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Tax back Publication 1544 - Main Content Table of Contents Why Report These Payments? Who Must File Form 8300?What Payments Must Be Reported? What Is Cash? Taxpayer Identification Number (TIN) What Is a Related Transaction? What About Suspicious Transactions? When, Where, and What To File Examples Penalties How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Tax back Why Report These Payments? Drug dealers and smugglers often use large cash payments to “launder” money from illegal activities. Tax back Laundering means converting “dirty” or illegally-gained money to “clean” money. Tax back The government can often trace this laundered money through the payments you report. Tax back Laws passed by Congress require you to report these payments. Tax back Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. Tax back The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Tax back Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300. Tax back For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Tax back Special rules for clerks of federal or state courts are discussed later under Bail received by court clerks. Tax back However, you do not have to file Form 8300 if the transaction is not related to your trade or business. Tax back For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Tax back Transaction defined. Tax back    A “transaction” occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Tax back Person defined. Tax back   A “person” includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Tax back   Exempt organizations, including employee plans, are also “persons. Tax back ” However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Tax back Foreign transactions. Tax back   You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. Tax back However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Tax back Bail received by court clerks. Tax back   Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: Any federal offense involving a controlled substance, Racketeering, Money laundering, and Any state offense substantially similar to (1), (2), or (3) above. Tax back For more information about the rules that apply to court clerks, see Section 1. Tax back 6050I-2 of the Income Tax Regulations. Tax back What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: Over $10,000, Received as: One lump sum of over $10,000, Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, Received in the course of your trade or business, Received from the same buyer (or agent), and Received in a single transaction or in related transactions (defined later). Tax back What Is Cash? Cash is: The coins and currency of the United States (and any other country), and A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in: A designated reporting transaction (defined later), or Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form 8300. Tax back Cash may include a cashier's check even if it is called a “treasurer's check” or “bank check. Tax back ” Cash does not include a check drawn on an individual's personal account. Tax back A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. Tax back These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Form 104. Tax back Example 1. Tax back You are a coin dealer. Tax back Bob Green buys gold coins from you for $13,200. Tax back He pays for them with $6,200 in U. Tax back S. Tax back currency and a cashier's check having a face amount of $7,000. Tax back The cashier's check is treated as cash. Tax back You have received more than $10,000 cash and must file Form 8300 for this transaction. Tax back Example 2. Tax back You are a retail jeweler. Tax back Mary North buys an item of jewelry from you for $12,000. Tax back She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Tax back Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. Tax back You do not have to file Form 8300. Tax back Example 3. Tax back You are a boat dealer. Tax back Emily Jones buys a boat from you for $16,500. Tax back She pays for it with a cashier's check payable to you in the amount of $16,500. Tax back The cashier's check is not treated as cash because its face amount is more than $10,000. Tax back You do not have to file Form 8300 for this transaction. Tax back Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: A consumer durable, such as an automobile or boat. Tax back A consumer durable is property, other than land or buildings, that: Is suitable for personal use, Can reasonably be expected to last at least 1 year under ordinary use, Has a sales price of more than $10,000, and Can be seen or touched (tangible property). Tax back For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. Tax back The car is a consumer durable even if you sell it to a buyer who will use it in a business. Tax back A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). Tax back Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. Tax back To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Tax back Example. Tax back You are a travel agent. Tax back Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. Tax back He also asks you to book hotel rooms and admission tickets for the group. Tax back In payment, he gives you two money orders, each for $6,000. Tax back You have received more than $10,000 cash in this designated reporting transaction. Tax back You must file Form 8300. Tax back Retail sale. Tax back   The term “retail sale” means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Tax back   Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. Tax back This includes any sales of items that will be resold. Tax back Broker or intermediary. Tax back   A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Tax back Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Tax back Exception for certain bank loans. Tax back   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. Tax back As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Tax back Example. Tax back You are a car dealer. Tax back Mandy White buys a new car from you for $11,500. Tax back She pays you with $2,000 of U. Tax back S. Tax back currency and a cashier's check for $9,500 payable to you and her. Tax back You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. Tax back For this reason, the cashier's check is not treated as cash. Tax back You do not have to file Form 8300 for the transaction. Tax back Exception for certain installment sales. Tax back   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). Tax back However, this exception applies only if: You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Tax back Exception for certain down payment plans. Tax back   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. Tax back You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the date of sale. Tax back You receive it more than 60 days before the date of sale. Tax back You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Tax back Exception for travel and entertainment. Tax back   A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. Tax back You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. Tax back You receive it more than 60 days before the date on which the final payment is due. Tax back You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Tax back Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. Tax back If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. Tax back If you do not know a person's TIN, you have to ask for it. Tax back You may be subject to penalties for an incorrect or missing TIN. Tax back There are three types of TINs. Tax back The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). Tax back The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). Tax back An ITIN has nine digits, similar to an SSN. Tax back The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Tax back Exception. Tax back   You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: Does not have income effectively connected with the conduct of a U. Tax back S. Tax back trade or business; Does not have an office or place of business, or a fiscal or paying agent in the United States; Does not file a federal tax return; Does not furnish a withholding certificate described in §1. Tax back 1441-1(e)(2) or (3) or 1. Tax back 1441-5(c)(2)(iv) or (3)(iii) to the extent required under 1. Tax back 1441-1(e)(4)(vii); Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U. Tax back S. Tax back citizen or resident. Tax back What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. Tax back If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form 8300. Tax back For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Tax back Because they total $12,000 (more than $10,000), you must file Form 8300. Tax back More than 24 hours between transactions. Tax back   Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. Tax back   For example, you are a travel agent. Tax back A client pays you $8,000 in cash for a trip. Tax back Two days later, the same client pays you $3,000 more in cash to include another person on the trip. Tax back These are related transactions, and you must file Form 8300 to report them. Tax back What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. Tax back A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. Tax back If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Tax back Or, you can call the FinCEN Financial Institution Hotline toll free at 1-866-556-3974. Tax back When, Where, and What To File The amount you receive and when you receive it determine when you must file. Tax back Generally, you must file Form 8300 within 15 days after receiving a payment. Tax back If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Tax back More than one payment. Tax back   In some transactions, the buyer may arrange to pay you in cash installment payments. Tax back If the first payment is more than $10,000, you must file Form 8300 within 15 days. Tax back If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. Tax back When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. Tax back   After you file Form 8300, you must start a new count of cash payments received from that buyer. Tax back If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form 8300. Tax back You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. Tax back   If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Tax back Example. Tax back On January 10, you receive a cash payment of $11,000. Tax back You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. Tax back By January 25, you must file a Form 8300 for the $11,000 payment. Tax back By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Tax back Amending a Report?   If you are amending a report, check box 1a at the top of Form 8300. Tax back Complete the form in its entirety (Parts I-IV) and include the amended information. Tax back Do not attach a copy of the original report. Tax back Where to file. Tax back   Mail the form to the address given in the Form 8300 instructions. Tax back Required statement to buyer. Tax back   You must give a written or electronic statement to each person named on any Form 8300 you must file. Tax back You can give the statement electronically only if the recipient agrees to receive it in that format. Tax back The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. Tax back It must state that you are also reporting this information to the IRS. Tax back   You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. Tax back    You must keep a copy of every Form 8300 you file for 5 years. Tax back Examples Example 1. Tax back Pat Brown is the sales manager for Small Town Cars. Tax back On January 6, 2009, Jane Smith buys a new car from Pat and pays $18,000 in cash. Tax back Pat asks for identification from Jane to get the necessary information to complete Form 8300. Tax back A filled-in form is shown in this publication. Tax back Pat must mail the form to the address shown in the form's instructions by January 21, 2009. Tax back He must also send a statement to Jane by January 31, 2010. Tax back Example 2. Tax back Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Tax back Pat would have to file a Form 8300 by February 26 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2009, is a Saturday). Tax back Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. Tax back However, he could report it if he felt it was a suspicious transaction. Tax back Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form 8300. Tax back If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: $25,000, or The amount of cash you received and were required to report (up to $100,000). Tax back There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form 8300. Tax back If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. Tax back These dollar amounts are based on Section 3571 of Title 18 of the U. Tax back S. Tax back Code. Tax back The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. Tax back This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. Tax back Structuring means breaking up a large cash transaction into small cash transactions. Tax back How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Tax back By selecting the method that is best for you, you will have quick and easy access to tax help. Tax back Free help with your return. Tax back   Free help in preparing your return is available nationwide from IRS-certified volunteers. Tax back The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Tax back Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Tax back To find the nearest VITA or TCE site, visit IRS. Tax back gov or call 1-800-906-9887 or 1-800-829-1040. Tax back   As part of the TCE program, AARP offers the Tax-Aide counseling program. Tax back To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Tax back aarp. Tax back org/money/taxaide. Tax back   For more information on these programs, go to IRS. Tax back gov and enter keyword “VITA” in the upper right-hand corner. Tax back Internet. Tax back You can access the IRS website at IRS. Tax back gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Tax back Go to IRS. Tax back gov and click on Where's My Refund. Tax back Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Tax back If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Tax back Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Tax back E-file your return. Tax back Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Tax back Download forms, including talking tax forms, instructions, and publications. Tax back Order IRS products online. Tax back Research your tax questions online. Tax back Search publications online by topic or keyword. Tax back Use the online Internal Revenue Code, regulations, or other official guidance. Tax back View Internal Revenue Bulletins (IRBs) published in the last few years. Tax back Figure your withholding allowances using the withholding calculator online at  www. Tax back irs. Tax back gov/individuals. Tax back Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at  www. Tax back irs. Tax back gov/individuals. Tax back Sign up to receive local and national tax news by email. Tax back Get information on starting and operating a small business. Tax back Phone. Tax back Many services are available by phone. Tax back   Ordering forms, instructions, and publications. Tax back Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Tax back You should receive your order within 10 days. Tax back Asking tax questions. Tax back Call the IRS with your tax questions at 1-800-829-1040. Tax back Solving problems. Tax back You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Tax back An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Tax back Call your local Taxpayer Assistance Center for an appointment. Tax back To find the number, go to www. Tax back irs. Tax back gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Tax back TTY/TDD equipment. Tax back If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Tax back TeleTax topics. Tax back Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Tax back Refund information. Tax back You can check the status of your refund on the new IRS phone app. Tax back Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Tax back IRS2Go is a new way to provide you with information and tools. Tax back To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Tax back Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Tax back If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Tax back Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Tax back If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Tax back Other refund information. Tax back To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Tax back Evaluating the quality of our telephone services. Tax back To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Tax back One method is for a second IRS representative to listen in on or record random telephone calls. Tax back Another is to ask some callers to complete a short survey at the end of the call. Tax back Walk-in. Tax back Many products and services are available on a walk-in basis. Tax back   Products. Tax back You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Tax back Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Tax back Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Tax back Services. Tax back You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Tax back An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Tax back If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Tax back No appointment is necessary—just walk in. Tax back If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Tax back A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Tax back If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Tax back All other issues will be handled without an appointment. Tax back To find the number of your local office, go to www. Tax back irs. Tax back gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Tax back Mail. Tax back You can send your order for forms, instructions, and publications to the address below. Tax back You should receive a response within 10 days after your request is received. Tax back  Internal Revenue Service 1201 N. Tax back Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Tax back   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Tax back Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Tax back We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Tax back Remember, the worst thing you can do is nothing at all. Tax back   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Tax back You face (or your business is facing) an immediate threat of adverse action. Tax back You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Tax back   If you qualify for our help, we’ll do everything we can to get your problem resolved. Tax back You will be assigned to one advocate who will be with you at every turn. Tax back We have offices in every state, the District of Columbia, and Puerto Rico. Tax back Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Tax back And our services are always free. Tax back   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Tax back Our tax toolkit at www. Tax back TaxpayerAdvocate. Tax back irs. Tax back gov can help you understand these rights. Tax back   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Tax back irs. Tax back gov/advocate. Tax back You can also call our toll-free number at 1-877-777-4778. Tax back   TAS also handles large-scale or systemic problems that affect many taxpayers. Tax back If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Tax back irs. Tax back gov/advocate. Tax back Low Income Taxpayer Clinics (LITCs). Tax back   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Tax back Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Tax back These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Tax back Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Tax back For more information and to find a clinic near you, see the LITC page on www. Tax back irs. Tax back gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Tax back This publication is also available by calling 1-800-829-3676 or at your local IRS office. Tax back Free tax services. Tax back   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Tax back Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Tax back The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Tax back The majority of the information and services listed in this publication are available to you free of charge. Tax back If there is a fee associated with a resource or service, it is listed in the publication. Tax back   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Tax back DVD for tax products. Tax back You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Tax back Prior-year forms, instructions, and publications. Tax back Tax Map: an electronic research tool and finding aid. Tax back Tax law frequently asked questions. Tax back Tax Topics from the IRS telephone response system. Tax back Internal Revenue Code—Title 26 of the U. Tax back S. Tax back Code. Tax back Links to other Internet based Tax Research Materials. Tax back Fill-in, print, and save features for most tax forms. Tax back Internal Revenue Bulletins. Tax back Toll-free and email technical support. Tax back Two releases during the year. Tax back  – The first release will ship the beginning of January. Tax back  – The final release will ship the beginning of March. Tax back Purchase the DVD from National Technical Information Service (NTIS) at www. Tax back irs. Tax back gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Tax back This image is too large to be displayed in the current screen. Tax back Please click the link to view the image. Tax back Fill-in Form 8300 Prev  Up  Next   Home   More Online Publications
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    The rental housing scam works by criminals searching websites that list homes for sale. They take the information in those ads lock, and post it, with their own e-mail address, in an ad on Craigslist (without Craigslist's consent or knowledge) under the housing rentals category. To sweeten the pot, the houses are almost always listed with below-market rental rates. You arrive at the home on the agreed-upon date, but there's just one small problem the house is not actually for rent and its owners know nothing about your agreement.
  • Online Rental Scams Target Renters and Landlords
    Within seconds of searching the Internet, potential home renters can find all the information they need about a possible new home, such as pictures, prices and virtual tours. However, such tools give scammers the perfect opportunity to take advantage of consumers. Better Business Bureau warns renters to be on the lookout for phony ads on Craigslist and other Internet services aimed at stealing money.
  • Spotting Signs of a Rental Scam
    Consumers in search of an apartment or house to rent often rely on online rental listings in order to find the right place, especially if they're looking in another city or state. Unfortunately, scammers are taking advantage. Some make up phony listings, and try to lure renters with the promise of extra- low rent. They ask potential renters to send money before they see the apartment or sign a lease.

The Tax Back

Tax back 4. Tax back   Limit on Elective Deferrals Table of Contents Excess elective deferrals. Tax back General Limit 15-Year RuleYears of Service Figuring the Limit on Elective DeferralsExample The second and final component of MAC is the limit on elective deferrals. Tax back This is a limit on the amount of contributions that can be made to your account through a salary reduction agreement. Tax back A salary reduction agreement is an agreement between you and your employer that allows for a portion of your compensation to be directly invested in a 403(b) account on your behalf. Tax back You can enter into more than one salary reduction agreement during a year. Tax back More than one 403(b) account. Tax back If, for any year, elective deferrals are contributed to more than one 403(b) account for you (whether or not with the same employer), you must combine all the elective deferrals to determine whether the total is more than the limit for that year. Tax back 403(b) plan and another retirement plan. Tax back If, during the year, contributions in the form of elective deferrals are made to other retirement plans on your behalf, you must combine all of the elective deferrals to determine if they are more than your limit on elective deferrals. Tax back The limit on elective deferrals applies to amounts contributed to: 401(k) plans, to the extent excluded from income, Roth contribution programs, Section 501(c)(18) plans, to the extent excluded from income, Savings incentive match plan for employees (SIMPLE plans), Simplified employee pension (SEP) plans, and All 403(b) plans. Tax back Roth contribution program. Tax back   Your 403(b) plan may allow you to designate all or a portion of your elective deferrals as Roth contributions. Tax back Elective deferrals designated as Roth contributions must be maintained in a separate Roth account and are not excludable from your gross income. Tax back   The maximum amount of contributions allowed under a Roth contribution program is your limit on elective deferrals, less your elective deferrals not designated as Roth contributions. Tax back For more information on the Roth contribution program, see Publication 560, Retirement Plans for Small Business. Tax back Excess elective deferrals. Tax back   If the amount contributed is more than the allowable limit, you must include the excess that is not a Roth contribution in your gross income for the year contributed. Tax back General Limit Under the general limit on elective deferrals, the most that can be contributed to your 403(b) account through a salary reduction agreement is $17,500 for 2013 and 2014. Tax back This limit applies without regard to community property laws. Tax back 15-Year Rule If you have at least 15 years of service with an educational organization (such as a public or private school), hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization), the limit on elective deferrals to your 403(b) account is increased by the least of: $3,000, $15,000, reduced by the sum of: The additional pre-tax elective deferrals made in prior years because of this rule, plus The aggregate amount of designated Roth contributions permitted for prior years because of this rule, or $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years. Tax back If you qualify for the 15-year rule, your elective deferrals under this limit can be as high as $20,500 for 2013 and 2014. Tax back To determine whether you have 15 years of service with your employer, see Years of Service , next. Tax back Years of Service To determine if you are eligible for the increased limit on elective deferrals, you will first need to figure your years of service. Tax back How you figure your years of service depends on whether you were a full-time or a part-time employee, whether you worked for the full year or only part of the year, and whether you have worked for your employer for an entire year. Tax back You must figure years of service for each year during which you worked for the employer who is maintaining your 403(b) account. Tax back If more than one employer maintains a 403(b) account for you in the same year, you must figure years of service separately for each employer. Tax back Definition Your years of service are the total number of years you have worked as a full time employee for the employer maintaining your 403(b) account as of the end of the year. Tax back Figuring Your Years of Service Take the following rules into account when figuring your years of service. Tax back Status of employer. Tax back   Your years of service include only periods during which your employer was a qualified employer. Tax back Your plan administrator can tell you whether or not your employer was qualified during all your periods of service. Tax back Service with one employer. Tax back   Generally, you cannot count service for any employer other than the one who maintains your 403(b) account. Tax back Church employee. Tax back   If you are a church employee, treat all of your years of service with related church organizations as years of service with the same employer. Tax back For more information about church employees, see chapter 5. Tax back Self-employed ministers. Tax back   If you are a self-employed minister, your years of service include full and part years in which you have been treated as employed by a tax-exempt organization that is a qualified employer. Tax back Total years of service. Tax back   When figuring prior years of service, figure each year individually and then add the individual years of service to determine your total years of service. Tax back Example. Tax back The annual work period for full-time teachers employed by ABC Public Schools is September through December and February through May. Tax back Marsha began working with ABC schools in September 2009. Tax back She has always worked full-time for each annual work period. Tax back At the end of 2013, Marsha had 4. Tax back 5 years of service with ABC Public Schools, as shown in Table 4-1. Tax back Table 4-1. Tax back Marsha's Years of Service Note. Tax back This table shows how Marsha figures her years of service, as explained in the previous example. Tax back Year Period Worked Portion of Work Period Years of Service 2009 Sept. Tax back –Dec. Tax back . Tax back 5 year . Tax back 5 year 2010 Feb. Tax back –May . Tax back 5 year 1 year Sept. Tax back –Dec. Tax back . Tax back 5 year 2011 Feb. Tax back –May . Tax back 5 year 1 year Sept. Tax back –Dec. Tax back . Tax back 5 year 2012 Feb. Tax back –May . Tax back 5 year 1 year Sept. Tax back –Dec. Tax back . Tax back 5 year 2013 Feb. Tax back –May . Tax back 5 year 1 year Sept. Tax back –Dec. Tax back . Tax back 5 year Total years of service 4. Tax back 5 years Full-time or part-time. Tax back   To figure your years of service, you must analyze each year individually and determine whether you worked full-time for the full year or something other than full-time. Tax back When determining whether you worked full-time or something other than full-time, use your employer's annual work period as the standard. Tax back Employer's annual work period. Tax back   Your employer's annual work period is the usual amount of time an individual working full-time in a specific position is required to work. Tax back Generally, this period of time is expressed in days, weeks, months, or semesters, and can span 2 calendar years. Tax back Note. Tax back You cannot accumulate more than 1 year of service in a 12-month period. Tax back Example. Tax back All full-time teachers at ABC Public Schools are required to work both the September through December semester and the February through May semester. Tax back Therefore, the annual work period for full-time teachers employed by ABC Public Schools is September through December and February through May. Tax back Teachers at ABC Public Schools who work both semesters in the same calendar year are considered working a full year of service in that calendar year. Tax back Full-Time Employee for the Full Year Count each full year during which you were employed full-time as 1 year of service. Tax back In determining whether you were employed full-time, compare the amount of work you were required to perform with the amount of work normally required of others who held the same position with the same employer and who generally received most of their pay from the position. Tax back How to compare. Tax back   You can use any method that reasonably and accurately reflects the amount of work required. Tax back For example, if you are a teacher, you can use the number of hours of classroom instruction as a measure of the amount of work required. Tax back   In determining whether positions with the same employer are the same, consider all of the facts and circumstances concerning the positions, including the work performed, the methods by which pay is determined, and the descriptions (or titles) of the positions. Tax back Example. Tax back An assistant professor employed in the English department of a university will be considered a full-time employee if the amount of work that he or she is required to perform is the same as the amount of work normally required of assistant professors of English at that university who get most of their pay from that position. Tax back   If no one else works for your employer in the same position, compare your work with the work normally required of others who held the same position with similar employers or similar positions with your employer. Tax back Full year of service. Tax back   A full year of service for a particular position means the usual annual work period of anyone employed full-time in that general type of work at that place of employment. Tax back Example. Tax back If a doctor works for a hospital 12 months of a year except for a 1-month vacation, the doctor will be considered as employed for a full year if the other doctors at that hospital also work 11 months of the year with a 1-month vacation. Tax back Similarly, if the usual annual work period at a university consists of the fall and spring semesters, an instructor at that university who teaches these semesters will be considered as working a full year. Tax back Other Than Full-Time for the Full Year If, during any year, you were employed full-time for only part of your employer's annual work period, part-time for the entire annual work period, or part-time for only part of the work period, your year of service for that year is a fraction of your employer's annual work period. Tax back Full-time for part of the year. Tax back   If, during a year, you were employed full-time for only part of your employer's annual work period, figure the fraction for that year as follows: The numerator (top number) is the number of weeks, months, or semesters you were a full-time employee. Tax back The denominator (bottom number) is the number of weeks, months, or semesters considered the normal annual work period for the position. Tax back Example. Tax back Jason was employed as a full-time instructor by a local college for the 4 months of the 2013 spring semester (February 2013 through May 2013). Tax back The annual work period for the college is 8 months (February through May and July through October). Tax back Given these facts, Jason was employed full-time for part of the annual work period and provided ½ of a year of service. Tax back Jason's years of service computation for 2013 is as follows: Number of months Jason worked = 4 = 1 Number of months in annual work period 8 2 Part-time for the full year. Tax back   If, during a year, you were employed part-time for the employer's entire annual work period, you figure the fraction for that year as follows: The numerator (top number) is the number of hours or days you worked. Tax back The denominator (bottom number) is the number of hours or days normally required of someone holding the same position who works full-time. Tax back Example. Tax back Vance teaches one course at a local medical school. Tax back He teaches 3 hours per week for two semesters. Tax back Other faculty members at the same school teach 9 hours per week for two semesters. Tax back The annual work period of the medical school is two semesters. Tax back An instructor teaching 9 hours a week for two semesters is considered a full-time employee. Tax back Given these facts, Vance has worked part-time for a full annual work period. Tax back Vance has completed 1/3 of a year of service, figured as shown below. Tax back Number of hours per week Vance worked = 3 = 1 Number of hours per week considered full-time 9 3 Part-time for part of the year. Tax back   If, during any year, you were employed part-time for only part of your employer's annual work period, you figure your fraction for that year by multiplying two fractions. Tax back   Figure the first fraction as though you had worked full-time for part of the annual work period. Tax back The fraction is as follows: The numerator (top number) is the number of weeks, months, or semesters you were a full-time employee. Tax back The denominator (bottom number) is the number of weeks, months, or semesters considered the normal annual work period for the position. Tax back   Figure the second fraction as though you had worked part-time for the entire annual work period. Tax back The fraction is as follows: The numerator (top number) is the number of hours or days you worked. Tax back The denominator (bottom number) is the number of hours or days normally required of someone holding the same position who works full-time. Tax back   Once you have figured these two fractions, multiply them together to determine the fraction representing your partial year of service for the year. Tax back Example. Tax back Maria, an attorney, teaches a course for one semester at a law school. Tax back She teaches 3 hours per week. Tax back The annual work period for teachers at the school is two semesters. Tax back All full-time instructors at the school are required to teach 12 hours per week. Tax back Based on these facts, Maria is employed part-time for part of the annual work period. Tax back Her year of service for this year is determined by multiplying two fractions. Tax back Her computation is as follows: Maria's first fraction Number of semesters Maria worked = 1 Number of semesters in annual work period 2 Maria's second fraction Number of hours Maria worked per week = 3 = 1 Number of hours per week considered full-time 12 4 Maria would multiply these fractions to obtain the fractional year of service: 1 x 1 = 1         2 4 8         Figuring the Limit on Elective Deferrals You can use Part II of Worksheet 1 in chapter 9 to figure the limit on elective deferrals. Tax back Example Floyd has figured his limit on annual additions. Tax back The only other component needed before he can determine his MAC for 2014 is his limit on elective deferrals. Tax back Figuring Floyd's limit on elective deferrals. Tax back   Floyd has been employed with his current employer for less than 15 years. Tax back He is not eligible for the special 15-year increase. Tax back Therefore, his limit on elective deferrals for 2014 is $17,500 as shown in Table 4-2. Tax back Floyd's employer will not make any nonelective contributions to his 403(b) account and Floyd will not make any after-tax contributions. Tax back Additionally, Floyd's employer does not offer a Roth contribution program. Tax back Figuring Floyd's MAC Floyd has determined that his limit on annual additions for 2014 is $52,000 and his limit on elective deferrals is $17,500. Tax back Because elective deferrals are the only contributions made to Floyd's account, the maximum amount that can be contributed to a 403(b) account on Floyd's behalf in 2014 is $17,500, the lesser of both limits. Tax back Table 4-2. Tax back Worksheet 1. Tax back Maximum Amount Contributable (MAC) Note. Tax back Use this worksheet to figure your MAC. Tax back Part I. Tax back Limit on Annual Additions     1. Tax back Enter your includible compensation for your most recent year of service 1. Tax back $70,475 2. Tax back Maximum: For 2013 enter $51,000 For 2014 enter $52,000 2. Tax back 52,000 3. Tax back Enter the lesser of line 1 or line 2. Tax back This is your limit on annual additions 3. Tax back 52,000   Caution: If you had only nonelective contributions, skip Part II and enter the amount from line 3 on line 18. Tax back     Part II. Tax back Limit on Elective Deferrals     4. Tax back Maximum contribution: For 2013, enter $17,500 For 2014, enter $17,500 4. Tax back 17,500   Note. Tax back If you have at least 15 years of service with a qualifying organization, complete lines 5 through 17. Tax back If not, enter zero (-0-) on line 16 and go to line 17. Tax back     5. Tax back Amount per year of service 5. Tax back 5,000 6. Tax back Enter your years of service 6. Tax back   7. Tax back Multiply line 5 by line 6 7. Tax back   8. Tax back Enter the total of all elective deferrals made for you by the qualifying organization for prior years 8. Tax back   9. Tax back Subtract line 8 from line 7. Tax back If zero or less, enter zero (-0-) 9. Tax back   10. Tax back Maximum increase in limit for long service 10. Tax back 15,000 11. Tax back Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year rule 11. Tax back   12. Tax back Enter the aggregate amount of all designated Roth contributions permitted for prior years under the 15-year rule 12. Tax back   13. Tax back Add lines 11 and 12 13. Tax back   14. Tax back Subtract line 13 from line 10 14. Tax back   15. Tax back Maximum additional contributions 15. Tax back 3,000 16. Tax back Enter the least of lines 9, 14, or 15. Tax back This is your increase in the limit for long service 16. Tax back -0- 17. Tax back Add lines 4 and 16. Tax back This is your limit on elective deferrals 17. Tax back 17,500   Part III. Tax back Maximum Amount Contributable     18. Tax back If you had only nonelective contributions, enter the amount from line 3. Tax back This is your MAC. Tax back    If you had only elective deferrals, enter the lesser of lines 3 or 17. Tax back This is your MAC. Tax back    If you had both elective deferrals and nonelective contributions, enter the amount from line 3. Tax back This is your MAC. Tax back (Use the amount on line 17 to determine if you have excess elective deferrals as explained in chapter 7. Tax back ) 18. Tax back $17,500 Prev  Up  Next   Home   More Online Publications