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Can I Efile A 2011 Tax Return

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Can I Efile A 2011 Tax Return

Can i efile a 2011 tax return Publication 516 - Main Content Table of Contents U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Tax ReturnFiling Information Foreign Bank Accounts U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Can i efile a 2011 tax return U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Tax Return Filing Information If you are a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. Can i efile a 2011 tax return However, the special rules explained in the following discussions may apply to you. Can i efile a 2011 tax return See also Tax Treaty Benefits, later. Can i efile a 2011 tax return When To File and Pay Most individual tax returns cover a calendar year, January through December. Can i efile a 2011 tax return The regular due date for these tax returns is April 15 of the following year. Can i efile a 2011 tax return If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. Can i efile a 2011 tax return If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. Can i efile a 2011 tax return You must pay interest on any tax not paid by the regular due date. Can i efile a 2011 tax return Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. Can i efile a 2011 tax return See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. Can i efile a 2011 tax return If your return is filed late, the postmark or delivery service date does not determine the date of filing. Can i efile a 2011 tax return In that case, your return is considered filed when it is received by the IRS. Can i efile a 2011 tax return Extensions You may be able to get an extension of time to file your return and pay your tax. Can i efile a 2011 tax return Automatic 2-month extension. Can i efile a 2011 tax return   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. Can i efile a 2011 tax return To get this extension, you must attach a statement to your return explaining how you qualified. Can i efile a 2011 tax return You will owe interest on any tax not paid by the regular due date of your return. Can i efile a 2011 tax return Married taxpayers. Can i efile a 2011 tax return   If you file a joint return, either you or your spouse can qualify for the automatic extension. Can i efile a 2011 tax return If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. Can i efile a 2011 tax return Additional extension. Can i efile a 2011 tax return   You can apply for an additional extension of time to file your return by filing Form 4868. Can i efile a 2011 tax return You must file Form 4868 by the due date for your income tax return. Can i efile a 2011 tax return   Generally, you must file it by April 15. Can i efile a 2011 tax return However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. Can i efile a 2011 tax return Check the box on line 8 of Form 4868. Can i efile a 2011 tax return Payment of tax. Can i efile a 2011 tax return   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. Can i efile a 2011 tax return The late-payment penalty applies if, through withholding, etc. Can i efile a 2011 tax return , you paid less than 90% of your actual tax liability by the original due date of your income tax return. Can i efile a 2011 tax return Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. Can i efile a 2011 tax return Electronic filing. Can i efile a 2011 tax return   You can file for the additional extension by phone, using your home computer, or through a tax professional. Can i efile a 2011 tax return See Form 4868 for more information. Can i efile a 2011 tax return Limit on additional extensions. Can i efile a 2011 tax return   You generally cannot get a total extension of more than 6 months. Can i efile a 2011 tax return However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. Can i efile a 2011 tax return   For more information, see Publication 54. Can i efile a 2011 tax return Foreign Bank Accounts You must file Form TD F 90-22. Can i efile a 2011 tax return 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. Can i efile a 2011 tax return This applies if the combined assets in the account(s) were more than $10,000. Can i efile a 2011 tax return Do not include accounts in a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return military banking facility operated by a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return financial institution. Can i efile a 2011 tax return File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. Can i efile a 2011 tax return Do not attach it to Form 1040. Can i efile a 2011 tax return If you are required to file Form TD F 90-22. Can i efile a 2011 tax return 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). Can i efile a 2011 tax return You also may be required to file Form 8938 with your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. Can i efile a 2011 tax return For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. Can i efile a 2011 tax return For more information, see Form 8938 and its instructions. Can i efile a 2011 tax return U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. Can i efile a 2011 tax return If you are a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return law. Can i efile a 2011 tax return This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). Can i efile a 2011 tax return If you are a nonresident alien, your income from sources outside the United States is not subject to U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return tax. Can i efile a 2011 tax return Foreign Earned Income Exclusion Employees of the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government as an employee. Can i efile a 2011 tax return But see Other Employment, later. Can i efile a 2011 tax return Special Situations In the following two situations, your pay is from the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government and does not qualify for the foreign earned income exclusion. Can i efile a 2011 tax return U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return agency reimbursed by foreign country. Can i efile a 2011 tax return   If you are a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government employee paid by a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return agency to perform services in a foreign country, your pay is from the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. Can i efile a 2011 tax return This is true even if the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return agency is reimbursed by the foreign government. Can i efile a 2011 tax return Employees of post exchanges, etc. Can i efile a 2011 tax return   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government, the earnings you receive are paid by the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government. Can i efile a 2011 tax return This is true whether they are paid from appropriated or nonappropriated funds. Can i efile a 2011 tax return These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. Can i efile a 2011 tax return Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. Can i efile a 2011 tax return Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. Can i efile a 2011 tax return In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizens or green card holders. Can i efile a 2011 tax return Consequently, if you are a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizen or green card holder, you will generally not be entitled to reduce your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return tax on your government pay. Can i efile a 2011 tax return If you are neither a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. Can i efile a 2011 tax return Review the treaty text carefully. Can i efile a 2011 tax return U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizens must always file Form 1040. Can i efile a 2011 tax return Non-U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. Can i efile a 2011 tax return If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. Can i efile a 2011 tax return Most income tax treaties contain an article providing relief from double taxation. Can i efile a 2011 tax return Many treaties contain special foreign tax credit rules for U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizens who are residents of a treaty country. Can i efile a 2011 tax return For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. Can i efile a 2011 tax return Allowances, Differentials, and Special Pay Most payments received by U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government civilian employees for working abroad, including pay differentials, are taxable. Can i efile a 2011 tax return However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. Can i efile a 2011 tax return The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Can i efile a 2011 tax return Pay differentials. Can i efile a 2011 tax return   Pay differentials you receive as financial incentives for employment abroad are taxable. Can i efile a 2011 tax return Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. Can i efile a 2011 tax return   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. Can i efile a 2011 tax return The area does not have to be a qualified hazardous duty area as discussed in Publication 3. Can i efile a 2011 tax return Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. Can i efile a 2011 tax return Foreign areas allowances. Can i efile a 2011 tax return   Certain foreign areas allowances are tax free. Can i efile a 2011 tax return Your employer should not have included these allowances as wages on your Form W-2. Can i efile a 2011 tax return   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. Can i efile a 2011 tax return Title I, chapter 9, of the Foreign Service Act of 1980. Can i efile a 2011 tax return Section 4 of the Central Intelligence Agency Act of 1949, as amended. Can i efile a 2011 tax return Title II of the Overseas Differentials and Allowances Act. Can i efile a 2011 tax return Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. Can i efile a 2011 tax return These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. Can i efile a 2011 tax return Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. Can i efile a 2011 tax return Cost-of-living allowances. Can i efile a 2011 tax return   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. Can i efile a 2011 tax return The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. Can i efile a 2011 tax return Cost-of-living allowances are not included on your Form W-2. Can i efile a 2011 tax return Federal court employees. Can i efile a 2011 tax return   If you are a federal court employee, the preceding paragraph also applies to you. Can i efile a 2011 tax return The cost-of-living allowance must be granted by rules similar to regulations approved by the President. Can i efile a 2011 tax return American Institute in Taiwan. Can i efile a 2011 tax return   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government. Can i efile a 2011 tax return Federal reemployment payments after serving with an international organization. Can i efile a 2011 tax return   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. Can i efile a 2011 tax return These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. Can i efile a 2011 tax return Allowances or reimbursements for travel and transportation expenses. Can i efile a 2011 tax return   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. Can i efile a 2011 tax return Lodging furnished to a principal representative of the United States. Can i efile a 2011 tax return   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. Can i efile a 2011 tax return However, amounts paid by the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return government for your usual costs of operating and maintaining your household are taxable. Can i efile a 2011 tax return If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. Can i efile a 2011 tax return Peace Corps. Can i efile a 2011 tax return   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. Can i efile a 2011 tax return Taxable allowances. Can i efile a 2011 tax return   The following allowances must be included on your Form W-2 and reported on your return as wages. Can i efile a 2011 tax return If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. Can i efile a 2011 tax return The part of living allowances designated by the Director of the Peace Corps as basic compensation. Can i efile a 2011 tax return This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. Can i efile a 2011 tax return Leave allowances. Can i efile a 2011 tax return Readjustment allowances or “termination payments. Can i efile a 2011 tax return ” Taxable allowances are considered received by you when credited to your account. Can i efile a 2011 tax return Example. Can i efile a 2011 tax return Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. Can i efile a 2011 tax return Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. Can i efile a 2011 tax return Nontaxable allowances. Can i efile a 2011 tax return   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. Can i efile a 2011 tax return These allowances should not be included on your Form W-2. Can i efile a 2011 tax return These allowances are tax free whether paid by the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government or the foreign country in which you are stationed. Can i efile a 2011 tax return Other Income Other employment. Can i efile a 2011 tax return   If, in addition to your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. Can i efile a 2011 tax return In addition, if your spouse is a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. Can i efile a 2011 tax return For more information, see Publication 54. Can i efile a 2011 tax return The tax treaty rules relating to income from personal services generally apply to income from private employment. Can i efile a 2011 tax return As discussed above, the saving clause applies to you if you are a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). Can i efile a 2011 tax return Sale of personal property. Can i efile a 2011 tax return   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return dollars, the excess of the amount received in U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return dollars over the cost or other basis of the property is a capital gain. Can i efile a 2011 tax return Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. Can i efile a 2011 tax return However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. Can i efile a 2011 tax return Sale of your home. Can i efile a 2011 tax return   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. Can i efile a 2011 tax return Losses are not deductible. Can i efile a 2011 tax return   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). Can i efile a 2011 tax return Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. Can i efile a 2011 tax return   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. Can i efile a 2011 tax return   For detailed information on selling your home, see Publication 523. Can i efile a 2011 tax return Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. Can i efile a 2011 tax return Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. Can i efile a 2011 tax return These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. Can i efile a 2011 tax return Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. Can i efile a 2011 tax return Your tax home is not limited to the Embassy, consulate, or duty station. Can i efile a 2011 tax return It includes the entire city or general area in which your principal place of employment is located. Can i efile a 2011 tax return Traveling away from home. Can i efile a 2011 tax return   You are traveling away from home if you meet both of the following requirements. Can i efile a 2011 tax return Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. Can i efile a 2011 tax return You need to get sleep or rest to meet the demands of your work while away from home. Can i efile a 2011 tax return This requirement is not satisfied by merely napping in your car. Can i efile a 2011 tax return You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Can i efile a 2011 tax return Temporary assignment. Can i efile a 2011 tax return   If your assignment or job away from your tax home is temporary, your tax home does not change. Can i efile a 2011 tax return You are considered to be away from home for the whole period, and your travel expenses are deductible. Can i efile a 2011 tax return Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Can i efile a 2011 tax return   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Can i efile a 2011 tax return An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. Can i efile a 2011 tax return   You must determine whether your assignment is temporary or indefinite when you start work. Can i efile a 2011 tax return If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Can i efile a 2011 tax return Employment that is initially temporary may become indefinite due to changed circumstances. Can i efile a 2011 tax return A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Can i efile a 2011 tax return Exception for federal crime investigations or prosecutions. Can i efile a 2011 tax return   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. Can i efile a 2011 tax return This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. Can i efile a 2011 tax return Limit on meals and entertainment. Can i efile a 2011 tax return   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. Can i efile a 2011 tax return However, the limit does not apply to expenses reimbursed under a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government expense allowance arrangement. Can i efile a 2011 tax return Individuals subject to hours of service limits. Can i efile a 2011 tax return   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. Can i efile a 2011 tax return   Individuals subject to the Department of Transportation's “hours of service” limits include the following. Can i efile a 2011 tax return Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Can i efile a 2011 tax return Interstate truck operators and bus drivers who are under Department of Transportation regulations. Can i efile a 2011 tax return Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Can i efile a 2011 tax return Certain merchant mariners who are under Coast Guard regulations. Can i efile a 2011 tax return Primary purpose of trip must be for business. Can i efile a 2011 tax return   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. Can i efile a 2011 tax return However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. Can i efile a 2011 tax return   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. Can i efile a 2011 tax return This applies even if you engage in business activities while there. Can i efile a 2011 tax return However, you can deduct any expenses while at your destination that are directly related to your business. Can i efile a 2011 tax return Expenses paid for others. Can i efile a 2011 tax return   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. Can i efile a 2011 tax return Home leave. Can i efile a 2011 tax return   The Foreign Service Act requires U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. Can i efile a 2011 tax return This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. Can i efile a 2011 tax return   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. Can i efile a 2011 tax return You must be able to verify these amounts in order to claim them. Can i efile a 2011 tax return Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. Can i efile a 2011 tax return More information. Can i efile a 2011 tax return   See chapter 1 of Publication 463 for more information on travel expenses. Can i efile a 2011 tax return Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. Can i efile a 2011 tax return Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. Can i efile a 2011 tax return They do not include expenses you have when traveling away from home overnight. Can i efile a 2011 tax return Those expenses are deductible as travel expenses and are discussed earlier. Can i efile a 2011 tax return Commuting. Can i efile a 2011 tax return   You cannot deduct your transportation costs of going between your home and your regular business location. Can i efile a 2011 tax return These costs are personal commuting expenses. Can i efile a 2011 tax return   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. Can i efile a 2011 tax return   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. Can i efile a 2011 tax return More information. Can i efile a 2011 tax return   For more information on transportation expenses, see chapter 4 of Publication 463. Can i efile a 2011 tax return Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. Can i efile a 2011 tax return Membership dues. Can i efile a 2011 tax return   You can deduct membership dues you pay to professional societies that relate to your business or profession. Can i efile a 2011 tax return Subscriptions. Can i efile a 2011 tax return   You can deduct subscriptions to professional publications that relate to your business or profession. Can i efile a 2011 tax return Educational expenses. Can i efile a 2011 tax return   Generally, educational expenses are considered to be personal expenses and are not deductible. Can i efile a 2011 tax return However, under some circumstances, educational expenses are deductible as business expenses. Can i efile a 2011 tax return   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. Can i efile a 2011 tax return   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. Can i efile a 2011 tax return These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. Can i efile a 2011 tax return   See Publication 970, Tax Benefits for Education, for more information on educational expenses. Can i efile a 2011 tax return    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. Can i efile a 2011 tax return However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. Can i efile a 2011 tax return These benefits are explained in Publication 970. Can i efile a 2011 tax return Foreign service representation expenses. Can i efile a 2011 tax return   If you are an employee of the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. Can i efile a 2011 tax return If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. Can i efile a 2011 tax return You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. Can i efile a 2011 tax return The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. Can i efile a 2011 tax return    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. Can i efile a 2011 tax return These rules are explained in Publication 463. Can i efile a 2011 tax return Representation expenses. Can i efile a 2011 tax return   These are expenses that further the interest of the United States abroad. Can i efile a 2011 tax return They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. Can i efile a 2011 tax return They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. Can i efile a 2011 tax return   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. Can i efile a 2011 tax return These regulations are available on the Internet at www. Can i efile a 2011 tax return state. Can i efile a 2011 tax return gov/m/a/als. Can i efile a 2011 tax return Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. Can i efile a 2011 tax return ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. Can i efile a 2011 tax return Impairment-related work expenses. Can i efile a 2011 tax return   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. Can i efile a 2011 tax return Attendant care includes a reader for a blind person and a helper for a person with a physical disability. Can i efile a 2011 tax return These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). Can i efile a 2011 tax return They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. Can i efile a 2011 tax return Loss on conversion of U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return dollars into foreign currency. Can i efile a 2011 tax return   The conversion of U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. Can i efile a 2011 tax return Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. Can i efile a 2011 tax return For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). Can i efile a 2011 tax return The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. Can i efile a 2011 tax return You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. Can i efile a 2011 tax return For each trip away from home, the dates you left and returned and the number of days spent on business. Can i efile a 2011 tax return The destination or area of your travel, described by the name of the city, town, or similar designation. Can i efile a 2011 tax return The business reason for your travel or the business benefit gained or expected to be gained from your travel. Can i efile a 2011 tax return How to record your expenses. Can i efile a 2011 tax return   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. Can i efile a 2011 tax return They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. Can i efile a 2011 tax return You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. Can i efile a 2011 tax return   Each expense should be recorded separately in your records. Can i efile a 2011 tax return However, some items can be totaled in reasonable categories. Can i efile a 2011 tax return You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. Can i efile a 2011 tax return You may record tips separately or with the cost of the service. Can i efile a 2011 tax return    Documentary evidence generally is required to support all lodging expenses while traveling away from home. Can i efile a 2011 tax return It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. Can i efile a 2011 tax return Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. Can i efile a 2011 tax return It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. Can i efile a 2011 tax return    A canceled check by itself does not prove a business cost. Can i efile a 2011 tax return You must have other evidence to show that the check was used for a business purpose. Can i efile a 2011 tax return Your records must be timely. Can i efile a 2011 tax return   Record the elements for the expense in your account book or other record at or near the time of the expense. Can i efile a 2011 tax return A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. Can i efile a 2011 tax return Confidential information. Can i efile a 2011 tax return   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. Can i efile a 2011 tax return However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. Can i efile a 2011 tax return How To Report Business Expenses As a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. Can i efile a 2011 tax return If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. Can i efile a 2011 tax return However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. Can i efile a 2011 tax return If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. Can i efile a 2011 tax return Form 2106 or Form 2106-EZ. Can i efile a 2011 tax return   You must complete Form 2106 or 2106-EZ to deduct your expenses. Can i efile a 2011 tax return Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. Can i efile a 2011 tax return Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). Can i efile a 2011 tax return Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. Can i efile a 2011 tax return Form 2106-EZ. Can i efile a 2011 tax return   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. Can i efile a 2011 tax return You can use Form 2106-EZ if you meet both of the following conditions. Can i efile a 2011 tax return You are not reimbursed by your employer for any expenses. Can i efile a 2011 tax return (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. Can i efile a 2011 tax return ) If you claim car expenses, you use the standard mileage rate. Can i efile a 2011 tax return Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. Can i efile a 2011 tax return Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. Can i efile a 2011 tax return However, you cannot deduct any expenses for which you received a tax-free allowance as a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government employee. Can i efile a 2011 tax return To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. Can i efile a 2011 tax return Closely related to the start of work. Can i efile a 2011 tax return   The move must be closely related, both in time and in place, to the start of work at the new location. Can i efile a 2011 tax return In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. Can i efile a 2011 tax return   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. Can i efile a 2011 tax return A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. Can i efile a 2011 tax return Distance test. Can i efile a 2011 tax return   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. Can i efile a 2011 tax return If you did not have an old job location, your new job location must be at least 50 miles from your former home. Can i efile a 2011 tax return Time test. Can i efile a 2011 tax return   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. Can i efile a 2011 tax return Deductible moving expenses. Can i efile a 2011 tax return   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). Can i efile a 2011 tax return    The cost of your meals is not a deductible moving expense. Can i efile a 2011 tax return   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. Can i efile a 2011 tax return For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. Can i efile a 2011 tax return Expenses must be reasonable. Can i efile a 2011 tax return   You can deduct only those expenses that are reasonable for the circumstances of your move. Can i efile a 2011 tax return For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Can i efile a 2011 tax return Members of your household. Can i efile a 2011 tax return   A member of your household includes anyone who has both your former home and new home as his or her home. Can i efile a 2011 tax return It does not include a tenant or employee unless you can claim that person as a dependent. Can i efile a 2011 tax return Retirees. Can i efile a 2011 tax return   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. Can i efile a 2011 tax return You do not have to meet the time test described earlier. Can i efile a 2011 tax return Survivors. Can i efile a 2011 tax return   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. Can i efile a 2011 tax return The move must begin within 6 months after the decedent's death. Can i efile a 2011 tax return It must be from the decedent's former home outside the United States, and that home must also have been your home. Can i efile a 2011 tax return You do not have to meet the time test described earlier. Can i efile a 2011 tax return How to report moving expenses. Can i efile a 2011 tax return   Use Form 3903 to report your moving expenses and figure your allowable deduction. Can i efile a 2011 tax return Claim the deduction as an adjustment to income on Form 1040. Can i efile a 2011 tax return (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. Can i efile a 2011 tax return ) Reimbursements. Can i efile a 2011 tax return   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. Can i efile a 2011 tax return You also must include in gross income reimbursements paid to you under a nonaccountable plan. Can i efile a 2011 tax return However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. Can i efile a 2011 tax return Additional information. Can i efile a 2011 tax return   For additional information about moving expenses, see Publication 521. Can i efile a 2011 tax return Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. Can i efile a 2011 tax return Contributions. Can i efile a 2011 tax return   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. Can i efile a 2011 tax return You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. Can i efile a 2011 tax return For more information, see Publication 526, Charitable Contributions. Can i efile a 2011 tax return Real estate tax and home mortgage interest. Can i efile a 2011 tax return   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. Can i efile a 2011 tax return You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. Can i efile a 2011 tax return Example. Can i efile a 2011 tax return Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. Can i efile a 2011 tax return During the year, Adam used the allowance, with other funds, to provide a home for himself. Can i efile a 2011 tax return His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). Can i efile a 2011 tax return Adam did not have any other expenses related to providing a home for himself. Can i efile a 2011 tax return Adam must reduce his deductions for home mortgage interest and real estate taxes. Can i efile a 2011 tax return He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). Can i efile a 2011 tax return The result is 3/4. Can i efile a 2011 tax return Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). Can i efile a 2011 tax return He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. Can i efile a 2011 tax return Exception to the reduction. Can i efile a 2011 tax return   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. Can i efile a 2011 tax return Required statement. Can i efile a 2011 tax return   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. Can i efile a 2011 tax return The statement must contain all of the following information. Can i efile a 2011 tax return The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. Can i efile a 2011 tax return The amount of otherwise deductible expenses attributable to each type of tax-free income. Can i efile a 2011 tax return The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. Can i efile a 2011 tax return An explanation of how you determined the amounts not directly attributable to each type of tax-free income. Can i efile a 2011 tax return   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. Can i efile a 2011 tax return Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return income tax liability or deduct them as an itemized deduction when figuring your taxable income. Can i efile a 2011 tax return Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. Can i efile a 2011 tax return Foreign tax credit. Can i efile a 2011 tax return   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. Can i efile a 2011 tax return If you choose to figure a credit against your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return income tax return. Can i efile a 2011 tax return    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. Can i efile a 2011 tax return If all your foreign income is exempt from U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return tax, you will not be able to claim a foreign tax credit. Can i efile a 2011 tax return   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. Can i efile a 2011 tax return Exemption from limit. Can i efile a 2011 tax return   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. Can i efile a 2011 tax return Your only foreign income is passive income, such as interest, dividends, and royalties. Can i efile a 2011 tax return The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). Can i efile a 2011 tax return The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. Can i efile a 2011 tax return If you make the election, you can claim a foreign tax credit without filing Form 1116. Can i efile a 2011 tax return However, you cannot carry back or carry over any unused foreign tax to or from this year. Can i efile a 2011 tax return See the instructions for the appropriate line in the Tax and Credits section of Form 1040. Can i efile a 2011 tax return Foreign tax deduction. Can i efile a 2011 tax return   If you choose to deduct all foreign income taxes on your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return income tax return, itemize the deduction on Schedule A (Form 1040). Can i efile a 2011 tax return You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. Can i efile a 2011 tax return Example. Can i efile a 2011 tax return Dennis and Christina are married and live and work in Country X. Can i efile a 2011 tax return Dennis works for the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government and Christina is employed by a private company. Can i efile a 2011 tax return They pay income tax to Country X on Christina's income only. Can i efile a 2011 tax return Dennis and Christina file a joint tax return and exclude all of Christina's income. Can i efile a 2011 tax return They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. Can i efile a 2011 tax return Deduction for other foreign taxes. Can i efile a 2011 tax return   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. Can i efile a 2011 tax return You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. Can i efile a 2011 tax return   You can deduct real property taxes you pay that are imposed on you by a foreign country. Can i efile a 2011 tax return You take this deduction on Schedule A (Form 1040). Can i efile a 2011 tax return You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. Can i efile a 2011 tax return More information. Can i efile a 2011 tax return   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. Can i efile a 2011 tax return Local (Foreign) Tax Return As a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. Can i efile a 2011 tax return Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. Can i efile a 2011 tax return Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. Can i efile a 2011 tax return Review the treaty text carefully to determine whether your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Government remuneration is taxable in the host country. Can i efile a 2011 tax return You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). Can i efile a 2011 tax return If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. Can i efile a 2011 tax return If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. Can i efile a 2011 tax return Most income tax treaties contain an article providing relief from double taxation. Can i efile a 2011 tax return Many treaties contain special foreign tax credit rules for U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return citizens who are residents of a treaty country. Can i efile a 2011 tax return For more information about the foreign tax credit, see Foreign Taxes, earlier. Can i efile a 2011 tax return Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. Can i efile a 2011 tax return For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. Can i efile a 2011 tax return Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. Can i efile a 2011 tax return Check with the appropriate U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Embassy for more information. Can i efile a 2011 tax return Double Withholding If your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return income tax return on this income. Can i efile a 2011 tax return Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. Can i efile a 2011 tax return How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Can i efile a 2011 tax return By selecting the method that is best for you, you will have quick and easy access to tax help. Can i efile a 2011 tax return Free help with your tax return. Can i efile a 2011 tax return   Free help in preparing your return is available nationwide from IRS-certified volunteers. Can i efile a 2011 tax return The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. Can i efile a 2011 tax return The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Can i efile a 2011 tax return Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Can i efile a 2011 tax return Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Can i efile a 2011 tax return To find the nearest VITA or TCE site, visit IRS. Can i efile a 2011 tax return gov or call 1-800-906-9887 or 1-800-829-1040. Can i efile a 2011 tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Can i efile a 2011 tax return To find the nearest AARP Tax-Aide site, visit AARP's website at www. Can i efile a 2011 tax return aarp. Can i efile a 2011 tax return org/money/taxaide or call 1-888-227-7669. Can i efile a 2011 tax return   For more information on these programs, go to IRS. Can i efile a 2011 tax return gov and enter “VITA” in the search box. Can i efile a 2011 tax return Internet. Can i efile a 2011 tax return You can access the IRS website at IRS. Can i efile a 2011 tax return gov 24 hours a day, 7 days a week to: E-file your return. Can i efile a 2011 tax return Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Can i efile a 2011 tax return Check the status of your 2012 refund. Can i efile a 2011 tax return Go to IRS. Can i efile a 2011 tax return gov and click on Where’s My Refund. Can i efile a 2011 tax return Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Can i efile a 2011 tax return If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Can i efile a 2011 tax return Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Can i efile a 2011 tax return Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. Can i efile a 2011 tax return Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Can i efile a 2011 tax return So in a change from previous filing seasons, you won't get an estimated refund date right away. Can i efile a 2011 tax return Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Can i efile a 2011 tax return You can obtain a free transcript online at IRS. Can i efile a 2011 tax return gov by clicking on Order a Return or Account Transcript under “Tools. Can i efile a 2011 tax return ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. Can i efile a 2011 tax return You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. Can i efile a 2011 tax return Download forms, including talking tax forms, instructions, and publications. Can i efile a 2011 tax return Order IRS products. Can i efile a 2011 tax return Research your tax questions. Can i efile a 2011 tax return Search publications by topic or keyword. Can i efile a 2011 tax return Use the Internal Revenue Code, regulations, or other official guidance. Can i efile a 2011 tax return View Internal Revenue Bulletins (IRBs) published in the last few years. Can i efile a 2011 tax return Figure your withholding allowances using the IRS Withholding Calculator at www. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov/individuals. Can i efile a 2011 tax return Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. Can i efile a 2011 tax return gov by typing Alternative Minimum Tax Assistant in the search box. Can i efile a 2011 tax return Sign up to receive local and national tax news by email. Can i efile a 2011 tax return Get information on starting and operating a small business. Can i efile a 2011 tax return Phone. Can i efile a 2011 tax return Many services are available by phone. Can i efile a 2011 tax return   Ordering forms, instructions, and publications. Can i efile a 2011 tax return Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). Can i efile a 2011 tax return You should receive your order within 10 days. Can i efile a 2011 tax return Asking tax questions. Can i efile a 2011 tax return Call the IRS with your tax questions at 1-800-829-1040. Can i efile a 2011 tax return Solving problems. Can i efile a 2011 tax return You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). Can i efile a 2011 tax return An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Can i efile a 2011 tax return Call your local Taxpayer Assistance Center for an appointment. Can i efile a 2011 tax return To find the number, go to www. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Can i efile a 2011 tax return TTY/TDD equipment. Can i efile a 2011 tax return If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Can i efile a 2011 tax return The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. Can i efile a 2011 tax return These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Can i efile a 2011 tax return gsa. Can i efile a 2011 tax return gov/fedrelay. Can i efile a 2011 tax return TeleTax topics. Can i efile a 2011 tax return Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Can i efile a 2011 tax return Checking the status of your 2012 refund. Can i efile a 2011 tax return To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). Can i efile a 2011 tax return Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Can i efile a 2011 tax return If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Can i efile a 2011 tax return Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Can i efile a 2011 tax return Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Can i efile a 2011 tax return Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Can i efile a 2011 tax return Outside the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return If you are outside the United States, taxpayer assistance is available at the following U. Can i efile a 2011 tax return S Embassies or consulate. Can i efile a 2011 tax return Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. Can i efile a 2011 tax return If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). Can i efile a 2011 tax return If you are in a U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Virgin Islands) and have a tax question, you can call 1-800-829-1040. Can i efile a 2011 tax return Evaluating the quality of our telephone services. Can i efile a 2011 tax return To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Can i efile a 2011 tax return One method is for a second IRS representative to listen in on or record random telephone calls. Can i efile a 2011 tax return Another is to ask some callers to complete a short survey at the end of the call. Can i efile a 2011 tax return Walk-in. Can i efile a 2011 tax return Some products and services are available on a walk-in basis. Can i efile a 2011 tax return   Products. Can i efile a 2011 tax return You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Can i efile a 2011 tax return Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Can i efile a 2011 tax return Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Can i efile a 2011 tax return Services. Can i efile a 2011 tax return You can walk in to your local TAC most business days for personal, face-to-face tax help. Can i efile a 2011 tax return An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Can i efile a 2011 tax return If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Can i efile a 2011 tax return No appointment is necessary—just walk in. Can i efile a 2011 tax return Before visiting, check www. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov/localcontacts for hours of operation and services provided. Can i efile a 2011 tax return If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. Can i efile a 2011 tax return You can leave a message and a representative will call you back within 2 business days. Can i efile a 2011 tax return All other issues will be handled without an appointment. Can i efile a 2011 tax return To call your local TAC, go to  www. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Can i efile a 2011 tax return Outside the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Embassies and consulates. Can i efile a 2011 tax return Mail. Can i efile a 2011 tax return You can send your order for forms, instructions, and publications to the address below. Can i efile a 2011 tax return You should receive a response within 10 days after your request is received. Can i efile a 2011 tax return  Internal Revenue Service 1201 N. Can i efile a 2011 tax return Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return If you are outside the United States, you can get tax assistance by writing to the address below. Can i efile a 2011 tax return  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. Can i efile a 2011 tax return   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Can i efile a 2011 tax return Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Can i efile a 2011 tax return TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Can i efile a 2011 tax return Remember, the worst thing you can do is nothing at all. Can i efile a 2011 tax return   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Can i efile a 2011 tax return You face (or your business is facing) an immediate threat of adverse action. Can i efile a 2011 tax return You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Can i efile a 2011 tax return   If you qualify for help, they will do everything they can to get your problem resolved. Can i efile a 2011 tax return You will be assigned to one advocate who will be with you at every turn. Can i efile a 2011 tax return TAS has offices in every state, the District of Columbia, and Puerto Rico. Can i efile a 2011 tax return Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. Can i efile a 2011 tax return And its services are always free. Can i efile a 2011 tax return   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Can i efile a 2011 tax return The TAS tax toolkit at www. Can i efile a 2011 tax return TaxpayerAdvocate. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov can help you understand these rights. Can i efile a 2011 tax return   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov/advocate. Can i efile a 2011 tax return You can also call the toll-free number at 1-877-777-4778. Can i efile a 2011 tax return Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. Can i efile a 2011 tax return These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Can i efile a 2011 tax return gsa. Can i efile a 2011 tax return gov/fedrelay. Can i efile a 2011 tax return   TAS also handles large-scale or systemic problems that affect many taxpayers. Can i efile a 2011 tax return If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov/advocate. Can i efile a 2011 tax return    Outside the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. Can i efile a 2011 tax return You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. Can i efile a 2011 tax return R. Can i efile a 2011 tax return 00968-8000 Low Income Taxpayer Clinics (LITCs). Can i efile a 2011 tax return   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Can i efile a 2011 tax return Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Can i efile a 2011 tax return These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Can i efile a 2011 tax return Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Can i efile a 2011 tax return For more information and to find a clinic near you, see the LITC page on www. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Can i efile a 2011 tax return This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. Can i efile a 2011 tax return Free tax services. Can i efile a 2011 tax return   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Can i efile a 2011 tax return Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Can i efile a 2011 tax return The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Can i efile a 2011 tax return The majority of the information and services listed in this publication are available to you free of charge. Can i efile a 2011 tax return If there is a fee associated with a resource or service, it is listed in the publication. Can i efile a 2011 tax return   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Can i efile a 2011 tax return DVD for tax products. Can i efile a 2011 tax return You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Can i efile a 2011 tax return Prior-year forms, instructions, and publications. Can i efile a 2011 tax return Tax Map: an electronic research tool and finding aid. Can i efile a 2011 tax return Tax law frequently asked questions. Can i efile a 2011 tax return Tax Topics from the IRS telephone response system. Can i efile a 2011 tax return Internal Revenue Code—Title 26 of the U. Can i efile a 2011 tax return S. Can i efile a 2011 tax return Code. Can i efile a 2011 tax return Links to other Internet-based tax research materials. Can i efile a 2011 tax return Fill-in, print, and save features for most tax forms. Can i efile a 2011 tax return Internal Revenue Bulletins. Can i efile a 2011 tax return Toll-free and email technical support. Can i efile a 2011 tax return Two releases during the year. Can i efile a 2011 tax return  – The first release will ship the beginning of January 2013. Can i efile a 2011 tax return  – The final release will ship the beginning of March 2013. Can i efile a 2011 tax return Purchase the DVD from National Technical Information Service (NTIS) at www. Can i efile a 2011 tax return irs. Can i efile a 2011 tax return gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Can i efile a 2011 tax return Prev  Up  Next   Home   More Online Publications
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The Can I Efile A 2011 Tax Return

Can i efile a 2011 tax return Internal Revenue Bulletin:  2013-7  February 11, 2013  Rev. Can i efile a 2011 tax return Proc. Can i efile a 2011 tax return 2013-16 Table of Contents SECTION 1. Can i efile a 2011 tax return PURPOSE SECTION 2. Can i efile a 2011 tax return BACKGROUND—HAMP AND THE HAMP PRINCIPAL REDUCTION ALTERNATIVE SECTION 3. Can i efile a 2011 tax return BACKGROUND—APPLICABLE PROVISIONS OF LAW SECTION 4. Can i efile a 2011 tax return FEDERAL INCOME TAX TREATMENT SECTION 5. Can i efile a 2011 tax return INFORMATION-REPORTING OBLIGATIONS SECTION 6. Can i efile a 2011 tax return HAMP-PRA BORROWERS’ REPORTING OF DISCHARGES OF INDEBTEDNESS UNDER HAMP-PRA SECTION 7. Can i efile a 2011 tax return PENALTY RELIEF FOR 2012 SECTION 8. Can i efile a 2011 tax return SCOPE AND EFFECTIVE DATE SECTION 9. Can i efile a 2011 tax return DRAFTING INFORMATION SECTION 1. Can i efile a 2011 tax return PURPOSE This revenue procedure provides guidance to mortgage loan holders, loan servicers, and borrowers who are participating in the Department of the Treasury’s (Treasury) and Department of Housing and Urban Development’s (HUD) Home Affordable Modification Program® (HAMP®). Can i efile a 2011 tax return Under HAMP, a borrower may be eligible for principal reduction of the outstanding balance of a qualifying mortgage pursuant to the program’s Principal Reduction AlternativeSM (PRA). Can i efile a 2011 tax return In appropriate cases, HAMP has been offering the PRA as part of a HAMP loan modification since the last quarter of 2010. Can i efile a 2011 tax return Current plans call for HAMP to continue accepting new borrowers through the end of 2013. Can i efile a 2011 tax return The Internal Revenue Service (Service) is providing this guidance to address the tax consequences for borrowers (HAMP-PRA borrowers) who are participating in the PRA and the reporting obligations for participating mortgage loan holders and servicers. Can i efile a 2011 tax return SECTION 2. Can i efile a 2011 tax return BACKGROUND—HAMP AND THE HAMP PRINCIPAL REDUCTION ALTERNATIVE . Can i efile a 2011 tax return 01 To help distressed borrowers lower their monthly mortgage payments, Treasury and HUD established HAMP for mortgage loans that are not owned or guaranteed by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). Can i efile a 2011 tax return A description of the program can be found at www. Can i efile a 2011 tax return makinghomeaffordable. Can i efile a 2011 tax return gov. Can i efile a 2011 tax return . Can i efile a 2011 tax return 02 Under HAMP, a participating loan servicer, acting on behalf of the mortgage loan holder, must consider a sequence of modification steps for each eligible borrower’s mortgage loan until the borrower’s monthly payment is reduced to a monthly payment amount determined under the HAMP guidelines. Can i efile a 2011 tax return These steps include a reduction in the mortgage loan’s interest rate, an extension of the mortgage loan’s term, and a reduction in the mortgage loan’s principal balance. Can i efile a 2011 tax return . Can i efile a 2011 tax return 03 In some cases, the unpaid principal balance of the modified mortgage loan is divided into (1) an amount that bears stated interest and that is used to calculate the borrower’s new monthly mortgage payment (the “Non-forbearance Portion”), and (2) a forbearance amount, which does not bear stated interest and on which periodic payments of stated principal are not required. Can i efile a 2011 tax return The stated principal of the forbearance amount is due upon the earliest of the borrower’s transfer of the property, payoff of the balance on the Non-forbearance Portion of the mortgage loan, or maturity of the mortgage loan. Can i efile a 2011 tax return However, as noted in section 2. Can i efile a 2011 tax return 06 of this revenue procedure, a HAMP-PRA borrower sometimes may not have to pay all or a portion of the forbearance amount. Can i efile a 2011 tax return (The forbearance amount associated with a HAMP-PRA principal reduction is called the “PRA Forbearance Amount. Can i efile a 2011 tax return ”) . Can i efile a 2011 tax return 04 If a mortgage loan is being considered for a HAMP modification and the amount owed on the mortgage loan is greater than 115 percent of the value of the property, then the servicer must consider whether principal reduction under PRA should be used as part of the HAMP modification. Can i efile a 2011 tax return . Can i efile a 2011 tax return 05 The first step toward a HAMP modification is a trial period plan, in which the borrower’s monthly mortgage payment is set at a monthly payment amount determined under the HAMP guidelines. Can i efile a 2011 tax return The trial period plan effective date is the due date for the first of the reduced payments that are to be made under the trial period plan. Can i efile a 2011 tax return (It is the first day of either the first or the second month after the servicer transmits the trial period notice to the borrower. Can i efile a 2011 tax return ) In general, the trial period is three months, and, during this period, the borrower must satisfy certain conditions before the changes to the terms of the mortgage loan become permanent (the “Trial Period Conditions”). Can i efile a 2011 tax return Specifically, depending on the borrower’s trial period payment history, the borrower’s compliance with HAMP and servicer guidelines, and his or her satisfaction of all other Trial Period Conditions, the borrower will be offered a permanent modification of the terms of the mortgage loan, including monthly mortgage payments that are lower than those under the old mortgage loan. Can i efile a 2011 tax return Until the effective date of a permanent modification, the terms of the existing mortgage loan continue to apply. Can i efile a 2011 tax return . Can i efile a 2011 tax return 06 After the mortgage loan is permanently modified under HAMP, if the modified mortgage loan is in good standing on the first, second, or third annual anniversary of the trial period plan effective date (the “Three-year Period”), the servicer must reduce the unpaid principal balance of the mortgage loan on the respective anniversary date by one-third of the initial PRA Forbearance Amount. Can i efile a 2011 tax return (The servicer allocates the entire reduction to the remaining PRA Forbearance Amount. Can i efile a 2011 tax return ) In general, if a HAMP-PRA borrower’s mortgage loan is in good standing and if the HAMP-PRA borrower pays in full the Non-forbearance Portion of the mortgage loan prior to the reduction of the entire PRA Forbearance Amount, the servicer must reduce the remaining outstanding principal balance of the mortgage loan by the remaining PRA Forbearance Amount. Can i efile a 2011 tax return . Can i efile a 2011 tax return 07 In connection with every HAMP loan modification, the HAMP program administrator (acting on behalf of the federal government) provides incentives to the borrower, the servicer, and the investor (that is, the holder of the mortgage loan). Can i efile a 2011 tax return If a HAMP loan modification includes a PRA principal reduction, the HAMP program administrator makes additional incentive payments to the investor. Can i efile a 2011 tax return These additional incentives are called “PRA Investor Incentive Payments” and are generally spread over three years. Can i efile a 2011 tax return The size of the PRA Investor Incentive Payments depends on the amount of principal reduced, the loan-to-value ratio at the time of the HAMP modification, and the loan’s payment history before the modification. Can i efile a 2011 tax return The PRA Investor Incentive Payments range from 18 to 63 percent of the principal amounts reduced. Can i efile a 2011 tax return For purposes of this revenue procedure, the excess of the initial PRA Forbearance Amount of a mortgage loan over the aggregate PRA Investor Incentive Payments scheduled to be paid with respect to that loan is called the “PRA Adjusted Forbearance Amount. Can i efile a 2011 tax return ” . Can i efile a 2011 tax return 08 A PRA Investor Incentive Payment is earned by the investor on each date on which the servicer reduces the unpaid principal balance of the mortgage loan by a portion of the PRA Forbearance Amount (generally, on the first three annual anniversaries of the trial period plan effective date). Can i efile a 2011 tax return . Can i efile a 2011 tax return 09 If a HAMP-PRA borrower’s early payment in full of the Non-forbearance Portion of the mortgage loan accelerates the reduction of the remaining PRA Forbearance Amount (described above in section 2. Can i efile a 2011 tax return 06 of this revenue procedure), the remaining PRA Investor Incentive Payments from the HAMP program administrator are also accelerated. Can i efile a 2011 tax return . Can i efile a 2011 tax return 10 If, prior to completion of the Three-year Period, a mortgage loan ceases to be in good standing because of the HAMP-PRA borrower’s payment history, then the remaining PRA Forbearance Amount is not further reduced and is due when the HAMP-PRA borrower transfers the property, the HAMP-PRA borrower refinances, or otherwise pays off the Non-forbearance Portion of the mortgage loan, or the mortgage loan matures. Can i efile a 2011 tax return SECTION 3. Can i efile a 2011 tax return BACKGROUND—APPLICABLE PROVISIONS OF LAW . Can i efile a 2011 tax return 01 Under § 61 of the Internal Revenue Code, except as otherwise provided in subtitle A, gross income means all income from whatever source derived, including income from discharge of indebtedness. Can i efile a 2011 tax return See § 61(a)(12). Can i efile a 2011 tax return . Can i efile a 2011 tax return 02 Under § 1. Can i efile a 2011 tax return 1001-3 of the Income Tax Regulations, if a debt instrument undergoes a significant modification, then the modification results in an exchange of the original debt instrument for the modified debt instrument. Can i efile a 2011 tax return In general, an agreement to change a term of a debt instrument is a modification at the time the borrower and holder enter into the agreement, even if the change in term is not immediately effective. Can i efile a 2011 tax return However, if the change is conditioned on reasonable closing conditions, a modification occurs on the closing date of the agreement. Can i efile a 2011 tax return See § 1. Can i efile a 2011 tax return 1001-3(c)(6). Can i efile a 2011 tax return . Can i efile a 2011 tax return 03 Under § 108(e)(10), in the case of a debt-for-debt exchange (including a deemed exchange under § 1. Can i efile a 2011 tax return 1001-3), the borrower is treated as having satisfied the original debt instrument with an amount of money equal to the issue price of the new debt instrument. Can i efile a 2011 tax return If the amount of debt satisfied in this manner exceeds that issue price, the borrower realizes discharge of indebtedness income on the exchange. Can i efile a 2011 tax return See also § 1. Can i efile a 2011 tax return 61-12(c). Can i efile a 2011 tax return . Can i efile a 2011 tax return 04 The issue price of a non-publicly traded debt instrument issued for non-publicly traded property generally reflects the amount of principal that the borrower is required to pay to the holder of the instrument. Can i efile a 2011 tax return If a borrower has the ability to avoid paying certain amounts (including principal) without violating the terms of the instrument, the payment schedule for the instrument is generally determined based on an assumption that the borrower will avoid any requirement to make those payments. Can i efile a 2011 tax return See, e. Can i efile a 2011 tax return g. Can i efile a 2011 tax return , §§ 1. Can i efile a 2011 tax return 1272-1(c)(5) and 1. Can i efile a 2011 tax return 1274-2(d). Can i efile a 2011 tax return . Can i efile a 2011 tax return 05 Under § 108(a), gross income does not include any amount that but for § 108(a) would be includible in gross income by reason of the discharge (in whole or in part) of a taxpayer’s indebtedness if (1) the indebtedness discharged is qualified principal residence indebtedness that is discharged before January 1, 2014, or (2) the discharge occurs when the taxpayer is insolvent. Can i efile a 2011 tax return Section 108(a)(1)(E) and 108(a)(1)(B). Can i efile a 2011 tax return (Although § 108 contains other exclusions as well, this revenue procedure focuses on these two exclusions because they are the most likely to apply to the greatest number of HAMP-PRA borrowers. Can i efile a 2011 tax return ) . Can i efile a 2011 tax return 06 Under §§ 108(h) and 163(h)(3)(B), qualified principal residence indebtedness is any indebtedness that is incurred by a borrower to buy, build, or substantially improve the borrower’s principal residence and is secured by that residence. Can i efile a 2011 tax return . Can i efile a 2011 tax return 07 Qualified principal residence indebtedness also includes a loan secured by the borrower’s principal residence that refinances qualified principal residence indebtedness, but only to the extent of the amount of the refinanced indebtedness. Can i efile a 2011 tax return See §§ 108(h) and 163(h)(3)(B)(i). Can i efile a 2011 tax return . Can i efile a 2011 tax return 08 The maximum amount of discharged indebtedness that a borrower may exclude from gross income under the qualified principal residence indebtedness exclusion is $2,000,000 ($1,000,000 for a married individual filing a separate return). Can i efile a 2011 tax return Under § 108(h)(4), if only part of the discharged indebtedness is qualified principal residence indebtedness, then the exclusion applies only to the amount of the discharged indebtedness that exceeds the amount of the loan (determined immediately before the discharge) that is not qualified principal residence indebtedness. Can i efile a 2011 tax return . Can i efile a 2011 tax return 09 Under § 108(a)(3), the insolvency exclusion applies to the lesser of the amount of the debt discharged or the amount by which the taxpayer is insolvent immediately before the discharge. Can i efile a 2011 tax return . Can i efile a 2011 tax return 10 Section 108(d)(3) provides that, for purposes of the insolvency exclusion, a taxpayer is insolvent to the extent that the taxpayer’s total liabilities exceed the fair market value of all of the taxpayer’s assets immediately before the discharge of indebtedness. Can i efile a 2011 tax return Under § 108(a)(2)(C), the qualified principal residence indebtedness exclusion takes precedence over the insolvency exclusion when both exclusions apply to discharged indebtedness, unless the taxpayer elects to apply the insolvency exclusion. Can i efile a 2011 tax return . Can i efile a 2011 tax return 11 If an amount is excluded from gross income as a discharge of qualified principal residence indebtedness, the taxpayer must reduce the basis of the taxpayer’s principal residence. Can i efile a 2011 tax return See § 108(h)(1). Can i efile a 2011 tax return If a discharged amount is excluded from gross income because the taxpayer was insolvent when the discharge occurred, the taxpayer must reduce certain tax attributes (possibly including basis). Can i efile a 2011 tax return See § 108(b). Can i efile a 2011 tax return For further discussion of income from the discharge of indebtedness, the qualified principal residence indebtedness exclusion, the insolvency exclusion, and other exclusions from gross income that may apply, see Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals). Can i efile a 2011 tax return . Can i efile a 2011 tax return 12 Taxpayers who exclude any discharged amounts from gross income report both the exclusion and the resulting reduction in basis or other tax attributes on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Can i efile a 2011 tax return See Form 982 instructions and Publication 4681. Can i efile a 2011 tax return This form is to be filed with the tax return for the taxable year in which the amount is discharged but is excluded from gross income. Can i efile a 2011 tax return . Can i efile a 2011 tax return 13 Governmental payments made to or on behalf of individuals or other persons are included within the broad definition of gross income under § 61 unless an exception applies. Can i efile a 2011 tax return See Notice 2003-18, 2003-1 C. Can i efile a 2011 tax return B. Can i efile a 2011 tax return 699, and Rev. Can i efile a 2011 tax return Rul. Can i efile a 2011 tax return 79-356, 1979-2 C. Can i efile a 2011 tax return B. Can i efile a 2011 tax return 28. Can i efile a 2011 tax return However, if disbursements are made by a governmental unit to individuals in the interest of the general welfare (that is, are generally based on individual or family need) and the disbursements do not represent compensation for services, then the amounts disbursed are excluded from the income of the recipient (general welfare exclusion). Can i efile a 2011 tax return See Rev. Can i efile a 2011 tax return Rul. Can i efile a 2011 tax return 2005-46, 2005-2 C. Can i efile a 2011 tax return B. Can i efile a 2011 tax return 120, and Rev. Can i efile a 2011 tax return Rul. Can i efile a 2011 tax return 75-246, 1975-1 C. Can i efile a 2011 tax return B. Can i efile a 2011 tax return 24. Can i efile a 2011 tax return . Can i efile a 2011 tax return 14 Under § 451 and § 1. Can i efile a 2011 tax return 451-1(a), a taxpayer that uses the cash receipts and disbursements method of accounting includes income in gross income when the taxpayer actually or constructively receives the income. Can i efile a 2011 tax return . Can i efile a 2011 tax return 15 Section 6041 requires every person engaged in a trade or business (including the United States and its agencies) to (1) file an information return (Form 1099-MISC, Miscellaneous Income, is used for this purpose) for each calendar year in which the person makes, in the course of its trade or business, payments to another person of fixed or determinable income aggregating $600 or more, and (2) furnish a copy of the information return to that other person. Can i efile a 2011 tax return See § 6041(a) and (d) and § 1. Can i efile a 2011 tax return 6041-1(a)(1) and (b). Can i efile a 2011 tax return . Can i efile a 2011 tax return 16 Section 6050P requires applicable entities (including the United States and its agencies, financial entities, and any organization a significant trade or business of which is the lending of money) to (1) file an information return (Form 1099-C, Cancellation of Debt, is used for this purpose) for each calendar year in which it discharges indebtedness of another person of $600 or more, and (2) furnish a copy of the information return to that other person. Can i efile a 2011 tax return See § 6050P(a)-(c) and §§ 1. Can i efile a 2011 tax return 6050P-1(a) and 1. Can i efile a 2011 tax return 6050P-2(a) and (d). Can i efile a 2011 tax return . Can i efile a 2011 tax return 17 Section 6721 imposes penalties with respect to information returns required to be filed with the Service. Can i efile a 2011 tax return These penalties apply in the case of a failure to timely file an information return, a failure to include all required information on the return, or the inclusion of incorrect information on the return. Can i efile a 2011 tax return Section 6724(d)(1) includes Forms 1099-MISC and 1099-C in the term “information return. Can i efile a 2011 tax return ” . Can i efile a 2011 tax return 18 Section 6722 imposes penalties with respect to payee statements required to be furnished to payees. Can i efile a 2011 tax return These penalties apply in the case of a failure to timely furnish a payee statement, a failure to include all required information on the statement, or the inclusion of incorrect information on the payee statement. Can i efile a 2011 tax return Section 6724(d)(2) includes in the term “payee statement” copies of Forms 1099-MISC and 1099-C that are required to be furnished to taxpayers. Can i efile a 2011 tax return SECTION 4. Can i efile a 2011 tax return FEDERAL INCOME TAX TREATMENT . Can i efile a 2011 tax return 01 Because a HAMP modification with a PRA principal reduction is a significant modification, it results in a deemed debt-for-debt exchange in which the HAMP-PRA borrower satisfies the old mortgage loan by issuing a new one. Can i efile a 2011 tax return See § 1. Can i efile a 2011 tax return 1001-3. Can i efile a 2011 tax return At the time of the modification, therefore, under § 108 and this revenue procedure, the HAMP-PRA borrower realizes discharge of indebtedness income equal to any excess of the adjusted issue price of the old mortgage loan (which was satisfied in the deemed exchange) over the issue price of the new (post-modification) mortgage loan. Can i efile a 2011 tax return See also § 61(a)(12) and § 1. Can i efile a 2011 tax return 61-12(c). Can i efile a 2011 tax return . Can i efile a 2011 tax return 02 A HAMP-PRA borrower has the ability to avoid payment of the PRA Adjusted Forbearance Amount. Can i efile a 2011 tax return Because the HAMP-PRA borrower has this ability, that amount should not be taken into account in determining the issue price of the new mortgage loan. Can i efile a 2011 tax return Because the issue price of the new mortgage loan does not include the PRA Adjusted Forbearance Amount, the PRA Adjusted Forbearance Amount contributes to the excess of the adjusted issue price of the old mortgage loan (which was satisfied in the deemed exchange) over the issue price of the new mortgage loan. Can i efile a 2011 tax return . Can i efile a 2011 tax return 03 On the other hand, the investor has not given up its right to receive the remainder of the PRA Forbearance Amount, because the HAMP program administrator is expected to make those payments on the HAMP-PRA borrower’s behalf by making the PRA Investor Incentive Payments. Can i efile a 2011 tax return Because the remainder of the PRA Forbearance Amount is payable in this manner, that remainder is included in the issue price of the new mortgage loan. Can i efile a 2011 tax return . Can i efile a 2011 tax return 04 The Trial Period Conditions are reasonable closing conditions that must be satisfied before the changes to the terms of the mortgage loan become permanent. Can i efile a 2011 tax return Therefore, for purposes of § 1. Can i efile a 2011 tax return 1001-3, the date of the modification is the date of the permanent modification. Can i efile a 2011 tax return . Can i efile a 2011 tax return 05 Unless an exclusion applies, the HAMP-PRA borrower includes in gross income the discharge of indebtedness income described in section 4. Can i efile a 2011 tax return 01 of this revenue procedure for the taxable year in which the permanent modification occurs. Can i efile a 2011 tax return Under certain conditions, however, section 6 of this revenue procedure permits a borrower to report the discharge of indebtedness under HAMP-PRA over the Three-year Period. Can i efile a 2011 tax return The qualified principal residence indebtedness exclusion under § 108(a)(1)(E) and the insolvency exclusion under § 108(a)(1)(B) are two exclusions that may apply to the discharge. Can i efile a 2011 tax return . Can i efile a 2011 tax return 06 The PRA Investor Incentive Payment is treated as a payment on the mortgage loan by the HAMP program administrator on behalf of the HAMP-PRA borrower. Can i efile a 2011 tax return . Can i efile a 2011 tax return 07 To the extent that the HAMP-PRA borrower uses the property as the HAMP-PRA borrower’s principal residence or the property is occupied by the HAMP-PRA borrower’s legal dependent, parent, or grandparent without rent being charged or collected, the HAMP-PRA borrower excludes from his or her gross income under the general welfare exclusion the PRA Investor Incentive Payments that the HAMP program administrator makes to the investor in the mortgage loan. Can i efile a 2011 tax return This is consistent with Rev. Can i efile a 2011 tax return Rul. Can i efile a 2011 tax return 2009-19, 2009-28 I. Can i efile a 2011 tax return R. Can i efile a 2011 tax return B. Can i efile a 2011 tax return 111, which addressed the treatment of Pay-for-Performance Success Payments. Can i efile a 2011 tax return . Can i efile a 2011 tax return 08 To the extent that the HAMP-PRA borrower uses the property as a rental property or holds the property vacant and available for rent, the HAMP-PRA borrower includes PRA Investor Incentive Payments in gross income. Can i efile a 2011 tax return If the HAMP-PRA borrower uses the cash receipts and disbursements method of accounting, then the HAMP-PRA borrower includes a PRA Investor Incentive Payment in gross income in the taxable year in which it is applied as a payment on the HAMP-PRA borrower’s mortgage loan. Can i efile a 2011 tax return . Can i efile a 2011 tax return 09 As described in section 2. Can i efile a 2011 tax return 09 of this revenue procedure, if a HAMP-PRA borrower pays in full the Non-forbearance Portion of the mortgage loan while the loan is in good standing and prior to completion of the Three-year Period, that payment accelerates both the reduction in the remaining PRA Forbearance Amount and the PRA Investor Incentive Payments from the HAMP program administrator. Can i efile a 2011 tax return To the extent that the HAMP-PRA borrower is described in section 4. Can i efile a 2011 tax return 07 of this revenue procedure, the HAMP-PRA borrower excludes from his or her gross income under the general welfare exclusion the accelerated PRA Investor Incentive Payments. Can i efile a 2011 tax return To the extent that the HAMP-PRA borrower is described in section 4. Can i efile a 2011 tax return 08 of this revenue procedure, the HAMP-PRA borrower includes in income in the year of the acceleration the remaining amount of the PRA Investor Incentive Payment. Can i efile a 2011 tax return SECTION 5. Can i efile a 2011 tax return INFORMATION-REPORTING OBLIGATIONS . Can i efile a 2011 tax return 01 Under § 6050P, the investor is required to file a Form 1099-C with respect to a borrower who realizes discharge of indebtedness of $600 or more. Can i efile a 2011 tax return A copy of this form is required to be furnished to the borrower. Can i efile a 2011 tax return . Can i efile a 2011 tax return 02 As stated in sections 4. Can i efile a 2011 tax return 01 and 4. Can i efile a 2011 tax return 04 of this revenue procedure, the HAMP-PRA discharge of indebtedness is realized at the time of the permanent modification of the mortgage loan. Can i efile a 2011 tax return . Can i efile a 2011 tax return 03 An investor is an applicable entity that is required under § 1. Can i efile a 2011 tax return 6050P-1 and this revenue procedure to issue a Form 1099-C for discharge of indebtedness. Can i efile a 2011 tax return Under § 1. Can i efile a 2011 tax return 6050P-1(b)(2)(F), the permanent modification of a mortgage loan is an identifiable event. Can i efile a 2011 tax return Identifiable events determine when Forms 1099-C have to be issued. Can i efile a 2011 tax return Thus, the Form 1099-C is issued for the calendar year in which the permanent mortgage loan modification occurs. Can i efile a 2011 tax return This rule under § 1. Can i efile a 2011 tax return 6050P-1(b)(2)(F) applies even if, under section 6 of this revenue procedure, the HAMP-PRA borrower chooses to treat the HAMP-PRA discharge as being realized at the times when the unpaid principal balance of the new mortgage loan is reduced. Can i efile a 2011 tax return . Can i efile a 2011 tax return 04 The investor (or the loan servicer acting on behalf of the investor) reports the full amount of the discharge on the Form 1099-C regardless of whether some or all of the amount is excludible from income under the qualified principal residence indebtedness exclusion, the insolvency exclusion, or any other exclusion that may apply. Can i efile a 2011 tax return That discharged amount will generally be the PRA Adjusted Forbearance Amount (which does not include the amounts expected to be satisfied by PRA Investor Incentive Payments). Can i efile a 2011 tax return . Can i efile a 2011 tax return 05 To the extent that PRA Investor Incentive Payments are made on behalf of a HAMP-PRA borrower who is described in section 4. Can i efile a 2011 tax return 07 of this revenue procedure, the PRA Investor Incentive Payments are excluded from the gross income of the HAMP-PRA borrower, and thus they are not fixed or determinable income to the HAMP-PRA borrower. Can i efile a 2011 tax return Under § 6041, these payments are not subject to information reporting. Can i efile a 2011 tax return See Notice 2011-14, 2011-11 I. Can i efile a 2011 tax return R. Can i efile a 2011 tax return B. Can i efile a 2011 tax return 544, 546. Can i efile a 2011 tax return . Can i efile a 2011 tax return 06 To the extent that PRA Investor Incentive Payments are made on behalf of a HAMP-PRA borrower who is described in section 4. Can i efile a 2011 tax return 08 of this revenue procedure, the PRA Investor Incentive Payments are includible in gross income as fixed or determinable income in the taxable year required by the HAMP-PRA borrower’s method of accounting. Can i efile a 2011 tax return The payment is subject to the information reporting requirements of § 6041, as described in section 3. Can i efile a 2011 tax return 15 of this revenue procedure. Can i efile a 2011 tax return Accordingly, the HAMP program administrator is required to issue a Form 1099-MISC reporting the PRA Investor Incentive Payment. Can i efile a 2011 tax return SECTION 6. Can i efile a 2011 tax return HAMP-PRA BORROWERS’ REPORTING OF DISCHARGES OF INDEBTEDNESS UNDER HAMP-PRA . Can i efile a 2011 tax return 01 In general. Can i efile a 2011 tax return The HAMP-PRA program began in the last quarter of 2010, and since that time there has been uncertainty about whether the amount of the discharge of indebtedness should be reported in the year of the permanent modification or over the Three-year Period (when the unpaid principal balance on the new mortgage loan is reduced). Can i efile a 2011 tax return As a result, some HAMP-PRA borrowers have been reporting the discharge of indebtedness under HAMP-PRA over the Three-year Period. Can i efile a 2011 tax return Given the temporary nature of the program and the issuance of this guidance after participation in the program has begun, in the interests of equitable and sound tax administration, HAMP-PRA borrowers may report discharges of indebtedness under HAMP-PRA under the rules in this section 6. Can i efile a 2011 tax return A HAMP-PRA borrower may choose to report discharges of indebtedness under HAMP-PRA pursuant to the rules in this section 6 only if the borrower applies the same borrower option under section 6. Can i efile a 2011 tax return 02 of this revenue procedure consistently to the taxable year of the permanent modification and to all subsequent taxable years. Can i efile a 2011 tax return Thus, a HAMP-PRA borrower may not choose a borrower option under section 6. Can i efile a 2011 tax return 02 of this revenue procedure if a statute of limitations has expired for any of the taxable years that are necessary for consistent application of that option. Can i efile a 2011 tax return . Can i efile a 2011 tax return 02 HAMP-PRA borrower options. Can i efile a 2011 tax return A HAMP-PRA borrower may treat the HAMP-PRA discharge as being realized in either of the following ways— (1) One hundred percent of the PRA Adjusted Forbearance Amount at the time of the permanent modification; or (2) One third of the PRA Adjusted Forbearance Amount on each of the first three annual anniversaries of the trial period plan effective date (described in section 2. Can i efile a 2011 tax return 06 of this revenue procedure), when, as required by the terms of the new mortgage loan, the servicer reduces the unpaid principal balance of the new mortgage loan. Can i efile a 2011 tax return If some or all of the reduction in the unpaid principal balance is accelerated (as described in section 2. Can i efile a 2011 tax return 06 of this revenue procedure) because the HAMP-PRA borrower prepays the Non-forbearance Portion of the mortgage loan, then the HAMP-PRA discharge represented by the amount of the reduction that was accelerated is treated as being realized at the time of the accelerated reduction. Can i efile a 2011 tax return . Can i efile a 2011 tax return 03 HAMP-PRA borrowers who choose to realize the HAMP-PRA discharge at the time of the permanent modification. Can i efile a 2011 tax return (1) If a HAMP-PRA borrower chooses to treat the HAMP-PRA discharge as being realized at the time of the permanent modification, then for the taxable year in which the permanent modification occurs, the HAMP-PRA borrower reports on Form 982 the amount, if any, of the discharge that is excluded from gross income and includes in gross income any remaining discharge. Can i efile a 2011 tax return (2) If a HAMP-PRA borrower’s mortgage loan was permanently modified under HAMP in 2010 or 2011, and if the borrower was reporting the discharge of indebtedness using the method described in section 6. Can i efile a 2011 tax return 02(2) of this revenue procedure, then the borrower may change to reporting the discharge of indebtedness using the method described in section 6. Can i efile a 2011 tax return 02(1) of this revenue procedure by filing a 2012 Form 982 with the borrower’s timely filed (with extensions) 2012 income tax return. Can i efile a 2011 tax return This section 6. Can i efile a 2011 tax return 03(2) applies only if the change to reporting the discharge using the method described in section 6. Can i efile a 2011 tax return 02(1) of this revenue procedure does not change the borrower’s federal income tax liability (including any change in federal income tax liability due to a change in basis or tax attributes (under § 108(h)(1) or § 108(b))) for any taxable year prior to the borrower’s 2012 taxable year. Can i efile a 2011 tax return To make this change, the borrower must— (i) Compute the amount of discharge of indebtedness that would be included in income under § 61(a)(12) or excluded from gross income under § 108, basing the computation of the discharge on the facts as of the year of the permanent modification; and (ii) Report on a 2012 Form 982 the reduction in basis or tax attributes (under § 108(h)(1) or § 108(b)) due to the permanent modification that the borrower would have reported on the Form 982 for the taxable year of the permanent modification, minus any reductions due to the permanent modification that the borrower actually reported on Forms 982 for taxable years prior to 2012. Can i efile a 2011 tax return (3) Example. Can i efile a 2011 tax return The following example illustrates the application of section 6. Can i efile a 2011 tax return 03(2) of this revenue procedure. Can i efile a 2011 tax return In 2010, B’s basis in B’s principal residence was $330,000. Can i efile a 2011 tax return In 2010, B’s mortgage loan on the principal residence is permanently modified under HAMP-PRA. Can i efile a 2011 tax return B realized $30,000 of cancellation of indebtedness from the permanent modification, all of which qualifies for the exclusion from income for qualified principal residence indebtedness under § 108(a)(1)(E). Can i efile a 2011 tax return The trial period plan effective date also fell in 2010. Can i efile a 2011 tax return B’s federal income tax return for 2010 was consistent with B’s reporting this discharge of indebtedness using the method described in section 6. Can i efile a 2011 tax return 02(2) of this revenue procedure. Can i efile a 2011 tax return That is, B’s 2010 return did not include income from discharge of indebtedness under HAMP-PRA, nor did the return contain a Form 982 reporting exclusion of any such discharge of indebtedness. Can i efile a 2011 tax return The next year, B reported on line 10(b) of the 2011 Form 982 that B filed with B’s 2011 federal income tax return a $10,000 reduction in basis in the principal residence. Can i efile a 2011 tax return For 2012, B chooses to change to reporting the discharge of indebtedness using the method described in section 6. Can i efile a 2011 tax return 02(1) of this revenue procedure. Can i efile a 2011 tax return Thus, B files a 2012 Form 982 with B’s timely filed (including extensions) 2012 federal income tax return, and on line 10(b) of that form, B reports a $20,000 basis reduction in the principal residence ($30,000 basis reduction that B would have excluded from income in 2010 using the method described in section 6. Can i efile a 2011 tax return 02(1) of this revenue procedure, minus the $10,000 basis reduction that B reported on B’s 2011 Form 982). Can i efile a 2011 tax return (4) If a HAMP-PRA borrower reports the entire HAMP-PRA discharge using the method described in section 6. Can i efile a 2011 tax return 02(1) of this revenue procedure, and if that HAMP-PRA borrower’s mortgage loan ceases to be in good standing during the Three-year Period as described in section 2. Can i efile a 2011 tax return 10 of this revenue procedure, then some or all of the anticipated reductions in the PRA Adjusted Forbearance Amount will not take place. Can i efile a 2011 tax return Because the amount of these anticipated reductions was not included in determining the issue price of the new mortgage loan that, pursuant to § 1. Can i efile a 2011 tax return 1001-3, the HAMP-PRA borrower is deemed to issue in satisfaction of the old mortgage loan, the issue price of the new mortgage loan was understated. Can i efile a 2011 tax return Under these circumstances, the discharge of indebtedness income determined as of the date of the permanent modification will have been overstated. Can i efile a 2011 tax return (5) The Service will not challenge a HAMP-PRA borrower who is described in section 6. Can i efile a 2011 tax return 03(4) of this revenue procedure and who takes the following corrective measures: (i) If a HAMP-PRA borrower included any of the discharge of indebtedness in gross income, the HAMP-PRA borrower may file an amended return that does not include the amount of the discharge of indebtedness that was previously reported as gross income but that, because of the HAMP-PRA borrower’s failure to keep the new mortgage loan in good standing, was not ultimately discharged. Can i efile a 2011 tax return The amended return should be for the taxable year in which the income was included (that is, the year of the permanent modification), provided the applicable statute of limitations remains open for that taxable year. Can i efile a 2011 tax return (ii) If the HAMP-PRA borrower did not include any of the discharge of indebtedness in gross income (that is, if the HAMP-PRA borrower excluded all of it), the HAMP-PRA borrower may file a new Form 982 that the Service will treat as superseding the earlier Form 982. Can i efile a 2011 tax return The new Form 982 will reflect the revised reduction in basis or in tax attributes (under § 108(h)(1) or § 108(b)). Can i efile a 2011 tax return The new Form 982 should be the Form 982 for the year of the permanent modification and should be filed with the return for the taxable year in which the HAMP-PRA borrower’s mortgage loan ceased to be in good standing. Can i efile a 2011 tax return . Can i efile a 2011 tax return 04 HAMP-PRA borrowers who choose to treat the HAMP-PRA discharge as being realized on the dates on which the unpaid principal balance of the mortgage loan is reduced. Can i efile a 2011 tax return (1) If a HAMP-PRA borrower chooses to realize the HAMP-PRA discharge at the times that the unpaid principal balance on the new mortgage loan is reduced, instead of at the time of the permanent modification, then the HAMP-PRA borrower’s federal income tax returns for the taxable year that contains the permanent modification and for the subsequent taxable years must not treat any of the discharge as being realized at the time of the permanent modification and must treat the entire HAMP-PRA discharge as being realized in the amounts—and at the times—of the reductions in the unpaid principal balance. Can i efile a 2011 tax return Except as described in the last sentence of this paragraph, therefore, the income tax return for the year of the permanent modification must include no gross income from—nor report on Form 982 an exclusion of—any amount of the HAMP-PRA discharge. Can i efile a 2011 tax return Instead, the HAMP-PRA discharge is included in gross income (or is reported on Form 982 as excluded from gross income) in the subsequent years in which the unpaid principal balance is reduced. Can i efile a 2011 tax return If the first such reduction occurs in the year of the permanent modification, however, then the amount of any such reduction is reflected as an inclusion or exclusion on the federal income tax return for that year. Can i efile a 2011 tax return (2) A HAMP-PRA borrower who has been using the method described in section 6. Can i efile a 2011 tax return 02(1) of this revenue procedure may change to the method described in section 6. Can i efile a 2011 tax return 02(2) but must comply with the consistency and open-year requirements described in section 6. Can i efile a 2011 tax return 01 of this revenue procedure. Can i efile a 2011 tax return SECTION 7. Can i efile a 2011 tax return PENALTY RELIEF FOR 2012 . Can i efile a 2011 tax return 01 The Service will not assert penalties under § 6721 or § 6722 against an investor for failing to timely file and furnish a 2012 Form 1099-C as required by section 5. Can i efile a 2011 tax return 03 through 5. Can i efile a 2011 tax return 04 and section 8. Can i efile a 2011 tax return 02 of this revenue procedure with respect to discharge of indebtedness resulting from HAMP-PRA permanent modifications that take place during calendar year 2012 if the following requirements are satisfied: (1) Not later than February 28, 2013, a statement is sent to the HAMP-PRA borrower containing the following: (a) The HAMP-PRA borrower’s name, address, and taxpayer identification number; and (b) The date and amount of the discharge of indebtedness (as described in sections 4. Can i efile a 2011 tax return 01 through 4. Can i efile a 2011 tax return 04 of this revenue procedure) that is required to be reported for 2012. Can i efile a 2011 tax return (2) Not later than March 28, 2013, a statement is sent to the Service. Can i efile a 2011 tax return It must be in the form of a single statement that separately lists for each HAMP-PRA borrower the information specified in section 7. Can i efile a 2011 tax return 01(1) of this revenue procedure. Can i efile a 2011 tax return The statement should be sent to the Service at the following address: Internal Revenue Service Center Stop 6728AUSC Austin, TX 73301 . Can i efile a 2011 tax return 02 The Service will not assert penalties under § 6721 or § 6722 with respect to any Forms 1099-MISC for 2012 that sections 5. Can i efile a 2011 tax return 06 and 8. Can i efile a 2011 tax return 02 of this revenue procedure require to be filed with the Service and furnished to taxpayers. Can i efile a 2011 tax return . Can i efile a 2011 tax return 03 Section 8. Can i efile a 2011 tax return 03 and 8. Can i efile a 2011 tax return 04 of this revenue procedure, below, describes penalty relief regarding Forms 1099-C and 1099-MISC for 2010 and 2011. Can i efile a 2011 tax return SECTION 8. Can i efile a 2011 tax return SCOPE AND EFFECTIVE DATE . Can i efile a 2011 tax return 01 This revenue procedure applies to all borrowers, investors, and servicers who participate, or have participated, in the HAMP-PRA, regardless of when the permanent modification occurs. Can i efile a 2011 tax return . Can i efile a 2011 tax return 02 Section 5 of this revenue procedure is effective for Forms 1099-C and 1099-MISC due or filed after January 24, 2013. Can i efile a 2011 tax return . Can i efile a 2011 tax return 03 Because of the effective date in section 8. Can i efile a 2011 tax return 02 of this revenue procedure, an investor is not subject to penalties under § 6721 or § 6722 on the grounds that the investor failed to timely file and furnish a 2010 or 2011 Form 1099-C as described in section 5. Can i efile a 2011 tax return 03 through 5. Can i efile a 2011 tax return 04 of this revenue procedure (or on the grounds that the investor filed or furnished a 2010 or 2011 Form 1099-C that is inconsistent with section 5. Can i efile a 2011 tax return 03 through 5. Can i efile a 2011 tax return 04 of this revenue procedure), provided that the investor demonstrates a good faith attempt to comply with the requirements of § 6050P and that the failure was not due to willful neglect. Can i efile a 2011 tax return . Can i efile a 2011 tax return 04 Because of the effective date in section 8. Can i efile a 2011 tax return 02 of this revenue procedure, the Service will not assert penalties under § 6721 or § 6722 on the grounds of a failure to timely file and furnish a 2010 or 2011 Form 1099-MISC, as described in section 5. Can i efile a 2011 tax return 06 of this revenue procedure. Can i efile a 2011 tax return SECTION 9. Can i efile a 2011 tax return DRAFTING INFORMATION The principal authors of this revenue procedure are Ronald J. Can i efile a 2011 tax return Goldstein of the Office of Chief Counsel (Procedure and Administration); Shareen S. Can i efile a 2011 tax return Pflanz and Sheldon A. Can i efile a 2011 tax return Iskow of the Office of Chief Counsel (Income Tax and Accounting); and Andrea M. Can i efile a 2011 tax return Hoffenson of the Office of Chief Counsel (Financial Institutions and Products). Can i efile a 2011 tax return For further information regarding this revenue procedure, contact Procedure and Administration branch 1 at (202) 622-4910, Income Tax and Accounting branch 4 at (202) 622-4920, or Financial Institutions and Products branch 1 at (202) 622-3920 (not toll-free calls). Can i efile a 2011 tax return Prev  Up  Next   Home   More Internal Revenue Bulletins