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Free Tax Forms 2012

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Free Tax Forms 2012

Free tax forms 2012 26. Free tax forms 2012   Car Expenses and Other Employee Business Expenses Table of Contents What's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. Free tax forms 2012 Parking fees. Free tax forms 2012 Advertising display on car. Free tax forms 2012 Car pools. Free tax forms 2012 Hauling tools or instruments. Free tax forms 2012 Union members' trips from a union hall. Free tax forms 2012 Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. Free tax forms 2012 Statutory employees. Free tax forms 2012 Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. Free tax forms 2012  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Free tax forms 2012 Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. Free tax forms 2012 Depreciation limits on cars, trucks, and vans. Free tax forms 2012  For 2013, the first-year limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Free tax forms 2012 For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Free tax forms 2012 For more information, see Depreciation limits in Publication 463. Free tax forms 2012 Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. Free tax forms 2012 An ordinary expense is one that is common and accepted in your trade or business. Free tax forms 2012 A necessary expense is one that is helpful and appropriate for your business. Free tax forms 2012 An expense does not have to be required to be considered necessary. Free tax forms 2012 This chapter explains the following. Free tax forms 2012 What expenses are deductible. Free tax forms 2012 How to report your expenses on your return. Free tax forms 2012 What records you need to prove your expenses. Free tax forms 2012 How to treat any expense reimbursements you may receive. Free tax forms 2012 Who does not need to use this chapter. Free tax forms 2012   If you are an employee, you will not need to read this chapter if all of the following are true. Free tax forms 2012 You fully accounted to your employer for your work-related expenses. Free tax forms 2012 You received full reimbursement for your expenses. Free tax forms 2012 Your employer required you to return any excess reimbursement and you did so. Free tax forms 2012 There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. Free tax forms 2012 If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. Free tax forms 2012 See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. Free tax forms 2012    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. Free tax forms 2012 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming Form 2106 Employee Business Expenses Form 2106-EZ Unreimbursed Employee Business Expenses Travel Expenses If you temporarily travel away from your tax home, you can use this section to determine if you have deductible travel expenses. Free tax forms 2012 This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. Free tax forms 2012 It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. Free tax forms 2012 Travel expenses defined. Free tax forms 2012   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. Free tax forms 2012   You will find examples of deductible travel expenses in Table 26-1 . Free tax forms 2012 Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. Free tax forms 2012 This rest requirement is not satisfied by merely napping in your car. Free tax forms 2012 You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Free tax forms 2012 Example 1. Free tax forms 2012 You are a railroad conductor. Free tax forms 2012 You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Free tax forms 2012 During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. Free tax forms 2012 You are considered to be away from home. Free tax forms 2012 Example 2. Free tax forms 2012 You are a truck driver. Free tax forms 2012 You leave your terminal and return to it later the same day. Free tax forms 2012 You get an hour off at your turnaround point to eat. Free tax forms 2012 Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. Free tax forms 2012 Members of the Armed Forces. Free tax forms 2012   If you are a member of the U. Free tax forms 2012 S. Free tax forms 2012 Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Free tax forms 2012 You cannot deduct your expenses for meals and lodging. Free tax forms 2012 You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Free tax forms 2012 If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. Free tax forms 2012    A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home aboard ship for travel expense purposes. Free tax forms 2012 Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Free tax forms 2012 Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Free tax forms 2012 It includes the entire city or general area in which your business or work is located. Free tax forms 2012 If you have more than one regular place of business, your tax home is your main place of business. Free tax forms 2012 See Main place of business or work , later. Free tax forms 2012 If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. Free tax forms 2012 See No main place of business or work , later. Free tax forms 2012 If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. Free tax forms 2012 As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Free tax forms 2012 Main place of business or work. Free tax forms 2012   If you have more than one place of business or work, consider the following when determining which one is your main place of business or work. Free tax forms 2012 The total time you ordinarily spend in each place. Free tax forms 2012 The level of your business activity in each place. Free tax forms 2012 Whether your income from each place is significant or insignificant. Free tax forms 2012 Example. Free tax forms 2012 You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Free tax forms 2012 You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Free tax forms 2012 Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Free tax forms 2012 No main place of business or work. Free tax forms 2012   You may have a tax home even if you do not have a regular or main place of business or work. Free tax forms 2012 Your tax home may be the home where you regularly live. Free tax forms 2012 Factors used to determine tax home. Free tax forms 2012   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. Free tax forms 2012 You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. Free tax forms 2012 You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Free tax forms 2012 You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. Free tax forms 2012   If you satisfy all three factors, your tax home is the home where you regularly live. Free tax forms 2012 If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Free tax forms 2012 If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Free tax forms 2012 Example. Free tax forms 2012 You are single and live in Boston in an apartment you rent. Free tax forms 2012 You have worked for your employer in Boston for a number of years. Free tax forms 2012 Your employer enrolls you in a 12-month executive training program. Free tax forms 2012 You do not expect to return to work in Boston after you complete your training. Free tax forms 2012 During your training, you do not do any work in Boston. Free tax forms 2012 Instead, you receive classroom and on-the-job training throughout the United States. Free tax forms 2012 You keep your apartment in Boston and return to it frequently. Free tax forms 2012 You use your apartment to conduct your personal business. Free tax forms 2012 You also keep up your community contacts in Boston. Free tax forms 2012 When you complete your training, you are transferred to Los Angeles. Free tax forms 2012 You do not satisfy factor (1) because you did not work in Boston. Free tax forms 2012 You satisfy factor (2) because you had duplicate living expenses. Free tax forms 2012 You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Free tax forms 2012 Therefore, you have a tax home in Boston. Free tax forms 2012 Tax home different from family home. Free tax forms 2012   If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. Free tax forms 2012 You also cannot deduct the cost of meals and lodging while at your tax home. Free tax forms 2012 See Example 1 . Free tax forms 2012   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Free tax forms 2012 See Example 2 . Free tax forms 2012 Example 1. Free tax forms 2012 You are a truck driver and you and your family live in Tucson. Free tax forms 2012 You are employed by a trucking firm that has its terminal in Phoenix. Free tax forms 2012 At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Free tax forms 2012 You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Free tax forms 2012 This is because Phoenix is your tax home. Free tax forms 2012 Example 2. Free tax forms 2012 Your family home is in Pittsburgh, where you work 12 weeks a year. Free tax forms 2012 The rest of the year you work for the same employer in Baltimore. Free tax forms 2012 In Baltimore, you eat in restaurants and sleep in a rooming house. Free tax forms 2012 Your salary is the same whether you are in Pittsburgh or Baltimore. Free tax forms 2012 Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Free tax forms 2012 You cannot deduct any expenses you have for meals and lodging there. Free tax forms 2012 However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Free tax forms 2012 You can deduct the cost of your round trip between Baltimore and Pittsburgh. Free tax forms 2012 You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Free tax forms 2012 Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Free tax forms 2012 It may not be practical to return to your tax home from this other location at the end of each work day. Free tax forms 2012 Temporary assignment vs. Free tax forms 2012 indefinite assignment. Free tax forms 2012   If your assignment or job away from your main place of work is temporary, your tax home does not change. Free tax forms 2012 You are considered to be away from home for the whole period you are away from your main place of work. Free tax forms 2012 You can deduct your travel expenses if they otherwise qualify for deduction. Free tax forms 2012 Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Free tax forms 2012   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Free tax forms 2012 An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. Free tax forms 2012   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. Free tax forms 2012 You may be able to deduct the cost of relocating to your new tax home as a moving expense. Free tax forms 2012 See Publication 521 for more information. Free tax forms 2012 Exception for federal crime investigations or prosecutions. Free tax forms 2012   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Free tax forms 2012 This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year, provided you meet the other requirements for deductibility. Free tax forms 2012   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate or prosecute, or provide support services for the investigation or prosecution of a federal crime. Free tax forms 2012 Determining temporary or indefinite. Free tax forms 2012   You must determine whether your assignment is temporary or indefinite when you start work. Free tax forms 2012 If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Free tax forms 2012 An assignment or job that is initially temporary may become indefinite due to changed circumstances. Free tax forms 2012 A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Free tax forms 2012 Going home on days off. Free tax forms 2012   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. Free tax forms 2012 You cannot deduct the cost of your meals and lodging there. Free tax forms 2012 However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Free tax forms 2012 You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Free tax forms 2012   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Free tax forms 2012 In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. Free tax forms 2012 Probationary work period. Free tax forms 2012   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. Free tax forms 2012 You cannot deduct any of your expenses for meals and lodging during the probationary period. Free tax forms 2012 What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. Free tax forms 2012 You can deduct ordinary and necessary expenses you have when you travel away from home on business. Free tax forms 2012 The type of expense you can deduct depends on the facts and your circumstances. Free tax forms 2012 Table 26-1 summarizes travel expenses you may be able to deduct. Free tax forms 2012 You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Free tax forms 2012 When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. Free tax forms 2012 You can use a log, diary, notebook, or any other written record to keep track of your expenses. Free tax forms 2012 The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. Free tax forms 2012 Separating costs. Free tax forms 2012   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. Free tax forms 2012 You must have a reasonable basis for making this allocation. Free tax forms 2012 For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Free tax forms 2012 Travel expenses for another individual. Free tax forms 2012   If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. Free tax forms 2012 Employee. Free tax forms 2012   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. Free tax forms 2012 Business associate. Free tax forms 2012   If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. Free tax forms 2012 A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. Free tax forms 2012 A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Free tax forms 2012 Bona fide business purpose. Free tax forms 2012   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Free tax forms 2012 Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Free tax forms 2012 Example. Free tax forms 2012 Jerry drives to Chicago on business and takes his wife, Linda, with him. Free tax forms 2012 Linda is not Jerry's employee. Free tax forms 2012 Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Free tax forms 2012 The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Free tax forms 2012 Her expenses are not deductible. Free tax forms 2012 Jerry pays $199 a day for a double room. Free tax forms 2012 A single room costs $149 a day. Free tax forms 2012 He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Free tax forms 2012 If he uses public transportation, he can deduct only his fare. Free tax forms 2012 Table 26-1. Free tax forms 2012 Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Free tax forms 2012 IF you have expenses for. Free tax forms 2012 . Free tax forms 2012 . Free tax forms 2012 THEN you can deduct the cost of. Free tax forms 2012 . Free tax forms 2012 . Free tax forms 2012 transportation travel by airplane, train, bus, or car between your home and your business destination. Free tax forms 2012 If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. Free tax forms 2012 If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. Free tax forms 2012 taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. Free tax forms 2012 baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Free tax forms 2012 car operating and maintaining your car when traveling away from home on business. Free tax forms 2012 You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. Free tax forms 2012 If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Free tax forms 2012 lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Free tax forms 2012 Meals include amounts spent for food, beverages, taxes, and related tips. Free tax forms 2012 See Meals and Incidental Expenses for additional rules and limits. Free tax forms 2012 cleaning dry cleaning and laundry. Free tax forms 2012 telephone business calls while on your business trip. Free tax forms 2012 This includes business communication by fax machine or other communication devices. Free tax forms 2012 tips tips you pay for any expenses in this chart. Free tax forms 2012 other other similar ordinary and necessary expenses related to your business travel. Free tax forms 2012 These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. Free tax forms 2012 Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. Free tax forms 2012 It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Free tax forms 2012 The meal is business-related entertainment. Free tax forms 2012 Business-related entertainment is discussed under Entertainment Expenses , later. Free tax forms 2012 The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. Free tax forms 2012 Lavish or extravagant. Free tax forms 2012   You cannot deduct expenses for meals that are lavish or extravagant. Free tax forms 2012 An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Free tax forms 2012 Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Free tax forms 2012 50% limit on meals. Free tax forms 2012   You can figure your meal expenses using either of the following methods. Free tax forms 2012 Actual cost. Free tax forms 2012 The standard meal allowance. Free tax forms 2012 Both of these methods are explained below. Free tax forms 2012 But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Free tax forms 2012   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. Free tax forms 2012 If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Free tax forms 2012 The 50% limit is explained later under Entertainment Expenses . Free tax forms 2012 Accountable and nonaccountable plans are discussed later under Reimbursements . Free tax forms 2012 Actual cost. Free tax forms 2012   You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. Free tax forms 2012 If you use this method, you must keep records of your actual cost. Free tax forms 2012 Standard meal allowance. Free tax forms 2012   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Free tax forms 2012 It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. Free tax forms 2012 The set amount varies depending on where and when you travel. Free tax forms 2012 In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Free tax forms 2012 If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Free tax forms 2012 See Recordkeeping , later. Free tax forms 2012 Incidental expenses. Free tax forms 2012   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Free tax forms 2012 Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Free tax forms 2012 Incidental expenses only method. Free tax forms 2012   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Free tax forms 2012 The amount of the deduction is $5 a day. Free tax forms 2012 You can use this method only if you did not pay or incur any meal expenses. Free tax forms 2012 You cannot use this method on any day that you use the standard meal allowance. Free tax forms 2012    Federal employees should refer to the Federal Travel Regulations at  www. Free tax forms 2012 gsa. Free tax forms 2012 gov. Free tax forms 2012 Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Free tax forms 2012 50% limit may apply. Free tax forms 2012   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. Free tax forms 2012 If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. Free tax forms 2012 The 50% limit is explained later under Entertainment Expenses . Free tax forms 2012 Accountable and nonaccountable plans are discussed later under Reimbursements . Free tax forms 2012 There is no optional standard lodging amount similar to the standard meal allowance. Free tax forms 2012 Your allowable lodging expense deduction is your actual cost. Free tax forms 2012 Who can use the standard meal allowance. Free tax forms 2012   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. Free tax forms 2012   Use of the standard meal allowance for other travel. Free tax forms 2012    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Free tax forms 2012 You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Free tax forms 2012 You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Free tax forms 2012 Amount of standard meal allowance. Free tax forms 2012   The standard meal allowance is the federal M&IE rate. Free tax forms 2012 For travel in 2013, the daily rate for most small localities in the United States is $46. Free tax forms 2012   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Free tax forms 2012 You can find this information (organized by state) on the Internet at www. Free tax forms 2012 gsa. Free tax forms 2012 gov. Free tax forms 2012 Click on “Per Diem Rates,” then select “2013” for the period January 1, 2013 – September 30, 2013, and select “2014” for the period October 1, 2013 – December 31, 2013. Free tax forms 2012 However, you can apply the rates in effect before October 1, 2013, for expenses of all travel within the United States for 2013 instead of the updated rates. Free tax forms 2012 You must consistently use either the rates for the first 9 months for all of 2013 or the updated rates for the period of October 1, 2013, through December 31, 2013. Free tax forms 2012   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. Free tax forms 2012 If you work in the transportation industry, however, see Special rate for transportation workers , later. Free tax forms 2012 Standard meal allowance for areas outside the continental United States. Free tax forms 2012    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Free tax forms 2012 The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Free tax forms 2012 S. Free tax forms 2012 Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Free tax forms 2012 The Department of State establishes per diem rates for all other foreign areas. Free tax forms 2012    You can access per diem rates for non-foreign areas outside the continental United States at: www. Free tax forms 2012 defensetravel. Free tax forms 2012 dod. Free tax forms 2012 mil/site/perdiemCalc. Free tax forms 2012 cfm. Free tax forms 2012 You can access all other foreign per diem rates at www. Free tax forms 2012 state. Free tax forms 2012 gov/travel/. Free tax forms 2012 Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. Free tax forms 2012 Special rate for transportation workers. Free tax forms 2012   You can use a special standard meal allowance if you work in the transportation industry. Free tax forms 2012 You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. Free tax forms 2012 If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). Free tax forms 2012   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. Free tax forms 2012 If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. Free tax forms 2012 Travel for days you depart and return. Free tax forms 2012   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). Free tax forms 2012 You can do so by one of two methods. Free tax forms 2012 Method 1: You can claim 3/4 of the standard meal allowance. Free tax forms 2012 Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Free tax forms 2012 Example. Free tax forms 2012 Jen is employed in New Orleans as a convention planner. Free tax forms 2012 In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Free tax forms 2012 She left her home in New Orleans at 10 a. Free tax forms 2012 m. Free tax forms 2012 on Wednesday and arrived in Washington, DC, at 5:30 p. Free tax forms 2012 m. Free tax forms 2012 After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Free tax forms 2012 m. Free tax forms 2012 Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Free tax forms 2012 Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Free tax forms 2012 Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Free tax forms 2012 For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. Free tax forms 2012 Travel in the United States The following discussion applies to travel in the United States. Free tax forms 2012 For this purpose, the United States includes only the 50 states and the District of Columbia. Free tax forms 2012 The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. Free tax forms 2012 See Part of Trip Outside the United States , later. Free tax forms 2012 Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. Free tax forms 2012 If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. Free tax forms 2012 These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Free tax forms 2012 Example. Free tax forms 2012 You work in Atlanta and take a business trip to New Orleans in May. Free tax forms 2012 On your way home, you stop in Mobile to visit your parents. Free tax forms 2012 You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Free tax forms 2012 If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. Free tax forms 2012 You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. Free tax forms 2012 The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Free tax forms 2012 Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. Free tax forms 2012 However, you can deduct any expenses you have while at your destination that are directly related to your business. Free tax forms 2012 A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. Free tax forms 2012 The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. Free tax forms 2012 Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later under Travel Outside the United States for that part of the trip. Free tax forms 2012 For the part of your trip that is inside the United States, use the rules for travel in the United States. Free tax forms 2012 Travel outside the United States does not include travel from one point in the United States to another point in the United States. Free tax forms 2012 The following discussion can help you determine whether your trip was entirely within the United States. Free tax forms 2012 Public transportation. Free tax forms 2012   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Free tax forms 2012 Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . Free tax forms 2012 Example. Free tax forms 2012 You fly from New York to Puerto Rico with a scheduled stop in Miami. Free tax forms 2012 You return to New York nonstop. Free tax forms 2012 The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Free tax forms 2012 Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Free tax forms 2012 Private car. Free tax forms 2012   Travel by private car in the United States is travel between points in the United States, even when you are on your way to a destination outside the United States. Free tax forms 2012 Example. Free tax forms 2012 You travel by car from Denver to Mexico City and return. Free tax forms 2012 Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. Free tax forms 2012 The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Free tax forms 2012 Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. Free tax forms 2012 For this purpose, the United States includes only the 50 states and the District of Columbia. Free tax forms 2012 How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. Free tax forms 2012 See chapter 1 of Publication 463 for information on luxury water travel. Free tax forms 2012 Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. Free tax forms 2012 Travel entirely for business. Free tax forms 2012   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Free tax forms 2012 Travel considered entirely for business. Free tax forms 2012   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. Free tax forms 2012 Exception 1 - No substantial control. Free tax forms 2012   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Free tax forms 2012 The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Free tax forms 2012   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, Are not related to your employer, and Are not a managing executive. Free tax forms 2012    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . Free tax forms 2012   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. Free tax forms 2012    A self-employed person generally has substantial control over arranging business trips. Free tax forms 2012 Exception 2 - Outside United States no more than a week. Free tax forms 2012   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Free tax forms 2012 One week means 7 consecutive days. Free tax forms 2012 In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. Free tax forms 2012 Exception 3 - Less than 25% of time on personal activities. Free tax forms 2012   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. Free tax forms 2012 For this purpose, count both the day your trip began and the day it ended. Free tax forms 2012 Exception 4 - Vacation not a major consideration. Free tax forms 2012   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. Free tax forms 2012 Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on nonbusiness activities, you generally cannot deduct all of your travel expenses. Free tax forms 2012 You can only deduct the business portion of your cost of getting to and from your destination. Free tax forms 2012 You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. Free tax forms 2012 These travel allocation rules are discussed in chapter 1 of Publication 463. Free tax forms 2012 You do not have to allocate your travel expense deduction if you meet one of the four exceptions listed earlier under Travel considered entirely for business. Free tax forms 2012 In those cases, you can deduct the total cost of getting to and from your destination. Free tax forms 2012 Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. Free tax forms 2012 If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. Free tax forms 2012 Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Free tax forms 2012 You cannot deduct the travel expenses for your family. Free tax forms 2012 If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Free tax forms 2012 Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Free tax forms 2012 You can deduct your travel expenses only if your attendance is connected to your own trade or business. Free tax forms 2012 Convention agenda. Free tax forms 2012   The convention agenda or program generally shows the purpose of the convention. Free tax forms 2012 You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. Free tax forms 2012 The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. Free tax forms 2012 Conventions held outside the North American area. Free tax forms 2012    See chapter 1 of Publication 463 for information on conventions held outside the North American area. Free tax forms 2012 Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Free tax forms 2012 You can deduct entertainment expenses only if they are both ordinary and necessary (defined earlier in the Introduction ) and meet one of the following tests. Free tax forms 2012 Directly-related test. Free tax forms 2012 Associated test. Free tax forms 2012 Both of these tests are explained in chapter 2 of Publication 463. Free tax forms 2012 The amount you can deduct for entertainment expenses may be limited. Free tax forms 2012 Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Free tax forms 2012 This limit is discussed next. Free tax forms 2012 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Free tax forms 2012 (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. Free tax forms 2012 See Individuals subject to “hours of service” limits , later. Free tax forms 2012 ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Free tax forms 2012 Figure 26-A summarizes the general rules explained in this section. Free tax forms 2012 The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. Free tax forms 2012 Included expenses. Free tax forms 2012   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. Free tax forms 2012 However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Free tax forms 2012 Application of 50% limit. Free tax forms 2012   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later in this section. Free tax forms 2012   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Free tax forms 2012 It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. Free tax forms 2012 It also applies to the cost of meals included in deductible educational expenses. Free tax forms 2012 When to apply the 50% limit. Free tax forms 2012   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Free tax forms 2012 You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. Free tax forms 2012 Example 1. Free tax forms 2012 You spend $200 for a business-related meal. Free tax forms 2012 If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Free tax forms 2012 Your deduction cannot be more than $45 (. Free tax forms 2012 50 × $90). Free tax forms 2012 Example 2. Free tax forms 2012 You purchase two tickets to a concert and give them to a client. Free tax forms 2012 You purchased the tickets through a ticket agent. Free tax forms 2012 You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Free tax forms 2012 Your deduction cannot be more than $80 (. Free tax forms 2012 50 × $160). Free tax forms 2012 Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Free tax forms 2012 Figure 26-A can help you determine if the 50% limit applies to you. Free tax forms 2012 Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Free tax forms 2012 Employee's reimbursed expenses. Free tax forms 2012   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Free tax forms 2012 Accountable plans are discussed later under Reimbursements . Free tax forms 2012 Individuals subject to “hours of service” limits. Free tax forms 2012   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. Free tax forms 2012 The percentage is 80%. Free tax forms 2012   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Free tax forms 2012 Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Free tax forms 2012 Interstate truck operators and bus drivers who are under Department of Transportation regulations. Free tax forms 2012 Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Free tax forms 2012 Certain merchant mariners who are under Coast Guard regulations. Free tax forms 2012 Other exceptions. Free tax forms 2012   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. Free tax forms 2012 These are discussed in Publication 463. Free tax forms 2012 Figure 26-A. Free tax forms 2012 Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Free tax forms 2012 See Exceptions to the 50% Limit . Free tax forms 2012 Please click here for the text description of the image. Free tax forms 2012 Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Free tax forms 2012 Entertainment. Free tax forms 2012    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Free tax forms 2012 Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; or on hunting, fishing, vacation, and similar trips. Free tax forms 2012 A meal as a form of entertainment. Free tax forms 2012   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. Free tax forms 2012 A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Free tax forms 2012 To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Free tax forms 2012 You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Free tax forms 2012 Separating costs. Free tax forms 2012   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. Free tax forms 2012 You must have a reasonable basis for making this allocation. Free tax forms 2012 For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Free tax forms 2012 Taking turns paying for meals or entertainment. Free tax forms 2012   If a group of business acquaintances take turns picking up each others' meal or entertainment checks without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Free tax forms 2012 Lavish or extravagant expenses. Free tax forms 2012   You cannot deduct expenses for entertainment that are lavish or extravagant. Free tax forms 2012 An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Free tax forms 2012 Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Free tax forms 2012 Trade association meetings. Free tax forms 2012    You can deduct entertainment expenses that are directly related to, and necessary for, attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. Free tax forms 2012 These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Free tax forms 2012 Entertainment tickets. Free tax forms 2012   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Free tax forms 2012 For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. Free tax forms 2012 What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Free tax forms 2012 Club dues and membership fees. Free tax forms 2012   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Free tax forms 2012 This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities. Free tax forms 2012   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Free tax forms 2012 You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Free tax forms 2012 Entertainment facilities. Free tax forms 2012   Generally, you cannot deduct any expense for the use of an entertainment facility. Free tax forms 2012 This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Free tax forms 2012   An entertainment facility is any property you own, rent, or use for entertainment. Free tax forms 2012 Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. Free tax forms 2012 Out-of-pocket expenses. Free tax forms 2012   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. Free tax forms 2012 These are not expenses for the use of an entertainment facility. Free tax forms 2012 However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. Free tax forms 2012 Additional information. Free tax forms 2012   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. Free tax forms 2012 Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Free tax forms 2012 This section explains the limits and rules for deducting the costs of gifts. Free tax forms 2012 $25 limit. Free tax forms 2012   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. Free tax forms 2012 A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. Free tax forms 2012   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. Free tax forms 2012 This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use or benefit. Free tax forms 2012   If you and your spouse both give gifts, both of you are treated as one taxpayer. Free tax forms 2012 It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. Free tax forms 2012 If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. Free tax forms 2012 Incidental costs. Free tax forms 2012   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. Free tax forms 2012   A cost is incidental only if it does not add substantial value to the gift. Free tax forms 2012 For example, the cost of customary gift wrapping is an incidental cost. Free tax forms 2012 However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. Free tax forms 2012 Exceptions. Free tax forms 2012   The following items are not considered gifts for purposes of the $25 limit. Free tax forms 2012 An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. Free tax forms 2012 Examples include pens, desk sets, and plastic bags and cases. Free tax forms 2012 Signs, display racks, or other promotional material to be used on the business premises of the recipient. Free tax forms 2012 Gift or entertainment. Free tax forms 2012   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Free tax forms 2012 However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. Free tax forms 2012    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Free tax forms 2012 You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. Free tax forms 2012    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Free tax forms 2012 You cannot choose, in this case, to treat the cost of the tickets as a gift expense. Free tax forms 2012 Transportation Expenses This section discusses expenses you can deduct for business transportation when you are not traveling away from home as defined earlier under Travel Expenses . Free tax forms 2012 These expenses include the cost of transportation by air, rail, bus, taxi, etc. Free tax forms 2012 , and the cost of driving and maintaining your car. Free tax forms 2012 Transportation expenses include the ordinary and necessary costs of all of the following. Free tax forms 2012 Getting from one workplace to another in the course of your business or profession when you are traveling within the area of your tax home. Free tax forms 2012 (Tax home is defined earlier under Travel Expenses . Free tax forms 2012 ) Visiting clients or customers. Free tax forms 2012 Going to a business meeting away from your regular workplace. Free tax forms 2012 Getting from your home to a temporary workplace when you have one or more regular places of work. Free tax forms 2012 These temporary workplaces can be either within the area of your tax home or outside that area. Free tax forms 2012 Transportation expenses do not include expenses you have while traveling away from home overnight. Free tax forms 2012 Those expenses are travel expenses, discussed earlier. Free tax forms 2012 However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Free tax forms 2012 See Car Expenses , later. Free tax forms 2012 Illustration of transportation expenses. Free tax forms 2012    Figure 26-B illustrates the rules for when you can deduct transportation expenses when you have a regular or main job away from your home. Free tax forms 2012 You may want to refer to it when deciding whether you can deduct your transportation expenses. Free tax forms 2012 Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Free tax forms 2012 However, there are many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for same trade or business, or if you have a home office. Free tax forms 2012 Temporary work location. Free tax forms 2012   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. Free tax forms 2012   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. Free tax forms 2012   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Free tax forms 2012   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Free tax forms 2012 It will not be treated as temporary after the date you determine it will last more than 1 year. Free tax forms 2012   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. Free tax forms 2012 You may have deductible travel expenses as discussed earlier in this chapter. Free tax forms 2012 No regular place of work. Free tax forms 2012   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Free tax forms 2012   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Free tax forms 2012   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Free tax forms 2012 These are nondeductible commuting expenses. Free tax forms 2012 Two places of work. Free tax forms 2012   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. Free tax forms 2012 However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Free tax forms 2012   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Free tax forms 2012 You cannot deduct them. Free tax forms 2012 Armed Forces reservists. Free tax forms 2012   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Free tax forms 2012 You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. Free tax forms 2012   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Free tax forms 2012 In this case, your transportation generally is a nondeductible commuting expense. Free tax forms 2012 However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Free tax forms 2012   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Free tax forms 2012   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Free tax forms 2012 These expenses are discussed earlier under Travel Expenses . Free tax forms 2012   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to income rather than as an itemized deduction. Free tax forms 2012 See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. Free tax forms 2012 Commuting expenses. Free tax forms 2012   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. Free tax forms 2012 These costs are personal commuting expenses. Free tax forms 2012 You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Free tax forms 2012 You cannot deduct commuting expenses even if you work during the commuting trip. Free tax forms 2012 Example. Free tax forms 2012 You sometimes use your cell phone to make business calls while commuting to and from work. Free tax forms 2012 Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Free tax forms 2012 These activities do not change the trip from personal to business. Free tax forms 2012 You cannot deduct your commuting expenses. Free tax forms 2012 Parking fees. Free tax forms 2012   Fees you pay to park your car at your place of business are nondeductible commuting expenses. Free tax forms 2012 You can, however, deduct business-related parking fees when visiting a customer or client. Free tax forms 2012 Advertising display on car. Free tax forms 2012   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Free tax forms 2012 If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Free tax forms 2012 Car pools. Free tax forms 2012   You cannot deduct the cost of using your car in a nonprofit car pool. Free tax forms 2012 Do not include payments you receive from the passengers in your income. Free tax forms 2012 These payments are considered reimbursements of your expenses. Free tax forms 2012 However, if you operate a car pool for a profit, you must include payments from passengers in your income. Free tax forms 2012 You can then deduct your car expenses (using the rules in this chapter). Free tax forms 2012 Hauling tools or instruments. Free tax forms 2012   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Free tax forms 2012 However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Free tax forms 2012 Union members' trips from a union hall. Free tax forms 2012   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Free tax forms 2012 Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Free tax forms 2012 Office in the home. Free tax forms 2012   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Free tax forms 2012 (See chapter 28 for information on determining if your home office qualifies as a principal place of business. Free tax forms 2012 ) Figure 26-B. Free tax forms 2012 When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. Free tax forms 2012 (Do not use this chart if your home is your principal place of business. Free tax forms 2012 See Office in the home . Free tax forms 2012 ) Please click here for the text description of the image. Free tax forms 2012 Figure 26-B. Free tax forms 2012 Local Transportation Examples of deductible transportation. Free tax forms 2012   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Free tax forms 2012 Example 1. Free tax forms 2012 You regularly work in an office in the city where you live. Free tax forms 2012 Your employer sends you to a 1-week training session at a different office in the same city. Free tax forms 2012 You travel directly from your home to the training location and return each day. Free tax forms 2012 You can deduct the cost of your daily round-trip transportation between your home and the training location. Free tax forms 2012 Example 2. Free tax forms 2012 Your principal place of business is in your home. Free tax forms 2012 You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Free tax forms 2012 Example 3. Free tax forms 2012 You have no regular office, and you do not have an office in your home. Free tax forms 2012 In this case, the location of your first business contact inside the metropolitan area is considered your office. Free tax forms 2012 Transportation expenses between your home and this first contact are nondeductible commuting expenses. Free tax forms 2012 Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Free tax forms 2012 While you cannot deduct the costs of these first and last trips, you can deduct the costs of going from one client or customer to another. Free tax forms 2012 With no regular or home office, the costs of travel between two or more business contacts in a metropolitan area are deductible while the costs of travel between the home to (and from) business contacts are not deductible. Free tax forms 2012 Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. Free tax forms 2012 You generally can use one of the two following methods to figure your deductible expenses. Free tax forms 2012 Standard mileage rate. Free tax forms 2012 Actual car expenses. Free tax forms 2012 If you use actual car expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. Free tax forms 2012 See Leasing a car under Actual Car Expenses, later. Free tax forms 2012 In this chapter, “car” includes a van, pickup, or panel truck. Free tax forms 2012 Rural mail carriers. Free tax forms 2012   If you are a rural mail carrier, you may be able to treat the amount of qualified reimbursement you received as the amount of your allowable expense. Free tax forms 2012 Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. Free tax forms 2012   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). Free tax forms 2012 You must complete Form 2106 and attach it to your Form 1040. Free tax forms 2012   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Free tax forms 2012 It is given as an equipment maintenance allowance (EMA) to employees of the U. Free tax forms 2012 S. Free tax forms 2012 Postal Service. Free tax forms 2012 It is at the rate contained in the 1991 collective bargaining agreement. Free tax forms 2012 Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Free tax forms 2012 See your employer for information on your reimbursement. Free tax forms 2012 If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Free tax forms 2012 Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. Free tax forms 2012 For 2013, the standard mileage rate for business use is 56½ cents per mile. Free tax forms 2012 If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, but see Parking fees and tolls, later. Free tax forms 2012 You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. Free tax forms 2012 See Reimbursements under How To Report, later. Free tax forms 2012 Choosing the standard mileage rate. Free tax forms 2012   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Free tax forms 2012 Then in later years, you can choose to use either the standard mileage rate or actual expenses. Free tax forms 2012   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Free tax forms 2012   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Free tax forms 2012 You cannot revoke the choice. Free tax forms 2012 However, in a later year, you can switch from the standard mileage rate to the actual expenses method. Free tax forms 2012 If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. Free tax forms 2012 Example. Free tax forms 2012 Larry is an employee who occasionally uses his own car for business purposes. Free tax forms 2012 He purchased the car in 2011, but he did not claim any unreimburse
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The Free Tax Forms 2012

Free tax forms 2012 1. Free tax forms 2012   Application, Approval, and Appeal Procedures Table of Contents Introduction Topics - This chapter discusses: Application ProceduresForms Required Required Inclusions Miscellaneous Procedures Rulings and Determination LettersEffective Date of Exemption Revocation or Modification of Exemption Appeal ProceduresAppeals Office Consideration EO Technical Consideration Administrative Remedies Appeal to Courts Group Exemption LetterCentral Organization Application Procedure Keeping the Group Exemption Letter in Force Events Causing Loss of Group Exemption Introduction If your organization is one of the organizations described in this publication and is seeking recognition of tax-exempt status from the IRS, you should follow the procedures described in this chapter and the instructions that accompany the appropriate application forms. Free tax forms 2012 For information on section 501(c)(3) organizations, go to Section 501(c)(3) Organizations chapter 3. Free tax forms 2012 If your organization is seeking exemption under one of the other paragraphs of section 501(c), see chapter 4. Free tax forms 2012 Topics - This chapter discusses: Application procedures that generally apply to all organizations discussed in this publication, including the application forms; Rulings and determination letters (approvals/disapprovals); Appeal procedures available if an adverse determination letter is proposed; and Group exemption letters. Free tax forms 2012 Application Procedures Oral requests for recognition of exemption will not be considered by the IRS. Free tax forms 2012 Your application for tax-exempt status must be in writing using the appropriate forms as discussed below. Free tax forms 2012 Forms Required If your organization is seeking recognition of exemption from federal income tax, it must use a specific application prescribed by the IRS in Revenue Procedure 2013–9, sec. Free tax forms 2012 3. Free tax forms 2012 If your organization is a central organization with exempt status, see Group Exemption Letter , later. Free tax forms 2012 All applications must be signed by an authorized individual. Free tax forms 2012 Form 1023, Application for Recognition of Exemption. Free tax forms 2012   File Form 1023 if you are seeking recognition of exemption under section: 501(c)(3) Corporations, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports, or prevention of cruelty for children or animals, 501(e) Cooperative hospital service organization, 501(f) Cooperative service organization of operating educational organizations, 501(k) Certain organizations providing child care, 501(n) Charitable risk pools, and 501(q) Credit counseling organizations. Free tax forms 2012 Form 1024, Application for Recognition of Exemption Under Section 501(a). Free tax forms 2012    File Form 1024 if you are seeking recognition of exemption under section: 501(c)(2) Title holding corporations, 501(c)(4) Civic leagues, social welfare organizations, 501(c)(5) Labor, agricultural, or horticultural organizations, 501(c)(6) Business leagues, chambers of commerce, etc. Free tax forms 2012 , 501(c)(7) Social clubs, 501(c)(8) Fraternal beneficiary societies, orders, or associations, 501(c)(9) Voluntary employees’ beneficiary associations, 501(c)(10) Domestic fraternal societies, orders, etc. Free tax forms 2012 , 501(c)(12) Benevolent life insurance associations, mutual ditch or irrigation companies, mutual or cooperative telephone companies, 501(c)(13) Cemetery companies, 501(c)(15) Mutual insurance companies or associations, 501(c)(17) Trusts providing for the payment of supplemental unemployment compensation benefits, 501(c)(19) A post, organization, auxiliary unit, etc. Free tax forms 2012 of past or present members of the Armed Forces of the United States, and 501(c)(25) Title holding corporations or trusts. Free tax forms 2012  Form 8718, User Fee for Exempt Organization Determination Letter Request, must also be sent along with Form 1024. Free tax forms 2012 Letter application. Free tax forms 2012   If your organization is seeking recognition of exemption under section 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29), submit a letter application with Form 8718. Free tax forms 2012 See Required Inclusions for the information to include with the letter application. Free tax forms 2012 Form 1028. Free tax forms 2012   Use Form 1028 if your organization is a farmers’ cooperative seeking recognition of exemption under section 521. Free tax forms 2012 You must also submit Form 8718. Free tax forms 2012 Form 8871. Free tax forms 2012    Use Form 8871 if you are a political party or campaign committee for a candidate for federal, state or local office seeking to be treated as tax-exempt under section 527. Free tax forms 2012 See Political Organization Income Tax Return , later. Free tax forms 2012    Some organizations do not have to use specific application forms. Free tax forms 2012 The application your organization must use is specified in the chapter in this publication dealing with your kind of organization. Free tax forms 2012 It is also shown in the Organization Reference Chart, later. Free tax forms 2012 Power of attorney. Free tax forms 2012   If your organization expects to be represented by an individual such as an attorney, CPA, officer or other person authorized to practice before the IRS, whether in person or by correspondence, you must file a Form 2848 with your exemption application. Free tax forms 2012 The power of attorney must specifically authorize an individual to represent your organization. Free tax forms 2012 You cannot name an organization, firm, etc. Free tax forms 2012 as your representative. Free tax forms 2012 Form 2848, Power of Attorney and Declaration of Representative, can be used for this purpose. Free tax forms 2012 The categories of individuals who can represent you before the IRS are listed on the form. Free tax forms 2012 Non-exemption for terrorist organizations. Free tax forms 2012   An organization that is identified or designated as a terrorist organization within the meaning of section 501(p)(2) is not eligible to apply for recognition of exemption. Free tax forms 2012 User fee. Free tax forms 2012   The law requires the payment of a user fee for determination letter requests such as your application for recognition of tax-exempt status. Free tax forms 2012 If you are filing Form 1023, user fee information is included in Part XI. Free tax forms 2012 If you are required to apply for recognition of exemption by submitting Form 1024, a letter application, etc. Free tax forms 2012 and you must pay a user fee, you should use Form 8718 to figure the amount of your user fee and to pay it. Free tax forms 2012 Your payment must accompany your request. Free tax forms 2012 The IRS will not process a request unless the fee has been paid. Free tax forms 2012    For the current user fee amount and processing time for applications go to IRS. Free tax forms 2012 gov and select “Charities and Non-Profits” from the buttons near the top. Free tax forms 2012 Then select the underlined link “How to Apply To Be Tax-Exempt” for the latest user fees or I want to check the status of my application for more information. Free tax forms 2012 You can also call 1-877-829-5500. Free tax forms 2012 Required Inclusions Employer identification number (EIN). Free tax forms 2012   Every exempt organization must have an EIN, whether or not it has any employees. Free tax forms 2012 An EIN is required before an exemption application is submitted. Free tax forms 2012 Information on how to apply for an EIN by using one of the following methods can be found at Employer ID Numbers (EIN): Online— This is the preferred method for requesting an EIN. Free tax forms 2012 The EIN is issued immediately once the application information is validated. Free tax forms 2012 By telephone at 1-800-829-4933, from 7:00 a. Free tax forms 2012 m. Free tax forms 2012 to 7:00 p. Free tax forms 2012 m. Free tax forms 2012 local time, Monday through Friday. Free tax forms 2012 The EIN is provided over the phone to an authorized individual. Free tax forms 2012 By mailing or faxing Form SS-4, Application for Employer Identification Number. Free tax forms 2012 If the faxed Form SS-4 includes the taxpayer's fax number, a fax will be sent back with the EIN within four (4) business days. Free tax forms 2012    Use only one method for each entity so you do not receive more than one EIN for an entity. Free tax forms 2012   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. Free tax forms 2012 Organizing documents. Free tax forms 2012   Your application should include a copy of the organizing or enabling document that is signed by a principal officer or is accompanied by a written declaration signed by an authorized individual certifying that the document is a complete and accurate copy of the original or meets the requirements of a conformed copy. Free tax forms 2012   If your organizing or enabling document are articles of incorporation, include evidence that it was filed and approved by a state official. Free tax forms 2012 (For example, a stamped “Filed” copy dated by the Secretary of State is prima facie evidence that it was filed and approved by a state official. Free tax forms 2012 ) A copy of the articles of incorporation can also be submitted with a written declaration signed by an authorized individual indicating the copy is complete and was filed and approved by the state, including the date filed. Free tax forms 2012 Bylaws. Free tax forms 2012   Bylaws alone are not organizing documents. Free tax forms 2012 However, if your organization has adopted bylaws, include a current copy. Free tax forms 2012 The bylaws need not be signed if submitted as an attachment. Free tax forms 2012   If your organization's name has been officially changed by an amendment to your organizing instruments, you should also attach a conformed copy of that amendment to your application. Free tax forms 2012    Bylaws may be considered an organizing document only if they are properly structured (includes name, purpose, signatures, and intent to form an organization). Free tax forms 2012 Conformed copy. Free tax forms 2012   A conformed copy is a copy that agrees with the original and all amendments to it. Free tax forms 2012 If the original document required a signature, the copy should either be signed by a principal officer or, if not signed, be accompanied by a written declaration signed by an authorized officer of the organization. Free tax forms 2012 With either option, the officer must certify that the document is a complete and accurate copy of the original. Free tax forms 2012 A certificate of incorporation should be approved and dated by an appropriate state official. Free tax forms 2012 Attachments. Free tax forms 2012    When submitting attachments, every attachment should show your organization's name and EIN. Free tax forms 2012 It should also state that it is an attachment to your application form and identify the part and line item number to which it applies. Free tax forms 2012 Original documents. Free tax forms 2012   Do not submit original documents because they become part of the IRS file and cannot be returned. Free tax forms 2012 Description of activities. Free tax forms 2012   Your application must include a full description of the proposed activities of your organization, including each of the fundraising activities of a section 501(c)(3) organization and a narrative description of anticipated receipts and contemplated expenditures. Free tax forms 2012 When describing the activities in which your organization expects to engage, you must include the standards, criteria, procedures, or other means that your organization adopted or planned for carrying out those activities. Free tax forms 2012   To determine the information you need to provide, you should study the part of this publication that applies to your organization. Free tax forms 2012 The appropriate chapter will describe the purposes and activities that your organization must pursue, engage in, and include in your application in order to achieve exempt status. Free tax forms 2012   Often, your organization's articles of organization (or other organizing instruments) contain descriptions of your organization's purposes and activities. Free tax forms 2012   Your application should describe completely and in detail your past, present, and planned activities. Free tax forms 2012 Financial data. Free tax forms 2012   You must include in your application financial statements showing your receipts and expenditures and a balance sheet for the current year and the 3 preceding years (or for the number of years your organization was in existence, if less than 4 years). Free tax forms 2012 For each accounting period, you must describe the sources of your receipts and the nature of your expenditures. Free tax forms 2012   If you have not yet begun operations, or have operated for less than 1 year, a proposed budget for 2 full accounting periods and a current statement of assets and liabilities will be acceptable. Free tax forms 2012 Exempt status established in application. Free tax forms 2012   If your application and its supporting documents show that your organization meets the requirements for tax-exempt status under the Code section you applied, the IRS will issue a favorable determination letter or ruling. Free tax forms 2012 Miscellaneous Procedures To help in processing your application, be sure to attach all schedules, statements, and other documents required by the application form. Free tax forms 2012 If you do not attach them, you may have to resubmit your application or you may otherwise encounter a delay in processing your application. Free tax forms 2012 Incomplete application. Free tax forms 2012   If an application is not complete and does not contain all the required attachments found under Required Inclusions, the IRS may return it to you for completion. Free tax forms 2012 The IRS may keep the application and send a letter requesting the missing information if most of the information has been received. Free tax forms 2012   If the IRS returns the application or requests additional information from you, that application will be considered filed on the date the substantially completed application is postmarked, or if no postmark, received at the IRS. Free tax forms 2012   Generally, the user fee will not be refunded if an incomplete application is filed. Free tax forms 2012   Additional information may be requested if necessary to clarify the nature of your organization. Free tax forms 2012 Application made under wrong paragraph of section 501(c). Free tax forms 2012   Occasionally, an organization appears to qualify for exemption under a paragraph of section 501(c) that is different from the one for which the organization applied. Free tax forms 2012 If the application was made on Form 1024, which applies to more than one paragraph of section 501(c), the organization can be recognized as exempt under any paragraph to which the form applies if the organization has agreed to have its application considered under that paragraph. Free tax forms 2012 It must also supply any additional information required for the application under the new paragraph. Free tax forms 2012 Different application form needed. Free tax forms 2012   If a different application form is required for your organization, the IRS will so advise your organization and will provide the appropriate application form for your convenience in reapplying under that paragraph, if you wish to do so. Free tax forms 2012 Although supporting information previously furnished need not be duplicated, you must provide any necessary additional information required for the application. Free tax forms 2012 If your reply is not received within a limited time, your application will be processed only for the paragraph under which you originally applied. Free tax forms 2012   When a specific application form is needed for the paragraph under which your organization qualifies, that form is required before a letter recognizing exemption can be issued. Free tax forms 2012 This includes cases in which a determination letter is modified to recognize an organization's exempt status under a paragraph other than the paragraph under which it originally established exemption. Free tax forms 2012 IRS responses. Free tax forms 2012   Organizations that submit a complete application will receive an acknowledgment from the IRS. Free tax forms 2012 Others will receive a letter requesting more information or returning an incomplete application. Free tax forms 2012 Applicants also will be notified if the application is forwarded to EO Technical Office for consideration. Free tax forms 2012 These letters will be sent out as soon as possible after receipt of the organization's application. Free tax forms 2012 Withdrawal of application. Free tax forms 2012   An application may be withdrawn at any time before the issuance of a ruling or determination letter upon the written request of a principal officer or authorized representative of your organization. Free tax forms 2012 However, the withdrawal will not prevent the information contained in the application from being used by the IRS in any subsequent examination of your organization's returns. Free tax forms 2012 The information forwarded with an application will not be returned to your organization and, generally, when an application is withdrawn, the user fee paid will not be refunded. Free tax forms 2012 Requests for withholding of information from the public. Free tax forms 2012   The law requires many exempt organizations and private foundations to make their application forms and annual information returns available for public inspection. Free tax forms 2012 The law also requires the IRS to make available for public inspection, in accordance with section 6104 and the related regulations, your approved application for recognition of exemption (including any papers submitted in support of the application) and the ruling or determination letter (discussed later, under Rulings and Determination Letters . Free tax forms 2012 )   Any information submitted in the application or in support of it that relates to any trade secret, patent, process, style of work, or apparatus, upon request, can be withheld from public inspection if the IRS determines that the disclosure of such information would adversely affect the organization. Free tax forms 2012 Your request must: Identify the material to be withheld (the document, page, paragraph, and line) by clearly marking it “Not Subject To Public Inspection. Free tax forms 2012 ” Include the reasons for your organization's position that the information is of the type that can be withheld from public inspection. Free tax forms 2012 Be filed with the office where your organization files the documents in which the material to be withheld is contained. Free tax forms 2012 Where to file. Free tax forms 2012   Send your application for exempt status and Form 8718, (if required) to: Internal Revenue Service PO Box 12192 Covington, KY 41012-0192   Your application will be considered by EO Determinations, who will either issue a favorable determination letter to your organization, issue an adverse determination letter denying the exempt status claimed in the application, or refer the case to the Exempt Organizations Technical Office (EO Technical). Free tax forms 2012    Form 8940, Request for Miscellaneous Determination. Free tax forms 2012 You can request miscellaneous determinations under sections 507, 509(a), 4940, 4942, 4945, and 6033 with Form 8940. Free tax forms 2012 Nonexempt charitable trusts also file Form 8940 for an initial determination of section 509(a)(3) status or change to their type. Free tax forms 2012 See Form 8940 and instructions for more information. Free tax forms 2012 Requests other than applications. Free tax forms 2012 Requests other than applications for recognition of exemption or Form 8940 (for example, requests for rulings involving feeder organizations, application of excise taxes to activities of private foundations, taxation of unrelated business income, etc. Free tax forms 2012 ) should be sent to: Internal Revenue Service  Attention: EO Letter Rulings PO Box 27720 McPherson Station Washington, DC 20038 These requests, similar to applications for recognition of exemption previously discussed, must be accompanied by the appropriate user fee. Free tax forms 2012 The schedule for user fees, including those for requests other than applications, can be found in Revenue Procedure 2013-8, 2013-1 I. Free tax forms 2012 R. Free tax forms 2012 B. Free tax forms 2012 237. Free tax forms 2012 Referral to EO Technical. Free tax forms 2012   EO Determinations will refer to EO Technical any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. Free tax forms 2012 EO Determinations can request technical advice on any technical or procedural question that cannot be resolved on the basis of law, regulations, or a clearly applicable revenue ruling or other published precedent. Free tax forms 2012 An organization can request that an issue be referred to EO Technical for technical advice if it feels that a lack of uniformity exists as to the disposition of the issue or if an issue is so unusual or complex as to warrant consideration by EO Technical. Free tax forms 2012 If a determination letter is issued based on technical advice from EO Technical regarding qualification for exemption or foundation status, no further administrative appeal is available on the issue that was the subject of technical advice. Free tax forms 2012 Reminder. Free tax forms 2012   The law requires payment of a user fee for determination letter requests. Free tax forms 2012 Go to IRS. Free tax forms 2012 gov/Charities and select Current User Fees-Exempt Organizations to find the required payment. Free tax forms 2012 Payment must accompany each request. Free tax forms 2012 Rulings and Determination Letters Elimination of the advance public charity status. Free tax forms 2012   New regulations eliminate the advance ruling process for a section 501(c)(3) organization. Free tax forms 2012 Under the new regulations, a new section 501(c)(3) organization will be classified as a publicly supported organization and not a private foundation if it can show when it applies for tax-exempt status that it reasonably can be expected to be publicly supported. Free tax forms 2012 The new rules no longer require the organization to file Form 8734, Support Schedule for Advance Ruling Period, after completing its first 5 tax years. Free tax forms 2012 See Elimination of the Advance Ruling Process . Free tax forms 2012 An organization must describe fully the activities in which it expects to engage. Free tax forms 2012 This includes standards, procedures, or other means adopted or planned by the organization for carrying out its activities, expected sources of funds, and the nature of its contemplated expenses. Free tax forms 2012 When an organization does not supply the information previously mentioned under Application Procedures , or fails to furnish a sufficiently detailed description of its proposed activities to permit a conclusion that it will clearly be exempt, a proposed adverse determination letter or ruling may be issued. Free tax forms 2012 Adverse determination. Free tax forms 2012   A proposed adverse ruling or determination letter will be issued to an organization that has not provided sufficiently detailed information to establish that it qualifies for exemption or if the information provided establishes that it does not qualify for exemption. Free tax forms 2012 An organization can appeal a proposed adverse ruling or determination letter. Free tax forms 2012 See Appeal Procedures , later. Free tax forms 2012 Effective Date of Exemption A ruling or determination letter recognizing exemption is usually effective as of the date of formation of an organization if, during the period before the date of the ruling or determination letter, its purposes and activities were those required by the law. Free tax forms 2012 (See Application for Recognition of Exemption in chapter 3 for the special rule for organizations applying for recognition of exemption under section 501(c)(3). Free tax forms 2012 ) Upon obtaining recognition of exemption, the organization can file a claim for a refund of income taxes paid for the period for which its exempt status is recognized. Free tax forms 2012 If an organization is required to alter its activities or substantially amend its charter to qualify, the ruling or determination letter recognizing exemption will be effective as of the date specified in the letter. Free tax forms 2012 If a nonsubstantive amendment is made, such as correction of a clerical error in the enabling instrument or the addition of a dissolution clause, exemption will ordinarily be recognized as of the date of formation if the activities of the organization before the ruling or determination are consistent with the exemption requirements. Free tax forms 2012 A ruling or determination letter recognizing exemption cannot be relied on if there is a material change, inconsistent with exemption, in the character, the purpose, or the method of operation of the organization. Free tax forms 2012 Also, a ruling or determination letter cannot be relied on if it is based on any inaccurate material factual representations. Free tax forms 2012 Revocation or Modification of Exemption A ruling or determination letter recognizing exemption may be revoked or modified by: A notice to the organization to which the ruling or determination letter originally was issued, Enactment of legislation or ratification of a tax treaty, A decision of the United States Supreme Court, Issuance of temporary or final regulations, or Issuance of a revenue ruling, a revenue procedure, or other statement published in the Internal Revenue Bulletin or Cumulative Bulletin. Free tax forms 2012 When revocation takes effect. Free tax forms 2012   If the organization omitted or misstated a material fact, operated in a manner materially different from that originally represented, or, with regard to organizations to which section 503 applies, engaged in a prohibited transaction (such as diverting corpus or income from its exempt purpose), the revocation or modification may be retroactive. Free tax forms 2012 Material change in organization. Free tax forms 2012   If there is a material change, inconsistent with exemption, in the character, purpose, or method of operation of the organization, revocation or modification will ordinarily take effect as of the date of that material change. Free tax forms 2012 Relief from retroactivity. Free tax forms 2012   If a ruling or determination letter was issued in error or the IRS changed its position after issuing a letter or ruling, and if section 7805(b) relief is granted, retroactivity of the revocation or modification ordinarily will be limited to a date not earlier than that on which the original ruling or determination letter was modified or revoked. Free tax forms 2012 For more information on requesting section 7805(b) relief, see Revenue Procedure 2013-4, 2013-1 I. Free tax forms 2012 R. Free tax forms 2012 B. Free tax forms 2012 126, sec. Free tax forms 2012 13 (or later update). Free tax forms 2012 Foundations. Free tax forms 2012   The determination of the effective date is the same for the revocation or modification of foundation status or operating foundation status unless the effective date is expressly covered by statute or regulations. Free tax forms 2012 Written notice. Free tax forms 2012   If an EO area manager concludes, as a result of examining an information return or considering information from any other source, that a ruling or determination letter should be revoked or modified, the organization will be advised in writing of the proposed action and the reasons for it. Free tax forms 2012   The organization will also be advised of its right to protest the proposed action by requesting Appeals Office consideration. Free tax forms 2012 The appeal procedures are discussed next. Free tax forms 2012 Appeal Procedures If your organization applies for tax-exempt status and EO Determination decides your organization does not qualify, your organization will be advised of its rights to protest the determination by requesting Appeals Office consideration. Free tax forms 2012 This process does not apply to determinations issued by EO Technical. Free tax forms 2012 Your organization must submit a statement of its views fully explaining its reasoning. Free tax forms 2012 The statement must be submitted within 30 days from the date of the adverse determination letter and must state whether it wishes Appeals Office consideration. Free tax forms 2012 Representation. Free tax forms 2012   A principal officer or trustee can represent an organization at any level of appeal within the IRS. Free tax forms 2012 Also, an attorney, certified public accountant, or individual enrolled to practice before the IRS can represent the organization. Free tax forms 2012   If the organization's representative attends a conference without a principal officer or trustee, the representative must file a proper power of attorney or a tax information authorization before receiving or inspecting confidential information. Free tax forms 2012 Form 2848 or Form 8821, Tax Information Authorization, as appropriate (or any other properly written power of attorney or authorization), can be used for this purpose. Free tax forms 2012 These forms can be obtained from the IRS. Free tax forms 2012 For more information, see Publication 947, Practice Before the IRS and Power of Attorney. Free tax forms 2012 Appeals Office Consideration EO Determinations will consider the statement protesting and appealing (hereinafter appealing) the adverse determination and decide if the information affects its determination. Free tax forms 2012 If the appeal does not provide a basis to reconsider its adverse determination, it will forward the appeal and case file to the Appeals Office. Free tax forms 2012 For more information about the role of the Appeals Office, see Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues. Free tax forms 2012 The appeal should include the following information. Free tax forms 2012 The organization's name, address, daytime telephone number, and employer identification number. Free tax forms 2012 A statement that the organization wants to protest the determination. Free tax forms 2012 A copy of the letter showing the determination you disagree with, or the date and symbols on the determination letter. Free tax forms 2012 A statement of facts supporting the organization's position in any contested factual issue. Free tax forms 2012 A statement outlining the law or other authority the organization is relying on. Free tax forms 2012 A statement as to whether a conference at the Appeals Office is desired. Free tax forms 2012 The statement of facts in item 4 must be declared true under penalties of perjury. Free tax forms 2012 This may be done by adding to the protest the following signed declaration:   “Under penalties of perjury, I declare that I have examined the statement of facts presented in this protest and in any accompanying schedules and statements and, to the best of my knowledge and belief, it is true, correct, and complete. Free tax forms 2012 ”           Signature. Free tax forms 2012   If the organization's representative submits the appeal, a substitute declaration must be included, stating: That the representative prepared the appeal and accompanying documents, and Whether the representative knows personally that the statements of fact contained in the appeal and accompanying documents are true and correct. Free tax forms 2012 Be sure the appeal contains all of the information requested. Free tax forms 2012 Incomplete appeals will be returned for completion. Free tax forms 2012 If a conference is requested, it will be held at the Appeals Office, unless the organization requests that the meeting be held at a field office convenient to both parties. Free tax forms 2012 The Appeals Office, after considering the organization's appeal as well as information presented in any conference held, will notify the organization of its decision and issue an appropriate determination letter. Free tax forms 2012 An adverse decision can be appealed to the courts (discussed later). Free tax forms 2012 The Appeals Office must request technical advice from EO Technical on any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. Free tax forms 2012 If an organization believes that its case involves such an issue, it should ask the Appeals Office to request technical advice. Free tax forms 2012 Any determination letter issued on the basis of technical advice from EO Technical cannot be appealed to the Appeals Office for those issues that were the subject of the technical advice from EO Technical. Free tax forms 2012 EO Technical Consideration If an application is referred to EO Technical for issuance of a ruling and an adverse ruling is issued, the organization will be informed of the basis for the conclusion, its right to file a protest within 30 days, and its right to have a conference with EO Technical. Free tax forms 2012 Administrative Remedies In the case of an application under section 501(c)(3), all of the following actions, called administrative remedies, must be completed by your organization before an unfavorable ruling or determination letter from the IRS can be appealed to the courts. Free tax forms 2012 The filing of a substantially completed application Form 1023 or group exemption request under section 501(c)(3) (described earlier in this chapter) or the filing of a request for a determination of foundation status (see Private Foundations and Public Charities in chapter 3). Free tax forms 2012 In the case of a late-filed application, requesting relief under Regulations section 301. Free tax forms 2012 9100 regarding applications for extensions of time for making an election or application for relief from tax (see Application for Recognition of Exemption in chapter 3). Free tax forms 2012 The timely submission of all additional information requested to perfect an exemption application or request for determination of private foundation status. Free tax forms 2012 Exhaustion of all administrative appeals available within the IRS, including protest of an adverse ruling issued by EO Technical in the case of an exemption application. Free tax forms 2012 The actions just described will not be considered completed until the IRS has had a reasonable time to act upon the appeal or protest, as the case may be. Free tax forms 2012 An organization will not be considered to have exhausted its administrative remedies before the earlier of: The completion of the steps just listed and the sending by certified or registered mail of a notice of final determination, or The expiration of the 270-day period in which the IRS has not issued a notice of final determination and the organization has taken, in a timely manner, all reasonable steps to secure a ruling or determination. Free tax forms 2012 270-day period. Free tax forms 2012   The 270-day period will be considered by the IRS to begin on the date a substantially completed Form 1023 or group exemption request is sent to the IRS. Free tax forms 2012 See Application Procedures , earlier, for information needed to complete Form 1023. Free tax forms 2012   If the application does not contain all of the required items, it will not be further processed and may be returned to the applicant for completion. Free tax forms 2012 The 270-day period, in this event, will not be considered as starting until the date the application is remailed to the IRS with the requested information, or, if a postmark is not evident, on the date the IRS receives a substantially completed application. Free tax forms 2012 Appeal to Courts If the IRS issues an unfavorable determination letter or ruling to your organization and you have exhausted all the administrative remedies just discussed, your organization can seek judicial remedies. Free tax forms 2012 For example, if your organization has paid the tax resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a refund in a U. Free tax forms 2012 S. Free tax forms 2012 District Court or the U. Free tax forms 2012 S. Free tax forms 2012 Court of Federal Claims. Free tax forms 2012 Or, if your organization elected not to pay the tax deficiency resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a redetermination of the tax deficiencies in the United States Tax Court. Free tax forms 2012 For more information on these types of suits, get Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund. Free tax forms 2012 In certain situations, your organization can file suit for a declaratory judgment in the U. Free tax forms 2012 S. Free tax forms 2012 District Court for the District of Columbia, the U. Free tax forms 2012 S. Free tax forms 2012 Court of Federal Claims, or the U. Free tax forms 2012 S. Free tax forms 2012 Tax Court. Free tax forms 2012 This remedy is available if your organization received an adverse notice of final determination, or if the IRS failed to make a timely determination on your initial or continuing qualification or classification as an exempt organization. Free tax forms 2012 However, your exempt status claim must be as: An organization qualifying under section 501(c)(3), An organization to which a deduction for a contribution is allowed under section 170(c)(2), An organization that is a private foundation under section 509(a), A private operating foundation under section 4942(j)(3), or A cooperative organization that is exempt from tax under section 521. Free tax forms 2012 Adverse notice of final determination. Free tax forms 2012   The adverse notice of final determination referred to above is a ruling or determination letter sent by certified or registered mail holding that your organization: Is not described in section 501(c)(3) or section 170(c)(2), Is a private foundation as defined in section 4942(j)(3), or Is a public charity described in a part of section 509(a) or section 170(b)(1)(A) other than the part under which your organization requested classification. Free tax forms 2012 Favorable court rulings - IRS procedure. Free tax forms 2012   If a suit results in a final determination that your organization is exempt from tax, the IRS will issue a favorable ruling or determination letter, provided your organization has filed an application for exemption and submitted a statement that the underlying facts and applicable law are the same as in the period considered by the court. Free tax forms 2012 Group Exemption Letter A group exemption letter is a ruling or determination letter issued to a central organization recognizing on a group basis the exemption under section 501(c) of subordinate organizations on whose behalf the central organization has applied for recognition of exemption. Free tax forms 2012 A central organization is an organization that has one or more subordinates under its general supervision or control. Free tax forms 2012 A subordinate organization is a chapter, local, post, or unit of a central organization. Free tax forms 2012 A central organization may be a subordinate itself, such as a state organization that has subordinate units and is itself affiliated with a national (central) organization. Free tax forms 2012 A subordinate organization may or may not be incorporated, but it must have an organizing document. Free tax forms 2012 A subordinate that is organized and operated in a foreign country cannot be included in a group exemption letter. Free tax forms 2012 A subordinate described in section 501(c)(3) cannot be included in a group exemption letter if it is a private foundation described in section 509(a). Free tax forms 2012 If your organization is a subordinate controlled by a central organization (for example, a church, a veterans' organization, or a fraternal organization), you should check with the central organization to see if it has been issued a group exemption letter that covers your organization. Free tax forms 2012 If it has, you do not have to file a separate application unless your organization no longer wants to be included in the group exemption letter. Free tax forms 2012 If the group exemption letter does not cover your organization, ask your central organization about being included in the next annual group ruling update that it submits to the IRS. Free tax forms 2012 Central Organization Application Procedure If your organization is a central organization with affiliated subordinates under its control, it can apply for a group exemption letter for its subordinates, provided it has obtained recognition of its own exemption before or concurrently with the group exemption. Free tax forms 2012 You should make the application for such subordinates by letter instead of submitting either Form 1023 or 1024. Free tax forms 2012 This procedure relieves each of the subordinates covered by a group exemption letter from filing its own application. Free tax forms 2012 A central organization obtains its own recognition of exemption by sending its application to the IRS address shown on Form 8718 or Form 1023. Free tax forms 2012 If the central organization has previously obtained recognition of its own exemption, it must indicate its employer identification number and the date of the letter recognizing its exemption. Free tax forms 2012 It need not forward documents already submitted. Free tax forms 2012 However, if it has not already done so, the central organization must submit a copy of any amendment to its governing instruments or internal regulations as well as any information about changes in its character, purposes, or method of operation. Free tax forms 2012 Employer identification number. Free tax forms 2012   The central organization must have an EIN before it submits a completed exemption or group exemption application. Free tax forms 2012 Each subordinate must have its own EIN, even if it has no employees. Free tax forms 2012 When submitting its group exemption application, the central organization must provide an EIN for each subordinate organization. Free tax forms 2012 Information required for subordinate organizations. Free tax forms 2012   In addition to the information required to obtain recognition of its own exemption, the central organization must submit information for those subordinates to be included in the group exemption letter. Free tax forms 2012 The information should be forwarded in a letter signed by a principal officer of the central organization setting forth or including as attachments the following. Free tax forms 2012 Information verifying that the subordinates: Are affiliated with the central organization at the close of its annual accounting period; Are subject to its general supervision or control; Are all eligible to qualify for exemption under the same paragraph of section 501(c), though not necessarily the paragraph under which the central organization itself is exempt; Are not private foundations if the application for a group exemption letter involves section 501(c)(3); Are all on the same accounting period as the central organization if they are to be included in group returns; and Are organizations that have been formed within the 15-month period preceding the date of submission of the group exemption application if they are claiming section 501(c)(3) status and are subject to the requirements of section 508(a) and wish to be recognized as exempt from their dates of creation (a group exemption letter may be issued covering subordinates, one or more of which have not been organized within the 15-month period preceding the date of submission, if all subordinates are willing to be recognized as exempt only from the date of application). Free tax forms 2012 A detailed description of the purposes and activities of the subordinates, including the sources of receipts and the nature of expenditures. Free tax forms 2012 A sample copy of a uniform governing instrument (such as a charter or articles of association) adopted by the subordinates, or, in its absence, copies of representative instruments. Free tax forms 2012 An affirmation to the effect that, to the best of the officer's knowledge, the purposes and activities of the subordinates are as stated in (2) and (3), above. Free tax forms 2012 A statement that each of the subordinates has provided a written authorization to the central organization, signed by an authorized officer of the subordinate, agreeing to be included in the group exemption (see also New 501(c)(3) organizations that want to be included , later in this section). Free tax forms 2012 A list of subordinates to be included in the group exemption letter to which the IRS has issued an outstanding ruling or determination letter relating to exemption. Free tax forms 2012 If the application for a group exemption letter involves section 501(c)(3) and is subject to the provisions of the Code requiring that it give timely notice that it is not a private foundation (see Private Foundations in chapter 3), an affirmation to the effect that, to the best of the officer's knowledge and belief, no subordinate to be included in the group exemption letter is a private foundation as defined in section 509(a). Free tax forms 2012 For each subordinate that is a school claiming exemption under section 501(c)(3), the information required by Revenue Ruling 71-447, 1971-2 C. Free tax forms 2012 B. Free tax forms 2012 230 and Revenue Procedure 75-50, 1975-2 C. Free tax forms 2012 B. Free tax forms 2012 587 (these requirements are fully described in chapter 3, under Private Schools ; see also Schedule B, Form 1023). Free tax forms 2012 For any school affiliated with a church, the information to show that the provisions of Revenue Ruling 75-231, 1975-1 C. Free tax forms 2012 B. Free tax forms 2012 158, have been met. Free tax forms 2012 A list of the names, mailing addresses, actual addresses if different, and EINs of subordinates to be included in the group exemption letter. Free tax forms 2012 A current directory of subordinates may be furnished instead of the list if it includes the required information and if the subordinates not to be included in the group exemption letter are identified. Free tax forms 2012 New 501(c)(3) organizations that want to be included. Free tax forms 2012   A new organization, described in section 501(c)(3), that wants to be included in a group exemption letter must submit its authorization (as explained in item number 5, earlier, under Information required for subordinate organizations ) to the central organization before the end of the 15th month after it was formed in order to satisfy the requirement of section 508(a). Free tax forms 2012 The central organization must also include this subordinate in its next annual submission of information, as discussed later, under Information Required Annually . Free tax forms 2012 Keeping the Group Exemption Letter in Force Continued effectiveness of a group exemption letter is based on the following conditions. Free tax forms 2012 The continued existence of the central organization. Free tax forms 2012 The continued qualification of the central organization for exemption under section 501(c). Free tax forms 2012 The submission by the central organization of the information regarding its subordinate organizations that is required annually (described under Information Required Annually). Free tax forms 2012 The annual filing of an information return (Form 990, for example) by the central organization if required. Free tax forms 2012 The continued effectiveness of a group exemption letter as to a particular subordinate is based on these four conditions, as well as on the continued conformity by the subordinate to the requirements for inclusion in a group exemption letter, the authorization for inclusion, and the annual filing of any required information return for the subordinate. Free tax forms 2012 Information Required Annually To maintain a group exemption letter, the central organization must submit annually, at least 90 days before the close of its annual accounting period, all of the following information. Free tax forms 2012 Information about all changes in the purposes, character, or method of operation of the subordinates included in the group exemption letter. Free tax forms 2012 A separate list (that includes the names, mailing addresses, actual addresses if different, and EINs of the affected subordinates) for each of the three following categories. Free tax forms 2012 Subordinates that have changed their names or addresses during the year. Free tax forms 2012 Subordinates no longer to be included in the group exemption letter because they no longer exist or have disaffiliated from or withdrawn their authorization to the central organization. Free tax forms 2012 Subordinates to be added to the group exemption letter because they are newly organized or affiliated or because they have recently authorized the central organization to include them. Free tax forms 2012 An annotated directory of subordinates will not be accepted for this purpose. Free tax forms 2012 If there were none of the above changes, the central organization must submit a statement to that effect. Free tax forms 2012 The same information about new subordinates that was required in the initial application for group exemption. Free tax forms 2012 (This information is listed in items 1 through 10, under Information required for subordinate organizations. Free tax forms 2012 , earlier. Free tax forms 2012 ) If a new subordinate does not differ in any material respects from the subordinates included in the application for group exemption, however, a statement to this effect may be submitted in lieu of detailed information. Free tax forms 2012 The organization should send this information to:   Ogden Service Center  Mail Stop 6271 Ogden, UT 84404-4749 Submitting the required information annually does not relieve the central organization or any of its subordinates of the duty to submit any other information that may be required by an EO area manager to determine whether the conditions for continued exemption are being met. Free tax forms 2012 Events Causing Loss of Group Exemption A group exemption letter no longer has effect, for either a particular subordinate or the group as a whole, when: The central organization notifies the IRS that it is going out of existence, The central organization notifies the IRS, by its annual submission or otherwise, that any of its subordinates will no longer fulfill the conditions for continued effectiveness, explained earlier, or The IRS notifies the central organization or the affected subordinate that the group exemption letter will no longer have effect for some or all of the group because the conditions for continued effectiveness of a group exemption letter have not been fulfilled. Free tax forms 2012 When notice is given under any of these three conditions, the IRS will no longer recognize the exempt status of the affected subordinates until they file separate applications on their own behalf or the central organization files complete supporting information for their reinclusion in the group exemption at the time of its annual submission. Free tax forms 2012 However, when the notice is given by the IRS and the withdrawal of recognition is based on the failure of the organization to comply with the requirements for recognition of tax-exempt status under the particular subsection of section 501(c), the revocation will ordinarily take effect as of the date of that failure. Free tax forms 2012 The notice, however, will be given only after the appeal procedures described earlier in this chapter are completed. Free tax forms 2012 Prev  Up  Next   Home   More Online Publications