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Federal 1040ez

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Federal 1040ez

Federal 1040ez 7. Federal 1040ez   Filing Information Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: What, When, and Where To FileResident Aliens Nonresident Aliens Amended Returns and Claims for Refund Other Forms You May Have To File PenaltiesCivil Penalties Criminal Penalties Introduction This chapter provides the basic filing information that you may need. Federal 1040ez Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. Federal 1040ez Useful Items - You may want to see: Forms (and Instructions) 1040 U. Federal 1040ez S. Federal 1040ez Individual Income Tax Return 1040A U. Federal 1040ez S. Federal 1040ez Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. Federal 1040ez S. Federal 1040ez Nonresident Alien Income Tax Return 1040NR-EZ U. Federal 1040ez S. Federal 1040ez Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. Federal 1040ez What, When, and Where To File What return you must file as well as when and where you file that return, depends on your status at the end of the tax year as a resident or a nonresident alien. Federal 1040ez Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. Federal 1040ez The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later). Federal 1040ez Under U. Federal 1040ez S. Federal 1040ez immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. Federal 1040ez Extensions of time to file. Federal 1040ez   You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15. Federal 1040ez You can get an extension of time to October 15 to file your return if you get an extension by April 15 (June 15 if you qualify for the June 15 extension). Federal 1040ez Use Form 4868 to get the extension to October 15. Federal 1040ez In addition to this 6-month extension, taxpayers who are out of the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Federal 1040ez To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Federal 1040ez Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Federal 1040ez   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U. Federal 1040ez S. Federal 1040ez citizens and resident aliens abroad who expect to qualify for special tax treatment). Federal 1040ez    If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday, Sunday, or legal holiday. Federal 1040ez You may be able to file your return electronically. Federal 1040ez See IRS e-file in your form instructions. Federal 1040ez Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. Federal 1040ez If you are any of the following, you must file a return. Federal 1040ez A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. Federal 1040ez (But see Exceptions , later. Federal 1040ez ) You must file even if: Your income did not come from a trade or business conducted in the United States, You have no income from U. Federal 1040ez S. Federal 1040ez sources, or Your income is exempt from income tax. Federal 1040ez A nonresident alien individual not engaged in a trade or business in the United States with U. Federal 1040ez S. Federal 1040ez income on which the tax liability was not satisfied by the withholding of tax at the source. Federal 1040ez A representative or agent responsible for filing the return of an individual described in (1) or (2). Federal 1040ez A fiduciary for a nonresident alien estate or trust. Federal 1040ez You must also file if you want to: Claim a refund of overwithheld or overpaid tax, or Claim the benefit of any deductions or credits. Federal 1040ez For example, if you have no U. Federal 1040ez S. Federal 1040ez business activities but have income from real property that you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to take any allowable deductions against that income. Federal 1040ez For information on what is timely, see When to file for deductions and credits under When To File, later. Federal 1040ez Exceptions. Federal 1040ez   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. Federal 1040ez Your only U. Federal 1040ez S. Federal 1040ez trade or business was the performance of personal services, and Your wages were less than $3,900, and You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty. Federal 1040ez You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Federal 1040ez Even if you have left the United States and filed a Form 1040-C, U. Federal 1040ez S. Federal 1040ez Departing Alien Income Tax Return, on departure, you still must file an annual U. Federal 1040ez S. Federal 1040ez income tax return. Federal 1040ez If you are married and both you and your spouse are required to file, you must each file a separate return. Federal 1040ez Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. Federal 1040ez You do not claim any dependents. Federal 1040ez You cannot be claimed as a dependent on someone else's U. Federal 1040ez S. Federal 1040ez tax return. Federal 1040ez If you were married, you do not claim an exemption for your spouse. Federal 1040ez Your taxable income is less than $100,000. Federal 1040ez The only itemized deduction you can claim is for state and local income taxes. Federal 1040ez Note. Federal 1040ez Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state and local income taxes. Federal 1040ez See chapter 5. Federal 1040ez Your only U. Federal 1040ez S. Federal 1040ez source income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. Federal 1040ez (If you had taxable interest or dividend income, you cannot use this form. Federal 1040ez ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. Federal 1040ez You are not claiming any tax credits. Federal 1040ez This is not an “expatriation return. Federal 1040ez ” See Expatriation Tax in chapter 4. Federal 1040ez The only taxes you owe are: The income tax from the Tax Table. Federal 1040ez The social security and Medicare tax from Form 4137 or Form 8919. Federal 1040ez You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. Federal 1040ez You are not filing Form 8959, to figure the amount of Additional Medicare Tax you owe and/or the amount of Additional Medicare Tax withheld by your employer, if any. Federal 1040ez If you do not meet all of the above conditions, you must file Form 1040NR. Federal 1040ez When To File If you are an employee and you receive wages subject to U. Federal 1040ez S. Federal 1040ez income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. Federal 1040ez For the 2013 calendar year, file your return by April 15, 2014. Federal 1040ez If you are not an employee who receives wages subject to U. Federal 1040ez S. Federal 1040ez income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Federal 1040ez For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. Federal 1040ez ) Extensions of time to file. Federal 1040ez   If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained in the Form 4868 instructions. Federal 1040ez For the 2013 calendar year, this will extend the due date to October 15, 2014 (December 15, 2014, if the regular due date of your return is June 16, 2014). Federal 1040ez You must file the extension by the regular due date of your return. Federal 1040ez   In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States and Puerto Rico and who live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December 15 for calendar year taxpayers). Federal 1040ez To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Federal 1040ez Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Federal 1040ez When to file for deductions and credits. Federal 1040ez   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. Federal 1040ez For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. Federal 1040ez However, if you did not file a 2012 tax return and 2013 is not the first year for which you are required to file one, your 2013 return is timely for this purpose if it is filed by the earlier of: The date that is 16 months after the due date for filing your 2013 return, or The date the IRS notifies you that your 2013 return has not been filed and that you cannot claim certain deductions and credits. Federal 1040ez The allowance of the following credits is not affected by this time requirement. Federal 1040ez Credit for withheld taxes. Federal 1040ez Credit for excise tax on certain uses of gasoline and special fuels. Federal 1040ez Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed long-term capital gains. Federal 1040ez Protective return. Federal 1040ez   If your activities in the United States were limited and you do not believe that you had any gross income effectively connected with a U. Federal 1040ez S. Federal 1040ez trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. Federal 1040ez By filing a protective return, you protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. Federal 1040ez You are not required to report any effectively connected income or any deductions on the protective return, but you must give the reason the return is being filed. Federal 1040ez   If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. Federal 1040ez To protect your right to claim deductions or credits resulting from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income. Federal 1040ez   You can follow the same procedure if you believe you have no U. Federal 1040ez S. Federal 1040ez tax liability because of a U. Federal 1040ez S. Federal 1040ez tax treaty. Federal 1040ez Be sure to also complete item L on page 5 of Form 1040NR. Federal 1040ez Waiver of filing deadline. Federal 1040ez   The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably and in good faith in failing to file a U. Federal 1040ez S. Federal 1040ez income tax return (including a protective return) and you cooperate with the IRS in determining your U. Federal 1040ez S. Federal 1040ez income tax liability for the tax year for which you did not file a return. Federal 1040ez Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. Federal 1040ez  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. Federal 1040ez O. Federal 1040ez Box 1303 Charlotte, NC 28201-1303 Aliens from the U. Federal 1040ez S. Federal 1040ez Virgin Islands. Federal 1040ez    If you are a bona fide resident of the U. Federal 1040ez S. Federal 1040ez Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. Federal 1040ez S. Federal 1040ez Virgin Islands and file your income tax returns at the following address. Federal 1040ez Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Federal 1040ez Thomas, VI 00802   Report all income from U. Federal 1040ez S. Federal 1040ez sources, as well as income from other sources, on your return. Federal 1040ez For information on filing U. Federal 1040ez S. Federal 1040ez Virgin Islands returns, contact the U. Federal 1040ez S. Federal 1040ez Virgin Islands Bureau of Internal Revenue. Federal 1040ez   Chapter 8 discusses withholding from U. Federal 1040ez S. Federal 1040ez wages of U. Federal 1040ez S. Federal 1040ez Virgin Islanders. Federal 1040ez Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Federal 1040ez   If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you must file your return with, and pay any tax due to, Guam or the CNMI. Federal 1040ez Report all income, including income from U. Federal 1040ez S. Federal 1040ez sources, on your return. Federal 1040ez It is not necessary to file a separate U. Federal 1040ez S. Federal 1040ez income tax return. Federal 1040ez    Bona fide residents of Guam should file their Guam returns at the following address. Federal 1040ez   Department of Revenue and Taxation Government of Guam P. Federal 1040ez O. Federal 1040ez Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. Federal 1040ez   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Federal 1040ez O. Federal 1040ez Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. Federal 1040ez 570, Tax Guide for Individuals With Income From U. Federal 1040ez S. Federal 1040ez Possessions, for information on where to file your return. Federal 1040ez Amended Returns and Claims for Refund If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U. Federal 1040ez S. Federal 1040ez Individual Income Tax Return. Federal 1040ez Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa. Federal 1040ez If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. Federal 1040ez ) to Form 1040X. Federal 1040ez Print “Amended” across the top. Federal 1040ez Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later. Federal 1040ez A return filed before the final due date is considered to have been filed on the due date. Federal 1040ez Other Forms You May Have To File You may be required to file information returns to report certain foreign income or assets, or monetary transactions. Federal 1040ez FinCen Form 105 FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or other monetary instruments in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States. Federal 1040ez The filing requirement also applies to each person who receives in the United States currency or monetary instruments totaling more than $10,000 at one time from any place outside of the United States. Federal 1040ez The term “monetary instruments” means the following: Coin and currency of the United States or of any other country, Travelers' checks in any form, Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery, Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title to them passes upon delivery, and Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted. Federal 1040ez However, the term does not include: Checks or money orders made payable to the order of a named person which have not been endorsed or which contain restrictive endorsements, Warehouse receipts, or Bills of lading. Federal 1040ez A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of currency or monetary instruments is not required to be reported on FinCEN Form 105. Federal 1040ez Filing requirements. Federal 1040ez   FinCEN Form 105 filing requirements follow. Federal 1040ez Recipients. Federal 1040ez   Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within 15 days after receipt, with the Customs officer in charge at any port of entry or departure, or by mail at the following address. Federal 1040ez Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. Federal 1040ez   If the currency or other monetary instrument does not accompany the person entering or departing the United States, FinCEN Form 105 can be filed by mail at the above address on or before the date of entry, departure, mailing, or shipping. Federal 1040ez Travelers. Federal 1040ez   Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure, when entering or departing the United States. Federal 1040ez Penalties. Federal 1040ez   Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions or misstatements, or filing a false or fraudulent report. Federal 1040ez Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. Federal 1040ez More information. Federal 1040ez   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. Federal 1040ez Form 8938 You may have to file Form 8938, Statement of Specified Foreign Financial Assets, to report the ownership of specified foreign financial asset(s) if you are one of the following individuals. Federal 1040ez A resident alien of the United States for any part of the tax year. Federal 1040ez A resident alien of the United States who elects to be treated as a resident of a foreign country under the provisions of a U. Federal 1040ez S. Federal 1040ez income tax treaty. Federal 1040ez See Effect of Tax Treaties in chapter 1. Federal 1040ez A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. Federal 1040ez See chapter 1 for information about this election. Federal 1040ez A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. Federal 1040ez See Publication 570, Tax Guide for Individuals With Income From U. Federal 1040ez S. Federal 1040ez Possessions, for a definition of bona fide resident. Federal 1040ez You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). Federal 1040ez The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Federal 1040ez Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Federal 1040ez S. Federal 1040ez person. Federal 1040ez You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Federal 1040ez More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Federal 1040ez Penalties The law provides penalties for failure to file returns or pay taxes as required. Federal 1040ez Civil Penalties If you do not file your return and pay your tax by the due date, you may have to pay a penalty. Federal 1040ez You may also have to pay a penalty if you substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number. Federal 1040ez If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. Federal 1040ez Filing late. Federal 1040ez   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. Federal 1040ez The penalty is based on the tax not paid by the due date (without regard to extensions). Federal 1040ez The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. Federal 1040ez Fraud. Federal 1040ez   If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%. Federal 1040ez Return over 60 days late. Federal 1040ez   If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Federal 1040ez Exception. Federal 1040ez   You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect. Federal 1040ez Paying tax late. Federal 1040ez   You will have to pay a failure-to-pay penalty of ½ of 1% (. Federal 1040ez 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. Federal 1040ez This penalty does not apply during the automatic 6-month extension of time to file period, if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return. Federal 1040ez   The monthly rate of the failure-to-pay penalty is half the usual rate (. Federal 1040ez 25% instead of . Federal 1040ez 50%) if an installment agreement is in effect for that month. Federal 1040ez You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. Federal 1040ez   If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued. Federal 1040ez If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued. Federal 1040ez   This penalty cannot be more than 25% of your unpaid tax. Federal 1040ez You will not have to pay the penalty if you can show that you had a good reason for not paying your tax on time. Federal 1040ez Combined penalties. Federal 1040ez   If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. Federal 1040ez However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Federal 1040ez Accuracy-related penalty. Federal 1040ez   You may have to pay an accuracy-related penalty if you underpay your tax because: You show negligence or disregard of rules or regulations, You substantially understate your income tax, You claim tax benefits for a transaction that lacks economic substance, or You fail to disclose a foreign financial asset. Federal 1040ez The penalty is equal to 20% of the underpayment. Federal 1040ez The penalty is 40% of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction. Federal 1040ez The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. Federal 1040ez Negligence or disregard. Federal 1040ez   The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. Federal 1040ez Negligence also includes failure to keep adequate books and records. Federal 1040ez You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. Federal 1040ez   The term “disregard” includes any careless, reckless, or intentional disregard. Federal 1040ez Adequate disclosure. Federal 1040ez   You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. Federal 1040ez See Disclosure statement , later. Federal 1040ez   This exception will not apply to an item that is attributable to a tax shelter. Federal 1040ez In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. Federal 1040ez Substantial understatement of income tax. Federal 1040ez   You understate your tax if the tax shown on your return is less than the correct tax. Federal 1040ez The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. Federal 1040ez However, the amount of the understatement is reduced to the extent the understatement is due to: Substantial authority, or Adequate disclosure and a reasonable basis. Federal 1040ez   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. Federal 1040ez However, there is a reduction for a position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not the proper treatment. Federal 1040ez Substantial authority. Federal 1040ez   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. Federal 1040ez Consideration will be given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal Revenue Bulletin that involve the same or similar circumstances as yours. Federal 1040ez Disclosure statement. Federal 1040ez   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. Federal 1040ez You must also have a reasonable basis for treating the item the way you did. Federal 1040ez   In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2012-51, 2012-51 IRB 719 (or later update) are considered adequately disclosed on your return without filing Form 8275. Federal 1040ez   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. Federal 1040ez Transaction lacking economic substance. Federal 1040ez   For more information on economic substance, see section 7701(o). Federal 1040ez Foreign financial asset. Federal 1040ez   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. Federal 1040ez Reasonable cause. Federal 1040ez   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. Federal 1040ez You must also show that you acted in good faith. Federal 1040ez This does not apply to a transaction that lacks economic substance. Federal 1040ez Filing erroneous claim for refund or credit. Federal 1040ez   You may have to pay a penalty if you file an erroneous claim for refund or credit. Federal 1040ez The penalty is equal to 20% of the disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. Federal 1040ez However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. Federal 1040ez The penalty will not be figured on any part of the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties are charged. Federal 1040ez Frivolous tax submission. Federal 1040ez   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. Federal 1040ez A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported is substantially incorrect. Federal 1040ez For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see Notice 2010-33, 2010-17 IRB 609 available at www. Federal 1040ez irs. Federal 1040ez gov/irb/2010-17_irb/ar13. Federal 1040ez html. Federal 1040ez   You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal tax laws. Federal 1040ez This includes altering or striking out the preprinted language above the space provided for your signature. Federal 1040ez   This penalty is added to any other penalty provided by law. Federal 1040ez Fraud. Federal 1040ez   If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax. Federal 1040ez Failure to supply taxpayer identification number. Federal 1040ez   If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the SSN or ITIN of another person where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. Federal 1040ez You will also be subject to a penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other document. Federal 1040ez   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. Federal 1040ez The number must be shown on the Form 1099-INT or other statement the bank sends you. Federal 1040ez If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. Federal 1040ez (You also may be subject to “backup” withholding of income tax. Federal 1040ez )   You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not willful neglect. Federal 1040ez Criminal Penalties You may be subject to criminal prosecution (brought to trial) for actions such as: Tax evasion, Willful failure to file a return, supply information, or pay any tax due, Fraud and false statements, or Preparing and filing a fraudulent return. Federal 1040ez Prev  Up  Next   Home   More Online Publications
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The Federal 1040ez

Federal 1040ez 7. Federal 1040ez   Ship Passenger Tax Table of Contents A tax of $3 per passenger is imposed on certain ship voyages, as explained later under Taxable situations. Federal 1040ez The tax is imposed only once for each passenger, either at the time of first embarkation or disembarkation in the United States. Federal 1040ez The person providing the voyage (the operator of the vessel) is liable for the tax. Federal 1040ez Voyage. Federal 1040ez   A voyage is the vessel's journey that includes the outward and homeward trips or passages. Federal 1040ez The voyage starts when the vessel begins to load passengers and continues until the vessel has completed at least one outward and one homeward passage. Federal 1040ez The tax may be imposed even if a passenger does not make both an outward and a homeward passage as long as the voyage begins or ends in the United States. Federal 1040ez Passenger. Federal 1040ez   A passenger is an individual carried on the vessel other than the Master or a crew member or other individual engaged in the business of the vessel or its owners. Federal 1040ez Example 1. Federal 1040ez John Smith works as a guest lecturer. Federal 1040ez The cruise line hired him for the benefit of the passengers. Federal 1040ez Therefore, he is engaged in the business of the vessel and is not a passenger. Federal 1040ez Example 2. Federal 1040ez Marian Green is a travel agent. Federal 1040ez She is taking the cruise as a promotional trip to determine if she wants to offer it to her clients. Federal 1040ez She is a passenger. Federal 1040ez Taxable situations. Federal 1040ez   There are two taxable situations. Federal 1040ez The first situation involves voyages on commercial passenger vessels extending over one or more nights. Federal 1040ez A voyage extends over one or more nights if it extends for more than 24 hours. Federal 1040ez A passenger vessel is any vessel with stateroom or berth accommodations for more than 16 passengers. Federal 1040ez   The second situation involves voyages on a commercial vessel transporting passengers engaged in gambling on the vessel beyond the territorial waters of the United States. Federal 1040ez Territorial waters of the United States are those waters within the international boundary line between the United States and any contiguous foreign country or within 3 nautical miles (3. Federal 1040ez 45 statute miles) from low tide on the coastline. Federal 1040ez If passengers participate as players in any policy game or other lottery, or any other game of chance for money or other thing of value that the owner or operator of the vessel (or their employee, agent, or franchisee) conducts, sponsors, or operates, the voyage is subject to the ship passenger tax. Federal 1040ez The tax applies regardless of the duration of the voyage. Federal 1040ez A casual, friendly game of chance with other passengers that is not conducted, sponsored, or operated by the owner or operator is not gambling for determining if the voyage is subject to the ship passenger tax. Federal 1040ez Exemptions. Federal 1040ez   The tax does not apply when a vessel is on a voyage of less than 12 hours between 2 points in the United States or if a vessel is owned or operated by a state or local government. Federal 1040ez Prev  Up  Next   Home   More Online Publications