worksheet for Schedule D (Form 1040), you will need to make an extra computation. Free tax filing military When the other form instructs you to use the amount from Form 1040, line 41 (for 2005), do not use that amount. Free tax filing military Instead, add Form 1040, lines 42 and 43 (for 2005), and use that amount. Free tax filing military Self-employment tax. Free tax filing military   You must use your net profit or loss from your fishing business to figure your self-employment tax. Free tax filing military Do not reduce your net profit or loss by any earnings from operations you deposit into your CCF account. Free tax filing military    Partnerships and S corporations. Free tax filing military The deduction for partnership earnings from operations deposited into a CCF account is separately stated on Schedule K (Form 1065), line 13d, and allocated to the partners on Schedule K-1 (Form 1065), box 13 (for 2005). Free tax filing military   The deduction for S corporation earnings deposited into a CCF account is separately stated on Schedule K (Form 1120S), line 12d, and allocated to the shareholders on Schedule K-1 (Form 1120S), box 12 (for 2005). Free tax filing military Tax Treatment of CCF Earnings This section explains the tax treatment of the earnings from the assets in your CCF account when the earnings are redeposited or left in your account. Free tax filing military However, if you choose to withdraw the earnings in the year earned, you must generally pay income tax on them. Free tax filing military Capital gains. Free tax filing military   Do not report any capital gains from the sale of capital assets held in your CCF account. Free tax filing military This includes capital gain distributions reported to you on Form 1099-DIV or a substitute statement. Free tax filing military However, you should attach a statement to your tax return to list the payers and the amounts and to identify the capital gains as “CCF account earnings. Free tax filing military ” Interest and dividends. Free tax filing military   Do not report any ordinary income (such as interest and dividends) you earn on the assets in your CCF account. Free tax filing military However, you should attach a statement to your return to list the payers and the amounts and to identify them as “CCF account earnings. Free tax filing military ”   If you are required to file Schedule B (Form 1040), you can add these earnings to the list of payers and amounts on line 1 or line 5 and identify them as “CCF earnings. Free tax filing military ” Then, subtract the same amounts from the list and identify them as “CCF deposits. Free tax filing military ” Tax-exempt interest. Free tax filing military   Do not report tax-exempt interest from state or local bonds you held in your CCF account. Free tax filing military You are not required to report this interest on Form 1040, line 8b. Free tax filing military Tax Treatment of CCF Withdrawals This section discusses the tax treatment of amounts you withdraw from your CCF account during the year. Free tax filing military Qualified Withdrawals A qualified withdrawal from a CCF account is one that is approved by NMFS for either of the following uses. Free tax filing military Acquiring, building, or rebuilding qualified vessels (defined next). Free tax filing military Making principal payments on the mortgage of a qualified vessel. Free tax filing military NMFS will not approve amounts withdrawn to purchase nets not continuously attached to the vessel, such as seine nets, gill set-nets, and gill drift-nets. Free tax filing military NMFS will approve amounts withdrawn to purchase trawl nets. Free tax filing military Qualified vessel. Free tax filing military   This is any vessel that meets all of the following requirements. Free tax filing military The vessel was built or rebuilt in the United States. Free tax filing military The vessel is documented under the laws of the United States. Free tax filing military The person maintaining the CCF account agrees with the Secretary of Commerce that the vessel will be operated in United States foreign trade, Great Lakes trade, noncontiguous domestic trade, or the fisheries of the United States. Free tax filing military How to determine the source of qualified withdrawals. Free tax filing military   When you make a qualified withdrawal, the amount is treated as being withdrawn in the following order from the accounts listed below. Free tax filing military The capital account. Free tax filing military The capital gain account. Free tax filing military The ordinary income account. Free tax filing military Excluding qualified withdrawals from tax. Free tax filing military   Do not report on your income tax return any qualified withdrawals from your CCF account. Free tax filing military Reduce the depreciable basis of fishing vessels you acquire, build, or rebuild when you make a qualified withdrawal from either the capital gain or the ordinary income account. Free tax filing military Nonqualified Withdrawals A nonqualified withdrawal from a CCF account is generally any withdrawal that is not a qualified withdrawal. Free tax filing military Qualified withdrawals are defined under Qualified Withdrawals, earlier. Free tax filing military Examples. Free tax filing military   Examples of nonqualified withdrawals include the following amounts from either the ordinary income account or the capital gain account. Free tax filing military Amounts remaining in a CCF account upon termination of your agreement with NMFS. Free tax filing military Amounts you withdraw and use to make principal payments on the mortgage of a vessel if the basis of that vessel and the bases of other vessels you own have already been reduced to zero. Free tax filing military Amounts determined by the IRS to cause your CCF account balance to exceed the amount appropriate to meet your planned use of withdrawals. Free tax filing military You will generally be given 3 years to revise your plans to cover this excess balance. Free tax filing military Amounts you leave in your account for more than 25 years. Free tax filing military There is a graduated schedule under which the percentage applied to determine the amount of the nonqualified withdrawal increases from 20% in the 26th year to 100% in the 30th year. Free tax filing military How to determine the source of nonqualified withdrawals. Free tax filing military    When you make a nonqualified withdrawal from your CCF account, the amount is treated as being withdrawn in the following order from the accounts listed below. Free tax filing military The ordinary income account. Free tax filing military The capital gain account. Free tax filing military The capital account. Free tax filing military Paying tax on nonqualified withdrawals. Free tax filing military   In general, nonqualified withdrawals are taxed separately from your other gross income and at the highest marginal tax rate in effect for the year of withdrawal. Free tax filing military However, nonqualified withdrawals treated as made from the capital gain account are taxed at a rate that cannot exceed 15% for individuals and 34% for corporations. Free tax filing military    Partnerships and S corporations. Free tax filing military Taxable nonqualified partnership withdrawals are separately stated on Schedule K (Form 1065), line 20c, and allocated to the partners on Schedule K-1 (Form 1065), box 20 (for 2005). Free tax filing military Taxable nonqualified withdrawals by an S corporation are separately stated on Schedule K (Form 1120S), line 17d, and allocated to the shareholders on Schedule K-1 (Form 1120S), box 17. Free tax filing military Interest. Free tax filing military   You must pay interest on the additional tax due to nonqualified withdrawals that are treated as made from either the ordinary income or the capital gain account. Free tax filing military The interest period begins on the last date for paying tax for the year for which you deposited the amount you withdrew from your CCF account. Free tax filing military The period ends on the last date for paying tax for the year in which you make the nonqualified withdrawal. Free tax filing military The interest rate on the nonqualified withdrawal is simple interest. Free tax filing military The rate is subject to change annually and is published in the Federal Register. Free tax filing military    You also can call NMFS at (301) 713-2393 (ext. Free tax filing military 204) to get the current interest rate. Free tax filing military Interest deduction. Free tax filing military   You can deduct the interest you pay on a nonqualified withdrawal as a trade or business expense. Free tax filing military Reporting the additional tax and interest. Free tax filing military   Attach a statement to your income tax return showing your computation of the tax and the interest on a nonqualified withdrawal. Free tax filing military Include the tax and interest on Form 1040, line 63 (for 2005). Free tax filing military To the left of line 63, write in the amount of tax and interest and “CCF. Free tax filing military ” Tax benefit rule. Free tax filing military   If any portion of your nonqualified withdrawal is properly attributable to contributions (not earnings on the contributions) you made to the CCF account that did not reduce your tax liability for any tax year prior to the withdrawal year, the following tax treatment applies. Free tax filing military The part that did not reduce your tax liability for any year prior to the withdrawal year is not taxed. Free tax filing military That part is allowed as a net operating loss deduction. Free tax filing military More Information This section briefly discussed the CCF program. Free tax filing military For more detailed information, see the following legislative authorities. Free tax filing military Section 607 of the Merchant Marine Act of 1936, as amended (46 U. Free tax filing military S. Free tax filing military C. Free tax filing military 1177). Free tax filing military Chapter 2, Part 259 of title 50 of the Code of Federal Regulations (50 C. Free tax filing military F. Free tax filing military R. Free tax filing military , Part 259). Free tax filing military Subchapter A, Part 3 of title 26 of the Code of Federal Regulations (26 C. Free tax filing military F. Free tax filing military R. Free tax filing military , Part 3). Free tax filing military Section 7518 of the Internal Revenue Code (IRC 7518). Free tax filing military The application kit you can obtain from NMFS at the address or phone number given earlier may contain copies of some of these sources of additional information. Free tax filing military Also, see their web page at www. Free tax filing military nmfs. Free tax filing military noaa. Free tax filing military gov/mb/financial_services/ccf. Free tax filing military htm. Free tax filing military How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Free tax filing military By selecting the method that is best for you, you will have quick and easy access to tax help. Free tax filing military Contacting your Taxpayer Advocate. Free tax filing military   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Free tax filing military   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Free tax filing military While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Free tax filing military   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778, Call, write, or fax the Taxpayer Advocate office in your area, Call 1-800-829-4059 if you are a TTY/TDD user, or Visit www. Free tax filing military irs. Free tax filing military gov/advocate. Free tax filing military   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). Free tax filing military Free tax services. Free tax filing military   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Free tax filing military It contains a list of free tax publications and an index of tax topics. Free tax filing military It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Free tax filing military Internet. Free tax filing military You can access the IRS website 24 hours a day, 7 days a week, at www. Free tax filing military irs. Free tax filing military gov to: E-file your return. Free tax filing military Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Free tax filing military Check the status of your refund. Free tax filing military Click on Where's My Refund. Free tax filing military Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Free tax filing military Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Free tax filing military Download forms, instructions, and publications. Free tax filing military Order IRS products online. Free tax filing military Research your tax questions online. Free tax filing military Search publications online by topic or keyword. Free tax filing military View Internal Revenue Bulletins (IRBs) published in the last few years. Free tax filing military Figure your withholding allowances using our Form W-4 calculator. Free tax filing military Sign up to receive local and national tax news by email. Free tax filing military Get information on starting and operating a small business. Free tax filing military Phone. Free tax filing military Many services are available by phone. Free tax filing military Ordering forms, instructions, and publications. Free tax filing military Call 1-800-829-3676 to order current-year forms, instructions, and publications and prior-year forms and instructions. Free tax filing military You should receive your order within 10 days. Free tax filing military Asking tax questions. Free tax filing military Call the IRS with your tax questions at 1-800-829-1040. Free tax filing military Solving problems. Free tax filing military You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Free tax filing military An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Free tax filing military Call your local Taxpayer Assistance Center for an appointment. Free tax filing military To find the number, go to www. Free tax filing military irs. Free tax filing military gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free tax filing military TTY/TDD equipment. Free tax filing military If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Free tax filing military TeleTax topics. Free tax filing military Call 1-800-829-4477 and press 2 to listen to pre-recorded messages covering various tax topics. Free tax filing military Refund information. Free tax filing military If you would like to check the status of your refund, call 1-800-829-4477 and press 1 for automated refund information and follow the recorded instructions or call 1-800-829-1954. Free tax filing military Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Free tax filing military Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Free tax filing military Evaluating the quality of our telephone services. Free tax filing military To ensure that IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Free tax filing military One method is for a second IRS representative to sometimes listen in on or record telephone calls. Free tax filing military Another is to ask some callers to complete a short survey at the end of the call. Free tax filing military Walk-in. Free tax filing military Many products and services are available on a walk-in basis. Free tax filing military Products. Free tax filing military You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free tax filing military Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD-ROM or photocopy from reproducible proofs. Free tax filing military Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Free tax filing military Services. Free tax filing military You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Free tax filing military An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Free tax filing military If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Free tax filing military No appointment is necessary, but if you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Free tax filing military A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Free tax filing military To find the number, go to www. Free tax filing military irs. Free tax filing military gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free tax filing military Mail. Free tax filing military You can send your order for forms, instructions, and publications to the address below and receive a response within 10 business days after your request is received. Free tax filing military National Distribution Center P. Free tax filing military O. Free tax filing military Box 8903 Bloomington, IL 61702-8903 CD-ROM for tax products. Free tax filing military You can order Publication 1796, IRS Tax Products on CD-ROM, and obtain: A CD that is released twice so you have the latest products. Free tax filing military The first release ships in late December and the final release ships in late February. Free tax filing military Current-year forms, instructions, and publications. Free tax filing military Prior-year forms, instructions, and publications. Free tax filing military Tax Map: an electronic research tool and finding aid. Free tax filing military Tax law frequently asked questions (FAQs). Free tax filing military Tax Topics from the IRS telephone response system. Free tax filing military Fill-in, print, and save features for most tax forms. Free tax filing military Internal Revenue Bulletins. Free tax filing military Toll-free and email technical support. Free tax filing military Buy the CD-ROM from National Technical Information Service (NTIS) at www. Free tax filing military irs. Free tax filing military gov/cdorders for $25 (no handling fee) or call 1-877-233-6767 toll free to buy the CD-ROM for $25 (plus a $5 handling fee). Free tax filing military CD-ROM for small businesses. Free tax filing military Publication 3207, Small Business Resource Guide CD-ROM, has a new look and enhanced navigation features. Free tax filing military This CD includes: Helpful information, such as how to prepare a business plan, find financing for your business, and much more. Free tax filing military All the business tax forms, instructions, and publications needed to successfully manage a business. Free tax filing military Tax law changes. Free tax filing military IRS Tax Map to help you find forms, instructions, and publications by searching on a keyword or topic. Free tax filing military Web links to various government agencies, business associations, and IRS organizations. Free tax filing military “Rate the Product” survey—your opportunity to suggest changes for future editions. Free tax filing military An updated version of this CD is available each year in early April. Free tax filing military You can get a free copy by calling 1-800-829-3676 or by visiting www. Free tax filing military irs. Free tax filing military gov/smallbiz. 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