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My1040ez Com

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My1040ez Com

My1040ez com Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. My1040ez com Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. My1040ez com Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. My1040ez com Any forgiven tax liability owed to the IRS will not have to be paid. My1040ez com Any forgiven tax liability that has already been paid will be refunded. My1040ez com (See Refund of Taxes Paid, later. My1040ez com ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. My1040ez com Then read Amount of Tax Forgiven. My1040ez com Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. My1040ez com Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. My1040ez com See Minimum Amount of Relief later under Amount of Tax Forgiven. My1040ez com Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. My1040ez com Oklahoma City attack. My1040ez com   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. My1040ez com Example 1. My1040ez com A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. My1040ez com His income tax is forgiven for 1994 and 1995. My1040ez com Example 2. My1040ez com A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. My1040ez com She subsequently died of her wounds in 1996. My1040ez com Her income tax is forgiven for 1994, 1995, and 1996. My1040ez com September 11 attacks and anthrax attacks. My1040ez com   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. My1040ez com Example 1. My1040ez com A Pentagon employee died in the September 11 attack. My1040ez com Her income tax is forgiven for 2000 and 2001. My1040ez com Example 2. My1040ez com A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. My1040ez com His income tax liability is forgiven for 2000, 2001, and 2002. My1040ez com Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. My1040ez com On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. My1040ez com To figure the tax to be forgiven, use the following worksheets. My1040ez com Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). My1040ez com Use Worksheet B for any eligible year the decedent filed a joint return. My1040ez com See the illustrated Worksheet B near the end of this publication. My1040ez com Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. My1040ez com Instead, complete Worksheet C and file a return for the decedent's last tax year. My1040ez com See Minimum Amount of Relief, later. My1040ez com If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. My1040ez com In English–7 a. My1040ez com m. My1040ez com to 10 p. My1040ez com m. My1040ez com local time. My1040ez com In Spanish–8 a. My1040ez com m. My1040ez com to 9:30 p. My1040ez com m. My1040ez com local time. My1040ez com Both spouses died. My1040ez com   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. My1040ez com Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). My1040ez com If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. My1040ez com However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. My1040ez com The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. My1040ez com Residents of community property states. My1040ez com   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. My1040ez com Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. My1040ez com Worksheet B. My1040ez com Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. My1040ez com 1       2 Enter the decedent's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 2       3 Enter the decedent's total tax. My1040ez com See the instructions. My1040ez com 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. My1040ez com See the instructions. My1040ez com 4       5 Subtract line 4 from line 3. My1040ez com 5       6 Enter the surviving spouse's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 6       7 Enter the surviving spouse's total tax. My1040ez com See the instructions. My1040ez com 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. My1040ez com 8       9 Subtract line 8 from line 7. My1040ez com 9       10 Add lines 5 and 9. My1040ez com 10       11 Enter the total tax from the joint return. My1040ez com See Table 1 on page 5 for the line number for years before 2002. My1040ez com 11       12 Add lines 4 and 8. My1040ez com 12       13 Subtract line 12 from line 11. My1040ez com 13       14 Divide line 5 by line 10. My1040ez com Enter the result as a decimal. My1040ez com 14       15 Tax to be forgiven. My1040ez com Multiply line 13 by line 14 and enter the result. My1040ez com 15       Note. My1040ez com If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. My1040ez com Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. My1040ez com If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. My1040ez com The IRS will determine the amount to be refunded. My1040ez com Worksheet B. My1040ez com Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. My1040ez com 1       2 Enter the decedent's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 2       3 Enter the decedent's total tax. My1040ez com See the instructions. My1040ez com 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. My1040ez com See the instructions. My1040ez com 4       5 Subtract line 4 from line 3. My1040ez com 5       6 Enter the surviving spouse's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 6       7 Enter the surviving spouse's total tax. My1040ez com See the instructions. My1040ez com 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. My1040ez com 8       9 Subtract line 8 from line 7. My1040ez com 9       10 Add lines 5 and 9. My1040ez com 10       11 Enter the total tax from the joint return. My1040ez com See Table 1 on page 5 for the line number for years before 2002. My1040ez com 11       12 Add lines 4 and 8. My1040ez com 12       13 Subtract line 12 from line 11. My1040ez com 13       14 Divide line 5 by line 10. My1040ez com Enter the result as a decimal. My1040ez com 14       15 Tax to be forgiven. My1040ez com Multiply line 13 by line 14 and enter the result. My1040ez com 15       Note. My1040ez com If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. My1040ez com Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. My1040ez com If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. My1040ez com The IRS will determine the amount to be refunded. My1040ez com Instructions for Worksheet B Table 1. My1040ez com Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. My1040ez com * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. My1040ez com ** File Form 4506 to get a transcript of the decedent's account. My1040ez com Table 1. My1040ez com Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. My1040ez com * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. My1040ez com ** File Form 4506 to get a transcript of the decedent's account. My1040ez com Lines 2 and 6. My1040ez com   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. My1040ez com   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. My1040ez com Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. My1040ez com Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. My1040ez com   Allocate business deductions to the owner of the business. My1040ez com Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. My1040ez com Lines 3 and 7. My1040ez com   Figure the total tax as if a separate return had been filed. My1040ez com The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. My1040ez com When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. My1040ez com   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. My1040ez com If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. My1040ez com Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. My1040ez com Line 4. My1040ez com   Enter the total, if any, of the following taxes. My1040ez com Self-employment tax. My1040ez com Social security and Medicare tax on tip income not reported to employer. My1040ez com Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). My1040ez com Tax on excess accumulation in qualified retirement plans. My1040ez com Household employment taxes. My1040ez com Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. My1040ez com Tax on golden parachute payments. My1040ez com Minimum Amount of Relief The minimum amount of relief is $10,000. My1040ez com If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. My1040ez com The IRS will refund the difference as explained under Refund of Taxes Paid. My1040ez com Use Worksheet C to figure the additional tax payment. My1040ez com But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. My1040ez com Example 1. My1040ez com An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. My1040ez com The $6,400 is eligible for forgiveness. My1040ez com The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. My1040ez com Example 2. My1040ez com A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. My1040ez com The IRS will treat $10,000 as a tax payment for 2001. My1040ez com Income received after date of death. My1040ez com   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. My1040ez com Examples are the final paycheck or dividends on stock owned by the decedent. My1040ez com However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). My1040ez com Nonqualifying income. My1040ez com   The following income is not exempt from tax. My1040ez com The tax on it is not eligible for forgiveness. My1040ez com Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. My1040ez com Amounts that would not have been payable but for an action taken after September 11, 2001. My1040ez com The following are examples of nonqualifying income. My1040ez com Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. My1040ez com Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. My1040ez com Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. My1040ez com Interest on savings bonds cashed by the beneficiary of the decedent. My1040ez com If you are responsible for the estate of a decedent, see Publication 559. My1040ez com Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. My1040ez com Instructions for lines 2–9 of Worksheet C. My1040ez com   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. My1040ez com To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. My1040ez com Or, if special requirements are met, you can use the alternative computation instead. My1040ez com See Alternative computation, later. My1040ez com   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. My1040ez com Use Form 1041 to figure what the taxable income would be without including the exempt income. My1040ez com Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). My1040ez com Alternative computation. My1040ez com   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. My1040ez com You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. My1040ez com The estate claimed an income distribution deduction on line 18 (Form 1041). My1040ez com Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. My1040ez com If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. My1040ez com If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. My1040ez com Complete the rest of Worksheet C to determine the additional payment allowed. My1040ez com Worksheet C. My1040ez com Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. My1040ez com Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. My1040ez com 1 Minimum relief amount. My1040ez com Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. My1040ez com 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . My1040ez com 3       4 Add lines 2 and 3. My1040ez com 4       5 Enter exempt income received after death minus expenses allocable to exempt income. My1040ez com (See Income received after date of death on page 5. My1040ez com ) 5       6 Add lines 4 and 5. My1040ez com 6       7 Figure the tax on line 6 using Schedule G (Form 1041). My1040ez com 7       8 Figure the tax on line 4 using Schedule G (Form 1041). My1040ez com 8       9 Tax on exempt income. My1040ez com Subtract line 8 from line 7. My1040ez com 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. My1040ez com If the decedent was not required to file tax returns for the eligible tax years, enter -0-. My1040ez com 10       11 Add lines 9 and 10. My1040ez com 11   12 Additional payment allowed. My1040ez com If line 11 is $10,000 or more, enter -0- and stop here. My1040ez com No additional amount is allowed as a tax payment. My1040ez com Otherwise, subtract line 11 from line 1 and enter the result. My1040ez com 12   Note. My1040ez com The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). My1040ez com Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. My1040ez com If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. My1040ez com Write "Sec. My1040ez com 692(d)(2) Payment" and the amount to the right of the entry space. My1040ez com Also indicate whether a Form 1041 is being filed for the decedent's estate. My1040ez com If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). My1040ez com Write “Sec. My1040ez com 692(d)(2) Payment” on the dotted line to the left of the entry space. My1040ez com Worksheet C. My1040ez com Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. My1040ez com Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. My1040ez com 1 Minimum relief amount. My1040ez com Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. My1040ez com 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . My1040ez com 3       4 Add lines 2 and 3. My1040ez com 4       5 Enter exempt income received after death minus expenses allocable to exempt income. My1040ez com (See Income received after date of death on page 5. My1040ez com ) 5       6 Add lines 4 and 5. My1040ez com 6       7 Figure the tax on line 6 using Schedule G (Form 1041). My1040ez com 7       8 Figure the tax on line 4 using Schedule G (Form 1041). My1040ez com 8       9 Tax on exempt income. My1040ez com Subtract line 8 from line 7. My1040ez com 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. My1040ez com If the decedent was not required to file tax returns for the eligible tax years, enter -0-. My1040ez com 10       11 Add lines 9 and 10. My1040ez com 11   12 Additional payment allowed. My1040ez com If line 11 is $10,000 or more, enter -0- and stop here. My1040ez com No additional amount is allowed as a tax payment. My1040ez com Otherwise, subtract line 11 from line 1 and enter the result. My1040ez com 12   Note. My1040ez com The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). My1040ez com Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. My1040ez com If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. My1040ez com Write "Sec. My1040ez com 692(d)(2) Payment" and the amount to the right of the entry space. My1040ez com Also indicate whether a Form 1041 is being filed for the decedent's estate. My1040ez com If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). My1040ez com Write “Sec. My1040ez com 692(d)(2) Payment” on the dotted line to the left of the entry space. My1040ez com Worksheet D. My1040ez com Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. My1040ez com (See Income received after date of death on page 5. My1040ez com ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). My1040ez com 4   5 Figure the tax on line 1 using Schedule G (Form 1041). My1040ez com 5   6 Estate's tax on exempt income. My1040ez com Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. My1040ez com Figure the total tax that would have been payable by all beneficiaries. My1040ez com Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. My1040ez com Add the amounts by which each beneficiary's income tax is increased. My1040ez com 7   8 Add lines 6 and 7. My1040ez com Enter this amount on line 9 of Worksheet C. My1040ez com 8   Worksheet D. My1040ez com Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. My1040ez com (See Income received after date of death on page 5. My1040ez com ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). My1040ez com 4   5 Figure the tax on line 1 using Schedule G (Form 1041). My1040ez com 5   6 Estate's tax on exempt income. My1040ez com Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. My1040ez com Figure the total tax that would have been payable by all beneficiaries. My1040ez com Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. My1040ez com Add the amounts by which each beneficiary's income tax is increased. My1040ez com 7   8 Add lines 6 and 7. My1040ez com Enter this amount on line 9 of Worksheet C. My1040ez com 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. My1040ez com Income tax liabilities that have been paid. My1040ez com Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. My1040ez com See Minimum Amount of Relief, earlier. My1040ez com Example 1. My1040ez com A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. My1040ez com The total, $14,000, is eligible for tax forgiveness. My1040ez com However, he paid only $13,000 of that amount. My1040ez com The IRS will refund the $13,000 paid. My1040ez com Example 2. My1040ez com A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. My1040ez com The child qualifies for the minimum relief of $10,000. My1040ez com The $10,000 is treated as a tax payment for 2001 and will be refunded. My1040ez com Period for filing a claim for credit or refund. My1040ez com   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. My1040ez com For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. My1040ez com To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. My1040ez com Extension of time for victims of Oklahoma City attack. My1040ez com   The period described above has been extended for victims of the Oklahoma City attack. My1040ez com Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. My1040ez com How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. My1040ez com Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. My1040ez com Return required but not yet filed. My1040ez com   File Form 1040 if the decedent was a U. My1040ez com S. My1040ez com citizen or resident. My1040ez com File Form 1040NR if the decedent was a nonresident alien. My1040ez com A nonresident alien is someone who is not a U. My1040ez com S. My1040ez com citizen or resident. My1040ez com Return required and already filed. My1040ez com   File a separate Form 1040X for each year you are claiming tax relief. My1040ez com Return not required and not filed. My1040ez com   File Form 1040 only for the year of death if the decedent was a U. My1040ez com S. My1040ez com citizen or resident. My1040ez com File Form 1040NR if the decedent was a nonresident alien. My1040ez com Return not required but already filed. My1040ez com   File Form 1040X only for the year of death. My1040ez com How to complete the returns. My1040ez com   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. My1040ez com Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. My1040ez com If filing Form 1040 or Form 1040NR, also attach any Forms W–2. My1040ez com If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. My1040ez com Also, please write one of the following across the top of page 1 of each return. My1040ez com KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. My1040ez com ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. My1040ez com If you need a copy, use Form 4506. My1040ez com The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. My1040ez com Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. My1040ez com Send Form 4506 to the address shown in the form instructions. My1040ez com Taxpayer identification number. My1040ez com   A taxpayer identification number must be furnished on the decedent's returns. My1040ez com This is usually the decedent's social security number (SSN). My1040ez com However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). My1040ez com If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. My1040ez com S. My1040ez com income tax return for any tax year, do not apply for an ITIN. My1040ez com You may claim a refund by filing Form 1040NR without an SSN or ITIN. My1040ez com Necessary Documents Please attach the following documents to the return or amended return. My1040ez com Proof of death. My1040ez com   Attach a copy of the death certificate. My1040ez com If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. My1040ez com Form 1310. My1040ez com   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. My1040ez com You are a surviving spouse filing an original or amended joint return with the decedent. My1040ez com You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. My1040ez com A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. My1040ez com A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. My1040ez com      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. My1040ez com Include a statement saying an amended return will be filed as soon as the necessary tax information is available. My1040ez com Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. My1040ez com Use one of the addresses shown below. My1040ez com Where you file the returns or claims depends on whether you use the U. My1040ez com S. My1040ez com Postal Service or a private delivery service. My1040ez com Please do not send these returns or claims to any of the addresses shown in the tax form instructions. My1040ez com U. My1040ez com S. My1040ez com Postal Service. My1040ez com   If you use the U. My1040ez com S. My1040ez com Postal Service, file these returns and claims at the following address. My1040ez com Internal Revenue Service P. My1040ez com O. My1040ez com Box 4053 Woburn, MA 01888 Private delivery service. My1040ez com   Private delivery services cannot deliver items to P. My1040ez com O. My1040ez com boxes. My1040ez com If you use a private delivery service, file these returns and claims at the following address. My1040ez com Internal Revenue Service Stop 661 310 Lowell St. My1040ez com Andover, MA 01810 Designated private delivery services. My1040ez com   You can use the following private delivery services to file these returns and claims. My1040ez com Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. My1040ez com DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. My1040ez com Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. My1040ez com United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. My1040ez com M. My1040ez com , UPS Worldwide Express Plus, and UPS Worldwide Express. My1040ez com The private delivery service can tell you how to get written proof of the mailing date. My1040ez com Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. My1040ez com September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. My1040ez com Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. My1040ez com These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). My1040ez com No withholding applies to these payments. My1040ez com Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. My1040ez com Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. My1040ez com Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. My1040ez com (A personal residence can be a rented residence or one you own. My1040ez com ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. My1040ez com Qualified disaster relief payments also include the following. My1040ez com Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. My1040ez com Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. My1040ez com Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. My1040ez com Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. My1040ez com Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. My1040ez com Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. My1040ez com However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. My1040ez com If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. My1040ez com For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. My1040ez com If that period has expired, you are granted an extension. My1040ez com You have until January 22, 2003, to file Form 1040X to exclude the death benefits. My1040ez com On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. My1040ez com 102(b)(2). My1040ez com ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. My1040ez com The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. My1040ez com Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. My1040ez com Bureau of Justice Assistance payments. My1040ez com   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. My1040ez com Government plan annuity. My1040ez com   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. My1040ez com This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. My1040ez com For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. My1040ez com More information. My1040ez com   For more information, see Publication 559. My1040ez com Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. My1040ez com The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. My1040ez com If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). My1040ez com Affected taxpayers. My1040ez com   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. My1040ez com Any individual whose main home is located in a covered area (defined later). My1040ez com Any business entity or sole proprietor whose principal place of business is located in a covered area. My1040ez com Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. My1040ez com The main home or principal place of business does not have to be located in the covered area. My1040ez com Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. My1040ez com Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. My1040ez com The spouse on a joint return with a taxpayer who is eligible for postponements. My1040ez com Any other person determined by the IRS to be affected by a terrorist attack. My1040ez com Covered area. My1040ez com   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. My1040ez com Abatement of interest. My1040ez com   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. My1040ez com Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. My1040ez com You must make this choice to deduct your loss on your 2000 return by the later of the following dates. My1040ez com The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). My1040ez com The due date (with extensions) for the 2000 return. My1040ez com For more information about disaster area losses, see Publication 547. My1040ez com Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. My1040ez com The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. My1040ez com The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. My1040ez com These credits may reduce or eliminate the estate tax due. My1040ez com A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. My1040ez com Recovery from the September 11th Victim Compensation Fund. My1040ez com   The value of claims for a decedent's pain and suffering is normally included in the gross estate. My1040ez com However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. My1040ez com Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. My1040ez com Which estates must file a return. My1040ez com   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. My1040ez com S. My1040ez com citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. My1040ez com Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. My1040ez com Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. My1040ez com S. My1040ez com Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. My1040ez com Where to file. My1040ez com   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. My1040ez com Internal Revenue Service E & G Department/Stop 824T 201 W. My1040ez com Rivercenter Blvd. My1040ez com Covington, KY 41011 More information. My1040ez com   For more information on the federal estate tax, see the instructions for Form 706. My1040ez com Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. My1040ez com The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. My1040ez com However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. My1040ez com For information about these requirements, see Internal Revenue Code section 5891. My1040ez com Worksheet B Illustrated. My1040ez com Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. My1040ez com 1 2000 2001   2 Enter the decedent's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 2 $17,259 $14,295   3 Enter the decedent's total tax. My1040ez com See the instructions. My1040ez com 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. My1040ez com See the instructions. My1040ez com 4 3,532 3,109   5 Subtract line 4 from line 3. My1040ez com 5 2,591 2,141   6 Enter the surviving spouse's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions for line 2. My1040ez com 6 29,025 29,850   7 Enter the surviving spouse's total tax. My1040ez com See the instructions. My1040ez com 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. My1040ez com 8 0 0   9 Subtract line 8 from line 7. My1040ez com 9 5,277 5,391   10 Add lines 5 and 9. My1040ez com 10 7,868 7,532   11 Enter the total tax from the joint return. My1040ez com See Table 1 on page 5 for the line number for years before 2002. My1040ez com 11 10,789 9,728   12 Add lines 4 and 8. My1040ez com 12 3,532 3,109   13 Subtract line 12 from line 11. My1040ez com 13 7,257 6,619   14 Divide line 5 by line 10. My1040ez com Enter the result as a decimal. My1040ez com 14 . My1040ez com 329 . My1040ez com 284   15 Tax to be forgiven. My1040ez com Multiply line 13 by line 14 and enter the result. My1040ez com 15 $2,388 $1,880   Note. My1040ez com If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. My1040ez com Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. My1040ez com If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. My1040ez com The IRS will determine the amount to be refunded. My1040ez com Worksheet B Illustrated. My1040ez com Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. My1040ez com 1 2000 2001   2 Enter the decedent's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 2 $17,259 $14,295   3 Enter the decedent's total tax. My1040ez com See the instructions. My1040ez com 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. My1040ez com See the instructions. My1040ez com 4 3,532 3,109   5 Subtract line 4 from line 3. My1040ez com 5 2,591 2,141   6 Enter the surviving spouse's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions for line 2. My1040ez com 6 29,025 29,850   7 Enter the surviving spouse's total tax. My1040ez com See the instructions. My1040ez com 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. My1040ez com 8 0 0   9 Subtract line 8 from line 7. My1040ez com 9 5,277 5,391   10 Add lines 5 and 9. My1040ez com 10 7,868 7,532   11 Enter the total tax from the joint return. My1040ez com See Table 1 on page 5 for the line number for years before 2002. My1040ez com 11 10,789 9,728   12 Add lines 4 and 8. My1040ez com 12 3,532 3,109   13 Subtract line 12 from line 11. My1040ez com 13 7,257 6,619   14 Divide line 5 by line 10. My1040ez com Enter the result as a decimal. My1040ez com 14 . My1040ez com 329 . My1040ez com 284   15 Tax to be forgiven. My1040ez com Multiply line 13 by line 14 and enter the result. My1040ez com 15 $2,388 $1,880   Note. My1040ez com If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. My1040ez com Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. My1040ez com If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. My1040ez com The IRS will determine the amount to be refunded. My1040ez com Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. My1040ez com They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. My1040ez com The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. My1040ez com After the husband died, his estate received income of $4,000. My1040ez com Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. My1040ez com This net profit is exempt from income tax as explained earlier under Income received after date of death. My1040ez com The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. My1040ez com To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. My1040ez com She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. My1040ez com To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. My1040ez com To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. My1040ez com   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. My1040ez com Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. My1040ez com Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. My1040ez com 1 Minimum relief amount. My1040ez com Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. My1040ez com 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . My1040ez com 3 0     4 Add lines 2 and 3. My1040ez com 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. My1040ez com (See Income received after date of death on page 5. My1040ez com ) 5 1,000     6 Add lines 4 and 5. My1040ez com 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). My1040ez com 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). My1040ez com 8 435     9 Tax on exempt income. My1040ez com Subtract line 8 from line 7. My1040ez com 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. My1040ez com If the decedent was not required to file tax returns for the eligible tax years, enter -0-. My1040ez com 10 4,268     11 Add lines 9 and 10. My1040ez com 11 $4,543 12 Additional payment allowed. My1040ez com If line 11 is $10,000 or more, enter -0- and stop here. My1040ez com No additional amount is allowed as a tax payment. My1040ez com Otherwise, subtract line 11 from line 1 and enter the result. My1040ez com 12 $5,457 Note. My1040ez com The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). My1040ez com Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. My1040ez com If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. My1040ez com Write "Sec. My1040ez com 692(d)(2) Payment" and the amount to the right of the entry space. My1040ez com Also indicate whether a Form 1041 is being filed for the decedent's estate. My1040ez com If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). My1040ez com Write “Sec. My1040ez com 692(d)(2) Payment” on the dotted line to the left of the entry space. My1040ez com Worksheet C Illustrated. My1040ez com Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. My1040ez com Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. My1040ez com 1 Minimum relief amount. My1040ez com Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. My1040ez com 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . My1040ez com 3 0     4 Add lines 2 and 3. My1040ez com 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. My1040ez com (See Income received after date of death on page 5. My1040ez com ) 5 1,000     6 Add lines 4 and 5. My1040ez com 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). My1040ez com 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). My1040ez com 8 435     9 Tax on exempt income. My1040ez com Subtract line 8 from line 7. My1040ez com 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. My1040ez com If the decedent was not required to file tax returns for the eligible tax years, enter -0-. My1040ez com 10 4,268     11 Add lines 9 and 10. My1040ez com 11 $4,543 12 Additional payment allowed. My1040ez com If line 11 is $10,000 or more, enter -0- and stop here. My1040ez com No additional amount is allowed as a tax payment. My1040ez com Otherwise, subtract line 11 from line 1 and enter the result. My1040ez com 12 $5,457 Note. My1040ez com The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). My1040ez com Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. My1040ez com If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. My1040ez com Write "Sec. My1040ez com 692(d)(2) Payment" and the amount to the right of the entry space. My1040ez com Also indicate whether a Form 1041 is being filed for the decedent's estate. My1040ez com If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). My1040ez com Write “Sec. My1040ez com 692(d)(2) Payment” on the dotted line to the left of the entry space. My1040ez com Additional Worksheets The following additional worksheets are provided for your convenience. My1040ez com Worksheet A. My1040ez com Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. My1040ez com 1       2 Enter the total tax from the decedent's income tax return. My1040ez com See Table 1 on page 5 for the line number for years before 2002. My1040ez com 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. My1040ez com (These taxes are not eligible for forgiveness. My1040ez com )           a Self-employment tax. My1040ez com 3a         b Social security and Medicare tax on tip income not reported to employer. My1040ez com 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). My1040ez com 3c         d Tax on excess accumulation in qualified retirement plans. My1040ez com 3d         e Household employment taxes. My1040ez com 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. My1040ez com 3f         g Tax on golden parachute payments. My1040ez com 3g       4 Add lines 3a through 3g. My1040ez com 4       5 Tax to be forgiven. My1040ez com Subtract line 4 from line 2. My1040ez com 5       Note. My1040ez com If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. My1040ez com Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. My1040ez com If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. My1040ez com The IRS will determine the amount to be refunded. My1040ez com Worksheet A. My1040ez com Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. My1040ez com 1       2 Enter the total tax from the decedent's income tax return. My1040ez com See Table 1 on page 5 for the line number for years before 2002. My1040ez com 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. My1040ez com (These taxes are not eligible for forgiveness. My1040ez com )           a Self-employment tax. My1040ez com 3a         b Social security and Medicare tax on tip income not reported to employer. My1040ez com 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). My1040ez com 3c         d Tax on excess accumulation in qualified retirement plans. My1040ez com 3d         e Household employment taxes. My1040ez com 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. My1040ez com 3f         g Tax on golden parachute payments. My1040ez com 3g       4 Add lines 3a through 3g. My1040ez com 4       5 Tax to be forgiven. My1040ez com Subtract line 4 from line 2. My1040ez com 5       Note. My1040ez com If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. My1040ez com Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. My1040ez com If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. My1040ez com The IRS will determine the amount to be refunded. My1040ez com Worksheet B. My1040ez com Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. My1040ez com 1       2 Enter the decedent's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 2       3 Enter the decedent's total tax. My1040ez com See the instructions. My1040ez com 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. My1040ez com See the instructions. My1040ez com 4       5 Subtract line 4 from line 3. My1040ez com 5       6 Enter the surviving spouse's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 6       7 Enter the surviving spouse's total tax. My1040ez com See the instructions. My1040ez com 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. My1040ez com 8       9 Subtract line 8 from line 7. My1040ez com 9       10 Add lines 5 and 9. My1040ez com 10       11 Enter the total tax from the joint return. My1040ez com See Table 1 on page 5 for the line number for years before 2002. My1040ez com 11       12 Add lines 4 and 8. My1040ez com 12       13 Subtract line 12 from line 11. My1040ez com 13       14 Divide line 5 by line 10. My1040ez com Enter the result as a decimal. My1040ez com 14       15 Tax to be forgiven. My1040ez com Multiply line 13 by line 14 and enter the result. My1040ez com 15       Note. My1040ez com If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. My1040ez com Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. My1040ez com If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. My1040ez com The IRS will determine the amount to be refunded. My1040ez com Worksheet B. My1040ez com Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. My1040ez com 1       2 Enter the decedent's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 2       3 Enter the decedent's total tax. My1040ez com See the instructions. My1040ez com 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. My1040ez com See the instructions. My1040ez com 4       5 Subtract line 4 from line 3. My1040ez com 5       6 Enter the surviving spouse's taxable income. My1040ez com Figure taxable income as if a separate return had been filed. My1040ez com See the instructions. My1040ez com 6       7 Enter the surviving spouse's total tax. My1040ez com See the instructions. My1040ez com 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. My1040ez com 8       9 Subtract line 8 from line 7. My1040ez com 9       10 Add lines 5 and 9. My1040ez com 10       11 Enter the total tax from the joint return. My1040ez com See Table 1 on page 5 for the line number for years before 2002. My1040ez com 11       12 Add lines 4 and 8. My1040ez com 12       13 Subtract line 12 from line 11. My1040ez com 13       14 Divide line 5 by line 10. My1040ez com Enter the result as a decimal. My1040ez com 14       15 Tax to be forgiven. My1040ez com Multiply line 13 by line 14 and enter the result. My1040ez com 15       Note. My1040ez com If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. My1040ez com Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. My1040ez com If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. My1040ez com The IRS will determine the amount to be refunded. My1040ez com Worksheet C. My1040ez com Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. My1040ez com Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. My1040ez com 1 Minimum tax forgiveness. My1040ez com Note. My1040ez com Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. My1040ez com 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . My1040ez com 3       4 Add lines 2 and 3. My1040ez com 4       5 Enter exempt income received after death minus expenses allocable to exempt income. My1040ez com (See Income received after date of death on page 5. My1040ez com ) 5       6 Add lines 4 and 5. My1040ez com 6       7 Figure the tax on line 6 using Schedule G (Form 1041). My1040ez com 7       8 Figure the tax on line 4 using Schedule G (Form 1041). My1040ez com 8       9 Tax on exempt income. My1040ez com Subtract line 8 from line 7. My1040ez com 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. My1040ez com If the decedent was not required to file tax returns for the eligible tax years, enter -0-. My1040ez com 10       11 Add lines 9 and 10. My1040ez com 11   12 Additional payment allowed. My1040ez com If line 11 is $10,000 or more, enter -0- and stop here. My1040ez com No additional amount is allowed as a tax payment. My1040ez com Otherwise, subtract line 11 from line 1 and enter the result. My1040ez com 12   Note. My1040ez com The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). My1040ez com Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. My1040ez com If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. My1040ez com Write "Sec. My1040ez com 692(d)(2) Payment" and the amount to the right of the entry space. My1040ez com Also indicate whether a Form 1041 is being filed for the decedent's estate. My1040ez com If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). My1040ez com Write “Sec. My1040ez com 692(d)(2) Payment” on the dotted line to the left of the entry space. My1040ez com Worksheet C. My1040ez com Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. My1040ez com Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. My1040ez com 1 Minimum tax forgiveness. My1040ez com Note. My1040ez com Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. My1040ez com 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . My1040ez com 3       4 Add lines 2 and 3. My1040ez com 4       5 Enter exempt income received after death minus expenses allocable to exempt income. My1040ez com (See Income received after date of death on page 5. My1040ez com ) 5       6 Add lines 4 and 5. My1040ez com 6       7 Figure the tax on line 6 using Schedule G (Form 1041). My1040ez com 7       8 Figure the tax on line 4 using Schedule G (Form 1041). My1040ez com 8       9 Tax on exempt income. My1040ez com Subtract line 8 from line 7. My1040ez com 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. My1040ez com If the decedent was not required to file tax returns for the eligible tax years, enter -0-. My1040ez com 10       11 Add lines 9 and 10. My1040ez com 11   12 Additional payment allowed. My1040ez com If line 11 is $10,000 or more, enter -0- and stop here. My1040ez com No additional amount is allowed as a tax payment. My1040ez com Otherwise, subtract line 11 from line 1 and enter the result. My1040ez com 12   Note. My1040ez com The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). My1040ez com Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. My1040ez com If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. My1040ez com Write "Sec. My1040ez com 692(d)(2) Payment" and the amount to the right of the entry space. My1040ez com Also indicate whether a Form 1041 is being filed for the decedent's estate. My1040ez com If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). My1040ez com Write “Sec. My1040ez com 692(d)(2) Payment” on the dotted line to the left of the entry space. My1040ez com How To Get Tax Help Special IRS assistance. My1040ez com   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. My1040ez com We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. My1040ez com Call 1–866–562–5227 Monday through Friday In English–7 a. My1040ez com m. My1040ez com to 10 p. My1040ez com m. My1040ez com local time In Spanish–8 a. My1040ez com m. My1040ez com to 9:30 p. My1040ez com m. My1040ez com local time   The IRS web site at www. My1040ez com irs. My1040ez com gov has notices and other tax relief information. My1040ez com Check it periodically for any new guidance or to see if Congress has enacted new legislation. My1040ez com   Business taxpayers affected by the attacks can e-mail their questions to corp. My1040ez com disaster. My1040ez com relief@irs. My1040ez com gov. My1040ez com   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. My1040ez com fema. My1040ez com gov. My1040ez com Other help from the IRS. My1040ez com   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. My1040ez com By selecting the method that is best for you, you will have quick and easy access to tax help. My1040ez com Contacting your Taxpayer Advocate. My1040ez com   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. My1040ez com   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. My1040ez com While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. My1040ez com   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. My1040ez com Call the IRS at 1–800–829–1040. My1040ez com Call, write, or fax the Taxpayer Advocate office in your area. My1040ez com Call 1–800–829–4059 if you are a TTY/TDD user. My1040ez com   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. My1040ez com Free tax services. My1040ez com   To find out what services are available, get Publication 910, Guide to Free Tax Services. My1040ez com It contains a list of free tax publications and an index of tax topics. My1040ez com It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. My1040ez com Personal computer. My1040ez com With your personal computer and modem, you can access the IRS on the Internet at www. My1040ez com irs. My1040ez com gov. My1040ez com While visiting our web site, you can: Find answers to questions you may have. My1040ez com Download forms and publications or search for forms and pub
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The My1040ez Com

My1040ez com 2. My1040ez com   Filing Requirements and Required Disclosures Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Annual Information ReturnsSupporting Organization Annual Information Return Unrelated Business Income Tax ReturnEstimated tax. My1040ez com Employment Tax ReturnsException. My1040ez com FUTA tax exception. My1040ez com FICA tax exemption election. My1040ez com Revoking the election. My1040ez com Definitions. My1040ez com Effect on employees. My1040ez com Political Organization Income Tax ReturnExempt function. My1040ez com Political organization taxable income. My1040ez com Separate fund. My1040ez com Failure to file. My1040ez com Failure to pay on time. My1040ez com Reporting Requirements for a Political OrganizationForm 8871 Form 8872 Donee Information ReturnCharitable deduction property. My1040ez com Publicly traded securities. My1040ez com Exceptions. My1040ez com Form 8283. My1040ez com Information Provided to DonorsDisclosure of Quid Pro Quo Contributions Acknowledgment of Charitable Contributions of $250 or More Acknowledgment of Vehicle Contribution Qualified Intellectual Property Report of Cash Received Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting FormsAnnual Information Return Public Inspection of Exemption Application Political Organization Reporting Forms Required DisclosuresSolicitation of Nondeductible Contributions Sales of Information or Services Available Free From Government Dues Used for Lobbying or Political Activities Prohibited Tax Shelter Transactions Miscellaneous RulesOrganizational Changes and Exempt Status Introduction Most exempt organizations (including private foundations) must file various returns and reports at some time during (or following the close of) their accounting period. My1040ez com Topics - This chapter discusses: Annual information returns Unrelated business income tax return Employment tax returns Political organization income tax return Reporting requirements for a political organization Donee information return Information provided to donors Report of cash received Public inspection of exemption applications, annual returns, and political organizations reporting forms Required disclosures Miscellaneous rules Useful Items - You may want to see: Publication 15 Circular E, Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 598 Tax on Unrelated Business Income of Exempt Organizations Form (and Instructions) 941 Employer's Quarterly Federal Tax Return 990 Return of Organization Exempt From Income Tax 990-EZ Short Form Return of Organization Exempt From Income Tax Schedule A (Form 990 or 990-EZ) Public Charity Status and Public Support Schedule B (Form 990, 990-EZ, or 990-PF) Schedule of Contributors Schedule C (Form 990 or 990-EZ) Political Campaign and Lobbying Activities Schedule D (Form 990) Supplemental Financial Statements Schedule E (Form 990 or 990-EZ) Schools Schedule F (Form 990) Statement of Activities Outside the United States Schedule G (Form 990 or 990-EZ) Supplemental Information Regarding Fundraising or Gaming Activities Schedule H (Form 990) Hospitals Schedule I (Form 990) Grants and Other Assistance to Organizations, Governments, and Individuals in the United States Schedule J (Form 990) Compensation Information Schedule K (Form 990) Supplemental Information on Tax-Exempt Bonds Schedule L (Form 990 or 990-EZ) Transactions With Interested Persons Schedule M (Form 990) Noncash Contributions Schedule N (Form 990 or 990-EZ) Liquidation, Termination, Dissolution, or Significant Disposition of Assets Schedule O (Form 990 or 990-EZ) Supplemental Information to Form 990 Schedule R (Form 990) Related Organizations and Unrelated Partnerships 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation 990-BL Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons 990-T Exempt Organization Business Income Tax Return 990-W Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations 1120-POL U. My1040ez com S. My1040ez com Income Tax Return for Certain Political Organizations 4720 Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code 5768 Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation 6069 Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction 7004 Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes 8282 Donee Information Return 8300 Report of Cash Payments Over $10,000 Received in a Trade or Business 8453-X Political Organization Declaration for Electronic Filing of Notice of Section 527 Status 8822-B Change of Address-Business 8868 Application for Extension of Time to File an Exempt Organization Return 8870 Information Return for Transfers Associated with Certain Personal Benefits Contracts 8871 Political Organization Notice of Section 527 Status 8872 Political Organization Report of Contributions and Expenditures 8886-T Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction 8899 Notice of Income from Donated Intellectual Property 8940 Request for Miscellaneous Determination See chapter 6 for information about getting these publications and forms. My1040ez com Annual Information Returns Every organization exempt from federal income tax under section 501(a) must file an Annual Exempt Organization Return except: A church, an interchurch organization of local units of a church, a convention or association of churches, An integrated auxiliary of a church, A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs, A school below college level affiliated with a church or operated by a religious order, Church-affiliated mission societies if more than half of their activities are conducted in, or are directed at persons in, foreign countries, An exclusively religious activity of any religious order, A state institution, the income of which is excluded from gross income under section 115, A corporation described in section 501(c)(1) that is organized under an Act of Congress, an instrumentality of the United States, and is exempt from Federal income taxes, A stock bonus, pension, or profit-sharing trust that qualifies under section 401 (required to file Form 5500, Annual Return/Report of Employee Benefit Plan), A religious or apostolic organization described in section 501(d) (required to file Form 1065, U. My1040ez com S. My1040ez com Return of Partnership Income), A governmental unit or an affiliate of a governmental unit that meets the requirements of Revenue Procedure 95-48, 1995-2 C. My1040ez com B. My1040ez com 418, www. My1040ez com irs. My1040ez com gov/pub/irs-tege/rp1995-48. My1040ez com pdf, A private foundation described in section 501(c)(3) and exempt under section 501(a) (required to file Form 990-PF, Return of Private Foundation), A political organization that is a state or local committee of a political party, a political committee of a state or local candidate, a caucus or association of state or local officials, or required to report under the Federal Election Campaign Act of 1971 as a political committee, An exempt organization (other than a private foundation) that normally has annual gross receipts of $50,000 or less, or A foreign organization, or an organization located in a U. My1040ez com S. My1040ez com possession, that normally has annual gross receipts from sources within the United States of $50,000 or less. My1040ez com Supporting Organization Annual Information Return For tax years ending after August 17, 2006, all section 509(a)(3) supporting organizations are required to file Form 990 or 990-EZ with the IRS regardless of the organization's gross receipts, unless it qualifies as one of the following: An integrated auxiliary of a church; The exclusively religious activities of a religious order; or An organization, the gross receipts of which are normally not more than $5,000, that supports a section 509(a)(3) religious order. My1040ez com If the organization is described in item (3) above, then it must submit Form 990-N (e-Postcard) unless it voluntarily files Form 990 or 990-EZ. My1040ez com On its annual information return, at Part I, Schedule A (Form 990 or 990-EZ) a supporting organization must: List the section 509(a)(3) organizations to which it provides support, Indicate whether it is a Type I, Type II, or Type III supporting organization, and Certify that the organization is not controlled directly or indirectly by disqualified persons (other than by foundation managers and other than one or more publicly supported organizations). My1040ez com Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Small tax-exempt organizations with annual gross receipts normally $50,000 or less must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, with the IRS each year, if they choose not to file a Form 990 or 990-EZ. My1040ez com Form 990-N requires the following information: The organization's legal name, and mailing address; Any name under which it operates and does business; Its Internet website address (if any); Its taxpayer identification number; The name and address of a principal officer; Organization's annual tax period; Verification that the organization's annual gross receipts are normally $50,000 or less; and Notification if the organization has terminated. My1040ez com Form 990-N is due by the 15th day of the fifth month after the close of the tax year. My1040ez com For tax years beginning after December 31, 2006, any organization that fails to meet its annual reporting requirement for 3 consecutive years will automatically lose its tax-exempt status. My1040ez com To regain its exempt status an organization will have to reapply for recognition as a tax-exempt organization. My1040ez com Exceptions. My1040ez com   This filing requirement does not apply to: Churches, their integrated auxiliaries, and conventions or associations of churches; Organizations that are included in a group return; Private foundations required to file Form 990-PF; and Section 509(a)(3) supporting organizations required to file Form 990 or Form 990-EZ. My1040ez com Forms 990 and 990-EZ Exempt organizations, other than private foundations, must file their annual information returns on Form 990 or 990-EZ, unless excepted from filing or allowed to submit Form 990-N, described earlier. My1040ez com Generally, political organizations with gross receipts of $25,000 ($100,000 for a qualified state or local political organization (QSLPO)) or more for the tax year are required to file Form 990 or 990-EZ unless specifically excepted from filing the annual return. My1040ez com The following political organizations are not required to file Form 990 or Form 990-EZ. My1040ez com A state or local committee of a political party. My1040ez com A political committee of a state or local candidate. My1040ez com A caucus or association of state or local officials. My1040ez com A political organization that is required to report as a political committee under the Federal Election Campaign Act. My1040ez com A 501(c) organization that has expenditures for influencing or attempting to influence the selection, nomination, election, or appointment of any individual for a federal, state, or local public office. My1040ez com Form 990-EZ. My1040ez com   This is a shortened version of Form 990. My1040ez com It is designed for use by small exempt organizations and nonexempt charitable trusts. My1040ez com   Beginning in tax year 2010, an organization can file either Form 990 or 990-EZ if it meets the following: Its gross receipts during the year are less than $200,000. My1040ez com Its total assets (line 25, column (B) of Form 990-EZ) at the end of the year are less than $500,000. My1040ez com If your organization does not meet either of these conditions, you cannot file Form 990-EZ. My1040ez com Instead you must file Form 990. My1040ez com Group return. My1040ez com   A group return on Form 990 may be filed by a central, parent, or like organization for two or more local organizations, none of which is a private foundation. My1040ez com This return is in addition to the central organization's separate annual return if it must file a return. My1040ez com It cannot be included in the group return. My1040ez com See the instructions for Form 990 for the conditions under which this procedure may be used. My1040ez com    In any year that an organization is properly included as a subordinate organization on a group return, it should not file its own Form 990. My1040ez com Schedule A (Form 990 or 990-EZ). My1040ez com   Organizations, other than private foundations, that are described in section 501(c)(3) and that are otherwise required to file Form 990 or 990-EZ must also complete Schedule A of that form. My1040ez com Schedule B (Form 990, Form 990-EZ, or 990-PF). My1040ez com   Organizations that file Form 990 or 990-EZ use this schedule to provide required information regarding their contributors. My1040ez com Schedule O (Form 990). My1040ez com   Organizations that file Form 990 must use this schedule to provide required additional information or if additional space is needed. My1040ez com   Other schedules may be required to be filed with Form 990 or 990-EZ. My1040ez com See the instructions for Form 990 or the instructions for Form 990-EZ for more information. My1040ez com Report significant new or changed program services and changes to organizational documents. My1040ez com    An organization should report new significant program services or significant changes in how it conducts program services, and significant changes to its organizational documents, on its Form 990 rather than in a letter to EO Determinations. My1040ez com EO Determinations no longer issues letters confirming the tax-exempt status of organizations that report new services or significant changes, or changes to organizational documents. My1040ez com See Miscellaneous Rules, Organization Changes and Exempt Status, later. My1040ez com Form 990-PF All private foundations exempt under section 501(c)(3) must file Form 990-PF. My1040ez com These organizations are discussed in chapter 3. My1040ez com Electronic Filing You may be required to file Form 990, Form 990-EZ, or Form 990-PF, and related forms, schedules, and attachments electronically. My1040ez com If an organization is required to file a return electronically but does not, the organization is considered to have not filed its return. My1040ez com See Regulations section 301. My1040ez com 6033-4 for more information. My1040ez com The IRS may waive the requirement to file electronically in cases of undue hardship. My1040ez com For information on filing a waiver, see Notice 2010-13, 2010-4 I. My1040ez com R. My1040ez com B. My1040ez com 327, available at www. My1040ez com irs. My1040ez com gov/ir/2010-04_IRSB/ar14. My1040ez com html. My1040ez com Form 990. My1040ez com   An organization is required to file Form 990 electronically if it files at least 250 returns during the calendar year and has total assets of $10 million or more at the end of the tax year. My1040ez com Form 990-PF. My1040ez com   An organization is required to file Form 990-PF electronically if it files at least 250 returns during the calendar year. My1040ez com Due Date Forms 990, 990-EZ, or 990-PF must be filed by the 15th day of the fifth month after the end of your organization's accounting period. My1040ez com Thus, for a calendar year taxpayer, Forms 990, 990-EZ, or 990-PF is due May 15 of the following year. My1040ez com Extension of time to file. My1040ez com   Use Form 8868 to request an automatic 3-month extension of time to file Forms 990, 990-EZ, or 990-PF and also to apply for an additional (not automatic) 3-month extension if needed. My1040ez com   Do not apply for both the automatic 3-month extension and the additional 3-month extension at the same time. My1040ez com For more information, see Form 8868 and its instructions. My1040ez com   When filing Form 8868 for an automatic 3-month extension, neither a signature, nor an explanation is required. My1040ez com However, when filing Form 8868 for an additional 3-month extension, both a signature and an explanation are required. My1040ez com Application for exemption pending. My1040ez com   An organization that claims to be exempt under section 501(a) but has not established its exempt status by the due date for filing an information return must complete and file Form 990, 990-EZ, 990–N or 990-PF (if it considers itself a private foundation), unless the organization is exempt from Form 990-series filing requirements. My1040ez com If the organization's application is pending with the IRS, it must so indicate on Forms 990, 990-EZ, or 990-PF (whichever applies) by checking the application pending block at the top of page 1 of the return. My1040ez com For more information on the filing requirements, see the Instructions for Forms 990, 990-EZ, and 990-PF. My1040ez com State reporting requirements. My1040ez com   Copies of Forms 990, 990-EZ, or 990-PF may be used to satisfy state reporting requirements. My1040ez com See the instructions for those forms. My1040ez com Form 8870. My1040ez com   Organizations that filed a Form 990, 990-EZ, or 990-PF, and paid premiums or received transfers on certain life insurance, annuity, and endowment contracts (personal benefit contracts), must file Form 8870. My1040ez com For more information, see Form 8870 and the instructions for that form. My1040ez com Automatic Revocation If the organization fails to file a Form 990, 990-EZ, or 990-PF, or fails to submit a Form 990-N, as required, for 3 consecutive years, it will automatically lose its tax-exempt status by operation of law. My1040ez com The list of organizations whose tax-exempt status has been automatically revoked is available on IRS. My1040ez com gov. My1040ez com This list (Auto-Revocation List) may be viewed and searched on Exempt Organizations Select Check. My1040ez com The Auto-Revocation List includes each organization's name, Employer Identification Number (EIN) and last known address. My1040ez com It also includes the effective date of the automatic revocation and the date it was posted to the list. My1040ez com The IRS updates the list monthly to include additional organizations that lose their tax-exempt status. My1040ez com Tax Effect of Loss of Tax-Exempt Status If your organization’s tax-exempt status is automatically revoked, you may be required to file one of the following federal income tax returns and pay any applicable income taxes: Form 1120, U. My1040ez com S. My1040ez com Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of your organization’s tax year, or Form 1041, U. My1040ez com S. My1040ez com Income Tax Return for Estates and Trusts, due by the 15th day of the 4th month after the end of your organization’s tax year. My1040ez com In addition, a section 501(c)(3) organization that loses its tax-exempt status cannot receive tax-deductible contributions and will not be identified in the IRS Business Master File extract as eligible to received tax-deductible contributions, or be included in Exempt Organizations Select Check (Pub 78 database). My1040ez com An organization whose exemption was automatically revoked must apply for tax exemption in order to regain its tax exemption (even if it was not originally required to apply). My1040ez com In some situations, an organization may be able to obtain exemption retroactive to its date of revocation. My1040ez com For more information about automatic revocation, go to IRS. My1040ez com gov and select Charities & Non-Profits and then select Revoked? Reinstated? Learn More. My1040ez com Penalties Penalties for failure to file. My1040ez com   Generally, an exempt organization that fails to file a required return must pay a penalty of $20 a day for each day the failure continues. My1040ez com The same penalty will apply if the organization does not give all the information required on the return or does not give the correct information. My1040ez com Maximum penalty. My1040ez com   The maximum penalty for any one return is the smaller of $10,000 or 5% of the organization's gross receipts for the year. My1040ez com Organization with gross receipts over $1 million. My1040ez com   For an organization that has gross receipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000. My1040ez com Managers. My1040ez com   If the organization is subject to this penalty, the IRS may specify a date by which the return or correct information must be supplied by the organization. My1040ez com Failure to comply with this demand will result in a penalty imposed upon the manager of the organization, or upon any other person responsible for filing a correct return. My1040ez com The penalty is $10 a day for each day that a return is not filed after the period given for filing. My1040ez com The maximum penalty imposed on all persons with respect to any one return is $5,000. My1040ez com Exception for reasonable cause. My1040ez com   No penalty will be imposed if reasonable cause for failure to file timely can be shown. My1040ez com Unrelated Business Income Tax Return Even though your organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. My1040ez com Unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. My1040ez com If your organization has $1,000 or more of unrelated business income, you must file Form 990-T in addition to your required annual information return. My1040ez com Estimated tax. My1040ez com   Quarterly estimated tax payments are due if your organization expects to owe $500 or more in tax including unrelated business income. My1040ez com Use Form 990-W to figure your organization's estimated tax payments. My1040ez com Travel tour programs. My1040ez com   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose to which tax exemption was granted to the organization. My1040ez com   Whether travel tour activities conducted by an organization are substantially related to the organization's tax exempt purpose is determined by looking at all the relevant facts and circumstances, including, but not limited to, how a travel tour is developed, promoted, and operated. My1040ez com Example. My1040ez com ABC, a university alumni association, is tax exempt as an educational organization under section 501(c)(3). My1040ez com As part of its activities, ABC operates a travel tour program. My1040ez com The program is open to all current members of ABC and their guests. My1040ez com ABC works with travel agents to schedule approximately ten tours annually to various destinations around the world. My1040ez com Members of ABC pay $1,000 to XYZ Travel Agency to participate in a tour. My1040ez com XYZ pays ABC a per person fee for each participant. My1040ez com Although the literature advertising the tours encourages ABC members to continue their lifelong learning by joining the tours, and a faculty member of ABC's related university frequently joins the tour as a guest of the alumni association, none of the tours include any scheduled instruction or curriculum related to the destinations being visited. My1040ez com The travel tours made available to ABC's members do not contribute importantly to the accomplishment of ABC's educational purpose. My1040ez com Rather, ABC's program is designed to generate revenues for ABC by regularly offering its members travel services. My1040ez com Therefore, ABC's tour program is an unrelated trade or business. My1040ez com For additional information on unrelated business income, see Publication 598 and the Instructions for Form 990-T. My1040ez com Employment Tax Returns Every employer, including an organization exempt from federal income tax, who pays wages to employees is responsible for withholding, depositing, paying, and reporting federal income tax, social security and Medicare (FICA) taxes, and federal unemployment tax (FUTA), unless that employer is specifically excepted by law from those requirements, or if the taxes clearly do not apply. My1040ez com For more information, obtain a copy of Publication 15, which summarizes the responsibilities of an employer, Publication 15-A, Publication 15-B, and Form 941. My1040ez com Small Business Health Care Tax Credit. My1040ez com   If your small tax-exempt organization provides health care coverage for your workers you may qualify for the small business health care tax credit. My1040ez com Go to IRS. My1040ez com gov and select Affordable Care Act Tax Provisions for more details. My1040ez com See Small Business Health Care Tax Credit at www. My1040ez com irs. My1040ez com gov/newsroom/article/0,,id=223666,00. My1040ez com html. My1040ez com Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. My1040ez com   The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). My1040ez com The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer's share of social security tax. My1040ez com The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013. My1040ez com This tax credit was extended through December 31, 2013, under the American Taxpayer Relief Act, passed on January 1, 2013. My1040ez com   The credit can be as high as $6,240 for qualified tax-exempt organizations. My1040ez com The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. My1040ez com The amount of the credit for qualified tax-exempt organizations may not exceed the organization's employer social security tax for the period for which the credit is claimed. My1040ez com   All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit. My1040ez com The process for certifying veterans for this credit is the same for all employers. My1040ez com For more information, see Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit and the instructions to Form 8850. My1040ez com Notice 2012-13, 2012-9 I. My1040ez com R. My1040ez com B. My1040ez com 421, also provides additional guidance on submission Form 8850. My1040ez com   Organizations described in section 501(c) and exempt from taxation under section 501(a) may claim the credit for qualified veterans who begin work on or after Nov. My1040ez com 22, 2011, and before January 1, 2013. My1040ez com After the required certification is secured, tax-exempt employers claim the credit against the employer social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans, Form 5884-C. My1040ez com File Form 5884-C after filing the related employment tax return for the employment tax period for which the credit is claimed. My1040ez com It is recommended that qualified tax-exempt employers do not reduce their required deposits in anticipation of any credit as the forms are processed separately. My1040ez com In addition to Form 5884-C and its instructions, tax-exempt employers should see Notice 2012-13 and the Frequently Asked Questions & Answers for more details for claiming the credit. My1040ez com Trust fund recovery penalty. My1040ez com   If any person required to collect, truthfully account for, and pay over any of these taxes willfully fails to satisfy any of these requirements or willfully tries in any way to evade or defeat any of them, that person will be subject to a penalty. My1040ez com The penalty is equal to the tax evaded, not collected, or not accounted for and paid over. My1040ez com The term person includes: An officer or employee of a corporation, or A member or employee of a partnership. My1040ez com Exception. My1040ez com   The penalty is not imposed on any unpaid volunteer director or member of a board of trustees of an exempt organization if the unpaid volunteer serves solely in an honorary capacity, does not participate in the day-to-day or financial operations of the organization, and does not have actual knowledge of the failure on which the penalty is imposed. My1040ez com   This exception does not apply if it results in no one being liable for the penalty. My1040ez com FICA and FUTA tax exceptions. My1040ez com   Payments for services performed by a minister of a church in the exercise of the ministry, or a member of a religious order performing duties required by the order, are generally not subject to FICA or FUTA taxes. My1040ez com FUTA tax exception. My1040ez com   Payments for services performed by an employee of a religious, charitable, educational, or other organization described in section 501(c)(3) that are generally subject to FICA taxes if the payments are $100 or more for the year, are not subject to FUTA taxes. My1040ez com FICA tax exemption election. My1040ez com   Churches and qualified church-controlled organizations can elect exemption from employer FICA taxes by filing Form 8274. My1040ez com   To elect the exemption, Form 8274 must be filed before the first date on which a quarterly employment tax return would otherwise be due from the electing organization. My1040ez com The organization can make the election only if it is opposed for religious reasons to the payment of FICA taxes. My1040ez com   The election applies to payments for services of current and future employees other than services performed in an unrelated trade or business. My1040ez com Revoking the election. My1040ez com   The election can be revoked by the IRS if the organization fails to file Form W-2, Wage and Tax Statement, for 2 years and fails to furnish certain information upon request by the IRS. My1040ez com Such revocation will apply retroactively to the beginning of the 2-year period. My1040ez com Definitions. My1040ez com   For purposes of this election, the term church means a church, a convention or association of churches, or an elementary or secondary school that is controlled, operated, or principally supported by a church or by a convention or association of churches. My1040ez com   The term qualified church-controlled organization means any church-controlled section 501(c)(3) tax-exempt organization, other than an organization that both: Offers goods, services, or facilities for sale, other than on an incidental basis, to the general public at other than a nominal charge that is substantially less than the cost of providing such goods, services, or facilities, and Normally receives more than 25% of its support from the sum of governmental sources and receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, in activities that are not unrelated trades or businesses. My1040ez com Effect on employees. My1040ez com   If a church or qualified church-controlled organization has made an election, payment for services performed for that church or organization, other than in an unrelated trade or business, will not be subject to FICA taxes. My1040ez com However, the employee, unless otherwise exempt, will be subject to self-employment tax on the income. My1040ez com The tax applies to income of $108. My1040ez com 28 or more for the tax year from that church or organization, and no deductions for trade or business expenses are allowed against this self-employment income. My1040ez com   Schedule SE (Form 1040), Self-Employment Tax, should be attached to the employee's income tax return. My1040ez com Political Organization Income Tax Return Generally, a political organization is treated as an organization exempt from tax. My1040ez com Certain political organizations, however, must file an annual income tax return, Form 1120-POL, U. My1040ez com S. My1040ez com Income Tax Return for Certain Political Organizations, for any year they have political organization taxable income in excess of the $100 specific deduction allowed under section 527. My1040ez com A political organization that has $25,000 ($100,000 for a qualified state or local political organization) or more in gross receipts for the tax year must file Form 990 or Form 990-EZ (and Schedule B of the form), unless excepted. My1040ez com See Forms 990 and 990-EZ , earlier. My1040ez com Political organization. My1040ez com   A political organization is a party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function. My1040ez com Exempt function. My1040ez com   An exempt function means influencing or attempting to influence the selection, nomination, election, or appointment of any individual to any federal, state, local public office or office in a political organization, or the election of the Presidential or Vice Presidential electors, whether or not such individual or electors are selected, nominated, elected, or appointed. My1040ez com It also includes certain office expenses of a holder of public office or an office in a political organization. My1040ez com Certain political organizations are required to notify the IRS that they are section 527 organizations. My1040ez com These organizations must use Form 8871. My1040ez com Some of these section 527 organizations must use Form 8872 to file periodic reports with the IRS disclosing their contributions and expenditures. My1040ez com For a discussion on these forms, see Reporting Requirements for a Political Organization, later. My1040ez com Political organization taxable income. My1040ez com   Political organization taxable income is the excess of: Gross income for the tax year (excluding exempt function income) minus Deductions directly connected with the earning of gross income. My1040ez com To figure taxable income, allow for a $100 specific deduction, but do not allow for the net operating loss deduction, the dividends-received deduction, and other special deductions for corporations. My1040ez com Exempt organization not a political organization. My1040ez com   An organization exempt under section 501(c) that spends any amount for an exempt function must file Form 1120-POL for any year which it has political taxable income. My1040ez com These organizations must include in gross income the lesser of: The total amount of its exempt function expenditures, or The organization's net investment income. My1040ez com Separate fund. My1040ez com   A section 501(c) organization can set up a separate segregated fund that will be treated as an independent political organization. My1040ez com The earnings and expenditures made by the separate fund will not be attributed to the section 501(c) organization. My1040ez com Section 501(c)(3) organizations are precluded from, and may suffer loss of exemption for, engaging in any political campaign on behalf of, or in opposition to, any candidate for public office. My1040ez com Due date. My1040ez com   Form 1120-POL is due by the 15th day of the 3rd month after the end of the tax year. My1040ez com Thus, for a calendar year taxpayer, Form 1120-POL is due on March 15 of the following year. My1040ez com If any due date falls on a Saturday, Sunday, or legal holiday, the organization can file the return on the next business day. My1040ez com    Form 1120-POL is not required of an exempt organization that makes expenditures for political purposes if its gross income does not exceed its directly connected deductions by more than $100 for the tax year. My1040ez com Extension of time to file. My1040ez com    Use Form 7004 to request an automatic 6-month extension of time to file Form 1120-POL. My1040ez com The extension will be granted if you complete Form 7004 properly, make a proper estimate of the tax (if applicable), file Form 1120-POL by the due date, and pay any tax due. My1040ez com Failure to file. My1040ez com   A political organization that fails to file Form 1120-POL is subject to a penalty equal to 5% of the tax due for each month (or partial month) the return is late up to a maximum of 25% of the tax due, unless the organization shows the failure was due to reasonable cause. My1040ez com For more information about filing Form 1120-POL, refer to the instructions accompanying the form. My1040ez com Failure to pay on time. My1040ez com   An organization that does not pay the tax when due generally may have to pay a penalty of 1/2 of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. My1040ez com The penalty will not be imposed if the organization can show that the failure to pay on time was due to reasonable cause. My1040ez com Reporting Requirements for a Political Organization Certain political organizations are required to notify the IRS that the organization is to be treated as a section 527 political organization. My1040ez com The organization is also required to periodically report certain contributions received and expenditures made by the organization. My1040ez com To notify the IRS of section 527 treatment, an organization must file Form 8871. My1040ez com To report contributions and expenditures, certain tax-exempt political organizations must file Form 8872. My1040ez com Form 8871 A political organization must electronically file Form 8871 to notify the IRS that it is to be treated as a section 527 organization. My1040ez com However, an organization is not required to file Form 8871 if: It reasonably expects its annual gross receipts to always be less than $25,000. My1040ez com It is a political committee required to report under the Federal Election Campaign Act of 1971 (FECA) (2 U. My1040ez com S. My1040ez com C. My1040ez com 431(4)). My1040ez com It is a state or local candidate committee. My1040ez com It is a state or local committee of a political party. My1040ez com It is a section 501(c) organization that has made an “exempt function expenditure. My1040ez com ” All other political organizations are required to file Form 8871. My1040ez com An organization must provide on Form 8871: Its name and address (including any business address, if different) and its electronic mailing address; Its purpose; The names and addresses of its officers, highly compensated employees, contact person, custodian of records, and members of its board of directors; The name and address of, and relationship to, any related entities (within the meaning of section 168(h)(4)); and Whether it intends to claim an exemption from filing Form 8872, Form 990, or Form 990-EZ. My1040ez com Employer identification number. My1040ez com   If your organization needs an EIN, you can apply for one: Online—Click on the Employer ID Numbers (EINs) link at www. My1040ez com IRS. My1040ez com gov/businesses/small. My1040ez com By telephone at 1-800-829-4933 from 7:00 a. My1040ez com m. My1040ez com to 10:00 p. My1040ez com m. My1040ez com in the organization's local time zone. My1040ez com By mailing or faxing Form SS-4. My1040ez com   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. My1040ez com Due dates. My1040ez com   The initial Form 8871 must be filed within 24 hours of the date on which the organization was established. My1040ez com If there is a material change, an amended Form 8871 must be filed within 30 days of the material change. My1040ez com When the organization terminates its existence, it must file a final Form 8871 within 30 days of termination. My1040ez com   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. My1040ez com How to file. My1040ez com   An organization must file Form 8871 electronically via the IRS Internet website at www. My1040ez com IRS. My1040ez com gov/polorgs (Keyword: political orgs). My1040ez com Form 8453-X, Political Organization Declaration for Electronic Filing of Notice of Section 527 Status. My1040ez com   After electronically submitting Form 8871, the political organization must print, sign, and mail Form 8453-X to the IRS. My1040ez com Upon receipt of the Form 8453-X, the IRS will send the organization a username and password that must be used to file an amended or final Form 8871 or to electronically file Form 8872. My1040ez com Penalties Failure to file. My1040ez com   An organization that is required to file Form 8871, but fails to do so on a timely basis, will not be treated as a tax-exempt section 527 organization for any period before the date Form 8871 is filed. My1040ez com Also, the taxable income of the organization for that period will include its exempt function income (including contributions received, membership dues, and political fundraising receipts) minus any deductions directly connected with the production of that income. My1040ez com   Failure to file an amended Form 8871 will cause the organization not to be treated as a tax-exempt section 527 organization. My1040ez com If an organization is treated as not being a tax-exempt section 527 organization, the taxable income of the organization will be determined by considering any exempt function income and deductions during the period beginning on the date of the material change and ending on the date that the amended Form 8871 is filed. My1040ez com    The tax is computed by multiplying the organization's taxable income by the highest corporate tax rate. My1040ez com Fraudulent returns. My1040ez com   Any individual or corporation that willfully delivers or discloses to the IRS any list, return, account, statement or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation) or imprisoned for not more than 1 year or both. My1040ez com Waiver of penalties. My1040ez com   The IRS may waive any additional tax assessed on an organization for failure to file Form 8871 if the failure was due to reasonable cause and not willful neglect. My1040ez com Additional information. My1040ez com   For more information on Form 8871, see the form and its instructions. My1040ez com For a discussion on the public inspection requirements for the form, see Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms , later. My1040ez com Form 8872 Every tax-exempt section 527 political organization that accepts a contribution or makes an expenditure, for an exempt function during the calendar year, must file Form 8872 except: A political organization that is not required to file Form 8871 (discussed earlier). My1040ez com A political organization that is subject to tax on its income because it did not file or amend Form 8871. My1040ez com A qualified state or local political organization (QSLPO), discussed below. My1040ez com All other tax-exempt section 527 organizations that accept contributions or make expenditures for an exempt function are required to file Form 8872. My1040ez com Qualified state or local political organization. My1040ez com   A state or local political organization may be a QSLPO if: All of its political activities relate solely to state or local public office (or office in a state or local political organization). My1040ez com It is subject to a state law that requires it to report (and it does report) to a state agency information about contributions and expenditures that is similar to the information that the organization would otherwise be required to report to the IRS. My1040ez com The state agency and the organization make the reports publicly available. My1040ez com No federal candidate or office holder: Controls or materially participates in the direction of the organization, Solicits contributions for the organization, or Directs the disbursements of the organization. My1040ez com Information required on Form 8872. My1040ez com   If an organization pays an individual $500 or more for the calendar year, the organization is required to disclose the individual's name, address, occupation, employer, amount of the expense, the date the expense was paid, and the purpose of the expense on Form 8872. My1040ez com   If an organization receives contributions of $200 or more from one contributor for the calendar year, the organization must disclose the donor's name, address, occupation, employer, and the date the contributions were made. My1040ez com   For additional information that is required, see Form 8872. My1040ez com Due dates. My1040ez com   The due dates for filing Form 8872 vary depending on whether the form is due for a reporting period that occurs during a calendar year in which a regularly scheduled election is held, or any other calendar year (a nonelection year). My1040ez com   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. My1040ez com Election year filing. My1040ez com    In election years, Form 8872 must be filed on either a quarterly or a monthly basis. My1040ez com Both a pre-election report and a post-election report are also required to be filed in an election year. My1040ez com An election year is any year in which a regularly scheduled general election for federal office is held (an even-numbered year). My1040ez com Nonelection year filing. My1040ez com    In nonelection years, the form must be filed on a semiannual or monthly basis. My1040ez com A complete listing of these filing periods are in the Form 8872 Instructions. My1040ez com A nonelection year is any odd-numbered year. My1040ez com How to file. My1040ez com   Form 8872 can be filed either electronically or by mail. My1040ez com However, organizations that have, or expect to have, contributions or expenditures of $50,000 or more for the year must file electronically. My1040ez com    To file by mail, send Form 8872 to the:   Department of the Treasury Internal Revenue Service Center Ogden, UT 84201-0027 Electronic filing. My1040ez com   File electronically via the IRS internet website at www. My1040ez com IRS. My1040ez com gov/polorgs. My1040ez com You will need a user ID and password to electronically file Form 8872. My1040ez com Organizations that have completed the electronic filing of Form 8871 and submitted a completed and signed Form 8453-X will receive a username and password in the mail. My1040ez com   Organizations that have completed the electronic filing of Form 8871, but have not received their user ID and password can request one by writing to the following address: Internal Revenue Service Attn: Request for 8872 Password Mail Stop 6273 Ogden, UT 84201 Lost username and password. My1040ez com   If you have forgotten or misplaced the username and password issued to your organization after you filed your initial Form 8871, send a letter requesting a new username and password to the address under Electronic filing. My1040ez com You can also fax your request to (801) 620-3249. My1040ez com It may take 3-6 weeks for your new username and password to arrive, as they will be mailed to the organization. My1040ez com Penalty A penalty will be imposed if the organization is required to file Form 8872 and it: Fails to file the form by the due date, or Files the form but fails to report all of the information required or reports incorrect information. My1040ez com The penalty is 35% of the total amount of contributions and expenditures to which a failure relates. My1040ez com Fraudulent returns. My1040ez com   Any individual or corporation that willfully delivers or discloses any list, return, account, statement, or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned for not more than 1 year, or both. My1040ez com Waiver of penalties. My1040ez com   The IRS may waive any additional tax assessed on an organization for failure to file Form 8872 if the failure was due to reasonable cause and not willful neglect. My1040ez com Donee Information Return Dispositions of donated property. My1040ez com   If an organization receives charitable deduction property and within three years sells, exchanges, or otherwise disposes of the property, the organization must file Form 8282, Donee Information Return. My1040ez com However, an organization is not required to file Form 8282 if: The property is valued at $500 or less, or The property is consumed or distributed for charitable purposes. My1040ez com   Form 8282 must be filed with the IRS within 125 days after the disposition. My1040ez com Additionally, a copy of Form 8282 must be given to the donor. My1040ez com If the organization fails to file the required information return, penalties may apply. My1040ez com Charitable deduction property. My1040ez com   This is any property (other than money or publicly traded securities) for which the donee organization signed an appraisal summary or Form 8283, Noncash Charitable Contributions. My1040ez com Publicly traded securities. My1040ez com   These are securities for which market quotations are readily available on an established securities market as of the date of the contribution. My1040ez com Appraisal summary. My1040ez com   If the value of the donated property exceeds $5,000, the donor must get a qualified appraisal for contributions of property, see the Exceptions. My1040ez com below. My1040ez com Exceptions. My1040ez com   A written appraisal is not needed if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane), if your deduction for the vehicle is limited to the gross proceeds from its sale, Intellectual property, Certain securities considered to have market quotations readily available (see Regulations section 1. My1040ez com 170A-13(c)(7)(xi)(B)), Inventory and other property donated by a corporation that are qualified contributions for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A), or Any donation of stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. My1040ez com   The donee organization is not a qualified appraiser for the purpose of valuing the donated property. My1040ez com For more information, get Publication 561, Determining the Value of Donated Property. My1040ez com Form 8283. My1040ez com   For noncash donations over $5,000, the donor must attach Form 8283 to the tax return to support the charitable deduction. My1040ez com The donee must sign Part IV of Section B, Form 8283 unless publicly traded securities are donated. My1040ez com The person who signs for the donee must be an official authorized to sign the donee's tax or information returns, or a person specifically authorized to sign by that official. My1040ez com The signature does not represent concurrence in the appraised value of the contributed property. My1040ez com A signed acknowledgment represents receipt of the property described on Form 8283 on the date specified on the form. My1040ez com The signature also indicates knowledge of the information reporting requirements on dispositions, as previously discussed. My1040ez com A copy of Form 8283 must be given to the donee. My1040ez com Information Provided to Donors In some situations, a donor must obtain certain information from a donee organization to obtain a deduction for a charitable contribution. My1040ez com In other situations, the donee organization is required to provide information to the donor. My1040ez com A charitable organization must give a donor a disclosure statement for a quid pro quo contribution over $75. My1040ez com (See Disclosure statement. My1040ez com later. My1040ez com ) This is a payment a donor makes to a charity partly as a contribution and partly for goods or services. My1040ez com See Quid pro quo contribution below for an example. My1040ez com Failure to make the required disclosure may result in a penalty to the organization. My1040ez com A donor cannot deduct a charitable contribution of $250 or more unless the donor has a written acknowledgment from the charitable organization. My1040ez com In certain circumstances, an organization may be able to meet both of these requirements with the same written document. My1040ez com Disclosure of Quid Pro Quo Contributions A charitable organization must provide a written disclosure statement to donors of a quid pro quo contribution over $75. My1040ez com Quid pro quo contribution. My1040ez com   A contribution made by a donor in exchange for goods or services is known as a quid pro quo contribution. My1040ez com Your charitable organization must provide the donor a written statement informing the donor of the fair market value of the items or services it provided in exchange for the contribution. My1040ez com Generally, a written statement is required for each payment, whenever the contribution portion is over $75. My1040ez com Example. My1040ez com If a donor gives your charity $100 and receives a concert ticket valued at $40, the donor has made a quid pro quo contribution. My1040ez com In this example, the charitable part of the payment is $60. My1040ez com Even though the deductible part of the payment is not more than $75, a written statement must be filed because the total payment is more than $75. My1040ez com If your organization fails to disclose quid pro quo contributions, the organization may be subject to a penalty. My1040ez com Disclosure statement. My1040ez com   The required written disclosure statement must: Inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the fair market value of goods or services provided by the charity, and Provide the donor with a good faith estimate of the fair market value of the goods or services that the donor received. My1040ez com The charity must furnish the statement in connection with either the solicitation or the receipt of the quid pro quo contribution. My1040ez com If the disclosure statement is furnished in connection with a particular solicitation, it is not necessary for the organization to provide another statement when it actually receives the contribution. My1040ez com   No disclosure statement is required if any of the following are true. My1040ez com The goods or services given to a donor have insubstantial value as described in Revenue Procedure 90-12, 1990-1 C. My1040ez com B. My1040ez com 471, Revenue Procedure 90-12, and Revenue Procedure 92-49, 1992-1 C. My1040ez com B. My1040ez com 507 (as adjusted for inflation), Revenue Procedure 92-49. My1040ez com There is no donative element involved in a particular transaction with a charity (for example, there is generally no donative element involved in a visitor's purchase from a museum gift shop). My1040ez com There is only an intangible religious benefit provided to the donor. My1040ez com The intangible religious benefit must be provided to the donor by an organization organized exclusively for religious purposes, and must be of a type that generally is not sold in a commercial transaction outside the donative context. My1040ez com For example, a donor who, for a payment, is granted admission to a religious ceremony for which there is no admission charge is provided an intangible religious benefit. My1040ez com A donor is not provided intangible religious benefits for payments made for tuition for education leading to a recognized degree, travel services, or consumer goods. My1040ez com The donor makes a payment of $75 or less per year and receives only annual membership benefits that consist of: Any rights or privileges (other than the right to purchase tickets for college athletic events) that the taxpayer can exercise often during the membership period, such as free or discounted admissions or parking or preferred access to goods or services, or Admission to events that are open only to members and the cost per person of which is within the limits for low-cost articles described in Revenue Procedure 90-12 (as adjusted for inflation), Revenue Procedure 90-12. My1040ez com Good faith estimate of fair market value (FMV). My1040ez com   An organization can use any reasonable method to estimate the FMV of goods or services it provided to a donor, as long as it applies the method in good faith. My1040ez com   The organization can estimate the FMV of goods or services that generally are not commercially available by using the FMV of similar or comparable goods or services. My1040ez com Goods or services may be similar or comparable even if they do not have the unique qualities of the goods or services being valued. My1040ez com Example 1. My1040ez com A charity provides a 1-hour tennis lesson with a tennis professional for the first $500 payment it receives. My1040ez com The tennis professional provides 1-hour lessons on a commercial basis for $100. My1040ez com A good faith estimate of the lesson's FMV is $100. My1040ez com Example 2. My1040ez com For a payment of $50,000, a museum allows a donor to hold a private event in a room of the museum. My1040ez com A good faith estimate of the FMV of the right to hold the event in the museum can be made by using the cost of renting a hotel ballroom with a capacity, amenities, and atmosphere comparable to the museum room, even though the hotel ballroom lacks the unique art displayed in the museum room. My1040ez com If the hotel ballroom rents for $2,500, a good faith estimate of the FMV of the right to hold the event in the museum is $2,500. My1040ez com Example 3. My1040ez com For a payment of $1,000, a charity provides an evening tour of a museum conducted by a well-known artist. My1040ez com The artist does not provide tours on a commercial basis. My1040ez com Tours of the museum normally are free to the public. My1040ez com A good faith estimate of the FMV of the evening museum tour is $0 even though it is conducted by the artist. My1040ez com Penalty for failure to disclose. My1040ez com   A penalty is imposed on a charity that does not make the required disclosure of a quid pro quo contribution of more than $75. My1040ez com The penalty is $10 per contribution, not to exceed $5,000 per fundraising event or mailing. My1040ez com The charity can avoid the penalty if it can show that the failure was due to reasonable cause. My1040ez com Acknowledgment of Charitable Contributions of $250 or More A donor can deduct a charitable contribution of $250 or more only if the donor has a written acknowledgment from the charitable organization. My1040ez com The donor must get the acknowledgment by the earlier of: The date the donor files the original return for the year the contribution is made, or The due date, including extensions, for filing the return. My1040ez com The donor is responsible for requesting and obtaining the written acknowledgment from the donee. My1040ez com A charitable organization that receives a payment made as a contribution is treated as the donee organization for this purpose even if the organization (according to the donor's instructions or otherwise) distributes the amount received to one or more charities. My1040ez com Quid pro quo contribution. My1040ez com   If the donee provides goods or services to the donor in exchange for the contribution (a quid pro quo contribution), the acknowledgment must include a good faith estimate of the value of the goods or services. My1040ez com See Disclosure of Quid Pro Quo Contributions earlier. My1040ez com Form of acknowledgment. My1040ez com   Although there is no prescribed format for the written acknowledgment, it must provide enough information to substantiate the amount of the contribution. My1040ez com For more information, see IRS Publication 1771, Charitable Contributions – Substantiation and Disclosure Requirements. My1040ez com Cash contributions. My1040ez com   To deduct a contribution of cash, a check, or other monetary gift (regardless of the amount), a donor must maintain a bank record or a written communication from the donee organization showing the donee's name, date, and amount of the contribution. My1040ez com In the case of a lump-sum contribution (rather than a contribution by payroll deduction) made through the Combined Federal Campaign or a similar program such as a United Way Campaign, the written communication must include the name of the donee organization that is the ultimate recipient of the charitable contribution. My1040ez com Contributions by payroll deduction. My1040ez com   An organization may substantiate an employee's contribution by deduction from its payroll by: A pay stub, Form W-2, or other document showing a contribution to a donee organization, together with A pledge card or other document from the donee organization that shows its name. My1040ez com   For contributions of $250 or more, the document must state that the donee organization provides no goods or services for any payroll contributions. My1040ez com The amount withheld from each payment of wages to a taxpayer is treated as a separate contribution. My1040ez com Acknowledgment of Vehicle Contribution If an exempt organization receives a contribution of a qualified vehicle with a claimed value of more than $500, the donee organization is required to provide a contemporaneous written acknowledgment to the donor. My1040ez com The donee organization can use a completed Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, for the contemporaneous written acknowledgment. My1040ez com See section 3. My1040ez com 03 of Notice 2005-44 for guidance on the information that must be included in a contemporaneous written acknowledgment and the deadline for furnishing the acknowledgment to the donor. My1040ez com Any donee organization that provides a contemporaneous written acknowledgment to a donor is required to report to the IRS the information contained in the acknowledgment. My1040ez com The report is due by February 28 (March 31 if filing electronically) of the year following the year in which the donee organization provides the acknowledgment to the donor. My1040ez com The organization must file the report on Copy A of Form 1098-C. My1040ez com An organization that files Form 1098-C on paper should send it with Form 1096, Annual Summary and Transmittal of U. My1040ez com S. My1040ez com Information Returns. My1040ez com See the Instructions for Form 1096 for the correct filing location. My1040ez com An organization that is required to file 250 or more Forms 1098-C during the calendar year must file the forms electronically or magnetically. My1040ez com Specifications for filing Form 1098-C electronically or magnetically can be found in Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically at www. My1040ez com IRS. My1040ez com gov/pub/irs-pdf/p1220. My1040ez com pdf. My1040ez com Acknowledgment For a contribution of a qualified vehicle with a claimed value of $500 or less, do not file Form 1098-C. My1040ez com However, you can use it as the contemporaneous written acknowledgment under section 170(f)(8) by providing the donor with Copy C only. My1040ez com See the Instructions for Form 1098-C. My1040ez com Generally, the organization should complete Form 1098-C as the written acknowledgment to the donor and the IRS. My1040ez com The contents of the acknowledgment depend upon whether the organization: Sells a qualified vehicle without any significant intervening use or material improvement, Intends to make a significant intervening use of or material improvement to a qualified vehicle prior to sale, or Sells a qualified vehicle to a needy individual at a price significantly below fair market value, or a gratuitous transfer to a needy individual in direct furtherance of a charitable purpose of the organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation. My1040ez com For more information on the acknowledgment, see Notice 2005-44, 2005-25 I. My1040ez com R. My1040ez com B. My1040ez com 1287, at www. My1040ez com irs. My1040ez com gov/irb/2005-25_IRB/2005-25_IRB/ar09. My1040ez com html. My1040ez com Material improvements or significant intervening use. My1040ez com   To constitute significant intervening use, the organization must actually use the vehicle to substantially further the organization's regularly conducted activities, and the use must be significant, not incidental. My1040ez com Factors in determining whether a use is a significant intervening use depend on the nature, extent, frequency, and duration. My1040ez com For this purpose, use includes providing transportation on a regular basis for a significant period of time or significant use directly related to training in vehicle repair. My1040ez com Use does not include the use of a vehicle to provide training in business skills, such as marketing or sales. My1040ez com Examples of significant use include: Driving a vehicle every day for 1 year to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. My1040ez com Driving a vehicle for 10,000 miles over a 1-year period to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. My1040ez com   Material improvements include major repairs and additions that improve the condition of the vehicle in a manner that significantly increases the value. My1040ez com To be a material improvement, the improvement cannot be funded by an additional payment to the organization from the donor of the vehicle. My1040ez com Material improvements do not include cleaning, minor repairs, routine maintenance, painting, removal of dents or scratches, cleaning or repair of upholstery, and installation of theft deterrent devices. My1040ez com Penalties. My1040ez com   If your charitable organization receives contributions of used motor vehicles, boats, and airplanes valued over $500 it may be subject to a penalty if it knowingly: Fails to furnish an acknowledgement in a timely manner, showing the required information, or Furnishes a false or fraudulent acknowledgement of the contribution. My1040ez com    Other penalties may apply. My1040ez com See Part O in the 2012 General Instructions for Certain Information Returns. My1040ez com   An acknowledgment containing a certification will be presumed to be false or fraudulent if the qualified vehicle is sold to a buyer other than a needy individual without a significant intervening use or material improvement within 6 months of the date of the contribution. My1040ez com   If a charity sells a donated vehicle at auction, the IRS will not accept as substantiation an acknowledgment from the charity stating that the vehicle is to be transferred to a needy individual for significantly below fair market value. My1040ez com Vehicles sold at auction are not sold at prices significantly below fair market value, and the IRS will not treat vehicles sold at auction as qualifying for this exception. My1040ez com   The penalty for a false or fraudulent acknowledgment where the donee certifies that the vehicle will not be transferred for money, other property, or services before completion of material improvements or significant intervening use or the donee certifies that the vehicle is to be transferred to a needy individual for significantly below fair market value in furtherance of the donee's charitable purpose is the larger of $5,000 or the claimed value of the vehicle multiplied by 39. My1040ez com 6%. My1040ez com   The penalty for an acknowledgment relating to a qualified vehicle being sold in an arm's length transaction to an unrelated party is the larger of the gross proceeds from the sale or the sales price stated in the acknowledgment multiplied by 39. My1040ez com 6%. My1040ez com Qualified Intellectual Property A taxpayer who contributes qualified intellectual property to a charity may be entitled to a charitable deduction, in addition to any initial deduction allowed in the year of contribution. My1040ez com The additional deduction is based on a specified percentage of the qualified donee income with respect to the qualified intellectual property. My1040ez com To qualify for the additional charitable deduction, the donor must provide notice to the donee at the time of the contribution that the donor intends to treat the contribution as qualified intellectual property contribution for purposes of sections 170(m) and 6050L. My1040ez com Every donee organization described in section 170(c) (except a private foundation as defined in section 509(a) that is not described in section 170(b)(1)(F)) that receives or accrues net income from a charitable gift of qualified intellectual property must file Form 8899. My1040ez com Form 8899. My1040ez com   Form 8899, Notice of Income From Donated Intellectual Property, is used by a donee to report net income from qualified intellectual property to the donor of the property and to the IRS and is due by the last day of the first full month following the close of the donee’s tax year. My1040ez com This form must be filed for each tax year of the donee in which the donated property produces net income, but only if all or part of that tax year occurs during the 10-year period beginning on the date of the contribution and that tax year does not begin after the expiration of the legal life of the donated property. My1040ez com Qualified donee income. My1040ez com   Qualified donee income is any net income received by or accrued to the donee that is properly allocable to the qualified intellectual property for the tax year of the donee which ends within or with the tax year of the donor. My1040ez com Income is not treated as allocated to qualified intellectual property if it is received or accrued after the earlier of the expiration of the legal life of the qualified intellectual property, or the 10-year period beginning with the date of