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How To File State Taxes Online For Free

How to file state taxes online for free 4. How to file state taxes online for free   Reporting Gains and Losses Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Information Returns Schedule D and Form 8949Long and Short Term Net Gain or Loss Treatment of Capital Losses Capital Gains Tax Rates Form 4797Mark-to-market election. How to file state taxes online for free Introduction This chapter explains how to report capital gains and losses and ordinary gains and losses from sales, exchanges, and other dispositions of property. How to file state taxes online for free Although this discussion refers to Schedule D (Form 1040) and Form 8949, many of the rules discussed here also apply to taxpayers other than individuals. How to file state taxes online for free However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. How to file state taxes online for free Topics - This chapter discusses: Information returns Schedule D (Form 1040) Form 4797 Form 8949 Useful Items - You may want to see: Publication 550 Investment Income and Expenses 537 Installment Sales Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-S Proceeds From Real Estate Transactions 4684 Casualties and Thefts 4797 Sales of Business Property 6252 Installment Sale Income 6781 Gains and Losses from Section 1256 Contracts and Straddles 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. How to file state taxes online for free Information Returns If you sell or exchange certain assets, you should receive an information return showing the proceeds of the sale. How to file state taxes online for free This information is also provided to the IRS. How to file state taxes online for free Form 1099-B. How to file state taxes online for free   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a substitute statement from the broker. How to file state taxes online for free Use the Form 1099-B or a substitute statement to complete Form 8949 and/or Schedule D. How to file state taxes online for free Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. How to file state taxes online for free on Form 8949 and/or Schedule D, as applicable. How to file state taxes online for free For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. How to file state taxes online for free For information on reporting the gains and losses, see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). How to file state taxes online for free Form 1099-S. How to file state taxes online for free   An information return must be provided on certain real estate transactions. How to file state taxes online for free Generally, the person responsible for closing the transaction (the “real estate reporting person”) must report on Form 1099-S sales or exchanges of the following types of property. How to file state taxes online for free Land (improved or unimproved), including air space. How to file state taxes online for free An inherently permanent structure, including any residential, commercial, or industrial building. How to file state taxes online for free A condominium unit and its related fixtures and common elements (including land). How to file state taxes online for free Stock in a cooperative housing corporation. How to file state taxes online for free If you sold or exchanged any of the above types of property, the “real estate reporting person” must give you a copy of Form 1099-S or a statement containing the same information as the Form 1099-S. How to file state taxes online for free The “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. How to file state taxes online for free   For more information see chapter 4 in Publication 550. How to file state taxes online for free Also, see the Instructions for Form 8949. How to file state taxes online for free Schedule D and Form 8949 Form 8949. How to file state taxes online for free   Individuals, corporations, and partnerships, use Form 8949 to report the following. How to file state taxes online for free    Sales or exchanges of capital assets, including stocks, bonds, etc. How to file state taxes online for free , and real estate (if not reported on another form or schedule such as Form 4684, 4797, 6252, 6781, or 8824). How to file state taxes online for free Include these transactions even if you did not receive a Form 1099-B or 1099-S. How to file state taxes online for free Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. How to file state taxes online for free Nonbusiness bad debts. How to file state taxes online for free   Individuals, If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions. How to file state taxes online for free You and your spouse may list your transactions on separate forms or you may combine them. How to file state taxes online for free However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse. How to file state taxes online for free    Corporations and electing large partnerships also use Form 8949 to report their share of gain or loss from a partnership, S Corporation, estate or trust. How to file state taxes online for free   Business entities meeting certain criteria, may have an exception to some of the normal requirements for completing Form 8949. How to file state taxes online for free See the Instructions for Form 8949. How to file state taxes online for free Schedule D. How to file state taxes online for free    Use Schedule D (Form 1040) to figure the overall gain or loss from transactions reported on Form 8949, and to report certain transactions you do not have to report on Form 8949. How to file state taxes online for free Before completing Schedule D, you may have to complete other forms as shown below. How to file state taxes online for free    Complete all applicable lines of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of your applicable Schedule D. How to file state taxes online for free Enter on Schedule D the combined totals from all your Forms 8949. How to file state taxes online for free For a sale, exchange, or involuntary conversion of business property, complete Form 4797 (discussed later). How to file state taxes online for free For a like-kind exchange, complete Form 8824. How to file state taxes online for free See Reporting the exchange under Like-Kind Exchanges in chapter 1. How to file state taxes online for free For an installment sale, complete Form 6252. How to file state taxes online for free See Publication 537. How to file state taxes online for free For an involuntary conversion due to casualty or theft, complete Form 4684. How to file state taxes online for free See Publication 547, Casualties, Disasters, and Thefts. How to file state taxes online for free For a disposition of an interest in, or property used in, an activity to which the at-risk rules apply, complete Form 6198, At-Risk Limitations. How to file state taxes online for free See Publication 925, Passive Activity and At-Risk Rules. How to file state taxes online for free For a disposition of an interest in, or property used in, a passive activity, complete Form 8582, Passive Activity Loss Limitations. How to file state taxes online for free See Publication 925. How to file state taxes online for free For gains and losses from section 1256 contracts and straddles, complete Form 6781. How to file state taxes online for free See Publication 550. How to file state taxes online for free Personal-use property. How to file state taxes online for free   Report gain on the sale or exchange of property held for personal use (such as your home) on Form 8949 and Schedule D (Form 1040), as applicable. How to file state taxes online for free Loss from the sale or exchange of property held for personal use is not deductible. How to file state taxes online for free But if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, report the transaction on Form 8949 and Schedule D, even though the loss is not deductible. How to file state taxes online for free See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for information on how to report the transaction. How to file state taxes online for free Long and Short Term Where you report a capital gain or loss depends on how long you own the asset before you sell or exchange it. How to file state taxes online for free The time you own an asset before disposing of it is the holding period. How to file state taxes online for free If you received a Form 1099-B, (or substitute statement) box 1c may help you determine whether the gain or loss is short-term or long-term. How to file state taxes online for free If you hold a capital asset 1 year or less, the gain or loss from its disposition is short term. How to file state taxes online for free Report it in Part I of Form 8949 and/or Schedule D, as applicable. How to file state taxes online for free If you hold a capital asset longer than 1 year, the gain or loss from its disposition is long term. How to file state taxes online for free Report it in Part II of Form 8949 and/or Schedule D, as applicable. How to file state taxes online for free   Table 4-1. How to file state taxes online for free Do I Have a Short-Term or Long-Term Gain or Loss? IF you hold the property. How to file state taxes online for free . How to file state taxes online for free . How to file state taxes online for free  THEN you have a. How to file state taxes online for free . How to file state taxes online for free . How to file state taxes online for free 1 year or less, Short-term capital gain or  loss. How to file state taxes online for free More than 1 year, Long-term capital gain or  loss. How to file state taxes online for free These distinctions are essential to correctly arrive at your net capital gain or loss. How to file state taxes online for free Capital losses are allowed in full against capital gains plus up to $3,000 of ordinary income. How to file state taxes online for free See Capital Gains Tax Rates, later. How to file state taxes online for free Holding period. How to file state taxes online for free   To figure if you held property longer than 1 year, start counting on the day following the day you acquired the property. How to file state taxes online for free The day you disposed of the property is part of your holding period. How to file state taxes online for free Example. How to file state taxes online for free If you bought an asset on June 19, 2012, you should start counting on June 20, 2012. How to file state taxes online for free If you sold the asset on June 19, 2013, your holding period is not longer than 1 year, but if you sold it on June 20, 2013, your holding period is longer than 1 year. How to file state taxes online for free Patent property. How to file state taxes online for free   If you dispose of patent property, you generally are considered to have held the property longer than 1 year, no matter how long you actually held it. How to file state taxes online for free For more information, see Patents in chapter 2. How to file state taxes online for free Inherited property. How to file state taxes online for free   If you inherit property, you are considered to have held the property longer than 1 year, regardless of how long you actually held it. How to file state taxes online for free Installment sale. How to file state taxes online for free   The gain from an installment sale of an asset qualifying for long-term capital gain treatment in the year of sale continues to be long term in later tax years. How to file state taxes online for free If it is short term in the year of sale, it continues to be short term when payments are received in later tax years. How to file state taxes online for free    The date the installment payment is received determines the capital gains rate that should be applied not the date the asset was sold under an installment contract. How to file state taxes online for free Nontaxable exchange. How to file state taxes online for free   If you acquire an asset in exchange for another asset and your basis for the new asset is figured, in whole or in part, by using your basis in the old property, the holding period of the new property includes the holding period of the old property. How to file state taxes online for free That is, it begins on the same day as your holding period for the old property. How to file state taxes online for free Example. How to file state taxes online for free You bought machinery on December 4, 2012. How to file state taxes online for free On June 4, 2013, you traded this machinery for other machinery in a nontaxable exchange. How to file state taxes online for free On December 5, 2013, you sold the machinery you got in the exchange. How to file state taxes online for free Your holding period for this machinery began on December 5, 2012. How to file state taxes online for free Therefore, you held it longer than 1 year. How to file state taxes online for free Corporate liquidation. How to file state taxes online for free   The holding period for property you receive in a liquidation generally starts on the day after you receive it if gain or loss is recognized. How to file state taxes online for free Profit-sharing plan. How to file state taxes online for free   The holding period of common stock withdrawn from a qualified contributory profit-sharing plan begins on the day following the day the plan trustee delivered the stock to the transfer agent with instructions to reissue the stock in your name. How to file state taxes online for free Gift. How to file state taxes online for free   If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period. How to file state taxes online for free For more information on basis, see Publication 551, Basis of Assets. How to file state taxes online for free Real property. How to file state taxes online for free   To figure how long you held real property, start counting on the day after you received title to it or, if earlier, the day after you took possession of it and assumed the burdens and privileges of ownership. How to file state taxes online for free   However, taking possession of real property under an option agreement is not enough to start the holding period. How to file state taxes online for free The holding period cannot start until there is an actual contract of sale. How to file state taxes online for free The holding period of the seller cannot end before that time. How to file state taxes online for free Repossession. How to file state taxes online for free   If you sell real property but keep a security interest in it and then later repossess it, your holding period for a later sale includes the period you held the property before the original sale, as well as the period after the repossession. How to file state taxes online for free Your holding period does not include the time between the original sale and the repossession. How to file state taxes online for free That is, it does not include the period during which the first buyer held the property. How to file state taxes online for free Nonbusiness bad debts. How to file state taxes online for free   Nonbusiness bad debts are short-term capital losses. How to file state taxes online for free For information on nonbusiness bad debts, see chapter 4 of Publication 550. How to file state taxes online for free    Net Gain or Loss The totals for short-term capital gains and losses and the totals for long-term capital gains and losses must be figured separately. How to file state taxes online for free Net short-term capital gain or loss. How to file state taxes online for free   Combine your short-term capital gains and losses, including your share of short-term capital gains or losses from partnerships, S corporations, and fiduciaries and any short-term capital loss carryover. How to file state taxes online for free Do this by adding all your short-term capital gains. How to file state taxes online for free Then add all your short-term capital losses. How to file state taxes online for free Subtract the lesser total from the other. How to file state taxes online for free The result is your net short-term capital gain or loss. How to file state taxes online for free Net long-term capital gain or loss. How to file state taxes online for free   Follow the same steps to combine your long-term capital gains and losses. How to file state taxes online for free Include the following items. How to file state taxes online for free Net section 1231 gain from Part I, Form 4797, after any adjustment for nonrecaptured section 1231 losses from prior tax years. How to file state taxes online for free Capital gain distributions from regulated investment companies (mutual funds) and real estate investment trusts. How to file state taxes online for free Your share of long-term capital gains or losses from partnerships, S corporations, and fiduciaries. How to file state taxes online for free Any long-term capital loss carryover. How to file state taxes online for free The result from combining these items with other long-term capital gains and losses is your net long-term capital gain or loss. How to file state taxes online for free Net gain. How to file state taxes online for free   If the total of your capital gains is more than the total of your capital losses, the difference is taxable. How to file state taxes online for free Different tax rates may apply to the part that is a net capital gain. How to file state taxes online for free See Capital Gains Tax Rates, later. How to file state taxes online for free Net loss. How to file state taxes online for free   If the total of your capital losses is more than the total of your capital gains, the difference is deductible. How to file state taxes online for free But there are limits on how much loss you can deduct and when you can deduct it. How to file state taxes online for free See Treatment of Capital Losses, next. How to file state taxes online for free    Treatment of Capital Losses If your capital losses are more than your capital gains, you can deduct the difference as a capital loss deduction even if you do not have ordinary income to offset it. How to file state taxes online for free The yearly limit on the amount of the capital loss you can deduct is $3,000 ($1,500 if you are married and file a separate return). How to file state taxes online for free Table 4-2. How to file state taxes online for free Holding Period for Different Types of Acquisitions Type of acquisition: When your holding period starts: Stocks and bonds bought on a securities market Day after trading date you bought security. How to file state taxes online for free Ends on trading date you sold security. How to file state taxes online for free U. How to file state taxes online for free S. How to file state taxes online for free Treasury notes and bonds If bought at auction, day after notification of bid acceptance. How to file state taxes online for free If bought through subscription, day after subscription was submitted. How to file state taxes online for free Nontaxable exchanges Day after date you acquired old property. How to file state taxes online for free Gift If your basis is giver's adjusted basis, same day as giver's holding period began. How to file state taxes online for free If your basis is FMV, day after date of gift. How to file state taxes online for free Real property bought Generally, day after date you received title to the property. How to file state taxes online for free Real property repossessed Day after date you originally received title to the property, but does not include time between the original sale and date of repossession. How to file state taxes online for free Capital loss carryover. How to file state taxes online for free   Generally, you have a capital loss carryover if either of the following situations applies to you. How to file state taxes online for free Your net loss is more than the yearly limit. How to file state taxes online for free Your taxable income without your deduction for exemptions is less than zero. How to file state taxes online for free If either of these situations applies to you for 2013, see Capital Losses under Reporting Capital Gains and Losses in chapter 4 of Publication 550 to figure the amount you can carryover to 2014. How to file state taxes online for free Example. How to file state taxes online for free Bob and Gloria Sampson sold property in 2013. How to file state taxes online for free The sale resulted in a capital loss of $7,000. How to file state taxes online for free The Sampsons had no other capital transactions. How to file state taxes online for free On their joint 2013 return, the Sampsons deduct $3,000, the yearly limit. How to file state taxes online for free They had taxable income of $2,000. How to file state taxes online for free The unused part of the loss, $4,000 ($7,000 − $3,000), is carried over to 2014. How to file state taxes online for free If the Sampsons' capital loss had been $2,000, it would not have been more than the yearly limit. How to file state taxes online for free Their capital loss deduction would have been $2,000. How to file state taxes online for free They would have no carryover to 2014. How to file state taxes online for free Short-term and long-term losses. How to file state taxes online for free   When you carry over a loss, it retains its original character as either long term or short term. How to file state taxes online for free A short-term loss you carry over to the next tax year is added to short-term losses occurring in that year. How to file state taxes online for free A long-term loss you carry over to the next tax year is added to long-term losses occurring in that year. How to file state taxes online for free A long-term capital loss you carry over to the next year reduces that year's long-term gains before its short-term gains. How to file state taxes online for free   If you have both short-term and long-term losses, your short-term losses are used first against your allowable capital loss deduction. How to file state taxes online for free If, after using your short-term losses, you have not reached the limit on the capital loss deduction, use your long-term losses until you reach the limit. How to file state taxes online for free To figure your capital loss carryover from 2013 to 2014 use the Capital Loss Carryover Worksheet in the 2013 Instructions for Schedule D (Form 1040). How to file state taxes online for free Joint and separate returns. How to file state taxes online for free   On a joint return, the capital gains and losses of spouses are figured as the gains and losses of an individual. How to file state taxes online for free If you are married and filing a separate return, your yearly capital loss deduction is limited to $1,500. How to file state taxes online for free Neither you nor your spouse can deduct any part of the other's loss. How to file state taxes online for free   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. How to file state taxes online for free However, if you and your spouse once filed jointly and are now filing separately, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. How to file state taxes online for free Death of taxpayer. How to file state taxes online for free   Capital losses cannot be carried over after a taxpayer's death. How to file state taxes online for free They are deductible only on the final income tax return filed on the decedent's behalf. How to file state taxes online for free The yearly limit discussed earlier still applies in this situation. How to file state taxes online for free Even if the loss is greater than the limit, the decedent's estate cannot deduct the difference or carry it over to following years. How to file state taxes online for free Corporations. How to file state taxes online for free   A corporation can deduct capital losses only up to the amount of its capital gains. How to file state taxes online for free In other words, if a corporation has a net capital loss, it cannot be deducted in the current tax year. How to file state taxes online for free It must be carried to other tax years and deducted from capital gains occurring in those years. How to file state taxes online for free For more information, see Publication 542. How to file state taxes online for free Capital Gains Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. How to file state taxes online for free These lower rates are called the maximum capital gains rates. How to file state taxes online for free The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. How to file state taxes online for free For 2013, the maximum tax rates for individuals are 0%, 15%, 20%, 25%, and 28%. How to file state taxes online for free Also, individuals, use the Qualified Dividends and Capital Gain Worksheet in the Instructions for Form 1040, or the Schedule D Tax Computation Worksheet in the Instructions for Schedule D (Form 1040) (whichever applies) to figure your tax if you have qualified dividends or net capital gain. How to file state taxes online for free For more information, see chapter 4 of Publication 550. How to file state taxes online for free Also see the Instructions for Schedule D (Form 1040). How to file state taxes online for free Unrecaptured section 1250 gain. How to file state taxes online for free   Generally, this is the part of any long-term capital gain on section 1250 property (real property) that is due to depreciation. How to file state taxes online for free Unrecaptured section 1250 gain cannot be more than the net section 1231 gain or include any gain otherwise treated as ordinary income. How to file state taxes online for free Use the worksheet in the Schedule D instructions to figure your unrecaptured section 1250 gain. How to file state taxes online for free For more information about section 1250 property and net section 1231 gain, see chapter 3. How to file state taxes online for free Form 4797 Use Form 4797 to report: The sale or exchange of: Property used in your trade or business; Depreciable and amortizable property; Oil, gas, geothermal, or other mineral properties; and Section 126 property. How to file state taxes online for free The involuntary conversion (from other than casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. How to file state taxes online for free The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business). How to file state taxes online for free The disposition of capital assets not reported on Schedule D. How to file state taxes online for free The gain or loss (including any related recapture) for partners and S corporation shareholders from certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations. How to file state taxes online for free The computation of recapture amounts under sections 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less. How to file state taxes online for free Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f). How to file state taxes online for free You can use Form 4797 with Form 1040, 1065, 1120, or 1120S. How to file state taxes online for free Section 1231 gains and losses. How to file state taxes online for free   Show any section 1231 gains and losses in Part I. How to file state taxes online for free Carry a net gain to Schedule D (Form 1040) as a long-term capital gain. How to file state taxes online for free Carry a net loss to Part II of Form 4797 as an ordinary loss. How to file state taxes online for free   If you had any nonrecaptured net section 1231 losses from the preceding 5 tax years, reduce your net gain by those losses and report the amount of the reduction as an ordinary gain in Part II. How to file state taxes online for free Report any remaining gain on Schedule D (Form 1040). How to file state taxes online for free See Section 1231 Gains and Losses in chapter 3. How to file state taxes online for free Ordinary gains and losses. How to file state taxes online for free   Show any ordinary gains and losses in Part II. How to file state taxes online for free This includes a net loss or a recapture of losses from prior years figured in Part I of Form 4797. How to file state taxes online for free It also includes ordinary gain figured in Part III. How to file state taxes online for free Mark-to-market election. How to file state taxes online for free   If you made a mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D (Form 1040). How to file state taxes online for free See the Instructions for Form 4797. How to file state taxes online for free Also see Special Rules for Traders in Securities, in chapter 4 of Publication 550. How to file state taxes online for free Ordinary income from depreciation. How to file state taxes online for free   Figure the ordinary income from depreciation on personal property and additional depreciation on real property (as discussed in chapter 3) in Part III. How to file state taxes online for free Carry the ordinary income to Part II of Form 4797 as an ordinary gain. How to file state taxes online for free Carry any remaining gain to Part I as section 1231 gain, unless it is from a casualty or theft. How to file state taxes online for free Carry any remaining gain from a casualty or theft to Form 4684. How to file state taxes online for free Prev  Up  Next   Home   More Online Publications
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Frequently Asked Questions: Do I Need a PTIN?

a. General Guidance

b. PTIN Scenarios

c. Supervised, Non-Signing, and Non-1040 Preparers

d. SSN Requirements for Obtaining a PTIN


a. General Guidance


1. Who needs a Preparer Tax Identification Number (PTIN)? (revised 2/22/12)

A PTIN must be obtained by all enrolled agents, as well as all tax return preparers who are compensated for preparing, or assisting in the preparation of, all or substantially all of any U.S. federal tax return, claim for refund, or other tax form submitted to the IRS except the following:

Form SS-4, Application for Employer Identification Number;
Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding;
Form SS-16, Certificate of Election of Coverage under FICA;
Form W-2 series of returns;
Form W-7, Application for IRS Individual Taxpayer Identification Number;
Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding;
Form 870, Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Overassessment;
Form 872, Consent to Extend the Time to Assess Tax;
Form 906, Closing Agreement On Final Determination Covering Specific Matters;
Form 1098 series;
Form 1099 series;
Form 2848, Power of Attorney and Declaration of Representative;
Form 3115, Application for Change in Accounting Method;
Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits;
Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners;
Form 4419, Application for Filing Information Returns Electronically;
Form 5300, Application for Determination for Employee Benefit Plan;
Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans;
Form 5310, Application for Determination for Terminating Plan;
Form 5500 series;
Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips;
Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests;
Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests;
Form 8508, Request for Waiver From Filing Information Returns Electronically;
Form 8717, User Fee for Employee Plan Determination, Opinion, and Advisory Letter Request;
Form 8809, Application for Extension of Time to File Information Return;
Form 8821, Tax Information Authorization;
Form 8942, Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program

Refer to the scenarios for additional guidance.

2. Are individuals who are active attorneys and certified public accountants required to obtain a PTIN if they do not prepare all or substantially all of any tax return? (revised 2/22/12)

Attorneys and certified public accountants do not need to obtain a PTIN unless they prepare for compensation all or substantially all of a federal tax return or claim for refund.

3. Are enrolled retirement plan agents required to obtain a PTIN? (posted 11/4/11)

Enrolled Retirement Plan Agents are only required to obtain a PTIN if they prepare or assist in the preparation of all or substantially all of any tax return or claim for refund that is not on the list of forms exempt from the PTIN requirement. ERPAs that prepare only Form 5300 or 5500 series returns are not required to obtain a PTIN. See Notice 2011-91 for more information.

4. Can multiple individuals or one office share one PTIN? (revised 6/9/11)

No, every individual who, for compensation, prepares or assists in the preparation of a tax return or claim for refund must have his or her own PTIN and each tax return preparer may only obtain one PTIN.

5. If I don't have a PTIN, can I still prepare tax returns for compensation? (revised 10/10/13)

No. You must have a PTIN to prepare tax returns for compensation. 

6. Is there an age requirement for obtaining a PTIN? (posted 9/30/10)

Yes, applicants must be at least 18 years of age.

7. What penalties can be imposed against tax return preparers who don't have a current PTIN? (revised 2/22/12)

Failure to have a current PTIN could result in the imposition of Internal Revenue Code section 6695 penalties, injunction, and/or disciplinary action by the IRS Office of Professional Responsibility.

8. What is the difference between a PTIN and an EFIN? Does a preparer need both? (revised 2/22/12)

A Preparer Tax Identification Number (PTIN) is a number issued by the IRS to paid tax return preparers. It is used as the tax return preparer’s identification number and, when applicable, must be placed in the Paid Preparer section of a tax return that the tax return preparer prepared for compensation. There is an initial fee of $64.25 and an annual renewal fee of $63.00.

An Electronic Filing Identification Number (EFIN) is a number issued by the IRS to individuals or firms that have been approved as authorized IRS e-file providers.  It is included with all electronic return data transmitted to the IRS.  There is no fee for an EFIN.

Preparer Tax Identification Numbers are issued to individuals.  Electronic Filing Identification Numbers are issued to individuals or firms.  Most preparers need both.

9. If an employee of a business prepares the business’ tax returns as part of their job responsibilities, do they need to obtain a PTIN? (revised 9/28/10)

No. An employee who prepares his employer’s federal tax returns is not required to sign as a paid preparer. Accordingly, unless the employee prepares other federal tax returns for compensation, he or she is not required to register and obtain a PTIN.

10. Are e-file transmitters or intermediate service providers that do not prepare returns subject to the PTIN requirements? (revised 9/28/10)

No. E-file providers that assist in the formatting and transmission of tax returns electronically, but do not prepare all or substantially all of a federal tax return or claim for refund for compensation, are not required to obtain a PTIN.

11. Will the IRS share my PTIN application information with other people? (revised 4/19/12)

The law allows vendors and others to obtain the PTIN holder listing. PTIN holders are not allowed to opt out of the disclosure of their contact information because Freedom of Information Act (FOIA) laws make the information public. If you receive unwanted email solicitations due to this required disclosure, the Federal Trade Commission, Bureau of Consumer Protection can best advise you whether an email violates the CAN-SPAM Act of 2003 and how to report violations.

You should also review the PTIN application Privacy Policy.

In order to maintain privacy PTIN holders may want to review and/or update contact information


b. PTIN Scenarios


1. I am a tax return preparer, and I have a PTIN.  My firm employs a bookkeeper.  She gathers client receipts and invoices, and organizes and records all information for me.  Although I use the information that our bookkeeper has compiled, I prepare my clients’ tax returns and make all substantive determinations that go into computing the tax liability.  Does my bookkeeper need to have a PTIN? (posted 9/28/10)

No, she is not a tax return preparer, and is not required to have a PTIN.

2. I am a tax return preparer, and I have a PTIN.  Every tax filing season I hire two paid interns from the accounting program at a local college to help me during the busy season.  The interns perform data entry from the tax organizer that my clients fill out, and assemble the documentation that the clients have submitted.  Where clients have submitted incomplete information, or more information is needed, the interns may call clients to gather information missing from the tax organizer, but they are not allowed to provide advice or answer tax law questions.  I prepare and sign all my clients’ returns.  Do my interns need to have a PTIN?  (posted 9/28/10)

No, the interns are not tax return preparers, and are not required to have a PTIN.

3. Same facts as above, but in order to help my interns get exposure to the tax system, I allow them to work with clients who have very simple tax situations, and prepare the Form 1040-EZ.  I review the forms carefully, and sign them.  Are my interns required to have PTINs? (posted 9/28/10)

Yes, the interns are tax return preparers and are required to have a PTIN, whether or not they sign the returns.

4. I am a tax return preparer, and I have a PTIN.  I have an administrative assistant in the office who also performs data entry during tax filing season.  At times, clients call and provide him with information, which he records in the system.  Using the data he has entered, I meet with my clients and provide advice as needed.   I then prepare and sign their returns.  Is my administrative assistant required to have a PTIN? posted 9/28/10)

No, the administrative assistant is not a tax return preparer, and is not required to have a PTIN.

5. I am a retired tax professional, and I volunteer during the tax filing season.  I volunteer at a VITA site, where I prepare individual tax returns for lower-income individuals for no compensation.  Do I need to have a PTIN? (revised 10/10/13)

No, you are not required to have a PTIN.

6. I run a small tax return preparation business that is heavily software-based.  I employ four associates who sit with taxpayers and walk through a step-by-step software program that uses an “interview” process that results in a draft tax return.  I check and sign the returns, and I have a PTIN.  Do my four associates need to have a PTIN? (posted 9/28/10)

You will need to perform additional analysis to determine whether your four associates must have a PTIN.  The answer depends on the specific circumstances of your firm.  In general, if individuals prepare, or assist in preparing, all or substantially all of a tax return, including making determinations that affect tax liability, they must have a PTIN.

7. I am a reporting agent who prepares Forms 94X series returns for my clients for compensation.  I do not exercise any discretion or independent judgment on my client's underlying tax positions and I do not render tax advice to any of my clients.  Do I need a PTIN?  (revised 1/3/11)

No.  The PTIN regulations incorporate the carve-out from the definition of tax return preparer in Treasury Regulation section 301.7701–15(f) for individuals who provide only typing, reproduction, or other mechanical assistance in the preparation of a return or claim for refund.  Example one under Treasury Regulation section 301.7701-15(f)(6) provides that reporting agents who do not exercise any discretion or independent judgment on the client's underlying tax positions and who do not render tax advice to any clients are carved-out under this exception and, therefore, are not tax return preparers.

8. I am a reporting agent who prepares Forms 94X series returns for my clients for compensation.  On occasion, my clients ask me for assistance with issues such as determining whether their workers are employees or independent contractors for federal tax purposes.  Do I need a PTIN? (revised 1/3/11)

Yes.  The PTIN regulations require all tax return preparers who are compensated for preparing, or assisting in the preparation of, all or substantially all of a tax return or claim for refund of tax to register and obtain a PTIN.  The carve-out from the definition of tax return preparer for individuals who provide only typing, reproduction, or other mechanical assistance in the preparation of a return or claim for refund does not apply to reporting agents who render tax advice to any client (example two under Treasury Regulation section 301.7701-15(f)(6)).

9. I am a retirement plan administrator who prepares Forms 5500 and the accompanying schedules for my clients. I also prepare Forms 8955-SSA and Form 5558 for my clients. While the Form 5500 series returns are included in the list of forms exempted from the PTIN requirements in Notice 2011-6, the Forms 8955-SSA and Forms 5558 are not included in that list. Am I required to obtain a PTIN? (posted 3/4/11)

No. The Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Participants, and Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, are, for purposes of Notice 2011-6, part of the "Form 5500 series" of tax returns inasmuch as these forms are prepared either in conjunction with the filing of a retirement plan's Form 5500 filing or to request an extension of time to file a Form 5500 series tax return.

10. Is an attorney or a certified public accountant required to obtain a PTIN if the attorney or certified public accountant only advises a client regarding an issue that is reflected on a claim for refund? (posted 3/4/11)

An attorney or certified public accountant is required to obtain a PTIN if the attorney or certified public accountant prepares, or assists in preparing, all or substantially all of a return or claim for refund. Under the authority of section 1.6109-2(h), however, an attorney or certified public accountant will not be required to obtain a PTIN if the attorney or certified public accountant only advises a client regarding an issue that is reflected on a claim for refund and neither the attorney or certified public accountant nor any person in the firm of the attorney or certified public accountant signs or is required to sign the claim for refund under Treasury Regulation sections 301.7701-15(b)(1) and 1.6695-1(b). The attorney or certified public accountant in question is still a nonsigning tax return preparer subject to penalty under section 6694 if the attorney or certified public accountant has prepared all or a substantial portion of the claim for refund within the meaning of Treasury Regulation section 301.7701-15(b)(3).

11. Our company prepares Forms 2290 for our clients.  It is the only federal tax form we prepare.  Are our employees subject to any of the new regulations? (revised 2/7/13)

Yes, any individual who receives compensation for preparing Forms 2290 is required to register with the IRS and obtain a PTIN.

12. If someone only prepares or assists with preparing Form 1023 for compensation, should they obtain a PTIN? (posted 3/7/12)
 
Generally yes.  More information about PTIN requirements for preparers of exempt organization forms is available here


c. Supervised, Non-Signing, and Non-1040 Preparers


1.  What is a supervised preparer?  Do supervised preparers need a PTIN? (revised 2/7/13)

A supervised preparer is a non-signing preparer who is employed by a law firm, CPA firm or other recognized firm (a firm that is at least 80 percent owned by attorneys, CPAs, or enrolled agents).  The returns they prepare are signed by a supervising attorney, CPA or enrolled agent at the firm. 

A supervised preparer does need a PTIN and must provide their supervisor’s PTIN on their PTIN application or renewal.

Additional guidance on supervised preparers is available in Notice 2011-6 (or view the Fact Sheet).

2. I own a tax preparation business and I review and sign all the returns my employees prepare.  Do they need PTINs?  (revised 2/7/13)

Yes.  Anyone you hire to prepare tax returns needs a PTIN regardless of whether you review and sign the returns.

3. What are the requirements for people who prepare returns other than the Form 1040 series? (revised 2/7/13)

Non-1040 preparers generally need a PTIN.  For exemptions to the PTIN requirement, see FAQ 1 at the top of this page under General Guidance

4. When multiple paid preparers are involved in preparation and/or review of a return, who is required to sign the return?  (posted 8/11/10)

Existing Treasury regulations under sections 1.6695-1(b) and 301.7701-15(b)(1) provide that a signing tax return preparer is the individual tax return preparer who has the primary responsibility for the overall accuracy of the preparation of a return.  The PTIN requirements, which require all preparers to register and obtain a PTIN, do not change the existing rules regarding who is the signing tax return preparer.

5. Are non-signing preparers disclosed on each return prepared even if another preparer reviews and signs it? (revised 2/7/13)

No, the names of non-signing preparers are not disclosed on the return.  Although there is no plan to expand the paid preparer section of the return to include non-signing preparers, they still are required to have a PTIN.

6. If I don't prepare any Form 1040 returns but prepare returns that flow-through to Forms 1040 such as Schedules K-1 for Forms 1065 or 1120S, how do I answer the question, &quotDo you prepare Form 1040 series tax returns?&quot (posted 10/12/11)
 
You should answer &quotno&quot.


d. SSN Requirements for Obtaining a PTIN


1. Is a social security number required to obtain a PTIN? (revised 4/13/11)

Individuals generally are required to provide their social security numbers when they obtain a PTIN.  However, U.S. citizens who have a conscientious objection to obtaining a social security number for religious reasons and foreign persons who are not eligible to obtain a social security number and have a permanent non-U.S. address may obtain a PTIN without a social security number.  These individuals are required to provide supplemental documentation to verify their identity and substantiate their eligibility for a PTIN under these specific exceptions.  See questions 2 and 3 below or Revenue Procedure 2010-41 for additional guidance.

Individuals who have an Individual Taxpayer Identification Number (ITIN) are not eligible for a PTIN unless they are foreign persons with a permanent non-U.S. address, and can provide documentation to support that status.

2. How do U.S. citizens without a social security number due to a conscientious objection for religious reasons obtain a PTIN? (updated 3/21/14)

U.S. citizens who have a conscientious objection to obtaining a social security number for religious reasons must complete Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application, either online or on paper, and a paper Form 8945, PTIN Supplemental Application For U.S. Citizens Without a Social Security Number Due To Conscientious Religious Objection.

Documentation to substantiate identity, U.S. citizenship, and status as a member of a recognized religious group must accompany the Form 8945.  Documentation requirements and mailing information are included in the Form 8945 instructions. Allow 4-6 weeks to process your PTIN application.

3. How do foreign preparers without a social security number obtain a PTIN? (updated 3/21/14)

A foreign preparer who does not have and is not eligible to obtain a social security number and is neither a citizen of the U.S. nor a resident alien of the U.S. as defined in section 7701(b)(1)(A) will need to complete the Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application, either online or on paper, and a paper Form 8946, PTIN Supplemental Application For Foreign Persons Without a Social Security Number. Only preparers that have a foreign (non-U.S.) address may file this form.

Individuals who have an Individual Taxpayer Identification Number (ITIN) are not eligible for a PTIN unless they are foreign persons with a permanent non-U.S. address.

Documentation to substantiate identity and eligibility must accompany the Form 8946. Documentation requirements and mailing information are included in the Form 8946 instructions.

Allow 4-6 weeks to process your PTIN application.  

4. I have a social security number, but have not filed an income tax return with the IRS. My individual income tax returns were filed with the Departamento de Hacienda (Puerto Rico). How do I obtain a PTIN? (updated 3/21/2014)

A Puerto Rican resident who has never filed a U.S. individual income tax return must submit a paper Form W-12 PTIN application. Ensure the address on Line 15 of the Form W-12 matches the information from your Hacienda tax return information. 

Include the following with your W-12 application:

  • Check or money order for $64.25 (make payable to IRS Tax Pro PTIN Fee)  
  • An original, certified, or notarized copy of your social security card along with one other government issued document that contains a current photo ID. Examples of acceptable supporting documents are listed below. All documents must be a current original, certified, or notarized and must verify your name. Refer to Form W-12 instructions for complete information regarding acceptable supporting documentation and application requirements.
    Examples of acceptable supporting documents:
    - Passport/Passport Card
    - Driver's License
    - U.S. State ID Card
    - Military ID Card
    - National ID card

Return to Return Preparer Program FAQs

Page Last Reviewed or Updated: 21-Mar-2014

The How To File State Taxes Online For Free

How to file state taxes online for free Publication 571 - Introductory Material Table of Contents Future Developments What's New for 2013 What's New for 2014 Reminder IntroductionOrdering forms and publications. How to file state taxes online for free Tax questions. How to file state taxes online for free Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 571 and its instructions, such as legislation enacted after they were published, go to www. How to file state taxes online for free irs. How to file state taxes online for free gov/pub571. How to file state taxes online for free What's New for 2013 Retirement savings contributions credit. How to file state taxes online for free  For 2013, the adjusted gross income limitations have increased from $57,500 to $59,000 for married filing jointly filers, from $43,125 to $44,250 for head of household filers, and from $28,750 to $29,500 for single, married filing separately, or qualifying widow(er) with dependent child filers. How to file state taxes online for free See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), for additional information. How to file state taxes online for free Limit on elective deferrals. How to file state taxes online for free  For 2013, the limit on elective deferrals has increased from $17,000 to $17,500. How to file state taxes online for free Limit on annual additions. How to file state taxes online for free  For 2013, the limit on annual additions has increased from $50,000 to $51,000. How to file state taxes online for free What's New for 2014 Retirement savings contributions credit. How to file state taxes online for free  For 2014, the adjusted gross income limitations have increased from $59,000 to $60,000 for married filing jointly filers, from $44,250 to $45,000 for head of household filers, and from $29,500 to $30,000 for single, married filing separately, or qualifying widow(er) with dependent child filers. How to file state taxes online for free See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), for additional information. How to file state taxes online for free Limit on elective deferrals. How to file state taxes online for free  For 2014, the limit on elective deferrals remains unchanged at $17,500. How to file state taxes online for free Limit on annual additions. How to file state taxes online for free  For 2014, the limit on annual additions has increased from $51,000 to $52,000. How to file state taxes online for free Reminder Photographs of missing children. How to file state taxes online for free  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. How to file state taxes online for free Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How to file state taxes online for free You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. How to file state taxes online for free Introduction This publication can help you better understand the tax rules that apply to your 403(b) (tax-sheltered annuity) plan. How to file state taxes online for free In this publication, you will find information to help you: Determine the maximum amount that can be contributed to your 403(b) account in 2014. How to file state taxes online for free Determine the maximum amount that could have been contributed to your 403(b) account in 2013. How to file state taxes online for free Identify excess contributions. How to file state taxes online for free Understand the basic rules for claiming the retirement savings contributions credit. How to file state taxes online for free Understand the basic rules for distributions and rollovers from 403(b) accounts. How to file state taxes online for free This publication does not provide specific information on the following topics. How to file state taxes online for free Distributions from 403(b) accounts. How to file state taxes online for free This is covered in Publication 575, Pension and Annuity Income. How to file state taxes online for free Rollovers. How to file state taxes online for free This is covered in Publication 590, Individual Retirement Arrangements (IRAs). How to file state taxes online for free How to use this publication. How to file state taxes online for free   This publication is organized into chapters to help you find information easily. How to file state taxes online for free    Chapter 1 answers questions frequently asked by 403(b) plan participants. How to file state taxes online for free    Chapters 2 through 6 explain the rules and terms you need to know to figure the maximum amount that could have been contributed to your 403(b) account for 2013 and the maximum amount that can be contributed to your 403(b) account in 2014. How to file state taxes online for free    Chapter 7 provides general information on the prevention and correction of excess contributions to your 403(b) account. How to file state taxes online for free    Chapter 8 provides general information on distributions, transfers, and rollovers. How to file state taxes online for free    Chapter 9 provides blank worksheets that you will need to accurately and actively participate in your 403(b) plan. How to file state taxes online for free Filled-in samples of most of these worksheets can be found throughout this publication. How to file state taxes online for free    Chapter 10 explains the rules for claiming the retirement savings contributions credit (saver's credit). How to file state taxes online for free Comments and suggestions. How to file state taxes online for free   We welcome your comments about this publication and your suggestions for future editions. How to file state taxes online for free   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. How to file state taxes online for free NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How to file state taxes online for free Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How to file state taxes online for free   You can send your comments from www. How to file state taxes online for free irs. How to file state taxes online for free gov/formspubs/. How to file state taxes online for free Click on “More Information” and then on “Comment on Tax Forms and Publications. How to file state taxes online for free ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. How to file state taxes online for free Ordering forms and publications. How to file state taxes online for free   Visit www. How to file state taxes online for free irs. How to file state taxes online for free gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. How to file state taxes online for free  Internal Revenue Service 1201 N. How to file state taxes online for free Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. How to file state taxes online for free   If you have a tax question, check the information available on IRS. How to file state taxes online for free gov or call 1-800-829-1040. How to file state taxes online for free We cannot answer tax questions sent to either of the above addresses. How to file state taxes online for free Useful Items - You may want to see: Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) W-2 Wage and Tax Statement 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How to file state taxes online for free 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 5330 Return of Excise Taxes Related to Employee Benefit Plans Prev  Up  Next   Home   More Online Publications