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Federal Tax Extension Form

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Federal Tax Extension Form

Federal tax extension form 3. Federal tax extension form   Investment Expenses Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Limits on DeductionsPassive activity. Federal tax extension form Other income (nonpassive income). Federal tax extension form Expenses. Federal tax extension form Additional information. Federal tax extension form Interest ExpensesInvestment Interest Limit on Deduction Bond Premium AmortizationSpecial rules to determine amounts payable on a bond. Federal tax extension form Basis. Federal tax extension form How To Figure Amortization Choosing To Amortize How To Report Amortization Expenses of Producing IncomeFees to buy or sell. Federal tax extension form Including mutual fund or REMIC expenses in income. Federal tax extension form Nondeductible ExpensesUsed as collateral. Federal tax extension form Short-sale expenses. Federal tax extension form Expenses for both tax-exempt and taxable income. Federal tax extension form State income taxes. Federal tax extension form Nondeductible amount. Federal tax extension form Basis adjustment. Federal tax extension form How To Report Investment Expenses When To Report Investment Expenses Topics - This chapter discusses: Limits on Deductions , Interest Expenses , Bond Premium Amortization , Expenses of Producing Income , Nondeductible Expenses , How To Report Investment Expenses , and When To Report Investment Expenses . Federal tax extension form Useful Items - You may want to see: Publication 535 Business Expenses 925 Passive Activity and At-Risk Rules 929 Tax Rules for Children and Dependents Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 4952 Investment Interest Expense Deduction See chapter 5, How To Get Tax Help , for information about getting these publications and forms. Federal tax extension form Limits on Deductions Your deductions for investment expenses may be limited by: The at-risk rules, The passive activity loss limits, The limit on investment interest, or The 2% limit on certain miscellaneous itemized deductions. Federal tax extension form The at-risk rules and passive activity rules are explained briefly in this section. Federal tax extension form The limit on investment interest is explained later in this chapter under Interest Expenses . Federal tax extension form The 2% limit is explained later in this chapter under Expenses of Producing Income . Federal tax extension form At-risk rules. Federal tax extension form   Special at-risk rules apply to most income-producing activities. Federal tax extension form These rules limit the amount of loss you can deduct to the amount you risk losing in the activity. Federal tax extension form Generally, this is the cash and the adjusted basis of property you contribute to the activity. Federal tax extension form It also includes money you borrow for use in the activity if you are personally liable for repayment or if you use property not used in the activity as security for the loan. Federal tax extension form For more information, see Publication 925. Federal tax extension form Passive activity losses and credits. Federal tax extension form   The amount of losses and tax credits you can claim from passive activities is limited. Federal tax extension form Generally, you are allowed to deduct passive activity losses only up to the amount of your passive activity income. Federal tax extension form Also, you can use credits from passive activities only against tax on the income from passive activities. Federal tax extension form There are exceptions for certain activities, such as rental real estate activities. Federal tax extension form Passive activity. Federal tax extension form   A passive activity generally is any activity involving the conduct of any trade or business in which you do not materially participate and any rental activity. Federal tax extension form However, if you are involved in renting real estate, the activity is not a passive activity if both of the following are true. Federal tax extension form More than one-half of the personal services you perform during the year in all trades or businesses are performed in real property trades or businesses in which you materially participate. Federal tax extension form You perform more than 750 hours of services during the year in real property trades or businesses in which you materially participate. Federal tax extension form  The term “trade or business” generally means any activity that involves the conduct of a trade or business, is conducted in anticipation of starting a trade or business, or involves certain research or experimental expenditures. Federal tax extension form However, it does not include rental activities or certain activities treated as incidental to holding property for investment. Federal tax extension form   You are considered to materially participate in an activity if you are involved on a regular, continuous, and substantial basis in the operations of the activity. Federal tax extension form Other income (nonpassive income). Federal tax extension form    Generally, you can use losses from passive activities only to offset income from passive activities. Federal tax extension form You cannot use passive activity losses to offset your other income, such as your wages or your portfolio income. Federal tax extension form Portfolio income includes gross income from interest, dividends, annuities, or royalties that is not derived in the ordinary course of a trade or business. Federal tax extension form It also includes gains or losses (not derived in the ordinary course of a trade or business) from the sale or trade of property (other than an interest in a passive activity) producing portfolio income or held for investment. Federal tax extension form This includes capital gain distributions from mutual funds (and other regulated investment companies) and real estate investment trusts. Federal tax extension form   You cannot use passive activity losses to offset Alaska Permanent Fund dividends. Federal tax extension form Expenses. Federal tax extension form   Do not include in the computation of your passive activity income or loss: Expenses (other than interest) that are clearly and directly allocable to your portfolio income, or Interest expense properly allocable to portfolio income. Federal tax extension form However, this interest and other expenses may be subject to other limits. Federal tax extension form These limits are explained in the rest of this chapter. Federal tax extension form Additional information. Federal tax extension form   For more information about determining and reporting income and losses from passive activities, see Publication 925. Federal tax extension form Interest Expenses This section discusses interest expenses you may be able to deduct as an investor. Federal tax extension form For information on business interest, see chapter 4 of Publication 535. Federal tax extension form You cannot deduct personal interest expenses other than qualified home mortgage interest, as explained in Publication 936, Home Mortgage Interest Deduction, and interest on certain student loans, as explained in Publication 970. Federal tax extension form Investment Interest If you borrow money to buy property you hold for investment, the interest you pay is investment interest. Federal tax extension form You can deduct investment interest subject to the limit discussed later. Federal tax extension form However, you cannot deduct interest you incurred to produce tax-exempt income. Federal tax extension form See Tax-exempt income under Nondeductible Expenses, later. Federal tax extension form You also cannot deduct interest expenses on straddles discussed under Interest expense and carrying charges on straddles , later. Federal tax extension form Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. Federal tax extension form Investment property. Federal tax extension form   Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. Federal tax extension form It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Federal tax extension form Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). Federal tax extension form Partners, shareholders, and beneficiaries. Federal tax extension form   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. Federal tax extension form Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. Federal tax extension form Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. Federal tax extension form The allocation is not affected by the use of property that secures the debt. Federal tax extension form Example 1. Federal tax extension form You borrow $10,000 and use $8,000 to buy stock. Federal tax extension form You use the other $2,000 to buy items for your home. Federal tax extension form Since 80% of the debt is used for, and allocated to, investment purposes, 80% of the interest on that debt is investment interest. Federal tax extension form The other 20% is nondeductible personal interest. Federal tax extension form Debt proceeds received in cash. Federal tax extension form   If you receive debt proceeds in cash, the proceeds are generally not treated as investment property. Federal tax extension form Debt proceeds deposited in account. Federal tax extension form   If you deposit debt proceeds in an account, that deposit is treated as investment property, regardless of whether the account bears interest. Federal tax extension form But, if you withdraw the funds and use them for another purpose, you must reallocate the debt to determine the amount considered to be for investment purposes. Federal tax extension form Example 2. Federal tax extension form Assume in Example 1 that you borrowed the money on March 1 and immediately bought the stock for $8,000. Federal tax extension form You did not buy the household items until June 1. Federal tax extension form You had deposited the $2,000 in the bank. Federal tax extension form You had no other transactions on the bank account until June. Federal tax extension form You did not sell the stock, and you made no principal payments on the debt. Federal tax extension form You paid interest from another account. Federal tax extension form The $8,000 is treated as being used for an investment purpose. Federal tax extension form The $2,000 is treated as being used for an investment purpose for the 3-month period. Federal tax extension form Your total interest expense for 3 months on this debt is investment interest. Federal tax extension form In June, when you spend the $2,000 for household items, you must begin to allocate 80% of the debt and the interest expense to investment purposes and 20% to personal purposes. Federal tax extension form Amounts paid within 30 days. Federal tax extension form   If you receive loan proceeds in cash or if the loan proceeds are deposited in an account, you can treat any payment (up to the amount of the proceeds) made from any account you own, or from cash, as made from those proceeds. Federal tax extension form This applies to any payment made within 30 days before or after the proceeds are received in cash or deposited in your account. Federal tax extension form   If you received the loan proceeds in cash, you can treat the payment as made on the date you received the cash instead of the date you actually made the payment. Federal tax extension form Payments on debt may require new allocation. Federal tax extension form   As you repay a debt used for more than one purpose, you must reallocate the balance. Federal tax extension form You must first reduce the amount allocated to personal purposes by the repayment. Federal tax extension form You then reallocate the rest of the debt to find what part is for investment purposes. Federal tax extension form Example 3. Federal tax extension form If, in Example 2 , you repay $500 on November 1, the entire repayment is applied against the amount allocated to personal purposes. Federal tax extension form The debt balance is now allocated as $8,000 for investment purposes and $1,500 for personal purposes. Federal tax extension form Until the next reallocation is necessary, 84% ($8,000 ÷ $9,500) of the debt and the interest expense is allocated to investment. Federal tax extension form Pass-through entities. Federal tax extension form   If you use borrowed funds to buy an interest in a partnership or S corporation, then the interest on those funds must be allocated based on the assets of the entity. Federal tax extension form If you contribute to the capital of the entity, you can make the allocation using any reasonable method. Federal tax extension form Additional allocation rules. Federal tax extension form   For more information about allocating interest expense, see chapter 4 of Publication 535. Federal tax extension form When To Deduct Investment Interest If you use the cash method of accounting, you must pay the interest before you can deduct it. Federal tax extension form If you use an accrual method of accounting, you can deduct interest over the period it accrues, regardless of when you pay it. Federal tax extension form For an exception, see Unpaid expenses owed to related party under When To Report Investment Expenses, later in this chapter. Federal tax extension form Example. Federal tax extension form You borrowed $1,000 on August 26, 2013, payable in 90 days at 12% interest. Federal tax extension form On November 26, 2013, you paid this with a new note for $1,030, due on February 26, 2014. Federal tax extension form If you use the cash method of accounting, you cannot deduct any part of the $30 interest on your return for 2013 because you did not actually pay it. Federal tax extension form If you use an accrual method, you may be able to deduct a portion of the interest on the loans through December 31, 2013, on your return for 2013. Federal tax extension form Interest paid in advance. Federal tax extension form   Generally, if you pay interest in advance for a period that goes beyond the end of the tax year, you must spread the interest over the tax years to which it belongs under the OID rules discussed in chapter 1. Federal tax extension form You can deduct in each year only the interest for that year. Federal tax extension form Interest on margin accounts. Federal tax extension form   If you are a cash method taxpayer, you can deduct interest on margin accounts to buy taxable securities as investment interest in the year you paid it. Federal tax extension form You are considered to have paid interest on these accounts only when you actually pay the broker or when payment becomes available to the broker through your account. Federal tax extension form Payment may become available to the broker through your account when the broker collects dividends or interest for your account, or sells securities held for you or received from you. Federal tax extension form   You cannot deduct any interest on money borrowed for personal reasons. Federal tax extension form Limit on interest deduction for market discount bonds. Federal tax extension form   The amount you can deduct for interest expense you paid or accrued during the year to buy or carry a market discount bond may be limited. Federal tax extension form This limit does not apply if you accrue the market discount and include it in your income currently. Federal tax extension form   Under this limit, the interest is deductible only to the extent it is more than: The total interest and OID includible in gross income for the bond for the year, plus The market discount for the number of days you held the bond during the year. Federal tax extension form Figure the amount in (2) above using the rules for figuring accrued market discount in chapter 1 under Market Discount Bonds . Federal tax extension form Interest not deducted due to limit. Federal tax extension form   In the year you dispose of the bond, you can deduct any interest expense you were not allowed to deduct in earlier years because of the limit. Federal tax extension form Choosing to deduct disallowed interest expense before the year of disposition. Federal tax extension form   You can choose to deduct disallowed interest expense in any year before the year you dispose of the bond, up to your net interest income from the bond during the year. Federal tax extension form The rest of the disallowed interest expense remains deductible in the year you dispose of the bond. Federal tax extension form Net interest income. Federal tax extension form   This is the interest income (including OID) from the bond that you include in income for the year, minus the interest expense paid or accrued during the year to purchase or carry the bond. Federal tax extension form Limit on interest deduction for short-term obligations. Federal tax extension form   If the current income inclusion rules discussed in chapter 1 under Discount on Short-Term Obligations do not apply to you, the amount you can deduct for interest expense you paid or accrued during the year to buy or carry a short-term obligation is limited. Federal tax extension form   The interest is deductible only to the extent it is more than: The amount of acquisition discount or OID on the obligation for the tax year, plus The amount of any interest payable on the obligation for the year that is not included in income because of your accounting method (other than interest taken into account in determining the amount of acquisition discount or OID). Federal tax extension form The method of determining acquisition discount and OID for short-term obligations is discussed in chapter 1 under Discount on Short-Term Obligations . Federal tax extension form Interest not deducted due to limit. Federal tax extension form   In the year you dispose of the obligation, or, if you choose, in another year in which you have net interest income from the obligation, you can deduct any interest expense you were not allowed to deduct for an earlier year because of the limit. Federal tax extension form Follow the same rules provided in the earlier discussion under Limit on interest deduction for market discount bonds , earlier. Federal tax extension form Limit on Deduction Generally, your deduction for investment interest expense is limited to your net investment income. Federal tax extension form You can carry over the amount of investment interest you could not deduct because of this limit to the next tax year. Federal tax extension form The interest carried over is treated as investment interest paid or accrued in that next year. Federal tax extension form You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. Federal tax extension form Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. Federal tax extension form Investment income. Federal tax extension form   This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). Federal tax extension form Investment income does not include Alaska Permanent Fund dividends. Federal tax extension form It also does not include qualified dividends or net capital gain unless you choose to include them. Federal tax extension form Choosing to include qualified dividends. Federal tax extension form   Investment income generally does not include qualified dividends, discussed in chapter 1. Federal tax extension form However, you can choose to include all or part of your qualified dividends in investment income. Federal tax extension form   You make this choice by completing Form 4952, line 4g, according to its instructions. Federal tax extension form   If you choose to include any of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. Federal tax extension form Choosing to include net capital gain. Federal tax extension form    Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). Federal tax extension form However, you can choose to include all or part of your net capital gain in investment income. Federal tax extension form   You make this choice by completing Form 4952, line 4g, according to its instructions. Federal tax extension form   If you choose to include any of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. Federal tax extension form   For more information about the capital gains rates, see Capital Gain Tax Rates in chapter 4. Federal tax extension form    Before making either choice, consider the overall effect on your tax liability. Federal tax extension form Compare your tax if you make one or both of these choices with your tax if you do not. Federal tax extension form Investment income of child reported on parent's return. Federal tax extension form   Investment income includes the part of your child's interest and dividend income you choose to report on your return. Federal tax extension form If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814. Federal tax extension form Include it on line 4a of Form 4952. Federal tax extension form Example. Federal tax extension form Your 8-year-old son has interest income of $2,200, which you choose to report on your own return. Federal tax extension form You enter $2,200 on Form 8814, lines 1a and 4, and $200 on lines 6 and 12 and complete Part II. Federal tax extension form Also enter $200 on Form 1040, line 21. Federal tax extension form Your investment income includes this $200. Federal tax extension form Child's qualified dividends. Federal tax extension form   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. Federal tax extension form However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. Federal tax extension form   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). Federal tax extension form Child's Alaska Permanent Fund dividends. Federal tax extension form   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. Federal tax extension form To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. Federal tax extension form Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. Federal tax extension form Subtract the result from the amount on Form 8814, line 12. Federal tax extension form Example. Federal tax extension form Your 10-year-old child has taxable interest income of $4,000 and Alaska Permanent Fund dividends of $2,000. Federal tax extension form You choose to report this on your return. Federal tax extension form You enter $4,000 on Form 8814, line 1a, $2,000 on line 2a, and $6,000 on line 4. Federal tax extension form You then enter $4,000 on Form 8814, lines 6 and 12, and Form 1040, line 21. Federal tax extension form You figure the amount of your child's income that you can consider your investment income as follows: $4,000 − ($4,000 × ($2,000 ÷ $6,000)) = $2,667 You include the result, $2,667, on Form 4952, line 4a. Federal tax extension form Child's capital gain distributions. Federal tax extension form   If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D (Form 1040), line 13, or Form 1040, line 13) generally does not count as investment income. Federal tax extension form However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. Federal tax extension form   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). Federal tax extension form Investment expenses. Federal tax extension form   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Federal tax extension form Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. Federal tax extension form Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A (Form 1040), line 27. Federal tax extension form See Expenses of Producing Income , later, for a discussion of the 2% limit. Federal tax extension form Losses from passive activities. Federal tax extension form   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). Federal tax extension form See Publication 925 for information about passive activities. Federal tax extension form Example. Federal tax extension form Ted is a partner in a partnership that operates a business. Federal tax extension form However, he does not materially participate in the partnership's business. Federal tax extension form Ted's interest in the partnership is considered a passive activity. Federal tax extension form Ted's investment income from interest and dividends (other than qualified dividends) is $10,000. Federal tax extension form His investment expenses (other than interest) are $3,200 after taking into account the 2% limit on miscellaneous itemized deductions. Federal tax extension form His investment interest expense is $8,000. Federal tax extension form Ted also has income from the partnership of $2,000. Federal tax extension form Ted figures his net investment income and the limit on his investment interest expense deduction in the following way: Total investment income $10,000 Minus: Investment expenses (other than interest) 3,200 Net investment income $6,800 Deductible investment interest expense for the year $6,800 The $2,000 of income from the passive activity is not used in determining Ted's net investment income. Federal tax extension form His investment interest deduction for the year is limited to $6,800, the amount of his net investment income. Federal tax extension form Form 4952 Use Form 4952 to figure your deduction for investment interest. Federal tax extension form See Form 4952 for more information. Federal tax extension form Exception to use of Form 4952. Federal tax extension form   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. Federal tax extension form Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. Federal tax extension form You do not have any other deductible investment expenses. Federal tax extension form You have no carryover of investment interest expense from 2012. Federal tax extension form   If you meet all of these tests, you can deduct all of your investment interest. Federal tax extension form    Bond Premium Amortization If you pay a premium to buy a bond, the premium is part of your basis in the bond. Federal tax extension form If the bond yields taxable interest, you can choose to amortize the premium. Federal tax extension form This generally means that each year, over the life of the bond, you use a part of the premium to reduce the amount of interest includible in your income. Federal tax extension form If you make this choice, you must reduce your basis in the bond by the amortization for the year. Federal tax extension form If the bond yields tax-exempt interest, you must amortize the premium. Federal tax extension form This amortized amount is not deductible in determining taxable income. Federal tax extension form However, each year you must reduce your basis in the bond (and tax-exempt interest otherwise reportable on Form 1040, line 8b) by the amortization for the year. Federal tax extension form Bond premium. Federal tax extension form   Bond premium is the amount by which your basis in the bond right after you get it is more than the total of all amounts payable on the bond after you get it (other than payments of qualified stated interest). Federal tax extension form For example, a bond with a maturity value of $1,000 generally would have a $50 premium if you buy it for $1,050. Federal tax extension form Special rules to determine amounts payable on a bond. Federal tax extension form   For special rules that apply to determine the amounts payable on a variable rate bond, an inflation-indexed debt instrument, a bond that provides for certain alternative payment schedules (for example, a bond callable prior to the stated maturity date of the bond), or a bond that provides for remote or incidental contingencies, see Regulations section 1. Federal tax extension form 171-3. Federal tax extension form Basis. Federal tax extension form   In general, your basis for figuring bond premium amortization is the same as your basis for figuring any loss on the sale of the bond. Federal tax extension form However, you may need to use a different basis for: Convertible bonds, Bonds you got in a trade, and Bonds whose basis has to be determined using the basis of the person who transferred the bond to you. Federal tax extension form See Regulations section 1. Federal tax extension form 171-1(e). Federal tax extension form Dealers. Federal tax extension form   A dealer in taxable bonds (or anyone who holds them mainly for sale to customers in the ordinary course of a trade or business or who would properly include bonds in inventory at the close of the tax year) cannot claim a deduction for amortizable bond premium. Federal tax extension form   See section 75 of the Internal Revenue Code for the treatment of bond premium by a dealer in tax-exempt bonds. Federal tax extension form How To Figure Amortization For bonds issued after September 27, 1985, you must amortize bond premium using a constant yield method on the basis of the bond's yield to maturity, determined by using the bond's basis and compounding at the close of each accrual period. Federal tax extension form Constant yield method. Federal tax extension form   Figure the bond premium amortization for each accrual period as follows. Federal tax extension form Step 1: Determine your yield. Federal tax extension form   Your yield is the discount rate that, when used in figuring the present value of all remaining payments to be made on the bond (including payments of qualified stated interest), produces an amount equal to your basis in the bond. Federal tax extension form Figure the yield as of the date you got the bond. Federal tax extension form It must be constant over the term of the bond and must be figured to at least two decimal places when expressed as a percentage. Federal tax extension form   If you do not know the yield, consult your broker or tax advisor. Federal tax extension form Databases available to them are likely to show the yield at the date of purchase. Federal tax extension form Step 2: Determine the accrual periods. Federal tax extension form   You can choose the accrual periods to use. Federal tax extension form They may be of any length and may vary in length over the term of the bond, but each accrual period can be no longer than 1 year and each scheduled payment of principal or interest must occur either on the first or the final day of an accrual period. Federal tax extension form The computation is simplest if accrual periods are the same as the intervals between interest payment dates. Federal tax extension form Step 3: Determine the bond premium for the accrual period. Federal tax extension form   To do this, multiply your adjusted acquisition price at the beginning of the accrual period by your yield. Federal tax extension form Then subtract the result from the qualified stated interest for the period. Federal tax extension form   Your adjusted acquisition price at the beginning of the first accrual period is the same as your basis. Federal tax extension form After that, it is your basis decreased by the amount of bond premium amortized for earlier periods and the amount of any payment previously made on the bond other than a payment of qualified stated interest. Federal tax extension form Example. Federal tax extension form On February 1, 2012, you bought a taxable bond for $110,000. Federal tax extension form The bond has a stated principal amount of $100,000, payable at maturity on February 1, 2019, making your premium $10,000 ($110,000 − $100,000). Federal tax extension form The bond pays qualified stated interest of $10,000 on February 1 of each year. Federal tax extension form Your yield is 8. Federal tax extension form 07439% compounded annually. Federal tax extension form You choose to use annual accrual periods ending on February 1 of each year. Federal tax extension form To find your bond premium amortization for the accrual period ending on February 1, 2013, you multiply the adjusted acquisition price at the beginning of the period ($110,000) by your yield. Federal tax extension form When you subtract the result ($8,881. Federal tax extension form 83) from the qualified stated interest for the period ($10,000), you find that your bond premium amortization for the period is $1,118. Federal tax extension form 17. Federal tax extension form Special rules to figure amortization. Federal tax extension form   For special rules to figure the bond premium amortization on a variable rate bond, an inflation-indexed debt instrument, a bond that provides for certain alternative payment schedules (for example, a bond callable prior to the stated maturity date of the bond), or a bond that provides for remote or incidental contingencies, see Regulations section 1. Federal tax extension form 171-3. Federal tax extension form Bonds Issued Before September 28, 1985 For these bonds, you can amortize bond premium using any reasonable method. Federal tax extension form Reasonable methods include: The straight-line method, and The Revenue Ruling 82-10 method. Federal tax extension form Straight-line method. Federal tax extension form   Under this method, the amount of your bond premium amortization is the same each month. Federal tax extension form Divide the number of months you held the bond during the year by the number of months from the beginning of the tax year (or, if later, the date of acquisition) to the date of maturity or earlier call date. Federal tax extension form Then multiply the result by the bond premium (reduced by any bond premium amortization claimed in earlier years). Federal tax extension form This gives you your bond premium amortization for the year. Federal tax extension form Revenue Ruling 82-10 method. Federal tax extension form   Under this method, the amount of your bond premium amortization increases each month over the life of the bond. Federal tax extension form This method is explained in Revenue Ruling 82-10, 1982-1 C. Federal tax extension form B. Federal tax extension form 46. Federal tax extension form Choosing To Amortize You choose to amortize the premium on taxable bonds by reporting the amortization for the year on your income tax return for the first tax year you want the choice to apply. Federal tax extension form You should attach a statement to your return that you are making this choice under section 171. Federal tax extension form See How To Report Amortization, next. Federal tax extension form This choice is binding for the year you make it and for later tax years. Federal tax extension form It applies to all taxable bonds you own in the year you make the choice and also to those you acquire in later years. Federal tax extension form You can change your decision to amortize bond premium only with the written approval of the IRS. Federal tax extension form To request approval, use Form 3115. Federal tax extension form For more information on requesting approval, see section 5 of the Appendix to Revenue Procedure 2011-14 in Internal Revenue Bulletin 2011-4. Federal tax extension form You can find Revenue Procedure 2011-14 at www. Federal tax extension form irs. Federal tax extension form gov/irb/2011-04_IRB/ar08. Federal tax extension form html. Federal tax extension form How To Report Amortization Subtract the bond premium amortization from your interest income from these bonds. Federal tax extension form Report the bond's interest on Schedule B (Form 1040A or 1040), line 1. Federal tax extension form Under your last entry on line 1, put a subtotal of all interest listed on line 1. Federal tax extension form Below this subtotal, print “ABP Adjustment,” and the total interest you received. Federal tax extension form Subtract this amount from the subtotal, and enter the result on line 2. Federal tax extension form Bond premium amortization more than interest. Federal tax extension form   If the amount of your bond premium amortization for an accrual period is more than the qualified stated interest for the period, you can deduct the difference as a miscellaneous itemized deduction on Schedule A (Form 1040), line 28. Federal tax extension form    But your deduction is limited to the amount by which your total interest inclusions on the bond in prior accrual periods is more than your total bond premium deductions on the bond in prior periods. Federal tax extension form Any amount you cannot deduct because of this limit can be carried forward to the next accrual period. Federal tax extension form Pre-1998 election to amortize bond premium. Federal tax extension form   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Federal tax extension form Bonds acquired before October 23, 1986. Federal tax extension form   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2%-of-adjusted-gross-income limit. Federal tax extension form Bonds acquired after October 22, 1986, but before 1988. Federal tax extension form    The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you choose to treat it as an offset to interest income on the bond. Federal tax extension form Expenses of Producing Income You deduct investment expenses (other than interest expenses) as miscellaneous itemized deductions on Schedule A (Form 1040). Federal tax extension form To be deductible, these expenses must be ordinary and necessary expenses paid or incurred: To produce or collect income, or To manage property held for producing income. Federal tax extension form The expenses must be directly related to the income or income-producing property, and the income must be taxable to you. Federal tax extension form The deduction for most income-producing expenses is subject to a 2% limit that also applies to certain other miscellaneous itemized deductions. Federal tax extension form The amount deductible is limited to the total of these miscellaneous deductions that is more than 2% of your adjusted gross income. Federal tax extension form For information on how to report expenses of producing income, see How To Report Investment Expenses , later. Federal tax extension form Attorney or accounting fees. Federal tax extension form   You can deduct attorney or accounting fees that are necessary to produce or collect taxable income. Federal tax extension form However, in some cases, attorney or accounting fees are part of the basis of property. Federal tax extension form See Basis of Investment Property in chapter 4. Federal tax extension form Automatic investment service and dividend reinvestment plans. Federal tax extension form   A bank may offer its checking account customers an automatic investment service so that, for a charge, each customer can choose to invest a part of the checking account each month in common stock. Federal tax extension form Or a bank that is a dividend disbursing agent for a number of publicly-owned corporations may set up an automatic dividend reinvestment service. Federal tax extension form Through that service, cash dividends are reinvested in more shares of stock after the bank deducts a service charge. Federal tax extension form   A corporation in which you own stock also may have a dividend reinvestment plan. Federal tax extension form This plan lets you choose to use your dividends to buy more shares of stock in the corporation instead of receiving the dividends in cash. Federal tax extension form   You can deduct the monthly service charge you pay to a bank to participate in an automatic investment service. Federal tax extension form If you participate in a dividend reinvestment plan, you can deduct any service charge subtracted from your cash dividends before the dividends are used to buy more shares of stock. Federal tax extension form Deduct the charges in the year you pay them. Federal tax extension form Clerical help and office rent. Federal tax extension form   You can deduct office expenses, such as rent and clerical help, you incurred in connection with your investments and collecting the taxable income on your investments. Federal tax extension form Cost of replacing missing securities. Federal tax extension form   To replace your taxable securities that are mislaid, lost, stolen, or destroyed, you may have to post an indemnity bond. Federal tax extension form You can deduct the premium you pay to buy the indemnity bond and the related incidental expenses. Federal tax extension form   You may, however, get a refund of part of the bond premium if the missing securities are recovered within a specified time. Federal tax extension form Under certain types of insurance policies, you can recover some of the expenses. Federal tax extension form   If you receive the refund in the tax year you pay the amounts, you can deduct only the difference between the expenses paid and the amount refunded. Federal tax extension form If the refund is made in a later tax year, you must include the refund in income in the year you received it, but only to the extent that the expenses decreased your tax in the year you deducted them. Federal tax extension form Fees to collect income. Federal tax extension form   You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect investment income, such as your taxable bond or mortgage interest, or your dividends on shares of stock. Federal tax extension form Fees to buy or sell. Federal tax extension form   You cannot deduct a fee you pay to a broker to acquire investment property, such as stocks or bonds. Federal tax extension form You must add the fee to the cost of the property. Federal tax extension form See Basis of Investment Property in chapter 4. Federal tax extension form    You cannot deduct any broker's fees, commissions, or option premiums you pay (or that were netted out) in connection with the sale of investment property. Federal tax extension form They can be used only to figure gain or loss from the sale. Federal tax extension form See Reporting Capital Gains and Losses , in chapter 4, for more information about the treatment of these sale expenses. Federal tax extension form Investment counsel and advice. Federal tax extension form   You can deduct fees you pay for counsel and advice about investments that produce taxable income. Federal tax extension form This includes amounts you pay for investment advisory services. Federal tax extension form Safe deposit box rent. Federal tax extension form   You can deduct rent you pay for a safe deposit box if you use the box to store taxable income-producing stocks, bonds, or other investment-related papers and documents. Federal tax extension form If you also use the box to store tax-exempt securities or personal items, you can deduct only part of the rent. Federal tax extension form See Tax-exempt income under Nondeductible Expenses, later, to figure what part you can deduct. Federal tax extension form State and local transfer taxes. Federal tax extension form   You cannot deduct the state and local transfer taxes you pay when you buy or sell securities. Federal tax extension form If you pay these transfer taxes when you buy securities, you must treat them as part of the cost of the property. Federal tax extension form If you pay these transfer taxes when you sell securities, you must treat them as a reduction in the amount realized. Federal tax extension form Trustee's commissions for revocable trust. Federal tax extension form   If you set up a revocable trust and have its income distributed to you, you can deduct the commission you pay the trustee for managing the trust to the extent it is to produce or collect taxable income or to manage property. Federal tax extension form However, you cannot deduct any part of the commission used for producing or collecting tax-exempt income or for managing property that produces tax-exempt income. Federal tax extension form   If you are a cash-basis taxpayer and pay the commissions for several years in advance, you must deduct a part of the commission each year. Federal tax extension form You cannot deduct the entire amount in the year you pay it. Federal tax extension form Investment expenses from pass-through entities. Federal tax extension form   If you hold an interest in a partnership, S corporation, real estate mortgage investment conduit (REMIC), or a nonpublicly offered mutual fund, you can deduct your share of that entity's investment expenses. Federal tax extension form A partnership or S corporation will show your share of these expenses on your Schedule K-1 (Form 1065) or Schedule K-1 (Form 1120S). Federal tax extension form A nonpublicly offered mutual fund will indicate your share of these expenses in box 5 of Form 1099-DIV (or substitute statement). Federal tax extension form Publicly-offered mutual funds are discussed later. Federal tax extension form   If you hold an interest in a REMIC, any expenses relating to your residual interest investment will be shown on Schedule Q (Form 1066), line 3b. Federal tax extension form Any expenses relating to your regular interest investment will appear in box 5 of Form 1099-INT (or substitute statement) or box 9 of Form 1099-OID (or substitute statement). Federal tax extension form   Report your share of these investment expenses on Schedule A (Form 1040), subject to the 2% limit, in the same manner as your other investment expenses. Federal tax extension form Including mutual fund or REMIC expenses in income. Federal tax extension form   Your share of the investment expenses of a REMIC or a nonpublicly offered mutual fund, as described above, are considered to be indirect deductions through that pass-through entity. Federal tax extension form You must include in your gross income an amount equal to the expenses allocated to you, whether or not you are able to claim a deduction for those expenses. Federal tax extension form If you are a shareholder in a nonpublicly offered mutual fund, you must include on your return the full amount of ordinary dividends or other distributions of stock, as shown in box 1a of Form 1099-DIV (or substitute statement). Federal tax extension form If you are a residual interest holder in a REMIC, you must report as ordinary income on Schedule E (Form 1040) the total amounts shown on Schedule Q (Form 1066), lines 1b and 3b. Federal tax extension form If you are a REMIC regular interest holder, you must include the amount of any expense allocation you received on Form 1040, line 8a. Federal tax extension form Publicly-offered mutual funds. Federal tax extension form   Most mutual funds are publicly offered. Federal tax extension form These mutual funds, generally, are traded on an established securities exchange. Federal tax extension form These funds do not pass investment expenses through to you. Federal tax extension form Instead, the dividend income they report to you in box 1a of Form 1099-DIV (or substitute statement) is already reduced by your share of investment expenses. Federal tax extension form As a result, you cannot deduct the expenses on your return. Federal tax extension form   Include the amount from box 1a of Form 1099-DIV (or substitute statement) in your income. Federal tax extension form    A publicly offered mutual fund is one that: Is continuously offered pursuant to a public offering, Is regularly traded on an established securities market, and Is held by or for no fewer than 500 persons at any time during the year. Federal tax extension form Contact your mutual fund if you are not sure whether it is publicly offered. Federal tax extension form Nondeductible Expenses Some expenses that you incur as an investor are not deductible. Federal tax extension form Stockholders' meetings. Federal tax extension form   You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you have no interest other than owning stock. Federal tax extension form This is true even if your purpose in attending is to get information that would be useful in making further investments. Federal tax extension form Investment-related seminar. Federal tax extension form   You cannot deduct expenses for attending a convention, seminar, or similar meeting for investment purposes. Federal tax extension form Single-premium life insurance, endowment, and annuity contracts. Federal tax extension form   You cannot deduct interest on money you borrow to buy or carry a single-premium life insurance, endowment, or annuity contract. Federal tax extension form Used as collateral. Federal tax extension form   If you use a single premium annuity contract as collateral to obtain or continue a mortgage loan, you cannot deduct any interest on the loan that is collateralized by the annuity contract. Federal tax extension form Figure the amount of interest expense disallowed by multiplying the current interest rate on the mortgage loan by the lesser of the amount of the annuity contract used as collateral or the amount of the loan. Federal tax extension form Borrowing on insurance. Federal tax extension form   Generally, you cannot deduct interest on money you borrow to buy or carry a life insurance, endowment, or annuity contract if you plan to systematically borrow part or all of the increases in the cash value of the contract. Federal tax extension form This rule applies to the interest on the total amount borrowed to buy or carry the contract, not just the interest on the borrowed increases in the cash value. Federal tax extension form Tax-exempt income. Federal tax extension form   You cannot deduct expenses you incur to produce tax-exempt income. Federal tax extension form Nor can you deduct interest on money you borrow to buy tax-exempt securities or shares in a mutual fund or other regulated investment company that distributes only exempt-interest dividends. Federal tax extension form Short-sale expenses. Federal tax extension form   The rule disallowing a deduction for interest expenses on tax-exempt securities applies to amounts you pay in connection with personal property used in a short sale or amounts paid by others for the use of any collateral in connection with the short sale. Federal tax extension form However, it does not apply to the expenses you incur if you deposit cash as collateral for the property used in the short sale and the cash does not earn a material return during the period of the sale. Federal tax extension form Short sales are discussed in Short Sales in chapter 4. Federal tax extension form Expenses for both tax-exempt and taxable income. Federal tax extension form   You may have expenses that are for both tax-exempt and taxable income. Federal tax extension form If you cannot specifically identify what part of the expenses is for each type of income, you can divide the expenses, using reasonable proportions based on facts and circumstances. Federal tax extension form You must attach a statement to your return showing how you divided the expenses and stating that each deduction claimed is not based on tax-exempt income. Federal tax extension form   One accepted method for dividing expenses is to do it in the same proportion that each type of income is to the total income. Federal tax extension form If the expenses relate in part to capital gains and losses, include the gains, but not the losses, in figuring this proportion. Federal tax extension form To find the part of the expenses that is for the tax-exempt income, divide your tax-exempt income by the total income and multiply your expenses by the result. Federal tax extension form Example. Federal tax extension form You received $6,000 interest; $4,800 was tax-exempt and $1,200 was taxable. Federal tax extension form In earning this income, you had $500 of expenses. Federal tax extension form You cannot specifically identify the amount of each expense item that is for each income item, so you must divide your expenses. Federal tax extension form 80% ($4,800 tax-exempt interest divided by $6,000 total interest) of your expenses is for the tax-exempt income. Federal tax extension form You cannot deduct $400 (80% of $500) of the expenses. Federal tax extension form You can deduct $100 (the rest of the expenses) because they are for the taxable interest. Federal tax extension form State income taxes. Federal tax extension form   If you itemize your deductions, you can deduct, as taxes, state income taxes on interest income that is exempt from federal income tax. Federal tax extension form But you cannot deduct, as either taxes or investment expenses, state income taxes on other exempt income. Federal tax extension form Interest expense and carrying charges on straddles. Federal tax extension form   You cannot deduct interest and carrying charges allocable to personal property that is part of a straddle. Federal tax extension form The nondeductible interest and carrying charges are added to the basis of the straddle property. Federal tax extension form However, this treatment does not apply if: All the offsetting positions making up the straddle either consist of one or more qualified covered call options and the optioned stock, or consist of section 1256 contracts (and the straddle is not part of a larger straddle); or The straddle is a hedging transaction. Federal tax extension form  For information about straddles, including definitions of the terms used in this discussion, see Straddles in chapter 4. Federal tax extension form   Interest includes any amount you pay or incur in connection with personal property used in a short sale. Federal tax extension form However, you must first apply the rules discussed in Payments in lieu of dividends under Short Sales in chapter 4. Federal tax extension form   To determine the interest on market discount bonds and short-term obligations that are part of a straddle, you must first apply the rules discussed under Limit on interest deduction for market discount bonds and Limit on interest deduction for short-term obligations (both under Interest Expenses, earlier). Federal tax extension form Nondeductible amount. Federal tax extension form   Figure the nondeductible interest and carrying charges on straddle property as follows. Federal tax extension form Add: Interest on indebtedness incurred or continued to buy or carry the personal property, and All other amounts (including charges to insure, store, or transport the personal property) paid or incurred to carry the personal property. Federal tax extension form Subtract from the amount in (1): Interest (including OID) includible in gross income for the year on the personal property, Any income from the personal property treated as ordinary income on the disposition of short-term government obligations or as ordinary income under the market discount and short-term bond provisions — see Discount on Debt Instruments in chapter 1, The dividends includible in gross income for the year from the personal property, and Any payment on a loan of the personal property for use in a short sale that is includible in gross income. Federal tax extension form Basis adjustment. Federal tax extension form   Add the nondeductible amount to the basis of your straddle property. Federal tax extension form How To Report Investment Expenses To deduct your investment expenses, you must itemize deductions on Schedule A (Form 1040). Federal tax extension form Enter your deductible investment interest expense on Schedule A (Form1040), line 14. Federal tax extension form Include any deductible short sale expenses. Federal tax extension form (See Short Sales in chapter 4 for information on these expenses. Federal tax extension form ) Also attach a completed Form 4952 if you used that form to figure your investment interest expense. Federal tax extension form Enter the total amount of your other investment expenses (other than interest expenses) on Schedule A (Form 1040), line 23. Federal tax extension form List the type and amount of each expense on the dotted lines next to line 23. Federal tax extension form (If necessary, you can show the required information on an attached statement. Federal tax extension form ) For information on how to report amortizable bond premium, see Bond Premium Amortization , earlier in this chapter. Federal tax extension form When To Report Investment Expenses If you use the cash method to report income and expenses, you generally deduct your expenses, except for certain prepaid interest, in the year you pay them. Federal tax extension form If you use an accrual method, you generally deduct your expenses when you incur a liability for them, rather than when you pay them. Federal tax extension form Also see When To Deduct Investment Interest , earlier in this chapter. Federal tax extension form Unpaid expenses owed to related party. Federal tax extension form   If you use an accrual method, you cannot deduct interest and other expenses owed to a related cash-basis person until payment is made and the amount is includible in the gross income of that person. Federal tax extension form The relationship, for purposes of this rule, is determined as of the end of the tax year for which the interest or expense would otherwise be deductible. Federal tax extension form If a deduction is denied under this rule, this rule will continue to apply even if your relationship with the person ceases to exist before the amount is includible in the gross income of that person. Federal tax extension form   This rule generally applies to those relationships listed in chapter 4 under Related Party Transactions . Federal tax extension form It also applies to accruals by partnerships to partners, partners to partnerships, shareholders to S corporations, and S corporations to shareholders. Federal tax extension form   The postponement of deductions for unpaid expenses and interest under the related party rule does not apply to OID, regardless of when payment is made. Federal tax extension form This rule also does not apply to loans with below-market interest rates or to certain payments for the use of property and services when the lender or recipient has to include payments periodically in income, even if a payment has not been made. Federal tax extension form Prev  Up  Next   Home   More Online Publications
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Tax Scams/Consumer Alerts

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Tax Scams: English | Spanish | ASL
 

Alert: New Email Phishing Scam

The IRS has been alerted to a new email phishing scam. The emails appear to be from the IRS Taxpayer Advocate Service and include a bogus case number and the following message:

“Your reported 2013 income is flagged for review due to a document processing error. Your case has been forwarded to the Taxpayer Advocate Service for resolution assistance. To avoid delays processing your 2013 filing contact the Taxpayer Advocate Service for resolution assistance.”

The recipient is directed to click on links that supposedly provide information about the "advocate" assigned to their case or that let them "review reported income."  The links lead to web pages that solicit personal information.

Taxpayers who get these messages should not respond to the email or click on the links. Instead, they should forward the scam emails to the IRS at phishing@irs.gov. For more information, visit the IRS's Report Phishing web page.

The Taxpayer Advocate Service is a legitimate IRS organization that helps taxpayers resolve federal tax issues that have not been resolved through the normal IRS channels. The IRS, including TAS, does not initiate contact with taxpayers by email, texting or any social media.


Tax Scams

Don't fall victim to tax scams. Remember — if it sounds too good to be true, it probably is. If you know of a tax fraud, you can report it to the IRS by sending completed Form 3949-A, Information Referral, to Internal Revenue Service, Fresno, CA 93888. You can download the form or call 1-800-829-3676 to order by mail.

Some of the other recent scams the IRS has seen include:

  • IR-2013-84, IRS Warns of Pervasive Telephone Scam
  • IR-2013-33, Don’t Fall Prey to the 2013 Dirty Dozen Tax Scams
  • IR-2011-73, IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scams

Education is the best way to avoid the pitfalls of these “too good to be true” tax scams. For more information, see:


Phony Arguments

No matter how some things are sliced, they're still baloney. If someone tells you that you don't have to pay taxes, check out The Truth About Frivolous Tax Arguments. This IRS.gov exclusive addresses some of the more common false "legal" arguments made by those opposed to compliance with the federal tax laws. Each contention is briefly explained, followed by a discussion of the legal authority that rejects the contention. The second section deals with frivolous arguments encountered in collection due process cases. The final section illustrates penalties imposed on those pursuing frivolous cases.

IR-2011-23, IRS Debunks Frivolous Tax Arguments, highlights the issue and possible penalties.  

IR-2004-41 describes the increasingly strong penalties the courts have imposed from March 2003 to March 2004 on taxpayers who pursued frivolous cases to delay IRS collection actions.

IR-2003-28 details penalties the Tax Court imposed from April 2001 until early March 2003 for making frivolous Collection Due Process arguments.


Identity Theft Scams

The IRS has issued several consumer warnings about the fraudulent use of the IRS name or logo by scamsters trying to gain access to consumers’ financial information in order to steal their identity and assets. Scamsters will use the regular mail, telephone, fax or email to set up their victims. When identity theft takes place over the Internet (email), it is called phishing.

The IRS does not initiate taxpayer communications through email. Unsolicited email claiming to be from the IRS, or from an IRS-related component such as EFTPS, should be reported to the IRS at phishing@irs.gov.

Additionally, clicking on attachments to or links within an unsolicited email claiming to come from the IRS may download a malicious computer virus onto your computer.

Learn more about identity theft.

Learn how to protect your personal information.

You may also report instances of IRS-related phishing attempts and fraud to the Treasury Inspector General for Tax Administration at 1-800-366-4484.

Page Last Reviewed or Updated: 28-Mar-2014

The Federal Tax Extension Form

Federal tax extension form Publication 509 - Main Content Table of Contents General Tax CalendarFirst Quarter Second Quarter Third Quarter Fourth Quarter Fiscal-Year Taxpayers Employer's Tax CalendarFirst Quarter Second Quarter Third Quarter Fourth Quarter Excise Tax CalendarFirst Quarter Second Quarter Third Quarter Fourth Quarter How To Get Tax Help General Tax Calendar This tax calendar has the due dates for 2014 that most taxpayers will need. Federal tax extension form Employers and persons who pay excise taxes also should use the Employer's Tax Calendar and the Excise Tax Calendar . Federal tax extension form Fiscal-year taxpayers. Federal tax extension form   If you file your income tax return for a fiscal year rather than the calendar year, you must change some of the dates in this calendar. Federal tax extension form These changes are described under Fiscal-Year Taxpayers at the end of this calendar. Federal tax extension form First Quarter The first quarter of a calendar year is made up of January, February, and March. Federal tax extension form Second Quarter The second quarter of a calendar year is made up of April, May, and June. Federal tax extension form Third Quarter The third quarter of a calendar year is made up of July, August, and September. Federal tax extension form Fourth Quarter The fourth quarter of a calendar year is made up of October, November, and December. Federal tax extension form Fiscal-Year Taxpayers If you use a fiscal year (rather than the calendar year) as your tax year, you should change some of the dates in this calendar. Federal tax extension form Use the following general guidelines to make these changes. Federal tax extension form The 3 months that make up each quarter of a fiscal year may be different from those of each calendar quarter, depending on when the fiscal year begins. Federal tax extension form Also see Saturday, Sunday, or legal holiday, earlier. Federal tax extension form Individuals Form 1040. Federal tax extension form    This form is due on the 15th day of the 4th month after the end of your tax year. Federal tax extension form Form 4868 is used to request an extension of time to file Form 1040. Federal tax extension form Estimated tax payments (Form 1040-ES). Federal tax extension form   Payments are due on the 15th day of the 4th, 6th, and 9th months of your tax year and on the 15th day of the 1st month after your tax year ends. Federal tax extension form Partnerships Form 1065. Federal tax extension form   This form is due on the 15th day of the 4th month after the end of the partnership's tax year. Federal tax extension form Provide each partner with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1. Federal tax extension form Form 1065-B (electing large partnerships). Federal tax extension form   This form is due on the 15th day of the 4th month after the end of the partnership's tax year. Federal tax extension form Provide each partner with a copy of Schedule K-1 (Form 1065-B) or a substitute Schedule K-1 by the first March 15 following the close of the partnership's tax year. Federal tax extension form Corporations and S Corporations Form 1120 and Form 1120S (or Form 7004). Federal tax extension form   These forms are due on the 15th day of the 3rd month after the end of the corporation's tax year. Federal tax extension form S corporations must provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1. Federal tax extension form Form 7004 is used to request an extension of time to file Form 1120 or Form 1120S. Federal tax extension form Estimated tax payments. Federal tax extension form   Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the corporation's tax year. Federal tax extension form Form 2553. Federal tax extension form   This form is used to choose S corporation treatment. Federal tax extension form It is due no more than two months and 15 days after the beginning of the tax year the election is to take effect or at any time during the preceding tax year. Federal tax extension form Employer's Tax Calendar This tax calendar covers various due dates of interest to employers. Federal tax extension form Principally, it covers the following federal taxes. Federal tax extension form Income tax you withhold from your employees' wages or from nonpayroll amounts you pay out. Federal tax extension form Social security and Medicare taxes (FICA taxes) you withhold from your employees' wages and the social security and Medicare taxes you must pay as an employer. Federal tax extension form Federal unemployment (FUTA) tax you must pay as an employer. Federal tax extension form The calendar lists due dates for filing returns and for making deposits of these three taxes throughout the year. Federal tax extension form Use this calendar with Publication 15 (Circular E), which gives the deposit rules. Federal tax extension form Forms you may need. Federal tax extension form   The following is a list and description of the primary employment tax forms you may need. Federal tax extension form Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Federal tax extension form This form is due the last day of the first calendar month after the calendar year ends. Federal tax extension form Use it to report the FUTA tax on wages you paid. Federal tax extension form Form 941, Employer's QUARTERLY Federal Tax Return. Federal tax extension form This form is due the last day of the first calendar month after the calendar quarter ends. Federal tax extension form Use it to report social security and Medicare taxes and withheld income taxes on wages if your employees are not farm workers or household employees. Federal tax extension form Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. Federal tax extension form This form is due the last day of the first calendar month after the calendar year ends. Federal tax extension form Use it to report social security and Medicare taxes and withheld income taxes on wages if your employees are farm workers. Federal tax extension form Form 944, Employer's ANNUAL Federal Tax Return. Federal tax extension form This form is due the last day of the first calendar month after the calendar year ends. Federal tax extension form Certain small employers use it instead of Form 941 to report social security and Medicare taxes and withheld income tax. Federal tax extension form Form 945, Annual Return of Withheld Federal Income Tax. Federal tax extension form This form is due the last day of the first calendar month after the calendar year ends. Federal tax extension form Use it to report income tax withheld on all nonpayroll items. Federal tax extension form Nonpayroll items include the following. Federal tax extension form Backup withholding. Federal tax extension form Withholding on pensions, annuities, IRAs, and gambling winnings. Federal tax extension form Payments of Indian gaming profits to tribal members. Federal tax extension form Fiscal-year taxpayers. Federal tax extension form   The dates in this calendar apply whether you use a fiscal year or the calendar year as your tax year. Federal tax extension form The only exception is the date for filing Forms 5500, Annual Return/Report of Employee Benefit Plan, and 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan. Federal tax extension form These employee benefit plan forms are due by the last day of the seventh month after the plan year ends. Federal tax extension form See July 31 , later. Federal tax extension form Extended due dates. Federal tax extension form   If you timely deposit in full the tax you are required to report on Form 940, 941, 943, 944, or 945, you have an additional 10 calendar days to file that form. Federal tax extension form If you are subject to the semiweekly deposit rule, use Table 2 near the end of this publication for your deposit due dates. Federal tax extension form However, if you accumulate $100,000 or more of taxes on any day during a deposit period, you must deposit the tax by the next business day instead of the date shown in Table 2. Federal tax extension form First Quarter The first quarter of a calendar year is made up of January, February, and March. Federal tax extension form Second Quarter The second quarter of a calendar year is made up of April, May, and June. Federal tax extension form Third Quarter The third quarter of a calendar year is made up of July, August, and September. Federal tax extension form Fourth Quarter The fourth quarter of a calendar year is made up of October, November, and December. Federal tax extension form Excise Tax Calendar This tax calendar gives the due dates for filing returns and making deposits of excise taxes. Federal tax extension form Use this calendar with Publication 510. Federal tax extension form Also see the instructions for Forms 11-C, 720, 730, and 2290 for more information. Federal tax extension form References to Form 2290 also apply to Form 2290(SP). Federal tax extension form Forms you may need. Federal tax extension form   The following is a list and description of the excise tax forms you may need. Federal tax extension form Form 11-C, Occupational Tax and Registration Return for Wagering. Federal tax extension form Use this form to register any wagering activity and to pay an occupational tax on wagering. Federal tax extension form File Form 11-C if you are in the business of accepting wagers, including conducting a wagering pool or lottery, or are an agent of someone who accepts wagers. Federal tax extension form You must file the form before you begin accepting wagers. Federal tax extension form After that, file the form by July 1 of each year. Federal tax extension form Also, see Form 730, later. Federal tax extension form Form 720, Quarterly Federal Excise Tax Return. Federal tax extension form File this form by the last day of the month following the calendar quarter. Federal tax extension form Use this form to report a wide variety of excise taxes, including: Communications and air transportation taxes, Fuel taxes, Retail tax, Ship passenger tax, and Manufacturers taxes. Federal tax extension form Form 730, Monthly Tax Return for Wagers. Federal tax extension form Use this form to pay an excise tax on wagers you accept. Federal tax extension form File this form for each month by the last day of the following month. Federal tax extension form Also, see Form 11-C, earlier. Federal tax extension form Form 2290, Heavy Highway Vehicle Use Tax Return. Federal tax extension form Use this form to pay the federal use tax on heavy highway vehicles registered in your name. Federal tax extension form File this form by the last day of the month following the month of the vehicle's first taxable use in the tax period. Federal tax extension form The tax period begins on July 1 and ends the following June 30. Federal tax extension form You must pay the full year's tax on all vehicles you have in use during the month of July. Federal tax extension form You must also pay a partial-year tax on taxable vehicles that you put into use in a month after July. Federal tax extension form For more information, see the Instructions for Form 2290. Federal tax extension form Fiscal-year taxpayers. Federal tax extension form   The dates in this calendar apply whether you use a fiscal year or the calendar year as your tax year. Federal tax extension form Adjustments for Saturday, Sunday, or legal holidays. Federal tax extension form   Generally, if a due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Federal tax extension form For excise taxes, there are two exceptions to this rule. Federal tax extension form For deposits of regular method taxes, if the due date is a Saturday, Sunday, or legal holiday, the due date is the immediately preceding day that is not a Saturday, Sunday, or legal holiday. Federal tax extension form Under the special September deposit rules, if the due date falls on a Saturday, the deposit is due on the preceding Friday. Federal tax extension form If the due date falls on a Sunday, the deposit is due on the following Monday. Federal tax extension form For more information, see the Instructions for Form 720. Federal tax extension form The Excise Tax Calendar has been adjusted for all of these provisions. Federal tax extension form Regular method taxes. Federal tax extension form   These are taxes, other than alternative method taxes used for communication and air transportation taxes, reported on Form 720 for which deposits are required. Federal tax extension form First Quarter The first quarter of a calendar year is made up of January, February, and March. Federal tax extension form Second Quarter The second quarter of a calendar year is made up of April, May, and June. Federal tax extension form Third Quarter The third quarter of a calendar year is made up of July, August, and September. Federal tax extension form Fourth Quarter The fourth quarter of a calendar year is made up of October, November, and December. Federal tax extension form How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Federal tax extension form Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Federal tax extension form Free help with your tax return. Federal tax extension form   Free help in preparing your return is available nationwide from IRS-certified volunteers. Federal tax extension form The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Federal tax extension form The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Federal tax extension form 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 tax extension form Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Federal tax extension form To find the nearest VITA or TCE site, visit IRS. Federal tax extension form gov or call 1-800-906-9887. Federal tax extension form   As part of the TCE program, AARP offers the Tax-Aide counseling program. Federal tax extension form To find the nearest AARP Tax-Aide site, visit AARP's website at www. Federal tax extension form aarp. Federal tax extension form org/money/taxaide or call 1-888-227-7669. Federal tax extension form   For more information on these programs, go to IRS. Federal tax extension form gov and enter “VITA” in the search box. Federal tax extension form Internet. Federal tax extension form IRS. Federal tax extension form gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Federal tax extension form Apply for an Employer Identification Number (EIN). Federal tax extension form Go to IRS. Federal tax extension form gov and enter Apply for an EIN in the search box. Federal tax extension form Request an Electronic Filing PIN by going to IRS. Federal tax extension form gov and entering Electronic Filing PIN in the search box. Federal tax extension form Check the status of your 2013 refund with Where's My Refund? Go to IRS. Federal tax extension form gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Federal tax extension form If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Federal tax extension form Checking the status of your amended return. Federal tax extension form Go to IRS. Federal tax extension form gov and enter Where's My Amended Return in the search box. Federal tax extension form Download forms, instructions, and publications, including some accessible versions. Federal tax extension form Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Federal tax extension form gov or IRS2Go. Federal tax extension form Tax return and tax account transcripts are generally available for the current year and past three years. Federal tax extension form Figure your income tax withholding with the IRS Withholding Calculator on IRS. Federal tax extension form gov. Federal tax extension form 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. Federal tax extension form Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Federal tax extension form gov. Federal tax extension form Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Federal tax extension form gov or IRS2Go. Federal tax extension form Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Federal tax extension form An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Federal tax extension form Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Federal tax extension form If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Federal tax extension form Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Federal tax extension form Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Federal tax extension form gov. Federal tax extension form Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Federal tax extension form The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Federal tax extension form Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Federal tax extension form AARP offers the Tax-Aide counseling program as part of the TCE program. Federal tax extension form Visit AARP's website to find the nearest Tax-Aide location. Federal tax extension form Research your tax questions. Federal tax extension form Search publications and instructions by topic or keyword. Federal tax extension form Read the Internal Revenue Code, regulations, or other official guidance. Federal tax extension form Read Internal Revenue Bulletins. Federal tax extension form Sign up to receive local and national tax news by email. Federal tax extension form Phone. Federal tax extension form You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Federal tax extension form Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Federal tax extension form Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, 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. Federal tax extension form Call to locate the nearest volunteer help site, 1-800-906-9887. Federal tax extension form Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Federal tax extension form The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Federal tax extension form Most VITA and TCE sites offer free electronic filing. Federal tax extension form Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Federal tax extension form Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Federal tax extension form Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Federal tax extension form The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Federal tax extension form If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Federal tax extension form Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Federal tax extension form Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Federal tax extension form Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Federal tax extension form Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Federal tax extension form Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Federal tax extension form You should receive your order within 10 business days. Federal tax extension form Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Federal tax extension form Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Federal tax extension form Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Federal tax extension form Call to ask tax questions, 1-800-829-1040. Federal tax extension form Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Federal tax extension form The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Federal tax extension form These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Federal tax extension form gsa. Federal tax extension form gov/fedrelay. Federal tax extension form Walk-in. Federal tax extension form You can find a selection of forms, publications and services — in-person, face-to-face. Federal tax extension form Products. Federal tax extension form You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Federal tax extension form Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Federal tax extension form Services. Federal tax extension form You can walk in to your local TAC most business days for personal, face-to-face tax help. Federal tax extension form An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Federal tax extension form If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Federal tax extension form No appointment is necessary—just walk in. Federal tax extension form Before visiting, check www. Federal tax extension form irs. Federal tax extension form gov/localcontacts for hours of operation and services provided. Federal tax extension form Mail. Federal tax extension form You can send your order for forms, instructions, and publications to the address below. Federal tax extension form You should receive a response within 10 business days after your request is received. Federal tax extension form  Internal Revenue Service 1201 N. Federal tax extension form Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Federal tax extension form   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Federal tax extension form Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Federal tax extension form What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Federal tax extension form 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. Federal tax extension form You face (or your business is facing) an immediate threat of adverse action. Federal tax extension form You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Federal tax extension form   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. Federal tax extension form Here's why we can help: TAS is an independent organization within the IRS. Federal tax extension form Our advocates know how to work with the IRS. Federal tax extension form Our services are free and tailored to meet your needs. Federal tax extension form We have offices in every state, the District of Columbia, and Puerto Rico. Federal tax extension form 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 www. Federal tax extension form irs. Federal tax extension form gov/advocate, or call us toll-free at 1-877-777-4778. Federal tax extension form How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Federal tax extension form If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Federal tax extension form irs. Federal tax extension form gov/sams. Federal tax extension form Low Income Taxpayer Clinics. Federal tax extension form   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. Federal tax extension form Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Federal tax extension form Visit www. Federal tax extension form TaxpayerAdvocate. Federal tax extension form irs. Federal tax extension form gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Federal tax extension form gnewbus01 Prev  Up  Next   Home   More Online Publications