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Federal Income Tax Instructions 1040ez

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Federal Income Tax Instructions 1040ez

Federal income tax instructions 1040ez 3. Federal income tax instructions 1040ez   Abandonments Table of Contents You abandon property when you voluntarily and permanently give up possession and use of the property with the intention of ending your ownership but without passing it on to anyone else. Federal income tax instructions 1040ez Whether an abandonment has occurred is determined in light of all the facts and circumstances. Federal income tax instructions 1040ez You must both show an intention to abandon the property and affirmatively act to abandon the property. Federal income tax instructions 1040ez A voluntary conveyance of the property in lieu of foreclosure is not an abandonment and is treated as the exchange of property to satisfy a debt. Federal income tax instructions 1040ez For more information, see Sales and Exchanges in Publication 544. Federal income tax instructions 1040ez The tax consequences of abandonment of property that secures a debt depend on whether you were personally liable for the debt (recourse debt) or were not personally liable for the debt (nonrecourse debt). Federal income tax instructions 1040ez See Publication 544 if you abandoned property that did not secure debt. Federal income tax instructions 1040ez This publication only discusses the tax consequences of abandoning property that secured a debt. Federal income tax instructions 1040ez Abandonment of property securing recourse debt. Federal income tax instructions 1040ez    In most cases, if you abandon property that secures debt for which you are personally liable (recourse debt), you do not have gain or loss until the later foreclosure is completed. Federal income tax instructions 1040ez For details on figuring gain or loss on the foreclosure, see chapter 2. Federal income tax instructions 1040ez Example 1—abandonment of personal-use property securing recourse debt. Federal income tax instructions 1040ez In 2009, Anne purchased a home for $200,000. Federal income tax instructions 1040ez She borrowed the entire purchase price, for which she was personally liable, and gave the bank a mortgage on the home. Federal income tax instructions 1040ez In 2013, Anne lost her job and was unable to continue making her mortgage loan payments. Federal income tax instructions 1040ez Because her mortgage loan balance was $185,000 and the FMV of her home was only $150,000, Anne decided to abandon her home by permanently moving out on August 1, 2013. Federal income tax instructions 1040ez Because Anne was personally liable for the debt and the bank did not complete a foreclosure of the property in 2013, Anne has neither gain nor loss in tax year 2013 from abandoning the home. Federal income tax instructions 1040ez If the bank sells the house at a foreclosure sale in 2014, Anne will have to figure her gain or nondeductible loss for tax year 2014 as discussed earlier in chapter 2. Federal income tax instructions 1040ez Example 2—abandonment of business or investment property securing recourse debt. Federal income tax instructions 1040ez In 2009, Sue purchased business property for $200,000. Federal income tax instructions 1040ez She borrowed the entire purchase price, for which she was personally liable, and gave the lender a security interest in the property. Federal income tax instructions 1040ez In 2013, Sue was unable to continue making her loan payments. Federal income tax instructions 1040ez Because her loan balance was $185,000 and the FMV of the property was only $150,000, Sue abandoned the property on August 1, 2013. Federal income tax instructions 1040ez Because Sue was personally liable for the debt and the lender did not complete a foreclosure of the property in 2013, Sue has neither gain nor loss in tax year 2013 from abandoning the property. Federal income tax instructions 1040ez If the lender sells the property at a foreclosure sale in 2014, Sue will have to figure her gain or deductible loss for tax year 2014 as discussed earlier in chapter 2. Federal income tax instructions 1040ez Abandonment of property securing nonrecourse debt. Federal income tax instructions 1040ez    If you abandon property that secures debt for which you are not personally liable (nonrecourse debt), the abandonment is treated as a sale or exchange. Federal income tax instructions 1040ez   The amount you realize on the abandonment of property that secured nonrecourse debt is the amount of the nonrecourse debt. Federal income tax instructions 1040ez If the amount you realize is more than your adjusted basis, then you have a gain. Federal income tax instructions 1040ez If your adjusted basis is more than the amount you realize, then you have a loss. Federal income tax instructions 1040ez For more information on how to figure gain and loss, see Gain or Loss from Sales or Exchanges in Publication 544. Federal income tax instructions 1040ez   Loss from abandonment of business or investment property is deductible as a loss. Federal income tax instructions 1040ez The character of the loss depends on the character of the property. Federal income tax instructions 1040ez The amount of deductible capital loss may be limited. Federal income tax instructions 1040ez For more information, see Treatment of Capital Losses in Publication 544. Federal income tax instructions 1040ez You cannot deduct any loss from abandonment of your home or other property held for personal use. Federal income tax instructions 1040ez Example 1—abandonment of personal-use property securing nonrecourse debt. Federal income tax instructions 1040ez In 2009, Timothy purchased a home for $200,000. Federal income tax instructions 1040ez He borrowed the entire purchase price, for which he was not personally liable, and gave the bank a mortgage on the home. Federal income tax instructions 1040ez In 2013, Timothy lost his job and was unable to continue making his mortgage loan payments. Federal income tax instructions 1040ez Because his mortgage loan balance was $185,000 and the FMV of his home was only $150,000, Timothy decided to abandon his home by permanently moving out on August 1, 2013. Federal income tax instructions 1040ez Because Timothy was not personally liable for the debt, the abandonment is treated as a sale or exchange of the home in tax year 2013. Federal income tax instructions 1040ez Timothy's amount realized is $185,000 and his adjusted basis in the home is $200,000. Federal income tax instructions 1040ez Timothy has a $15,000 nondeductible loss in tax year 2013. Federal income tax instructions 1040ez (Had Timothy’s adjusted basis been less than the amount realized, Timothy would have had a gain that he would have to include in gross income. Federal income tax instructions 1040ez ) The bank sells the house at a foreclosure sale in 2014. Federal income tax instructions 1040ez Timothy has neither gain nor loss from the foreclosure sale. Federal income tax instructions 1040ez Because he was not personally liable for the debt, he also has no cancellation of debt income. Federal income tax instructions 1040ez Example 2—abandonment of business or investment property securing nonrecourse debt. Federal income tax instructions 1040ez In 2009, Robert purchased business property for $200,000. Federal income tax instructions 1040ez He borrowed the entire purchase price, for which he was not personally liable, and gave the lender a security interest in the property. Federal income tax instructions 1040ez In 2013, Robert was unable to continue making his loan payments. Federal income tax instructions 1040ez Because his loan balance was $185,000 and the FMV of the property was only $150,000, Robert decided to abandon the property on August 1, 2013. Federal income tax instructions 1040ez Because Robert was not personally liable for the debt, the abandonment is treated as a sale or exchange of the property in tax year 2013. Federal income tax instructions 1040ez Robert's amount realized is $185,000 and his adjusted basis in the property is $180,000 (as a result of $20,000 of depreciation deductions on the property). Federal income tax instructions 1040ez Robert has a $5,000 gain in tax year 2013. Federal income tax instructions 1040ez (Had Robert’s adjusted basis been greater than the amount realized, he would have had a deductible loss. Federal income tax instructions 1040ez ) The lender sells the property at a foreclosure sale in 2014. Federal income tax instructions 1040ez Robert has neither gain nor loss from the foreclosure sale. Federal income tax instructions 1040ez Because he was not personally liable for the debt, he also has no cancellation of debt income. Federal income tax instructions 1040ez Canceled debt. Federal income tax instructions 1040ez    If the abandoned property secures a debt for which you are personally liable and the debt is canceled, you will realize ordinary income equal to the canceled debt. Federal income tax instructions 1040ez This income is separate from any amount realized from abandonment of the property. Federal income tax instructions 1040ez You must report this income on your return unless one of the exceptions or exclusions described in chapter 1 applies. Federal income tax instructions 1040ez See chapter 1 for more details. Federal income tax instructions 1040ez Forms 1099-A and 1099-C. Federal income tax instructions 1040ez    In most cases, if you abandon real property (such as a home), intangible property, or tangible personal property held (wholly or partly) for use in a trade or business or for investment, that secures a loan and the lender knows the property has been abandoned, the lender should send you Form 1099-A showing information you need to figure your gain or loss from the abandonment. Federal income tax instructions 1040ez Also, if your debt is canceled and the lender must file Form 1099-C, the lender can include the information about the abandonment on that form instead of on Form 1099-A. Federal income tax instructions 1040ez The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Federal income tax instructions 1040ez For abandonments of property and debt cancellations occurring in 2013, these forms should be sent to you by January 31, 2014. Federal income tax instructions 1040ez Prev  Up  Next   Home   More Online Publications
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The Federal Income Tax Instructions 1040ez

Federal income tax instructions 1040ez Publication 1544 - Main Content Table of Contents Why Report These Payments? Who Must File Form 8300?What Payments Must Be Reported? What Is Cash? Taxpayer Identification Number (TIN) What Is a Related Transaction? What About Suspicious Transactions? When, Where, and What To File Examples Penalties How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Federal income tax instructions 1040ez Why Report These Payments? Drug dealers and smugglers often use large cash payments to “launder” money from illegal activities. Federal income tax instructions 1040ez Laundering means converting “dirty” or illegally-gained money to “clean” money. Federal income tax instructions 1040ez The government can often trace this laundered money through the payments you report. Federal income tax instructions 1040ez Laws passed by Congress require you to report these payments. Federal income tax instructions 1040ez Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. Federal income tax instructions 1040ez The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Federal income tax instructions 1040ez Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300. Federal income tax instructions 1040ez For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Federal income tax instructions 1040ez Special rules for clerks of federal or state courts are discussed later under Bail received by court clerks. Federal income tax instructions 1040ez However, you do not have to file Form 8300 if the transaction is not related to your trade or business. Federal income tax instructions 1040ez For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Federal income tax instructions 1040ez Transaction defined. Federal income tax instructions 1040ez    A “transaction” occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Federal income tax instructions 1040ez Person defined. Federal income tax instructions 1040ez   A “person” includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Federal income tax instructions 1040ez   Exempt organizations, including employee plans, are also “persons. Federal income tax instructions 1040ez ” However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Federal income tax instructions 1040ez Foreign transactions. Federal income tax instructions 1040ez   You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. Federal income tax instructions 1040ez However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Federal income tax instructions 1040ez Bail received by court clerks. Federal income tax instructions 1040ez   Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: Any federal offense involving a controlled substance, Racketeering, Money laundering, and Any state offense substantially similar to (1), (2), or (3) above. Federal income tax instructions 1040ez For more information about the rules that apply to court clerks, see Section 1. Federal income tax instructions 1040ez 6050I-2 of the Income Tax Regulations. Federal income tax instructions 1040ez What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: Over $10,000, Received as: One lump sum of over $10,000, Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, Received in the course of your trade or business, Received from the same buyer (or agent), and Received in a single transaction or in related transactions (defined later). Federal income tax instructions 1040ez What Is Cash? Cash is: The coins and currency of the United States (and any other country), and A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in: A designated reporting transaction (defined later), or Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form 8300. Federal income tax instructions 1040ez Cash may include a cashier's check even if it is called a “treasurer's check” or “bank check. Federal income tax instructions 1040ez ” Cash does not include a check drawn on an individual's personal account. Federal income tax instructions 1040ez A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. Federal income tax instructions 1040ez These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Form 104. Federal income tax instructions 1040ez Example 1. Federal income tax instructions 1040ez You are a coin dealer. Federal income tax instructions 1040ez Bob Green buys gold coins from you for $13,200. Federal income tax instructions 1040ez He pays for them with $6,200 in U. Federal income tax instructions 1040ez S. Federal income tax instructions 1040ez currency and a cashier's check having a face amount of $7,000. Federal income tax instructions 1040ez The cashier's check is treated as cash. Federal income tax instructions 1040ez You have received more than $10,000 cash and must file Form 8300 for this transaction. Federal income tax instructions 1040ez Example 2. Federal income tax instructions 1040ez You are a retail jeweler. Federal income tax instructions 1040ez Mary North buys an item of jewelry from you for $12,000. Federal income tax instructions 1040ez She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Federal income tax instructions 1040ez Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. Federal income tax instructions 1040ez You do not have to file Form 8300. Federal income tax instructions 1040ez Example 3. Federal income tax instructions 1040ez You are a boat dealer. Federal income tax instructions 1040ez Emily Jones buys a boat from you for $16,500. Federal income tax instructions 1040ez She pays for it with a cashier's check payable to you in the amount of $16,500. Federal income tax instructions 1040ez The cashier's check is not treated as cash because its face amount is more than $10,000. Federal income tax instructions 1040ez You do not have to file Form 8300 for this transaction. Federal income tax instructions 1040ez Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: A consumer durable, such as an automobile or boat. Federal income tax instructions 1040ez A consumer durable is property, other than land or buildings, that: Is suitable for personal use, Can reasonably be expected to last at least 1 year under ordinary use, Has a sales price of more than $10,000, and Can be seen or touched (tangible property). Federal income tax instructions 1040ez For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. Federal income tax instructions 1040ez The car is a consumer durable even if you sell it to a buyer who will use it in a business. Federal income tax instructions 1040ez A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). Federal income tax instructions 1040ez Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. Federal income tax instructions 1040ez To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Federal income tax instructions 1040ez Example. Federal income tax instructions 1040ez You are a travel agent. Federal income tax instructions 1040ez Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. Federal income tax instructions 1040ez He also asks you to book hotel rooms and admission tickets for the group. Federal income tax instructions 1040ez In payment, he gives you two money orders, each for $6,000. Federal income tax instructions 1040ez You have received more than $10,000 cash in this designated reporting transaction. Federal income tax instructions 1040ez You must file Form 8300. Federal income tax instructions 1040ez Retail sale. Federal income tax instructions 1040ez   The term “retail sale” means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Federal income tax instructions 1040ez   Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. Federal income tax instructions 1040ez This includes any sales of items that will be resold. Federal income tax instructions 1040ez Broker or intermediary. Federal income tax instructions 1040ez   A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Federal income tax instructions 1040ez Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Federal income tax instructions 1040ez Exception for certain bank loans. Federal income tax instructions 1040ez   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. Federal income tax instructions 1040ez As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Federal income tax instructions 1040ez Example. Federal income tax instructions 1040ez You are a car dealer. Federal income tax instructions 1040ez Mandy White buys a new car from you for $11,500. Federal income tax instructions 1040ez She pays you with $2,000 of U. Federal income tax instructions 1040ez S. Federal income tax instructions 1040ez currency and a cashier's check for $9,500 payable to you and her. Federal income tax instructions 1040ez You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. Federal income tax instructions 1040ez For this reason, the cashier's check is not treated as cash. Federal income tax instructions 1040ez You do not have to file Form 8300 for the transaction. Federal income tax instructions 1040ez Exception for certain installment sales. Federal income tax instructions 1040ez   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). Federal income tax instructions 1040ez However, this exception applies only if: You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Federal income tax instructions 1040ez Exception for certain down payment plans. Federal income tax instructions 1040ez   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. Federal income tax instructions 1040ez You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the date of sale. Federal income tax instructions 1040ez You receive it more than 60 days before the date of sale. Federal income tax instructions 1040ez You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Federal income tax instructions 1040ez Exception for travel and entertainment. Federal income tax instructions 1040ez   A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. Federal income tax instructions 1040ez You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. Federal income tax instructions 1040ez You receive it more than 60 days before the date on which the final payment is due. Federal income tax instructions 1040ez You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Federal income tax instructions 1040ez Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. Federal income tax instructions 1040ez If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. Federal income tax instructions 1040ez If you do not know a person's TIN, you have to ask for it. Federal income tax instructions 1040ez You may be subject to penalties for an incorrect or missing TIN. Federal income tax instructions 1040ez There are three types of TINs. Federal income tax instructions 1040ez The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). Federal income tax instructions 1040ez The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). Federal income tax instructions 1040ez An ITIN has nine digits, similar to an SSN. Federal income tax instructions 1040ez The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Federal income tax instructions 1040ez Exception. Federal income tax instructions 1040ez   You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: Does not have income effectively connected with the conduct of a U. Federal income tax instructions 1040ez S. Federal income tax instructions 1040ez trade or business; Does not have an office or place of business, or a fiscal or paying agent in the United States; Does not file a federal tax return; Does not furnish a withholding certificate described in §1. Federal income tax instructions 1040ez 1441-1(e)(2) or (3) or 1. Federal income tax instructions 1040ez 1441-5(c)(2)(iv) or (3)(iii) to the extent required under 1. Federal income tax instructions 1040ez 1441-1(e)(4)(vii); Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U. Federal income tax instructions 1040ez S. Federal income tax instructions 1040ez citizen or resident. Federal income tax instructions 1040ez What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. Federal income tax instructions 1040ez If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form 8300. Federal income tax instructions 1040ez For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Federal income tax instructions 1040ez Because they total $12,000 (more than $10,000), you must file Form 8300. Federal income tax instructions 1040ez More than 24 hours between transactions. Federal income tax instructions 1040ez   Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. Federal income tax instructions 1040ez   For example, you are a travel agent. Federal income tax instructions 1040ez A client pays you $8,000 in cash for a trip. Federal income tax instructions 1040ez Two days later, the same client pays you $3,000 more in cash to include another person on the trip. Federal income tax instructions 1040ez These are related transactions, and you must file Form 8300 to report them. Federal income tax instructions 1040ez What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. Federal income tax instructions 1040ez A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. Federal income tax instructions 1040ez If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Federal income tax instructions 1040ez Or, you can call the FinCEN Financial Institution Hotline toll free at 1-866-556-3974. Federal income tax instructions 1040ez When, Where, and What To File The amount you receive and when you receive it determine when you must file. Federal income tax instructions 1040ez Generally, you must file Form 8300 within 15 days after receiving a payment. Federal income tax instructions 1040ez If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Federal income tax instructions 1040ez More than one payment. Federal income tax instructions 1040ez   In some transactions, the buyer may arrange to pay you in cash installment payments. Federal income tax instructions 1040ez If the first payment is more than $10,000, you must file Form 8300 within 15 days. Federal income tax instructions 1040ez If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. Federal income tax instructions 1040ez When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. Federal income tax instructions 1040ez   After you file Form 8300, you must start a new count of cash payments received from that buyer. Federal income tax instructions 1040ez If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form 8300. Federal income tax instructions 1040ez You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. Federal income tax instructions 1040ez   If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Federal income tax instructions 1040ez Example. Federal income tax instructions 1040ez On January 10, you receive a cash payment of $11,000. Federal income tax instructions 1040ez You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. Federal income tax instructions 1040ez By January 25, you must file a Form 8300 for the $11,000 payment. Federal income tax instructions 1040ez By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Federal income tax instructions 1040ez Amending a Report?   If you are amending a report, check box 1a at the top of Form 8300. Federal income tax instructions 1040ez Complete the form in its entirety (Parts I-IV) and include the amended information. Federal income tax instructions 1040ez Do not attach a copy of the original report. Federal income tax instructions 1040ez Where to file. Federal income tax instructions 1040ez   Mail the form to the address given in the Form 8300 instructions. Federal income tax instructions 1040ez Required statement to buyer. Federal income tax instructions 1040ez   You must give a written or electronic statement to each person named on any Form 8300 you must file. Federal income tax instructions 1040ez You can give the statement electronically only if the recipient agrees to receive it in that format. Federal income tax instructions 1040ez The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. Federal income tax instructions 1040ez It must state that you are also reporting this information to the IRS. Federal income tax instructions 1040ez   You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. Federal income tax instructions 1040ez    You must keep a copy of every Form 8300 you file for 5 years. Federal income tax instructions 1040ez Examples Example 1. Federal income tax instructions 1040ez Pat Brown is the sales manager for Small Town Cars. Federal income tax instructions 1040ez On January 6, 2009, Jane Smith buys a new car from Pat and pays $18,000 in cash. Federal income tax instructions 1040ez Pat asks for identification from Jane to get the necessary information to complete Form 8300. Federal income tax instructions 1040ez A filled-in form is shown in this publication. Federal income tax instructions 1040ez Pat must mail the form to the address shown in the form's instructions by January 21, 2009. Federal income tax instructions 1040ez He must also send a statement to Jane by January 31, 2010. Federal income tax instructions 1040ez Example 2. Federal income tax instructions 1040ez Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Federal income tax instructions 1040ez Pat would have to file a Form 8300 by February 26 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2009, is a Saturday). Federal income tax instructions 1040ez Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. Federal income tax instructions 1040ez However, he could report it if he felt it was a suspicious transaction. Federal income tax instructions 1040ez Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form 8300. Federal income tax instructions 1040ez If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: $25,000, or The amount of cash you received and were required to report (up to $100,000). Federal income tax instructions 1040ez There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form 8300. Federal income tax instructions 1040ez If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. Federal income tax instructions 1040ez These dollar amounts are based on Section 3571 of Title 18 of the U. Federal income tax instructions 1040ez S. Federal income tax instructions 1040ez Code. Federal income tax instructions 1040ez The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. Federal income tax instructions 1040ez This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. Federal income tax instructions 1040ez Structuring means breaking up a large cash transaction into small cash transactions. Federal income tax instructions 1040ez How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Federal income tax instructions 1040ez By selecting the method that is best for you, you will have quick and easy access to tax help. Federal income tax instructions 1040ez Free help with your return. Federal income tax instructions 1040ez   Free help in preparing your return is available nationwide from IRS-certified volunteers. Federal income tax instructions 1040ez The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Federal income tax instructions 1040ez 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. Federal income tax instructions 1040ez To find the nearest VITA or TCE site, visit IRS. Federal income tax instructions 1040ez gov or call 1-800-906-9887 or 1-800-829-1040. Federal income tax instructions 1040ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. Federal income tax instructions 1040ez To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Federal income tax instructions 1040ez aarp. Federal income tax instructions 1040ez org/money/taxaide. Federal income tax instructions 1040ez   For more information on these programs, go to IRS. Federal income tax instructions 1040ez gov and enter keyword “VITA” in the upper right-hand corner. Federal income tax instructions 1040ez Internet. Federal income tax instructions 1040ez You can access the IRS website at IRS. Federal income tax instructions 1040ez gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Federal income tax instructions 1040ez Go to IRS. Federal income tax instructions 1040ez gov and click on Where's My Refund. Federal income tax instructions 1040ez Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Federal income tax instructions 1040ez If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Federal income tax instructions 1040ez Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Federal income tax instructions 1040ez E-file your return. Federal income tax instructions 1040ez Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Federal income tax instructions 1040ez Download forms, including talking tax forms, instructions, and publications. Federal income tax instructions 1040ez Order IRS products online. Federal income tax instructions 1040ez Research your tax questions online. Federal income tax instructions 1040ez Search publications online by topic or keyword. Federal income tax instructions 1040ez Use the online Internal Revenue Code, regulations, or other official guidance. Federal income tax instructions 1040ez View Internal Revenue Bulletins (IRBs) published in the last few years. Federal income tax instructions 1040ez Figure your withholding allowances using the withholding calculator online at  www. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov/individuals. Federal income tax instructions 1040ez Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at  www. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov/individuals. Federal income tax instructions 1040ez Sign up to receive local and national tax news by email. Federal income tax instructions 1040ez Get information on starting and operating a small business. Federal income tax instructions 1040ez Phone. Federal income tax instructions 1040ez Many services are available by phone. Federal income tax instructions 1040ez   Ordering forms, instructions, and publications. Federal income tax instructions 1040ez Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Federal income tax instructions 1040ez You should receive your order within 10 days. Federal income tax instructions 1040ez Asking tax questions. Federal income tax instructions 1040ez Call the IRS with your tax questions at 1-800-829-1040. Federal income tax instructions 1040ez Solving problems. Federal income tax instructions 1040ez You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Federal income tax instructions 1040ez An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Federal income tax instructions 1040ez Call your local Taxpayer Assistance Center for an appointment. Federal income tax instructions 1040ez To find the number, go to www. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Federal income tax instructions 1040ez TTY/TDD equipment. Federal income tax instructions 1040ez If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Federal income tax instructions 1040ez TeleTax topics. Federal income tax instructions 1040ez Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Federal income tax instructions 1040ez Refund information. Federal income tax instructions 1040ez You can check the status of your refund on the new IRS phone app. Federal income tax instructions 1040ez Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Federal income tax instructions 1040ez IRS2Go is a new way to provide you with information and tools. Federal income tax instructions 1040ez To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Federal income tax instructions 1040ez Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Federal income tax instructions 1040ez If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Federal income tax instructions 1040ez Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Federal income tax instructions 1040ez If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Federal income tax instructions 1040ez Other refund information. Federal income tax instructions 1040ez To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Federal income tax instructions 1040ez Evaluating the quality of our telephone services. Federal income tax instructions 1040ez To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Federal income tax instructions 1040ez One method is for a second IRS representative to listen in on or record random telephone calls. Federal income tax instructions 1040ez Another is to ask some callers to complete a short survey at the end of the call. Federal income tax instructions 1040ez Walk-in. Federal income tax instructions 1040ez Many products and services are available on a walk-in basis. Federal income tax instructions 1040ez   Products. Federal income tax instructions 1040ez You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Federal income tax instructions 1040ez Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Federal income tax instructions 1040ez Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Federal income tax instructions 1040ez Services. Federal income tax instructions 1040ez You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Federal income tax instructions 1040ez An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Federal income tax instructions 1040ez If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Federal income tax instructions 1040ez No appointment is necessary—just walk in. Federal income tax instructions 1040ez If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Federal income tax instructions 1040ez A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Federal income tax instructions 1040ez If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Federal income tax instructions 1040ez All other issues will be handled without an appointment. Federal income tax instructions 1040ez To find the number of your local office, go to www. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Federal income tax instructions 1040ez Mail. Federal income tax instructions 1040ez You can send your order for forms, instructions, and publications to the address below. Federal income tax instructions 1040ez You should receive a response within 10 days after your request is received. Federal income tax instructions 1040ez  Internal Revenue Service 1201 N. Federal income tax instructions 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Federal income tax instructions 1040ez   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Federal income tax instructions 1040ez Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Federal income tax instructions 1040ez We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Federal income tax instructions 1040ez Remember, the worst thing you can do is nothing at all. Federal income tax instructions 1040ez   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Federal income tax instructions 1040ez You face (or your business is facing) an immediate threat of adverse action. Federal income tax instructions 1040ez You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Federal income tax instructions 1040ez   If you qualify for our help, we’ll do everything we can to get your problem resolved. Federal income tax instructions 1040ez You will be assigned to one advocate who will be with you at every turn. Federal income tax instructions 1040ez We have offices in every state, the District of Columbia, and Puerto Rico. Federal income tax instructions 1040ez Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Federal income tax instructions 1040ez And our services are always free. Federal income tax instructions 1040ez   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Federal income tax instructions 1040ez Our tax toolkit at www. Federal income tax instructions 1040ez TaxpayerAdvocate. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov can help you understand these rights. Federal income tax instructions 1040ez   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov/advocate. Federal income tax instructions 1040ez You can also call our toll-free number at 1-877-777-4778. Federal income tax instructions 1040ez   TAS also handles large-scale or systemic problems that affect many taxpayers. Federal income tax instructions 1040ez If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov/advocate. Federal income tax instructions 1040ez Low Income Taxpayer Clinics (LITCs). Federal income tax instructions 1040ez   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Federal income tax instructions 1040ez Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Federal income tax instructions 1040ez These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Federal income tax instructions 1040ez Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Federal income tax instructions 1040ez For more information and to find a clinic near you, see the LITC page on www. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Federal income tax instructions 1040ez This publication is also available by calling 1-800-829-3676 or at your local IRS office. Federal income tax instructions 1040ez Free tax services. Federal income tax instructions 1040ez   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Federal income tax instructions 1040ez Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Federal income tax instructions 1040ez The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Federal income tax instructions 1040ez The majority of the information and services listed in this publication are available to you free of charge. Federal income tax instructions 1040ez If there is a fee associated with a resource or service, it is listed in the publication. Federal income tax instructions 1040ez   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Federal income tax instructions 1040ez DVD for tax products. Federal income tax instructions 1040ez You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Federal income tax instructions 1040ez Prior-year forms, instructions, and publications. Federal income tax instructions 1040ez Tax Map: an electronic research tool and finding aid. Federal income tax instructions 1040ez Tax law frequently asked questions. Federal income tax instructions 1040ez Tax Topics from the IRS telephone response system. Federal income tax instructions 1040ez Internal Revenue Code—Title 26 of the U. Federal income tax instructions 1040ez S. Federal income tax instructions 1040ez Code. Federal income tax instructions 1040ez Links to other Internet based Tax Research Materials. Federal income tax instructions 1040ez Fill-in, print, and save features for most tax forms. Federal income tax instructions 1040ez Internal Revenue Bulletins. Federal income tax instructions 1040ez Toll-free and email technical support. Federal income tax instructions 1040ez Two releases during the year. Federal income tax instructions 1040ez  – The first release will ship the beginning of January. Federal income tax instructions 1040ez  – The final release will ship the beginning of March. Federal income tax instructions 1040ez Purchase the DVD from National Technical Information Service (NTIS) at www. Federal income tax instructions 1040ez irs. Federal income tax instructions 1040ez gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Federal income tax instructions 1040ez This image is too large to be displayed in the current screen. Federal income tax instructions 1040ez Please click the link to view the image. Federal income tax instructions 1040ez Fill-in Form 8300 Prev  Up  Next   Home   More Online Publications