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1040ez Form 2013 Instructions

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1040ez Form 2013 Instructions

1040ez form 2013 instructions 1. 1040ez form 2013 instructions   Application, Approval, and Appeal Procedures Table of Contents Introduction Topics - This chapter discusses: Application ProceduresForms Required Required Inclusions Miscellaneous Procedures Rulings and Determination LettersEffective Date of Exemption Revocation or Modification of Exemption Appeal ProceduresAppeals Office Consideration EO Technical Consideration Administrative Remedies Appeal to Courts Group Exemption LetterCentral Organization Application Procedure Keeping the Group Exemption Letter in Force Events Causing Loss of Group Exemption Introduction If your organization is one of the organizations described in this publication and is seeking recognition of tax-exempt status from the IRS, you should follow the procedures described in this chapter and the instructions that accompany the appropriate application forms. 1040ez form 2013 instructions For information on section 501(c)(3) organizations, go to Section 501(c)(3) Organizations chapter 3. 1040ez form 2013 instructions If your organization is seeking exemption under one of the other paragraphs of section 501(c), see chapter 4. 1040ez form 2013 instructions Topics - This chapter discusses: Application procedures that generally apply to all organizations discussed in this publication, including the application forms; Rulings and determination letters (approvals/disapprovals); Appeal procedures available if an adverse determination letter is proposed; and Group exemption letters. 1040ez form 2013 instructions Application Procedures Oral requests for recognition of exemption will not be considered by the IRS. 1040ez form 2013 instructions Your application for tax-exempt status must be in writing using the appropriate forms as discussed below. 1040ez form 2013 instructions Forms Required If your organization is seeking recognition of exemption from federal income tax, it must use a specific application prescribed by the IRS in Revenue Procedure 2013–9, sec. 1040ez form 2013 instructions 3. 1040ez form 2013 instructions If your organization is a central organization with exempt status, see Group Exemption Letter , later. 1040ez form 2013 instructions All applications must be signed by an authorized individual. 1040ez form 2013 instructions Form 1023, Application for Recognition of Exemption. 1040ez form 2013 instructions   File Form 1023 if you are seeking recognition of exemption under section: 501(c)(3) Corporations, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports, or prevention of cruelty for children or animals, 501(e) Cooperative hospital service organization, 501(f) Cooperative service organization of operating educational organizations, 501(k) Certain organizations providing child care, 501(n) Charitable risk pools, and 501(q) Credit counseling organizations. 1040ez form 2013 instructions Form 1024, Application for Recognition of Exemption Under Section 501(a). 1040ez form 2013 instructions    File Form 1024 if you are seeking recognition of exemption under section: 501(c)(2) Title holding corporations, 501(c)(4) Civic leagues, social welfare organizations, 501(c)(5) Labor, agricultural, or horticultural organizations, 501(c)(6) Business leagues, chambers of commerce, etc. 1040ez form 2013 instructions , 501(c)(7) Social clubs, 501(c)(8) Fraternal beneficiary societies, orders, or associations, 501(c)(9) Voluntary employees’ beneficiary associations, 501(c)(10) Domestic fraternal societies, orders, etc. 1040ez form 2013 instructions , 501(c)(12) Benevolent life insurance associations, mutual ditch or irrigation companies, mutual or cooperative telephone companies, 501(c)(13) Cemetery companies, 501(c)(15) Mutual insurance companies or associations, 501(c)(17) Trusts providing for the payment of supplemental unemployment compensation benefits, 501(c)(19) A post, organization, auxiliary unit, etc. 1040ez form 2013 instructions of past or present members of the Armed Forces of the United States, and 501(c)(25) Title holding corporations or trusts. 1040ez form 2013 instructions  Form 8718, User Fee for Exempt Organization Determination Letter Request, must also be sent along with Form 1024. 1040ez form 2013 instructions Letter application. 1040ez form 2013 instructions   If your organization is seeking recognition of exemption under section 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29), submit a letter application with Form 8718. 1040ez form 2013 instructions See Required Inclusions for the information to include with the letter application. 1040ez form 2013 instructions Form 1028. 1040ez form 2013 instructions   Use Form 1028 if your organization is a farmers’ cooperative seeking recognition of exemption under section 521. 1040ez form 2013 instructions You must also submit Form 8718. 1040ez form 2013 instructions Form 8871. 1040ez form 2013 instructions    Use Form 8871 if you are a political party or campaign committee for a candidate for federal, state or local office seeking to be treated as tax-exempt under section 527. 1040ez form 2013 instructions See Political Organization Income Tax Return , later. 1040ez form 2013 instructions    Some organizations do not have to use specific application forms. 1040ez form 2013 instructions The application your organization must use is specified in the chapter in this publication dealing with your kind of organization. 1040ez form 2013 instructions It is also shown in the Organization Reference Chart, later. 1040ez form 2013 instructions Power of attorney. 1040ez form 2013 instructions   If your organization expects to be represented by an individual such as an attorney, CPA, officer or other person authorized to practice before the IRS, whether in person or by correspondence, you must file a Form 2848 with your exemption application. 1040ez form 2013 instructions The power of attorney must specifically authorize an individual to represent your organization. 1040ez form 2013 instructions You cannot name an organization, firm, etc. 1040ez form 2013 instructions as your representative. 1040ez form 2013 instructions Form 2848, Power of Attorney and Declaration of Representative, can be used for this purpose. 1040ez form 2013 instructions The categories of individuals who can represent you before the IRS are listed on the form. 1040ez form 2013 instructions Non-exemption for terrorist organizations. 1040ez form 2013 instructions   An organization that is identified or designated as a terrorist organization within the meaning of section 501(p)(2) is not eligible to apply for recognition of exemption. 1040ez form 2013 instructions User fee. 1040ez form 2013 instructions   The law requires the payment of a user fee for determination letter requests such as your application for recognition of tax-exempt status. 1040ez form 2013 instructions If you are filing Form 1023, user fee information is included in Part XI. 1040ez form 2013 instructions If you are required to apply for recognition of exemption by submitting Form 1024, a letter application, etc. 1040ez form 2013 instructions and you must pay a user fee, you should use Form 8718 to figure the amount of your user fee and to pay it. 1040ez form 2013 instructions Your payment must accompany your request. 1040ez form 2013 instructions The IRS will not process a request unless the fee has been paid. 1040ez form 2013 instructions    For the current user fee amount and processing time for applications go to IRS. 1040ez form 2013 instructions gov and select “Charities and Non-Profits” from the buttons near the top. 1040ez form 2013 instructions Then select the underlined link “How to Apply To Be Tax-Exempt” for the latest user fees or I want to check the status of my application for more information. 1040ez form 2013 instructions You can also call 1-877-829-5500. 1040ez form 2013 instructions Required Inclusions Employer identification number (EIN). 1040ez form 2013 instructions   Every exempt organization must have an EIN, whether or not it has any employees. 1040ez form 2013 instructions An EIN is required before an exemption application is submitted. 1040ez form 2013 instructions Information on how to apply for an EIN by using one of the following methods can be found at Employer ID Numbers (EIN): Online— This is the preferred method for requesting an EIN. 1040ez form 2013 instructions The EIN is issued immediately once the application information is validated. 1040ez form 2013 instructions By telephone at 1-800-829-4933, from 7:00 a. 1040ez form 2013 instructions m. 1040ez form 2013 instructions to 7:00 p. 1040ez form 2013 instructions m. 1040ez form 2013 instructions local time, Monday through Friday. 1040ez form 2013 instructions The EIN is provided over the phone to an authorized individual. 1040ez form 2013 instructions By mailing or faxing Form SS-4, Application for Employer Identification Number. 1040ez form 2013 instructions If the faxed Form SS-4 includes the taxpayer's fax number, a fax will be sent back with the EIN within four (4) business days. 1040ez form 2013 instructions    Use only one method for each entity so you do not receive more than one EIN for an entity. 1040ez form 2013 instructions   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. 1040ez form 2013 instructions Organizing documents. 1040ez form 2013 instructions   Your application should include a copy of the organizing or enabling document that is signed by a principal officer or is accompanied by a written declaration signed by an authorized individual certifying that the document is a complete and accurate copy of the original or meets the requirements of a conformed copy. 1040ez form 2013 instructions   If your organizing or enabling document are articles of incorporation, include evidence that it was filed and approved by a state official. 1040ez form 2013 instructions (For example, a stamped “Filed” copy dated by the Secretary of State is prima facie evidence that it was filed and approved by a state official. 1040ez form 2013 instructions ) A copy of the articles of incorporation can also be submitted with a written declaration signed by an authorized individual indicating the copy is complete and was filed and approved by the state, including the date filed. 1040ez form 2013 instructions Bylaws. 1040ez form 2013 instructions   Bylaws alone are not organizing documents. 1040ez form 2013 instructions However, if your organization has adopted bylaws, include a current copy. 1040ez form 2013 instructions The bylaws need not be signed if submitted as an attachment. 1040ez form 2013 instructions   If your organization's name has been officially changed by an amendment to your organizing instruments, you should also attach a conformed copy of that amendment to your application. 1040ez form 2013 instructions    Bylaws may be considered an organizing document only if they are properly structured (includes name, purpose, signatures, and intent to form an organization). 1040ez form 2013 instructions Conformed copy. 1040ez form 2013 instructions   A conformed copy is a copy that agrees with the original and all amendments to it. 1040ez form 2013 instructions If the original document required a signature, the copy should either be signed by a principal officer or, if not signed, be accompanied by a written declaration signed by an authorized officer of the organization. 1040ez form 2013 instructions With either option, the officer must certify that the document is a complete and accurate copy of the original. 1040ez form 2013 instructions A certificate of incorporation should be approved and dated by an appropriate state official. 1040ez form 2013 instructions Attachments. 1040ez form 2013 instructions    When submitting attachments, every attachment should show your organization's name and EIN. 1040ez form 2013 instructions It should also state that it is an attachment to your application form and identify the part and line item number to which it applies. 1040ez form 2013 instructions Original documents. 1040ez form 2013 instructions   Do not submit original documents because they become part of the IRS file and cannot be returned. 1040ez form 2013 instructions Description of activities. 1040ez form 2013 instructions   Your application must include a full description of the proposed activities of your organization, including each of the fundraising activities of a section 501(c)(3) organization and a narrative description of anticipated receipts and contemplated expenditures. 1040ez form 2013 instructions When describing the activities in which your organization expects to engage, you must include the standards, criteria, procedures, or other means that your organization adopted or planned for carrying out those activities. 1040ez form 2013 instructions   To determine the information you need to provide, you should study the part of this publication that applies to your organization. 1040ez form 2013 instructions The appropriate chapter will describe the purposes and activities that your organization must pursue, engage in, and include in your application in order to achieve exempt status. 1040ez form 2013 instructions   Often, your organization's articles of organization (or other organizing instruments) contain descriptions of your organization's purposes and activities. 1040ez form 2013 instructions   Your application should describe completely and in detail your past, present, and planned activities. 1040ez form 2013 instructions Financial data. 1040ez form 2013 instructions   You must include in your application financial statements showing your receipts and expenditures and a balance sheet for the current year and the 3 preceding years (or for the number of years your organization was in existence, if less than 4 years). 1040ez form 2013 instructions For each accounting period, you must describe the sources of your receipts and the nature of your expenditures. 1040ez form 2013 instructions   If you have not yet begun operations, or have operated for less than 1 year, a proposed budget for 2 full accounting periods and a current statement of assets and liabilities will be acceptable. 1040ez form 2013 instructions Exempt status established in application. 1040ez form 2013 instructions   If your application and its supporting documents show that your organization meets the requirements for tax-exempt status under the Code section you applied, the IRS will issue a favorable determination letter or ruling. 1040ez form 2013 instructions Miscellaneous Procedures To help in processing your application, be sure to attach all schedules, statements, and other documents required by the application form. 1040ez form 2013 instructions If you do not attach them, you may have to resubmit your application or you may otherwise encounter a delay in processing your application. 1040ez form 2013 instructions Incomplete application. 1040ez form 2013 instructions   If an application is not complete and does not contain all the required attachments found under Required Inclusions, the IRS may return it to you for completion. 1040ez form 2013 instructions The IRS may keep the application and send a letter requesting the missing information if most of the information has been received. 1040ez form 2013 instructions   If the IRS returns the application or requests additional information from you, that application will be considered filed on the date the substantially completed application is postmarked, or if no postmark, received at the IRS. 1040ez form 2013 instructions   Generally, the user fee will not be refunded if an incomplete application is filed. 1040ez form 2013 instructions   Additional information may be requested if necessary to clarify the nature of your organization. 1040ez form 2013 instructions Application made under wrong paragraph of section 501(c). 1040ez form 2013 instructions   Occasionally, an organization appears to qualify for exemption under a paragraph of section 501(c) that is different from the one for which the organization applied. 1040ez form 2013 instructions If the application was made on Form 1024, which applies to more than one paragraph of section 501(c), the organization can be recognized as exempt under any paragraph to which the form applies if the organization has agreed to have its application considered under that paragraph. 1040ez form 2013 instructions It must also supply any additional information required for the application under the new paragraph. 1040ez form 2013 instructions Different application form needed. 1040ez form 2013 instructions   If a different application form is required for your organization, the IRS will so advise your organization and will provide the appropriate application form for your convenience in reapplying under that paragraph, if you wish to do so. 1040ez form 2013 instructions Although supporting information previously furnished need not be duplicated, you must provide any necessary additional information required for the application. 1040ez form 2013 instructions If your reply is not received within a limited time, your application will be processed only for the paragraph under which you originally applied. 1040ez form 2013 instructions   When a specific application form is needed for the paragraph under which your organization qualifies, that form is required before a letter recognizing exemption can be issued. 1040ez form 2013 instructions This includes cases in which a determination letter is modified to recognize an organization's exempt status under a paragraph other than the paragraph under which it originally established exemption. 1040ez form 2013 instructions IRS responses. 1040ez form 2013 instructions   Organizations that submit a complete application will receive an acknowledgment from the IRS. 1040ez form 2013 instructions Others will receive a letter requesting more information or returning an incomplete application. 1040ez form 2013 instructions Applicants also will be notified if the application is forwarded to EO Technical Office for consideration. 1040ez form 2013 instructions These letters will be sent out as soon as possible after receipt of the organization's application. 1040ez form 2013 instructions Withdrawal of application. 1040ez form 2013 instructions   An application may be withdrawn at any time before the issuance of a ruling or determination letter upon the written request of a principal officer or authorized representative of your organization. 1040ez form 2013 instructions However, the withdrawal will not prevent the information contained in the application from being used by the IRS in any subsequent examination of your organization's returns. 1040ez form 2013 instructions The information forwarded with an application will not be returned to your organization and, generally, when an application is withdrawn, the user fee paid will not be refunded. 1040ez form 2013 instructions Requests for withholding of information from the public. 1040ez form 2013 instructions   The law requires many exempt organizations and private foundations to make their application forms and annual information returns available for public inspection. 1040ez form 2013 instructions The law also requires the IRS to make available for public inspection, in accordance with section 6104 and the related regulations, your approved application for recognition of exemption (including any papers submitted in support of the application) and the ruling or determination letter (discussed later, under Rulings and Determination Letters . 1040ez form 2013 instructions )   Any information submitted in the application or in support of it that relates to any trade secret, patent, process, style of work, or apparatus, upon request, can be withheld from public inspection if the IRS determines that the disclosure of such information would adversely affect the organization. 1040ez form 2013 instructions Your request must: Identify the material to be withheld (the document, page, paragraph, and line) by clearly marking it “Not Subject To Public Inspection. 1040ez form 2013 instructions ” Include the reasons for your organization's position that the information is of the type that can be withheld from public inspection. 1040ez form 2013 instructions Be filed with the office where your organization files the documents in which the material to be withheld is contained. 1040ez form 2013 instructions Where to file. 1040ez form 2013 instructions   Send your application for exempt status and Form 8718, (if required) to: Internal Revenue Service PO Box 12192 Covington, KY 41012-0192   Your application will be considered by EO Determinations, who will either issue a favorable determination letter to your organization, issue an adverse determination letter denying the exempt status claimed in the application, or refer the case to the Exempt Organizations Technical Office (EO Technical). 1040ez form 2013 instructions    Form 8940, Request for Miscellaneous Determination. 1040ez form 2013 instructions You can request miscellaneous determinations under sections 507, 509(a), 4940, 4942, 4945, and 6033 with Form 8940. 1040ez form 2013 instructions Nonexempt charitable trusts also file Form 8940 for an initial determination of section 509(a)(3) status or change to their type. 1040ez form 2013 instructions See Form 8940 and instructions for more information. 1040ez form 2013 instructions Requests other than applications. 1040ez form 2013 instructions Requests other than applications for recognition of exemption or Form 8940 (for example, requests for rulings involving feeder organizations, application of excise taxes to activities of private foundations, taxation of unrelated business income, etc. 1040ez form 2013 instructions ) should be sent to: Internal Revenue Service  Attention: EO Letter Rulings PO Box 27720 McPherson Station Washington, DC 20038 These requests, similar to applications for recognition of exemption previously discussed, must be accompanied by the appropriate user fee. 1040ez form 2013 instructions The schedule for user fees, including those for requests other than applications, can be found in Revenue Procedure 2013-8, 2013-1 I. 1040ez form 2013 instructions R. 1040ez form 2013 instructions B. 1040ez form 2013 instructions 237. 1040ez form 2013 instructions Referral to EO Technical. 1040ez form 2013 instructions   EO Determinations will refer to EO Technical any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. 1040ez form 2013 instructions EO Determinations can request technical advice on any technical or procedural question that cannot be resolved on the basis of law, regulations, or a clearly applicable revenue ruling or other published precedent. 1040ez form 2013 instructions An organization can request that an issue be referred to EO Technical for technical advice if it feels that a lack of uniformity exists as to the disposition of the issue or if an issue is so unusual or complex as to warrant consideration by EO Technical. 1040ez form 2013 instructions If a determination letter is issued based on technical advice from EO Technical regarding qualification for exemption or foundation status, no further administrative appeal is available on the issue that was the subject of technical advice. 1040ez form 2013 instructions Reminder. 1040ez form 2013 instructions   The law requires payment of a user fee for determination letter requests. 1040ez form 2013 instructions Go to IRS. 1040ez form 2013 instructions gov/Charities and select Current User Fees-Exempt Organizations to find the required payment. 1040ez form 2013 instructions Payment must accompany each request. 1040ez form 2013 instructions Rulings and Determination Letters Elimination of the advance public charity status. 1040ez form 2013 instructions   New regulations eliminate the advance ruling process for a section 501(c)(3) organization. 1040ez form 2013 instructions Under the new regulations, a new section 501(c)(3) organization will be classified as a publicly supported organization and not a private foundation if it can show when it applies for tax-exempt status that it reasonably can be expected to be publicly supported. 1040ez form 2013 instructions The new rules no longer require the organization to file Form 8734, Support Schedule for Advance Ruling Period, after completing its first 5 tax years. 1040ez form 2013 instructions See Elimination of the Advance Ruling Process . 1040ez form 2013 instructions An organization must describe fully the activities in which it expects to engage. 1040ez form 2013 instructions This includes standards, procedures, or other means adopted or planned by the organization for carrying out its activities, expected sources of funds, and the nature of its contemplated expenses. 1040ez form 2013 instructions When an organization does not supply the information previously mentioned under Application Procedures , or fails to furnish a sufficiently detailed description of its proposed activities to permit a conclusion that it will clearly be exempt, a proposed adverse determination letter or ruling may be issued. 1040ez form 2013 instructions Adverse determination. 1040ez form 2013 instructions   A proposed adverse ruling or determination letter will be issued to an organization that has not provided sufficiently detailed information to establish that it qualifies for exemption or if the information provided establishes that it does not qualify for exemption. 1040ez form 2013 instructions An organization can appeal a proposed adverse ruling or determination letter. 1040ez form 2013 instructions See Appeal Procedures , later. 1040ez form 2013 instructions Effective Date of Exemption A ruling or determination letter recognizing exemption is usually effective as of the date of formation of an organization if, during the period before the date of the ruling or determination letter, its purposes and activities were those required by the law. 1040ez form 2013 instructions (See Application for Recognition of Exemption in chapter 3 for the special rule for organizations applying for recognition of exemption under section 501(c)(3). 1040ez form 2013 instructions ) Upon obtaining recognition of exemption, the organization can file a claim for a refund of income taxes paid for the period for which its exempt status is recognized. 1040ez form 2013 instructions If an organization is required to alter its activities or substantially amend its charter to qualify, the ruling or determination letter recognizing exemption will be effective as of the date specified in the letter. 1040ez form 2013 instructions If a nonsubstantive amendment is made, such as correction of a clerical error in the enabling instrument or the addition of a dissolution clause, exemption will ordinarily be recognized as of the date of formation if the activities of the organization before the ruling or determination are consistent with the exemption requirements. 1040ez form 2013 instructions A ruling or determination letter recognizing exemption cannot be relied on if there is a material change, inconsistent with exemption, in the character, the purpose, or the method of operation of the organization. 1040ez form 2013 instructions Also, a ruling or determination letter cannot be relied on if it is based on any inaccurate material factual representations. 1040ez form 2013 instructions Revocation or Modification of Exemption A ruling or determination letter recognizing exemption may be revoked or modified by: A notice to the organization to which the ruling or determination letter originally was issued, Enactment of legislation or ratification of a tax treaty, A decision of the United States Supreme Court, Issuance of temporary or final regulations, or Issuance of a revenue ruling, a revenue procedure, or other statement published in the Internal Revenue Bulletin or Cumulative Bulletin. 1040ez form 2013 instructions When revocation takes effect. 1040ez form 2013 instructions   If the organization omitted or misstated a material fact, operated in a manner materially different from that originally represented, or, with regard to organizations to which section 503 applies, engaged in a prohibited transaction (such as diverting corpus or income from its exempt purpose), the revocation or modification may be retroactive. 1040ez form 2013 instructions Material change in organization. 1040ez form 2013 instructions   If there is a material change, inconsistent with exemption, in the character, purpose, or method of operation of the organization, revocation or modification will ordinarily take effect as of the date of that material change. 1040ez form 2013 instructions Relief from retroactivity. 1040ez form 2013 instructions   If a ruling or determination letter was issued in error or the IRS changed its position after issuing a letter or ruling, and if section 7805(b) relief is granted, retroactivity of the revocation or modification ordinarily will be limited to a date not earlier than that on which the original ruling or determination letter was modified or revoked. 1040ez form 2013 instructions For more information on requesting section 7805(b) relief, see Revenue Procedure 2013-4, 2013-1 I. 1040ez form 2013 instructions R. 1040ez form 2013 instructions B. 1040ez form 2013 instructions 126, sec. 1040ez form 2013 instructions 13 (or later update). 1040ez form 2013 instructions Foundations. 1040ez form 2013 instructions   The determination of the effective date is the same for the revocation or modification of foundation status or operating foundation status unless the effective date is expressly covered by statute or regulations. 1040ez form 2013 instructions Written notice. 1040ez form 2013 instructions   If an EO area manager concludes, as a result of examining an information return or considering information from any other source, that a ruling or determination letter should be revoked or modified, the organization will be advised in writing of the proposed action and the reasons for it. 1040ez form 2013 instructions   The organization will also be advised of its right to protest the proposed action by requesting Appeals Office consideration. 1040ez form 2013 instructions The appeal procedures are discussed next. 1040ez form 2013 instructions Appeal Procedures If your organization applies for tax-exempt status and EO Determination decides your organization does not qualify, your organization will be advised of its rights to protest the determination by requesting Appeals Office consideration. 1040ez form 2013 instructions This process does not apply to determinations issued by EO Technical. 1040ez form 2013 instructions Your organization must submit a statement of its views fully explaining its reasoning. 1040ez form 2013 instructions The statement must be submitted within 30 days from the date of the adverse determination letter and must state whether it wishes Appeals Office consideration. 1040ez form 2013 instructions Representation. 1040ez form 2013 instructions   A principal officer or trustee can represent an organization at any level of appeal within the IRS. 1040ez form 2013 instructions Also, an attorney, certified public accountant, or individual enrolled to practice before the IRS can represent the organization. 1040ez form 2013 instructions   If the organization's representative attends a conference without a principal officer or trustee, the representative must file a proper power of attorney or a tax information authorization before receiving or inspecting confidential information. 1040ez form 2013 instructions Form 2848 or Form 8821, Tax Information Authorization, as appropriate (or any other properly written power of attorney or authorization), can be used for this purpose. 1040ez form 2013 instructions These forms can be obtained from the IRS. 1040ez form 2013 instructions For more information, see Publication 947, Practice Before the IRS and Power of Attorney. 1040ez form 2013 instructions Appeals Office Consideration EO Determinations will consider the statement protesting and appealing (hereinafter appealing) the adverse determination and decide if the information affects its determination. 1040ez form 2013 instructions If the appeal does not provide a basis to reconsider its adverse determination, it will forward the appeal and case file to the Appeals Office. 1040ez form 2013 instructions For more information about the role of the Appeals Office, see Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues. 1040ez form 2013 instructions The appeal should include the following information. 1040ez form 2013 instructions The organization's name, address, daytime telephone number, and employer identification number. 1040ez form 2013 instructions A statement that the organization wants to protest the determination. 1040ez form 2013 instructions A copy of the letter showing the determination you disagree with, or the date and symbols on the determination letter. 1040ez form 2013 instructions A statement of facts supporting the organization's position in any contested factual issue. 1040ez form 2013 instructions A statement outlining the law or other authority the organization is relying on. 1040ez form 2013 instructions A statement as to whether a conference at the Appeals Office is desired. 1040ez form 2013 instructions The statement of facts in item 4 must be declared true under penalties of perjury. 1040ez form 2013 instructions This may be done by adding to the protest the following signed declaration:   “Under penalties of perjury, I declare that I have examined the statement of facts presented in this protest and in any accompanying schedules and statements and, to the best of my knowledge and belief, it is true, correct, and complete. 1040ez form 2013 instructions ”           Signature. 1040ez form 2013 instructions   If the organization's representative submits the appeal, a substitute declaration must be included, stating: That the representative prepared the appeal and accompanying documents, and Whether the representative knows personally that the statements of fact contained in the appeal and accompanying documents are true and correct. 1040ez form 2013 instructions Be sure the appeal contains all of the information requested. 1040ez form 2013 instructions Incomplete appeals will be returned for completion. 1040ez form 2013 instructions If a conference is requested, it will be held at the Appeals Office, unless the organization requests that the meeting be held at a field office convenient to both parties. 1040ez form 2013 instructions The Appeals Office, after considering the organization's appeal as well as information presented in any conference held, will notify the organization of its decision and issue an appropriate determination letter. 1040ez form 2013 instructions An adverse decision can be appealed to the courts (discussed later). 1040ez form 2013 instructions The Appeals Office must request technical advice from EO Technical on any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. 1040ez form 2013 instructions If an organization believes that its case involves such an issue, it should ask the Appeals Office to request technical advice. 1040ez form 2013 instructions Any determination letter issued on the basis of technical advice from EO Technical cannot be appealed to the Appeals Office for those issues that were the subject of the technical advice from EO Technical. 1040ez form 2013 instructions EO Technical Consideration If an application is referred to EO Technical for issuance of a ruling and an adverse ruling is issued, the organization will be informed of the basis for the conclusion, its right to file a protest within 30 days, and its right to have a conference with EO Technical. 1040ez form 2013 instructions Administrative Remedies In the case of an application under section 501(c)(3), all of the following actions, called administrative remedies, must be completed by your organization before an unfavorable ruling or determination letter from the IRS can be appealed to the courts. 1040ez form 2013 instructions The filing of a substantially completed application Form 1023 or group exemption request under section 501(c)(3) (described earlier in this chapter) or the filing of a request for a determination of foundation status (see Private Foundations and Public Charities in chapter 3). 1040ez form 2013 instructions In the case of a late-filed application, requesting relief under Regulations section 301. 1040ez form 2013 instructions 9100 regarding applications for extensions of time for making an election or application for relief from tax (see Application for Recognition of Exemption in chapter 3). 1040ez form 2013 instructions The timely submission of all additional information requested to perfect an exemption application or request for determination of private foundation status. 1040ez form 2013 instructions Exhaustion of all administrative appeals available within the IRS, including protest of an adverse ruling issued by EO Technical in the case of an exemption application. 1040ez form 2013 instructions The actions just described will not be considered completed until the IRS has had a reasonable time to act upon the appeal or protest, as the case may be. 1040ez form 2013 instructions An organization will not be considered to have exhausted its administrative remedies before the earlier of: The completion of the steps just listed and the sending by certified or registered mail of a notice of final determination, or The expiration of the 270-day period in which the IRS has not issued a notice of final determination and the organization has taken, in a timely manner, all reasonable steps to secure a ruling or determination. 1040ez form 2013 instructions 270-day period. 1040ez form 2013 instructions   The 270-day period will be considered by the IRS to begin on the date a substantially completed Form 1023 or group exemption request is sent to the IRS. 1040ez form 2013 instructions See Application Procedures , earlier, for information needed to complete Form 1023. 1040ez form 2013 instructions   If the application does not contain all of the required items, it will not be further processed and may be returned to the applicant for completion. 1040ez form 2013 instructions The 270-day period, in this event, will not be considered as starting until the date the application is remailed to the IRS with the requested information, or, if a postmark is not evident, on the date the IRS receives a substantially completed application. 1040ez form 2013 instructions Appeal to Courts If the IRS issues an unfavorable determination letter or ruling to your organization and you have exhausted all the administrative remedies just discussed, your organization can seek judicial remedies. 1040ez form 2013 instructions For example, if your organization has paid the tax resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a refund in a U. 1040ez form 2013 instructions S. 1040ez form 2013 instructions District Court or the U. 1040ez form 2013 instructions S. 1040ez form 2013 instructions Court of Federal Claims. 1040ez form 2013 instructions Or, if your organization elected not to pay the tax deficiency resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a redetermination of the tax deficiencies in the United States Tax Court. 1040ez form 2013 instructions For more information on these types of suits, get Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund. 1040ez form 2013 instructions In certain situations, your organization can file suit for a declaratory judgment in the U. 1040ez form 2013 instructions S. 1040ez form 2013 instructions District Court for the District of Columbia, the U. 1040ez form 2013 instructions S. 1040ez form 2013 instructions Court of Federal Claims, or the U. 1040ez form 2013 instructions S. 1040ez form 2013 instructions Tax Court. 1040ez form 2013 instructions This remedy is available if your organization received an adverse notice of final determination, or if the IRS failed to make a timely determination on your initial or continuing qualification or classification as an exempt organization. 1040ez form 2013 instructions However, your exempt status claim must be as: An organization qualifying under section 501(c)(3), An organization to which a deduction for a contribution is allowed under section 170(c)(2), An organization that is a private foundation under section 509(a), A private operating foundation under section 4942(j)(3), or A cooperative organization that is exempt from tax under section 521. 1040ez form 2013 instructions Adverse notice of final determination. 1040ez form 2013 instructions   The adverse notice of final determination referred to above is a ruling or determination letter sent by certified or registered mail holding that your organization: Is not described in section 501(c)(3) or section 170(c)(2), Is a private foundation as defined in section 4942(j)(3), or Is a public charity described in a part of section 509(a) or section 170(b)(1)(A) other than the part under which your organization requested classification. 1040ez form 2013 instructions Favorable court rulings - IRS procedure. 1040ez form 2013 instructions   If a suit results in a final determination that your organization is exempt from tax, the IRS will issue a favorable ruling or determination letter, provided your organization has filed an application for exemption and submitted a statement that the underlying facts and applicable law are the same as in the period considered by the court. 1040ez form 2013 instructions Group Exemption Letter A group exemption letter is a ruling or determination letter issued to a central organization recognizing on a group basis the exemption under section 501(c) of subordinate organizations on whose behalf the central organization has applied for recognition of exemption. 1040ez form 2013 instructions A central organization is an organization that has one or more subordinates under its general supervision or control. 1040ez form 2013 instructions A subordinate organization is a chapter, local, post, or unit of a central organization. 1040ez form 2013 instructions A central organization may be a subordinate itself, such as a state organization that has subordinate units and is itself affiliated with a national (central) organization. 1040ez form 2013 instructions A subordinate organization may or may not be incorporated, but it must have an organizing document. 1040ez form 2013 instructions A subordinate that is organized and operated in a foreign country cannot be included in a group exemption letter. 1040ez form 2013 instructions A subordinate described in section 501(c)(3) cannot be included in a group exemption letter if it is a private foundation described in section 509(a). 1040ez form 2013 instructions If your organization is a subordinate controlled by a central organization (for example, a church, a veterans' organization, or a fraternal organization), you should check with the central organization to see if it has been issued a group exemption letter that covers your organization. 1040ez form 2013 instructions If it has, you do not have to file a separate application unless your organization no longer wants to be included in the group exemption letter. 1040ez form 2013 instructions If the group exemption letter does not cover your organization, ask your central organization about being included in the next annual group ruling update that it submits to the IRS. 1040ez form 2013 instructions Central Organization Application Procedure If your organization is a central organization with affiliated subordinates under its control, it can apply for a group exemption letter for its subordinates, provided it has obtained recognition of its own exemption before or concurrently with the group exemption. 1040ez form 2013 instructions You should make the application for such subordinates by letter instead of submitting either Form 1023 or 1024. 1040ez form 2013 instructions This procedure relieves each of the subordinates covered by a group exemption letter from filing its own application. 1040ez form 2013 instructions A central organization obtains its own recognition of exemption by sending its application to the IRS address shown on Form 8718 or Form 1023. 1040ez form 2013 instructions If the central organization has previously obtained recognition of its own exemption, it must indicate its employer identification number and the date of the letter recognizing its exemption. 1040ez form 2013 instructions It need not forward documents already submitted. 1040ez form 2013 instructions However, if it has not already done so, the central organization must submit a copy of any amendment to its governing instruments or internal regulations as well as any information about changes in its character, purposes, or method of operation. 1040ez form 2013 instructions Employer identification number. 1040ez form 2013 instructions   The central organization must have an EIN before it submits a completed exemption or group exemption application. 1040ez form 2013 instructions Each subordinate must have its own EIN, even if it has no employees. 1040ez form 2013 instructions When submitting its group exemption application, the central organization must provide an EIN for each subordinate organization. 1040ez form 2013 instructions Information required for subordinate organizations. 1040ez form 2013 instructions   In addition to the information required to obtain recognition of its own exemption, the central organization must submit information for those subordinates to be included in the group exemption letter. 1040ez form 2013 instructions The information should be forwarded in a letter signed by a principal officer of the central organization setting forth or including as attachments the following. 1040ez form 2013 instructions Information verifying that the subordinates: Are affiliated with the central organization at the close of its annual accounting period; Are subject to its general supervision or control; Are all eligible to qualify for exemption under the same paragraph of section 501(c), though not necessarily the paragraph under which the central organization itself is exempt; Are not private foundations if the application for a group exemption letter involves section 501(c)(3); Are all on the same accounting period as the central organization if they are to be included in group returns; and Are organizations that have been formed within the 15-month period preceding the date of submission of the group exemption application if they are claiming section 501(c)(3) status and are subject to the requirements of section 508(a) and wish to be recognized as exempt from their dates of creation (a group exemption letter may be issued covering subordinates, one or more of which have not been organized within the 15-month period preceding the date of submission, if all subordinates are willing to be recognized as exempt only from the date of application). 1040ez form 2013 instructions A detailed description of the purposes and activities of the subordinates, including the sources of receipts and the nature of expenditures. 1040ez form 2013 instructions A sample copy of a uniform governing instrument (such as a charter or articles of association) adopted by the subordinates, or, in its absence, copies of representative instruments. 1040ez form 2013 instructions An affirmation to the effect that, to the best of the officer's knowledge, the purposes and activities of the subordinates are as stated in (2) and (3), above. 1040ez form 2013 instructions A statement that each of the subordinates has provided a written authorization to the central organization, signed by an authorized officer of the subordinate, agreeing to be included in the group exemption (see also New 501(c)(3) organizations that want to be included , later in this section). 1040ez form 2013 instructions A list of subordinates to be included in the group exemption letter to which the IRS has issued an outstanding ruling or determination letter relating to exemption. 1040ez form 2013 instructions If the application for a group exemption letter involves section 501(c)(3) and is subject to the provisions of the Code requiring that it give timely notice that it is not a private foundation (see Private Foundations in chapter 3), an affirmation to the effect that, to the best of the officer's knowledge and belief, no subordinate to be included in the group exemption letter is a private foundation as defined in section 509(a). 1040ez form 2013 instructions For each subordinate that is a school claiming exemption under section 501(c)(3), the information required by Revenue Ruling 71-447, 1971-2 C. 1040ez form 2013 instructions B. 1040ez form 2013 instructions 230 and Revenue Procedure 75-50, 1975-2 C. 1040ez form 2013 instructions B. 1040ez form 2013 instructions 587 (these requirements are fully described in chapter 3, under Private Schools ; see also Schedule B, Form 1023). 1040ez form 2013 instructions For any school affiliated with a church, the information to show that the provisions of Revenue Ruling 75-231, 1975-1 C. 1040ez form 2013 instructions B. 1040ez form 2013 instructions 158, have been met. 1040ez form 2013 instructions A list of the names, mailing addresses, actual addresses if different, and EINs of subordinates to be included in the group exemption letter. 1040ez form 2013 instructions A current directory of subordinates may be furnished instead of the list if it includes the required information and if the subordinates not to be included in the group exemption letter are identified. 1040ez form 2013 instructions New 501(c)(3) organizations that want to be included. 1040ez form 2013 instructions   A new organization, described in section 501(c)(3), that wants to be included in a group exemption letter must submit its authorization (as explained in item number 5, earlier, under Information required for subordinate organizations ) to the central organization before the end of the 15th month after it was formed in order to satisfy the requirement of section 508(a). 1040ez form 2013 instructions The central organization must also include this subordinate in its next annual submission of information, as discussed later, under Information Required Annually . 1040ez form 2013 instructions Keeping the Group Exemption Letter in Force Continued effectiveness of a group exemption letter is based on the following conditions. 1040ez form 2013 instructions The continued existence of the central organization. 1040ez form 2013 instructions The continued qualification of the central organization for exemption under section 501(c). 1040ez form 2013 instructions The submission by the central organization of the information regarding its subordinate organizations that is required annually (described under Information Required Annually). 1040ez form 2013 instructions The annual filing of an information return (Form 990, for example) by the central organization if required. 1040ez form 2013 instructions The continued effectiveness of a group exemption letter as to a particular subordinate is based on these four conditions, as well as on the continued conformity by the subordinate to the requirements for inclusion in a group exemption letter, the authorization for inclusion, and the annual filing of any required information return for the subordinate. 1040ez form 2013 instructions Information Required Annually To maintain a group exemption letter, the central organization must submit annually, at least 90 days before the close of its annual accounting period, all of the following information. 1040ez form 2013 instructions Information about all changes in the purposes, character, or method of operation of the subordinates included in the group exemption letter. 1040ez form 2013 instructions A separate list (that includes the names, mailing addresses, actual addresses if different, and EINs of the affected subordinates) for each of the three following categories. 1040ez form 2013 instructions Subordinates that have changed their names or addresses during the year. 1040ez form 2013 instructions Subordinates no longer to be included in the group exemption letter because they no longer exist or have disaffiliated from or withdrawn their authorization to the central organization. 1040ez form 2013 instructions Subordinates to be added to the group exemption letter because they are newly organized or affiliated or because they have recently authorized the central organization to include them. 1040ez form 2013 instructions An annotated directory of subordinates will not be accepted for this purpose. 1040ez form 2013 instructions If there were none of the above changes, the central organization must submit a statement to that effect. 1040ez form 2013 instructions The same information about new subordinates that was required in the initial application for group exemption. 1040ez form 2013 instructions (This information is listed in items 1 through 10, under Information required for subordinate organizations. 1040ez form 2013 instructions , earlier. 1040ez form 2013 instructions ) If a new subordinate does not differ in any material respects from the subordinates included in the application for group exemption, however, a statement to this effect may be submitted in lieu of detailed information. 1040ez form 2013 instructions The organization should send this information to:   Ogden Service Center  Mail Stop 6271 Ogden, UT 84404-4749 Submitting the required information annually does not relieve the central organization or any of its subordinates of the duty to submit any other information that may be required by an EO area manager to determine whether the conditions for continued exemption are being met. 1040ez form 2013 instructions Events Causing Loss of Group Exemption A group exemption letter no longer has effect, for either a particular subordinate or the group as a whole, when: The central organization notifies the IRS that it is going out of existence, The central organization notifies the IRS, by its annual submission or otherwise, that any of its subordinates will no longer fulfill the conditions for continued effectiveness, explained earlier, or The IRS notifies the central organization or the affected subordinate that the group exemption letter will no longer have effect for some or all of the group because the conditions for continued effectiveness of a group exemption letter have not been fulfilled. 1040ez form 2013 instructions When notice is given under any of these three conditions, the IRS will no longer recognize the exempt status of the affected subordinates until they file separate applications on their own behalf or the central organization files complete supporting information for their reinclusion in the group exemption at the time of its annual submission. 1040ez form 2013 instructions However, when the notice is given by the IRS and the withdrawal of recognition is based on the failure of the organization to comply with the requirements for recognition of tax-exempt status under the particular subsection of section 501(c), the revocation will ordinarily take effect as of the date of that failure. 1040ez form 2013 instructions The notice, however, will be given only after the appeal procedures described earlier in this chapter are completed. 1040ez form 2013 instructions Prev  Up  Next   Home   More Online Publications
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2014 Tax Season Refund Frequently Asked Questions

How quickly will I get my refund?
We issue most refunds in less than 21 calendar days.

What is the best and fastest way to get information about my refund?
Use the IRS2Go mobile app or the Where’s My Refund? tool. You can start checking on the status of your tax return within 24 hours after we have received your e-filed return or 4 weeks after you mail a paper return.

Will I see a date for my refund right away?
Where’s My Refund? will not give you a refund date right away. We must first receive your tax return and then we have to process it and approve your refund. Where’s My Refund? will give you a personalized date once your refund is approved. 

Will calling the IRS help me get my refund any faster?
Calling us will not speed up your refund. Our phone and walk-in representatives can only research the status of your refund if it has been 21 days or more since you filed electronically, more than 6 weeks since you mailed your paper return, or Where’s My Refund? directs you to contact us. If we need more information to process your tax return, we will contact you by mail. Otherwise Where’s My Refund? has the most up to date information available about your refund. Use the IRS2Go mobile app or use the Where’s My Refund? tool. Both are available 24 hours a day, 7 days a week.

How will I know if IRS received my tax return and if my refund is being processed?
Use the Where’s My Refund? tool to follow your tax return from receipt to issuance of your refund. While your tax return is being processed you can follow it through three stages: Return Received, Refund Approved and Refund Sent.

When can I start checking on my refund status?
You can start checking on the status of your return within 24 hours after we have received your electronically filed tax return or 4 weeks after you mail a paper tax return.

How often does Where’s My Refund? update?
Where’s My Refund? updates are made no more than once per day, usually at night. So there is no need to check more often.

What is happening when Where’s My Refund? shows the status of my refund is: Return Received?
This means we have your tax return and are processing it. Your personalized refund date will be available as soon as we finish processing your return and confirm that your refund has been approved. We issue most refunds  in less than 21 days.

How long will it take for my status to change from “Return Received” to Refund Approved?
Sometimes your status may change from “Return Received” to “Refund Approved” in just a few days, but it could take longer and a date will not be provided until your refund has been approved. However, if Where’s My Refund? shows the status of your refund is: Return Received we have received your tax return and we are processing it.

Does Where’s My Refund always display my refund status with the tracker showing three steps?  
No. In some cases the tracker graphic will not be shown if your return is being reviewed prior to step two: “Refund Approved,” and instead an explanation or instructions will be provided depending on the situation. This can happen even if you previously checked Where’s My Refund and it showed the status as “Return Received” along with the tracker. In these cases be assured that we have your tax return and we are processing it. Please follow the directions provided by Where’s My Refund. Otherwise if we need more information we will contact you – usually by mail. If we send you a letter about your return, please follow the instructions in the letter as soon as possible.

Will ordering a transcript help you determine when you’ll get your refund?
No, a tax transcript will not help you determine when you will get your refund. This is among the common myths and misconceptions that are often repeated in social media. The codes listed on tax transcripts do not provide any early insight into when a refund will be issued. The best way to check on your refund is by visiting “Where’s My Refund?” While transcripts include a lot of detailed information regarding actions taken on your account, the codes do not mean the same thing for everyone and they do not necessarily reflect how any of these actions do or do not impact the amount or timing of your refund. IRS transcripts are best and most often used to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation.

What is happening when Where’s My Refund? shows the status of my refund is:  Refund Approved?
This means the IRS has processed your return and your refund has been approved. The IRS is now preparing to send your refund to your bank or directly to you in the mail if you requested a paper check. This status will tell you when your refund is scheduled to be sent to your bank and, if you elected the direct deposit option, a date by which it should be credited to your account. Please wait until it’s been five days from the date we sent the refund to your bank to check with your bank about the status of your refund. This time frame is provided to allow for the variations in how and when banks deposit funds.

What is happening when Where’s My Refund? shows the status of my tax return is:  Refund Sent?
This means the IRS has sent your refund to your financial institution for direct deposit. This status will tell you when your refund was sent to your bank. It may take your financial institution 1 – 5 days to deposit the funds into your account. Please wait until it’s been five days from the date we sent the refund to your bank to check with your bank about the status of your refund.  This time frame is provided to allow for the variations in how and when banks deposit funds. If you requested a paper check this means your check has been mailed. It could take several weeks for your check to arrive in the mail.

Why is my refund different than the amount reflected on the tax return I filed?
If you owe past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain federal nontax debts, such as student loans, all or part of your refund may be used (offset) to pay the past-due amount. Offsets for federal taxes are made by the IRS. All other offsets are made by the Treasury Department's Bureau of Fiscal Services (BFS) (Formerly the Financial Management Service or FMS). For federal tax offsets, you will receive a notice from the IRS. For all other offsets, you will receive a notice from BFS. To find out if you may have an offset or if you have any questions about it, contact the agency to which you owe the debt. See Tax Topic 203 for more information about refund offsets.

Another reason your refund amount may be different is if we made changes to your tax return that changed your refund amount. In this case you will get a notice in the mail from us explaining the changes. These reasons will be reflected in Where’s My Refund if they apply to your refund.

What if I am counting on my refund for something important? Can I expect to receive it on time? 
Be careful not to count on getting your refund by a certain date to make major purchases or pay other financial obligations. Many different factors can affect the timing of your refund after we receive it for processing. Even though we issue most refunds in less than 21 days, it’s possible your tax return may require additional review and take longer. Also, if you are anticipating a refund, take into consideration the time it takes for your financial institution to post the refund to your account, or for mail delivery.

It's been longer than 21 days since the IRS received my return and I have not gotten my refund. Why?
We work hard to issue refunds as quickly as possible, but some tax returns take longer to process than others for many reasons, including when a return:

  • includes errors,
  • is incomplete,
  • needs further review,
  • is impacted by identity theft or fraud,
  • includes Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process.

If we need more information to process your tax return, we will contact you by mail.

IRS representatives can only research the status of your return if it’s been 21 days or more since you filed electronically, more than six weeks since you mailed your paper return, or if Where’s My Refund? directs you to contact us. Our general telephone number is 1-800-829-1040. However, given our limited resources, our phone lines are going to be extremely busy this year – and there will frequently be extensive wait times.

Will Where’s My Refund? provide a refund status if I filed an amended return?
No, it does not provide information about amended tax returns. However you can check the status of your Form 1040X (PDF), Amended U.S. Individual Income Tax Return, using the “Where's My Amended Return?” (WMAR) online tool and the new toll-free telephone line 866-464-2050 three weeks after you file your amended return. WMAR provides personalized, automated, and the most up-to-date information on the status of amended returns in both English and Spanish. You can check the status of a Form 1040X filed for the current year and up to three years prior.

 

Page Last Reviewed or Updated: 19-Mar-2014

The 1040ez Form 2013 Instructions

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