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1040 Ez Tax Table

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1040 ez tax table Publication 4492-B - Main Content Table of Contents DefinitionsMidwestern Disaster Areas Applicable Disaster Date Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Casualty and Theft LossesTime limit for making election. 1040 ez tax table Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesEmployee Retention Credit Employer Housing Credit and Exclusion Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 1040 ez tax table Definitions The following definitions are used throughout this publication. 1040 ez tax table Midwestern Disaster Areas A Midwestern disaster area is an area for which a major disaster was declared by the President during the period beginning on May 20, 2008, and ending on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, or Wisconsin, as a result of severe storms, tornadoes, or flooding that occurred on the applicable disaster date. 1040 ez tax table See Tables 1 and 2 for a list of the counties included in the Midwestern disaster areas. 1040 ez tax table Applicable Disaster Date The term “applicable disaster date” as used in this publication, refers to the date on which the severe storms, tornadoes, or flooding occurred in the Midwestern disaster areas. 1040 ez tax table You will need to know this date when using this publication for the various tax provisions. 1040 ez tax table Table 1 The counties listed in Table 1 below are eligible for all tax provisions shown in this publication. 1040 ez tax table Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 05/02/2008through05/12/2008 Arkansas Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline, and Van Buren. 1040 ez tax table 06/01/2008through07/22/2008 Illinois Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago. 1040 ez tax table 05/30/2008through06/27/2008 Indiana Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne. 1040 ez tax table 05/25/2008through08/13/2008 Iowa Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, Worth, and Wright. 1040 ez tax table 05/10/2008through05/11/2008 Missouri Barry, Jasper, and Newton. 1040 ez tax table 06/01/2008through08/13/2008 Missouri Adair, Andrew, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis, Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St. 1040 ez tax table Charles, Stone, Taney, Vernon, and Webster. 1040 ez tax table 05/22/2008through06/24/2008 Nebraska Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Platte, Richardson, Sarpy, and Saunders. 1040 ez tax table 06/05/2008through07/25/2008 Wisconsin Adams, Calumet, Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago. 1040 ez tax table *For more details, go to www. 1040 ez tax table fema. 1040 ez tax table gov Table 2 The counties listed in Table 2 below are eligible for all of the special tax provisions shown in this publication except the following. 1040 ez tax table Charitable Giving Incentives. 1040 ez tax table Net Operating Losses. 1040 ez tax table Education Credits. 1040 ez tax table Recapture of Federal Mortgage Subsidy. 1040 ez tax table Tax Relief for Temporary Relocation. 1040 ez tax table Employee Retention Credit. 1040 ez tax table Employer Housing Credit and Exclusion. 1040 ez tax table Demolition and Clean-up Costs. 1040 ez tax table Increase in Rehabilitation Credit. 1040 ez tax table Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 06/01/2008through07/22/2008 Illinois Greene, Madison, Monroe, Pike, Randolph, St. 1040 ez tax table Clair, and Scott. 1040 ez tax table 05/30/2008through06/27/2008 Indiana Benton, Boone, Fountain, Franklin, Jay, Montgomery, Ohio, Switzerland, Union, and Wabash. 1040 ez tax table 05/25/2008through08/13/2008 Iowa Carroll, Cherokee, Lyon, Palo Alto, Pocahontas, Taylor, and Wayne. 1040 ez tax table 05/22/2008through06/16/2008 Kansas Barber, Barton, Bourbon, Brown, Butler, Chautauqua, Cherokee, Clark, Clay, Comanche, Cowley, Crawford, Decatur, Dickinson, Edwards, Elk, Ellis, Ellsworth, Franklin, Gove, Graham, Harper, Haskell, Hodgeman, Jackson, Jewell, Kingman, Kiowa, Lane, Linn, Logan, Mitchell, Montgomery, Ness, Norton, Osborne, Pawnee, Phillips, Pratt, Reno, Republic, Riley, Rooks, Rush, Saline, Seward, Sheridan, Smith, Stafford, Sumner, Thomas, Trego, Wallace, and Wilson. 1040 ez tax table 06/06/2008through06/13/2008 Michigan Allegan, Barry, Eaton, Ingham, Lake, Manistee, Mason, Missaukee, Osceola, Ottawa, Saginaw, and Wexford. 1040 ez tax table 06/06/2008through06/12/2008 Minnesota Cook, Fillmore, Freeborn, Houston, Mower, and Nobles. 1040 ez tax table 06/01/2008through08/13/2008 Missouri Atchison, Audrain, Bates, Buchanan, Cape Girardeau, Carroll, Christian, Daviess, Grundy, Howard, Jefferson, Knox, Mercer, Miller, Mississippi, Morgan, New Madrid, Pemiscot, Perry, Pettis, Platte, Polk, Randolph, Ray, Saline, Schuyler, Scotland, Shelby, St. 1040 ez tax table Genevieve, St. 1040 ez tax table Louis, the Independent City of St. 1040 ez tax table Louis, Scott, Sullivan, and Worth. 1040 ez tax table 04/23/2008through04/26/2008 Nebraska Gage, Johnson, Morrill, Nemaha, and Pawnee. 1040 ez tax table 05/22/2008through06/24/2008 Nebraska Adams, Blaine, Boone, Boyd, Brown, Burt, Cass, Chase, Cherry, Cuming, Dundy, Fillmore, Frontier, Furnas, Garfield, Gosper, Greeley, Hall, Hayes, Howard, Johnson, Keya Paha, Lincoln, Logan, Loup, Merrick, McPherson, Morrill, Nance, Nemaha, Otoe, Phelps, Polk, Red Willow, Rock, Saline, Seward, Sherman, Stanton, Thayer, Thomas, Thurston, Valley, Webster, Wheeler, and York. 1040 ez tax table 06/27/2008 Nebraska Dodge, Douglas, Sarpy, and Saunders. 1040 ez tax table 06/05/2008through07/25/2008 Wisconsin Lafayette. 1040 ez tax table * For more details, go to www. 1040 ez tax table fema. 1040 ez tax table gov Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions This benefit applies only to the counties in Table 1. 1040 ez tax table Individuals. 1040 ez tax table   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% of adjusted gross income (AGI) limit. 1040 ez tax table A qualified contribution is a charitable contribution paid in cash or by check to a 50% limit organization if you make an election to have the 50% limit not apply to these contributions. 1040 ez tax table   A qualified contribution must also meet all of the following requirements. 1040 ez tax table Be paid after May 1, 2008, and before January 1, 2009. 1040 ez tax table The contribution must be for relief efforts in one or more Midwestern disaster areas. 1040 ez tax table Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. 1040 ez tax table   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. 1040 ez tax table You can carry over any contributions you are not able to deduct for 2008 because of this limit. 1040 ez tax table In 2009, the carryover of your unused qualified contributions is subject to the 50% of AGI limit. 1040 ez tax table Exception. 1040 ez tax table   Qualified contributions do not include contributions to certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund. 1040 ez tax table Corporations. 1040 ez tax table   A corporation can elect to deduct qualified cash contributions without regard to the 10% of taxable income limit if the contributions were paid after May 1, 2008, and before January 1, 2009, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund), for relief efforts in one or more Midwestern disaster areas. 1040 ez tax table Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. 1040 ez tax table The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. 1040 ez tax table Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% of taxable income limit. 1040 ez tax table Partners and shareholders. 1040 ez tax table   Each partner in a partnership and each shareholder in an S corporation must make a separate election to have the appropriate limit not apply. 1040 ez tax table More information. 1040 ez tax table   For more information, see Publication 526 or Publication 542, Corporations. 1040 ez tax table Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. 1040 ez tax table Standard Mileage Rate for Charitable Use of Vehicles This benefit applies only to the counties in Table 1. 1040 ez tax table The following are special standard mileage rates in effect for 2008 for the cost of operating your vehicle for providing charitable services related only to the severe storms, tornadoes, or flooding. 1040 ez tax table 36 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. 1040 ez tax table 41 cents per mile for the period July 1 through December 31, 2008. 1040 ez tax table Mileage Reimbursements to Charitable Volunteers This benefit applies only to the counties in Table 1. 1040 ez tax table You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger vehicle for the benefit of a qualified charitable organization in providing relief related to the severe storms, tornadoes, or flooding during the period beginning on the applicable disaster date, and ending on December 31, 2008. 1040 ez tax table You cannot claim a deduction or credit for amounts you exclude. 1040 ez tax table You must keep records of miles driven, time, place (or use), and purpose of the mileage. 1040 ez tax table The amount you can exclude cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. 1040 ez tax table 50. 1040 ez tax table 5 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. 1040 ez tax table 58. 1040 ez tax table 5 cents per mile for the period July 1 through December 31, 2008. 1040 ez tax table Casualty and Theft Losses This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table The following paragraphs explain changes to casualty and theft losses that were caused by the severe storms, tornadoes, or flooding in the Midwestern disaster areas. 1040 ez tax table For more information, see Publication 547. 1040 ez tax table Limits on personal casualty or theft losses. 1040 ez tax table   Losses of personal use property that arose in a Midwestern disaster area on or after the applicable disaster date are not subject to the $100 or 10% of AGI limits. 1040 ez tax table Qualifying losses include losses from casualties and thefts that arose in a Midwestern disaster area that were attributable to the severe storms, tornadoes, or flooding. 1040 ez tax table When completing Form 4684, do not include on line 17 any losses that arose in a Midwestern disaster area. 1040 ez tax table A loss arising in a Midwestern disaster area is not considered a loss attributable to a federally declared disaster for purposes of that line and cannot be added to your standard deduction. 1040 ez tax table When to deduct the loss. 1040 ez tax table   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. 1040 ez tax table However, you can elect to deduct losses caused by the severe storms, tornadoes, or flooding on your return for the prior year. 1040 ez tax table Special instructions for individuals who elect to claim a Midwestern disaster area casualty or theft loss for 2007. 1040 ez tax table   Individuals filing or amending their 2007 tax return for casualty or theft losses that were attributable to the severe storms, tornadoes, or flooding should: Enter “Midwestern Disaster Area” at the top of Form 1040 or Form 1040X, and Complete the 2008 version of Form 4684. 1040 ez tax table Cross out “2008” and enter “2007” at the top of Form 4684. 1040 ez tax table Time limit for making election. 1040 ez tax table   You must make this election to claim your casualty or theft loss in 2007 by the later of the following dates. 1040 ez tax table The due date (without extensions) for filing your 2008 income tax return. 1040 ez tax table The due date (with extensions) for filing your 2007 income tax return. 1040 ez tax table Example. 1040 ez tax table If you are a calendar year individual taxpayer, you have until April 15, 2009, to amend your 2007 tax return to claim a casualty or theft loss that occurred during 2008. 1040 ez tax table Replacement Period for Nonrecognition of Gain This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. 1040 ez tax table Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a federally declared disaster area). 1040 ez tax table However, for property that was involuntarily converted on or after the applicable disaster date, as a result of the severe storms, tornadoes, or flooding, a 5-year replacement period applies if substantially all of the use of the replacement property is in a Midwestern disaster area. 1040 ez tax table For more information, see the Instructions for Form 4684. 1040 ez tax table Net Operating Losses This benefit applies only to the counties in Table 1. 1040 ez tax table Qualified disaster recovery assistance loss. 1040 ez tax table   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. 1040 ez tax table However, the portion of an NOL that is a qualified disaster recovery assistance loss can be carried back to the 5 tax years before the NOL year. 1040 ez tax table In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. 1040 ez tax table   A qualified disaster recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified disaster recovery assistance casualty loss (as defined below), Moving expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the employment of an individual whose main home was in a Midwestern disaster area before the applicable disaster date, who was unable to remain in that home because of the severe storms, tornadoes, or flooding, and whose main job location (after the move) is in a Midwestern disaster area, Temporary housing expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, to house employees of the taxpayer whose main job location is in a Midwestern disaster area, Depreciation or amortization allowable for any qualified disaster recovery assistance property (even if you elected not to claim the special disaster recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred on or after the applicable disaster date, and before January 1, 2011, for any damage from the severe storms, tornadoes, or flooding to property located in a Midwestern disaster area. 1040 ez tax table Qualified disaster recovery assistance casualty loss. 1040 ez tax table   A qualified disaster recovery assistance casualty loss is any deductible section 1231 loss of property located in a Midwestern disaster area if the loss was caused by the severe storms, tornadoes, or flooding. 1040 ez tax table For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the severe storms, tornadoes, or flooding of property located in a Midwestern disaster area. 1040 ez tax table Any such loss taken into account in figuring your qualified disaster recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. 1040 ez tax table More information. 1040 ez tax table   For more information on NOLs, see Publication 536 or Publication 542, Corporations. 1040 ez tax table IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of the severe storms, tornadoes, or flooding. 1040 ez tax table Definitions Qualified disaster recovery assistance distribution. 1040 ez tax table   A qualified disaster recovery assistance distribution is any distribution you received from an eligible retirement plan if all of the following apply. 1040 ez tax table The distribution was made on or after the applicable disaster date and before January 1, 2010. 1040 ez tax table Your main home was located in a Midwestern disaster area on the applicable disaster date. 1040 ez tax table You sustained an economic loss because of the severe storms, tornadoes, or flooding and your main home was in a Midwestern disaster area on the applicable disaster date. 1040 ez tax table Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 1040 ez tax table   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified disaster recovery assistance distribution, regardless of whether the distribution was made on account of the severe storms, tornadoes, or flooding. 1040 ez tax table Qualified disaster recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. 1040 ez tax table   The total of your qualified disaster recovery assistance distributions from all plans is limited to $100,000. 1040 ez tax table If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you can allocate the $100,000 limit among the plans any way you choose. 1040 ez tax table   A reduction or offset (on or after the applicable disaster date) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified disaster recovery assistance distribution. 1040 ez tax table Eligible retirement plan. 1040 ez tax table   An eligible retirement plan can be any of the following. 1040 ez tax table A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). 1040 ez tax table A qualified annuity plan. 1040 ez tax table A tax-sheltered annuity contract. 1040 ez tax table A governmental section 457 deferred compensation plan. 1040 ez tax table A traditional, SEP, SIMPLE, or Roth IRA. 1040 ez tax table Main home. 1040 ez tax table   Generally, your main home is the home where you live most of the time. 1040 ez tax table A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. 1040 ez tax table Taxation of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table Qualified disaster recovery assistance distributions are included in income in equal amounts over three years. 1040 ez tax table However, if you elect, you can include the entire distribution in your income in the year it was received. 1040 ez tax table Qualified disaster recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). 1040 ez tax table However, any distributions you receive in excess of the $100,000 qualified disaster recovery assistance distribution limit may be subject to the additional tax on early distributions. 1040 ez tax table For more information, see Form 8930. 1040 ez tax table Repayment of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table If you choose, you generally can repay any portion of a qualified disaster recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. 1040 ez tax table Also, you can repay a qualified disaster recovery assistance distribution made on account of a hardship from a retirement plan. 1040 ez tax table However, see Exceptions later for qualified disaster recovery assistance distributions you cannot repay. 1040 ez tax table You have three years from the day after the date you received the distribution to make a repayment. 1040 ez tax table Amounts that are repaid are treated as a qualified rollover and are not included in income. 1040 ez tax table Also, a repayment of a qualified disaster recovery assistance distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. 1040 ez tax table See Form 8930 for more information on how to report repayments. 1040 ez tax table Exceptions. 1040 ez tax table   You cannot repay the following types of distributions. 1040 ez tax table Qualified disaster recovery assistance distributions received as a beneficiary (other than a surviving spouse). 1040 ez tax table Required minimum distributions. 1040 ez tax table Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. 1040 ez tax table Repayment of Qualified Distributions for the Purchase or Construction of a Main Home This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table If you received a qualified distribution to purchase or construct a main home in a Midwestern disaster area, you can repay part or all of that distribution on or after the applicable disaster date, but no later than March 3, 2009, to an eligible retirement plan. 1040 ez tax table For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. 1040 ez tax table To be a qualified distribution, the distribution must meet all of the following requirements. 1040 ez tax table The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. 1040 ez tax table The distribution was received after the date that was 6 months before the day after the applicable disaster date. 1040 ez tax table The distribution was to be used to purchase or construct a main home in a Midwestern disaster area that was not purchased or constructed because of the severe storms, tornadoes, or flooding. 1040 ez tax table Amounts that are repaid before March 4, 2009, are treated as a qualified rollover and are not included in income. 1040 ez tax table Also, a repayment of a qualified distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. 1040 ez tax table A qualified distribution not repaid before March 4, 2009, may be taxable for 2007 or 2008 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. 1040 ez tax table You must file Form 8930 if you received a qualified distribution that you repaid, in whole or in part, before March 4, 2009. 1040 ez tax table Loans From Qualified Plans This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table The following benefits are available to qualified individuals. 1040 ez tax table Increases to the limits for distributions treated as loans from employer plans. 1040 ez tax table A 1-year suspension for payments due on plan loans. 1040 ez tax table Qualified individual. 1040 ez tax table   You are a qualified individual if your main home was located in a Midwestern disaster area on the applicable disaster date and you had an economic loss because of the severe storms, tornadoes, or flooding. 1040 ez tax table Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 1040 ez tax table Limits on plan loans. 1040 ez tax table   The $50,000 limit for distributions treated as plan loans is increased to $100,000. 1040 ez tax table In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. 1040 ez tax table If your main home was located in a Midwestern disaster area, the higher limits apply only to loans received during the period beginning on October 3, 2008, and ending on December 31, 2009. 1040 ez tax table One-year suspension of loan payments. 1040 ez tax table   Payments on plan loans outstanding on or after the applicable disaster date, may be suspended for 1 year by the plan administrator. 1040 ez tax table To qualify for the suspension, the due date for any loan payment must occur during the period beginning on the applicable disaster date and ending on December 31, 2009. 1040 ez tax table Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table You can elect to use your 2007 earned income to figure your earned income credit (EIC) and additional child tax credit for 2008 if: Your 2008 earned income is less than your 2007 earned income, and At least one of the following statements is true. 1040 ez tax table Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 1. 1040 ez tax table Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 2, and you were displaced from that home because of the severe storms, tornadoes, or flooding. 1040 ez tax table Earned income. 1040 ez tax table    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. 1040 ez tax table If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. 1040 ez tax table Joint returns. 1040 ez tax table   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. 1040 ez tax table If you make the election, your 2007 earned income is the sum of your 2007 earned income and your spouse's 2007 earned income. 1040 ez tax table Making the election. 1040 ez tax table   If you make the election to use your 2007 earned income, the election applies for figuring both the EIC and the additional child tax credit. 1040 ez tax table However, you can make the election for the additional child tax credit even if you do not take the EIC. 1040 ez tax table   Electing to use your 2007 earned income can increase or decrease your EIC. 1040 ez tax table Take the following steps to decide whether to make the election. 1040 ez tax table Figure your 2008 EIC using your 2007 earned income. 1040 ez tax table Figure your 2008 additional child tax credit using your 2007 earned income for EIC purposes. 1040 ez tax table Add the results of (1) and (2). 1040 ez tax table Figure your 2008 EIC using your 2008 earned income. 1040 ez tax table Figure your 2008 additional child tax credit using your 2008 earned income for additional child tax credit purposes. 1040 ez tax table Add the results of (4) and (5). 1040 ez tax table Compare the results of (3) and (6). 1040 ez tax table If (3) is larger than (6), it is to your benefit to make the election. 1040 ez tax table If (3) is equal to or smaller than (6), making the election will not help you. 1040 ez tax table   If you elect to use your 2007 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2007 earned income on the dotted line next to line 64a of Form 1040, on the line next to line 40a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. 1040 ez tax table   If you elect to use your 2007 earned income and you are claiming the additional child tax credit, enter your 2007 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. 1040 ez tax table Getting your 2007 tax return information. 1040 ez tax table   If you do not have your 2007 tax records, you can get the amount of earned income used to figure your 2007 EIC by calling 1-866-562-5227. 1040 ez tax table You can also get this information by visiting the IRS website at www. 1040 ez tax table irs. 1040 ez tax table gov. 1040 ez tax table   If you prefer to figure your 2007 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. 1040 ez tax table See Request for Copy or Transcript of Tax Return on page 11. 1040 ez tax table Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table You can claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by the severe storms, tornadoes, or flooding. 1040 ez tax table The additional exemption amount is claimed on Form 8914. 1040 ez tax table You can claim an additional exemption amount only one time for a specific individual. 1040 ez tax table If you claimed an additional exemption amount for an individual in 2008, you cannot claim that amount again for the same individual in 2009. 1040 ez tax table The maximum additional exemption amount you can claim for all displaced individuals is $2,000. 1040 ez tax table Any additional exemption amount you claimed for displaced individuals in 2008 will reduce the $2,000 maximum for 2009. 1040 ez tax table The $2,000 limit applies to a husband and wife, whether the husband and wife file joint returns or separate returns. 1040 ez tax table If married filing separately, the $2,000 can be divided in $500 increments between the spouses. 1040 ez tax table For example, if one spouse claims an additional exemption amount for one displaced individual, the other spouse, if otherwise eligible, can claim additional exemption amounts for three different displaced individuals. 1040 ez tax table If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. 1040 ez tax table In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). 1040 ez tax table To qualify as a displaced individual, the individual: Must have had his or her main home in a Midwestern disaster area on the applicable disaster date, and he or she must have been displaced from that home. 1040 ez tax table If the individual's main home was located in a Midwestern disaster area as shown in Table 2, that home must have been damaged by the severe storms, tornadoes, or flooding or the individual must have been evacuated from that home because of the severe storms, tornadoes, or flooding, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. 1040 ez tax table You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. 1040 ez tax table You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. 1040 ez tax table Food, clothing, or personal items consumed or used by the displaced individual. 1040 ez tax table Reimbursement for the cost of any long distance telephone calls made by the displaced individual. 1040 ez tax table Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. 1040 ez tax table However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. 1040 ez tax table Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. 1040 ez tax table For more information, see Form 8914. 1040 ez tax table Education Credits This benefit applies only to the counties in Table 1. 1040 ez tax table The education credits have been expanded for students attending an eligible educational institution located in a Midwestern disaster area (Midwestern disaster area students) for any tax year beginning in 2008 or 2009. 1040 ez tax table The Hope credit for a Midwestern disaster area student is increased to 100% of the first $2,400 in qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student. 1040 ez tax table The lifetime learning credit rate for a Midwestern disaster area student is increased from 20% to 40%. 1040 ez tax table The definition of qualified education expenses for a Midwestern disaster area student also has been expanded. 1040 ez tax table This expanded definition also applies to the tuition and fees deduction claimed on Form 8917. 1040 ez tax table In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a Midwestern disaster area student include the following. 1040 ez tax table Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. 1040 ez tax table For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. 1040 ez tax table For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. 1040 ez tax table The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. 1040 ez tax table The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. 1040 ez tax table You will need to contact the eligible educational institution for qualified room and board costs. 1040 ez tax table For more information, see Form 8863. 1040 ez tax table See Form 8917 for the tuition and fees deduction. 1040 ez tax table Recapture of Federal Mortgage Subsidy This benefit applies only to the counties in Table 1. 1040 ez tax table Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. 1040 ez tax table However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. 1040 ez tax table This amount is increased to $150,000 if the loan was provided before 2011 and was used to alter, repair, or improve an existing owner-occupied residence in a Midwestern disaster area as shown in Table 1. 1040 ez tax table Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. 1040 ez tax table Generally, discharges of nonbusiness debts (such as mortgages) made on or after the applicable disaster date and before January 1, 2010, are excluded from income for individuals whose main home was in a Midwestern disaster area on the applicable disaster date. 1040 ez tax table If the individual's main home was located in a Midwestern disaster area as shown in Table 2, the individual also must have had an economic loss because of the severe storms, tornadoes, or flooding. 1040 ez tax table Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 1040 ez tax table This relief does not apply to any debt secured by real property located outside a Midwestern disaster area. 1040 ez tax table You may also have to reduce certain tax attributes by the amount excluded. 1040 ez tax table For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). 1040 ez tax table Tax Relief for Temporary Relocation This benefit applies only to the counties in Table 1. 1040 ez tax table The IRS can adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2008 or 2009 as a result of a temporary relocation caused by the severe storms, tornadoes, or flooding. 1040 ez tax table However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. 1040 ez tax table The IRS has exercised this authority as follows. 1040 ez tax table In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. 1040 ez tax table In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. 1040 ez tax table You can treat as a student an individual who enrolled in school before the applicable disaster date, and who is unable to attend classes because of the severe storms, tornadoes, or flooding, for each month of the enrollment period that individual is prevented by the severe storms, tornadoes, or flooding from attending school as planned. 1040 ez tax table Additional Tax Relief for Businesses Employee Retention Credit This benefit applies only to the counties in Table 1. 1040 ez tax table An eligible employer who conducted an active trade or business in a Midwestern disaster area can claim the employee retention credit. 1040 ez tax table The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). 1040 ez tax table Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). 1040 ez tax table Use Form 5884-A to claim the credit. 1040 ez tax table Employers affected by the severe storms, tornadoes, or flooding. 1040 ez tax table   The following definitions apply to employers affected by the severe storms, tornadoes, or flooding. 1040 ez tax table Eligible employer. 1040 ez tax table   For this purpose, an eligible employer is any employer who meets all of the following. 1040 ez tax table Employed an average of not more than 200 employees on business days during the tax year before the applicable disaster date. 1040 ez tax table Conducted an active trade or business on the applicable disaster date in a Midwestern disaster area. 1040 ez tax table Whose trade or business was inoperable on any day after the applicable disaster date and before January 1, 2009, because of the damage caused by the severe storms, tornadoes, or flooding. 1040 ez tax table Eligible employee. 1040 ez tax table   For this purpose, an eligible employee is an employee whose principal place of employment on the applicable disaster date with such eligible employer was in a Midwestern disaster area. 1040 ez tax table An employee is not an eligible employee for purposes of the severe storms, tornadoes, or flooding if the employee is treated as an eligible employee for the work opportunity credit. 1040 ez tax table Qualified wages. 1040 ez tax table   Qualified wages are wages (up to $6,000 per employee) you paid or incurred before January 1, 2009, for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable disaster, and ending on the date your trade or business resumed significant operations at that place. 1040 ez tax table In addition, the wages must have been paid or incurred after the applicable disaster date. 1040 ez tax table    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. 1040 ez tax table    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). 1040 ez tax table Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. 1040 ez tax table Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. 1040 ez tax table   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. 1040 ez tax table For a special rule that applies to railroad employees, see section 51(h)(1)(B). 1040 ez tax table   Qualified wages do not include the following. 1040 ez tax table Wages paid to your dependent or a related individual. 1040 ez tax table See section 51(i)(1). 1040 ez tax table Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. 1040 ez tax table Wages for services of replacement workers during a strike or lockout. 1040 ez tax table   For more information, see Form 5884-A. 1040 ez tax table Employer Housing Credit and Exclusion This benefit applies only to the counties in Table 1. 1040 ez tax table An employer who conducted an active trade or business in a Midwestern disaster area can claim the employer housing credit. 1040 ez tax table The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from November 1, 2008, through May 1, 2009. 1040 ez tax table The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). 1040 ez tax table Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). 1040 ez tax table The employer must use Form 5884-A to claim the credit. 1040 ez tax table A qualified employee is an individual who had a main home in a Midwestern disaster area on the applicable disaster date, and who performs substantially all employment services in a Midwestern disaster area for the employer furnishing the lodging. 1040 ez tax table The employee cannot be your dependent or a related individual. 1040 ez tax table See section 51(i)(1). 1040 ez tax table For more information, see Form 5884-A. 1040 ez tax table Demolition and Clean-up Costs This benefit applies only to the counties in Table 1. 1040 ez tax table You can elect to deduct 50% of any qualified disaster recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. 1040 ez tax table Qualified disaster recovery assistance clean-up costs are any amounts paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the removal of debris from, or the demolition of structures on, real property located in a Midwestern disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. 1040 ez tax table Qualified disaster recovery assistance clean-up costs are limited to amounts necessary due to damage attributable to the severe storms, tornadoes, or flooding in the Midwestern disaster areas. 1040 ez tax table Increase in Rehabilitation Tax Credit This benefit applies only to the counties in Table 1. 1040 ez tax table The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred on or after the applicable disaster date, and before January 1, 2012, on buildings located in a Midwestern disaster area as follows. 1040 ez tax table For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. 1040 ez tax table For certified historic structures, the credit percentage is increased from 20% to 26%. 1040 ez tax table For more information, see Form 3468, Investment Credit. 1040 ez tax table Request for Copy or Transcript of Tax Return Request for copy of tax return. 1040 ez tax table   You can use Form 4506 to order a copy of your tax return. 1040 ez tax table Generally, there is a $57 fee for requesting each copy of a tax return. 1040 ez tax table If your main home, principal place of business, or tax records are located in a Midwestern disaster area, the fee will be waived if “Midwestern Disaster Area” is written in red across the top of the form when filed. 1040 ez tax table Request for transcript of tax return. 1040 ez tax table   You can use Form 4506-T to order a free transcript of your tax return. 1040 ez tax table A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. 1040 ez tax table You can also call 1-800-829-1040 to order a transcript. 1040 ez tax table How To Get Tax Help Special IRS assistance. 1040 ez tax table   The IRS is providing special help for those affected by the severe storms, tornadoes, or flooding, as well as survivors and personal representatives of the victims. 1040 ez tax table 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 recent federally declared disasters, or who have other tax issues related to the severe storms, tornadoes, or flooding. 1040 ez tax table Call 1-866-562-5227 Monday through FridayIn English–7 a. 1040 ez tax table m. 1040 ez tax table to 10 p. 1040 ez tax table m. 1040 ez tax table local timeIn Spanish–8 a. 1040 ez tax table m. 1040 ez tax table to 9:30 p. 1040 ez tax table m. 1040 ez tax table local time   The IRS website at www. 1040 ez tax table irs. 1040 ez tax table gov has notices and other tax relief information. 1040 ez tax table Check it periodically for any new guidance. 1040 ez tax table 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. 1040 ez tax table By selecting the method that is best for you, you will have quick and easy access to tax help. 1040 ez tax table Contacting your Taxpayer Advocate. 1040 ez tax table   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. 1040 ez tax table Here are seven things every taxpayer should know about TAS: TAS is your voice at the IRS. 1040 ez tax table Our service is free, confidential, and tailored to meet your needs. 1040 ez tax table You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. 1040 ez tax table TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. 1040 ez tax table This includes businesses as well as individuals. 1040 ez tax table TAS employees know the IRS and how to navigate it. 1040 ez tax table We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. 1040 ez tax table TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. 1040 ez tax table You can call your local advocate, whose number is in your phone book, in Pub. 1040 ez tax table 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www. 1040 ez tax table irs. 1040 ez tax table gov/advocate. 1040 ez tax table You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. 1040 ez tax table You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www. 1040 ez tax table taxtoolkit. 1040 ez tax table irs. 1040 ez tax table gov. 1040 ez tax table Low Income Taxpayer Clinics (LITCs). 1040 ez tax table   The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. 1040 ez tax table LITCs are independent from the IRS. 1040 ez tax table Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. 1040 ez tax table If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. 1040 ez tax table For more information, see Publication 4134, Low Income Taxpayer Clinic List. 1040 ez tax table This publication is available at www. 1040 ez tax table irs. 1040 ez tax table gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. 1040 ez tax table Free tax services. 1040 ez tax table   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. 1040 ez tax table It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. 1040 ez tax table It also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on your telephone. 1040 ez tax table   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 1040 ez tax table Free help with your return. 1040 ez tax table   Free help in preparing your return is available nationwide from IRS-trained volunteers. 1040 ez tax table The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 1040 ez tax table Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 1040 ez tax table To find the nearest VITA or TCE site, call 1-800-829-1040. 1040 ez tax table   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040 ez tax table To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website atwww. 1040 ez tax table aarp. 1040 ez tax table org/money/taxaide. 1040 ez tax table   For more information on these programs, go to www. 1040 ez tax table irs. 1040 ez tax table gov and enter keyword “VITA” in the upper right-hand corner. 1040 ez tax table Internet. 1040 ez tax table You can access the IRS website at www. 1040 ez tax table irs. 1040 ez tax table gov 24 hours a day, 7 days a week to: E-file your return. 1040 ez tax table Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 1040 ez tax table Check the status of your 2009 refund. 1040 ez tax table Go to www. 1040 ez tax table irs. 1040 ez tax table gov and click on Where's My Refund. 1040 ez tax table 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. 1040 ez tax table If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 1040 ez tax table Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 1040 ez tax table Download forms, instructions, and publications. 1040 ez tax table Order IRS products online. 1040 ez tax table Research your tax questions online. 1040 ez tax table Search publications online by topic or keyword. 1040 ez tax table Use the online Internal Revenue Code, Regulations, or other official guidance. 1040 ez tax table View Internal Revenue Bulletins (IRBs) published in the last few years. 1040 ez tax table Figure your withholding allowances using the withholding calculator online at www. 1040 ez tax table irs. 1040 ez tax table gov/individuals. 1040 ez tax table Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant. 1040 ez tax table Sign up to receive local and national tax news by email. 1040 ez tax table Get information on starting and operating a small business. 1040 ez tax table Phone. 1040 ez tax table Many services are available by phone. 1040 ez tax table Ordering forms, instructions, and publications. 1040 ez tax table Call 1-800-TAX FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. 1040 ez tax table You should receive your order within 10 days. 1040 ez tax table Asking tax questions. 1040 ez tax table Call the IRS with your tax questions at 1-800-829-1040. 1040 ez tax table Solving problems. 1040 ez tax table You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. 1040 ez tax table An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 1040 ez tax table Call your local Taxpayer Assistance Center for an appointment. 1040 ez tax table To find the number, go to www. 1040 ez tax table irs. 1040 ez tax table gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040 ez tax table TTY/TDD equipment. 1040 ez tax table If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 1040 ez tax table TeleTax topics. 1040 ez tax table Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 1040 ez tax table Refund information. 1040 ez tax table To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). 1040 ez tax table 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. 1040 ez tax table If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 1040 ez tax table Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 1040 ez tax table Refunds are sent out weekly on Fridays. 1040 ez tax table 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. 1040 ez tax table Other refund information. 1040 ez tax table To check the status of a prior year refund or amended return refund, call 1-800-829-1954. 1040 ez tax table Evaluating the quality of our telephone services. 1040 ez tax table To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 1040 ez tax table One method is for a second IRS representative to listen in on or record random telephone calls. 1040 ez tax table Another is to ask some callers to complete a short survey at the end of the call. 1040 ez tax table Walk-in. 1040 ez tax table Many products and services are available on a walk-in basis. 1040 ez tax table Products. 1040 ez tax table You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040 ez tax table 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. 1040 ez tax table Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 1040 ez tax table Services. 1040 ez tax table You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. 1040 ez tax table An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 1040 ez tax table 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. 1040 ez tax table No appointment is necessary—just walk in. 1040 ez tax table If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. 1040 ez tax table A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. 1040 ez tax table If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. 1040 ez tax table All other issues will be handled without an appointment. 1040 ez tax table To find the number of your local office, go to www. 1040 ez tax table irs. 1040 ez tax table gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040 ez tax table Mail. 1040 ez tax table You can send your order for forms, instructions, and publications to the address below. 1040 ez tax table You should receive a response within 10 days after your request is received. 1040 ez tax table Internal Revenue Service1201 N. 1040 ez tax table Mitsubishi MotorwayBloomington, IL 61705-6613 DVD for tax products. 1040 ez tax table You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. 1040 ez tax table Prior-year forms, instructions, and publications. 1040 ez tax table Tax Map: an electronic research tool and finding aid. 1040 ez tax table Tax law frequently asked questions. 1040 ez tax table Tax Topics from the IRS telephone response system. 1040 ez tax table Internal Revenue Code—Title 26 of the U. 1040 ez tax table S. 1040 ez tax table Code. 1040 ez tax table Fill-in, print, and save features for most tax forms. 1040 ez tax table Internal Revenue Bulletins. 1040 ez tax table Toll-free and email technical support. 1040 ez tax table Two releases during the year. 1040 ez tax table – The first release will ship the beginning of January 2010. 1040 ez tax table – The final release will ship the beginning of March 2010. 1040 ez tax table Purchase the DVD from National Technical Information Service (NTIS) at www. 1040 ez tax table irs. 1040 ez tax table 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). 1040 ez tax table Prev  Up  Next   Home   More Online Publications
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Business Past Features from 2008

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The 1040 Ez Tax Table

1040 ez tax table 3. 1040 ez tax table   Section 501(c)(3) Organizations Table of Contents IntroductionChild care organizations. 1040 ez tax table Topics - This chapter discusses: Useful Items - You may want to see: Contributions to 501(c)(3) OrganizationsCertain annuity contracts. 1040 ez tax table Certain contracts held by a charitable remainder trust. 1040 ez tax table Excise Taxes. 1040 ez tax table Indoor tanning services. 1040 ez tax table Application for Recognition of ExemptionPolitical activity. 1040 ez tax table Private delivery service. 1040 ez tax table Amendments to organizing documents required. 1040 ez tax table How to show reasonable action and good faith. 1040 ez tax table Not acting reasonably and in good faith. 1040 ez tax table Prejudicing the interest of the Government. 1040 ez tax table Procedure for requesting extension. 1040 ez tax table More information. 1040 ez tax table Organizations Not Required To File Form 1023 Articles of OrganizationOrganizational Test Dedication and Distribution of Assets Educational Organizations and Private SchoolsEducational Organizations Private Schools Organizations Providing InsuranceCharitable Risk Pools Other Section 501(c)(3) OrganizationsCharitable Organizations Religious Organizations Scientific Organizations Literary Organizations Amateur Athletic Organizations Prevention of Cruelty to Children or Animals Private Foundations and Public CharitiesPrivate Foundations Public Charities Private Operating Foundations Lobbying ExpendituresLobbying expenditures. 1040 ez tax table Grass roots expenditures. 1040 ez tax table Lobbying nontaxable amount. 1040 ez tax table Grass roots nontaxable amount. 1040 ez tax table Organization that no longer qualifies. 1040 ez tax table Tax on organization. 1040 ez tax table Tax on managers. 1040 ez tax table Taxes on organizations. 1040 ez tax table Taxes on managers. 1040 ez tax table Political expenditures. 1040 ez tax table Correction of expenditure. 1040 ez tax table Introduction An organization may qualify for exemption from federal income tax if it is organized and operated exclusively for one or more of the following purposes. 1040 ez tax table Religious. 1040 ez tax table Charitable. 1040 ez tax table Scientific. 1040 ez tax table Testing for public safety. 1040 ez tax table Literary. 1040 ez tax table Educational. 1040 ez tax table Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment; however, see Amateur Athletic Organizations , later in this chapter). 1040 ez tax table The prevention of cruelty to children or animals. 1040 ez tax table To qualify, the organization must be a corporation, community chest, fund, articles of association, or foundation. 1040 ez tax table A trust is a fund or foundation and will qualify. 1040 ez tax table However, an individual or a partnership will not qualify. 1040 ez tax table Examples. 1040 ez tax table   Qualifying organizations include: Nonprofit old-age homes, Parent-teacher associations, Charitable hospitals or other charitable organizations, Alumni associations, Schools, Chapters of the Red Cross, Boys' or Girls' Clubs, and Churches. 1040 ez tax table Child care organizations. 1040 ez tax table   The term educational purposes includes providing for care of children away from their homes if substantially all the care provided is to enable individuals (the parents) to be gainfully employed and the services are available to the general public. 1040 ez tax table Instrumentalities. 1040 ez tax table   A state or municipal instrumentality may qualify under section 501(c)(3) if it is organized as a separate entity from the governmental unit that created it and if it otherwise meets the organizational and operational tests of section 501(c)(3). 1040 ez tax table Examples of a qualifying instrumentality might include state schools, universities, or hospitals. 1040 ez tax table However, if an organization is an integral part of the local government or possesses governmental powers, it does not qualify for exemption. 1040 ez tax table A state or municipality itself does not qualify for exemption. 1040 ez tax table Topics - This chapter discusses: Contributions to 501(c)(3) organizations, Applications for recognition of exemption, Articles of Organization, Educational organizations and private schools, Organizations providing insurance, Other section 501(c)(3) organizations, Private foundations and public charities, and Lobbying expenditures. 1040 ez tax table Useful Items - You may want to see: Forms (and Instructions) 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code See chapter 6 for information about getting publications and forms. 1040 ez tax table Contributions to 501(c)(3) Organizations Contributions to domestic organizations described in this chapter, except organizations testing for public safety, are deductible as charitable contributions on the donor's federal income tax return. 1040 ez tax table Fundraising events. 1040 ez tax table   If the donor receives something of value in return for the contribution, a common occurrence with fundraising efforts, part or all of the contribution may not be deductible. 1040 ez tax table This may apply to fundraising activities such as charity balls, bazaars, banquets, auctions, concerts, athletic events, and solicitations for membership or contributions when merchandise or benefits are given in return for payment of a specified minimum contribution. 1040 ez tax table   If the donor receives or expects to receive goods or services in return for a contribution to your organization, the donor cannot deduct any part of the contribution unless the donor intends to, and does, make a payment greater than the fair market value of the goods or services. 1040 ez tax table If a deduction is allowed, the donor can deduct only the part of the contribution, if any, that is more than the fair market value of the goods or services received. 1040 ez tax table You should determine in advance the fair market value of any goods or services to be given to contributors and tell them, when you publicize the fundraising event or solicit their contributions, how much is deductible and how much is for the goods or services. 1040 ez tax table See Disclosure of Quid Pro Quo Contributions in chapter 2. 1040 ez tax table Exemption application not filed. 1040 ez tax table   Donors cannot deduct any charitable contribution to an organization that is required to apply for recognition of exemption but has not done so. 1040 ez tax table Separate fund—contributions that are deductible. 1040 ez tax table   An organization that is exempt from federal income tax other than as an organization described in section 501(c)(3) can, if it desires, establish a fund, separate and apart from its other funds, exclusively for religious, charitable, scientific, literary, or educational purposes, fostering national or international amateur sports competition, or for the prevention of cruelty to children or animals. 1040 ez tax table   If the fund is organized and operated exclusively for these purposes, it may qualify for exemption as an organization described in section 501(c)(3), and contributions made to it will be deductible as provided by section 170. 1040 ez tax table A fund with these characteristics must be organized in such a manner as to prohibit the use of its funds upon dissolution, or otherwise, for the general purposes of the organization creating it. 1040 ez tax table Personal benefit contracts. 1040 ez tax table   Generally, charitable deductions will not be allowed for a transfer to, or for the use of, a section 501(c)(3) or (c)(4) organization if in connection with the transfer: The organization directly or indirectly pays, or previously paid, a premium on a personal benefit contract for the transferor, or There is an understanding or expectation that anyone will directly or indirectly pay a premium on a personal benefit contract for the transferor. 1040 ez tax table   A personal benefit contract with respect to the transferor is any life insurance, annuity, or endowment contract, if any direct or indirect beneficiary under the contract is the transferor, any member of the transferor's family, or any other person designated by the transferor. 1040 ez tax table Certain annuity contracts. 1040 ez tax table   If an organization incurs an obligation to pay a charitable gift annuity, and the organization purchases an annuity contract to fund the obligation, individuals receiving payments under the charitable gift annuity will not be treated as indirect beneficiaries if the organization owns all of the incidents of ownership under the contract, is entitled to all payments under the contract, and the timing and amount of the payments are substantially the same as the timing and amount of payments to each person under the obligation (as such obligation is in effect at the time of the transfer). 1040 ez tax table Certain contracts held by a charitable remainder trust. 1040 ez tax table   An individual will not be considered an indirect beneficiary under a life insurance, annuity, or endowment contract held by a charitable remainder annuity trust or a charitable remainder unitrust solely by reason of being entitled to the payment if the trust owns all of the incidents of ownership under the contract, and the trust is entitled to all payments under the contract. 1040 ez tax table Excise tax. 1040 ez tax table   If the premiums are paid in connection with a transfer for which a deduction is not allowable under the deduction denial rule, without regard to when the transfer to the charitable organization was made, an excise tax will be applied that is equal to the amount of the premiums paid by the organization on any life insurance, annuity, or endowment contract. 1040 ez tax table The excise tax does not apply if all of the direct and indirect beneficiaries under the contract are organizations. 1040 ez tax table Excise Taxes. 1040 ez tax table   A charitable organization liable for excise taxes must file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code. 1040 ez tax table Generally, the due date for filing Form 4720 occurs on the fifteenth day of the fifth month following the close of the organization's tax year. 1040 ez tax table Indoor tanning services. 1040 ez tax table   If your organization provides an indoor tanning bed service, the ACA imposed a 10% excise tax on services provided after June 30, 2010. 1040 ez tax table For more information, go to IRS. 1040 ez tax table gov and select Affordable Care Act Tax Provisions. 1040 ez tax table Application for Recognition of Exemption This discussion describes certain information to be provided upon application for recognition of exemption by all organizations created for any of the purposes described earlier in this chapter. 1040 ez tax table For example, the application must include a conformed copy of the organization's articles of incorporation, as discussed under Articles of Organization , later in this chapter. 1040 ez tax table See the organization headings that follow for specific information your organization may need to provide. 1040 ez tax table Form 1023. 1040 ez tax table   Your organization must file its application for recognition of exemption on Form 1023. 1040 ez tax table See chapter 1 and the instructions accompanying Form 1023 for the procedures to follow in applying. 1040 ez tax table Some organizations are not required to file Form 1023. 1040 ez tax table See Organizations Not Required To File Form 1023, later. 1040 ez tax table    Additional information to help you complete your application can be found online. 1040 ez tax table Go to Exemption Requirement – Section 501(c)(3) Organizations and select the link at the bottom of the Web page for step by step help with the application process. 1040 ez tax table See Exemption Requirements - Section 501(c)(3) Organizations. 1040 ez tax table   Form 1023 and accompanying statements must show that all of the following are true. 1040 ez tax table The organization is organized exclusively for, and will be operated exclusively for, one or more of the purposes (religious, charitable, etc. 1040 ez tax table ) specified in the introduction to this chapter. 1040 ez tax table No part of the organization's net earnings will inure to the benefit of private shareholders or individuals. 1040 ez tax table You must establish that your organization will not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. 1040 ez tax table The organization will not, as a substantial part of its activities, attempt to influence legislation (unless it elects to come under the provisions allowing certain lobbying expenditures) or participate to any extent in a political campaign for or against any candidate for public office. 1040 ez tax table See Political activity, next, and Lobbying Expenditures , near the end of this chapter. 1040 ez tax table Political activity. 1040 ez tax table   If any of the activities (whether or not substantial) of your organization consist of participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for public office, your organization will not qualify for tax-exempt status under section 501(c)(3). 1040 ez tax table Such participation or intervention includes the publishing or distributing of statements. 1040 ez tax table   Whether your organization is participating or intervening, directly or indirectly, in any political campaign on behalf of (or in opposition to) any candidate for public office depends upon all of the facts and circumstances of each case. 1040 ez tax table Certain voter education activities or public forums conducted in a nonpartisan manner may not be prohibited political activity under section 501(c)(3), while other so-called voter education activities may be prohibited. 1040 ez tax table Effective date of exemption. 1040 ez tax table   Most organizations described in this chapter that were organized after October 9, 1969, will not be treated as tax exempt unless they apply for recognition of exemption by filing Form 1023. 1040 ez tax table These organizations will not be treated as tax exempt for any period before they file Form 1023, unless they file the form within 27 months from the end of the month in which they were organized. 1040 ez tax table If the organization files the application within this 27-month period, the organization's exemption will be recognized retroactively to the date it was organized. 1040 ez tax table Otherwise, exemption will be recognized only from the date of receipt. 1040 ez tax table The date of receipt is the date of the U. 1040 ez tax table S. 1040 ez tax table postmark on the cover in which an exemption application is mailed or, if no postmark appears on the cover, the date the application is stamped as received by the IRS. 1040 ez tax table Private delivery service. 1040 ez tax table   If a private delivery service designated by the IRS, rather than the U. 1040 ez tax table S. 1040 ez tax table Postal Service, is used to deliver the application, the date of receipt is the date recorded or marked by the private delivery service. 1040 ez tax table The following private delivery services have been designated by the IRS. 1040 ez tax table DHL Express (DHL): DHL “Same Day” Service. 1040 ez tax table Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. 1040 ez tax table United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. 1040 ez tax table M. 1040 ez tax table , UPS Worldwide Express Plus, and UPS Worldwide Express. 1040 ez tax table Amendments to organizing documents required. 1040 ez tax table   If an organization is required to alter its activities or to make substantive amendments to its organizing document, the ruling or determination letter recognizing its exempt status will be effective as of the date the changes are made. 1040 ez tax table If only a nonsubstantive amendment is made, exempt status will be effective as of the date it was organized, if the application was filed within the 15-month period, or the date the application was filed. 1040 ez tax table Extensions of time for filing. 1040 ez tax table   There are two ways organizations seeking exemption can receive an extension of time for filing Form 1023. 1040 ez tax table Automatic 12-month extension. 1040 ez tax table Organizations will receive an automatic 12-month extension if they file an application for recognition of exemption with the IRS within 12 months of the original deadline. 1040 ez tax table To get this extension, an organization must add the following statement at the top of its application: “Filed Pursuant to Section 301. 1040 ez tax table 9100-2. 1040 ez tax table ” Discretionary extensions. 1040 ez tax table An organization that fails to file a Form 1023 within the extended 12-month period will be granted an extension to file if it submits evidence (including affidavits) to establish that: It acted reasonably and in good faith, and Granting a discretionary extension will not prejudice the interests of the government. 1040 ez tax table How to show reasonable action and good faith. 1040 ez tax table   An organization acted reasonably and showed good faith if at least one of the following is true. 1040 ez tax table The organization requests relief before its failure to file is discovered by the IRS. 1040 ez tax table The organization failed to file because of intervening events beyond its control. 1040 ez tax table The organization exercised reasonable diligence (taking into account the complexity of the return or issue and the organization's experience in these matters) but was not aware of the filing requirement. 1040 ez tax table The organization reasonably relied upon the written advice of the IRS. 1040 ez tax table The organization reasonably relied upon the advice of a qualified tax professional who failed to file or advise the organization to file Form 1023. 1040 ez tax table An organization cannot rely on the advice of a tax professional if it knows or should know that he or she is not competent to render advice on filing exemption applications or is not aware of all the relevant facts. 1040 ez tax table Not acting reasonably and in good faith. 1040 ez tax table   An organization has not acted reasonably and in good faith under the following circumstances. 1040 ez tax table It seeks to change a return position for which an accuracy-related penalty has been or could be imposed at the time the relief is requested. 1040 ez tax table It was informed of the requirement to file and related tax consequences, but chose not to file. 1040 ez tax table It uses hindsight in requesting relief. 1040 ez tax table The IRS will not ordinarily grant an extension if specific facts have changed since the due date that makes filing an application advantageous to an organization. 1040 ez tax table Prejudicing the interest of the Government. 1040 ez tax table   Prejudice to the interest of the Government results if granting an extension of time to file to an organization results in a lower total tax liability for the years to which the filing applies than would have been the case if the organization had filed on time. 1040 ez tax table Before granting an extension, the IRS can require the organization requesting it to submit a statement from an independent auditor certifying that no prejudice will result if the extension is granted. 1040 ez tax table The interests of the Government are ordinarily prejudiced if the tax year in which the application should have been filed (or any tax year that would have been affected had the filing been timely) are closed by the statute of limitations before relief is granted. 1040 ez tax table The IRS can condition a grant of relief on the organization providing the IRS with a statement from an independent auditor certifying that the interests of the Government are not prejudiced. 1040 ez tax table Procedure for requesting extension. 1040 ez tax table   To request a discretionary extension, an organization must submit (to the IRS address shown on Form 1023 and Notice 1382) the following. 1040 ez tax table A statement showing the date Form 1023 was required to have been filed and the date it was actually filed. 1040 ez tax table Any documents relevant to the application. 1040 ez tax table An affidavit describing in detail the events that led to the failure to apply and to the discovery of that failure. 1040 ez tax table If the organization relied on a tax professional's advice, the affidavit must describe the engagement and responsibilities of the professional and the extent to which the organization relied on him or her. 1040 ez tax table This affidavit must be accompanied by a dated declaration, signed by an individual who has personal knowledge of the facts and circumstances, who is authorized to act for the organization, which states, “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete. 1040 ez tax table ” Detailed affidavits from individuals having knowledge or information about the events that led to the failure to make the application and to the discovery of that failure. 1040 ez tax table This includes the organization's return preparer, and any accountant or attorney, knowledgeable in tax matters, who advised the taxpayer on the application. 1040 ez tax table The affidavits must describe the engagement and responsibilities of the individual and the advice that he or she provided. 1040 ez tax table These affidavits must include the name, current address, and taxpayer identification number of the individual, and be accompanied by a dated declaration, signed by the individual, which states: “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete. 1040 ez tax table ” The organization must state whether the returns for the tax year in which the application should have been filed or any tax years that would have been affected by the application had it been timely made are being examined by the IRS, an appeals office, or a federal court. 1040 ez tax table The organization must notify the IRS office considering the request for relief if the IRS starts an examination of any such return while the organization's request for relief is pending. 1040 ez tax table The organization, if requested, has to submit copies of its tax returns, and copies of the returns of other affected taxpayers. 1040 ez tax table   A request for this relief in connection with an application for exemption does not require payment of an additional user fee. 1040 ez tax table Also, a request for relief under the automatic 12-month extension does not require payment of a user fee. 1040 ez tax table More information. 1040 ez tax table   For more information about these procedures, see Regulations sections 301. 1040 ez tax table 9100-1, 301. 1040 ez tax table 9100-2, 301. 1040 ez tax table 9100-3, Revenue Procedure 2013-4, section 6. 1040 ez tax table 04, 2013-1 I. 1040 ez tax table R. 1040 ez tax table B. 1040 ez tax table 126, and Revenue Procedure 2013-8, 2013-1 I. 1040 ez tax table R. 1040 ez tax table B. 1040 ez tax table 237. 1040 ez tax table See Revenue Procedure 2013-4 and Revenue Procedure 2013-8. 1040 ez tax table Notification from the IRS. 1040 ez tax table   Organizations filing Form 1023 and satisfying all requirements of section 501(c)(3) will be notified of their exempt status in writing. 1040 ez tax table Organizations Not Required To File Form 1023 Some organizations are not required to file Form 1023. 1040 ez tax table These include: Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men's or women's organization, religious school, mission society, or youth group. 1040 ez tax table Any organization (other than a private foundation) normally having annual gross receipts of not more than $5,000 (see Gross receipts test, later). 1040 ez tax table These organizations are exempt automatically if they meet the requirements of section 501(c)(3). 1040 ez tax table Filing Form 1023 to establish exemption. 1040 ez tax table   If the organization wants to establish its exemption with the IRS and receive a ruling or determination letter recognizing its exempt status, it should file Form 1023. 1040 ez tax table By establishing its exemption, potential contributors are assured by the IRS that contributions will be deductible. 1040 ez tax table A subordinate organization (other than a private foundation) covered by a group exemption letter does not have to submit a Form 1023 for itself. 1040 ez tax table Private foundations. 1040 ez tax table   See Private Foundations and Public Charities, later in this chapter, for more information about the additional notice required from an organization in order for it not to be presumed to be a private foundation and for the additional information required from a private foundation claiming to be an operating foundation. 1040 ez tax table Gross receipts test. 1040 ez tax table   For purposes of the gross receipts test, an organization normally does not have more than $5,000 annually in gross receipts if: During its first tax year the organization received gross receipts of $7,500 or less, During its first 2 years the organization had a total of $12,000 or less in gross receipts, and In the case of an organization that has been in existence for at least 3 years, the total gross receipts received by the organization during the immediately preceding 2 years, plus the current year, are $15,000 or less. 1040 ez tax table   An organization with gross receipts more than the amounts in the gross receipts test, unless otherwise exempt from filing Form 1023, must file a Form 1023 within 90 days after the end of the period in which the amounts are exceeded. 1040 ez tax table For example, an organization's gross receipts for its first tax year were less than $7,500, but at the end of its second tax year its gross receipts for the 2-year period were more than $12,000. 1040 ez tax table The organization must file Form 1023 within 90 days after the end of its second tax year. 1040 ez tax table   If the organization had existed for at least 3 tax years and had met the gross receipts test for all prior tax years but fails to meet the requirement for the current tax year, its tax-exempt status for the prior years will not be lost even if Form 1023 is not filed within 90 days after the close of the current tax year. 1040 ez tax table However, the organization will not be treated as a section 501(c)(3) organization for the period beginning with the current tax year and ending with the filing of Form 1023. 1040 ez tax table Example. 1040 ez tax table   An organization is organized and operated exclusively for charitable purposes and is not a private foundation. 1040 ez tax table It was incorporated on January 1, 2009, and files returns on a calendar-year basis. 1040 ez tax table It did not file a Form 1023. 1040 ez tax table The organization's gross receipts during the years 2009 through 2012 were as follows: 2009 $3,600 2010 2,900 2011 400 2012 12,600   The organization's total gross receipts for 2009, 2010, and 2011 were $6,900. 1040 ez tax table Therefore, it did not have to file Form 1023 and is exempt for those years. 1040 ez tax table However, for 2010, 2011, and 2012 the total gross receipts were $15,900. 1040 ez tax table Therefore, the organization must file Form 1023 within 90 days after the end of its 2012 tax year. 1040 ez tax table If it does not file within this time period, it will not be exempt under section 501(c)(3) for the period beginning with tax year 2012 ending when the Form 1023 is received by the IRS. 1040 ez tax table The organization, however, will not lose its exempt status for the tax years ending before January 1, 2012. 1040 ez tax table   The IRS will consider applying the Commissioner's discretionary authority to extend the time for filing Form 1023. 1040 ez tax table See the procedures for this extension discussed earlier. 1040 ez tax table Articles of Organization Your organization must include a conformed copy of its articles of organization with the application for recognition of exemption. 1040 ez tax table This may be its trust instrument, corporate charter, articles of association, or any other written instrument by which it is created. 1040 ez tax table Organizational Test The articles of organization must limit the organization's purposes to one or more of those described at the beginning of this chapter and must not expressly empower it to engage, other than as an insubstantial part of its activities, in activities that do not further one or more of those purposes. 1040 ez tax table These conditions for exemption are referred to as the organizational test. 1040 ez tax table Section 501(c)(3) is the provision of law that grants exemption to the organizations described in this chapter. 1040 ez tax table Therefore, the organizational test may be met if the purposes stated in the articles of organization are limited in some way by reference to section 501(c)(3). 1040 ez tax table The requirement that your organization's purposes and powers must be limited by the articles of organization is not satisfied if the limit is contained only in the bylaws or other rules or regulations. 1040 ez tax table Moreover, the organizational test is not satisfied by statements of your organization's officers that you intend to operate only for exempt purposes. 1040 ez tax table Also, the test is not satisfied by the fact that your actual operations are for exempt purposes. 1040 ez tax table In interpreting an organization's articles, the law of the state where the organization was created is controlling. 1040 ez tax table If an organization contends that the terms of its articles have a different meaning under state law than their generally accepted meaning, such meaning must be established by a clear and convincing reference to relevant court decisions, opinions of the state attorney general, or other appropriate state authorities. 1040 ez tax table The following are examples illustrating the organizational test. 1040 ez tax table Example 1. 1040 ez tax table Articles of organization state that an organization is formed exclusively for literary and scientific purposes within the meaning of section 501(c)(3). 1040 ez tax table These articles appropriately limit the organization's purposes. 1040 ez tax table The organization meets the organizational test. 1040 ez tax table Example 2. 1040 ez tax table An organization, by the terms of its articles, is formed to engage in research without any further description or limitation. 1040 ez tax table The organization will not be properly limited as to its purposes since all research is not scientific. 1040 ez tax table The organization does not meet the organizational test. 1040 ez tax table Example 3. 1040 ez tax table An organization's articles state that its purpose is to receive contributions and pay them over to organizations that are described in section 501(c)(3) and exempt from taxation under section 501(a). 1040 ez tax table The organization meets the organizational test. 1040 ez tax table Example 4. 1040 ez tax table If a stated purpose in the articles is the conduct of a school of adult education and its manner of operation is described in detail, such a purpose will be satisfactorily limited. 1040 ez tax table Example 5. 1040 ez tax table If the articles state the organization is formed for charitable purposes, without any further description, such language ordinarily will be sufficient since the term charitable has a generally accepted legal meaning. 1040 ez tax table On the other hand, if the purposes are stated to be charitable, philanthropic, and benevolent, the organizational requirement will not be met since the terms philanthropic and benevolent have no generally accepted legal meaning and, therefore, the stated purposes may, under the laws of the state, permit activities that are broader than those intended by the exemption law. 1040 ez tax table Example 6. 1040 ez tax table If the articles state an organization is formed to promote American ideals, or to foster the best interests of the people, or to further the common welfare and well-being of the community, without any limitation or provision restricting such purposes to accomplishment only in a charitable manner, the purposes will not be sufficiently limited. 1040 ez tax table Such purposes are vague and may be accomplished other than in an exempt manner. 1040 ez tax table Example 7. 1040 ez tax table A stated purpose to operate a hospital does not meet the organizational test since it is not necessarily charitable. 1040 ez tax table A hospital may or may not be exempt depending on the manner in which it is operated. 1040 ez tax table Example 8. 1040 ez tax table An organization that is expressly empowered by its articles to carry on social activities will not be sufficiently limited as to its power, even if its articles state that it is organized and will be operated exclusively for charitable purposes. 1040 ez tax table Dedication and Distribution of Assets Assets of an organization must be permanently dedicated to an exempt purpose. 1040 ez tax table This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the Federal Government or to a state or local government for a public purpose. 1040 ez tax table If the assets could be distributed to members or private individuals or for any other purpose, the organizational test is not met. 1040 ez tax table Dedication. 1040 ez tax table   To establish that your organization's assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision ensuring their distribution for an exempt purpose in the event of dissolution. 1040 ez tax table Although reliance can be placed upon state law to establish permanent dedication of assets for exempt purposes, your organization's application probably can be processed much more rapidly if its articles of organization include a provision ensuring permanent dedication of assets for exempt purposes. 1040 ez tax table Distribution. 1040 ez tax table   Revenue Procedure 82-2, 1982-1 C. 1040 ez tax table B. 1040 ez tax table 367, identifies the states and circumstances in which the IRS will not require an express provision for the distribution of assets upon dissolution in the articles of organization. 1040 ez tax table The procedure also provides a sample of an acceptable dissolution provision for organizations required to have one. 1040 ez tax table   If a named beneficiary is to be the distributee, it must be one that would qualify and would be exempt within the meaning of section 501(c)(3) at the time the dissolution takes place. 1040 ez tax table Since the named beneficiary at the time of dissolution may not be qualified, may not be in existence, or may be unwilling or unable to accept the assets of the dissolving organization, a provision should be made for distribution of the assets for one or more of the purposes specified in this chapter in the event of any such contingency. 1040 ez tax table Sample articles of organization. 1040 ez tax table   See sample articles of organization in the Appendix in the back of this publication. 1040 ez tax table Educational Organizations and Private Schools If your organization wants to obtain recognition of exemption as an educational organization, you must submit complete information as to how your organization carries on or plans to carry on its educational activities, such as by conducting a school, by panels, discussions, lectures, forums, radio and television programs, or through various cultural media such as museums, symphony orchestras, or art exhibits. 1040 ez tax table In each instance, you must explain by whom and where these activities are or will be conducted and the amount of admission fees, if any. 1040 ez tax table You must submit a copy of the pertinent contracts, agreements, publications, programs, etc. 1040 ez tax table If you are organized to conduct a school, you must submit full information regarding your tuition charges, number of faculty members, number of full-time and part-time students enrolled, courses of study and degrees conferred, together with a copy of your school catalog. 1040 ez tax table See also Private Schools , discussed later. 1040 ez tax table Educational Organizations The term educational relates to: The instruction or training of individuals for the purpose of improving or developing their capabilities, or The instruction of the public on subjects useful to individuals and beneficial to the community. 1040 ez tax table Advocacy of a position. 1040 ez tax table   Advocacy of a particular position or viewpoint may be educational if there is a sufficiently full and fair exposition of pertinent facts to permit an individual or the public to form an independent opinion or conclusion. 1040 ez tax table The mere presentation of unsupported opinion is not educational. 1040 ez tax table Method not educational. 1040 ez tax table   The method used by an organization to develop and present its views is a factor in determining if an organization qualifies as educational within the meaning of section 501(c)(3). 1040 ez tax table The following factors may indicate that the method is not educational. 1040 ez tax table The presentation of viewpoints unsupported by facts is a significant part of the organization's communications. 1040 ez tax table The facts that purport to support the viewpoint are distorted. 1040 ez tax table The organization's presentations make substantial use of inflammatory and disparaging terms and express conclusions more on the basis of emotion than of objective evaluations. 1040 ez tax table The approach used is not aimed at developing an understanding on the part of the audience because it does not consider their background or training. 1040 ez tax table   Exceptional circumstances, however, may exist where an organization's advocacy may be educational even if one or more of the factors listed above are present. 1040 ez tax table Qualifying organizations. 1040 ez tax table   The following types of organizations may qualify as educational: An organization, such as a primary or secondary school, a college, or a professional or trade school, that has a regularly scheduled curriculum, a regular faculty, and a regularly enrolled student body in attendance at a place where the educational activities are regularly carried on, An organization whose activities consist of conducting public discussion groups, forums, panels, lectures, or other similar programs, An organization that presents a course of instruction by correspondence or through the use of television or radio, A museum, zoo, planetarium, symphony orchestra, or other similar organization, A nonprofit children's day-care center, and A credit counseling organization. 1040 ez tax table College book stores, cafeterias, restaurants, etc. 1040 ez tax table   These and other on-campus organizations should submit information to show that they are controlled by and operated for the convenience of the faculty and student body or by whom they are controlled and whom they serve. 1040 ez tax table Alumni association. 1040 ez tax table   An alumni association should establish that it is organized to promote the welfare of the university with which it is affiliated, is subject to the control of the university as to its policies and destination of funds, and is operated as an integral part of the university or is otherwise organized to promote the welfare of the college or university. 1040 ez tax table If your association does not have these characteristics, it may still be exempt as a social club if it meets the requirements described in chapter 4, under 501(c)(7) - Social and Recreation Clubs . 1040 ez tax table Athletic organization. 1040 ez tax table   This type of organization must submit evidence that it is engaged in activities such as directing and controlling interscholastic athletic competitions, conducting tournaments, and prescribing eligibility rules for contestants. 1040 ez tax table If it is not so engaged, your organization may be exempt as a social club described in chapter 4. 1040 ez tax table Raising funds to be used for travel and other activities to interview and persuade prospective students with outstanding athletic ability to attend a particular university does not show an exempt purpose. 1040 ez tax table If your organization is not exempt as an educational organization, see Amateur Athletic Organizations , later in this chapter. 1040 ez tax table Private Schools Every private school filing an application for recognition of tax-exempt status must supply the IRS (on Schedule B, Form 1023) with the following information. 1040 ez tax table The racial composition of the student body, and of the faculty and administrative staff, as of the current academic year. 1040 ez tax table (This information also must be projected, so far as may be feasible, for the next academic year. 1040 ez tax table ) The amount of scholarship and loan funds, if any, awarded to students enrolled and the racial composition of students who have received the awards. 1040 ez tax table A list of the school's incorporators, founders, board members, and donors of land or buildings, whether individuals or organizations. 1040 ez tax table A statement indicating whether any of the organizations described in item (3) above have an objective of maintaining segregated public or private school education at the time the application is filed and, if so, whether any of the individuals described in item (3) are officers or active members of those organizations at the time the application is filed. 1040 ez tax table The public school district and county in which the school is located. 1040 ez tax table How to determine racial composition. 1040 ez tax table   The racial composition of the student body, faculty, and administrative staff can be an estimate based on the best information readily available to the school, without requiring student applicants, students, faculty, or administrative staff to submit to the school information that the school otherwise does not require. 1040 ez tax table Nevertheless, a statement of the method by which the racial composition was determined must be supplied. 1040 ez tax table The identity of individual students or members of the faculty and administrative staff should not be included with this information. 1040 ez tax table   A school that is a state or municipal instrumentality (see Instrumentalities , near the beginning of this chapter), whether or not it qualifies for exemption under section 501(c)(3), is not considered to be a private school for purposes of the following discussion. 1040 ez tax table Racially Nondiscriminatory Policy To qualify as an organization exempt from federal income tax, a private school must include a statement in its charter, bylaws, or other governing instrument, or in a resolution of its governing body, that it has a racially nondiscriminatory policy as to students and that it does not discriminate against applicants and students on the basis of race, color, or national or ethnic origin. 1040 ez tax table Also, the school must circulate information that clearly states the school's admission policies. 1040 ez tax table A racially nondiscriminatory policy toward students means that the school admits the students of any race to all the rights, privileges, programs, and activities generally accorded or made available to students at that school and that the school does not discriminate on the basis of race in administering its educational policies, admission policies, scholarship and loan programs, and athletic and other school-administered programs. 1040 ez tax table The IRS considers discrimination on the basis of race to include discrimination on the basis of color or national or ethnic origin. 1040 ez tax table The existence of a racially discriminatory policy with respect to the employment of faculty and administrative staff is indicative of a racially discriminatory policy as to students. 1040 ez tax table Conversely, the absence of racial discrimination in the employment of faculty and administrative staff is indicative of a racially nondiscriminatory policy as to students. 1040 ez tax table A policy of a school that favors racial minority groups with respect to admissions, facilities and programs, and financial assistance is not discrimination on the basis of race when the purpose and effect of this policy is to promote establishing and maintaining the school's nondiscriminatory policy. 1040 ez tax table A school that selects students on the basis of membership in a religious denomination or unit is not discriminating if membership in the denomination or unit is open to all on a racially nondiscriminatory basis. 1040 ez tax table Policy statement. 1040 ez tax table   The school must include a statement of its racially nondiscriminatory policy in all its brochures and catalogs dealing with student admissions, programs, and scholarships. 1040 ez tax table Also, the school must include a reference to its racially nondiscriminatory policy in other written advertising that it uses to inform prospective students of its programs. 1040 ez tax table Publicity requirement. 1040 ez tax table   The school must make its racially nondiscriminatory policy known to all segments of the general community served by the school. 1040 ez tax table Selective communication of a racially nondiscriminatory policy that a school provides solely to leaders of racial groups will not be considered an effective means of communication to make the policy known to all segments of the community. 1040 ez tax table To satisfy this requirement, the school must use one of the following two methods. 1040 ez tax table Method one. 1040 ez tax table   The school can publish a notice of its racially nondiscriminatory policy in a newspaper of general circulation that serves all racial segments of the community. 1040 ez tax table Such publication must be repeated at least once annually during the period of the school's solicitation for students or, in the absence of a solicitation program, during the school's registration period. 1040 ez tax table When more than one community is served by a school, the school can publish the notice in those newspapers that are reasonably likely to be read by all racial segments in the communities that the school serves. 1040 ez tax table If this method is used, the notice must meet the following printing requirements. 1040 ez tax table It must appear in a section of the newspaper likely to be read by prospective students and their families. 1040 ez tax table It must occupy at least 3 column inches. 1040 ez tax table It must have its title printed in at least 12 point bold face type. 1040 ez tax table It must have the remaining text printed in at least 8 point type. 1040 ez tax table The following is an acceptable example of the notice:   NOTICE OF NONDISCRIMINATORY POLICY AS TO STUDENTS     The M School admits students of any race, color, national and ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students at the school. 1040 ez tax table It does not discriminate on the basis of race, color, national and ethnic origin in administration of its educational policies, admissions policies, scholarship and loan programs, and athletic and other school-administered programs. 1040 ez tax table   Method two. 1040 ez tax table   The school can use the broadcast media to publicize its racially nondiscriminatory policy if this use makes the policy known to all segments of the general community the school serves. 1040 ez tax table If the school uses this method, it must provide documentation showing that the means by which this policy was communicated to all segments of the general community was reasonably expected to be effective. 1040 ez tax table In this case, appropriate documentation would include copies of the tapes or scripts used and records showing that there was an adequate number of announcements. 1040 ez tax table The documentation also would include proof that these announcements were made during hours when they were likely to be communicated to all segments of the general community, that they were long enough to convey the message clearly, and that they were broadcast on radio or television stations likely to be listened to by substantial numbers of members of all racial segments of the general community. 1040 ez tax table Announcements must be made during the period of the school's solicitation for students or, in the absence of a solicitation program, during the school's registration period. 1040 ez tax table Exceptions. 1040 ez tax table   The publicity requirements will not apply in the following situations. 1040 ez tax table First, if for the preceding 3 years the enrollment of a parochial or other church-related school consists of students at least 75% of whom are members of the sponsoring religious denomination or unit, the school can make known its racially nondiscriminatory policy in whatever newspapers or circulars the religious denomination or unit uses in the communities from which the students are drawn. 1040 ez tax table These newspapers and circulars can be distributed by a particular religious denomination or unit or by an association that represents a number of religious organizations of the same denomination. 1040 ez tax table If, however, the school advertises in newspapers of general circulation in the community or communities from which its students are drawn and the second exception (discussed next) does not apply to the school, then it must comply with either of the publicity requirements explained earlier. 1040 ez tax table Second, if a school customarily draws a substantial percentage of its students nationwide, worldwide, from a large geographic section or sections of the United States, or from local communities, and if the school follows a racially nondiscriminatory policy as to its students, the school may satisfy the publicity requirement by complying with the instructions explained earlier under Policy statement . 1040 ez tax table   The school can demonstrate that it follows a racially nondiscriminatory policy either by showing that it currently enrolls students of racial minority groups in meaningful numbers or, except for local community schools, when minority students are not enrolled in meaningful numbers, that its promotional activities and recruiting efforts in each geographic area were reasonably designed to inform students of all racial segments in the general communities within the area of the availability of the school. 1040 ez tax table The question as to whether a school demonstrates such a policy satisfactorily will be determined on the basis of the facts and circumstances of each case. 1040 ez tax table   The IRS recognizes that the failure by a school drawing its students from local communities to enroll racial minority group students may not necessarily indicate the absence of a racially nondiscriminatory policy when there are relatively few or no such students in these communities. 1040 ez tax table Actual enrollment is, however, a meaningful indication of a racially nondiscriminatory policy in a community in which a public school or schools became subject to a desegregation order of a federal court or are otherwise expressly obligated to implement a desegregation plan under the terms of any written contract or other commitment to which any federal agency was a party. 1040 ez tax table   The IRS encourages schools to satisfy the publicity requirement by using either of the methods described earlier, even though a school considers itself to be within one of the Exceptions. 1040 ez tax table The IRS believes that these publicity requirements are the most effective methods to make known a school's racially nondiscriminatory policy. 1040 ez tax table In this regard, it is each school's responsibility to determine whether either of the exceptions applies. 1040 ez tax table Such responsibility will prepare the school, if it is audited by the IRS, to demonstrate that the failure to publish its racially nondiscriminatory policy in accordance with either one of the publicity requirements was justified by one of the exceptions. 1040 ez tax table Also, a school must be prepared to demonstrate that it has publicly disavowed or repudiated any statements purported to have been made on its behalf (after November 6, 1975) that are contrary to its publicity of a racially nondiscriminatory policy as to students, to the extent that the school or its principal official was aware of these statements. 1040 ez tax table Facilities and programs. 1040 ez tax table   A school must be able to show that all of its programs and facilities are operated in a racially nondiscriminatory manner. 1040 ez tax table Scholarship and loan programs. 1040 ez tax table   As a general rule, all scholarship or other comparable benefits obtainable at the school must be offered on a racially nondiscriminatory basis. 1040 ez tax table This must be known throughout the general community being served by the school and should be referred to in its publicity. 1040 ez tax table Financial assistance programs, as well as scholarships and loans made under financial assistance programs, that favor members of one or more racial minority groups and that do not significantly detract from or are designed to promote a school's racially nondiscriminatory policy will not adversely affect the school's exempt status. 1040 ez tax table Certification. 1040 ez tax table   An individual authorized to take official action on behalf of a school that claims to be racially nondiscriminatory as to students must certify annually, under penalties of perjury, on Schedule E (Form 990 or 990-EZ) or Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax, whichever applies, that to the best of his or her knowledge and belief the school has satisfied all requirements that apply, as previously explained. 1040 ez tax table   Failure to comply with the guidelines ordinarily will result in the proposed revocation of the exempt status of a school. 1040 ez tax table Recordkeeping requirements. 1040 ez tax table With certain exceptions, given later, each exempt private school must maintain the following records for a minimum period of 3 years, beginning with the year after the year of compilation or acquisition. 1040 ez tax table Records indicating the racial composition of the student body, faculty, and administrative staff for each academic year. 1040 ez tax table Records sufficient to document that scholarship and other financial assistance is awarded on a racially nondiscriminatory basis. 1040 ez tax table Copies of all materials used by or on behalf of the school to solicit contributions. 1040 ez tax table Copies of all brochures, catalogs, and advertising dealing with student admissions, programs, and scholarships. 1040 ez tax table (Schools advertising nationally or in a large geographic segment or segments of the United States need only maintain a record sufficient to indicate when and in what publications their advertisements were placed. 1040 ez tax table ) The racial composition of the student body, faculty, and administrative staff can be determined in the same manner as that described at the beginning of this section. 1040 ez tax table However, a school cannot discontinue maintaining a system of records that reflect the racial composition of its students, faculty, and administrative staff used on November 6, 1975, unless it substitutes a different system that compiles substantially the same information, without advance approval of the IRS. 1040 ez tax table The IRS does not require that a school release any personally identifiable records or personal information except in accordance with the requirements of the Family Educational Rights and Privacy Act of 1974. 1040 ez tax table Similarly, the IRS does not require a school to keep records prohibited under state or federal law. 1040 ez tax table Exceptions. 1040 ez tax table   The school does not have to independently maintain these records for IRS use if both of the following are true. 1040 ez tax table Substantially the same information has been included in a report or reports filed with an agency or agencies of federal, state, or local governments, and this information is current within 1 year. 1040 ez tax table The school maintains copies of these reports from which this information is readily obtainable. 1040 ez tax table If these reports do not include all of the information required, as discussed earlier, records providing such remaining information must be maintained by the school for IRS use. 1040 ez tax table Failure to maintain records. 1040 ez tax table   Failure to maintain or to produce the required records and information, upon proper request, will create a presumption that the organization has failed to comply with these guidelines. 1040 ez tax table Organizations Providing Insurance An organization described in sections 501(c)(3) or 501(c)(4) may be exempt from tax only if no substantial part of its activities consists of providing commercial-type insurance. 1040 ez tax table However, this rule does not apply to state-sponsored organizations described in sections 501(c)(26) or 501(c)(27), which are discussed in chapter 4, or to charitable risk pools, discussed next. 1040 ez tax table Charitable Risk Pools A charitable risk pool is treated as organized and operated exclusively for charitable purposes if it: Is organized and operated only to pool insurable risks of its members (not including risks related to medical malpractice) and to provide information to its members about loss control and risk management, Consists only of members that are section 501(c)(3) organizations exempt from tax under section 501(a), Is organized under state law authorizing this type of risk pooling, Is exempt from state income tax (or will be after qualifying as a section 501(c)(3) organization), Has obtained at least $1,000,000 in startup capital from nonmember charitable organizations, Is controlled by a board of directors elected by its members, and Is organized under documents requiring that: Each member be a section 501(c)(3) organization exempt from tax under section 501(a), Each member that receives a final determination that it no longer qualifies under section 501(c)(3) notify the pool immediately, and Each insurance policy issued by the pool provide that it will not cover events occurring after a final determination described in (b). 1040 ez tax table Other Section 501(c)(3) Organizations In addition to the information required for all organizations, as described earlier, you should include any other information described in this section. 1040 ez tax table Charitable Organizations If your organization is applying for recognition of exemption as a charitable organization, it must show that it is organized and operated for purposes that are beneficial to the public interest. 1040 ez tax table Some examples of this type of organization are those organized for: Relief of the poor, the distressed, or the underprivileged, Advancement of religion, Advancement of education or science, Erection or maintenance of public buildings, monuments, or works, Lessening the burdens of government, Lessening of neighborhood tensions, Elimination of prejudice and discrimination, Defense of human and civil rights secured by law, and Combating community deterioration and juvenile delinquency. 1040 ez tax table The rest of this section contains a description of the information to be provided by certain specific organizations. 1040 ez tax table This information is in addition to the required inclusions described in chapter 1, and other statements requested on Form 1023. 1040 ez tax table Each of the following organizations must submit the information described. 1040 ez tax table Charitable organization supporting education. 1040 ez tax table   Submit information showing how your organization supports education — for example, contributes to an existing educational institution, endows a professorial chair, contributes toward paying teachers' salaries, or contributes to an educational institution to enable it to carry on research. 1040 ez tax table Scholarships. 1040 ez tax table   If the organization awards or plans to award scholarships, complete Schedule H of Form 1023. 1040 ez tax table Also, submit the following: Criteria used for selecting recipients, including the rules of eligibility. 1040 ez tax table How and by whom the recipients are or will be selected. 1040 ez tax table If awards are or will be made directly to individuals, whether information is required assuring that the student remains in school. 1040 ez tax table If awards are or will be made to recipients of a particular class, for example, children of employees of a particular employer— Whether any preference is or will be accorded an applicant by reason of the parent's position, length of employment, or salary, Whether as a condition of the award the recipient must upon graduation accept employment with the company, and Whether the award will be continued even if the parent's employment ends. 1040 ez tax table A copy of the scholarship application form and any brochures or literature describing the scholarship program. 1040 ez tax table Hospital. 1040 ez tax table   If you are organized to operate a charitable hospital, complete and attach Section I of Schedule C, Form 1023. 1040 ez tax table   If your hospital was transferred to you from proprietary ownership, complete and attach Schedule G of Form 1023. 1040 ez tax table You must attach a list showing: The names of the active and courtesy staff members of the proprietary hospital, as well as the names of your medical staff members after the transfer to nonprofit ownership, and The names of any doctors who continued to lease office space in the hospital after its transfer to nonprofit ownership and the amount of rent paid. 1040 ez tax table Submit also an appraisal showing the fair rental value of the rented space. 1040 ez tax table Clinic. 1040 ez tax table   If you are organized to operate a clinic, attach a statement including: A description of the facilities and services, To whom the services are offered, such as the public at large or a specific group, How charges are determined, such as on a profit basis, to recover costs, or at less than cost, By whom administered and controlled, Whether any of the professional staff (that is, those who perform or will perform the clinical services) also serve or will serve in an administrative capacity, and How compensation paid the professional staff is or will be determined. 1040 ez tax table Home for the aged. 1040 ez tax table   If you are organized to operate a home for the aged, complete and attach Schedule F of Form 1023 and required attachments. 1040 ez tax table Community nursing bureau. 1040 ez tax table   If you provide a nursing register or community nursing bureau, provide information showing that your organization will be operated as a community project and will receive its primary support from public contributions to maintain a nonprofit register of qualified nursing personnel, including graduate nurses, unregistered nursing school graduates, licensed attendants and practical nurses for the benefit of hospitals, health agencies, doctors, and individuals. 1040 ez tax table Organization providing loans. 1040 ez tax table   If you make, or will make, loans for charitable and educational purposes, submit the following information. 1040 ez tax table An explanation of the circumstances under which such loans are, or will be, made. 1040 ez tax table Criteria for selection, including the rules of eligibility. 1040 ez tax table How and by whom the recipients are or will be selected. 1040 ez tax table Manner of repayment of the loan. 1040 ez tax table Security required, if any. 1040 ez tax table Interest charged, if any, and when payable. 1040 ez tax table Copies in duplicate of the loan application and any brochures or literature describing the loan program. 1040 ez tax table Public-interest law firms. 1040 ez tax table   If your organization was formed to litigate in the public interest (as opposed to providing legal services to the poor), such as in the area of protection of the environment, you should submit the following information. 1040 ez tax table How the litigation can reasonably be said to be representative of a broad public interest rather than a private one. 1040 ez tax table Whether the organization will accept fees for its services. 1040 ez tax table A description of the cases litigated or to be litigated and how they benefit the public generally. 1040 ez tax table Whether the policies and program of the organization are the responsibility of a board or committee representative of the public interest, which is neither controlled by employees or persons who litigate on behalf of the organization nor by any organization that is not itself an organization described in this chapter. 1040 ez tax table Whether the organization is operated, through sharing of office space or otherwise, in a way to create identification or confusion with a particular private law firm. 1040 ez tax table Whether there is an arrangement to provide, directly or indirectly, a deduction for the cost of litigation that is for the private benefit of the donor. 1040 ez tax table Acceptance of attorneys' fees. 1040 ez tax table   A nonprofit public-interest law firm can accept attorneys' fees in public-interest cases if the fees are paid directly by its clients and the fees are not more than the actual costs incurred in the case. 1040 ez tax table Upon undertaking a representation, the organization cannot withdraw from the case because the litigant is unable to pay the fee. 1040 ez tax table   Firms can accept fees awarded or approved by a court or an administrative agency and paid by an opposing party if the firms do not use the likelihood or probability of fee awards as a consideration in the selection of cases. 1040 ez tax table All fee awards must be paid to the organization and not to its individual staff attorneys. 1040 ez tax table Instead, a public-interest law firm can reasonably compensate its staff attorneys, but only on a straight salary basis. 1040 ez tax table Private attorneys, whose services are retained by the firm to assist it in particular cases, can be compensated by the firm, but only on a fixed fee or salary basis. 1040 ez tax table   The total amount of all attorneys' fees (court awarded and those received from clients) must not be more than 50% of the total cost of operations of the organization's legal functions, calculated over a 5-year period. 1040 ez tax table   If, in order to carry out its program, an organization violates applicable canons of ethics, disrupts the judicial system, or engages in any illegal action, the organization will jeopardize its exemption. 1040 ez tax table Religious Organizations To determine whether an organization meets the religious purposes test of section 501(c)(3), the IRS maintains two basic guidelines. 1040 ez tax table That the particular religious beliefs of the organization are truly and sincerely held. 1040 ez tax table That the practices and rituals associated with the organization's religious belief or creed are not illegal or contrary to clearly defined public policy. 1040 ez tax table Therefore, your group (or organization) may not qualify for treatment as an exempt religious organization for tax purposes if its actions, as contrasted with its beliefs, are contrary to well established and clearly defined public policy. 1040 ez tax table If there is a clear showing that the beliefs (or doctrines) are sincerely held by those professing them, the IRS will not question the religious nature of those beliefs. 1040 ez tax table Churches. 1040 ez tax table   Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to be exempt from federal income tax or to receive tax deductible contributions, the organization may find it advantageous to obtain recognition of exemption. 1040 ez tax table In this event, you should submit information showing that your organization is a church, synagogue, association or convention of churches, religious order, or religious organization that is an integral part of a church, and that it is engaged in carrying out the function of a church. 1040 ez tax table   In determining whether an admittedly religious organization is also a church, the IRS does not accept every assertion that the organization is a church. 1040 ez tax table Because beliefs and practices vary so widely, there is no single definition of the word church for tax purposes. 1040 ez tax table The IRS considers the facts and circumstances of each organization applying for church status. 1040 ez tax table Convention or association of churches. 1040 ez tax table   Any organization that is otherwise a convention or association of churches will not fail to qualify as a church merely because the membership of the organization includes individuals as well as churches or because the individuals have voting rights in the organization. 1040 ez tax table Integrated auxiliaries. 1040 ez tax table   An organization is an integrated auxiliary of a church if all the following are true. 1040 ez tax table The organization is described both in sections 501(c)(3) and 509(a)(1), 509(a)(2), or 509(a)(3). 1040 ez tax table It is affiliated with a church or a convention or association of churches. 1040 ez tax table It is internally supported. 1040 ez tax table An organization is internally supported unless both of the following are true. 1040 ez tax table It offers admissions, goods, services, or facilities for sale, other than on an incidental basis, to the general public (except goods, services, or facilities sold at a nominal charge or for a small part of the cost). 1040 ez tax table It normally gets more than 50% of its support from a combination of governmental sources, public solicitation of contributions, and receipts from the sale of admissions, goods, performance of services, or furnishing of facilities in activities that are not unrelated trades or businesses. 1040 ez tax table Special rule. 1040 ez tax table   Men's and women's organizations, seminaries, mission societies, and youth groups that satisfy (1) and (2) shown earlier are integrated auxiliaries of a church even if they are not internally supported. 1040 ez tax table   In order for an organization (including a church and religious organization) to qualify for tax exemption, no part of its net earnings can inure to any individual. 1040 ez tax table   Although an individual is entitled to a charitable deduction for contributions to a church, the assignment or similar transfer of compensation for personal services to a church generally does not relieve a taxpayer of federal income tax liability on the compensation, regardless of the motivation behind the transfer. 1040 ez tax table Scientific Organizations You must show that your organization's research will be carried on in the public interest. 1040 ez tax table Scientific research will be considered to be in the public interest if the results of the research (including any patents, copyrights, processes, or formulas) are made available to the public on a nondiscriminatory basis; if the research is performed for the United States or a state, county, or municipal government; or if the research is carried on for one of the following purposes. 1040 ez tax table Aiding in the scientific education of college or university students. 1040 ez tax table Obtaining scientific information that is published in a treatise, thesis, trade publication, or in any other form th