File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

2011 State Tax Form

Tax For MilitaryCan I Still File 2011 Taxes OnlineVita Tax PreparationFree Taxes1040ez Form DownloadForm 1040How To File An Ammended Tax ReturnAmend ReturnFree Ohio Tax Form 1040ezTaxact For 2011Www Mifastfile OrgFree Military TaxesIrs Gov Form 1040nr1040 Ez 2010 FormWww.1040xCan I Do My 2012 Taxes NowHrblock At HomeFree 1040ez Filing OnlineCan I Amend My 2007 Tax ReturnWww Dfas MilFiling Form 1040x ElectronicallyI Need Prior Year 1040ez Form 2010 I Caot Access Anywhere AnyoneFreetaxusa20122012 Free Taxes Online2006 Tax Software Free DownloadUnemployed Tax CreditFiling An Amended Tax Return For 2012H&r Block 2011 Tax Software2010 Online Tax FilingFiling Amended ReturnAmending Federal Tax Return2009 State Tax FormsFree Online Tax Filing For 20122011 Tax TablesHow To File An Amended 2011 Tax ReturnFree Tax Filing For College Students1040nr 2013Can You E File 2012 Taxes NowFree State Return Filing1040ez Mailing Address

2011 State Tax Form

2011 state tax form Index A Accounting method Accrual, Accrual Method, Accrual method. 2011 state tax form Automatic procedures, Automatic change procedures. 2011 state tax form Cash, Cash Method, Cash method. 2011 state tax form Change in, Change in Accounting Method Combination, Combination Method Special, Special Methods Accounting periods, Accounting Periods Accrual method Income - general rule, Income—General Rule Income - special rules, Income—Special Rules Of accounting, Accrual Method Adjusted basis, Adjusted basis. 2011 state tax form Administrator, Executor or administrator. 2011 state tax form Alternative fuel vehicle refueling property credit, Alternative fuel vehicle refueling property credit (Form 8911). 2011 state tax form Alternative motor vehicle credit, Alternative motor vehicle credit (Form 8910). 2011 state tax form Appeal rights, Appeals. 2011 state tax form Appreciation, Appreciation. 2011 state tax form Audits, Examinations (audits). 2011 state tax form Automobile (see Car expenses) B Bad debts, Bad Debts Barter income, Bartering for Property or Services Basis of property, Basis. 2011 state tax form Bribes, Expenses You Cannot Deduct Business expenses, Business Expenses Business income, Business Income Business use of your home, Business Use of Your Home C Canceled debt, Canceled Debt Cancellation of qualified real property business debt, Cancellation of qualified real property business debt. 2011 state tax form Capital gain or loss, Is My Gain or Loss Ordinary or Capital? Car expenses, Car and Truck Expenses, Methods for Deducting Car and Truck Expenses Carbon dioxide sequestration credit, Carbon dioxide sequestration credit (Form 8933). 2011 state tax form Cash discount, Cash discounts. 2011 state tax form , Cash discounts. 2011 state tax form Cash method Expenses, Expenses Income, Income Changing accounting method, Changing accounting method. 2011 state tax form Charitable contributions, Expenses You Cannot Deduct Child employed by parent, Child employed by parent. 2011 state tax form Claim for refund, Refunds. 2011 state tax form Collection of tax, Collections. 2011 state tax form Combination method of accounting, Combination Method Comments on publication, Comments and suggestions. 2011 state tax form Condemned property, Condemned property. 2011 state tax form Consignments, Consignments. 2011 state tax form Construction allowances, Construction allowances. 2011 state tax form Cost of goods sold, How To Figure Cost of Goods Sold Credit Alternative fuel vehicle refueling property, Alternative fuel vehicle refueling property credit (Form 8911). 2011 state tax form Alternative motor vehicle, Alternative motor vehicle credit (Form 8910). 2011 state tax form Carbon dioxide sequestration, Carbon dioxide sequestration credit (Form 8933). 2011 state tax form Disabled access, Disabled access credit (Form 8826). 2011 state tax form Distilled spirits, Distilled spirits credit (Form 8906). 2011 state tax form Employer-provided childcare, Credit for employer-provided childcare facilities and services (Form 8882). 2011 state tax form How to claim, How To Claim the Credit Indian coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 state tax form Investment, Investment credit (Form 3468). 2011 state tax form Low sulfur diesel fuel production, Low sulfur diesel fuel production credit (Form 8896). 2011 state tax form Low-income housing, Low-income housing credit (Form 8586). 2011 state tax form New markets, New markets credit (Form 8874). 2011 state tax form Nonconventional source fuel, Nonconventional source fuel credit (Form 8907). 2011 state tax form Orphan drug, Orphan drug credit (Form 8820). 2011 state tax form Qualified plug-in electric drive motor vehicle, Qualified plug-in electric drive motor vehicle credit (Form 8936). 2011 state tax form Refined coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 state tax form Renewable electricity, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 state tax form Small employer health insurance premiums, Credit for small employer health insurance premiums (Form 8941). 2011 state tax form Small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881). 2011 state tax form Taxes paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 2011 state tax form Work opportunity, Work opportunity credit (Form 5884). 2011 state tax form D Damages, Damages. 2011 state tax form Debt Bad, Bad Debts Canceled, Canceled Debt Qualified real property business, Qualified real property business debt. 2011 state tax form Refund offset against, Offset against debts. 2011 state tax form Definitions Accounting methods, Accounting Methods Accounting periods, Accounting Periods Barter, Bartering for Property or Services Basis, Basis. 2011 state tax form Business bad debt, Business bad debt. 2011 state tax form Calendar tax year, Calendar tax year. 2011 state tax form Cash discount, Cash discounts. 2011 state tax form , Cash discounts. 2011 state tax form Disposition of property, What Is a Disposition of Property? Drawing account, Merchandise withdrawn from sale. 2011 state tax form Entertainment expenses, Entertainment expenses. 2011 state tax form Fair market value, Fair market value. 2011 state tax form Fiscal tax year, Fiscal tax year. 2011 state tax form Fringe benefit, Fringe benefits. 2011 state tax form Local transportation expenses, Local transportation expenses. 2011 state tax form Necessary expense, Introduction Net operating loss, Net Operating Losses (NOLs) Nonbusiness bad debt, Nonbusiness bad debts. 2011 state tax form Ordinary expense, Introduction Principal place of business, Principal place of business. 2011 state tax form Qualified long-term real property, Qualified long-term real property. 2011 state tax form Qualified real property business debt, Cancellation of qualified real property business debt. 2011 state tax form Rent, Rent Expense Restricted property, Other Income Retail space, Retail space. 2011 state tax form Self-employment (SE) tax, Self-Employment (SE) Tax Sole proprietor, Sole proprietor. 2011 state tax form Tax home, Local transportation expenses. 2011 state tax form Trade discount, Trade discounts. 2011 state tax form , Cash discounts. 2011 state tax form Travel expenses, Travel, Meals, and Entertainment Depreciation Deduction, Depreciation Listed property, Listed property. 2011 state tax form Depreciation, recapture, Recapture of depreciation. 2011 state tax form Direct seller, Direct seller. 2011 state tax form , Real estate agent or direct seller. 2011 state tax form Disabled access credit, Disabled access credit (Form 8826). 2011 state tax form Disposition of property Business property, Introduction Installment sale, Installment sales. 2011 state tax form , Installment sales. 2011 state tax form Like-kind exchange, Like-kind exchanges. 2011 state tax form , Like-kind exchanges. 2011 state tax form , Exchange of like-kind property. 2011 state tax form Nontaxable exchange, Nontaxable exchanges. 2011 state tax form Sale of a business, Sale of a business. 2011 state tax form Distilled spirits credit, Distilled spirits credit (Form 8906). 2011 state tax form Dividend income, Interest and Dividend Income Donation of inventory, Donation of inventory. 2011 state tax form Drawing account, Merchandise withdrawn from sale. 2011 state tax form Due date of return, When Is My Tax Return Due? E e-file, IRS e-file (Electronic Filing) Economic injury, Economic injury. 2011 state tax form EFTPS, EFTPS Electronic filing, IRS e-file (Electronic Filing) Employee, Employee. 2011 state tax form Employee benefit programs, Fringe benefits. 2011 state tax form Employees' pay, Employees' Pay Employer identification number (EIN), Employer identification number (EIN). 2011 state tax form Employment taxes About, Employment Taxes Deduction for, Employment taxes. 2011 state tax form Entertainment expenses, Entertainment expenses. 2011 state tax form (see Travel expenses) Escrow, payments placed in, Payment placed in escrow. 2011 state tax form Estimated tax, How Do I Pay Income Tax? Examinations (audits), Examinations (audits). 2011 state tax form Excise taxes About, Excise Taxes Deduction for, Excise taxes. 2011 state tax form Executor, Executor or administrator. 2011 state tax form Expenses, Business Expenses Bad debts, Bad Debts Car, Car and Truck Expenses Depreciation, Depreciation Employees' pay, Employees' Pay Entertainment, Travel, Meals, and Entertainment Home, business use, Business Use of Your Home Insurance, Insurance Interest, Interest Legal and professional fees, Legal and Professional Fees Meals, Travel, Meals, and Entertainment Nondeductible, Expenses You Cannot Deduct Other, Other Expenses You Can Deduct Pension plans, Pension Plans Rent, Rent Expense Taxes, Taxes Travel, Travel, Meals, and Entertainment Truck, Car and Truck Expenses F Fair market value, Fair market value. 2011 state tax form Filing business taxes, Filing and Paying Business Taxes Fishing crew member, Fishing crew member. 2011 state tax form , Fishing crew member. 2011 state tax form Form 1040 (tax return), How Do I File? 1040-ES (estimated tax), How Do I Pay Income Tax? 1040-V (voucher), Balance due. 2011 state tax form 1099-B (barter), Information returns. 2011 state tax form 1099-MISC (miscellaneous), Form 1099-MISC. 2011 state tax form , Information returns. 2011 state tax form 1128 (change tax year), Change in tax year. 2011 state tax form 2210 (underpayment of estimated tax), Penalty for underpayment of tax. 2011 state tax form 2290 (excise tax for heavy trucks), Form 2290. 2011 state tax form 3115 (change accounting method), Change in Accounting Method 3468 (investment credit), Investment credit (Form 3468). 2011 state tax form 3800 (general business credit), Useful Items - You may want to see: 4562 (depreciation), Form 4562. 2011 state tax form 4684 (casualty and theft), Casualties and thefts. 2011 state tax form 4797 (sale of business property), Dispositions of business property and depreciable property. 2011 state tax form , Condemned property. 2011 state tax form , Listed property. 2011 state tax form 4868 (extension), When Is My Tax Return Due? 5884 (work opportunity credit), Work opportunity credit (Form 5884). 2011 state tax form 6251 (alternative minimum tax), Useful Items - You may want to see: 6252 (installment sale), Installment sales. 2011 state tax form 720 (excise tax return), Form 720. 2011 state tax form 8300 (cash payments over $10,000), Form 8300. 2011 state tax form 8586 (low-income housing), Low-income housing credit (Form 8586). 2011 state tax form 8594 (asset acquisition), Sale of a business. 2011 state tax form 8820 (orphan drug credit), Orphan drug credit (Form 8820). 2011 state tax form 8824 (like-kind exchange), Like-kind exchanges. 2011 state tax form , Like-kind exchanges. 2011 state tax form 8826 (disabled access credit), Disabled access credit (Form 8826). 2011 state tax form 8829 (business in home), Deduction limit. 2011 state tax form 8835 (renewable electricity, coal credit), Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 state tax form 8846 (credit for social security on tip income), Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 2011 state tax form 8857 (innocent spouse), Innocent spouse relief. 2011 state tax form 8874 (new markets credit), New markets credit (Form 8874). 2011 state tax form 8879 (self-selected PIN), Using an Authorized IRS e-file Provider 8881 (pension plan startup costs credit), Credit for small employer pension plan startup costs (Form 8881). 2011 state tax form 8882 (employer-provided childcare credit), Credit for employer-provided childcare facilities and services (Form 8882). 2011 state tax form 8886 (transaction statement), Reminders 8896 (low sulfur diesel fuel production credit), Low sulfur diesel fuel production credit (Form 8896). 2011 state tax form 8906 (distilled spirits credit), Distilled spirits credit (Form 8906). 2011 state tax form 8907 (nonconventional fuel credit), Nonconventional source fuel credit (Form 8907). 2011 state tax form 8910 (alternative vehicle credit), Alternative motor vehicle credit (Form 8910). 2011 state tax form , Car and Truck Expenses 8911 (alternative fuel refueling property credit), Alternative fuel vehicle refueling property credit (Form 8911). 2011 state tax form 8933 (carbon dioxide sequestration credit), Carbon dioxide sequestration credit (Form 8933). 2011 state tax form 8936 (qualified plug-in electric drive motor vehicle), Qualified plug-in electric drive motor vehicle credit (Form 8936). 2011 state tax form 8941 (small employer health insurance premiums), Credit for small employer health insurance premiums (Form 8941). 2011 state tax form 982 (discharge of indebtedness), Exclusions Schedule C (sole proprietor), How Do I File? Schedule C-EZ (sole proprietor), How Do I File? Schedule SE (self-employment tax), Who must pay self-employment tax. 2011 state tax form SS-4 (application for EIN), Employer identification number (EIN). 2011 state tax form SS-5 (application for SSN), Social security number (SSN). 2011 state tax form W-2 (report wages), Form W-2. 2011 state tax form W-4 (employee withholding), Employee. 2011 state tax form W-7 (application for ITIN), Individual taxpayer identification number (ITIN). 2011 state tax form W-9 (request for TIN), Other payee. 2011 state tax form Fringe benefits, Fringe benefits. 2011 state tax form Fuel taxes, Fuel taxes. 2011 state tax form G Gains and losses, Gains and losses. 2011 state tax form General business credits, General Business Credits, Business Credits Gross profit Accuracy, Testing Gross Profit Accuracy Additions to, Additions to Gross Profit Guidelines for selected occupations, Guidelines for Selected Occupations (see also Occupations, selected) H Health insurance, deduction for self-employed, Self-employed health insurance deduction. 2011 state tax form Home, business use of, Business Use of Your Home Hotels, boarding houses, and apartments, Hotels, boarding houses, and apartments. 2011 state tax form Husband and wife business, Business owned and operated by spouses. 2011 state tax form I Identification numbers, Identification Numbers Income, Items That Are Not Income (see also Not income) Accounting for your, Accounting for Your Income Barter, Bartering for Property or Services Business, Business Income Damages, Damages. 2011 state tax form Gains and losses, Gains and losses. 2011 state tax form Kickbacks, Kickbacks. 2011 state tax form Kinds of income, Kinds of Income Lost income payments, Lost income payments. 2011 state tax form Other, Other Income Paid to a third party, Income paid to a third party. 2011 state tax form Personal property rent, Personal Property Rents Promissory notes, Promissory notes. 2011 state tax form Recapture of depreciation, Recapture of depreciation. 2011 state tax form Recovery of items previously deducted, Recovery of items previously deducted. 2011 state tax form Rental, Real Estate Rents, Personal Property Rents Restricted property, Restricted property. 2011 state tax form Income tax About, Income Tax Deduction for, Income taxes. 2011 state tax form How to pay, How Do I Pay Income Tax? Underpayment penalty, Penalty for underpayment of tax. 2011 state tax form Income tax return, who must file, Do I Have To File an Income Tax Return? Independent contractor, Independent contractor. 2011 state tax form , Employment Taxes, Sole proprietor or independent contractor. 2011 state tax form Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). 2011 state tax form Information returns, Information Returns Information, How to get more, How To Get More Information Innocent spouse relief, Innocent spouse relief. 2011 state tax form Installment sales, Installment sales. 2011 state tax form Insurance Expense, Insurance Nondeductible premiums, Nondeductible premiums. 2011 state tax form Prepayment, Prepayment. 2011 state tax form Proceeds, Insurance proceeds. 2011 state tax form Self-employed health, Self-employed health insurance deduction. 2011 state tax form Insurance agent Former, Insurance agent, former. 2011 state tax form Retired, Insurance agent, retired. 2011 state tax form Interest Expenses, Interest Income, Interest and Dividend Income Inventories, Inventories Investment credit, Investment credit (Form 3468). 2011 state tax form K Kickbacks, Kickbacks. 2011 state tax form , Expenses You Cannot Deduct L Lease bonus, Lease bonus. 2011 state tax form Lease cancellation payments, Lease cancellation payments. 2011 state tax form Legal fees, Legal and Professional Fees Like-kind exchanges, Like-kind exchanges. 2011 state tax form , Exchange of like-kind property. 2011 state tax form Limited liability company, Limited liability company (LLC). 2011 state tax form Listed property, Listed property. 2011 state tax form Lobbying expense, Expenses You Cannot Deduct Local transportation expenses, Local transportation expenses. 2011 state tax form Lodging, Meals and lodging. 2011 state tax form Long-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Lost income payments, Lost income payments. 2011 state tax form Low sulfur diesel fuel production credit, Low sulfur diesel fuel production credit (Form 8896). 2011 state tax form Low-income housing credit, Low-income housing credit (Form 8586). 2011 state tax form M Meals, Meals and lodging. 2011 state tax form (see Travel expenses) Methods for figuring net earnings, Methods for Figuring Net Earnings Mileage rate for vehicles, Standard mileage rate. 2011 state tax form Motor vehicle, alternative credit, Alternative motor vehicle credit (Form 8910). 2011 state tax form N Net operating losses, Net Operating Losses (NOLs) Net profit or loss, Introduction New markets credit, New markets credit (Form 8874). 2011 state tax form Newspaper carrier or distributor, Newspaper carrier or distributor. 2011 state tax form Newspaper or magazine vendor, Newspaper or magazine vendor. 2011 state tax form Nonbusiness bad debt, Nonbusiness bad debts. 2011 state tax form Nonconventional source fuel credit, Nonconventional source fuel credit (Form 8907). 2011 state tax form Nondeductible insurance premiums, Nondeductible premiums. 2011 state tax form Nonemployee compensation, Introduction Nontaxable exchanges, Nontaxable exchanges. 2011 state tax form Not income Appreciation, Appreciation. 2011 state tax form Consignments, Consignments. 2011 state tax form Constructions allowances, Construction allowances. 2011 state tax form Exchange of like-kind property, Exchange of like-kind property. 2011 state tax form Leasehold improvements, Leasehold improvements. 2011 state tax form Loans, Loans. 2011 state tax form Sales tax, Sales tax. 2011 state tax form Not-for-profit activities, Not-for-Profit Activities Notary public, Notary public. 2011 state tax form , Notary public. 2011 state tax form O Occupations, selected Administrator, Executor or administrator. 2011 state tax form Direct seller, Direct seller. 2011 state tax form , Real estate agent or direct seller. 2011 state tax form Executor, Executor or administrator. 2011 state tax form Fishing crew member, Fishing crew member. 2011 state tax form Insurance agent, former, Insurance agent, former. 2011 state tax form Insurance agent, retired, Insurance agent, retired. 2011 state tax form Newspaper carrier or distributor, Newspaper carrier or distributor. 2011 state tax form Newspaper or magazine vendor, Newspaper or magazine vendor. 2011 state tax form Notary public, Notary public. 2011 state tax form Public official, Public official. 2011 state tax form Real estate agent, Real estate agent or direct seller. 2011 state tax form Securities dealer, Securities dealer. 2011 state tax form Securities trader, Securities trader. 2011 state tax form Office in the home, Office in the home. 2011 state tax form (see also Business use of your home) Optional methods, using both, Using Both Optional Methods Ordinary gain or loss, Is My Gain or Loss Ordinary or Capital? Orphan drug credit, Orphan drug credit (Form 8820). 2011 state tax form P Parking fees, Parking fees and tolls. 2011 state tax form Partners, husband and wife, Business owned and operated by spouses. 2011 state tax form Pay, kinds of, Kinds of pay. 2011 state tax form Paying Business taxes, Filing and Paying Business Taxes Income tax, How Do I Pay Income Tax? Payments to third parties, Payments to third parties. 2011 state tax form Penalties and fines, Expenses You Cannot Deduct Penalty Failure to file Form 8300, Penalties. 2011 state tax form Failure to file information returns, Penalties. 2011 state tax form Failure to furnish correct payee statements, Penalties. 2011 state tax form Underpayment of tax, Penalty for underpayment of tax. 2011 state tax form Waiver of, Waiver of penalties. 2011 state tax form Pension plans, Pension Plans Personal property tax, Personal property tax. 2011 state tax form Prepaid expense Extends useful life, Prepayment. 2011 state tax form Rent, Rent paid in advance. 2011 state tax form Professional fees, Legal and Professional Fees Promissory notes, Promissory notes. 2011 state tax form Public official, Public official. 2011 state tax form Punitive damages, Punitive damages. 2011 state tax form Q Qualified plug-in electric drive motor vehicle credit, Qualified plug-in electric drive motor vehicle credit (Form 8936). 2011 state tax form Qualified real property business debt, Qualified real property business debt. 2011 state tax form R Real estate Agent, Real estate agent or direct seller. 2011 state tax form Dealer, Real estate dealer. 2011 state tax form Rent, Real Estate Rents Taxes, Real estate taxes. 2011 state tax form Recovery of items previously deducted, Recovery of items previously deducted. 2011 state tax form Refund Inquiries, Refund inquiries. 2011 state tax form Offsets against debts, Offset against debts. 2011 state tax form Related persons Unreasonable rent, Unreasonable rent. 2011 state tax form Renewable electricity, refined coal, and Indian coal production credit, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 state tax form Rent expense, Rent Expense Rental income, Real Estate Rents Repayment of income, Repayment of income. 2011 state tax form Reportable transaction disclosure statement, Reminders Reporting self-employment tax, Reporting Self-Employment Tax Restricted property, Restricted property. 2011 state tax form Retirement plans (see Pension plans) S Salaries, Employees' Pay Sale of a business, Sale of a business. 2011 state tax form Sale of property, What Is a Disposition of Property? (see also Disposition of property) Sales of assets, Introduction Sales tax, Sales tax. 2011 state tax form Schedule C, How Do I File? Schedule C-EZ, How Do I File? Schedule SE (Form 1040), Who must pay self-employment tax. 2011 state tax form Schedule SE, filing requirement, Reporting Self-Employment Tax SE tax About, Self-Employment (SE) Tax Aliens, Aliens. 2011 state tax form Child employed by parent, Child employed by parent. 2011 state tax form Church employee, Church employee. 2011 state tax form Community property income, Community Property Income Deduction for, Self-employment tax. 2011 state tax form Earning credits, Earning credits in 2013 and 2014. 2011 state tax form Effects of using an optional method, Effects of using an optional method. 2011 state tax form Farm optional method, Farm Optional Method Fiscal year filer, Fiscal Year Filer Fishing crew member, Fishing crew member. 2011 state tax form Gain or loss, Gain or Loss Government employee, State or local government employee. 2011 state tax form , Foreign government or international organization employee. 2011 state tax form Joint return, Joint return. 2011 state tax form Lost income payments, Lost Income Payments Maximum earnings For 2011, What's New for 2013, Maximum earnings subject to SE tax. 2011 state tax form Subject to, Maximum earnings subject to self-employment tax. 2011 state tax form Methods for figuring net earnings, Methods for Figuring Net Earnings More than one business, More Than One Business, More than one business. 2011 state tax form Nonfarm optional method, Nonfarm Optional Method Notary public, Notary public. 2011 state tax form Optional methods Farm, Farm Optional Method Nonfarm, Nonfarm Optional Method Rate, SE tax rate. 2011 state tax form Regular method, Regular Method Residing abroad, U. 2011 state tax form S. 2011 state tax form citizen or resident alien residing abroad. 2011 state tax form Special rules and exceptions, Special Rules and Exceptions Tax rate, SE tax rate. 2011 state tax form Time limit for posting income, The Social Security Administration (SSA) time limit for posting self-employment income. 2011 state tax form Who must pay, Who Must Pay SE Tax? Why use an optional method, Why use an optional method? Section 179 Deduction, Section 179 deduction. 2011 state tax form Property, Section 179 property. 2011 state tax form Securities Dealer, Securities dealer. 2011 state tax form Trader, Securities trader. 2011 state tax form Self-employed health insurance deduction, Self-employed health insurance deduction. 2011 state tax form Self-employment tax (see SE tax) Settlement payments, Settlement payments. 2011 state tax form Short-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Signature, electronic, Electronic signatures. 2011 state tax form Small Business Administration, Small Business Administration Small employer health insurance premiums credit, Credit for small employer health insurance premiums (Form 8941). 2011 state tax form Social security coverage, Social security coverage. 2011 state tax form Social security number (SSN), Social security number (SSN). 2011 state tax form Sole proprietor, Sole proprietor. 2011 state tax form , Sole proprietor or independent contractor. 2011 state tax form Sport utility vehicle, Section 179 deduction. 2011 state tax form Standard mileage rate, Standard mileage rate. 2011 state tax form For 2011, What's New for 2013 Statutory employee, Statutory employee. 2011 state tax form Suggestions for publication, Comments and suggestions. 2011 state tax form SUV, Section 179 deduction. 2011 state tax form T Tax home, Local transportation expenses. 2011 state tax form , Travel expenses. 2011 state tax form Tax preparation fees, Tax preparation fees. 2011 state tax form Tax refund Claim for, Refunds. 2011 state tax form Offset against debts, Offset against debts. 2011 state tax form Tax return How to file, How Do I File? Who must file, Do I Have To File an Income Tax Return? Tax year, Accounting Periods Calendar, Calendar tax year. 2011 state tax form Change in, Change in tax year. 2011 state tax form Fiscal, Fiscal tax year. 2011 state tax form Taxes Deduction for, Taxes Employment, Employment Taxes, Employment taxes. 2011 state tax form Excise, Excise Taxes, Excise taxes. 2011 state tax form Fuel, Fuel taxes. 2011 state tax form Income, Income Tax, Income taxes. 2011 state tax form Paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 2011 state tax form Personal property, Personal property tax. 2011 state tax form Real estate, Real estate taxes. 2011 state tax form Sales, Sales tax. 2011 state tax form Self-employment, Self-Employment (SE) Tax, Self-employment tax. 2011 state tax form Taxpayer rights, Declaration of Taxpayer Rights Third parties, Payments to, Payments to third parties. 2011 state tax form Tolls, Parking fees and tolls. 2011 state tax form Trade discount, Trade discounts. 2011 state tax form , Trade discounts. 2011 state tax form Trade or business, Trade or business. 2011 state tax form Trailer park owner, Trailer park owner. 2011 state tax form Transportation expenses, Local transportation expenses. 2011 state tax form Travel expenses, Travel expenses. 2011 state tax form U Underpayment of tax penalty, Penalty for underpayment of tax. 2011 state tax form Uniform capitalization rules, Uniform Capitalization Rules W Wages, Employees' Pay Work opportunity credit, Work opportunity credit (Form 5884). 2011 state tax form Prev  Up     Home   More Online Publications
Español

The 2011 State Tax Form

2011 state tax form 2. 2011 state tax form   Tax Shelters and Other Reportable Transactions Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Abusive Tax SheltersRules To Curb Abusive Tax Shelters Investor Reporting Penalties Whether To Invest Introduction Investments that yield tax benefits are sometimes called “tax shelters. 2011 state tax form ” In some cases, Congress has concluded that the loss of revenue is an acceptable side effect of special tax provisions designed to encourage taxpayers to make certain types of investments. 2011 state tax form In many cases, however, losses from tax shelters produce little or no benefit to society, or the tax benefits are exaggerated beyond those intended. 2011 state tax form Those cases are called “abusive tax shelters. 2011 state tax form ” An investment that is considered a tax shelter is subject to restrictions, including the requirement that it be disclosed, as discussed later. 2011 state tax form Topics - This chapter discusses: Abusive Tax Shelters , Rules To Curb Abusive Tax Shelters , Investor Reporting , Penalties , and Whether To Invest . 2011 state tax form Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 556 Examination of Returns, Appeal Rights, and Claims for Refund 561 Determining the Value of Donated Property 925 Passive Activity and At-Risk Rules Form (and Instructions) 8275 Disclosure Statement 8275-R Regulation Disclosure Statement 8283 Noncash Charitable Contributions 8886 Reportable Transaction Disclosure Statement See chapter 5, How To Get Tax Help , for information about getting these publications and forms. 2011 state tax form Abusive Tax Shelters Abusive tax shelters are marketing schemes involving artificial transactions with little or no economic reality. 2011 state tax form They often make use of unrealistic allocations, inflated appraisals, losses in connection with nonrecourse loans, mismatching of income and deductions, financing techniques that do not conform to standard commercial business practices, or mischaracterization of the substance of the transaction. 2011 state tax form Despite appearances to the contrary, the taxpayer generally risks little. 2011 state tax form Abusive tax shelters commonly involve package deals designed from the start to generate losses, deductions, or credits that will be far more than present or future investment. 2011 state tax form Or, they may promise investors from the start that future inflated appraisals will enable them, for example, to reap charitable contribution deductions based on those appraisals. 2011 state tax form (But see the appraisal requirements discussed under Rules To Curb Abusive Tax Shelters , later. 2011 state tax form ) They are commonly marketed in terms of the ratio of tax deductions allegedly available to each dollar invested. 2011 state tax form This ratio (or “write-off”) is frequently said to be several times greater than one-to-one. 2011 state tax form Because there are many abusive tax shelters, it is not possible to list all the factors you should consider in determining whether an offering is an abusive tax shelter. 2011 state tax form However, you should ask the following questions, which might provide a clue to the abusive nature of the plan. 2011 state tax form Do the tax benefits far outweigh the economic benefits? Is this a transaction you would seriously consider, apart from the tax benefits, if you hoped to make a profit? Do shelter assets really exist and, if so, are they insured for less than their purchase price? Is there a nontax justification for the way profits and losses are allocated to partners? Do the facts and supporting documents make economic sense? In that connection, are there sales and resales of the tax shelter property at ever increasing prices? Does the investment plan involve a gimmick, device, or sham to hide the economic reality of the transaction? Does the promoter offer to backdate documents after the close of the year? Are you instructed to backdate checks covering your investment? Is your debt a real debt or are you assured by the promoter that you will never have to pay it? Does this transaction involve laundering United States source income through foreign corporations incorporated in a tax haven and owned by United States shareholders? Rules To Curb Abusive Tax Shelters Congress has enacted a series of income tax laws designed to halt the growth of abusive tax shelters. 2011 state tax form These provisions include the following. 2011 state tax form Disclosure of reportable transactions. 2011 state tax form   You must disclose information for each reportable transaction in which you participate. 2011 state tax form See Reportable Transaction Disclosure Statement , later. 2011 state tax form   Material advisors with respect to any reportable transaction must disclose information about the transaction on Form 8918, Material Advisor Disclosure Statement. 2011 state tax form To determine whether you are a material advisor to a transaction, see the Instructions for Form 8918. 2011 state tax form   Material advisors will receive a reportable transaction number for the disclosed reportable transaction. 2011 state tax form They must provide this number to all persons to whom they acted as a material advisor. 2011 state tax form They must provide the number at the time the transaction is entered into. 2011 state tax form If they do not have the number at that time, they must provide it within 60 days from the date the number is mailed to them. 2011 state tax form For information on penalties for failure to disclose and failure to maintain lists, see Internal Revenue Code sections 6707, 6707A, and 6708. 2011 state tax form Requirement to maintain list. 2011 state tax form   Material advisors must maintain a list of persons to whom they provide material aid, assistance, or advice on any reportable transaction. 2011 state tax form The list must be available for inspection by the IRS, and the information required to be included on the list generally must be kept for 7 years. 2011 state tax form See Regulations section 301. 2011 state tax form 6112-1 for more information (including what information is required to be included on the list). 2011 state tax form Confidentiality privilege. 2011 state tax form   The confidentiality privilege between you and a federally authorized tax practitioner does not apply to written communications made after October 21, 2004, regarding the promotion of your direct or indirect participation in any tax shelter. 2011 state tax form Appraisal requirement for donated property. 2011 state tax form   If you claim a deduction of more than $5,000 for an item or group of similar items of donated property, you generally must get a qualified appraisal from a qualified appraiser and complete and attach section B of Form 8283 to your return. 2011 state tax form If you claim a deduction of more than $500,000 for the donated property, you generally must attach the qualified appraisal to your return. 2011 state tax form If you file electronically, see Form 8453, U. 2011 state tax form S. 2011 state tax form Individual Income Tax Transmittal for an IRS e-file Return, and its instructions. 2011 state tax form For more information about appraisals, including exceptions, see Publication 561. 2011 state tax form Passive activity loss and credit limits. 2011 state tax form   The passive activity loss and credit rules limit the amount of losses and credits that can be claimed from passive activities and limit the amount that can offset nonpassive income, such as certain portfolio income from investments. 2011 state tax form For more detailed information about determining and reporting income, losses, and credits from passive activities, see Publication 925. 2011 state tax form Interest on penalties. 2011 state tax form   If you are assessed an accuracy-related or civil fraud penalty (as discussed under Penalties , later), interest will be imposed on the amount of the penalty from the due date of the return (including any extensions) to the date you pay the penalty. 2011 state tax form Accounting method restriction. 2011 state tax form   Tax shelters generally cannot use the cash method of accounting. 2011 state tax form Uniform capitalization rules. 2011 state tax form   The uniform capitalization rules generally apply to producing property or acquiring it for resale. 2011 state tax form Under those rules, the direct cost and part of the indirect cost of the property must be capitalized or included in inventory. 2011 state tax form For more information, see Publication 538. 2011 state tax form Denial of deduction for interest on an underpayment due to a reportable transaction. 2011 state tax form   You cannot deduct any interest you paid or accrued on any part of an underpayment of tax due to an understatement arising from a reportable transaction (discussed later) if the relevant facts affecting the tax treatment of the item are not adequately disclosed. 2011 state tax form This rule applies to reportable transactions entered into in tax years beginning after October 22, 2004. 2011 state tax form Authority for Disallowance of Tax Benefits The IRS has published guidance concluding that the claimed tax benefits of various abusive tax shelters should be disallowed. 2011 state tax form The guidance is the conclusion of the IRS on how the law is applied to a particular set of facts. 2011 state tax form Guidance is published in the Internal Revenue Bulletin for taxpayers' information and also for use by IRS officials. 2011 state tax form So, if your return is examined and an abusive tax shelter is identified and challenged, published guidance dealing with that type of shelter, which disallows certain claimed tax shelter benefits, could serve as the basis for the examining official's challenge of the tax benefits you claimed. 2011 state tax form In such a case, the examiner will not compromise even if you or your representative believes you have authority for the positions taken on your tax return. 2011 state tax form The courts have generally been unsympathetic to taxpayers involved in abusive tax shelter schemes and have ruled in favor of the IRS in the majority of the cases in which these shelters have been challenged. 2011 state tax form Investor Reporting You may be required to file a reportable transaction disclosure statement. 2011 state tax form Reportable Transaction Disclosure Statement Use Form 8886 to disclose information for each reportable transaction (discussed later) in which you participated. 2011 state tax form Generally, you must attach Form 8886 to your return for each tax year in which you participated in the transaction. 2011 state tax form Under certain circumstances, a transaction must be disclosed within 90 days of the transaction being identified as a listed transaction or a transaction of interest (discussed later). 2011 state tax form In addition, for the first year Form 8886 is attached to your return, you must send a copy of the form to: Internal Revenue Service OTSA Mail Stop 4915 1973 North Rulon White Blvd. 2011 state tax form  Ogden, UT 84404 If you file your return electronically, the copy sent to OTSA must show exactly the same information, word for word, provided with the electronically filed return and it must be provided on the official IRS Form 8886 or an exact copy of the form. 2011 state tax form If you use a computer-generated or substitute Form 8886, it must be an exact copy of the official IRS form. 2011 state tax form If you fail to file Form 8886 as required or fail to include any required information on the form, you may have to pay a penalty. 2011 state tax form See Penalty for failure to disclose a reportable transaction , later under Penalties. 2011 state tax form The following discussion briefly describes reportable transactions. 2011 state tax form For more details, see the Instructions for Form 8886. 2011 state tax form Reportable transaction. 2011 state tax form   A reportable transaction is any of the following. 2011 state tax form A listed transaction. 2011 state tax form A confidential transaction. 2011 state tax form A transaction with contractual protection. 2011 state tax form A loss transaction. 2011 state tax form A transaction of interest entered into after November 1, 2006. 2011 state tax form Note. 2011 state tax form Transactions with a brief asset holding period were removed from the definition of reportable transaction for transactions entered into after August 2, 2007. 2011 state tax form Listed transaction. 2011 state tax form   A listed transaction is the same as, or substantially similar to, one of the types of transactions the IRS has determined to be a tax-avoidance transaction. 2011 state tax form These transactions have been identified in notices, regulations, and other published guidance issued by the IRS. 2011 state tax form For a list of existing guidance, see Notice 2009-59 in Internal Revenue Bulletin 2009-31, available at www. 2011 state tax form irs. 2011 state tax form gov/irb/2009-31_IRB/ar07. 2011 state tax form html. 2011 state tax form Confidential transaction. 2011 state tax form   A confidential transaction is offered to you under conditions of confidentiality and for which you have paid an advisor a minimum fee. 2011 state tax form A transaction is offered under conditions of confidentiality if the advisor who is paid the fee places a limit on your disclosure of the tax treatment or tax structure of the transaction and the limit protects the confidentiality of the advisor's tax strategies. 2011 state tax form The transaction is treated as confidential even if the conditions of confidentiality are not legally binding on you. 2011 state tax form Transaction with contractual protection. 2011 state tax form   Generally, a transaction with contractual protection is one in which you or a related party has the right to a full or partial refund of fees if all or part of the intended tax consequences of the transaction are not sustained, or a transaction for which the fees are contingent on your realizing the tax benefits from the transaction. 2011 state tax form For information on exceptions, see Revenue Procedure 2007-20 in Internal Revenue Bulletin 2007-7, available at www. 2011 state tax form irs. 2011 state tax form gov/irb/2007-07_IRB/ar15. 2011 state tax form html. 2011 state tax form Loss transaction. 2011 state tax form   For individuals, a loss transaction is one that results in a deductible loss if the gross amount of the loss is at least $2 million in a single tax year or $4 million in any combination of tax years. 2011 state tax form A loss from a foreign currency transaction under Internal Revenue Code section 988 is a loss transaction if the gross amount of the loss is at least $50,000 in a single tax year, whether or not the loss flows through from an S corporation or partnership. 2011 state tax form   Certain losses (such as losses from casualties, thefts, and condemnations) are excepted from this category and do not have to be reported on Form 8886. 2011 state tax form For information on other exceptions, see Revenue Procedure 2004-66 in Internal Revenue Bulletin 2004-50, as modified and superseded by Revenue Procedure 2013-11, (or future published guidance) available at www. 2011 state tax form irs. 2011 state tax form gov/irb/2004-50_IRB/ar11. 2011 state tax form html. 2011 state tax form Transaction of interest. 2011 state tax form   A transaction of interest is a transaction entered into after November 1, 2006, that is the same as, or substantially similar to, one of the types of transactions that the IRS has identified by notice, regulation, or other form of published guidance as a transaction of interest. 2011 state tax form The IRS has identified the following transactions of interest. 2011 state tax form “Toggling” grantor trusts as described in Notice 2007-73, 2007-36 I. 2011 state tax form R. 2011 state tax form B. 2011 state tax form 545, available at www. 2011 state tax form irs. 2011 state tax form gov/irb/2007-36_IRB/ar20. 2011 state tax form html. 2011 state tax form Certain transactions involving contributions of a successor member interest in a limited liability company as described in Notice 2007-72, 2007-36 I. 2011 state tax form R. 2011 state tax form B. 2011 state tax form 544, available at www. 2011 state tax form irs. 2011 state tax form gov/irb/2007-36_IRB/ar19. 2011 state tax form html. 2011 state tax form Certain transactions involving the sale or other disposition of all interests in a charitable remainder trust and claiming little or no taxable gain as described in Notice 2008-99, 2008-47 I. 2011 state tax form R. 2011 state tax form B. 2011 state tax form 1194, available at www. 2011 state tax form irs. 2011 state tax form gov/irb/2008-47_IRB/ar11. 2011 state tax form html. 2011 state tax form Certain transactions involving a U. 2011 state tax form S. 2011 state tax form taxpayer owning controlled foreign corporations (CFCs) that hold stock of a lower-tier CFC through a domestic partnership to avoid reporting income as described in Notice 2009-7, 2009-3 I. 2011 state tax form R. 2011 state tax form B. 2011 state tax form 312, available at www. 2011 state tax form irs. 2011 state tax form gov/irb/2009-03_IRB/ar10. 2011 state tax form html. 2011 state tax form   For updates to this list, go to www. 2011 state tax form irs. 2011 state tax form gov/Businesses/Corporations/Abusive-Tax-Shelters-and-Transactions. 2011 state tax form Penalties Investing in an abusive tax shelter may lead to substantial expenses. 2011 state tax form First, the promoter generally charges a substantial fee. 2011 state tax form If your return is examined by the IRS and a tax deficiency is determined, you will be faced with payment of more tax, interest on the underpayment, possibly a 20%, 30%, or even 40% accuracy-related penalty, or a 75% civil fraud penalty. 2011 state tax form You may also be subject to the penalty for failure to pay tax. 2011 state tax form These penalties are explained in the following paragraphs. 2011 state tax form Accuracy-related penalties. 2011 state tax form   An accuracy-related penalty of 20% can be imposed for underpayments of tax due to: Negligence or disregard of rules or regulations, Substantial understatement of tax, Substantial valuation misstatement (increased to 40% for gross valuation misstatement), Transaction lacking economic substance (increased to 40% for undisclosed transaction lacking economic substance), or Undisclosed foreign financial asset understatement (40% in all cases). 2011 state tax form Except for a transaction lacking economic substance, this penalty will not be imposed if you can show you had reasonable cause for any understatement of tax and that you acted in good faith. 2011 state tax form Your failure to disclose a reportable transaction is a strong indication that you failed to act in good faith. 2011 state tax form   If you are charged an accuracy-related penalty, interest will be imposed on the amount of the penalty from the due date of the return (including extensions) to the date you pay the penalty. 2011 state tax form   The 20% penalties do not apply to any underpayment attributable to a reportable transaction understatement subject to an accuracy-related penalty (discussed later). 2011 state tax form Negligence or disregard of rules or regulations. 2011 state tax form   The penalty for negligence or disregard of rules or regulations is imposed only on the part of the underpayment due to negligence or disregard of rules or regulations. 2011 state tax form The penalty will not be charged if you can show you had reasonable cause for understating your tax and that you acted in good faith. 2011 state tax form    Negligence includes any failure to make a reasonable attempt to comply with the provisions of the Internal Revenue Code. 2011 state tax form It also includes any failure to keep adequate books and records. 2011 state tax form A return position that has a reasonable basis is not negligence. 2011 state tax form   Disregard includes any careless, reckless, or intentional disregard of rules or regulations. 2011 state tax form   The penalty for disregard of rules and regulations can be avoided if all the following are true. 2011 state tax form You keep adequate books and records. 2011 state tax form You have a reasonable basis for your position on the tax issue. 2011 state tax form You make an adequate disclosure of your position. 2011 state tax form Use Form 8275 to make your disclosure and attach it to your return. 2011 state tax form To disclose a position contrary to a regulation, use Form 8275-R. 2011 state tax form Use Form 8886 to disclose a reportable transaction (discussed earlier). 2011 state tax form Substantial understatement of tax. 2011 state tax form   An understatement is considered to be substantial if it is more than the greater of: 10% of the tax required to be shown on the return, or $5,000. 2011 state tax form An “understatement” is the amount of tax required to be shown on your return for a tax year minus the amount of tax shown on the return, reduced by any rebates. 2011 state tax form The term “rebate” generally means a decrease in the tax shown on your original return as the result of your filing an amended return or claim for refund. 2011 state tax form   For items other than tax shelters, you can file Form 8275 or Form 8275-R to disclose items that could cause a substantial understatement of income tax. 2011 state tax form In that way, you can avoid the substantial understatement penalty if you have a reasonable basis for your position on the tax issue. 2011 state tax form Disclosure of the tax shelter item on a tax return does not reduce the amount of the understatement. 2011 state tax form   Also, the understatement penalty will not be imposed if you can show there was reasonable cause for the underpayment caused by the understatement and that you acted in good faith. 2011 state tax form An important factor in establishing reasonable cause and good faith will be the extent of your effort to determine your proper tax liability under the law. 2011 state tax form Substantial valuation misstatement. 2011 state tax form   In general, you are liable for a 20% penalty for a substantial valuation misstatement if all the following are true. 2011 state tax form The value or adjusted basis of any property claimed on the return is 150% or more of the correct amount. 2011 state tax form You underpaid your tax by more than $5,000 because of the misstatement. 2011 state tax form You cannot establish that you had reasonable cause for the underpayment and that you acted in good faith. 2011 state tax form   You may be assessed a penalty of 40% for a gross valuation misstatement. 2011 state tax form If you misstate the value or the adjusted basis of property by 200% or more of the amount determined to be correct, you will be assessed a penalty of 40%, instead of 20%, of the amount you underpaid because of the gross valuation misstatement. 2011 state tax form The penalty rate is also 40% if the property's correct value or adjusted basis is zero. 2011 state tax form Transaction lacking economic substance. 2011 state tax form   The economic substance doctrine only applies to an individual that entered into a transaction in connection with a trade or business or an activity engaged in for the production of income. 2011 state tax form For transactions entered into after March 30, 2010, a transaction has economic substance for you as an individual taxpayer only if: The transaction changes your economic position in a meaningful way (apart from federal income tax effects), or You have a substantial purpose (apart from federal income tax effects) for entering into the transaction. 2011 state tax form   For purposes of determining whether economic substance exists, a transaction's profit potential will only be taken into account if the present value of the reasonably expected pre-tax profit from the transaction is substantial compared to the present value of the expected net tax benefits that would be allowed if the transaction were respected. 2011 state tax form   If any part of your underpayment is due to any disallowance of claimed tax benefits by reason of a transaction lacking economic substance or failing to meet the requirements of any similar rule of law, that part of your underpayment will be subject to the 20% accuracy-related penalty even if you had a reasonable cause and acted in good faith concerning that part. 2011 state tax form   Additionally, the penalty increases to 40% if you do not adequately disclose on your return or in a statement attached to your return the relevant facts affecting the tax treatment of a transaction that lacks economic substance. 2011 state tax form Relevant facts include any facts affecting the tax treatment of the transaction. 2011 state tax form    Any excessive amount of an erroneous claim for an income tax refund or credit (other than a refund or credit related to the earned income credit) that results from a transaction found to be lacking economic substance will not be treated as having a reasonable basis and could be subject to a 20% penalty. 2011 state tax form Undisclosed foreign financial asset understatement. 2011 state tax form   For tax years beginning after March 18, 2010, you may be liable for a 40% penalty for an understatement of your tax liability due to an undisclosed foreign financial asset. 2011 state tax form An undisclosed foreign financial asset is any asset for which an information return, required to be provided under Internal Revenue Code section 6038, 6038B, 6038D, 6046A, or 6048 for any taxable year, is not provided. 2011 state tax form The penalty applies to any part of an underpayment related to the following undisclosed foreign financial assets. 2011 state tax form Any foreign business you control, reportable on Form 5471, Information Return of U. 2011 state tax form S. 2011 state tax form Persons With Respect To Certain Foreign Corporations, or Form 8865, Return of U. 2011 state tax form S. 2011 state tax form Persons With Respect to Certain Foreign Partnerships. 2011 state tax form Certain transfers of property to a foreign corporation or partnership, reportable on Form 926, Return by a U. 2011 state tax form S. 2011 state tax form Transferor of Property to a Foreign Corporation, or certain distributions to a foreign person, reportable on Form 8865. 2011 state tax form Your ownership interest in certain foreign financial assets, temporarily reportable on Form 8275 or 8275-R. 2011 state tax form    Instead of, or in addition to, Form 8275 or 8275-R, you may have to file Form 8938, Statement of Specified Foreign Financial Assets, with your tax return. 2011 state tax form See the Instructions for Form 8938 for details. 2011 state tax form    Your acquisition, disposition, or substantial change in ownership interest in a foreign partnership, reportable on Form 8865. 2011 state tax form Creation or transfer of money or property to certain foreign trusts, reportable on Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. 2011 state tax form Penalty for incorrect appraisals. 2011 state tax form   The person who prepares an appraisal of the value of property may have to pay a penalty if: He or she knows, or reasonably should have known, that the appraisal would be used in connection with a return or claim for refund; and The claimed value of the property on a return or claim for refund based on that appraisal results in a substantial valuation misstatement or a gross valuation misstatement as discussed earlier. 2011 state tax form For details on the penalty amount and exceptions, see Publication 561. 2011 state tax form Penalty for failure to disclose a reportable transaction. 2011 state tax form   If you fail to include any required information regarding a reportable transaction (discussed earlier) on a return or statement, you may have to pay a penalty of 75% of the decrease in tax shown on your return as a result of such transaction (or that would have resulted if the transaction were respected for federal tax purposes). 2011 state tax form For an individual, the minimum penalty is $5,000 and the maximum is $10,000 (or $100,000 for a listed transaction). 2011 state tax form This penalty is in addition to any other penalty that may be imposed. 2011 state tax form   The IRS may rescind or abate the penalty for failing to disclose a reportable transaction under certain limited circumstances but cannot rescind the penalty for failing to disclose a listed transaction. 2011 state tax form For information on rescission, see Revenue Procedure 2007-21 in Internal Revenue Bulletin 2007-9 available at www. 2011 state tax form irs. 2011 state tax form gov/irb/2007-09_IRB/ar12. 2011 state tax form html. 2011 state tax form Accuracy-related penalty for a reportable transaction understatement. 2011 state tax form   If you have a reportable transaction understatement, you may have to pay a penalty equal to 20% of the amount of that understatement. 2011 state tax form This applies to any item due to a listed transaction or other reportable transaction with a significant purpose of avoiding or evading federal income tax. 2011 state tax form The penalty is 30% rather than 20% for the part of any reportable transaction understatement if the transaction was not properly disclosed. 2011 state tax form You may not have to pay the 20% penalty if you meet the strengthened reasonable cause and good faith exception. 2011 state tax form The reasonable cause and good faith exception does not apply to any part of a reportable transaction understatement attributable to one or more transactions that lack economic substance. 2011 state tax form   This penalty does not apply to the part of an understatement on which the fraud penalty, gross valuation misstatement penalty, or penalty for nondisclosure of noneconomic substance transactions is imposed. 2011 state tax form Civil fraud penalty. 2011 state tax form   If any underpayment of tax on your return is due to fraud, a penalty of 75% of the underpayment will be added to your tax. 2011 state tax form Joint return. 2011 state tax form   The fraud penalty on a joint return applies to a spouse only if some part of the underpayment is due to the fraud of that spouse. 2011 state tax form Failure to pay tax. 2011 state tax form   If a deficiency is assessed and is not paid within 10 days of the demand for payment, an investor can be penalized with up to a 25% addition to tax if the failure to pay continues. 2011 state tax form Whether To Invest In light of the adverse tax consequences and the substantial amount of penalties and interest that will result if the claimed tax benefits are disallowed, you should consider tax shelter investments carefully and seek competent legal and financial advice. 2011 state tax form Prev  Up  Next   Home   More Online Publications