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E-file Prior Year Tax Return

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E-file Prior Year Tax Return

E-file prior year tax return 7. E-file prior year tax return   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. E-file prior year tax return Free help with your tax return. E-file prior year tax return   You can get free help preparing your return nationwide from IRS-certified volunteers. E-file prior year tax return The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. E-file prior year tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. E-file prior year 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. E-file prior year tax return In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. E-file prior year tax return To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. E-file prior year tax return gov, download the IRS2Go app, or call 1-800-906-9887. E-file prior year tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. E-file prior year tax return To find the nearest AARP Tax-Aide site, visit AARP's website at www. E-file prior year tax return aarp. E-file prior year tax return org/money/taxaide or call 1-888-227-7669. E-file prior year tax return For more information on these programs, go to IRS. E-file prior year tax return gov and enter “VITA” in the search box. E-file prior year tax return Internet. E-file prior year tax return    IRS. E-file prior year tax return gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. E-file prior year tax return Download the free IRS2Go app from the iTunes app store or from Google Play. E-file prior year tax return Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. E-file prior year tax return Check the status of your 2013 refund with the Where's My Refund? application on IRS. E-file prior year tax return gov or download the IRS2Go app and select the Refund Status option. E-file prior year tax return The IRS issues more than 9 out of 10 refunds in less than 21 days. E-file prior year tax return Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. E-file prior year tax return You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. E-file prior year tax return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. E-file prior year tax return Use the Interactive Tax Assistant (ITA) to research your tax questions. E-file prior year tax return No need to wait on the phone or stand in line. E-file prior year tax return The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. E-file prior year tax return When you reach the response screen, you can print the entire interview and the final response for your records. E-file prior year tax return New subject areas are added on a regular basis. E-file prior year tax return  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. E-file prior year tax return gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. E-file prior year tax return You can use the IRS Tax Map, to search publications and instructions by topic or keyword. E-file prior year tax return The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. E-file prior year tax return When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. E-file prior year tax return Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. E-file prior year tax return You can also ask the IRS to mail a return or an account transcript to you. E-file prior year tax return Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. E-file prior year tax return gov or by calling 1-800-908-9946. E-file prior year tax return Tax return and tax account transcripts are generally available for the current year and the past three years. E-file prior year tax return Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. E-file prior year tax return Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. E-file prior year tax return If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. E-file prior year tax return Check the status of your amended return using Where's My Amended Return? Go to IRS. E-file prior year tax return gov and enter Where's My Amended Return? in the search box. E-file prior year tax return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. E-file prior year tax return It can take up to 3 weeks from the date you mailed it to show up in our system. E-file prior year tax return Make a payment using one of several safe and convenient electronic payment options available on IRS. E-file prior year tax return gov. E-file prior year tax return Select the Payment tab on the front page of IRS. E-file prior year tax return gov for more information. E-file prior year tax return Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. E-file prior year tax return Figure your income tax withholding with the IRS Withholding Calculator on IRS. E-file prior year tax return gov. E-file prior year tax return Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. E-file prior year tax return Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. E-file prior year tax return gov. E-file prior year tax return Request an Electronic Filing PIN by going to IRS. E-file prior year tax return gov and entering Electronic Filing PIN in the search box. E-file prior year tax return Download forms, instructions and publications, including accessible versions for people with disabilities. E-file prior year tax return Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. E-file prior year tax return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. E-file prior year tax return An employee can answer questions about your tax account or help you set up a payment plan. E-file prior year tax return Before you visit, check the Office Locator on IRS. E-file prior year tax return gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. E-file prior year tax return If you have a special need, such as a disability, you can request an appointment. E-file prior year tax return Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. E-file prior year tax return Apply for an Employer Identification Number (EIN). E-file prior year tax return Go to IRS. E-file prior year tax return gov and enter Apply for an EIN in the search box. E-file prior year tax return Read the Internal Revenue Code, regulations, or other official guidance. E-file prior year tax return Read Internal Revenue Bulletins. E-file prior year tax return Sign up to receive local and national tax news and more by email. E-file prior year tax return Just click on “subscriptions” above the search box on IRS. E-file prior year tax return gov and choose from a variety of options. E-file prior year tax return Phone. E-file prior year tax return    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. E-file prior year tax return Download the free IRS2Go app from the iTunes app store or from Google Play. E-file prior year tax return Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. E-file prior year tax return gov, or download the IRS2Go app. E-file prior year tax return Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. E-file prior year tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. E-file prior year tax return Most VITA and TCE sites offer free electronic filing. E-file prior year tax return Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. E-file prior year tax return Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. E-file prior year tax return Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. E-file prior year tax return If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. E-file prior year tax return The IRS issues more than 9 out of 10 refunds in less than 21 days. E-file prior year tax return Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. E-file prior year tax return Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. E-file prior year tax return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. E-file prior year tax return Note, the above information is for our automated hotline. E-file prior year tax return Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. E-file prior year tax return Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. E-file prior year tax return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. E-file prior year tax return It can take up to 3 weeks from the date you mailed it to show up in our system. E-file prior year tax return Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). E-file prior year tax return You should receive your order within 10 business days. E-file prior year tax return Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. E-file prior year tax return If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. E-file prior year tax return Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. E-file prior year tax return The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. E-file prior year tax return These individuals can also contact the IRS through relay services such as the Federal Relay Service. E-file prior year tax return Walk-in. E-file prior year tax return   You can find a selection of forms, publications and services — in-person. E-file prior year tax return Products. E-file prior year tax return You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. E-file prior year tax return Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. E-file prior year tax return Services. E-file prior year tax return You can walk in to your local TAC for face-to-face tax help. E-file prior year tax return An employee can answer questions about your tax account or help you set up a payment plan. E-file prior year tax return Before visiting, use the Office Locator tool on IRS. E-file prior year tax return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. E-file prior year tax return Mail. E-file prior year tax return   You can send your order for forms, instructions, and publications to the address below. E-file prior year tax return You should receive a response within 10 business days after your request is received. E-file prior year tax return Internal Revenue Service 1201 N. E-file prior year tax return Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. E-file prior year tax return The Taxpayer Advocate Service (TAS) is your voice at the IRS. E-file prior year tax return Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. E-file prior year tax return   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. E-file prior year tax return We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. E-file prior year tax return You face (or your business is facing) an immediate threat of adverse action. E-file prior year tax return You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. E-file prior year tax return   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. E-file prior year tax return Here's why we can help: TAS is an independent organization within the IRS. E-file prior year tax return Our advocates know how to work with the IRS. E-file prior year tax return Our services are free and tailored to meet your needs. E-file prior year tax return We have offices in every state, the District of Columbia, and Puerto Rico. E-file prior year tax return   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. E-file prior year tax return   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. E-file prior year tax return If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. E-file prior year tax return Low Income Taxpayer Clinics. E-file prior year tax return   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. E-file prior year tax return Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. E-file prior year tax return Visit www. E-file prior year tax return TaxpayerAdvocate. E-file prior year tax return irs. E-file prior year tax return gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. E-file prior year tax return Prev  Up  Next   Home   More Online Publications
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The E-file Prior Year Tax Return

E-file prior year tax return Publication 542 - Main Content Table of Contents Businesses Taxed as CorporationsPersonal services. E-file prior year tax return Employee-owners. E-file prior year tax return Other rules. E-file prior year tax return Other rules. E-file prior year tax return Property Exchanged for StockNonqualified preferred stock. E-file prior year tax return Liabilities. E-file prior year tax return Election to reduce basis. E-file prior year tax return Capital Contributions Filing and Paying Income TaxesIncome Tax Return Penalties Estimated Tax U. E-file prior year tax return S. E-file prior year tax return Real Property Interest Accounting MethodsSection 481(a) adjustment. E-file prior year tax return Accounting Periods Recordkeeping Income, Deductions, and Special ProvisionsCosts of Going Into Business Related Persons Income From Qualifying Shipping Activities Election to Expense Qualified Refinery Property Deduction to Comply With EPA Sulfur Regulations Energy-Efficient Commercial Building Property Deduction Corporate Preference Items Dividends-Received Deduction Extraordinary Dividends Below-Market Loans Charitable Contributions Capital Losses Net Operating Losses At-Risk Limits Passive Activity Limits Figuring TaxTax Rate Schedule Alternative Minimum Tax (AMT) Credits Recapture Taxes Accumulated Earnings Tax Distributions to ShareholdersMoney or Property Distributions Distributions of Stock or Stock Rights Constructive Distributions Reporting Dividends and Other Distributions How To Get Tax Help Businesses Taxed as Corporations The rules you must use to determine whether a business is taxed as a corporation changed for businesses formed after 1996. E-file prior year tax return Business formed before 1997. E-file prior year tax return   A business formed before 1997 and taxed as a corporation under the old rules will generally continue to be taxed as a corporation. E-file prior year tax return Business formed after 1996. E-file prior year tax return   The following businesses formed after 1996 are taxed as corporations. E-file prior year tax return A business formed under a federal or state law that refers to it as a corporation, body corporate, or body politic. E-file prior year tax return A business formed under a state law that refers to it as a joint-stock company or joint-stock association. E-file prior year tax return An insurance company. E-file prior year tax return Certain banks. E-file prior year tax return A business wholly owned by a state or local government. E-file prior year tax return A business specifically required to be taxed as a corporation by the Internal Revenue Code (for example, certain publicly traded partnerships). E-file prior year tax return Certain foreign businesses. E-file prior year tax return Any other business that elects to be taxed as a corporation. E-file prior year tax return For example, a limited liability company (LLC) can elect to be treated as an association taxable as a corporation by filing Form 8832, Entity Classification Election. E-file prior year tax return For more information about LLCs, see Publication 3402, Taxation of Limited Liability Companies. E-file prior year tax return S corporations. E-file prior year tax return   Some corporations may meet the qualifications for electing to be S corporations. E-file prior year tax return For information on S corporations, see the instructions for Form 1120S, U. E-file prior year tax return S. E-file prior year tax return Income Tax Return for an S Corporation. E-file prior year tax return Personal service corporations. E-file prior year tax return   A corporation is a personal service corporation if it meets all of the following requirements. E-file prior year tax return Its principal activity during the “testing period” is performing personal services (defined later). E-file prior year tax return Generally, the testing period for any tax year is the prior tax year. E-file prior year tax return If the corporation has just been formed, the testing period begins on the first day of its tax year and ends on the earlier of: The last day of its tax year, or The last day of the calendar year in which its tax year begins. E-file prior year tax return Its employee-owners substantially perform the services in (1), above. E-file prior year tax return This requirement is met if more than 20% of the corporation's compensation cost for its activities of performing personal services during the testing period is for personal services performed by employee-owners. E-file prior year tax return Its employee-owners own more than 10% of the fair market value of its outstanding stock on the last day of the testing period. E-file prior year tax return Personal services. E-file prior year tax return   Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health (including veterinary services), law, and the performing arts. E-file prior year tax return Employee-owners. E-file prior year tax return   A person is an employee-owner of a personal service corporation if both of the following apply. E-file prior year tax return He or she is an employee of the corporation or performs personal services for, or on behalf of, the corporation (even if he or she is an independent contractor for other purposes) on any day of the testing period. E-file prior year tax return He or she owns any stock in the corporation at any time during the testing period. E-file prior year tax return Other rules. E-file prior year tax return   For other rules that apply to personal service corporations see Accounting Periods, later. E-file prior year tax return Closely held corporations. E-file prior year tax return   A corporation is closely held if all of the following apply. E-file prior year tax return It is not a personal service corporation. E-file prior year tax return At any time during the last half of the tax year, more than 50% of the value of its outstanding stock is, directly or indirectly, owned by or for five or fewer individuals. E-file prior year tax return “Individual” includes certain trusts and private foundations. E-file prior year tax return Other rules. E-file prior year tax return   For the at-risk rules that apply to closely held corporations, seeAt-Risk Limits, later. E-file prior year tax return Property Exchanged for Stock If you transfer property (or money and property) to a corporation in exchange for stock in that corporation (other than nonqualified preferred stock, described later), and immediately afterward you are in control of the corporation, the exchange is usually not taxable. E-file prior year tax return This rule applies both to individuals and to groups who transfer property to a corporation. E-file prior year tax return It also applies whether the corporation is being formed or is already operating. E-file prior year tax return It does not apply in the following situations. E-file prior year tax return The corporation is an investment company. E-file prior year tax return You transfer the property in a bankruptcy or similar proceeding in exchange for stock used to pay creditors. E-file prior year tax return The stock is received in exchange for the corporation's debt (other than a security) or for interest on the corporation's debt (including a security) that accrued while you held the debt. E-file prior year tax return Both the corporation and any person involved in a nontaxable exchange of property for stock must attach to their income tax returns a complete statement of all facts pertinent to the exchange. E-file prior year tax return For more information, see section 1. E-file prior year tax return 351-3 of the Regulations. E-file prior year tax return Control of a corporation. E-file prior year tax return   To be in control of a corporation, you or your group of transferors must own, immediately after the exchange, at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the outstanding shares of each class of nonvoting stock. E-file prior year tax return Example 1. E-file prior year tax return You and Bill Jones buy property for $100,000. E-file prior year tax return You both organize a corporation when the property has a fair market value of $300,000. E-file prior year tax return You transfer the property to the corporation for all its authorized capital stock, which has a par value of $300,000. E-file prior year tax return No gain is recognized by you, Bill, or the corporation. E-file prior year tax return Example 2. E-file prior year tax return You and Bill transfer the property with a basis of $100,000 to a corporation in exchange for stock with a fair market value of $300,000. E-file prior year tax return This represents only 75% of each class of stock of the corporation. E-file prior year tax return The other 25% was already issued to someone else. E-file prior year tax return You and Bill recognize a taxable gain of $200,000 on the transaction. E-file prior year tax return Services rendered. E-file prior year tax return   The term property does not include services rendered or to be rendered to the issuing corporation. E-file prior year tax return The value of stock received for services is income to the recipient. E-file prior year tax return Example. E-file prior year tax return You transfer property worth $35,000 and render services valued at $3,000 to a corporation in exchange for stock valued at $38,000. E-file prior year tax return Right after the exchange, you own 85% of the outstanding stock. E-file prior year tax return No gain is recognized on the exchange of property. E-file prior year tax return However, you recognize ordinary income of $3,000 as payment for services you rendered to the corporation. E-file prior year tax return Property of relatively small value. E-file prior year tax return   The term property does not include property of a relatively small value when it is compared to the value of stock and securities already owned or to be received for services by the transferor if the main purpose of the transfer is to qualify for the nonrecognition of gain or loss by other transferors. E-file prior year tax return   Property transferred will not be considered to be of relatively small value if its fair market value is at least 10% of the fair market value of the stock and securities already owned or to be received for services by the transferor. E-file prior year tax return Stock received in disproportion to property transferred. E-file prior year tax return   If a group of transferors exchange property for corporate stock, each transferor does not have to receive stock in proportion to his or her interest in the property transferred. E-file prior year tax return If a disproportionate transfer takes place, it will be treated for tax purposes in accordance with its true nature. E-file prior year tax return It may be treated as if the stock were first received in proportion and then some of it used to make gifts, pay compensation for services, or satisfy the transferor's obligations. E-file prior year tax return Money or other property received. E-file prior year tax return   If, in an otherwise nontaxable exchange of property for corporate stock, you also receive money or property other than stock, you may have to recognize gain. E-file prior year tax return You must recognize gain only up to the amount of money plus the fair market value of the other property you receive. E-file prior year tax return The rules for figuring the recognized gain in this situation generally follow those for a partially nontaxable exchange discussed in Publication 544 under Like-Kind Exchanges. E-file prior year tax return If the property you give up includes depreciable property, the recognized gain may have to be reported as ordinary income from depreciation. E-file prior year tax return See chapter 3 of Publication 544. E-file prior year tax return No loss is recognized. E-file prior year tax return Nonqualified preferred stock. E-file prior year tax return   Nonqualified preferred stock is treated as property other than stock. E-file prior year tax return Generally, it is preferred stock with any of the following features. E-file prior year tax return The holder has the right to require the issuer or a related person to redeem or buy the stock. E-file prior year tax return The issuer or a related person is required to redeem or buy the stock. E-file prior year tax return The issuer or a related person has the right to redeem or buy the stock and, on the issue date, it is more likely than not that the right will be exercised. E-file prior year tax return The dividend rate on the stock varies with reference to interest rates, commodity prices, or similar indices. E-file prior year tax return For a detailed definition of nonqualified preferred stock, see section 351(g)(2) of the Internal Revenue Code. E-file prior year tax return Liabilities. E-file prior year tax return   If the corporation assumes your liabilities, the exchange generally is not treated as if you received money or other property. E-file prior year tax return There are two exceptions to this treatment. E-file prior year tax return If the liabilities the corporation assumes are more than your adjusted basis in the property you transfer, gain is recognized up to the difference. E-file prior year tax return However, if the liabilities assumed give rise to a deduction when paid, such as a trade account payable or interest, no gain is recognized. E-file prior year tax return If there is no good business reason for the corporation to assume your liabilities, or if your main purpose in the exchange is to avoid federal income tax, the assumption is treated as if you received money in the amount of the liabilities. E-file prior year tax return For more information on the assumption of liabilities, see section 357(d) of the Internal Revenue Code. E-file prior year tax return Example. E-file prior year tax return You transfer property to a corporation for stock. E-file prior year tax return Immediately after the transfer, you control the corporation. E-file prior year tax return You also receive $10,000 in the exchange. E-file prior year tax return Your adjusted basis in the transferred property is $20,000. E-file prior year tax return The stock you receive has a fair market value (FMV) of $16,000. E-file prior year tax return The corporation also assumes a $5,000 mortgage on the property for which you are personally liable. E-file prior year tax return Gain is realized as follows. E-file prior year tax return FMV of stock received $16,000 Cash received 10,000 Liability assumed by corporation 5,000 Total received $31,000 Minus: Adjusted basis of property transferred 20,000 Realized gain $11,000   The liability assumed is not treated as money or other property. E-file prior year tax return The recognized gain is limited to $10,000, the cash received. E-file prior year tax return Loss on exchange. E-file prior year tax return   If you have a loss from an exchange and own, directly or indirectly, more than 50% of the corporation's stock, you cannot deduct the loss. E-file prior year tax return For more information, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. E-file prior year tax return Basis of stock or other property received. E-file prior year tax return   The basis of the stock you receive is generally the adjusted basis of the property you transfer. E-file prior year tax return Increase this amount by any amount treated as a dividend, plus any gain recognized on the exchange. E-file prior year tax return Decrease this amount by any cash you received, the fair market value of any other property you received, and any loss recognized on the exchange. E-file prior year tax return Also decrease this amount by the amount of any liability the corporation or another party to the exchange assumed from you, unless payment of the liability gives rise to a deduction when paid. E-file prior year tax return    Further decreases may be required when the corporation or another party to the exchange assumes from you a liability that gives rise to a deduction when paid, if the basis of the stock would otherwise be higher than its fair market value on the date of the exchange. E-file prior year tax return This rule does not apply if the entity assuming the liability acquired either substantially all of the assets or the trade or business with which the liability is associated. E-file prior year tax return The basis of any other property you receive is its fair market value on the date of the trade. E-file prior year tax return Basis of property transferred. E-file prior year tax return   A corporation that receives property from you in exchange for its stock generally has the same basis you had in the property, increased by any gain you recognized on the exchange. E-file prior year tax return However, the increase for the gain recognized may be limited. E-file prior year tax return For more information, see section 362 of the Internal Revenue Code. E-file prior year tax return Election to reduce basis. E-file prior year tax return   In a section 351 transaction, if the adjusted basis of the property transferred exceeds the property's fair market value, the transferor and transferee may make an irrevocable election to treat the basis of the stock received by the transferor as having a basis equal to the fair market value of the property transferred. E-file prior year tax return The transferor and transferee make this election by attaching a statement to their tax returns filed by the due date (including extensions) for the tax year in which the transaction occurred. E-file prior year tax return However, if the transferor makes the election by including the certification provided in Notice 2005-70, 2005-41, I. E-file prior year tax return R. E-file prior year tax return B. E-file prior year tax return 694, on or with its tax return filed by the due date (including extensions), then no election need be made by the transferee. E-file prior year tax return    For more information on making this election, see section 362(e)(2)(C) of the Internal Revenue Code, and Notice 2005-70. E-file prior year tax return Capital Contributions This section explains the tax treatment of contributions from shareholders and nonshareholders. E-file prior year tax return Paid-in capital. E-file prior year tax return   Contributions to the capital of a corporation, whether or not by shareholders, are paid-in capital. E-file prior year tax return These contributions are not taxable to the corporation. E-file prior year tax return Basis. E-file prior year tax return   The corporation's basis of property contributed to capital by a shareholder is the same as the basis the shareholder had in the property, increased by any gain the shareholder recognized on the exchange. E-file prior year tax return However, the increase for the gain recognized may be limited. E-file prior year tax return For more information, see Basis of property transferred, above, and section 362 of the Internal Revenue Code. E-file prior year tax return   The basis of property contributed to capital by a person other than a shareholder is zero. E-file prior year tax return   If a corporation receives a cash contribution from a person other than a shareholder, the corporation must reduce the basis of any property acquired with the contribution during the 12-month period beginning on the day it received the contribution by the amount of the contribution. E-file prior year tax return If the amount contributed is more than the cost of the property acquired, then reduce, but not below zero, the basis of the other properties held by the corporation on the last day of the 12-month period in the following order. E-file prior year tax return Depreciable property. E-file prior year tax return Amortizable property. E-file prior year tax return Property subject to cost depletion but not to percentage depletion. E-file prior year tax return All other remaining properties. E-file prior year tax return   Reduce the basis of property in each category to zero before going on to the next category. E-file prior year tax return   There may be more than one piece of property in each category. E-file prior year tax return Base the reduction of the basis of each property on the following ratio:   Basis of each piece of property   Bases of all properties (within that category) If the corporation wishes to make this adjustment in some other way, it must get IRS approval. E-file prior year tax return The corporation files a request for approval with its income tax return for the tax year in which it receives the contribution. E-file prior year tax return Filing and Paying Income Taxes The federal income tax is a pay-as-you-go tax. E-file prior year tax return A corporation generally must make estimated tax payments as it earns or receives income during its tax year. E-file prior year tax return After the end of the year, the corporation must file an income tax return. E-file prior year tax return This section will help you determine when and how to pay and file corporate income taxes. E-file prior year tax return For certain corporations affected by Presidentially declared disasters such as hurricanes, the due dates for filing returns, paying taxes, and performing other time-sensitive acts may be extended. E-file prior year tax return The IRS may also forgive the interest and penalties on any underpaid tax for the length of any extension. E-file prior year tax return For more information, visit www. E-file prior year tax return irs. E-file prior year tax return gov/newsroom/article/0,,id=108362. E-file prior year tax return 00. E-file prior year tax return Income Tax Return This section will help you determine when and how to report a corporation's income tax. E-file prior year tax return Who must file. E-file prior year tax return   Unless exempt under section 501 of the Internal Revenue Code, all domestic corporations in existence for any part of a tax year (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. E-file prior year tax return Which form to file. E-file prior year tax return   A corporation generally must file Form 1120, U. E-file prior year tax return S. E-file prior year tax return Corporation Income Tax Return, to report its income, gains, losses, deductions, credits, and to figure its income tax liability. E-file prior year tax return Certain organizations and entities must file special returns. E-file prior year tax return For more information, see Special Returns for Certain Organizations, in the Instructions for Form 1120. E-file prior year tax return Electronic filing. E-file prior year tax return   Corporations can generally electronically file (e-file) Form 1120 and certain related forms, schedules, and attachments. E-file prior year tax return Certain corporations with total assets of $10 million or more, that file at least 250 returns a year must e-file Form 1120. E-file prior year tax return However, in certain instances, these corporations can request a waiver. E-file prior year tax return For more information regarding electronic filing, visit www. E-file prior year tax return irs. E-file prior year tax return gov/efile. E-file prior year tax return When to file. E-file prior year tax return   Generally, a corporation must file its income tax return by the 15th day of the 3rd month after the end of its tax year. E-file prior year tax return A new corporation filing a short-period return must generally file by the 15th day of the 3rd month after the short period ends. E-file prior year tax return A corporation that has dissolved must generally file by the 15th day of the 3rd month after the date it dissolved. E-file prior year tax return Example 1. E-file prior year tax return A corporation's tax year ends December 31. E-file prior year tax return It must file its income tax return by March 15th. E-file prior year tax return Example 2. E-file prior year tax return A corporation's tax year ends June 30. E-file prior year tax return It must file its income tax return by September 15th. E-file prior year tax return   If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day. E-file prior year tax return Extension of time to file. E-file prior year tax return   File Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information and Other Returns, to request an extension of time to file a corporation income tax return. E-file prior year tax return The IRS will grant the extension if you complete the form properly, file it, and pay any tax due by the original due date for the return. E-file prior year tax return   Form 7004 does not extend the time for paying the tax due on the return. E-file prior year tax return Interest, and possibly penalties, will be charged on any part of the final tax due not shown as a balance due on Form 7004. E-file prior year tax return The interest is figured from the original due date of the return to the date of payment. E-file prior year tax return   For more information, see the instructions for Form 7004. E-file prior year tax return How to pay your taxes. E-file prior year tax return   A corporation must pay its tax due in full no later than the 15th day of the 3rd month after the end of its tax year. E-file prior year tax return Electronic Federal Tax Payment System (EFTPS). E-file prior year tax return   Corporations generally must use EFTPS to make deposits of all tax liabilities (including social security, Medicare, withheld income, excise, and corporate income taxes). E-file prior year tax return For more information on EFTPS and enrollment, visit www. E-file prior year tax return eftps. E-file prior year tax return gov or call 1-800-555-4477. E-file prior year tax return Also see Publication 966, The Secure Way to Pay Your Federal Taxes. E-file prior year tax return Note. E-file prior year tax return Forms 8109 and 8109-B, Federal Tax Deposit Coupon, can no longer be used to make federal tax deposits. E-file prior year tax return Penalties Generally, if the corporation receives a notice about interest and penalties after it files its return, send the IRS an explanation and we will determine if the corporation meets reasonable-cause criteria. E-file prior year tax return Do not attach an explanation when the corporation's return is filed. E-file prior year tax return See the instructions for your income tax return. E-file prior year tax return Late filing of return. E-file prior year tax return    A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. E-file prior year tax return If the corporation is charged a penalty for late payment of tax (discussed next) for the same period of time, the penalty for late filing is reduced by the amount of the penalty for late payment. E-file prior year tax return The minimum penalty for a return that is over 60 days late is the smaller of the tax due or $100. E-file prior year tax return The penalty will not be imposed if the corporation can show the failure to file on time was due to a reasonable cause. E-file prior year tax return Late payment of tax. E-file prior year tax return    A corporation that does not pay the tax when due may be penalized ½ of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. E-file prior year tax return The penalty will not be imposed if the corporation can show that the failure to pay on time was due to a reasonable cause. E-file prior year tax return Trust fund recovery penalty. E-file prior year tax return   If income, social security, and Medicare taxes that a corporation must withhold from employee wages are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. E-file prior year tax return The penalty is the full amount of the unpaid trust fund tax. E-file prior year tax return This penalty may apply to you if these unpaid taxes cannot be immediately collected from the business. E-file prior year tax return   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying these taxes, and who acted willfully in not doing so. E-file prior year tax return   A responsible person can be an officer or employee of a corporation, an accountant, or a volunteer director/trustee. E-file prior year tax return A responsible person also may include one who signs checks for the corporation or otherwise has authority to cause the spending of business funds. E-file prior year tax return   Willfully means voluntarily, consciously, and intentionally. E-file prior year tax return A responsible person acts willfully if the person knows the required actions are not taking place. E-file prior year tax return   For more information on withholding and paying these taxes, see Publication 15 (Circular E), Employer's Tax Guide, and Publication 51, (Circular A), Agricultural Employer's Tax Guide. E-file prior year tax return Other penalties. E-file prior year tax return   Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, and fraud. E-file prior year tax return See sections 6662, 6662A, and 6663 of the Internal Revenue Code. E-file prior year tax return Estimated Tax Generally, a corporation must make installment payments if it expects its estimated tax for the year to be $500 or more. E-file prior year tax return If the corporation does not pay the installments when they are due, it could be subject to an underpayment penalty. E-file prior year tax return This section will explain how to avoid this penalty. E-file prior year tax return When to pay estimated tax. E-file prior year tax return   Installment payments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the corporation's tax year. E-file prior year tax return Example 1. E-file prior year tax return Your corporation's tax year ends December 31. E-file prior year tax return Installment payments are due on April 15, June 15, September 15, and December 15. E-file prior year tax return Example 2. E-file prior year tax return Your corporation's tax year ends June 30. E-file prior year tax return Installment payments are due on October 15, December 15, March 15, and June 15. E-file prior year tax return   If any due date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next business day. E-file prior year tax return How to figure each required installment. E-file prior year tax return   Use Form 1120-W, Estimated Tax for Corporations, as a worksheet to figure each required installment of estimated tax. E-file prior year tax return You will generally use one of the following two methods to figure each required installment. E-file prior year tax return You should use the method that yields the smallest installment payments. E-file prior year tax return Note. E-file prior year tax return In these discussions, “return” generally refers to the corporation's original return. E-file prior year tax return However, an amended return is considered the original return if it is filed by the due date (including extensions) of the original return. E-file prior year tax return Method 1. E-file prior year tax return   Each required installment is 25% of the income tax the corporation will show on its return for the current year. E-file prior year tax return Method 2. E-file prior year tax return   Each required installment is 25% of the income tax shown on the corporation's return for the previous year. E-file prior year tax return   To use Method 2: The corporation must have filed a return for the previous year, The return must have been for a full 12 months, and The return must have shown a positive tax liability (not zero). E-file prior year tax return Also, if the corporation is a large corporation, it can use Method 2 to figure the first installment only. E-file prior year tax return   See the Instructions for Form 1120-W, for the definition of a large corporation and other special rules for large corporations. E-file prior year tax return Other methods. E-file prior year tax return   If a corporation's income is expected to vary during the year because, for example, its business is seasonal, it may be able to lower the amount of one or more required installments by using one or both of the following methods. E-file prior year tax return The annualized income installment method. E-file prior year tax return The adjusted seasonal installment method. E-file prior year tax return Use Schedule A of Form 1120-W to determine if using one or both of these methods will lower the amount of any required installments. E-file prior year tax return Refiguring required installments. E-file prior year tax return   If after the corporation figures and deposits its estimated tax it finds that its tax liability for the year will be more or less than originally estimated, it may have to refigure its required installments to see if an underpayment penalty may apply. E-file prior year tax return An immediate catchup payment should be made to reduce any penalty resulting from the underpayment of any earlier installments. E-file prior year tax return Underpayment penalty. E-file prior year tax return   If the corporation does not pay a required installment of estimated tax by its due date, it may be subject to a penalty. E-file prior year tax return The penalty is figured separately for each installment due date. E-file prior year tax return The corporation may owe a penalty for an earlier due date, even if it paid enough tax later to make up the underpayment. E-file prior year tax return This is true even if the corporation is due a refund when its return is filed. E-file prior year tax return Form 2220. E-file prior year tax return   Use Form 2220, Underpayment of Estimated Tax by Corporations, to determine if a corporation is subject to the penalty for underpayment of estimated tax and to figure the amount of the penalty. E-file prior year tax return   If the corporation is charged a penalty, the amount of the penalty depends on the following three factors. E-file prior year tax return The amount of the underpayment. E-file prior year tax return The period during which the underpayment was due and unpaid. E-file prior year tax return The interest rate for underpayments published quarterly by the IRS in the Internal Revenue Bulletin. E-file prior year tax return   A corporation generally does not have to file Form 2220 with its income tax return because the IRS will figure any penalty and bill the corporation. E-file prior year tax return However, even if the corporation does not owe a penalty, complete and attach the form to the corporation's tax return if any of the following apply. E-file prior year tax return The annualized income installment method was used to figure any required installment. E-file prior year tax return The adjusted seasonal installment method was used to figure any required installment. E-file prior year tax return The corporation is a large corporation figuring its first required installment based on the prior year's tax. E-file prior year tax return How to pay estimated tax. E-file prior year tax return   A corporation is generally required to use EFTPS to pay its taxes. E-file prior year tax return See Electronic Federal Tax Payment System (EFTPS), earlier. E-file prior year tax return Also see the Instructions for Form 1120-W. E-file prior year tax return Quick refund of overpayments. E-file prior year tax return   A corporation that has overpaid its estimated tax for the tax year may be able to apply for a quick refund. E-file prior year tax return Use Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, to apply for a quick refund of an overpayment of estimated tax. E-file prior year tax return A corporation can apply for a quick refund if the overpayment is: At least 10% of its expected tax liability, and At least $500. E-file prior year tax return Use Form 4466 to figure the corporation's expected tax liability and the overpayment of estimated tax. E-file prior year tax return File Form 4466 before the 16th day of the 3rd month after the end of the tax year, but before the corporation files its income tax return. E-file prior year tax return Do not file Form 4466 before the end of the corporation's tax year. E-file prior year tax return An extension of time to file the corporation's income tax return will not extend the time for filing Form 4466. E-file prior year tax return The IRS will act on the form within 45 days from the date you file it. E-file prior year tax return U. E-file prior year tax return S. E-file prior year tax return Real Property Interest If a domestic corporation acquires a U. E-file prior year tax return S. E-file prior year tax return real property interest from a foreign person or firm, the corporation may have to withhold tax on the amount it pays for the property. E-file prior year tax return The amount paid includes cash, the fair market value of other property, and any assumed liability. E-file prior year tax return If a domestic corporation distributes a U. E-file prior year tax return S. E-file prior year tax return real property interest to a foreign person or firm, it may have to withhold tax on the fair market value of the property. E-file prior year tax return A corporation that fails to withhold may be liable for the tax, and any penalties and interest that apply. E-file prior year tax return For more information, see section 1445 of the Internal Revenue Code; Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities; Form 8288, U. E-file prior year tax return S. E-file prior year tax return Withholding Tax Return for Dispositions by Foreign Persons of U. E-file prior year tax return S. E-file prior year tax return Real Property Interests; and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. E-file prior year tax return S. E-file prior year tax return Real Property Interests. E-file prior year tax return Accounting Methods An accounting method is a set of rules used to determine when and how income and expenses are reported. E-file prior year tax return Taxable income should be determined using the method of accounting regularly used in keeping the corporation's books and records. E-file prior year tax return In all cases, the method used must clearly show taxable income. E-file prior year tax return Generally, permissible methods include: Cash, Accrual, or Any other method authorized by the Internal Revenue Code. E-file prior year tax return Accrual method. E-file prior year tax return   Generally, a corporation (other than a qualified personal service corporation) must use the accrual method of accounting if its average annual gross receipts exceed $5 million. E-file prior year tax return A corporation engaged in farming operations also must use the accrual method. E-file prior year tax return   If inventories are required, the accrual method generally must be used for sales and purchases of merchandise. E-file prior year tax return However, qualifying taxpayers and eligible businesses of qualifying small business taxpayers are excepted from using the accrual method for eligible trades or businesses and may account for inventoriable items as materials and supplies that are not incidental. E-file prior year tax return   Under the accrual method, an amount is includable in income when: All the events have occurred that fix the right to receive the income, which is the earliest of the date: The required performance takes place, Payment is due, or Payment is received; and The amount can be determined with reasonable accuracy. E-file prior year tax return   Generally, an accrual basis taxpayer can deduct accrued expenses in the tax year when: All events that determine the liability have occurred, The amount of the liability can be figured with reasonable accuracy, and Economic performance takes place with respect to the expense. E-file prior year tax return   There are exceptions to the economic performance rule for certain items, including recurring expenses. E-file prior year tax return See section 461(h) of the Internal Revenue Code and the related regulations for the rules for determining when economic performance takes place. E-file prior year tax return Nonaccrual experience method. E-file prior year tax return   Accrual method corporations are not required to maintain accruals for certain amounts from the performance of services that, on the basis of their experience, will not be collected, if: The services are in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting; or The corporation's average annual gross receipts for the 3 prior tax years does not exceed $5 million. E-file prior year tax return   This provision does not apply if interest is required to be paid on the amount or if there is any penalty for failure to pay the amount timely. E-file prior year tax return Percentage of completion method. E-file prior year tax return   Long-term contracts (except for certain real property construction contracts) must generally be accounted for using the percentage of completion method described in section 460 of the Internal Revenue Code. E-file prior year tax return Mark-to-market accounting method. E-file prior year tax return   Generally, dealers in securities must use the mark-to-market accounting method described in section 475 of the Internal Revenue Code. E-file prior year tax return Under this method any security held by a dealer as inventory must be included in inventory at its FMV. E-file prior year tax return Any security not held as inventory at the close of the tax year is treated as sold at its FMV on the last business day of the tax year. E-file prior year tax return Any gain or loss must be taken into account in determining gross income. E-file prior year tax return The gain or loss taken into account is treated as ordinary gain or loss. E-file prior year tax return   Dealers in commodities and traders in securities and commodities can elect to use the mark-to-market accounting method. E-file prior year tax return Change in accounting method. E-file prior year tax return   A corporation can change its method of accounting used to report taxable income (for income as a whole or for the treatment of any material item). E-file prior year tax return The corporation must file Form 3115, Application for Change in Accounting Method. E-file prior year tax return For more information, see Form 3115 and Publication 538. E-file prior year tax return Section 481(a) adjustment. E-file prior year tax return   The corporation may have to make an adjustment under section 481(a) of the Internal Revenue Code to prevent amounts of income or expense from being duplicated or omitted. E-file prior year tax return The section 481(a) adjustment period is generally 1 year for a net negative adjustment and 4 years for a net positive adjustment. E-file prior year tax return However, a corporation can elect to use a 1-year adjustment period if the net section 481(a) adjustment for the change is less than $25,000. E-file prior year tax return The corporation must complete the appropriate lines of Form 3115 to make the election. E-file prior year tax return See the Instructions for Form 3115. E-file prior year tax return Accounting Periods A corporation must figure its taxable income on the basis of a tax year. E-file prior year tax return A tax year is the annual accounting period a corporation uses to keep its records and report its income and expenses. E-file prior year tax return Generally, corporations can use either a calendar year or a fiscal year as its tax year. E-file prior year tax return Unless special rules apply, a corporation generally adopts a tax year by filing its first federal income tax return using that tax year. E-file prior year tax return For more information, see Publication 538. E-file prior year tax return Personal service corporation. E-file prior year tax return   A personal service corporation must use a calendar year as its tax year unless: It elects to use a 52–53 week tax year that ends with reference to the calendar year; It can establish a business purpose for a different tax year and obtains approval of the IRS. E-file prior year tax return See Form 1128, Application To Adopt, Change, or Retain a Tax Year, and Publication 538; or It elects under section 444 of the Internal Revenue Code to have a tax year other than a calendar year. E-file prior year tax return Use Form 8716, Election to Have a Tax Year Other Than a Required Tax Year, to make the election. E-file prior year tax return   If a personal service corporation makes a section 444 election, its deduction for certain amounts paid to employee-owners may be limited. E-file prior year tax return See Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation (PSC), to figure the maximum deduction. E-file prior year tax return Change of tax year. E-file prior year tax return   Generally, a corporation must get the consent of the IRS before changing its tax year by filing Form 1128. E-file prior year tax return However, under certain conditions, a corporation can change its tax year without getting the consent. E-file prior year tax return For more information, see Form 1128 and Publication 538. E-file prior year tax return Recordkeeping A corporation should keep its records for as long as they may be needed for the administration of any provision of the Internal Revenue Code. E-file prior year tax return Usually records that support items of income, deductions, or credits on the return must be kept for 3 years from the date the return is due or filed, whichever is later. E-file prior year tax return Keep records that verify the corporation's basis in property for as long as they are needed to figure the basis of the original or replacement property. E-file prior year tax return The corporation should keep copies of all filed returns. E-file prior year tax return They help in preparing future and amended returns and in the calculation of earnings and profits. E-file prior year tax return Income, Deductions, and Special Provisions Rules on income and deductions that apply to individuals also apply, for the most part, to corporations. E-file prior year tax return However, the following special provisions apply only to corporations. E-file prior year tax return Costs of Going Into Business When you go into business, treat all costs you incur to get your business started as capital expenses. E-file prior year tax return However, a corporation can elect to deduct a limited amount of start-up or organizational costs. E-file prior year tax return Any costs not deducted can be amortized. E-file prior year tax return Start-up costs are costs for creating an active trade or business or investigating the creation or acquisition of an active trade or business. E-file prior year tax return Organizational costs are the direct costs of creating the corporation. E-file prior year tax return For more information on deducting or amortizing start-up and organizational costs, see the instructions for your income tax return. E-file prior year tax return Also see, Publication 535, chapter 7, Costs You Can Deduct or Capitalize, and chapter 8, Amortization. E-file prior year tax return Related Persons A corporation that uses an accrual method of accounting cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until the corporation makes the payment and the corresponding amount is includible in the related person's gross income. E-file prior year tax return Determine the relationship, for this rule, as of the end of the tax year for which the expense or interest would otherwise be deductible. E-file prior year tax return If a deduction is denied, the rule will continue to apply even if the corporation's relationship with the person ends before the expense or interest is includible in the gross income of that person. E-file prior year tax return These rules also deny the deduction of losses on the sale or exchange of property between related persons. E-file prior year tax return Related persons. E-file prior year tax return   For purposes of this rule, the following persons are related to a corporation. E-file prior year tax return Another corporation, that is a member of the same controlled group (as defined in section 267(f) of the Internal Revenue Code). E-file prior year tax return An individual who owns, directly or indirectly, more than 50% of the value of the outstanding stock of the corporation. E-file prior year tax return A trust fiduciary, when the trust or the grantor of the trust owns, directly or indirectly, more than 50% in value of the outstanding stock of the corporation. E-file prior year tax return An S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. E-file prior year tax return A partnership, if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital or profits interest in the partnership. E-file prior year tax return Any employee-owner, if the corporation is a personal service corporation (see Personal service corporation, earlier), regardless of the amount of stock owned by the employee-owner. E-file prior year tax return Ownership of stock. E-file prior year tax return   To determine whether an individual directly or indirectly owns any of the outstanding stock of a corporation, the following apply. E-file prior year tax return Stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust, is treated as being owned proportionately by or for its shareholders, partners, or beneficiaries. E-file prior year tax return An individual is treated as owning the stock owned, directly or indirectly, by or for the individual's family. E-file prior year tax return Family includes only brothers and sisters (including half brothers and half sisters), a spouse, ancestors, and lineal descendants. E-file prior year tax return Any individual owning (other than by applying (2), above) stock in a corporation, is treated as also owning the stock owned directly or indirectly by that individual's partner. E-file prior year tax return To apply (1), (2), or (3), above, stock constructively owned by a person under (1) is treated as actually owned by that person. E-file prior year tax return But stock constructively owned by an individual under (2) or (3) is not treated as actually owned by the individual for applying either (2) or (3) to make another person the constructive owner of that stock. E-file prior year tax return Reallocation of income and deductions. E-file prior year tax return   Where it is necessary to clearly show income or prevent tax evasion, the IRS can reallocate gross income, deductions, credits, or allowances between two or more organizations, trades, or businesses owned or controlled directly, or indirectly, by the same interests. E-file prior year tax return Complete liquidations. E-file prior year tax return   The disallowance of losses from the sale or exchange of property between related persons does not apply to liquidating distributions. E-file prior year tax return More information. E-file prior year tax return   For more information about the related person rules, see Publication 544. E-file prior year tax return Income From Qualifying Shipping Activities A corporation may make an election to be taxed on its notional shipping income at the highest corporate tax rate. E-file prior year tax return If a corporation makes this election it may exclude income from qualifying shipping activities from gross income. E-file prior year tax return Also if the election is made, the corporation generally may not claim any loss, deduction, or credit with respect to qualifying shipping activities. E-file prior year tax return A corporation making this election may also elect to defer gain on the disposition of a qualifying vessel. E-file prior year tax return A corporation uses Form 8902, Alternative Tax on Qualifying Shipping Activities, to make the election and figure the alternative tax. E-file prior year tax return For more information regarding the election, see Form 8902. E-file prior year tax return Election to Expense Qualified Refinery Property A corporation can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct 50% of the cost of qualified refinery property (defined in section 179C(c) of the Internal Revenue Code), placed in service before January 1, 2014. E-file prior year tax return The deduction is allowed for the year in which the property is placed in service. E-file prior year tax return A subchapter T cooperative can make an irrevocable election on its return by the due date (including extensions) to allocate this deduction to its owners based on their ownership interest. E-file prior year tax return For more information, see section 179C of the Internal Revenue Code and the related Regulations. E-file prior year tax return Deduction to Comply With EPA Sulfur Regulations A small business refiner can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct up to 75% of qualified costs paid or incurred to comply with the Highway Diesel Fuel Sulfur Control Requirements of the Environmental Protection Agency (EPA). E-file prior year tax return A subchapter T cooperative can make an irrevocable election on its return filed by the due date (including extensions) to allocate the deduction to its owners based on their ownership interest. E-file prior year tax return For more information, see sections 45H and 179B of the Internal Revenue Code and the related Regulations. E-file prior year tax return Energy-Efficient Commercial Building Property Deduction A corporation can claim a deduction for costs associated with energy-efficient commercial building property, placed in service before January 1, 2014. E-file prior year tax return In order to qualify for the deduction: The costs must be associated with depreciable or amortizable property in a Standard 90. E-file prior year tax return 1-2001 domestic building; The property must be either a part of the interior lighting system, the heating, cooling, ventilation and hot water system, or the building envelope (defined in section 179D(c)(1)(C) of the Internal Revenue Code); and The property must be installed as part of a plan to reduce the total annual energy and power costs of the building by 50% or more. E-file prior year tax return The deduction is limited to $1. E-file prior year tax return 80 per square foot of the building less the total amount of deductions taken for this property in prior tax years. E-file prior year tax return Other rules and limitations apply. E-file prior year tax return The corporation must reduce the basis of any property by any deduction taken. E-file prior year tax return The deduction is subject to recapture if the corporation fails to fully implement an energy savings plan. E-file prior year tax return For more information, see section 179D of the Internal Revenue Code. E-file prior year tax return Also see Notice 2006-52, 2006-26 I. E-file prior year tax return R. E-file prior year tax return B. E-file prior year tax return 1175, clarified and amplified by Notice 2008-40, 2008-14 I. E-file prior year tax return R. E-file prior year tax return B. E-file prior year tax return 725, and any successor. E-file prior year tax return Corporate Preference Items A corporation must make special adjustments to certain items before it takes them into account in determining its taxable income. E-file prior year tax return These items are known as corporate preference items and they include the following. E-file prior year tax return Gain on the disposition of section 1250 property. E-file prior year tax return For more information, see section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. E-file prior year tax return Percentage depletion for iron ore and coal (including lignite). E-file prior year tax return For more information, see Mines and Geothermal Deposits under Mineral Property in chapter 9 of Publication 535. E-file prior year tax return Amortization of pollution control facilities. E-file prior year tax return For more information, see Pollution Control Facilities in chapter 8 of Publication 535 and section 291(a)(5) of the Internal Revenue Code. E-file prior year tax return Mineral exploration and development costs. E-file prior year tax return For more information, see Exploration Costs and Development Costs in chapter 7 of Publication 535. E-file prior year tax return For more information on corporate preference items, see section 291 of the Internal Revenue Code. E-file prior year tax return Dividends-Received Deduction A corporation can deduct a percentage of certain dividends received during its tax year. E-file prior year tax return This section discusses the general rules that apply. E-file prior year tax return The deduction is figured on Form 1120, Schedule C, or the applicable schedule of your income tax return. E-file prior year tax return For more information, see the Instructions for Form 1120, or the instructions for your applicable income tax return. E-file prior year tax return Dividends from domestic corporations. E-file prior year tax return   A corporation can deduct, within certain limits, 70% of the dividends received if the corporation receiving the dividend owns less than 20% of the corporation distributing the dividend. E-file prior year tax return If the corporation owns 20% or more of the distributing corporation's stock, it can, subject to certain limits, deduct 80% of the dividends received. E-file prior year tax return Ownership. E-file prior year tax return   Determine ownership, for these rules, by the amount of voting power and value of the paying corporation's stock (other than certain preferred stock) the receiving corporation owns. E-file prior year tax return Small business investment companies. E-file prior year tax return   Small business investment companies can deduct 100% of the dividends received from taxable domestic corporations. E-file prior year tax return Dividends from regulated investment companies. E-file prior year tax return   Regulated investment company dividends received are subject to certain limits. E-file prior year tax return Capital gain dividends received from a regulated investment company do not qualify for the deduction. E-file prior year tax return For more information, see section 854 of the Internal Revenue Code. E-file prior year tax return No deduction allowed for certain dividends. E-file prior year tax return   Corporations cannot take a deduction for dividends received from the following entities. E-file prior year tax return A real estate investment trust (REIT). E-file prior year tax return A corporation exempt from tax under section 501 or 521 of the Internal Revenue Code either for the tax year of the distribution or the preceding tax year. E-file prior year tax return A corporation whose stock was held less than 46 days during the 91-day period beginning 45 days before the stock became ex-dividend with respect to the dividend. E-file prior year tax return Ex-dividend means the holder has no rights to the dividend. E-file prior year tax return A corporation whose preferred stock was held less than 91 days during the 181-day period beginning 90 days before the stock became ex-dividend with respect to the dividend if the dividends received are for a period or periods totaling more than 366 days. E-file prior year tax return Any corporation, if your corporation is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. E-file prior year tax return Dividends on deposits. E-file prior year tax return   Dividends on deposits or withdrawable accounts in domestic building and loan associations, mutual savings banks, cooperative banks, and similar organizations are interest, not dividends. E-file prior year tax return They do not qualify for this deduction. E-file prior year tax return Limit on deduction for dividends. E-file prior year tax return   The total deduction for dividends received or accrued is generally limited (in the following order) to: 80% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from 20%-owned corporations, then 70% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from less-than-20%-owned corporations (reducing taxable income by the total dividends received from 20%-owned corporations). E-file prior year tax return Figuring the limit. E-file prior year tax return   In figuring the limit, determine taxable income without the following items. E-file prior year tax return The net operating loss deduction. E-file prior year tax return The domestic production activities deduction. E-file prior year tax return The deduction for dividends received. E-file prior year tax return Any adjustment due to the nontaxable part of an extraordinary dividend (see Extraordinary Dividends, below). E-file prior year tax return Any capital loss carryback to the tax year. E-file prior year tax return Effect of net operating loss. E-file prior year tax return   If a corporation has a net operating loss (NOL) for a tax year, the limit of 80% (or 70%) of taxable income does not apply. E-file prior year tax return To determine whether a corporation has an NOL, figure the dividends-received deduction without the 80% (or 70%) of taxable income limit. E-file prior year tax return Example 1. E-file prior year tax return A corporation loses $25,000 from operations. E-file prior year tax return It receives $100,000 in dividends from a 20%-owned corporation. E-file prior year tax return Its taxable income is $75,000 ($100,000 – $25,000) before the deduction for dividends received. E-file prior year tax return If it claims the full dividends-received deduction of $80,000 ($100,000 × 80%) and combines it with an operations loss of $25,000, it will have an NOL of ($5,000). E-file prior year tax return Therefore, the 80% of taxable income limit does not apply. E-file prior year tax return The corporation can deduct the full $80,000. E-file prior year tax return Example 2. E-file prior year tax return Assume the same facts as in Example 1, except that the corporation only loses $15,000 from operations. E-file prior year tax return Its taxable income is $85,000 before the deduction for dividends received. E-file prior year tax return After claiming the dividends-received deduction of $80,000 ($100,000 × 80%), its taxable income is $5,000. E-file prior year tax return Because the corporation will not have an NOL after applying a full dividends-received deduction, its allowable dividends-received deduction is limited to 80% of its taxable income, or $68,000 ($85,000 × 80%). E-file prior year tax return Extraordinary Dividends If a corporation receives an extraordinary dividend on stock held 2 years or less before the dividend announcement date, it generally must reduce its basis in the stock by the nontaxed part of the dividend. E-file prior year tax return The nontaxed part is any dividends-received deduction allowable for the dividends. E-file prior year tax return Extraordinary dividend. E-file prior year tax return   An extraordinary dividend is any dividend on stock that equals or exceeds a certain percentage of the corporation's adjusted basis in the stock. E-file prior year tax return The percentages are: 5% for stock preferred as to dividends, or 10% for other stock. E-file prior year tax return Treat all dividends received that have ex-dividend dates within an 85-consecutive-day period as one dividend. E-file prior year tax return Treat all dividends received that have ex-dividend dates within a 365-consecutive-day period as extraordinary dividends if the total of the dividends exceeds 20% of the corporation's adjusted basis in the stock. E-file prior year tax return Disqualified preferred stock. E-file prior year tax return   Any dividend on disqualified preferred stock is treated as an extraordinary dividend regardless of the period of time the corporation held the stock. E-file prior year tax return   Disqualified preferred stock is any stock preferred as to dividends if any of the following apply. E-file prior year tax return The stock when issued has a dividend rate that declines (or can reasonably be expected to decline) in the future. E-file prior year tax return The issue price of the stock exceeds its liquidation rights or stated redemption price. E-file prior year tax return The stock is otherwise structured to avoid the rules for extraordinary dividends and to enable corporate shareholders to reduce tax through a combination of dividends-received deductions and loss on the disposition of the stock. E-file prior year tax return   These rules apply to stock issued after July 10, 1989, unless it was issued under a written binding contract in effect on that date, and thereafter, before the issuance of the stock. E-file prior year tax return More information. E-file prior year tax return   For more information on extraordinary dividends, see section 1059 of the Internal Revenue Code. E-file prior year tax return Below-Market Loans If a corporation receives a below-market loan and uses the proceeds for its trade or business, it may be able to deduct the forgone interest. E-file prior year tax return A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. E-file prior year tax return A below-market loan generally is treated as an arm's-length transaction in which the borrower is considered as having received both the following: A loan in exchange for a note that requires payment of interest at the applicable federal rate, and An additional payment in an amount equal to the forgone interest. E-file prior year tax return Treat the additional payment as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction. E-file prior year tax return Foregone interest. E-file prior year tax return   For any period, forgone interest is equal to: The interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. E-file prior year tax return See Below-market loans, in chapter 4 of Publication 535 for more information. E-file prior year tax return Charitable Contributions A corporation can claim a limited deduction for charitable contributions made in cash or other property. E-file prior year tax return The contribution is deductible if made to, or for the use of, a qualified organization. E-file prior year tax return For more information on qualified organizations, see Publication 526, Charitable Contributions. E-file prior year tax return Also see, Exempt Organizations Select Check (EO Select Check) at www. E-file prior year tax return irs. E-file prior year tax return gov/charities, the on-line search tool for finding information on organizations eligible to receive tax-deductible contributions. E-file prior year tax return Note. E-file prior year tax return You cannot take a deduction if any of the net earnings of an organization receiving contributions benefit any private shareholder or individual. E-file prior year tax return Cash method corporation. E-file prior year tax return   A corporation using the cash method of accounting deducts contributions in the tax year paid. E-file prior year tax return Accrual method corporation. E-file prior year tax return   A corporation using an accrual method of accounting can choose to deduct unpaid contributions for the tax year the board of directors authorizes them if it pays them by the 15th day of the 3rd month after the close of that tax year. E-file prior year tax return Make the choice by reporting the contribution on the corporation's return for the tax year. E-file prior year tax return A declaration stating that the board of directors adopted the resolution during the tax year must accompany the return. E-file prior year tax return The declaration must include the date the resolution was adopted. E-file prior year tax return Limitations on deduction. E-file prior year tax return   A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year. E-file prior year tax return Figure taxable income for this purpose without the following. E-file prior year tax return The deduction for charitable contributions. E-file prior year tax return The dividends-received deduction. E-file prior year tax return The deduction allowed under section 249 of the Internal Revenue Code. E-file prior year tax return The domestic production activities deduction. E-file prior year tax return Any net operating loss carryback to the tax year. E-file prior year tax return Any capital loss carryback to the tax year. E-file prior year tax return Farmers and ranchers. E-file prior year tax return    Corporations that are farmers and ranchers should see section 170(b)(2) of the Internal Revenue Code for special rules that may affect the deduction limit. E-file prior year tax return Carryover of excess contributions. E-file prior year tax return   You can carry over, within certain limits, to each of the subsequent 5 years any charitable contributions made during the current year that exceed the 10% limit. E-file prior year tax return You lose any excess not used within that period. E-file prior year tax return For example, if a corporation has a carryover of excess contributions paid in 2010 and it does not use all the excess on its return for 2011, it can carry any excess over to 2012, 2013, 2014, and 2015, if applicable. E-file prior year tax return Any excess not used in 2015 is lost. E-file prior year tax return Do not deduct a carryover of excess contributions in the carryover year until after you deduct contributions made in that year (subject to the 10% limit). E-file prior year tax return You cannot deduct a carryover of excess contributions to the extent it increases a net operating loss carryover. E-file prior year tax return Cash contributions. E-file prior year tax return   A corporation must maintain a record of any contribution of cash, check, or other monetary contribution, regardless of the amount. E-file prior year tax return The record can be a bank record, receipt, letter, or other written communication from the donee indicating the name of the organization, the date of the contribution, and the amount of the contribution. E-file prior year tax return Keep the record of the contribution with the other corporate records. E-file prior year tax return Do not attach the records to the corporation's return. E-file prior year tax return For more information on cash contributions, see Publication 526. E-file prior year tax return Gifts of $250 or more. E-file prior year tax return   Generally, no deduction is allowed for any contribution of $250 or more unless the corporation gets a written acknowledgement from the donee organization. E-file prior year tax return The acknowledgement should show the amount of cash contributed, a description of the property contributed, and either gives a description and a good faith estimate of the value of any goods or services provided in return for the contribution or states that no goods or services were provided in return for the contribution. E-file prior year tax return The acknowledgement should be received by the due date (including extensions) of the return, or, if earlier, the date the return was filed. E-file prior year tax return Keep the acknowledgement with other corporate records. E-file prior year tax return Do not attach the acknowledgement to the return. E-file prior year tax return Contributions of property other than cash. E-file prior year tax return   If a corporation (other than a closely-held or a personal service corporation) claims a deduction of more than $500 for contributions of property other than cash, a schedule describing the property and the method used to determine its fair market value must be attached to the corporation's return. E-file prior year tax return In addition the corporation should keep a record of: The approximate date and manner of acquisition of the donated property and The cost or other basis of the donated property held by the donor for less than 12 months prior to contribution. E-file prior year tax return   Closely held and personal service corporations must complete and attach Form 8283, Noncash Charitable Contributions, to their returns if they claim a deduction of more than $500 for non-cash contributions. E-file prior year tax return For all other corporations, if the deduction claimed for donated property exceeds $5,000, complete Form 8283 and attach it to the corporation's return. E-file prior year tax return   A corporation must obtain a qualified appraisal for all deductions of property claimed in excess of $5,000. E-file prior year tax return A qualified appraisal is not required for the donation of cash, publicly traded securities, inventory, and any qualified vehicles sold by a donee organization without any significant intervening use or material improvement. E-file prior year tax return The appraisal should be maintained with other corporate records and only attached to the corporation's return when the deduction claimed exceeds $500,000; $20,000 for donated art work. E-file prior year tax return   See Form 8283 for more information. E-file prior year tax return Qualified conservation contributions. E-file prior year tax return   If a corporation makes a qualified conservation contribution, the corporation must provide information regarding the legal interest being donated, the fair market value of the underlying property before and after the donation, and a description of the conservation purpose for which the property will be used. E-file prior year tax return For more information, see section 170(h) of the Internal Revenue Code. E-file prior year tax return Contributions of used vehicles. E-file prior year tax return   A corporation is allowed a deduction for the contribution of used motor vehicles, boats, and airplanes. E-file prior year tax return The deduction is limited, and other special rules apply. E-file prior year tax return For more information, see Publication 526. E-file prior year tax return Reduction for contributions of certain property. E-file prior year tax return   For a charitable contribution of property, the corporation must reduce the contribution by the sum of: The ordinary income and short-term capital gain that would have resulted if the property were sold at its FMV and For certain contributions, the long-term capital gain that would have resulted if the property were sold at its FMV. E-file prior year tax return   The reduction for the long-term capital gain applies to: Contributions of tangible personal property for use by an exempt organization for a purpose or function unrelated to the basis for its exemption; Contributions of any property to or for the use of certain private foundations except for stock for which market quotations are readily available; and Contributions of any patent, certain copyrights, trademark, trade name, trade secret, know-how, software (that is a section 197 intangible), or similar property, or applications or registrations of such property. E-file prior year tax return Larger deduction. E-file prior year tax return   A corporation (other than an S corporation) may be able to claim a deduction equal to the lesser of (a) the basis of the donated inventory or property plus one-half of the inventory or property's appreciation (gain if the donated inventory or property was sold at fair market value on the date of the donation), or (b) two times basis of the donated inventory or property. E-file prior year tax return This deduction may be allowed for certain contributions of: Certain inventory and other property made to a donee organization and used solely for the care of the ill, the needy, and infants. E-file prior year tax return Scientific property constructed by the corporation (other than an S corporation, personal holding company, or personal service corporation) and donated no later than 2 years after substantial completion of the construction. E-file prior year tax return The property must be donated to a qualified organization and its original use must be by the donee for research, experimentation, or research training within the United States in the area of physical or biological science. E-file prior year tax return Computer technology and equipment acquired or constructed and donated no later than 3 years after either acquisition or substantial completion of construction to an educational organization for educational purposes within the United States. E-file prior year tax return Contributions to organizations conducting lobbying activities. E-file prior year tax return   Contributions made to an organization that conducts lobbying activities are not deductible if: The lobbying activities relate to matters of direct financial interest to the donor's trade or business and The principal purpose of the contribution was to avoid federal income tax by obtaining a deduction for activities that would have been nondeductible under the lobbying expense rules if conducted directly by the donor. E-file prior year tax return More information. E-file prior year tax return   For more information on charitable contributions, including substantiation and recordkeeping requirements, see section 170 of the Internal Revenue Code, the related regulations, and Publication 526. E-file prior year tax return Capital Losses A corporation can deduct capital losses only up to the amount of its capital gains. E-file prior year tax return In other words, if a corporation has an excess capital loss, it cannot deduct the loss in the current tax year. E-file prior year tax return Instead, it carries the loss to other tax years and deducts it from any net capital gains that occur in those years. E-file prior year tax return A capital loss is carried to other years in the following order. E-file prior year tax return 3 years prior to the loss year. E-file prior year tax return 2 years prior to the loss year. E-file prior year tax return 1 year prior to the loss year. E-file prior year tax return Any loss remaining is carried forward for 5 years. E-file prior year tax return When you carry a net capital loss to another tax year, treat it as a short-term loss. E-file prior year tax return It does not retain its original identity as long term or short term. E-file prior year tax return Example. E-file prior year tax return A calendar year corporation has a net short-term capital gain of $3,000 and a net long-term capital loss of $9,000. E-file prior year tax return The short-term gain offsets some of the long-term loss, leaving a net capital loss of $6,000. E-file prior year tax return The corporation treats this $6,000 as a short-term loss when carried back or forward. E-file prior year tax return The corporation carries the $6,000 short-term loss back 3 years. E-file prior year tax return In year 1, the corporation had a net short-term capital gain of $8,000 and a net long-term capital gain of $5,000. E-file prior year tax return It subtracts the $6,000 short-term loss first from the net short-term gain. E-file prior year tax return This results in a net capital gain for year 1 of $7,000. E-file prior year tax return This consists of a net short-term capital gain of $2,000 ($8,000 − $6,000) and a net long-term capital gain of $5,000. E-file prior year tax return S corporation status. E-file prior year tax return   A corporation may not carry a capital loss from, or to, a year for which it is an S corporation. E-file prior year tax return Rules for carryover and carryback. E-file prior year tax return   When carrying a capital loss from one year to another, the following rules apply. E-file prior year tax return When figuring the current year's net capital loss, you cannot combine it with a capital loss carried from another year. E-file prior year tax return In other words, you can carry capital losses only to years that would otherwise have a total net capital gain. E-file prior year tax return If you carry capital losses from 2 or more years to the same year, deduct the loss from the earliest year first. E-file prior year tax return You cannot use a capital loss carried from another year to produce or increase a net operating loss in the year to which you carry it back. E-file prior year tax return Refunds. E-file prior year tax return   When you carry back a capital loss to an earlier tax year, refigure your tax for that year. E-file prior year tax return If your corrected tax is less than the tax you originally owed, use either Form 1139, Corporate Application for Tentative Refund, or Form 1120X, Amended U. E-file prior year tax return S. E-file prior year tax return Corporation Income Tax Return, to apply for a refund. E-file prior year tax return Form 1139. E-file prior year tax return    A corporation can get a refund faster by using Form 1139. E-file prior year tax return It cannot file Form 1139 before filing the return for the corporation's capital loss year, but it must file Form 1139 no later than 1 year after the year it sustains the capital loss. E-file prior year tax return Form 1120X. E-file prior year tax return   If the corporation does not file Form 1139, it must file Form 1120X to apply for a refund. E-file prior year tax return The corporation must file the Form 1120X within 3 years of the due date, includin