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Www Irs Gov Formspubs

Www irs gov formspubs 8. Www irs gov formspubs   Foreign Insurance Taxes Table of Contents Premium. Www irs gov formspubs Tax is imposed on insurance policies issued by foreign insurers. Www irs gov formspubs Any person who makes, signs, issues, or sells any of the documents and instruments subject to the tax, or for whose use or benefit they are made, signed, issued, or sold, is liable for the tax. Www irs gov formspubs The following tax rates apply to each dollar (or fraction thereof) of the premium paid. Www irs gov formspubs Casualty insurance and indemnity, fidelity, and surety bonds: 4 cents. Www irs gov formspubs For example, on a premium payment of $10. Www irs gov formspubs 10, the tax is 44 cents. Www irs gov formspubs Life, sickness, and accident insurance, and annuity contracts: 1 cent. Www irs gov formspubs For example, on a premium payment of $10. Www irs gov formspubs 10, the tax is 11 cents. Www irs gov formspubs Reinsurance policies covering any of the taxable contracts described in items (1) and (2): 1 cent. Www irs gov formspubs However, the tax does not apply to casualty insurance premiums paid to foreign insurers for coverage of export goods in transit to foreign destinations. Www irs gov formspubs Premium. Www irs gov formspubs   Premium means the agreed price or consideration for assuming and carrying the risk or obligation. Www irs gov formspubs It includes any additional charge or assessment payable under the contract, whether in one sum or installments. Www irs gov formspubs If premiums are refunded, claim the tax paid on those premiums as an overpayment against tax due on other premiums paid or file a claim for refund. Www irs gov formspubs When liability attaches. Www irs gov formspubs   The liability for this tax attaches when the premium payment is transferred to the foreign insurer or reinsurer (including transfers to any bank, trust fund, or similar recipient designated by the foreign insurer or reinsurer) or to any nonresident agent, solicitor, or broker. Www irs gov formspubs A person can pay the tax before the liability attaches if the person keeps records consistent with that practice. Www irs gov formspubs Who must file. Www irs gov formspubs   The person who pays the premium to the foreign insurer (or to any nonresident person such as a foreign broker) must pay the tax and file the return. Www irs gov formspubs Otherwise, any person who issued or sold the policy, or who is insured under the policy, is required to pay the tax and file the return. Www irs gov formspubs    The person liable for this tax must keep accurate records that identify each policy or instrument subject to tax. Www irs gov formspubs These records must clearly establish the type of policy or instrument, the gross premium paid, the identity of the insured and insurer, and the total premium charged. Www irs gov formspubs If the premium is to be paid in installments, the records must also establish the amount and anniversary date of each installment. Www irs gov formspubs   The records must be kept at the place of business or other convenient location for at least 3 years after the later of the date any part of the tax became due, or the date any part of the tax was paid. Www irs gov formspubs During this period, the records must be readily accessible to the IRS. Www irs gov formspubs   The person having control or possession of a policy or instrument subject to this tax must keep the policy for at least 3 years after the date any part of the tax on it was paid. Www irs gov formspubs For information on reinsurance premiums paid from one foreign insurer to another foreign insurer, see Rev. Www irs gov formspubs Rul. Www irs gov formspubs 2008-15. Www irs gov formspubs You can find Rev. Www irs gov formspubs Rul. Www irs gov formspubs 2008-15 on page 633 of I. Www irs gov formspubs R. Www irs gov formspubs B. Www irs gov formspubs 2008-12 at www. Www irs gov formspubs irs. Www irs gov formspubs gov/pub/irs-irbs/irb08-12. Www irs gov formspubs pdf. Www irs gov formspubs Treaty-based positions under IRC 6114. Www irs gov formspubs   You may have to file an annual report disclosing the amount of premiums exempt from United States excise tax as a result of the application of a treaty with the United States that overrides (or otherwise modifies) any provision of the Internal Revenue Code. Www irs gov formspubs   Attach any disclosure statement to the first quarter Form 720. Www irs gov formspubs You may be able to use Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), as a disclosure statement. Www irs gov formspubs See the Instructions for Form 720 for information on how and where to file. Www irs gov formspubs   See Revenue Procedure 92-14 in Cumulative Bulletin 1992-1 for procedures you can use to claim a refund of this tax under certain U. Www irs gov formspubs S. Www irs gov formspubs treaties. Www irs gov formspubs Prev  Up  Next   Home   More Online Publications
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The Www Irs Gov Formspubs

Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Www irs gov formspubs Any forgiven tax liability owed to the IRS will not have to be paid. Www irs gov formspubs Any forgiven tax liability that has already been paid will be refunded. Www irs gov formspubs (See Refund of Taxes Paid, later. Www irs gov formspubs ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Www irs gov formspubs Then read Amount of Tax Forgiven. Www irs gov formspubs Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Www irs gov formspubs Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Www irs gov formspubs See Minimum Amount of Relief later under Amount of Tax Forgiven. Www irs gov formspubs Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Www irs gov formspubs Oklahoma City attack. Www irs gov formspubs   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. Www irs gov formspubs Example 1. Www irs gov formspubs A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Www irs gov formspubs His income tax is forgiven for 1994 and 1995. Www irs gov formspubs Example 2. Www irs gov formspubs A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Www irs gov formspubs She subsequently died of her wounds in 1996. Www irs gov formspubs Her income tax is forgiven for 1994, 1995, and 1996. Www irs gov formspubs September 11 attacks and anthrax attacks. Www irs gov formspubs   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. Www irs gov formspubs Example 1. Www irs gov formspubs A Pentagon employee died in the September 11 attack. Www irs gov formspubs Her income tax is forgiven for 2000 and 2001. Www irs gov formspubs Example 2. Www irs gov formspubs A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Www irs gov formspubs His income tax liability is forgiven for 2000, 2001, and 2002. Www irs gov formspubs Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Www irs gov formspubs On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Www irs gov formspubs To figure the tax to be forgiven, use the following worksheets. Www irs gov formspubs Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Www irs gov formspubs Use Worksheet B for any eligible year the decedent filed a joint return. Www irs gov formspubs See the illustrated Worksheet B near the end of this publication. Www irs gov formspubs Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Www irs gov formspubs Instead, complete Worksheet C and file a return for the decedent's last tax year. Www irs gov formspubs See Minimum Amount of Relief, later. Www irs gov formspubs If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Www irs gov formspubs In English–7 a. Www irs gov formspubs m. Www irs gov formspubs to 10 p. Www irs gov formspubs m. Www irs gov formspubs local time. Www irs gov formspubs In Spanish–8 a. Www irs gov formspubs m. Www irs gov formspubs to 9:30 p. Www irs gov formspubs m. Www irs gov formspubs local time. Www irs gov formspubs Both spouses died. Www irs gov formspubs   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. Www irs gov formspubs Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Www irs gov formspubs If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Www irs gov formspubs However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Www irs gov formspubs 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. Www irs gov formspubs Residents of community property states. Www irs gov formspubs   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. Www irs gov formspubs 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. Www irs gov formspubs Worksheet B. Www irs gov formspubs 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. Www irs gov formspubs 1       2 Enter the decedent's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 2       3 Enter the decedent's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Www irs gov formspubs See the instructions. Www irs gov formspubs 4       5 Subtract line 4 from line 3. Www irs gov formspubs 5       6 Enter the surviving spouse's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 6       7 Enter the surviving spouse's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Www irs gov formspubs 8       9 Subtract line 8 from line 7. Www irs gov formspubs 9       10 Add lines 5 and 9. Www irs gov formspubs 10       11 Enter the total tax from the joint return. Www irs gov formspubs See Table 1 on page 5 for the line number for years before 2002. Www irs gov formspubs 11       12 Add lines 4 and 8. Www irs gov formspubs 12       13 Subtract line 12 from line 11. Www irs gov formspubs 13       14 Divide line 5 by line 10. Www irs gov formspubs Enter the result as a decimal. Www irs gov formspubs 14       15 Tax to be forgiven. Www irs gov formspubs Multiply line 13 by line 14 and enter the result. Www irs gov formspubs 15       Note. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs The IRS will determine the amount to be refunded. Www irs gov formspubs Worksheet B. Www irs gov formspubs 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. Www irs gov formspubs 1       2 Enter the decedent's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 2       3 Enter the decedent's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Www irs gov formspubs See the instructions. Www irs gov formspubs 4       5 Subtract line 4 from line 3. Www irs gov formspubs 5       6 Enter the surviving spouse's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 6       7 Enter the surviving spouse's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Www irs gov formspubs 8       9 Subtract line 8 from line 7. Www irs gov formspubs 9       10 Add lines 5 and 9. Www irs gov formspubs 10       11 Enter the total tax from the joint return. Www irs gov formspubs See Table 1 on page 5 for the line number for years before 2002. Www irs gov formspubs 11       12 Add lines 4 and 8. Www irs gov formspubs 12       13 Subtract line 12 from line 11. Www irs gov formspubs 13       14 Divide line 5 by line 10. Www irs gov formspubs Enter the result as a decimal. Www irs gov formspubs 14       15 Tax to be forgiven. Www irs gov formspubs Multiply line 13 by line 14 and enter the result. Www irs gov formspubs 15       Note. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs The IRS will determine the amount to be refunded. Www irs gov formspubs Instructions for Worksheet B Table 1. Www irs gov formspubs Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Www irs gov formspubs * 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. Www irs gov formspubs ** File Form 4506 to get a transcript of the decedent's account. Www irs gov formspubs Table 1. Www irs gov formspubs Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Www irs gov formspubs * 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. Www irs gov formspubs ** File Form 4506 to get a transcript of the decedent's account. Www irs gov formspubs Lines 2 and 6. Www irs gov formspubs   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Www irs gov formspubs   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Www irs gov formspubs Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Www irs gov formspubs 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. Www irs gov formspubs   Allocate business deductions to the owner of the business. Www irs gov formspubs 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. Www irs gov formspubs Lines 3 and 7. Www irs gov formspubs   Figure the total tax as if a separate return had been filed. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs   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. Www irs gov formspubs If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Www irs gov formspubs 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. Www irs gov formspubs Line 4. Www irs gov formspubs   Enter the total, if any, of the following taxes. Www irs gov formspubs Self-employment tax. Www irs gov formspubs Social security and Medicare tax on tip income not reported to employer. Www irs gov formspubs Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Www irs gov formspubs Tax on excess accumulation in qualified retirement plans. Www irs gov formspubs Household employment taxes. Www irs gov formspubs Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Www irs gov formspubs Tax on golden parachute payments. Www irs gov formspubs Minimum Amount of Relief The minimum amount of relief is $10,000. Www irs gov formspubs 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. Www irs gov formspubs The IRS will refund the difference as explained under Refund of Taxes Paid. Www irs gov formspubs Use Worksheet C to figure the additional tax payment. Www irs gov formspubs But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Www irs gov formspubs Example 1. Www irs gov formspubs An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Www irs gov formspubs The $6,400 is eligible for forgiveness. Www irs gov formspubs The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Www irs gov formspubs Example 2. Www irs gov formspubs A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Www irs gov formspubs The IRS will treat $10,000 as a tax payment for 2001. Www irs gov formspubs Income received after date of death. Www irs gov formspubs   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. Www irs gov formspubs Examples are the final paycheck or dividends on stock owned by the decedent. Www irs gov formspubs 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). Www irs gov formspubs Nonqualifying income. Www irs gov formspubs   The following income is not exempt from tax. Www irs gov formspubs The tax on it is not eligible for forgiveness. Www irs gov formspubs Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Www irs gov formspubs Amounts that would not have been payable but for an action taken after September 11, 2001. Www irs gov formspubs The following are examples of nonqualifying income. Www irs gov formspubs Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs Interest on savings bonds cashed by the beneficiary of the decedent. Www irs gov formspubs If you are responsible for the estate of a decedent, see Publication 559. Www irs gov formspubs Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Www irs gov formspubs Instructions for lines 2–9 of Worksheet C. Www irs gov formspubs   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. Www irs gov formspubs To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Www irs gov formspubs Or, if special requirements are met, you can use the alternative computation instead. Www irs gov formspubs See Alternative computation, later. Www irs gov formspubs   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. Www irs gov formspubs Use Form 1041 to figure what the taxable income would be without including the exempt income. Www irs gov formspubs 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)). Www irs gov formspubs Alternative computation. Www irs gov formspubs   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. Www irs gov formspubs 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. Www irs gov formspubs The estate claimed an income distribution deduction on line 18 (Form 1041). Www irs gov formspubs Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs Complete the rest of Worksheet C to determine the additional payment allowed. Www irs gov formspubs Worksheet C. Www irs gov formspubs Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Www irs gov formspubs Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Www irs gov formspubs 1 Minimum relief amount. Www irs gov formspubs Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Www irs gov formspubs 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Www irs gov formspubs 3       4 Add lines 2 and 3. Www irs gov formspubs 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Www irs gov formspubs (See Income received after date of death on page 5. Www irs gov formspubs ) 5       6 Add lines 4 and 5. Www irs gov formspubs 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Www irs gov formspubs 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Www irs gov formspubs 8       9 Tax on exempt income. Www irs gov formspubs Subtract line 8 from line 7. Www irs gov formspubs 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Www irs gov formspubs If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Www irs gov formspubs 10       11 Add lines 9 and 10. Www irs gov formspubs 11   12 Additional payment allowed. Www irs gov formspubs If line 11 is $10,000 or more, enter -0- and stop here. Www irs gov formspubs No additional amount is allowed as a tax payment. Www irs gov formspubs Otherwise, subtract line 11 from line 1 and enter the result. Www irs gov formspubs 12   Note. Www irs gov formspubs The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Www irs gov formspubs 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. Www irs gov formspubs If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Www irs gov formspubs Write "Sec. Www irs gov formspubs 692(d)(2) Payment" and the amount to the right of the entry space. Www irs gov formspubs Also indicate whether a Form 1041 is being filed for the decedent's estate. Www irs gov formspubs If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Www irs gov formspubs Write “Sec. Www irs gov formspubs 692(d)(2) Payment” on the dotted line to the left of the entry space. Www irs gov formspubs Worksheet C. Www irs gov formspubs Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Www irs gov formspubs Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Www irs gov formspubs 1 Minimum relief amount. Www irs gov formspubs Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Www irs gov formspubs 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Www irs gov formspubs 3       4 Add lines 2 and 3. Www irs gov formspubs 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Www irs gov formspubs (See Income received after date of death on page 5. Www irs gov formspubs ) 5       6 Add lines 4 and 5. Www irs gov formspubs 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Www irs gov formspubs 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Www irs gov formspubs 8       9 Tax on exempt income. Www irs gov formspubs Subtract line 8 from line 7. Www irs gov formspubs 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Www irs gov formspubs If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Www irs gov formspubs 10       11 Add lines 9 and 10. Www irs gov formspubs 11   12 Additional payment allowed. Www irs gov formspubs If line 11 is $10,000 or more, enter -0- and stop here. Www irs gov formspubs No additional amount is allowed as a tax payment. Www irs gov formspubs Otherwise, subtract line 11 from line 1 and enter the result. Www irs gov formspubs 12   Note. Www irs gov formspubs The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Www irs gov formspubs 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. Www irs gov formspubs If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Www irs gov formspubs Write "Sec. Www irs gov formspubs 692(d)(2) Payment" and the amount to the right of the entry space. Www irs gov formspubs Also indicate whether a Form 1041 is being filed for the decedent's estate. Www irs gov formspubs If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Www irs gov formspubs Write “Sec. Www irs gov formspubs 692(d)(2) Payment” on the dotted line to the left of the entry space. Www irs gov formspubs Worksheet D. Www irs gov formspubs 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. Www irs gov formspubs (See Income received after date of death on page 5. Www irs gov formspubs ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Www irs gov formspubs 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Www irs gov formspubs 5   6 Estate's tax on exempt income. Www irs gov formspubs Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Www irs gov formspubs Figure the total tax that would have been payable by all beneficiaries. Www irs gov formspubs Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Www irs gov formspubs Add the amounts by which each beneficiary's income tax is increased. Www irs gov formspubs 7   8 Add lines 6 and 7. Www irs gov formspubs Enter this amount on line 9 of Worksheet C. Www irs gov formspubs 8   Worksheet D. Www irs gov formspubs 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. Www irs gov formspubs (See Income received after date of death on page 5. Www irs gov formspubs ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Www irs gov formspubs 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Www irs gov formspubs 5   6 Estate's tax on exempt income. Www irs gov formspubs Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Www irs gov formspubs Figure the total tax that would have been payable by all beneficiaries. Www irs gov formspubs Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Www irs gov formspubs Add the amounts by which each beneficiary's income tax is increased. Www irs gov formspubs 7   8 Add lines 6 and 7. Www irs gov formspubs Enter this amount on line 9 of Worksheet C. Www irs gov formspubs 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Www irs gov formspubs Income tax liabilities that have been paid. Www irs gov formspubs Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Www irs gov formspubs See Minimum Amount of Relief, earlier. Www irs gov formspubs Example 1. Www irs gov formspubs A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Www irs gov formspubs The total, $14,000, is eligible for tax forgiveness. Www irs gov formspubs However, he paid only $13,000 of that amount. Www irs gov formspubs The IRS will refund the $13,000 paid. Www irs gov formspubs Example 2. Www irs gov formspubs A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Www irs gov formspubs The child qualifies for the minimum relief of $10,000. Www irs gov formspubs The $10,000 is treated as a tax payment for 2001 and will be refunded. Www irs gov formspubs Period for filing a claim for credit or refund. Www irs gov formspubs   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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs Extension of time for victims of Oklahoma City attack. Www irs gov formspubs   The period described above has been extended for victims of the Oklahoma City attack. Www irs gov formspubs Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Www irs gov formspubs How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Www irs gov formspubs 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. Www irs gov formspubs Return required but not yet filed. Www irs gov formspubs   File Form 1040 if the decedent was a U. Www irs gov formspubs S. Www irs gov formspubs citizen or resident. Www irs gov formspubs File Form 1040NR if the decedent was a nonresident alien. Www irs gov formspubs A nonresident alien is someone who is not a U. Www irs gov formspubs S. Www irs gov formspubs citizen or resident. Www irs gov formspubs Return required and already filed. Www irs gov formspubs   File a separate Form 1040X for each year you are claiming tax relief. Www irs gov formspubs Return not required and not filed. Www irs gov formspubs   File Form 1040 only for the year of death if the decedent was a U. Www irs gov formspubs S. Www irs gov formspubs citizen or resident. Www irs gov formspubs File Form 1040NR if the decedent was a nonresident alien. Www irs gov formspubs Return not required but already filed. Www irs gov formspubs   File Form 1040X only for the year of death. Www irs gov formspubs How to complete the returns. Www irs gov formspubs   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. Www irs gov formspubs Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Www irs gov formspubs If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Www irs gov formspubs 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. Www irs gov formspubs Also, please write one of the following across the top of page 1 of each return. Www irs gov formspubs KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Www irs gov formspubs ” 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. Www irs gov formspubs If you need a copy, use Form 4506. Www irs gov formspubs The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Www irs gov formspubs Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Www irs gov formspubs Send Form 4506 to the address shown in the form instructions. Www irs gov formspubs Taxpayer identification number. Www irs gov formspubs   A taxpayer identification number must be furnished on the decedent's returns. Www irs gov formspubs This is usually the decedent's social security number (SSN). Www irs gov formspubs However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Www irs gov formspubs If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Www irs gov formspubs S. Www irs gov formspubs income tax return for any tax year, do not apply for an ITIN. Www irs gov formspubs You may claim a refund by filing Form 1040NR without an SSN or ITIN. Www irs gov formspubs Necessary Documents Please attach the following documents to the return or amended return. Www irs gov formspubs Proof of death. Www irs gov formspubs   Attach a copy of the death certificate. Www irs gov formspubs If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Www irs gov formspubs Form 1310. Www irs gov formspubs   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Www irs gov formspubs You are a surviving spouse filing an original or amended joint return with the decedent. Www irs gov formspubs 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. Www irs gov formspubs A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Www irs gov formspubs A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Www irs gov formspubs      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. Www irs gov formspubs Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Www irs gov formspubs Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Www irs gov formspubs Use one of the addresses shown below. Www irs gov formspubs Where you file the returns or claims depends on whether you use the U. Www irs gov formspubs S. Www irs gov formspubs Postal Service or a private delivery service. Www irs gov formspubs Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Www irs gov formspubs U. Www irs gov formspubs S. Www irs gov formspubs Postal Service. Www irs gov formspubs   If you use the U. Www irs gov formspubs S. Www irs gov formspubs Postal Service, file these returns and claims at the following address. Www irs gov formspubs Internal Revenue Service P. Www irs gov formspubs O. Www irs gov formspubs Box 4053 Woburn, MA 01888 Private delivery service. Www irs gov formspubs   Private delivery services cannot deliver items to P. Www irs gov formspubs O. Www irs gov formspubs boxes. Www irs gov formspubs If you use a private delivery service, file these returns and claims at the following address. Www irs gov formspubs Internal Revenue Service Stop 661 310 Lowell St. Www irs gov formspubs Andover, MA 01810 Designated private delivery services. Www irs gov formspubs   You can use the following private delivery services to file these returns and claims. Www irs gov formspubs Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Www irs gov formspubs DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Www irs gov formspubs Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Www irs gov formspubs United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Www irs gov formspubs M. Www irs gov formspubs , UPS Worldwide Express Plus, and UPS Worldwide Express. Www irs gov formspubs The private delivery service can tell you how to get written proof of the mailing date. Www irs gov formspubs Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Www irs gov formspubs September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Www irs gov formspubs Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Www irs gov formspubs These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Www irs gov formspubs No withholding applies to these payments. Www irs gov formspubs Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Www irs gov formspubs Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Www irs gov formspubs Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Www irs gov formspubs (A personal residence can be a rented residence or one you own. Www irs gov formspubs ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Www irs gov formspubs Qualified disaster relief payments also include the following. Www irs gov formspubs 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. Www irs gov formspubs Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Www irs gov formspubs If that period has expired, you are granted an extension. Www irs gov formspubs You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Www irs gov formspubs On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Www irs gov formspubs 102(b)(2). Www irs gov formspubs ” 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. Www irs gov formspubs The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Www irs gov formspubs 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. Www irs gov formspubs Bureau of Justice Assistance payments. Www irs gov formspubs   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. Www irs gov formspubs Government plan annuity. Www irs gov formspubs   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. Www irs gov formspubs This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Www irs gov formspubs For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Www irs gov formspubs More information. Www irs gov formspubs   For more information, see Publication 559. Www irs gov formspubs Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Www irs gov formspubs 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. Www irs gov formspubs 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). Www irs gov formspubs Affected taxpayers. Www irs gov formspubs   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Www irs gov formspubs Any individual whose main home is located in a covered area (defined later). Www irs gov formspubs Any business entity or sole proprietor whose principal place of business is located in a covered area. Www irs gov formspubs Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Www irs gov formspubs The main home or principal place of business does not have to be located in the covered area. Www irs gov formspubs Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Www irs gov formspubs Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Www irs gov formspubs The spouse on a joint return with a taxpayer who is eligible for postponements. Www irs gov formspubs Any other person determined by the IRS to be affected by a terrorist attack. Www irs gov formspubs Covered area. Www irs gov formspubs   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. Www irs gov formspubs Abatement of interest. Www irs gov formspubs   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Www irs gov formspubs 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. Www irs gov formspubs You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Www irs gov formspubs The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Www irs gov formspubs The due date (with extensions) for the 2000 return. Www irs gov formspubs For more information about disaster area losses, see Publication 547. Www irs gov formspubs 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. Www irs gov formspubs The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Www irs gov formspubs The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Www irs gov formspubs These credits may reduce or eliminate the estate tax due. Www irs gov formspubs 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. Www irs gov formspubs Recovery from the September 11th Victim Compensation Fund. Www irs gov formspubs   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Www irs gov formspubs 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. Www irs gov formspubs Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Www irs gov formspubs Which estates must file a return. Www irs gov formspubs   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Www irs gov formspubs S. Www irs gov formspubs citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Www irs gov formspubs Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Www irs gov formspubs Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Www irs gov formspubs S. Www irs gov formspubs Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Www irs gov formspubs Where to file. Www irs gov formspubs   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. Www irs gov formspubs Internal Revenue Service E & G Department/Stop 824T 201 W. Www irs gov formspubs Rivercenter Blvd. Www irs gov formspubs Covington, KY 41011 More information. Www irs gov formspubs   For more information on the federal estate tax, see the instructions for Form 706. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Www irs gov formspubs For information about these requirements, see Internal Revenue Code section 5891. Www irs gov formspubs Worksheet B Illustrated. Www irs gov formspubs 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. Www irs gov formspubs 1 2000 2001   2 Enter the decedent's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 2 $17,259 $14,295   3 Enter the decedent's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Www irs gov formspubs See the instructions. Www irs gov formspubs 4 3,532 3,109   5 Subtract line 4 from line 3. Www irs gov formspubs 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions for line 2. Www irs gov formspubs 6 29,025 29,850   7 Enter the surviving spouse's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Www irs gov formspubs 8 0 0   9 Subtract line 8 from line 7. Www irs gov formspubs 9 5,277 5,391   10 Add lines 5 and 9. Www irs gov formspubs 10 7,868 7,532   11 Enter the total tax from the joint return. Www irs gov formspubs See Table 1 on page 5 for the line number for years before 2002. Www irs gov formspubs 11 10,789 9,728   12 Add lines 4 and 8. Www irs gov formspubs 12 3,532 3,109   13 Subtract line 12 from line 11. Www irs gov formspubs 13 7,257 6,619   14 Divide line 5 by line 10. Www irs gov formspubs Enter the result as a decimal. Www irs gov formspubs 14 . Www irs gov formspubs 329 . Www irs gov formspubs 284   15 Tax to be forgiven. Www irs gov formspubs Multiply line 13 by line 14 and enter the result. Www irs gov formspubs 15 $2,388 $1,880   Note. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs The IRS will determine the amount to be refunded. Www irs gov formspubs Worksheet B Illustrated. Www irs gov formspubs 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. Www irs gov formspubs 1 2000 2001   2 Enter the decedent's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 2 $17,259 $14,295   3 Enter the decedent's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Www irs gov formspubs See the instructions. Www irs gov formspubs 4 3,532 3,109   5 Subtract line 4 from line 3. Www irs gov formspubs 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions for line 2. Www irs gov formspubs 6 29,025 29,850   7 Enter the surviving spouse's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Www irs gov formspubs 8 0 0   9 Subtract line 8 from line 7. Www irs gov formspubs 9 5,277 5,391   10 Add lines 5 and 9. Www irs gov formspubs 10 7,868 7,532   11 Enter the total tax from the joint return. Www irs gov formspubs See Table 1 on page 5 for the line number for years before 2002. Www irs gov formspubs 11 10,789 9,728   12 Add lines 4 and 8. Www irs gov formspubs 12 3,532 3,109   13 Subtract line 12 from line 11. Www irs gov formspubs 13 7,257 6,619   14 Divide line 5 by line 10. Www irs gov formspubs Enter the result as a decimal. Www irs gov formspubs 14 . Www irs gov formspubs 329 . Www irs gov formspubs 284   15 Tax to be forgiven. Www irs gov formspubs Multiply line 13 by line 14 and enter the result. Www irs gov formspubs 15 $2,388 $1,880   Note. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs The IRS will determine the amount to be refunded. Www irs gov formspubs Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Www irs gov formspubs They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Www irs gov formspubs The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Www irs gov formspubs After the husband died, his estate received income of $4,000. Www irs gov formspubs Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Www irs gov formspubs This net profit is exempt from income tax as explained earlier under Income received after date of death. Www irs gov formspubs The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Www irs gov formspubs To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Www irs gov formspubs She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Www irs gov formspubs To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Www irs gov formspubs To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Www irs gov formspubs   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. Www irs gov formspubs Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Www irs gov formspubs Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Www irs gov formspubs 1 Minimum relief amount. Www irs gov formspubs Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Www irs gov formspubs 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) . Www irs gov formspubs 3 0     4 Add lines 2 and 3. Www irs gov formspubs 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Www irs gov formspubs (See Income received after date of death on page 5. Www irs gov formspubs ) 5 1,000     6 Add lines 4 and 5. Www irs gov formspubs 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Www irs gov formspubs 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Www irs gov formspubs 8 435     9 Tax on exempt income. Www irs gov formspubs Subtract line 8 from line 7. Www irs gov formspubs 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Www irs gov formspubs If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Www irs gov formspubs 10 4,268     11 Add lines 9 and 10. Www irs gov formspubs 11 $4,543 12 Additional payment allowed. Www irs gov formspubs If line 11 is $10,000 or more, enter -0- and stop here. Www irs gov formspubs No additional amount is allowed as a tax payment. Www irs gov formspubs Otherwise, subtract line 11 from line 1 and enter the result. Www irs gov formspubs 12 $5,457 Note. Www irs gov formspubs The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Www irs gov formspubs 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. Www irs gov formspubs If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Www irs gov formspubs Write "Sec. Www irs gov formspubs 692(d)(2) Payment" and the amount to the right of the entry space. Www irs gov formspubs Also indicate whether a Form 1041 is being filed for the decedent's estate. Www irs gov formspubs If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Www irs gov formspubs Write “Sec. Www irs gov formspubs 692(d)(2) Payment” on the dotted line to the left of the entry space. Www irs gov formspubs Worksheet C Illustrated. Www irs gov formspubs Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Www irs gov formspubs Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Www irs gov formspubs 1 Minimum relief amount. Www irs gov formspubs Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Www irs gov formspubs 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) . Www irs gov formspubs 3 0     4 Add lines 2 and 3. Www irs gov formspubs 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Www irs gov formspubs (See Income received after date of death on page 5. Www irs gov formspubs ) 5 1,000     6 Add lines 4 and 5. Www irs gov formspubs 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Www irs gov formspubs 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Www irs gov formspubs 8 435     9 Tax on exempt income. Www irs gov formspubs Subtract line 8 from line 7. Www irs gov formspubs 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Www irs gov formspubs If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Www irs gov formspubs 10 4,268     11 Add lines 9 and 10. Www irs gov formspubs 11 $4,543 12 Additional payment allowed. Www irs gov formspubs If line 11 is $10,000 or more, enter -0- and stop here. Www irs gov formspubs No additional amount is allowed as a tax payment. Www irs gov formspubs Otherwise, subtract line 11 from line 1 and enter the result. Www irs gov formspubs 12 $5,457 Note. Www irs gov formspubs The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Www irs gov formspubs 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. Www irs gov formspubs If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Www irs gov formspubs Write "Sec. Www irs gov formspubs 692(d)(2) Payment" and the amount to the right of the entry space. Www irs gov formspubs Also indicate whether a Form 1041 is being filed for the decedent's estate. Www irs gov formspubs If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Www irs gov formspubs Write “Sec. Www irs gov formspubs 692(d)(2) Payment” on the dotted line to the left of the entry space. Www irs gov formspubs Additional Worksheets The following additional worksheets are provided for your convenience. Www irs gov formspubs Worksheet A. Www irs gov formspubs 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. Www irs gov formspubs 1       2 Enter the total tax from the decedent's income tax return. Www irs gov formspubs See Table 1 on page 5 for the line number for years before 2002. Www irs gov formspubs 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Www irs gov formspubs (These taxes are not eligible for forgiveness. Www irs gov formspubs )           a Self-employment tax. Www irs gov formspubs 3a         b Social security and Medicare tax on tip income not reported to employer. Www irs gov formspubs 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Www irs gov formspubs 3c         d Tax on excess accumulation in qualified retirement plans. Www irs gov formspubs 3d         e Household employment taxes. Www irs gov formspubs 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Www irs gov formspubs 3f         g Tax on golden parachute payments. Www irs gov formspubs 3g       4 Add lines 3a through 3g. Www irs gov formspubs 4       5 Tax to be forgiven. Www irs gov formspubs Subtract line 4 from line 2. Www irs gov formspubs 5       Note. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs The IRS will determine the amount to be refunded. Www irs gov formspubs Worksheet A. Www irs gov formspubs 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. Www irs gov formspubs 1       2 Enter the total tax from the decedent's income tax return. Www irs gov formspubs See Table 1 on page 5 for the line number for years before 2002. Www irs gov formspubs 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Www irs gov formspubs (These taxes are not eligible for forgiveness. Www irs gov formspubs )           a Self-employment tax. Www irs gov formspubs 3a         b Social security and Medicare tax on tip income not reported to employer. Www irs gov formspubs 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Www irs gov formspubs 3c         d Tax on excess accumulation in qualified retirement plans. Www irs gov formspubs 3d         e Household employment taxes. Www irs gov formspubs 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Www irs gov formspubs 3f         g Tax on golden parachute payments. Www irs gov formspubs 3g       4 Add lines 3a through 3g. Www irs gov formspubs 4       5 Tax to be forgiven. Www irs gov formspubs Subtract line 4 from line 2. Www irs gov formspubs 5       Note. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs The IRS will determine the amount to be refunded. Www irs gov formspubs Worksheet B. Www irs gov formspubs 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. Www irs gov formspubs 1       2 Enter the decedent's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 2       3 Enter the decedent's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Www irs gov formspubs See the instructions. Www irs gov formspubs 4       5 Subtract line 4 from line 3. Www irs gov formspubs 5       6 Enter the surviving spouse's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 6       7 Enter the surviving spouse's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Www irs gov formspubs 8       9 Subtract line 8 from line 7. Www irs gov formspubs 9       10 Add lines 5 and 9. Www irs gov formspubs 10       11 Enter the total tax from the joint return. Www irs gov formspubs See Table 1 on page 5 for the line number for years before 2002. Www irs gov formspubs 11       12 Add lines 4 and 8. Www irs gov formspubs 12       13 Subtract line 12 from line 11. Www irs gov formspubs 13       14 Divide line 5 by line 10. Www irs gov formspubs Enter the result as a decimal. Www irs gov formspubs 14       15 Tax to be forgiven. Www irs gov formspubs Multiply line 13 by line 14 and enter the result. Www irs gov formspubs 15       Note. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs The IRS will determine the amount to be refunded. Www irs gov formspubs Worksheet B. Www irs gov formspubs 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. Www irs gov formspubs 1       2 Enter the decedent's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 2       3 Enter the decedent's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Www irs gov formspubs See the instructions. Www irs gov formspubs 4       5 Subtract line 4 from line 3. Www irs gov formspubs 5       6 Enter the surviving spouse's taxable income. Www irs gov formspubs Figure taxable income as if a separate return had been filed. Www irs gov formspubs See the instructions. Www irs gov formspubs 6       7 Enter the surviving spouse's total tax. Www irs gov formspubs See the instructions. Www irs gov formspubs 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Www irs gov formspubs 8       9 Subtract line 8 from line 7. Www irs gov formspubs 9       10 Add lines 5 and 9. Www irs gov formspubs 10       11 Enter the total tax from the joint return. Www irs gov formspubs See Table 1 on page 5 for the line number for years before 2002. Www irs gov formspubs 11       12 Add lines 4 and 8. Www irs gov formspubs 12       13 Subtract line 12 from line 11. Www irs gov formspubs 13       14 Divide line 5 by line 10. Www irs gov formspubs Enter the result as a decimal. Www irs gov formspubs 14       15 Tax to be forgiven. Www irs gov formspubs Multiply line 13 by line 14 and enter the result. Www irs gov formspubs 15       Note. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs 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. Www irs gov formspubs The IRS will determine the amount to be refunded. Www irs gov formspubs Worksheet C. Www irs gov formspubs Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Www irs gov formspubs Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Www irs gov formspubs 1 Minimum tax forgiveness. Www irs gov formspubs Note. Www irs gov formspubs Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Www irs gov formspubs 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Www irs gov formspubs 3       4 Add lines 2 and 3. Www irs gov formspubs 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Www irs gov formspubs (See Income received after date of death on page 5. Www irs gov formspubs ) 5       6 Add lines 4 and 5. Www irs gov formspubs 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Www irs gov formspubs 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Www irs gov formspubs 8       9 Tax on exempt income. Www irs gov formspubs Subtract line 8 from line 7. Www irs gov formspubs 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Www irs gov formspubs If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Www irs gov formspubs 10       11 Add lines 9 and 10. Www irs gov formspubs 11   12 Additional payment allowed. Www irs gov formspubs If line 11 is $10,000 or more, enter -0- and stop here. Www irs gov formspubs No additional amount is allowed as a tax payment. Www irs gov formspubs Otherwise, subtract line 11 from line 1 and enter the result. Www irs gov formspubs 12   Note. Www irs gov formspubs The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Www irs gov formspubs 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. Www irs gov formspubs If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Www irs gov formspubs Write "Sec. Www irs gov formspubs 692(d)(2) Payment" and the amount to the right of the entry space. Www irs gov formspubs Also indicate whether a Form 1041 is being filed for the decedent's estate. Www irs gov formspubs If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Www irs gov formspubs Write “Sec. Www irs gov formspubs 692(d)(2) Payment” on the dotted line to the left of the entry space. Www irs gov formspubs Worksheet C. Www irs gov formspubs Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Www irs gov formspubs Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Www irs gov formspubs 1 Minimum tax forgiveness. Www irs gov formspubs Note. Www irs gov formspubs Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Www irs gov formspubs 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Www irs gov formspubs 3       4 Add lines 2 and 3. Www irs gov formspubs 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Www irs gov formspubs (See Income received after date of death on page 5. Www irs gov formspubs ) 5       6 Add lines 4 and 5. Www irs gov formspubs 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Www irs gov formspubs 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Www irs gov formspubs 8       9 Tax on exempt income. Www irs gov formspubs Subtract line 8 from line 7. Www irs gov formspubs 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Www irs gov formspubs If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Www irs gov formspubs 10       11 Add lines 9 and 10. Www irs gov formspubs 11   12 Additional payment allowed. Www irs gov formspubs If line 11 is $10,000 or more, enter -0- and stop here. Www irs gov formspubs No additional amount is allowed as a tax payment. Www irs gov formspubs Otherwise, subtract line 11 from line 1 and enter the result. Www irs gov formspubs 12   Note. Www irs gov formspubs The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Www irs gov formspubs 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. Www irs gov formspubs If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Www irs gov formspubs Write "Sec. Www irs gov formspubs 692(d)(2) Payment" and the amount to the right of the entry space. Www irs gov formspubs Also indicate whether a Form 1041 is being filed for the decedent's estate. Www irs gov formspubs If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Www irs gov formspubs Write “Sec. Www irs gov formspubs 692(d)(2) Payment” on the dotted line to the left of the entry space. Www irs gov formspubs How To Get Tax Help Special IRS assistance. Www irs gov formspubs   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Www irs gov formspubs 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. Www irs gov formspubs Call 1–866–562–5227 Monday through Friday In English–7 a. Www irs gov formspubs m. Www irs gov formspubs to 10 p. Www irs gov formspubs m. Www irs gov formspubs local time In Spanish–8 a. Www irs gov formspubs m. Www irs gov formspubs to 9:30 p. Www irs gov formspubs m. Www irs gov formspubs local time   The IRS web site at www. Www irs gov formspubs irs. Www irs gov formspubs gov has notices and other tax relief information. Www irs gov formspubs Check it periodically for any new guidance or to see if Congress has enacted new legislation. Www irs gov formspubs   Business taxpayers affected by the attacks can e-mail their questions to corp. Www irs gov formspubs disaster. Www irs gov formspubs relief@irs. Www irs gov formspubs gov. Www irs gov formspubs   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Www irs gov formspubs fema. Www irs gov formspubs gov. Www irs gov formspubs Other help from the IRS. Www irs gov formspubs   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. Www irs gov formspubs By selecting the method that is best for you, you will have quick and easy access to tax help. Www irs gov formspubs Contacting your Taxpayer Advocate. Www irs gov formspubs   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Www irs gov formspubs   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. Www irs gov formspubs 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. Www irs gov formspubs   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Www irs gov formspubs Call the IRS at 1–800–829–1040. Www irs gov formspubs Call, write, or fax the Taxpayer Advocate office in your area. Www irs gov formspubs Call 1–800–829–4059 if you are a TTY/TDD user. Www irs gov formspubs   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Www irs gov formspubs Free tax services. Www irs gov formspubs   To find out what services are available, get Publication 910, Guide to Free Tax Services. Www irs gov formspubs It contains a list of free tax publications and an index of tax topics. Www irs gov formspubs It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Www irs gov formspubs Personal computer. Www irs gov formspubs With your personal computer and modem, you can access the IRS on the Internet at www. Www irs gov formspubs irs. Www irs gov formspubs gov. Www irs gov formspubs While visiting our web site, you can: Find answers to questions you may have. Www irs gov formspubs Download forms and publications or search for forms and pub