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Irs 2012 Tax Return

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Irs 2012 Tax Return

Irs 2012 tax return 9. Irs 2012 tax return   Dispositions of Property Used in Farming Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Section 1231 Gains and LossesNonrecaptured section 1231 losses. Irs 2012 tax return Depreciation RecaptureSection 1245 Property Section 1250 Property Installment Sale Other Dispositions Other GainsExceptions. Irs 2012 tax return Amount to report as ordinary income. Irs 2012 tax return Applicable percentage. Irs 2012 tax return Amount to report as ordinary income. Irs 2012 tax return Applicable percentage. Irs 2012 tax return Introduction When you dispose of property used in your farm business, your taxable gain or loss is usually treated as ordinary income (which is taxed at the same rates as wages and interest income) or capital gain (which is generally taxed at lower rates) under the rules for section 1231 transactions. Irs 2012 tax return When you dispose of depreciable property (section 1245 property or section 1250 property) at a gain, you may have to recognize all or part of the gain as ordinary income under the depreciation recapture rules. Irs 2012 tax return Any gain remaining after applying the depreciation recapture rules is a section 1231 gain, which may be taxed as a capital gain. Irs 2012 tax return Gains and losses from property used in farming are reported on Form 4797, Sales of Business Property. Irs 2012 tax return Table 9-1 contains examples of items reported on Form 4797 and refers to the part of that form on which they first should be reported. Irs 2012 tax return Topics - This chapter discusses: Section 1231 gains and losses Depreciation recapture Other gains Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. Irs 2012 tax return Section 1231 Gains and Losses Section 1231 gains and losses are the taxable gains and losses from section 1231 transactions (explained below). Irs 2012 tax return Their treatment as ordinary or capital gains depends on whether you have a net gain or a net loss from all of your section 1231 transactions in the tax year. Irs 2012 tax return Table 9-1. Irs 2012 tax return Where to First Report Certain Items on Form 4797 Type of property Held 1 year  or less Held more than  1 year 1 Depreciable trade or business property:       a Sold or exchanged at a gain Part II Part III (1245, 1250)   b Sold or exchanged at a loss Part II Part I 2 Farmland held less than 10 years for which soil, water, or land clearing expenses were deducted:       a Sold at a gain Part II Part III (1252)   b Sold at a loss Part II Part I 3 All other farmland Part II Part I 4 Disposition of cost-sharing payment property described in section 126 Part II Part III (1255) 5 Cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes: Held less  than 24 mos. Irs 2012 tax return Held 24 mos. Irs 2012 tax return  or more   a Sold at a gain Part II Part III (1245)   b Sold at a loss Part II Part I   c Raised cattle and horses sold at a gain Part II Part I 6 Livestock other than cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes: Held less  than 12 mos. Irs 2012 tax return Held 12 mos. Irs 2012 tax return   or more   a Sold at a gain Part II Part III (1245)   b Sold at a loss Part II Part I   c Raised livestock sold at a gain Part II Part I If you have a gain from a section 1231 transaction, first determine whether any of the gain is ordinary income under the depreciation recapture rules (explained later). Irs 2012 tax return Do not take that gain into account as section 1231 gain. Irs 2012 tax return Section 1231 transactions. Irs 2012 tax return   Gain or loss on the following transactions is subject to section 1231 treatment. Irs 2012 tax return Sale or exchange of cattle and horses. Irs 2012 tax return The cattle and horses must be held for draft, breeding, dairy, or sporting purposes and held for 24 months or longer. Irs 2012 tax return Sale or exchange of other livestock. Irs 2012 tax return This livestock must be held for draft, breeding, dairy, or sporting purposes and held for 12 months or longer. Irs 2012 tax return Other livestock includes hogs, mules, sheep, goats, donkeys, and other fur-bearing animals. Irs 2012 tax return Other livestock does not include poultry. Irs 2012 tax return Sale or exchange of depreciable personal property. Irs 2012 tax return This property must be used in your business and held longer than 1 year. Irs 2012 tax return Generally, property held for the production of rents or royalties is considered to be used in a trade or business. Irs 2012 tax return Examples of depreciable personal property include farm machinery and trucks. Irs 2012 tax return It also includes amortizable section 197 intangibles. Irs 2012 tax return Sale or exchange of real estate. Irs 2012 tax return This property must be used in your business and held longer than 1 year. Irs 2012 tax return Examples are your farm or ranch (including barns and sheds). Irs 2012 tax return Sale or exchange of unharvested crops. Irs 2012 tax return The crop and land must be sold, exchanged, or involuntarily converted at the same time and to the same person, and the land must have been held longer than 1 year. Irs 2012 tax return You cannot keep any right or option to reacquire the land directly or indirectly (other than a right customarily incident to a mortgage or other security transaction). Irs 2012 tax return Growing crops sold with a leasehold on the land, even if sold to the same person in a single transaction, are not included. Irs 2012 tax return Distributive share of partnership gains and losses. Irs 2012 tax return Your distributive share must be from the sale or exchange of property listed above and held longer than 1 year (or for the required period for certain livestock). Irs 2012 tax return Cutting or disposal of timber. Irs 2012 tax return Special rules apply if you owned the timber longer than 1 year and elect to treat timber cutting as a sale or exchange, or you enter into a cutting contract, as described in chapter 8 under Timber . Irs 2012 tax return Condemnation. Irs 2012 tax return The condemned property (defined in chapter 11) must have been held longer than 1 year. Irs 2012 tax return It must be business property or a capital asset held in connection with a trade or business or a transaction entered into for profit, such as investment property. Irs 2012 tax return It cannot be property held for personal use. Irs 2012 tax return Casualty or theft. Irs 2012 tax return The casualty or theft must have affected business property, property held for the production of rents or royalties, or investment property (such as notes and bonds). Irs 2012 tax return You must have held the property longer than 1 year. Irs 2012 tax return However, if your casualty or theft losses are more than your casualty or theft gains, neither the gains nor the losses are taken into account in the section 1231 computation. Irs 2012 tax return Section 1231 does not apply to personal casualty gains and losses. Irs 2012 tax return See chapter 11 for information on how to treat those gains and losses. Irs 2012 tax return If the property is not held for the required holding period, the transaction is not subject to section 1231 treatment, and any gain or loss is ordinary income reported in Part II of Form 4797. Irs 2012 tax return See Table 9-1. Irs 2012 tax return Property for sale to customers. Irs 2012 tax return   A sale, exchange, or involuntary conversion of property held mainly for sale to customers is not a section 1231 transaction. Irs 2012 tax return If you will get back all, or nearly all, of your investment in the property by selling it rather than by using it up in your business, it is property held mainly for sale to customers. Irs 2012 tax return Treatment as ordinary or capital. Irs 2012 tax return   To determine the treatment of section 1231 gains and losses, combine all of your section 1231 gains and losses for the year. Irs 2012 tax return If you have a net section 1231 loss, it is an ordinary loss. Irs 2012 tax return If you have a net section 1231 gain, it is ordinary income up to your nonrecaptured section 1231 losses from previous years, explained next. Irs 2012 tax return The rest, if any, is long-term capital gain. Irs 2012 tax return Nonrecaptured section 1231 losses. Irs 2012 tax return   Your nonrecaptured section 1231 losses are your net section 1231 losses for the previous 5 years that have not been applied against a net section 1231 gain by treating the gain as ordinary income. Irs 2012 tax return These losses are applied against your net section 1231 gain beginning with the earliest loss in the 5-year period. Irs 2012 tax return Example. Irs 2012 tax return In 2013, Ben has a $2,000 net section 1231 gain. Irs 2012 tax return To figure how much he has to report as ordinary income and long-term capital gain, he must first determine his section 1231 gains and losses from the previous 5-year period. Irs 2012 tax return From 2008 through 2012 he had the following section 1231 gains and losses. Irs 2012 tax return Year Amount 2008 -0- 2009 -0- 2010 ($2,500) 2011 -0- 2012 $1,800   Ben uses this information to figure how to report his net section 1231 gain for 2013 as shown below. Irs 2012 tax return 1) Net section 1231 gain (2013) $2,000 2) Net section 1231 loss (2010) ($2,500)   3) Net section 1231 gain (2012) 1,800   4) Remaining net section 1231 loss from prior 5 years ($700)   5) Gain treated as  ordinary income $700 6) Gain treated as long-term  capital gain $1,300 His remaining net section 1231 loss from 2010 is completely recaptured in 2013. Irs 2012 tax return Depreciation Recapture If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if it is otherwise nontaxable) as ordinary income. Irs 2012 tax return To figure any gain that must be reported as ordinary income, you must keep permanent records of the facts necessary to figure the depreciation or amortization allowed or allowable on your property. Irs 2012 tax return For more information, see chapter 3 of Publication 544. Irs 2012 tax return Section 1245 Property A gain on the disposition of section 1245 property is treated as ordinary income to the extent of depreciation allowed or allowable. Irs 2012 tax return Any recognized gain that is more than the part that is ordinary income is a section 1231 gain. Irs 2012 tax return See Treatment as ordinary or capital under Section 1231 Gains and Losses , earlier. Irs 2012 tax return Section 1245 property includes any property that is or has been subject to an allowance for depreciation or amortization and that is any of the following types of property. Irs 2012 tax return Personal property (either tangible or intangible). Irs 2012 tax return Other tangible property (except buildings and their structural components) used as any of the following. Irs 2012 tax return See Buildings and structural components below. Irs 2012 tax return An integral part of manufacturing, production, or extraction, or of furnishing certain services. Irs 2012 tax return A research facility in any of the activities in (a). Irs 2012 tax return A facility in any of the activities in (a) above, for the bulk storage of fungible commodities (discussed later). Irs 2012 tax return That part of real property (not included in (2)) with an adjusted basis reduced by (but not limited to) the following. Irs 2012 tax return Amortization of certified pollution control facilities. Irs 2012 tax return The section 179 expense deduction. Irs 2012 tax return Deduction for clean-fuel vehicles and certain refueling property. Irs 2012 tax return Expenditures to remove architectural and transportation barriers to the handicapped and elderly. Irs 2012 tax return Certain reforestation expenditures (as described under Reforestation Costs in chapter 7. Irs 2012 tax return Single purpose agricultural (livestock) or horticultural structures. Irs 2012 tax return Storage facilities (except buildings and their structural components) used in distributing petroleum or any primary product of petroleum. Irs 2012 tax return Buildings and structural components. Irs 2012 tax return   Section 1245 property does not include buildings and structural components. Irs 2012 tax return The term building includes a house, barn, warehouse, or garage. Irs 2012 tax return The term structural component includes walls, floors, windows, doors, central air conditioning systems, light fixtures, etc. Irs 2012 tax return   Do not treat a structure that is essentially machinery or equipment as a building or structural component. Irs 2012 tax return Also, do not treat a structure that houses property used as an integral part of an activity as a building or structural component if the structure's use is so closely related to the property's use that the structure can be expected to be replaced when the property it initially houses is replaced. Irs 2012 tax return   The fact that the structure is specially designed to withstand the stress and other demands of the property and cannot be used economically for other purposes indicates it is closely related to the use of the property it houses. Irs 2012 tax return Structures such as oil and gas storage tanks, grain storage bins, and silos are not treated as buildings, but as section 1245 property. Irs 2012 tax return Facility for bulk storage of fungible commodities. Irs 2012 tax return   This is a facility used mainly for the bulk storage of fungible commodities. Irs 2012 tax return Bulk storage means storage of a commodity in a large mass before it is used. Irs 2012 tax return For example, if a facility is used to store oranges that have been sorted and boxed, it is not used for bulk storage. Irs 2012 tax return To be fungible, a commodity must be such that one part may be used in place of another. Irs 2012 tax return Gain Treated as Ordinary Income The gain treated as ordinary income on the sale, exchange, or involuntary conversion of section 1245 property, including a sale and leaseback transaction, is the lesser of the following amounts. Irs 2012 tax return The depreciation (which includes any section 179 deduction claimed) and amortization allowed or allowable on the property. Irs 2012 tax return The gain realized on the disposition (the amount realized from the disposition minus the adjusted basis of the property). Irs 2012 tax return For any other disposition of section 1245 property, ordinary income is the lesser of (1) above or the amount by which its fair market value (FMV) is more than its adjusted basis. Irs 2012 tax return For details, see chapter 3 of Publication 544. Irs 2012 tax return Use Part III of Form 4797 to figure the ordinary income part of the gain. Irs 2012 tax return Depreciation claimed on other property or claimed by other taxpayers. Irs 2012 tax return   Depreciation and amortization include the amounts you claimed on the section 1245 property as well as the following depreciation and amortization amounts. Irs 2012 tax return Amounts you claimed on property you exchanged for, or converted to, your section 1245 property in a like-kind exchange or involuntary conversion. Irs 2012 tax return For details on exchanges of property that are not taxable, see Like-Kind Exchanges in chapter 8. Irs 2012 tax return Amounts a previous owner of the section 1245 property claimed if your basis is determined with reference to that person's adjusted basis (for example, the donor's depreciation deductions on property you received as a gift and part of the transfer is a sale or exchange). Irs 2012 tax return Example. Irs 2012 tax return Jeff Free paid $120,000 for a tractor in 2012. Irs 2012 tax return On February 23, 2013, he traded it for a chopper and paid an additional $30,000. Irs 2012 tax return To figure his depreciation deduction on the chopper for the current year, Jeff continues to use the basis of the tractor as he would have before the trade. Irs 2012 tax return Jeff can also depreciate the additional $30,000 for the chopper. Irs 2012 tax return Depreciation and amortization. Irs 2012 tax return   Depreciation and amortization deductions that must be recaptured as ordinary income include (but are not limited to) the following items. Irs 2012 tax return See Depreciation Recapture in chapter 3 of Publication 544 for more details. Irs 2012 tax return Ordinary depreciation deductions. Irs 2012 tax return Section 179 deduction (see chapter 7). Irs 2012 tax return Any special depreciation allowance. Irs 2012 tax return Amortization deductions for all the following costs. Irs 2012 tax return Acquiring a lease. Irs 2012 tax return Lessee improvements. Irs 2012 tax return Pollution control facilities. Irs 2012 tax return Reforestation expenses. Irs 2012 tax return Section 197 intangibles. Irs 2012 tax return Qualified disaster expenses. Irs 2012 tax return Franchises, trademarks, and trade names acquired before August 11, 1993. Irs 2012 tax return Example. Irs 2012 tax return You file your returns on a calendar year basis. Irs 2012 tax return In February 2011, you bought and placed in service for 100% use in your farming business a light-duty truck (5-year property) that cost $10,000. Irs 2012 tax return You used the half-year convention and your MACRS deductions for the truck were $1,500 in 2011 and $2,550 in 2012. Irs 2012 tax return You did not claim the section 179 expense deduction for the truck. Irs 2012 tax return You sold it in May 2013 for $7,000. Irs 2012 tax return The MACRS deduction in 2013, the year of sale, is $893 (½ of $1,785). Irs 2012 tax return Figure the gain treated as ordinary income as follows. Irs 2012 tax return 1) Amount realized $7,000 2) Cost (February 2011) $10,000   3) Depreciation allowed or allowable (MACRS deductions: $1,500 + $2,550 + $893) 4,943   4) Adjusted basis (subtract line 3 from line 2) $5,057 5) Gain realized (subtract line 4 from line 1) 1,943 6) Gain treated as ordinary income (lesser of line 3 or line 5) $1,943 Depreciation allowed or allowable. Irs 2012 tax return   You generally use the greater of the depreciation allowed or allowable when figuring the part of gain to report as ordinary income. Irs 2012 tax return If, in prior years, you have consistently taken proper deductions under one method, the amount allowed for your prior years will not be increased even though a greater amount would have been allowed under another proper method. Irs 2012 tax return If you did not take any deduction at all for depreciation, your adjustments to basis for depreciation allowable are figured by using the straight line method. Irs 2012 tax return This treatment applies only when figuring what part of the gain is treated as ordinary income under the rules for section 1245 depreciation recapture. Irs 2012 tax return Disposition of plants and animals. Irs 2012 tax return   If you elect not to use the uniform capitalization rules (see chapter 6), you must treat any plant you produce as section 1245 property. Irs 2012 tax return If you have a gain on the property's disposition, you must recapture the pre-productive expenses you would have capitalized if you had not made the election by treating the gain, up to the amount of these expenses, as ordinary income. Irs 2012 tax return For section 1231 transactions, show these expenses as depreciation on Form 4797, Part III, line 22. Irs 2012 tax return For plant sales that are reported on Schedule F (1040), Profit or Loss From Farming, this recapture rule does not change the reporting of income because the gain is already ordinary income. Irs 2012 tax return You can use the farm-price method or the unit-livestock-price method discussed in  chapter 2 to figure these expenses. Irs 2012 tax return Example. Irs 2012 tax return Janet Maple sold her apple orchard in 2013 for $80,000. Irs 2012 tax return Her adjusted basis at the time of sale was $60,000. Irs 2012 tax return She bought the orchard in 2006, but the trees did not produce a crop until 2009. Irs 2012 tax return Her pre-productive expenses were $6,000. Irs 2012 tax return She elected not to use the uniform capitalization rules. Irs 2012 tax return Janet must treat $6,000 of the gain as ordinary income. Irs 2012 tax return Section 1250 Property Section 1250 property includes all real property subject to an allowance for depreciation that is not and never has been section 1245 property. Irs 2012 tax return It includes buildings and structural components that are not section 1245 property (discussed earlier). Irs 2012 tax return It includes a leasehold of land or section 1250 property subject to an allowance for depreciation. Irs 2012 tax return A fee simple interest in land is not section 1250 property because, like land, it is not depreciable. Irs 2012 tax return Gain on the disposition of section 1250 property is treated as ordinary income to the extent of additional depreciation allowed or allowable. Irs 2012 tax return To determine the additional depreciation on section 1250 property, see Depreciation Recapture in chapter 3 of Publication 544. Irs 2012 tax return You will not have additional depreciation if any of the following apply to the property disposed of. Irs 2012 tax return You figured depreciation for the property using the straight line method or any other method that does not result in depreciation that is more than the amount figured by the straight line method and you have held the property longer than 1 year. Irs 2012 tax return You chose the alternate ACRS (straight line) method for the property, which was a type of 15-, 18-, or 19-year real property covered by the section 1250 rules. Irs 2012 tax return The property was nonresidential real property placed in service after 1986 (or after July 31, 1986, if the choice to use MACRS was made) and you held it longer than 1 year. Irs 2012 tax return These properties are depreciated using the straight line method. Irs 2012 tax return Installment Sale If you report the sale of property under the installment method, any depreciation recapture under section 1245 or 1250 is taxable as ordinary income in the year of sale. Irs 2012 tax return This applies even if no payments are received in that year. Irs 2012 tax return If the gain is more than the depreciation recapture income, report the rest of the gain using the rules of the installment method. Irs 2012 tax return For this purpose, include the recapture income in your installment sale basis to determine your gross profit on the installment sale. Irs 2012 tax return If you dispose of more than one asset in a single transaction, you must separately figure the gain on each asset so that it may be properly reported. Irs 2012 tax return To do this, allocate the selling price and the payments you receive in the year of sale to each asset. Irs 2012 tax return Report any depreciation recapture income in the year of sale before using the installment method for any remaining gain. Irs 2012 tax return For more information on installment sales, see chapter 10. Irs 2012 tax return Other Dispositions Chapter 3 of Publication 544 discusses the tax treatment of the following transfers of depreciable property. Irs 2012 tax return By gift. Irs 2012 tax return At death. Irs 2012 tax return In like-kind exchanges. Irs 2012 tax return In involuntary conversions. Irs 2012 tax return Publication 544 also explains how to handle a single transaction involving multiple properties. Irs 2012 tax return Other Gains This section discusses gain on the disposition of farmland for which you were allowed either of the following. Irs 2012 tax return Deductions for soil and water conservation expenditures (section 1252 property). Irs 2012 tax return Exclusions from income for certain cost sharing payments (section 1255 property). Irs 2012 tax return Section 1252 property. Irs 2012 tax return   If you disposed of farmland you held more than 1 year and less than 10 years at a gain and you were allowed deductions for soil and water conservation expenses for the land, as discussed in chapter 5, you must treat part of the gain as ordinary income and treat the balance as section 1231 gain. Irs 2012 tax return Exceptions. Irs 2012 tax return   Do not treat gain on the following transactions as gain on section 1252 property. Irs 2012 tax return Disposition of farmland by gift. Irs 2012 tax return Transfer of farm property at death (except for income in respect of a decedent). Irs 2012 tax return For more information, see Regulations section 1. Irs 2012 tax return 1252-2. Irs 2012 tax return Amount to report as ordinary income. Irs 2012 tax return   You report as ordinary income the lesser of the following amounts. Irs 2012 tax return Your gain (determined by subtracting the adjusted basis from the amount realized from a sale, exchange, or involuntary conversion, or the FMV for all other dispositions). Irs 2012 tax return The total deductions allowed for soil and water conservation expenses multiplied by the applicable percentage, discussed next. Irs 2012 tax return Applicable percentage. Irs 2012 tax return   The applicable percentage is based on the length of time you held the land. Irs 2012 tax return If you dispose of your farmland within 5 years after the date you acquired it, the percentage is 100%. Irs 2012 tax return If you dispose of the land within the 6th through 9th year after you acquired it, the applicable percentage is reduced by 20% a year for each year or part of a year you hold the land after the 5th year. Irs 2012 tax return If you dispose of the land 10 or more years after you acquired it, the percentage is 0%, and the entire gain is a section 1231 gain. Irs 2012 tax return Example. Irs 2012 tax return You acquired farmland on January 19, 2005. Irs 2012 tax return On October 3, 2013, you sold the land at a $30,000 gain. Irs 2012 tax return Between January 1 and October 3, 2013, you incur soil and water conservation expenditures of $15,000 for the land that are fully deductible in 2013. Irs 2012 tax return The applicable percentage is 40% since you sold the land within the 8th year after you acquired it. Irs 2012 tax return You treat $6,000 (40% of $15,000) of the $30,000 gain as ordinary income and the $24,000 balance as a section 1231 gain. Irs 2012 tax return Section 1255 property. Irs 2012 tax return   If you receive certain cost-sharing payments on property and you exclude those payments from income (as discussed in chapter 3), you may have to treat part of any gain as ordinary income and treat the balance as a section 1231 gain. Irs 2012 tax return If you chose not to exclude these payments, you will not have to recognize ordinary income under this provision. Irs 2012 tax return Amount to report as ordinary income. Irs 2012 tax return   You report as ordinary income the lesser of the following amounts. Irs 2012 tax return The applicable percentage of the total excluded cost-sharing payments. Irs 2012 tax return The gain on the disposition of the property. Irs 2012 tax return You do not report ordinary income under this rule to the extent the gain is recognized as ordinary income under sections 1231 through 1254, 1256, and 1257. Irs 2012 tax return However, if applicable, gain reported under this rule must be reported regardless of any contrary provisions (including nonrecognition provisions) under any other section. Irs 2012 tax return Applicable percentage. Irs 2012 tax return   The applicable percentage of the excluded cost-sharing payments to be reported as ordinary income is based on the length of time you hold the property after receiving the payments. Irs 2012 tax return If the property is held less than 10 years after you receive the payments, the percentage is 100%. Irs 2012 tax return After 10 years, the percentage is reduced by 10% a year, or part of a year, until the rate is 0%. Irs 2012 tax return Form 4797, Part III. Irs 2012 tax return   Use Form 4797, Part III, to figure the ordinary income part of a gain from the sale, exchange, or involuntary conversion of section 1252 property and section 1255 property. Irs 2012 tax return Prev  Up  Next   Home   More Online Publications
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Understanding Your CP123 Notice

We made changes to your excise tax return because we believe there was a miscalculation. As a result of these changes, you have a balance due of less than $1.


What you need to do

  • Read the notice carefully.
  • Compare the figures on the notice with your railroad retirement tax return.
  • Contact us within 30 days of the date of your notice if you disagree with the changes we made.
  • Correct the copy of your railroad retirement tax return that you kept for your records if you agree with our changes.
  • You don’t have to pay if you owe less than $1.

You may want to

  • Download copies of the following materials (if they weren’t included with your notice).
  • Call 1-800-829-FORM to have forms and publications mailed to you.

 


Answers to Common Questions

Q. How can I find out what caused my tax return to change?

A. You can contact us at the number listed on your notice for specific information about your tax return.

Q. What should I do if I disagree with the changes you made?

A. If you disagree, contact us at the toll-free number listed on the top right corner of your notice or respond in writing within 30 days of the date of the notice. If your response provides additional information that justifies a reversal of the change, we’ll reverse the change we made to your account. If you agree with the change, update your records. No further action is required.

 


Tips for next year

Review your return for accuracy before mailing it to us.

Page Last Reviewed or Updated: 23-Jan-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Irs 2012 Tax Return

Irs 2012 tax return Publication 510 - Introductory Material Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Excise Taxes Not Covered What's New Medical device excise tax. Irs 2012 tax return  The Affordable Care Act (the “Act”) (Public Law 111-148, amended by Public Law 111-152) imposes a 2. Irs 2012 tax return 3% (. Irs 2012 tax return 023) excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device. Irs 2012 tax return The tax applies to sales of taxable medical devices after December 31, 2012. Irs 2012 tax return See Taxable Medical Devices in chapter 5, later. Irs 2012 tax return Tax on seasonal flu vaccines. Irs 2012 tax return  Sales of all vaccines against seasonal influenza are now subject to the section 4131 excise tax at the existing rate of $. Irs 2012 tax return 75 per dose of taxable vaccine. Irs 2012 tax return Previously, only trivalent influenza vaccines were subject to this tax. Irs 2012 tax return See Vaccines in chapter 5, later. Irs 2012 tax return Patient-centered outcomes research fee. Irs 2012 tax return  The Act imposes a fee on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4576) to help fund the Patient-Centered Outcomes Research Institute. Irs 2012 tax return The fee, required to be reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st, is based on the average number of lives covered under the policy or plan. Irs 2012 tax return The fee applies to policy or plan years ending on or after October 1, 2012. Irs 2012 tax return See chapter 11, later. Irs 2012 tax return Extension of fuel tax credits. Irs 2012 tax return  The following section 6426 credits, previously expired on December 31, 2011, are retroactively extended. Irs 2012 tax return Biodiesel or renewable diesel mixture credit. Irs 2012 tax return Alternative fuel credit. Irs 2012 tax return Alternative fuel mixture credit. Irs 2012 tax return See Notice 2013–26 (fuel tax credits) on page 984 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2013–18 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb13-18. Irs 2012 tax return pdf; also see chapter 2, later. Irs 2012 tax return Alternative fuel mixture credit can be claimed on Schedule C (Form 720) only. Irs 2012 tax return  For alternative fuel mixtures produced after December 31, 2011, the section 6426 alternative fuel mixture credit can be claimed on Schedule C (Form 720) only, not on Form 4136, Credit for Federal Tax Paid on Fuels, or Schedule 3 (Form 8849), Claim for Refund of Excise Taxes, and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel, and kerosene. Irs 2012 tax return See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit in chapter 2, later. Irs 2012 tax return Expiration of alcohol fuel mixture credit. Irs 2012 tax return  The section 6426 alcohol fuel mixture credit expired after December 31, 2011. Irs 2012 tax return Expiration of alcohol fuels credits. Irs 2012 tax return  The section 40 alcohol, alcohol mixture, and small ethanol producer credits expired after December 31, 2011. Irs 2012 tax return Second generation biofuel producer credit and excise tax. Irs 2012 tax return  The section 40 cellulosic biofuel producer credit was retroactively extended to include fuel sold or used through January 2, 2013. Irs 2012 tax return After January 2, 2013, cellulosic biofuel is renamed second generation biofuel, which adds algae-based fuel. Irs 2012 tax return The second generation biofuel producer credit is for fuel sold or used after January 2, 2013, and before January 1, 2014. Irs 2012 tax return You are liable for an excise tax on each gallon of cellulosic or second generation biofuel at the rate you used to figure the credit if you do not use the fuel for the purposes described under Qualified Cellulosic Biofuel Production or Qualified Second Generation Biofuel Production, later. Irs 2012 tax return Report the tax on Form 720. Irs 2012 tax return See Cellulosic or Second Generation Biofuel Not Used as Fuel, later; also see Form 6478, Biofuel Producer Credit, for more information. Irs 2012 tax return Extension of section 40A biodiesel fuels credit. Irs 2012 tax return  The biodiesel fuels credit, previously expired on December 31, 2011, is retroactively extended. Irs 2012 tax return Future developments. Irs 2012 tax return  The IRS has created a page on IRS. Irs 2012 tax return gov that includes information about Publication 510 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub510. Irs 2012 tax return Information about any future developments will be posted on that page. Irs 2012 tax return Reminders Publication 510 updates. Irs 2012 tax return  Publication 510 is not updated annually. Irs 2012 tax return Instead, it will be updated only when there are major changes in the tax law. Irs 2012 tax return Use of international air travel facilities. Irs 2012 tax return  Generally, the tax on the use of international air travel facilities increases annually. Irs 2012 tax return See the Instructions for Form 720 for the tax rate. Irs 2012 tax return For more information, see Air Transportation Taxes in chapter 4. Irs 2012 tax return Aviation fuels for use in foreign trade. Irs 2012 tax return  Aviation gasoline and kerosene for use in aviation are exempt from the leaking underground storage tank (LUST) tax. Irs 2012 tax return Arrow shafts, tax rate. Irs 2012 tax return  Generally, the tax on arrow shafts increases annually. Irs 2012 tax return See Form 720 for the tax rate. Irs 2012 tax return Disregarded entities and qualified subchapter S subsidiaries. Irs 2012 tax return  Qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax and reporting purposes. Irs 2012 tax return QSubs and eligible single-owner disregarded entities must pay and report excise taxes (other than IRS Nos. Irs 2012 tax return 31, 51, and 117), register for most excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). Irs 2012 tax return These actions cannot take place under the owner's taxpayer identification number (TIN). Irs 2012 tax return Some QSubs and disregarded entities may already have an EIN. Irs 2012 tax return However, if you are unsure, please call the IRS Business and Specialty Tax line at 1-800-829-4933. Irs 2012 tax return Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). Irs 2012 tax return For more information on these regulations, see Treasury Decision (T. Irs 2012 tax return D. Irs 2012 tax return ) 9356, T. Irs 2012 tax return D. Irs 2012 tax return 9462, and T. Irs 2012 tax return D. Irs 2012 tax return 9596. Irs 2012 tax return You can find T. Irs 2012 tax return D. Irs 2012 tax return 9356 on page 675 of Internal Revenue Bulletin (I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return ) 2007-39 at  www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb07-39. Irs 2012 tax return pdf;  T. Irs 2012 tax return D. Irs 2012 tax return 9462 on page 504 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2009-42 at  www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb09-42. Irs 2012 tax return pdf;  and T. Irs 2012 tax return D. Irs 2012 tax return 9596 on page 84 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2012-30 at  www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb12-30. Irs 2012 tax return pdf. Irs 2012 tax return Registration for certain activities. Irs 2012 tax return  You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the bulk transfer/terminal system. Irs 2012 tax return See the instructions for Form 637 for the list of activities for which you must register. Irs 2012 tax return Also see Registration Requirements under Fuel Taxes in chapter 1 for information on registration for activities related to fuel. Irs 2012 tax return Each business unit that has, or is required to have, a separate employer identification number must be registered. Irs 2012 tax return To apply for registration, complete Form 637 and provide the information requested in its instructions. Irs 2012 tax return If your application is approved, you will receive a Letter of Registration showing the activities for which you are registered, the effective date of the registration, and your registration number. Irs 2012 tax return A copy of Form 637 is not a Letter of Registration. Irs 2012 tax return Photographs of missing children. Irs 2012 tax return  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Irs 2012 tax return Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Irs 2012 tax return 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. Irs 2012 tax return Introduction This publication covers the excise taxes for which you may be liable and which are reported on Form 720 and other forms. Irs 2012 tax return It also covers fuel tax credits and refunds. Irs 2012 tax return For information on fuel credits against income tax (the section 40 credits for the production of cellulosic biofuel and second generation biofuel, and the section 40A credit for biodiesel and renewable diesel used as fuel) see the instructions for Form 6478 and Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Irs 2012 tax return Comments and suggestions. Irs 2012 tax return   We welcome your comments about this publication and your suggestions for future editions. Irs 2012 tax return   You can write to us at the following address: Internal Revenue Service Individual and Specialty Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Irs 2012 tax return NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Irs 2012 tax return Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs 2012 tax return   You can email us at taxforms@irs. Irs 2012 tax return gov. Irs 2012 tax return Please put “Publications Comment” on the subject line. Irs 2012 tax return You can also send us comments from www. Irs 2012 tax return irs. Irs 2012 tax return gov/Forms-&-Pubs/More-Information/ and select “Comment on Tax Forms and Publications”. Irs 2012 tax return   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. Irs 2012 tax return Useful Items - You may want to see: Publication 509 Tax Calendars Form (and Instructions) 11-C Occupational Tax and Registration Return for Wagering 637 Application for Registration (For Certain Excise Tax Activities) 720 Quarterly Federal Excise Tax Return 720X Amended Quarterly Federal Excise Tax Return 730 Monthly Tax Return for Wagers 1363 Export Exemption Certificate 2290 Heavy Highway Vehicle Use Tax Return 2290(SP) Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras 4136 Credit for Federal Tax Paid on Fuels 6197 Gas Guzzler Tax 6478 Biofuel Producer Credit 6627 Environmental Taxes 8849 Claim for Refund of Excise Taxes, and Schedules 1–3, 5, 6, and 8 8864 Biodiesel and Renewable Diesel Fuels Credit Information Returns    Form 720-TO, Terminal Operator Report Form 720-CS, Carrier Summary Report   See How To Get Tax Help in chapter 17 for information about ordering forms and publications. Irs 2012 tax return Guidance    You can find Notice 2005-4 (fuel tax guidance) on page 289 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2005-2 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb05-02. Irs 2012 tax return pdf. Irs 2012 tax return Notice 2005-62 (biodiesel and aviation-grade kerosene) on page 443 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2005-35 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb05-35. Irs 2012 tax return pdf. Irs 2012 tax return Notice 2005-80 (LUST, kerosene, claims by credit card issuers, and mechanical dye injection) on page 953 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2005-46 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb05-46. Irs 2012 tax return pdf. Irs 2012 tax return Notice 2006-92 (alternative fuels and alternative fuel mixtures) on page 774 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2006-43 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb06-43. Irs 2012 tax return pdf. Irs 2012 tax return Notice 2008-110 (biodiesel and cellulosic biofuel) on page 1298 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2008-51 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb08-51. Irs 2012 tax return pdf. Irs 2012 tax return Notice 2010-68 (Alaska dyed diesel exemption) on page 576 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2010-44 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb10-44. Irs 2012 tax return pdf. Irs 2012 tax return Notice 2012-27 (fractional aircraft ownership programs fuel surtax) on page 849 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2012-17 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb12-17. Irs 2012 tax return pdf. Irs 2012 tax return Notice 2013-26 (fuel tax credits) on page 984 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2013-18 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb13-18. Irs 2012 tax return pdf. Irs 2012 tax return T. Irs 2012 tax return D. Irs 2012 tax return 9604 and Notice 2012–77 (medical device tax) on pages 730 and 781, respectively, of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2012-52 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb12-52. Irs 2012 tax return pdf. Irs 2012 tax return T. Irs 2012 tax return D. Irs 2012 tax return 9602 (patient-centered outcomes research fee) on page 746 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2012-52 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb12-52. Irs 2012 tax return pdf. Irs 2012 tax return Revenue Procedure 2012-41 (inflation adjustments) on page 539 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2012-45 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb12-45. Irs 2012 tax return pdf. Irs 2012 tax return T. Irs 2012 tax return D. Irs 2012 tax return 9621 (indoor tanning services tax) on page 49 of I. Irs 2012 tax return R. Irs 2012 tax return B. Irs 2012 tax return 2013-28 at www. Irs 2012 tax return irs. Irs 2012 tax return gov/pub/irs-irbs/irb13-28. Irs 2012 tax return pdf. Irs 2012 tax return Excise Taxes Not Covered In addition to the taxes discussed in this publication, you may have to report certain other excise taxes. Irs 2012 tax return For tax forms relating to alcohol, firearms, and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www. Irs 2012 tax return ttb. Irs 2012 tax return gov. Irs 2012 tax return Heavy highway vehicle use tax. Irs 2012 tax return   You report the federal excise tax on the use of certain trucks, truck tractors, and buses used on public highways on Form 2290, Heavy Highway Vehicle Use Tax Return. Irs 2012 tax return The tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Irs 2012 tax return Vans, pickup trucks, panel trucks, and similar trucks generally are not subject to this tax. Irs 2012 tax return Note. Irs 2012 tax return A Spanish version (Formulario 2290(SP)) is also available. Irs 2012 tax return See How To Get Tax Help in chapter 17. Irs 2012 tax return Registration of vehicles. Irs 2012 tax return   Generally, you must prove that you paid your heavy highway vehicle use tax to register your taxable vehicle with your state motor vehicle department or to enter the United States in a Canadian or Mexican registered taxable vehicle. Irs 2012 tax return Generally, a copy of Schedule 1 (Form 2290) is stamped by the IRS and returned to you as proof of payment. Irs 2012 tax return    If you have questions on Form 2290, see its separate instructions, or you can call the Form 2290 call site at 1-866-699-4096 (toll free) from the United States, and 1-859-669-5733 (not toll free) from Canada and Mexico. Irs 2012 tax return The hours of service are 8:00 a. Irs 2012 tax return m. Irs 2012 tax return to 6:00 p. Irs 2012 tax return m. Irs 2012 tax return Eastern time. Irs 2012 tax return Wagering tax and occupational tax. Irs 2012 tax return   The information on wagering tax can be found in the instructions for Form 730, Tax on Wagering, and Form 11-C, Occupational Tax and Registration Return for Wagering. Irs 2012 tax return Prev  Up  Next   Home   More Online Publications