File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Free Amended Tax Return Online

Forms To File 2012 TaxesH And R Block MilitaryIrs Tax Form 1040ez 2011Taxes H&r BlockEfile State Tax ReturnE File 20111040ez 2010 InstructionsCan I File 2010 Taxes In 2012Filing Taxes For MilitaryH And R Block Free State FileHow Do I Fill Out A 1040x FormTax Return H&r Block1040x Tax Form 20122010 Tax Tables FederalH R Block 2011 DownloadH&r Block AdvantageFederal Tax Form 1040 Ez 20111040ez Mailing AddressFree Tax ServicesFile State Tax OnlyFree State Return TurbotaxMinimum Earnings For Filing Taxes1040 Ez FormFile 1040 Ez Online FreePrior TaxAmend A ReturnEz Tax Return1040ezformHow To File 2010 Tax Returns2013 Form 1040ezFile Tax 1040ez Free OnlineFiling 2011 Taxes In 2013How Do You Do State TaxesInstructions For 1040xAmend 2010 Tax ReturnHrblockInternal Revenue Tax Forms 2010Turbotax File 2010 Tax ReturnI Need To Print A Free 1040x FormFree Online State Income Tax Filing

Free Amended Tax Return Online

Free amended tax return online 3. Free amended tax return online   Unrelated Trade or Business Table of Contents Selling of products of exempt functions. Free amended tax return online Dual use of assets or facilities. Free amended tax return online Exploitation of exempt functions. Free amended tax return online ExamplesExceptions. Free amended tax return online Excluded Trade or Business ActivitiesQualified sponsorship payment. Free amended tax return online Advertising. Free amended tax return online Exception for contingent payments. Free amended tax return online Exception for periodicals. Free amended tax return online Exception for conventions and trade shows. Free amended tax return online Legal definition. Free amended tax return online Legal where played. Free amended tax return online No for-profit games where played. Free amended tax return online Unrelated business income. Free amended tax return online   Unrelated business income is the income from a trade or business regularly conducted by an exempt organization and not substantially related to the performance by the organization of its exempt purpose or function, except that the organization uses the profits derived from this activity. Free amended tax return online   Certain trade or business activities are not treated as an unrelated trade or business. Free amended tax return online See Excluded Trade or Business Activities, later. Free amended tax return online Trade or business. Free amended tax return online   The term “trade or business” generally includes any activity conducted for the production of income from selling goods or performing services. Free amended tax return online An activity does not lose its identity as a trade or business merely because it is conducted within a larger group of similar activities that may or may not be related to the exempt purposes of the organization. Free amended tax return online   For example, the regular sale of pharmaceutical supplies to the general public by a hospital pharmacy does not lose its identity as a trade or business, even though the pharmacy also furnishes supplies to the hospital and patients of the hospital in accordance with its exempt purpose. Free amended tax return online Similarly, soliciting, selling, and publishing commercial advertising is a trade or business even though the advertising is published in an exempt organization's periodical that contains editorial matter related to the organization's exempt purpose. Free amended tax return online Regularly conducted. Free amended tax return online   Business activities of an exempt organization ordinarily are considered regularly conducted if they show a frequency and continuity, and are pursued in a manner similar to comparable commercial activities of nonexempt organizations. Free amended tax return online   For example, a hospital auxiliary's operation of a sandwich stand for 2 weeks at a state fair would not be the regular conduct of a trade or business. Free amended tax return online The stand would not compete with similar facilities that a nonexempt organization would ordinarily operate year-round. Free amended tax return online However, operating a commercial parking lot every Saturday, year-round, would be the regular conduct of a trade or business. Free amended tax return online Not substantially related. Free amended tax return online    A business activity is not substantially related to an organization's exempt purpose if it does not contribute importantly to accomplishing that purpose (other than through the production of funds). Free amended tax return online Whether an activity contributes importantly depends in each case on the facts involved. Free amended tax return online   In determining whether activities contribute importantly to the accomplishment of an exempt purpose, the size and extent of the activities involved must be considered in relation to the nature and extent of the exempt function that they intend to serve. Free amended tax return online For example, to the extent an activity is conducted on a scale larger than is reasonably necessary to perform an exempt purpose, it does not contribute importantly to the accomplishment of the exempt purpose. Free amended tax return online The part of the activity that is more than needed to accomplish the exempt purpose is an unrelated trade or business. Free amended tax return online   Also in determining whether activities contribute importantly to the accomplishment of an exempt purpose, the following principles apply. Free amended tax return online Selling of products of exempt functions. Free amended tax return online   Ordinarily, selling products that result from the performance of exempt functions is not an unrelated trade or business if the product is sold in substantially the same state it is in when the exempt functions are completed. Free amended tax return online Thus, for an exempt organization engaged in rehabilitating handicapped persons (its exempt function), selling articles made by these persons as part of their rehabilitation training is not an unrelated trade or business. Free amended tax return online   However, if a completed product resulting from an exempt function is used or exploited in further business activity beyond what is reasonably appropriate or necessary to dispose of it as is, the activity is an unrelated trade or business. Free amended tax return online For example, if an exempt organization maintains an experimental dairy herd for scientific purposes, the sale of milk and cream produced in the ordinary course of operation of the project is not an unrelated trade or business. Free amended tax return online But if the organization uses the milk and cream in the further manufacture of food items such as ice cream, pastries, etc. Free amended tax return online , the sale of these products is an unrelated trade or business unless the manufacturing activities themselves contribute importantly to the accomplishment of an exempt purpose of the organization. Free amended tax return online Dual use of assets or facilities. Free amended tax return online   If an asset or facility necessary to the conduct of exempt functions is also used in commercial activities, its use for exempt functions does not, by itself, make the commercial activities a related trade or business. Free amended tax return online The test, as discussed earlier, is whether the activities contribute importantly to the accomplishment of exempt purposes. Free amended tax return online   For example, a museum has a theater auditorium designed for showing educational films in connection with its program of public education in the arts and sciences. Free amended tax return online The theater is a principal feature of the museum and operates continuously while the museum is open to the public. Free amended tax return online If the organization also operates the theater as a motion picture theater for the public when the museum is closed, the activity is an unrelated trade or business. Free amended tax return online   For information on allocating expenses for the dual use of assets or facilities, see Deductions in chapter 4. Free amended tax return online Exploitation of exempt functions. Free amended tax return online   Exempt activities sometimes create goodwill or other intangibles that can be exploited in a commercial way. Free amended tax return online When an organization exploits such an intangible in commercial activities, the fact that the income depends in part upon an exempt function of the organization does not make the commercial activities a related trade or business. Free amended tax return online Unless the commercial exploitation contributes importantly to the accomplishment of the exempt purpose, the commercial activities are an unrelated trade or business. Free amended tax return online   For the treatment of expenses attributable to the exploitation of exempt activities, see Deductions in chapter 4. Free amended tax return online Examples The following are examples of activities that were determined to be (or not to be) unrelated trades or businesses using the definitions and principles just discussed. Free amended tax return online Sales commissions. Free amended tax return online   An agricultural organization, whose exempt purposes are to promote better conditions for cattle breeders and to improve the breed generally, engages in an unrelated trade or business when it regularly sells cattle for its members on a commission basis. Free amended tax return online Artists' facilities. Free amended tax return online   An organization whose exempt purpose is to stimulate and foster public interest in the fine arts by promoting art exhibits, sponsoring cultural events, and furnishing information about fine arts leases studio apartments to artist tenants and operates a dining hall primarily for these tenants. Free amended tax return online These two activities do not contribute importantly to accomplishing the organization's exempt purpose. Free amended tax return online Therefore, they are unrelated trades or businesses. Free amended tax return online Membership list sales. Free amended tax return online   An exempt educational organization regularly sells membership mailing lists to business firms. Free amended tax return online This activity does not contribute importantly to the accomplishment of the organization's exempt purpose and therefore is an unrelated trade or business. Free amended tax return online Also see Exchange or rental of member lists under Excluded Trade or Business Activities, later. Free amended tax return online Hospital facilities. Free amended tax return online   An exempt hospital leases its adjacent office building and furnishes certain office services to a hospital-based medical group for a fee. Free amended tax return online The group provides all diagnostic and therapeutic procedures to the hospital's patients and operates the hospital's emergency room on a 24-hour basis. Free amended tax return online The leasing activity is substantially related to the hospital's exempt purpose and is not an unrelated trade or business. Free amended tax return online   The hospital also operates a gift shop patronized by patients, visitors making purchases for patients, and employees; a cafeteria and coffee shop primarily for employees and medical staff; and a parking lot for patients and visitors only. Free amended tax return online These activities are also substantially related to the hospital's exempt purpose and do not constitute unrelated trades or businesses. Free amended tax return online Book publishing. Free amended tax return online   An exempt organization engages primarily in activities that further its exempt purposes. Free amended tax return online It also owns the publication rights to a book that does not relate to any of its exempt purposes. Free amended tax return online The organization exploits the book in a commercial manner by arranging for printing, distribution, publicity, and advertising in connection with the sale of the book. Free amended tax return online These activities constitute a trade or business regularly conducted. Free amended tax return online Because exploiting the book is unrelated to the organization's exempt purposes (except for the use of the book's profits), the income is unrelated business income. Free amended tax return online   However, if the organization transfers publication rights to a commercial publisher in return for royalties, the royalty income received will not be unrelated business income. Free amended tax return online See Royalties under Exclusions in chapter 4. Free amended tax return online School handicraft shop. Free amended tax return online   An exempt vocational school operates a handicraft shop that sells articles made by students in their regular courses of instruction. Free amended tax return online The students are paid a percentage of the sales price. Free amended tax return online In addition, the shop sells products made by local residents who make articles at home according to the shop's specifications. Free amended tax return online The shop manager periodically inspects the articles during their manufacture to ensure that they meet desired standards of style and quality. Free amended tax return online Although many local participants are former students of the school, any qualified person may participate in the program. Free amended tax return online The sale of articles made by students does not constitute an unrelated trade or business, but the sale of products made by local residents is an unrelated trade or business and is subject to unrelated business income tax. Free amended tax return online School facilities. Free amended tax return online   An exempt school has tennis courts and dressing rooms that it uses during the regular school year in its educational program. Free amended tax return online During the summer, the school operates a tennis club open to the general public. Free amended tax return online Employees of the school run the club, including collecting membership fees and scheduling court time. Free amended tax return online   Another exempt school leases the same type of facilities to an unrelated individual who runs a tennis club for the summer. Free amended tax return online The lease is for a fixed fee that does not depend on the income or profits derived from the leased property. Free amended tax return online   In both situations, the exempt purpose is the advancement of education. Free amended tax return online Furnishing tennis facilities in the manner described does not further that exempt purpose. Free amended tax return online These activities are unrelated trades or businesses. Free amended tax return online However, in the second situation the income derived from the leasing of the property is excluded from unrelated business taxable income as rent from real property. Free amended tax return online See Rents under Exclusions in chapter 4. Free amended tax return online Services provided with lease. Free amended tax return online   An exempt university leases its football stadium during several months of the year to a professional football team for a fixed fee. Free amended tax return online Under the lease agreement, the university furnishes heat, light, and water and is responsible for all ground maintenance. Free amended tax return online It also provides dressing room, linen, and stadium security services for the professional team. Free amended tax return online   Leasing of the stadium is an unrelated trade or business. Free amended tax return online In addition, the substantial services furnished for the convenience of the lessee go beyond those usually provided with the rental of space for occupancy only. Free amended tax return online Therefore, the income from this lease is rent from real property and unrelated business taxable income. Free amended tax return online Broadcasting rights. Free amended tax return online   An exempt collegiate athletic conference conducts an annual competitive athletic game between its conference champion and another collegiate team. Free amended tax return online Income is derived from admission charges and the sale of exclusive broadcasting rights to a national radio and television network. Free amended tax return online An athletic program is considered an integral part of the educational process of a university. Free amended tax return online   The educational purposes served by intercollegiate athletics are identical whether conducted directly by individual universities or by their regional athletic conference. Free amended tax return online Also, the educational purposes served by exhibiting a game before an audience that is physically present and exhibiting the game on television or radio before a much larger audience are substantially similar. Free amended tax return online Therefore, the sale of the broadcasting rights contributes importantly to the accomplishment of the organization's exempt purpose and is not an unrelated trade or business. Free amended tax return online   In a similar situation, an exempt organization was created as a national governing body for amateur athletes to foster interest in amateur sports and to encourage widespread public participation. Free amended tax return online The organization receives income each year from the sale of exclusive broadcasting rights to an independent producer, who contracts with a commercial network to broadcast many of the athletic events sponsored, supervised, and regulated by the organization. Free amended tax return online   The broadcasting of these events promotes the various amateur sports, fosters widespread public interest in the benefits of the organization's nationwide amateur program, and encourages public participation. Free amended tax return online The sale of the rights and the broadcasting of the events contribute importantly to the organization's exempt purpose. Free amended tax return online Therefore, the sale of the exclusive broadcasting rights is not an unrelated trade or business. Free amended tax return online Yearbook advertising. Free amended tax return online   An exempt organization receives income from the sale of advertising in its annual yearbook. Free amended tax return online The organization hires an independent commercial firm, under a contract covering a full calendar year, to conduct an intensive advertising solicitation campaign in the organization's name. Free amended tax return online This firm is paid a percentage of the gross advertising receipts for selling the advertising, collecting from advertisers, and printing the yearbook. Free amended tax return online This advertising activity is an unrelated trade or business. Free amended tax return online Pet boarding and grooming services. Free amended tax return online   An exempt organization, organized and operated for the prevention of cruelty to animals, receives unrelated business income from providing pet boarding and grooming services for the general public. Free amended tax return online These activities do not contribute importantly to its purpose of preventing cruelty to animals. Free amended tax return online Museum eating facilities. Free amended tax return online   An exempt art museum operates a dining room, a cafeteria, and a snack bar for use by the museum staff, employees, and visitors. Free amended tax return online Eating facilities in the museum help to attract visitors and allow them to spend more time viewing the museum's exhibits without having to seek outside restaurants at mealtime. Free amended tax return online The eating facilities also allow the museum staff and employees to remain in the museum throughout the day. Free amended tax return online Thus, the museum's operation of the eating facilities contributes importantly to the accomplishment of its exempt purposes and is not unrelated trade or business. Free amended tax return online Halfway house workshop. Free amended tax return online   A halfway house organized to provide room, board, therapy, and counseling for persons discharged from alcoholic treatment centers also operates a furniture shop to provide full-time employment for its residents. Free amended tax return online The profits are applied to the operating costs of the halfway house. Free amended tax return online The income from this venture is not unrelated trade or business income because the furniture shop contributes importantly to the organization's purpose of aiding its residents' transition from treatment to a normal and productive life. Free amended tax return online Travel tour programs. Free amended tax return online   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose for which tax exemption was granted to the organization. Free amended tax return online Example 1. Free amended tax return online A tax-exempt university alumni association provides a travel tour program for its members and their families. Free amended tax return online The organization works with various travel agencies and schedules approximately ten tours a year to various places around the world. Free amended tax return online It mails out promotional material and accepts reservations for fees paid by the travel agencies on a per-person basis. Free amended tax return online The organization provides an employee for each tour as a tour leader. Free amended tax return online There is no formal educational program conducted with these tours, and they do not differ from regular commercially operated tours. Free amended tax return online By providing travel tours to its members, the organization is engaging in a regularly conducted trade or business. Free amended tax return online Even if the tours it offers support the university, financially and otherwise, and encourage alumni to do the same, they do not contribute importantly to the organization's exempt purpose of promoting education. Free amended tax return online Therefore, the sale of the travel tours is an unrelated trade or business. Free amended tax return online Example 2. Free amended tax return online A tax-exempt organization formed for the purpose of educating individuals about the geography and the culture of the United States provides study tours to national parks and other locations within the United States. Free amended tax return online These tours are conducted by teachers and others certified by the state board of education. Free amended tax return online The tours are primarily designed for students enrolled in degree programs at state educational institutions but are open to all who agree to participate in the required study program associated with the tour taken. Free amended tax return online A tour's study program consists of instruction on subjects related to the location being visited on the tour. Free amended tax return online Each tour group brings along a library of material related to the subjects being studied on the tour. Free amended tax return online During the tour, 5 or 6 hours per day are devoted to organized study, preparation of reports, lectures, instruction, and recitation by the students. Free amended tax return online Examinations are given at the end of each tour. Free amended tax return online The state board of education awards academic credit for tour participation. Free amended tax return online Because these tours are substantially related to the organization's exempt purpose, they are not an unrelated trade or business. Free amended tax return online Insurance programs. Free amended tax return online   An organization that acts as a group insurance policyholder for its members and collects a fee for performing administrative services is normally carrying on an unrelated trade or business. Free amended tax return online Exceptions. Free amended tax return online   Organizations whose exempt activities may include the provision of insurance benefits, such as fraternal beneficiary societies, voluntary employees beneficiary associations, and labor organizations, are generally exceptions to this rule. Free amended tax return online Magazine publishing. Free amended tax return online   An association of credit unions with tax-exempt status as a business league publishes a consumer-oriented magazine four times a year and makes it available to member credit unions for purchase. Free amended tax return online   By selling a magazine to its members as a promotional device, the organization furnishes its members with a regular commercial service they can use in their own operations. Free amended tax return online This service does not promote the improvement of business conditions of one or more lines of business, which is the exempt purpose of a business league. Free amended tax return online   Since the activity does not contribute importantly to the organization's exempt function, it is an unrelated trade or business. Free amended tax return online Directory of members. Free amended tax return online   A business league publishes an annual directory that contains a list of all its members, their addresses, and their area of expertise. Free amended tax return online Each member has the same amount of space in the directory, and its format does not emphasize the relative importance or reputation of any member. Free amended tax return online The directory contains no commercial advertisement and is sold only to the organization's members. Free amended tax return online   The directory facilitates communication among the members and encourages the exchange of ideas and expertise. Free amended tax return online Because the directory lists the members in a similar noncommercial format without advertising and is not distributed to the public, its sale does not confer private commercial benefits on the members. Free amended tax return online The sale of the directory does contribute importantly to the organization's exempt purpose and is not an unrelated trade or business. Free amended tax return online This directory differs from the publication discussed next because of its noncommercial characteristics. Free amended tax return online Sales of advertising space. Free amended tax return online   A national association of law enforcement officials publishes a monthly journal that contains articles and other editorial material of professional interest to its members. Free amended tax return online The journal is distributed without charge, mainly to the organization's members. Free amended tax return online   The organization sells advertising space in the journal either for conventional advertising or to merely identify the purchaser without a commercial message. Free amended tax return online Some of the noncommercial advertising identifies the purchaser in a separate space, and some consists of listings of 60 or more purchasers per page. Free amended tax return online A business firm identified in a separate space is further identified in an Index of Advertisers. Free amended tax return online   The organization solicits advertising by personal contacts. Free amended tax return online Advertising from large firms is solicited by contacting their chief executive officer or community relations officer rather than their advertising manager. Free amended tax return online The organization also solicits advertising in form letters appealing for corporate and personal contributions. Free amended tax return online   An exempt organization's sale of advertising placed for the purchaser's commercial benefit is a commercial activity. Free amended tax return online Goodwill derived by the purchaser from being identified as a patron of the organization is usually considered a form of commercial benefit. Free amended tax return online Therefore, advertising in an exempt organization's publication is generally presumed to be placed for the purchaser's commercial benefit, even if it has no commercial message. Free amended tax return online However, this presumption is not conclusive if the purchaser's patronage would be difficult to justify commercially in view of the facts and circumstances. Free amended tax return online In that case, other factors should also be considered in determining whether a commercial benefit can be expected. Free amended tax return online Those other factors include: The normal manner in which the publication is circulated; The territorial scope of the circulation; The extent to which its readers, promoters, or the like could reasonably be expected to further, either directly or indirectly, the commercial interest of the advertisers; The eligibility of the publishing organization to receive tax-deductible contributions; and The commercial or noncommercial methods used to solicit the advertisers. Free amended tax return online   In this situation, the purchaser of a separate advertising space without a commercial message can nevertheless expect a commercial benefit from the goodwill derived from being identified in that manner as a patron of the organization. Free amended tax return online However, the purchaser of a listing cannot expect more than an inconsequential benefit. Free amended tax return online Therefore, the sale of separate spaces, but not the listings, is an unrelated trade or business. Free amended tax return online Publishing legal notices. Free amended tax return online   A bar association publishes a legal journal containing opinions of the county court, articles of professional interest to lawyers, advertisements for products and services used by the legal profession, and legal notices. Free amended tax return online The legal notices are published to satisfy state laws requiring publication of notices in connection with legal proceedings, such as the administration of estates and actions to quiet title to real property. Free amended tax return online The state designated the bar association's journal as the place to publish the required notices. Free amended tax return online   The publication of ordinary commercial advertising does not advance the exempt purposes of the association even when published in a periodical that contains material related to exempt purposes. Free amended tax return online Although the advertising is directed specifically to members of the legal profession, it is still commercial in nature and does not contribute importantly to the exempt purposes of the association. Free amended tax return online Therefore, the advertising income is unrelated trade or business income. Free amended tax return online   On the other hand, the publication of legal notices is distinguishable from ordinary commercial advertising in that its purpose is to inform the general public of significant legal events rather than to stimulate demand for the products or services of an advertiser. Free amended tax return online This promotes the common interests of the legal profession and contributes importantly to the association's exempt purposes. Free amended tax return online Therefore, the publishing of legal notices does not constitute an unrelated trade or business. Free amended tax return online Museum greeting card sales. Free amended tax return online    An art museum that exhibits modern art sells greeting cards that display printed reproductions of selected works from other art collections. Free amended tax return online Each card is imprinted with the name of the artist, the title or subject matter of the work, the date or period of its creation, if known, and the museum's name. Free amended tax return online The cards contain appropriate greetings and are personalized on request. Free amended tax return online   The organization sells the cards in the shop it operates in the museum and sells them at quantity discounts to retail stores. Free amended tax return online It also sells them by mail order through a catalog that is advertised in magazines and other publications throughout the year. Free amended tax return online As a result, a large number of cards are sold at a significant profit. Free amended tax return online   The museum is exempt as an educational organization on the basis of its ownership, maintenance, and exhibition for public viewing of works of art. Free amended tax return online The sale of greeting cards with printed reproductions of artworks contributes importantly to the achievement of the museum's exempt educational purposes by enhancing public awareness, interest, and appreciation of art. Free amended tax return online The cards may encourage more people to visit the museum itself to share in its educational programs. Free amended tax return online The fact that the cards are promoted and sold in a commercial manner at a profit and in competition with commercial greeting card publishers does not alter the fact that the activity is related to the museum's exempt purpose. Free amended tax return online Therefore, these sales activities are not an unrelated trade or business. Free amended tax return online Museum shop. Free amended tax return online   An art museum maintained and operated for the exhibition of American folk art operates a shop in the museum that sells: Reproductions of works in the museum's own collection and reproductions of artistic works from the collections of other art museums (prints suitable for framing, postcards, greeting cards, and slides); Metal, wood, and ceramic copies of American folk art objects from its own collection and similar copies of art objects from other collections of artworks; Instructional literature and scientific books and souvenir items concerning the history and development of art and, in particular, of American folk art; and Scientific books and souvenir items of the city in which the museum is located. Free amended tax return online   The shop also rents originals or reproductions of paintings contained in its collection. Free amended tax return online All of its reproductions are imprinted with the name of the artist, the title or subject matter of the work from which it is reproduced, and the museum's name. Free amended tax return online   Each line of merchandise must be considered separately to determine if sales are related to the exempt purpose. Free amended tax return online   The sale and rental of reproductions and copies of works from the museum's own collection and reproductions of artistic works not owned by the museum contribute importantly to the achievement of the museum's exempt educational purpose by making works of art familiar to a broader segment of the public, thereby enhancing the public's understanding and appreciation of art. Free amended tax return online The same is true for the sale of literature relating to art. Free amended tax return online Therefore, these sales activities are not an unrelated trade or business. Free amended tax return online   On the other hand, the sale of scientific books and souvenir items of the city where the museum is located has no causal relationship to art or to artistic endeavor and, therefore, does not contribute importantly to the accomplishment of the museum's exempt educational purposes. Free amended tax return online The fact that selling some of these items could, under different circumstances, be held related to the exempt educational purpose of some other exempt educational organization does not change this conclusion. Free amended tax return online Additionally, the sale of these items does not lose its identity as a trade or business merely because the museum also sells articles which do contribute importantly to the accomplishment of its exempt function. Free amended tax return online Therefore, these sales are an unrelated trade or business. Free amended tax return online Business league's parking and bus services. Free amended tax return online   A business league, whose purpose is to retain and stimulate trade in a downtown area that has inadequate parking facilities, operates a fringe parking lot and shuttle bus service. Free amended tax return online It also operates, as an insubstantial part of its activities, a park and shop plan. Free amended tax return online   The fringe parking lot and shuttle bus service operate in a manner that does not favor any individual or group of downtown merchants. Free amended tax return online The merchants cannot offer free or discount parking or bus fares to their customers. Free amended tax return online   The park and shop plan allows customers of particular merchants to park free at certain parking lots in the area. Free amended tax return online Merchants participating in this plan buy parking stamps, which they distribute to their customers to use to pay for parking. Free amended tax return online   Operating the fringe parking lot and shuttle bus service provides easy and convenient access to the downtown area and, therefore, stimulates and improves business conditions in the downtown area generally. Free amended tax return online That activity contributes importantly to the organization's accomplishing its exempt purpose and is not an unrelated trade or business. Free amended tax return online   The park and shop plan encourages customers to use a limited number of participating member merchants in order to obtain free parking. Free amended tax return online This provides a particular service to individual members of the organization and does not further its exempt purpose. Free amended tax return online Therefore, operating the park and shop plan is an unrelated trade or business. Free amended tax return online Youth residence. Free amended tax return online   An exempt organization, whose purpose is to provide for the welfare of young people, rents rooms primarily to people under age 25. Free amended tax return online The residence units are operated on, and as a part of, the premises in which the organization carries on the social, recreational, and guidance programs for which it was recognized as exempt. Free amended tax return online The facilities are under the management and supervision of trained career professionals who provide residents with personal counseling, physical education programs, and group recreational activities. Free amended tax return online The rentals are not an unrelated trade or business because renting the rooms is substantially related to the organization's exempt purpose. Free amended tax return online Health club program. Free amended tax return online   An exempt charitable organization's purpose is to provide for the welfare of young people. Free amended tax return online The organization conducts charitable activities and maintains facilities that will contribute to the physical, social, mental, and spiritual health of young people at minimum or no cost to them. Free amended tax return online Nominal annual dues are charged for membership in the organization and use of the facilities. Free amended tax return online   In addition, the organization organized a health club program that its members could join for an annual fee in addition to the annual dues. Free amended tax return online The annual fee is comparable to fees charged by similar local commercial health clubs and is sufficiently high to restrict participation in the program to a limited number of members of the community. Free amended tax return online   The health club program is in addition to the general physical fitness program of the organization. Free amended tax return online Operating this program does not contribute importantly to the organization's accomplishing its exempt purpose and, therefore, is an unrelated trade or business. Free amended tax return online Miniature golf course. Free amended tax return online   An exempt youth welfare organization operates a miniature golf course that is open to the general public. Free amended tax return online The course, which is managed by salaried employees, is substantially similar to commercial courses. Free amended tax return online The admission fees charged are comparable to fees of commercial facilities and are designed to return a profit. Free amended tax return online   The operation of the miniature golf course in a commercial manner does not contribute importantly to the accomplishment of the organization's exempt purpose and, therefore, is an unrelated trade or business. Free amended tax return online Sales of hearing aids. Free amended tax return online   A tax-exempt hospital, whose primary activity is rehabilitation, sells hearing aids to patients. Free amended tax return online This activity is an essential part of the hospital's program to test and evaluate patients with hearing deficiencies and contributes importantly to its exempt purpose. Free amended tax return online It is not an unrelated trade or business. Free amended tax return online Nonpatient laboratory testing. Free amended tax return online   Nonpatient laboratory testing performed by a tax-exempt teaching hospital on specimens needed for the conduct of its teaching activities is not an unrelated trade or business. Free amended tax return online However, laboratory testing performed by a tax-exempt non-teaching hospital on referred specimens from private office patients of staff physicians is an unrelated trade or business if these services are otherwise available in the community. Free amended tax return online Selling endorsements. Free amended tax return online   An exempt scientific organization enjoys an excellent reputation in the field of biological research. Free amended tax return online It exploits this reputation regularly by selling endorsements of laboratory equipment to manufacturers. Free amended tax return online Endorsing laboratory equipment does not contribute importantly to the accomplishment of any purpose for which exemption is granted to the organization. Free amended tax return online Accordingly, the sale of endorsements is an unrelated trade or business. Free amended tax return online Sponsoring entertainment events. Free amended tax return online   An exempt university has a regular faculty and a regularly enrolled student body. Free amended tax return online During the school year, the university sponsors the appearance of professional theater companies and symphony orchestras that present drama and musical performances for the students and faculty members. Free amended tax return online Members of the general public also are admitted. Free amended tax return online The university advertises these performances and supervises advance ticket sales at various places, including such university facilities as the cafeteria and the university bookstore. Free amended tax return online Although the presentation of the performances makes use of an intangible generated by the university's exempt educational functions—the presence of the student body and faculty—such drama and music events contribute importantly to the overall educational and cultural functions of the university. Free amended tax return online Therefore, the activity is not an unrelated trade or business. Free amended tax return online Excluded Trade or Business Activities The following activities are specifically excluded from the definition of unrelated trade or business. Free amended tax return online Volunteer workforce. Free amended tax return online   Any trade or business in which substantially all the work is performed for the organization without compensation is not an unrelated trade or business. Free amended tax return online Example 1. Free amended tax return online A retail store operated by an exempt orphanage where unpaid volunteers perform substantially all the work in carrying on the business is not an unrelated trade or business. Free amended tax return online Example 2. Free amended tax return online A volunteer fire company conducts weekly public dances. Free amended tax return online Holding public dances and charging admission on a regular basis may, given the facts and circumstances of a particular case, be considered an unrelated trade or business. Free amended tax return online However, because the work at the dances is performed by unpaid volunteers, the activity is not an unrelated trade or business. Free amended tax return online Convenience of members. Free amended tax return online   A trade or business conducted by a 501(c)(3) organization or by a governmental college or university primarily for the convenience of its members, students, patients, officers, or employees is not an unrelated trade or business. Free amended tax return online For example, a laundry operated by a college for the purpose of laundering dormitory linens and students' clothing is not an unrelated trade or business. Free amended tax return online Qualified sponsorship activities. Free amended tax return online   Soliciting and receiving qualified sponsorship payments is not an unrelated trade or business, and the payments are not subject to unrelated business income tax. Free amended tax return online Qualified sponsorship payment. Free amended tax return online   This is any payment made by a person engaged in a trade or business for which the person will receive no substantial benefit other than the use or acknowledgment of the business name, logo, or product lines in connection with the organization's activities. Free amended tax return online “Use or acknowledgment” does not include advertising the sponsor's products or services. Free amended tax return online The organization's activities include all its activities, whether or not related to its exempt purposes. Free amended tax return online   For example, if, in return for receiving a sponsorship payment, an organization promises to use the sponsor's name or logo in acknowledging the sponsor's support for an educational or fundraising event, the payment is a qualified sponsorship payment and is not subject to the unrelated business income tax. Free amended tax return online   Providing facilities, services, or other privileges (for example, complimentary tickets, pro-am playing spots in golf tournaments, or receptions for major donors) to a sponsor or the sponsor's designees in connection with a sponsorship payment does not affect whether the payment is a qualified sponsorship payment. Free amended tax return online Instead, providing these goods or services is treated as a separate transaction in determining whether the organization has unrelated business income from the event. Free amended tax return online Generally, if the services or facilities are not a substantial benefit or if providing them is a related business activity, the payments will not be subject to the unrelated business income tax. Free amended tax return online   Similarly, the sponsor's receipt of a license to use an intangible asset (for example, a trademark, logo, or designation) of the organization is treated as separate from the qualified sponsorship transaction in determining whether the organization has unrelated business taxable income. Free amended tax return online   If part of a payment would be a qualified sponsorship payment if paid separately, that part is treated as a separate payment. Free amended tax return online For example, if a sponsorship payment entitles the sponsor to both product advertising and the use or acknowledgment of the sponsor's name or logo by the organization, then the unrelated business income tax does not apply to the part of the payment that is more than the fair market value of the product advertising. Free amended tax return online Advertising. Free amended tax return online   A payment is not a qualified sponsorship payment if, in return, the organization advertises the sponsor's products or services. Free amended tax return online For information on the treatment of payments for advertising, see Exploitation of Exempt Activity—Advertising Sales in chapter 4. Free amended tax return online   Advertising includes: Messages containing qualitative or comparative language, price information, or other indications of savings or value; Endorsements; and Inducements to purchase, sell, or use the products or services. Free amended tax return online   The use of promotional logos or slogans that are an established part of the sponsor's identity is not, by itself, advertising. Free amended tax return online In addition, mere distribution or display of a sponsor's product by the organization to the public at a sponsored event, whether for free or for remuneration, is considered use or acknowledgment of the product rather than advertising. Free amended tax return online Exception for contingent payments. Free amended tax return online   A payment is not a qualified sponsorship payment if its amount is contingent, by contract or otherwise, upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. Free amended tax return online However, the fact that a sponsorship payment is contingent upon an event actually taking place or being broadcast does not, by itself, affect whether a payment qualifies. Free amended tax return online Exception for periodicals. Free amended tax return online   A payment is not a qualified sponsorship payment if it entitles the payer to the use or acknowledgment of the business name, logo, or product lines in the organization's periodical. Free amended tax return online For this purpose, a periodical is any regularly scheduled and printed material (for example, a monthly journal) published by or on behalf of the organization. Free amended tax return online It does not include material that is related to and primarily distributed in connection with a specific event conducted by the organization (for example, a program or brochure distributed at a sponsored event). Free amended tax return online   The treatment of payments that entitle the payer to the depiction of the payer's name, logo, or products lines in an organization's periodical is determined under the rules that apply to advertising activities. Free amended tax return online See Sales of advertising space under Examples, earlier in this chapter. Free amended tax return online Also see Exploitation of Exempt Activity—Advertising Sales in chapter 4. Free amended tax return online Exception for conventions and trade shows. Free amended tax return online   A payment is not a qualified sponsorship payment if it is made in connection with any qualified convention or trade show activity. Free amended tax return online The exclusion of qualified convention or trade show activities from the definition of unrelated trade or business is explained later under Convention or trade show activity. Free amended tax return online Selling donated merchandise. Free amended tax return online   A trade or business that consists of selling merchandise, substantially all of which the organization received as gifts or contributions, is not an unrelated trade or business. Free amended tax return online For example, a thrift shop operated by a tax-exempt organization that sells donated clothes and books to the general public, with the proceeds going to the exempt organization, is not an unrelated trade or business. Free amended tax return online Employee association sales. Free amended tax return online   The sale of certain items by a local association of employees described in section 501(c)(4), organized before May 17, 1969, is not an unrelated trade or business if the items are sold for the convenience of the association's members at their usual place of employment. Free amended tax return online This exclusion applies only to the sale of work-related clothes and equipment and items normally sold through vending machines, food dispensing facilities, or by snack bars. Free amended tax return online Bingo games. Free amended tax return online   Certain bingo games are not included in the term “unrelated trade or business. Free amended tax return online ” To qualify for this exclusion, the bingo game must meet the following requirements. Free amended tax return online It meets the legal definition of bingo. Free amended tax return online It is legal where it is played. Free amended tax return online It is played in a jurisdiction where bingo games are not regularly conducted by for-profit organizations. Free amended tax return online Legal definition. Free amended tax return online   For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. Free amended tax return online   A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion, regardless of its name. Free amended tax return online For example, “instant bingo,” in which a player buys a pre-packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. Free amended tax return online Legal where played. Free amended tax return online   This exclusion applies only if bingo is legal under the laws of the jurisdiction where it is conducted. Free amended tax return online The fact that a jurisdiction's law that prohibits bingo is rarely enforced or is widely disregarded does not make the conduct of bingo legal for this purpose. Free amended tax return online No for-profit games where played. Free amended tax return online   This exclusion applies only if for-profit organizations cannot regularly conduct bingo games in any part of the same jurisdiction. Free amended tax return online Jurisdiction is normally the entire state; however, in certain situations, local jurisdiction will control. Free amended tax return online Example. Free amended tax return online Tax-exempt organizations X and Y are organized under the laws of state N, which has a law that permits exempt organizations to conduct bingo games. Free amended tax return online In addition, for-profit organizations are permitted to conduct bingo games in city S, a resort community located in county R. Free amended tax return online Several for-profit organizations conduct nightly games. Free amended tax return online Y conducts weekly bingo games in city S, while X conducts weekly games in county R. Free amended tax return online Since state law confines the for-profit organizations to city S, local jurisdiction controls. Free amended tax return online Y's bingo games conducted in city S are an unrelated trade or business. Free amended tax return online However, X's bingo games conducted in county R outside of city S are not an unrelated trade or business. Free amended tax return online Gambling activities other than bingo. Free amended tax return online   Any game of chance conducted by an exempt organization in North Dakota is not an unrelated trade or business if conducting the game does not violate any state or local law. Free amended tax return online Pole rentals. Free amended tax return online   The term unrelated trade or business does not include qualified pole rentals by a mutual or cooperative telephone or electric company described in section 501(c)(12). Free amended tax return online A qualified pole rental is the rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that the company uses in providing telephone or electric services to its members, and According to the rental, to support one or more wires (in addition to the wires described in 1 ) for use in connection with the transmission by wire of electricity or of telephone or other communications. Free amended tax return online For this purpose, the term rental includes any sale of the right to use the pole (or other structure). Free amended tax return online Distribution of low cost articles. Free amended tax return online   The term unrelated trade or business does not include activities relating to the distribution of low cost articles incidental to soliciting charitable contributions. Free amended tax return online This applies to organizations described in section 501 that are eligible to receive charitable contributions. Free amended tax return online   A distribution is considered incidental to the solicitation of a charitable contribution if: The recipient did not request the distribution, The distribution is made without the express consent of the recipient, and The article is accompanied by a request for a charitable contribution to the organization and a statement that the recipient may keep the low cost article regardless of whether a contribution is made. Free amended tax return online   An article is considered low cost if the cost of an item (or the aggregate costs if more than one item) distributed to a single recipient in a tax year is not more than $5, indexed annually for inflation. Free amended tax return online The maximum cost of a low cost article is $9. Free amended tax return online 70 for 2011. Free amended tax return online The cost of an article is the cost to the organization that distributes the item or on whose behalf it is distributed. Free amended tax return online Exchange or rental of member lists. Free amended tax return online   The exchange or rental of member or donor lists between organizations described in section 501 that are eligible to receive charitable contributions is not included in the term unrelated trade or business. Free amended tax return online Hospital services. Free amended tax return online   The providing of certain services at or below cost by an exempt hospital to other exempt hospitals that have facilities for 100 or fewer inpatients is not an unrelated trade or business. Free amended tax return online This exclusion applies only to services described in section 501(e)(1)(A). Free amended tax return online Public entertainment activity. Free amended tax return online   An unrelated trade or business does not include a qualified public entertainment activity. Free amended tax return online A public entertainment activity is one traditionally conducted at a fair or exposition promoting agriculture and education, including any activity whose purpose is designed to attract the public to fairs or expositions or to promote the breeding of animals or the development of products or equipment. Free amended tax return online   A qualified public entertainment activity is one conducted by a qualifying organization: In conjunction with an international, national, state, regional, or local fair or exposition; In accordance with state law that permits the activity to be operated or conducted solely by such an organization or by an agency, instrumentality, or political subdivision of the state; or In accordance with state law that permits an organization to be granted a license to conduct an activity for not more than 20 days on paying the state a lower percentage of the revenue from the activity than the state charges nonqualifying organizations that hold similar activities. Free amended tax return online   For these purposes, a qualifying organization is an organization described in section 501(c)(3), 501(c)(4), or 501(c)(5) that regularly conducts an agricultural and educational fair or exposition as one of its substantial exempt purposes. Free amended tax return online Its conducting qualified public entertainment activities will not affect determination of its exempt status. Free amended tax return online Convention or trade show activity. Free amended tax return online   An unrelated trade or business does not include qualified convention or trade show activities conducted at a convention, annual meeting, or trade show. Free amended tax return online   A qualified convention or trade show activity is any activity of a kind traditionally conducted by a qualifying organization in conjunction with an international, national, state, regional, or local convention, annual meeting, or show if: One of the purposes of the organization in sponsoring the activity is promoting and stimulating interest in, and demand for, the products and services of that industry or educating the persons in attendance regarding new products and services or new rules and regulations affecting the industry; and The show is designed to achieve its purpose through the character of the exhibits and the extent of the industry products that are displayed. Free amended tax return online   For these purposes, a qualifying organization is one described in section 501(c)(3), 501(c)(4), 501(c)(5), or 501(c)(6). Free amended tax return online The organization must regularly conduct, as one of its substantial exempt purposes, a qualified convention or trade show activity. Free amended tax return online   The rental of display space to exhibitors (including exhibitors who are suppliers) at a qualified convention or trade show is not an unrelated trade or business even if the exhibitors who rent the space are permitted to sell or solicit orders. Free amended tax return online For this purpose, a supplier's exhibit is one in which the exhibitor displays goods or services that are supplied to, rather than by, members of the qualifying organization in the conduct of these members' own trades or businesses. Free amended tax return online    Certain Internet activities conducted by a trade association described in section 501(c)(6) will be considered qualified convention and trade show activity if conducted on a special supplementary section of the association's website in conjunction with a trade show conducted by the association. Free amended tax return online The trade show itself must be a qualified convention and trade show activity. Free amended tax return online The supplementary section of the website must be ancillary to, and serve to augment and enhance, the trade show, as when it makes available the same information available at the trade show and is available only during a time period that coincides with the time period that the trade show is in operation. Free amended tax return online Conversely, Internet activities that are not conducted in conjunction with a qualified convention and trade show activity and that do not augment and enhance the trade show cannot themselves be qualified convention and trade show activity. Free amended tax return online Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Contact My Local Office in Tennessee

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Chattanooga  5740 Uptain Rd.
Chattanooga, TN 37411 

Monday-Friday - 8:30 a.m.-4:30 p.m.
 

Services Provided

(423) 855-6460 
Jackson  109 S. Highland
Jackson, TN 38301 

Monday- Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(731) 423-2441 
Johnson City  2513 Wesley St.
Johnson City, TN 37601 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

Services Provided

(423) 282-5024 
Knoxville  710 Locust St.
Knoxville, TN 37902 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**
 

Services Provided

(865) 545-4794 
Memphis  22 N. Front St.
Memphis, TN 38103 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**


Services Provided

(901) 544-3243 
Nashville  801 Broadway
Nashville, TN 37203 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**


Services Provided

(615) 250-5656 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (615) 250-5000 in Nashville or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see  Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
801 Broadway, MDP-46
Nashville, TN 37203

Internal Revenue Service
22 N. Front Street, Suite 400
Memphis, TN 38103

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Free Amended Tax Return Online

Free amended tax return online Publication 908 - Main Content Table of Contents Bankruptcy Code Tax Compliance RequirementsTax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases Tax Returns Due After the Bankruptcy Filing Individuals in Chapter 12 or 13 Individuals in Chapter 7 or 11Debtor's Election To End Tax Year – Form 1040 Taxes and the Bankruptcy Estate Bankruptcy Estate – Income, Deductions, and Credits Tax Reporting – Chapter 11 Cases Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Tax Return Example – Form 1041 Partnerships and CorporationsFiling Requirements Partnerships Corporations Receiverships Determination of TaxPrompt Determination Requests Court Jurisdiction Over Tax MattersBankruptcy Court Tax Court Federal Tax ClaimsUnsecured Tax Claims Discharge of Unpaid Tax Debt CancellationExclusions Reduction of Tax Attributes Partnerships Corporations Tax Attribute Reduction Example How To Get Tax HelpTaxpayer Advocacy Panel (TAP). Free amended tax return online Low Income Taxpayer Clinics (LITCs). Free amended tax return online Bankruptcy Code Tax Compliance Requirements Tax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases The Bankruptcy Code requires chapter 13 debtors to file all required tax returns for tax periods ending within 4 years of the debtor's bankruptcy filing. Free amended tax return online All such federal tax returns must be filed with the IRS before the date first set for the first meeting of creditors. Free amended tax return online The debtor may request the trustee to hold the meeting open for an additional 120 days to enable the debtor to file the returns (or until the day the returns are due under an automatic IRS extension, if later). Free amended tax return online After notice and hearing, the bankruptcy court may extend the period for another 30 days. Free amended tax return online Failure to timely file the returns can prevent confirmation of a chapter 13 plan and result in either dismissal of the chapter 13 case or conversion to a chapter 7 case. Free amended tax return online Note. Free amended tax return online Individual debtors should use their home address when filing Form 1040 with the IRS. Free amended tax return online Returns should not be filed “in care of” the trustee's address. Free amended tax return online Ordering tax transcripts and copies of returns. Free amended tax return online   Trustees may require the debtor to submit copies or transcripts of the debtor's returns as proof of filing. Free amended tax return online The debtor can request free transcripts of the debtor's income tax returns by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS or by placing a request on the IRS's free Automated Delivery Service (ADS), available by calling 1-800-829-1040. Free amended tax return online If requested through ADS, the transcript will be mailed to the debtor's most current address according to the IRS's records. Free amended tax return online Transcripts requested using Form 4506-T may be mailed to any address, including to the attention of the trustee in the debtor's bankruptcy case. Free amended tax return online Transcripts are normally mailed within 10 to 15 days of receipt of the request by the IRS. Free amended tax return online A transcript contains most of the information on the debtor's filed return, but it is not a copy of the return. Free amended tax return online To request a copy of the debtor's filed return, file Form 4506, Request for Copy of Tax Return. Free amended tax return online It may take up to 60 days for the IRS to provide the copies after receipt of the debtor's request, and there is a fee of $57. Free amended tax return online 00 per tax return for copies of the returns. Free amended tax return online Tax Returns Due After the Bankruptcy Filing For debtors filing bankruptcy under all chapters (chapters 7, 11, 12, or 13), the Bankruptcy Code provides that if the debtor does not file a tax return that becomes due after the commencement of the bankruptcy case, or obtain an extension for filing the return before the due date, the taxing authority may request that the bankruptcy court either dismiss the case or convert the case to a case under another chapter of the Bankruptcy Code. Free amended tax return online If the debtor does not file the required return or obtain an extension within 90 days after the request is made, the bankruptcy court must dismiss or convert the case. Free amended tax return online Tax returns and payment of taxes in chapter 11 cases. Free amended tax return online   The Bankruptcy Code provides that a chapter 11 debtor's failure to timely file tax returns and pay taxes owed after the date of the “order for relief” (the bankruptcy petition date in voluntary cases) is cause for dismissal of the chapter 11 case, conversion to a chapter 7 case, or appointment of a chapter 11 trustee. Free amended tax return online Disclosure of debtor's return information to trustee. Free amended tax return online   In bankruptcy cases filed under chapter 7 or 11 by individuals, the debtor's income tax returns for the year the bankruptcy case begins and for earlier years are, upon written request, open to inspection by or disclosure to the trustee. Free amended tax return online If the bankruptcy case was not voluntary, disclosure cannot be made before the bankruptcy court has entered an order for relief, unless the court rules that the disclosure is needed for determining whether relief should be ordered. Free amended tax return online    In bankruptcy cases other than those of individuals filing under chapter 7 or 11, the debtor's income tax returns for the current and prior years are, upon written request, open to inspection by or disclosure to the trustee, but only if the IRS finds that the trustee has a material interest that will be affected by information on the return. Free amended tax return online Material interest is generally defined as a financial or monetary interest. Free amended tax return online Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Free amended tax return online   However, the U. Free amended tax return online S. Free amended tax return online Trustee (an officer of the Department of Justice, responsible for maintaining and supervising a panel of private trustees for chapter 7 bankruptcy cases) and the standing chapter 13 trustee (the administrator of chapter 13 cases in a specific geographic region) generally do not have a material interest in the debtor’s return or return information. Free amended tax return online Disclosure of bankruptcy estate's return information to debtor. Free amended tax return online    The bankruptcy estate's tax return(s) are open, upon written request, to inspection by or disclosure to the individual debtor in a chapter 7 or 11 bankruptcy. Free amended tax return online Disclosure of the estate's return to the debtor may be necessary to enable the debtor to determine the amount and nature of the tax attributes, if any, that the debtor assumes when the bankruptcy estate terminates. Free amended tax return online Individuals in Chapter 12 or 13 Only individuals may file a chapter 13 bankruptcy. Free amended tax return online Chapter 13 relief is not available to corporations or partnerships. Free amended tax return online The bankruptcy estate is not treated as a separate entity for tax purposes when an individual files a petition under chapter 12 (Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income) or 13 (Adjustment of Debts of an Individual with Regular Income) of the Bankruptcy Code. Free amended tax return online In these cases the individual continues to file the same federal income tax returns that were filed prior to the bankruptcy petition, Form 1040, U. Free amended tax return online S. Free amended tax return online Individual Income Tax Return. Free amended tax return online On the debtor's individual tax return, Form 1040, report all income received during the entire year and deduct all allowable expenses. Free amended tax return online Do not include in income the amount from any debt canceled due to the debtor's bankruptcy. Free amended tax return online To the extent the debtor has any losses, credits, or basis in property that were previously reduced as a result of canceled debt, these reductions must be included on the debtor's return. Free amended tax return online See Debt Cancellation, later. Free amended tax return online Interest on trust accounts in chapter 13 cases. Free amended tax return online   In chapter 13 proceedings, do not include interest earned on amounts held by the trustee in trust accounts as income on the debtor's return. Free amended tax return online This interest is not available to either the debtor or creditors, it is available only to the trustee for use by the U. Free amended tax return online S. Free amended tax return online Trustee system. Free amended tax return online The interest is also not taxable to the trustee as income. Free amended tax return online Individuals in Chapter 7 or 11 When an individual debtor files for bankruptcy under chapter 7 or 11 of the Bankruptcy Code, the bankruptcy estate is treated as a new taxable entity, separate from the individual taxpayer. Free amended tax return online The bankruptcy estate in a chapter 7 case is represented by a trustee. Free amended tax return online The trustee is appointed to administer the estate and liquidate any nonexempt assets. Free amended tax return online In chapter 11 cases, the debtor often remains in control of the assets as a “debtor-in-possession” and acts as the bankruptcy trustee. Free amended tax return online However, the bankruptcy court, for cause, may appoint a trustee if such appointment is in the best interests of the creditors and the estate. Free amended tax return online During the chapter 7 or 11 bankruptcy, the debtor continues to file an individual tax return on Form 1040. Free amended tax return online The bankruptcy trustee files a Form 1041 for the bankruptcy estate. Free amended tax return online However, when a debtor in a chapter 11 bankruptcy case remains a debtor-in-possession, he or she must file both a Form 1040 individual return and a Form 1041 estate return for the bankruptcy estate (if return filing requirements are met). Free amended tax return online Although a husband and wife may file a joint bankruptcy petition whose bankruptcy estates are jointly administered, the estates are be treated as two separate entities for tax purposes. Free amended tax return online Two separate bankruptcy estate income tax returns must be filed (if each spouse separately meets the filing requirements). Free amended tax return online For information about determining the tax due and paying tax for a chapter 7 or 11 bankruptcy estate, see Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Free amended tax return online Debtor's Election To End Tax Year – Form 1040 Short tax years. Free amended tax return online   An individual debtor in a chapter 7 or 11 case may elect to close the debtor's tax year for the year in which the bankruptcy petition is filed, as of the day before the date on which the bankruptcy case commences. Free amended tax return online If the debtor makes this election, the debtor's tax year is divided into 2 short tax years of less than 12 months each. Free amended tax return online The first tax year ends on the day before the commencement date and the second tax year begins on the commencement date. Free amended tax return online   If the election is made, the debtor's federal income tax liability for the first short tax year becomes an allowable claim against the bankruptcy estate arising before the bankruptcy filing. Free amended tax return online Also, the tax liability for the first short tax year is not subject to discharge under the Bankruptcy Code. Free amended tax return online    If the debtor does not make an election to end the tax year, the commencement of the bankruptcy case does not affect the debtor's tax year. Free amended tax return online Also, no part of the debtor's income tax liability for the year in which the bankruptcy case commences can be collected from the bankruptcy estate. Free amended tax return online Note. Free amended tax return online The debtor cannot make a short tax year election if no assets, other than exempt property, are in the bankruptcy estate. Free amended tax return online Making the Election - Filing Requirements First short tax year. Free amended tax return online   The debtor can elect to end the debtor's tax year by filing a return on Form 1040 for the first short tax year. Free amended tax return online The return must be filed on or before the 15th day of the fourth full month after the end of that first tax year. Free amended tax return online Second short tax year. Free amended tax return online   If the debtor elects to end the tax year on the day before filing the bankruptcy case, the debtor must file the return for the first short tax year in the manner discussed above. Free amended tax return online   If the debtor makes this election, the debtor must also file a separate Form 1040 for the second short tax year by the regular due date. Free amended tax return online To avoid delays in processing the return, write “Second Short Year Return After Section 1398 Election” at the top of the return. Free amended tax return online Example. Free amended tax return online Jane Doe, an individual calendar year taxpayer, filed a bankruptcy petition under chapter 7 or 11 on May 8, 2012. Free amended tax return online If Jane elected to close her tax year at the commencement of her case, Jane's first short year for 2012 runs from January 1 through May 7, 2012. Free amended tax return online Jane's second short year runs from May 8, 2012, through December 31, 2012. Free amended tax return online To have a timely filed election for the first short year, Jane must file Form 1040 (or an extension of time to file) for the period January 1 through May 7 by September 15. Free amended tax return online To avoid delays in processing the return, write “Section 1398 Election” at the top of the return. Free amended tax return online The debtor may also make the election by attaching a statement to Form 4868, Automatic Extension of Time to File an U. Free amended tax return online S. Free amended tax return online Individual Tax Return. Free amended tax return online The statement must state that the debtor elects under IRC section 1398(d)(2) to close the debtor's tax year on the day before filing the bankruptcy case. Free amended tax return online The debtor must file Form 4868 by the due date of the return for the first short tax year. Free amended tax return online The debtor's spouse may also elect to close his or her tax year, see Election by debtor's spouse, below. Free amended tax return online Election by debtor's spouse. Free amended tax return online   If the debtor is married, the debtor's spouse may join in the election to end the tax year. Free amended tax return online If the debtor and spouse make a joint election, the debtor must file a joint return for the first short tax year. Free amended tax return online The debtor must elect by the due date for filing the return for the first short tax year. Free amended tax return online Once the election is made, it cannot be revoked for the first short tax year. Free amended tax return online However, the election does not prevent the debtor and the spouse from filing separate returns for the second short tax year. Free amended tax return online Later bankruptcy of spouse. Free amended tax return online    If the debtor's spouse files for bankruptcy later in the same year, he or she may also choose to end his or her tax year, regardless of whether he or she joined in the election to end the debtor's tax year. Free amended tax return online   As each spouse has a separate bankruptcy, one or both of them may have 3 short tax years in the same calendar year. Free amended tax return online If the debtor's spouse joined the debtor's election or if the debtor had not made the election to end the tax year, the debtor can join in the spouse's election. Free amended tax return online However, if the debtor made an election and the spouse did not join that election, the debtor cannot then join the spouse's later election. Free amended tax return online The debtor and the spouse are precluded from this election because they have different tax years. Free amended tax return online This results because the debtor does not have a tax year ending the day before the spouse's filing for bankruptcy, and the debtor cannot file a joint return for a year ending on the day before the spouse's filing of bankruptcy. Free amended tax return online Example 1. Free amended tax return online Paul and Mary Harris are calendar-year taxpayers. Free amended tax return online Paul's voluntary chapter 7 bankruptcy case begins on March 4. Free amended tax return online If Paul does not make an election, his tax year does not end on March 3. Free amended tax return online If he makes an election, Paul's first tax year is January 1–March 3, and his second tax year begins on March 4. Free amended tax return online Mary could join in Paul's election as long as they file a joint return for the tax year January 1–March 3. Free amended tax return online They must make the election by July 15, the due date for filing the joint return. Free amended tax return online Example 2. Free amended tax return online Fred and Ethel Barnes are calendar-year taxpayers. Free amended tax return online Fred's voluntary chapter 7 bankruptcy case begins on May 6, and Ethel's bankruptcy case begins on November 1 of the same year. Free amended tax return online Ethel could elect to end her tax year on October 31. Free amended tax return online If Fred did not elect to end his tax year on May 5, or if he elected to do so but Ethel had not joined in his election, Ethel would have 2 tax years in the same calendar year if she decided to close her tax year. Free amended tax return online Her first tax year is January 1–October 31, and her second year is November 1–December 31. Free amended tax return online If Fred did not end his tax year as of May 5, he could join in Ethel's election to close her tax year on October 31, but only if they file a joint return for the tax year January 1–October 31. Free amended tax return online If Fred elected to end his tax year on May 5, but Ethel did not join in Fred's election, Fred cannot join in Ethel's election to end her tax year on October 31. Free amended tax return online Fred and Ethel cannot file a joint return for that short tax year because their tax years preceding October 31 were not the same. Free amended tax return online Example 3. Free amended tax return online Jack and Karen Thomas are calendar-year taxpayers. Free amended tax return online Karen's voluntary chapter 7 bankruptcy case began on April 10, and Jack's voluntary chapter 7 bankruptcy case began on October 3 of the same year. Free amended tax return online Karen elected to close her tax year on April 9 and Jack joins in Karen's election. Free amended tax return online Under these facts, Jack would have 3 tax years for the same calendar year if he makes the election relating to his own bankruptcy case. Free amended tax return online The first tax year would be January 1–April 9; the second, April 10–October 2; and the third, October 3–December 31. Free amended tax return online Karen may join in Jack's election if they file a joint return for the second short tax year (April 10–October 2). Free amended tax return online If Karen does join in, she would have the same 3 short tax years as Jack. Free amended tax return online Also, if Karen joins in Jack's election, they may file a joint return for the third tax year (October 3–December 31), but they are not required to do so. Free amended tax return online Annualizing taxable income. Free amended tax return online   If the debtor elects to close the tax year, the debtor must annualize taxable income for each short tax year in the same manner a change in annual accounting period is calculated. Free amended tax return online See Short Tax Year in Publication 538, for information on how to annualize the debtor's income and to figure the tax for the short tax year. Free amended tax return online Dismissal of bankruptcy case. Free amended tax return online   If the bankruptcy court later dismisses an individual chapter 7 or 11 case, the bankruptcy estate is no longer treated as a separate taxable entity. Free amended tax return online It is as if no bankruptcy estate was created for tax purposes. Free amended tax return online In this situation, the debtor must file amended tax returns on Form 1040X, to replace all full or short year individual returns (Form 1040) and bankruptcy estate returns (Form 1041) filed as a result of the bankruptcy case. Free amended tax return online Income, deductions, and credits previously reported by the bankruptcy estate must be reported on the debtor's amended returns. Free amended tax return online Attach a statement to the amended returns explaining why the debtor is filing an amended return. Free amended tax return online Taxes and the Bankruptcy Estate Property of the bankruptcy estate. Free amended tax return online   At the commencement of a bankruptcy case a bankruptcy estate is created. Free amended tax return online Bankruptcy law determines which of the debtor's assets become part of a bankruptcy estate. Free amended tax return online This estate generally includes all of the debtor's legal and equitable interests in property as of the commencement date. Free amended tax return online However, there are exceptions and certain property is exempted or excluded from the bankruptcy estate. Free amended tax return online Note. Free amended tax return online Exempt property and abandoned property are initially part of the bankruptcy estate, but are subsequently removed from the estate. Free amended tax return online Excluded property is never included in the estate. Free amended tax return online Transfer of assets between debtor and bankruptcy estate. Free amended tax return online   The transfer (other than by sale or exchange) of an asset from the debtor to the bankruptcy estate is not treated as a disposition for income tax purposes. Free amended tax return online The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits. Free amended tax return online For example, the transfer of an installment obligation to the estate would not accelerate gain under the rules for reporting installment sales. Free amended tax return online The estate assumes the same basis, holding period, and character of the transferred assets. Free amended tax return online Also, the estate generally accounts for the transferred assets in the same manner as debtor. Free amended tax return online   When the bankruptcy estate is terminated or dissolved, any resulting transfer (other than by sale or exchange) of the estate's assets back to the debtor is also not treated as a disposition for tax purposes. Free amended tax return online The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits to the estate. Free amended tax return online Abandoned property. Free amended tax return online    The abandonment of property by the estate to the debtor is a nontaxable disposition of property. Free amended tax return online If the debtor received abandoned property from the bankruptcy estate, the debtor assumes the same basis in the property that the bankruptcy estate had. Free amended tax return online Separate taxable entity. Free amended tax return online   When an individual files a bankruptcy petition under chapter 7 or 11, the bankruptcy estate is treated as a separate taxable entity from the debtor. Free amended tax return online The court appointed trustee or the debtor-in-possession is responsible for preparing and filing all of the bankruptcy estate's tax returns, including its income tax return on Form 1041, U. Free amended tax return online S. Free amended tax return online Income Tax Return for Estates and Trusts, and paying its taxes. Free amended tax return online The debtor remains responsible for filing his or her own returns on Form 1040, U. Free amended tax return online S. Free amended tax return online Individual Income Tax Return, and paying taxes on income that does not belong to the estate. Free amended tax return online Employer identification number. Free amended tax return online   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Free amended tax return online The trustee or debtor-in-possession uses this EIN on all tax returns filed for the bankruptcy estate with the IRS, including estimated tax returns. Free amended tax return online See Employer identification number, under Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Free amended tax return online    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Free amended tax return online Income, deductions, and credits – Form 1040. Free amended tax return online   In an individual chapter 7 or 11 bankruptcy case, do not include the income, deductions, and credits that belong to the bankruptcy estate on the debtor's individual income tax return (Form 1040). Free amended tax return online Also, do not include as income on the debtor's return the amount of any debt canceled by reason of the bankruptcy discharge. Free amended tax return online The bankruptcy estate must reduce certain losses, credits, and the basis in property (to the extent of these items) by the amount of canceled debt. Free amended tax return online See Debt Cancellation, below. Free amended tax return online Note. Free amended tax return online The debtor may not be able to claim certain deductions available to the bankruptcy estate such as administrative expenses. Free amended tax return online Additionally, the bankruptcy exclusion cannot be used to exclude income from a cancelled debt if the discharge of indebtedness was not within the bankruptcy case, even though the debtor was under the bankruptcy court's protection at the time. Free amended tax return online However, other exclusions, such as the insolvency exclusion, may apply. Free amended tax return online Bankruptcy Estate – Income, Deductions, and Credits Bankruptcy Estate Income Income of the estate in individual chapter 7 cases. Free amended tax return online    The gross income of the bankruptcy estate includes gross income of the debtor to which the estate is entitled under the Bankruptcy Code. Free amended tax return online Gross income also includes income generated by the bankruptcy estate from property of the estate after the commencement of the case. Free amended tax return online   Gross income of the bankruptcy estate does not include amounts received or accrued by the debtor before the commencement of the case. Free amended tax return online Additionally, in chapter 7 cases, gross income of the bankruptcy estate does not include any income that the debtor earns after the date of the bankruptcy petition. Free amended tax return online Income of the estate in individual chapter 11 cases. Free amended tax return online    In chapter 11 cases, under IRC section 1398(e)(1), gross income of the bankruptcy estate includes income that the debtor earns for services performed after the bankruptcy petition date. Free amended tax return online Also, earnings from services performed by an individual debtor after the commencement of the chapter 11 case are property of the bankruptcy estate under section 1115 of the Bankruptcy Code (11 U. Free amended tax return online S. Free amended tax return online C. Free amended tax return online section 1115). Free amended tax return online Note. Free amended tax return online A debtor-in-possession may be compensated by the estate for managing or operating a trade or business that the debtor conducted before the commencement of the bankruptcy case. Free amended tax return online Such payments should be reported by the debtor as miscellaneous income on his or her individual income tax return (Form 1040). Free amended tax return online Amounts paid by the estate to the debtor-in-possession for managing or operating the trade or business may qualify as administrative expenses of the estate. Free amended tax return online See Administrative expenses, below. Free amended tax return online Conversion or dismissal of chapter 11 cases. Free amended tax return online   If a chapter 11 case is converted to a chapter 13 case, the chapter 13 estate is not a separate taxable entity and earnings from post-conversion services and income from property of the estate realized after the conversion to chapter 13 are taxed to the debtor. Free amended tax return online If the chapter 11 case is converted to a chapter 7 case, 11 U. Free amended tax return online S. Free amended tax return online C. Free amended tax return online section 1115 does not apply after conversion and: Earnings from post-conversion services will be taxed to the debtor, rather than the estate, and The property of the chapter 11 estate will become property of the chapter 7 estate. Free amended tax return online Any income on this property will be taxed to the estate even if the income is realized after the conversion to chapter 7. Free amended tax return online If a chapter 11 case is dismissed, the debtor is treated as if the bankruptcy case had never been filed and as if no bankruptcy estate had been created. Free amended tax return online Bankruptcy Estate Deductions and Credits A bankruptcy estate deducts expenses incurred in a trade, business, or activity, and uses credits in the same way the debtor would have deducted or credited them had he or she continued operations. Free amended tax return online Note. Free amended tax return online Expenses may be disallowed under other provisions of the IRC (such as the disallowance of certain capital expenditures or expenses relating to tax-exempt interest). Free amended tax return online Administrative expenses. Free amended tax return online   Allowable expenses include administrative expenses. Free amended tax return online    Administrative expenses can only be deducted by the estate, never by the debtor. Free amended tax return online   The bankruptcy estate is allowed deductions for bankruptcy administrative expenses and fees, including accounting fees, attorney fees, and court costs. Free amended tax return online These expenses are deductible on Form 1040, Schedule A as miscellaneous itemized deductions not subject to the 2% floor on miscellaneous itemized deductions, because they would not have been incurred if property had not been held by the bankruptcy estate. Free amended tax return online See IRC section 67(e). Free amended tax return online Administrative expenses of the bankruptcy estate attributable to conducting a trade or business for the production of estate rents or royalties are deductible in arriving at adjusted gross income on Form 1040, Schedules C, E, and F. Free amended tax return online Note. Free amended tax return online The bankruptcy estate uses Form 1041 as a transmittal for the tax return prepared using Form 1040 and its schedules. Free amended tax return online See Transmittal for Form 1040 under Tax Return Filing Requirements and Payment of Tax, later. Free amended tax return online Administrative expense loss. Free amended tax return online   If the administrative expenses of the bankruptcy estate are more than its gross income for a tax year, the excess amount may be carried back 3 years and forward 7 years. Free amended tax return online The amounts can only be carried to a tax year of the estate and never to a debtor's tax year. Free amended tax return online The excess amount to be carried back or forward is treated like a net operating loss (NOL) and must first be carried back to the earliest year possible. Free amended tax return online For a discussion of NOLs, see Publication 536. Free amended tax return online Attribute carryovers. Free amended tax return online   The bankruptcy estate may use its tax attributes the same way that the debtor would have used them. Free amended tax return online These items are determined as of the first day of the debtor's tax year in which the bankruptcy case begins. Free amended tax return online The bankruptcy estate assumes the following tax attributes from the debtor: NOL carryovers, Carryovers of excess charitable contributions, Recovery of tax benefit items, Credit carryovers, Capital loss carryovers, Basis, holding period, and character of assets, Method of accounting, Passive activity loss and credit carryovers, Unused at-risk deductions, and Other tax attributes provided in the regulations. Free amended tax return online   Certain tax attributes of the bankruptcy estate must be reduced by the amount of income that was previously excluded as a result of cancellation of debt during the bankruptcy proceeding. Free amended tax return online See Debt Cancellation, later. Free amended tax return online   When the bankruptcy estate is terminated (for example, when the case ends), the debtor assumes any remaining tax attributes previously taken over by the bankruptcy estate. Free amended tax return online The debtor also generally assumes any of the tax attributes, listed above, that arose during the administration of the bankruptcy estate. Free amended tax return online Note. Free amended tax return online The debtor does not assume the bankruptcy estate's administrative expense losses because they cannot be used by an individual taxpayer filing Form 1040. Free amended tax return online See Administrative expense loss, above. Free amended tax return online Passive and at-risk activities. Free amended tax return online   For bankruptcy cases beginning after November 8, 1992, passive activity carryover losses and credits and unused at-risk deductions are treated as tax attributes passing from the debtor to the bankruptcy estate, which the estate then passes back to the debtor when the bankruptcy estate terminates. Free amended tax return online Additionally, transfers to the debtor (other than by sale or exchange) of interests in passive or at-risk activities are treated as non-taxable exchanges. Free amended tax return online These transfers include the return of exempt property and abandonment of estate property to the debtor. Free amended tax return online Carrybacks from the debtor's activities. Free amended tax return online   The debtor cannot carry back any NOL or credit carryback from a tax year ending after the bankruptcy case has begun to any tax year ending before the case began. Free amended tax return online Carrybacks from the bankruptcy estate. Free amended tax return online   If the bankruptcy estate has an NOL that did not pass to the estate from the debtor under the attribute carryover rules, the estate can carry the loss back not only to its own earlier tax years but also to the debtor's tax years before the year the bankruptcy case began. Free amended tax return online The estate may also carry back excess credits, such as the general business credit, to the pre-bankruptcy tax years. Free amended tax return online Tax Reporting – Chapter 11 Cases Allocation of income and credits on information returns and required statement for returns for individual chapter 11 cases. Free amended tax return online    In chapter 11 cases, when an employer issues a Form W-2 reporting all of the debtor's wages, salary, or other compensation for a calendar year, and a portion of the earnings represent post-petition services includible in the estate's gross income, the Form W-2 amounts must be allocated between the estate and the debtor. Free amended tax return online The debtor-in-possession or trustee must allocate the income amount reported in box 1 and the income tax withheld reported in box 2 between the debtor and the estate. Free amended tax return online These allocations must reflect that the debtor's gross earnings from post-petition services and gross income from post-petition property are, generally, includible in the estate's gross income and not the debtor's gross income. Free amended tax return online The debtor and trustee may use a simple percentage method to allocate income and income tax withheld. Free amended tax return online The same method must be used to allocate the income and the withheld tax. Free amended tax return online Example. Free amended tax return online If 20% of the wages reported on Form W-2 for a calendar year were earned after the commencement of the case and are included in the estate's gross income, 20% of the withheld income tax reported on Form W-2 must also be claimed as a credit on the estate's income tax return. Free amended tax return online Likewise, 80% of wages must be reported by the debtor and 80% of the income tax withheld must be claimed as a credit on the debtor's income tax return. Free amended tax return online See IRC section 31(a). Free amended tax return online   If information returns are issued to the debtor for gross income, gross proceeds, or other reportable payments that should have been reported to the bankruptcy estate, the debtor-in-possession or trustee must allocate the improperly reported income in a reasonable manner between the debtor and the estate. Free amended tax return online In general, the allocation must ensure that any income and income tax withheld attributable to the post-petition period is reported on the estate's return, and any income and income tax withheld attributable to the pre-petition period is reported on the debtor's return. Free amended tax return online    IRS Notice 2006-83 requires the debtor to attach a statement to his or her individual income tax return (Form 1040) stating that the return is filed subject to a chapter 11 bankruptcy case. Free amended tax return online The statement must also: Show the allocations of income and income tax withheld, Describe the method used to allocate income and income tax withheld, and List the filing date of the bankruptcy case, the bankruptcy court in which the case is pending, the bankruptcy court case number, and the bankruptcy estate's EIN. Free amended tax return online Note. Free amended tax return online The debtor-in-possession or trustee must attach a similar statement to the bankruptcy estate's income tax return (Form 1041). Free amended tax return online   The model Notice 2006-83 Statement, shown above, may be used by debtors, debtors-in-possession, and trustees to satisfy the reporting requirement. Free amended tax return online Self-employment taxes in individual chapter 11 cases. Free amended tax return online   IRC section 1401 imposes a tax upon the self-employment income, that is, the net earnings from self-employment of an individual. Free amended tax return online Net earnings from self-employment are equal to the gross income derived by an individual from any trade or business carried on by such individual, less deductions attributable to the business. Free amended tax return online   Neither section 1115 of the Bankruptcy Code nor IRC section 1398 addresses the application of self-employment tax to the post-petition earnings of the individual debtor. Free amended tax return online Therefore, if the debtor continues to derive gross income from the performance of services as a self-employed individual after the commencement of the bankruptcy case, the debtor must continue to report the debtor's self-employment income on Schedule SE (Form 1040) of the debtor's income tax return. Free amended tax return online This schedule includes self-employment income earned post-petition and the attributable deductions. Free amended tax return online The debtor must pay any self-employment tax imposed by IRC section 1401. Free amended tax return online Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Free amended tax return online   In chapter 11 cases, post-petition wages earned by a debtor are generally treated as gross income of the estate. Free amended tax return online However, section 1115 of the Bankruptcy Code (11 U. Free amended tax return online S. Free amended tax return online C. Free amended tax return online section 1115) does not affect the determination of what are deemed wages for Federal Insurance Contributions Act (FICA) tax, Federal Unemployment Tax Act (FUTA) tax, or Federal Income Tax Withholding purposes. Free amended tax return online See Notice 2006-83. Free amended tax return online   The reporting and withholding obligations of a debtor's employer also do not change. Free amended tax return online An employer should continue to report the wages and tax withholding on a Form W-2 issued under the debtor's name and social security number. Free amended tax return online Notice to persons required to file information returns (other than Form W-2, Wage and Tax Statement) in individual chapter 11 cases. Free amended tax return online   Within a reasonable time after the commencement of a chapter 11 bankruptcy case, the trustee or debtor-in-possession should provide notification of the bankruptcy estate's EIN to all persons (or entities) that are required to file information returns for the bankruptcy estate's gross income, gross proceeds, or other types of reportable payments. Free amended tax return online See IRC section 6109(a)(2). Free amended tax return online As these payments are the property of the estate under section 1115 of the Bankruptcy Code, the payors should report the gross income, gross proceeds, or other reportable payments on the appropriate information return using the estate's name and EIN as required under the IRC and regulations (see IRC sections 6041 through 6049). Free amended tax return online   The trustee or debtor-in-possession should not, however, provide the EIN to a person (or entity) filing Form W-2 reporting the debtor's wages or other compensation, as section 1115 of the Bankruptcy Code does not affect the determination of what constitutes wages for purposes of federal income tax withholding or FICA. Free amended tax return online See Notice 2006-83. Free amended tax return online An employer should continue to report all wage income and tax withholding, both pre-petition and post-petition, on a Form W-2 to the debtor under the debtor's social security number. Free amended tax return online   The debtor in a chapter 11 case is not required to file a new Form W-4 with an employer solely because the debtor filed a chapter 11 case and the post-petition wages are includible in the estate's income and not the debtor's income. Free amended tax return online However, a new Form W-4 may be necessary if the debtor is no longer entitled to claim the same number of allowances previously claimed because certain deductions or credits now belong to the estate. Free amended tax return online See Employment Tax Regulations section 31. Free amended tax return online 3402(f)(2)-1. Free amended tax return online Additionally, the debtor may wish to file a new Form W-4 to increase the income tax withheld from post-petition wages allocated to the estate to avoid having to make estimated tax payments for the estate. Free amended tax return online See IRC section 6654(a). Free amended tax return online Notice required in converted and dismissed cases. Free amended tax return online   When a chapter 11 bankruptcy case is closed, dismissed, or converted to a chapter 12 or 13 case, the bankruptcy estate ends as a separate taxable entity. Free amended tax return online The debtor should, within a reasonable time, send notice of such event to the persons (or entities) previously notified of the bankruptcy case. Free amended tax return online This helps to ensure that gross income, proceeds, and other reportable payments realized after the event are reported to the debtor under the correct TIN rather than to the estate. Free amended tax return online   When a chapter 11 case is converted to a chapter 7 case, the bankruptcy estate will continue to exist as a separate taxable entity. Free amended tax return online Gross income (other than post-conversion income from the debtor's services), gross proceeds, or other reportable payments should continue to be reported to the estate if they are property of the chapter 7 estate. Free amended tax return online However, income from services performed by the debtor after conversion of the case to chapter 7 is not property of the chapter 7 estate. Free amended tax return online After the conversion, the debtor should notify payors required to report the debtor's nonemployee compensation that compensation earned after the conversion should be reported using the debtor's name and TIN, not the estate's name and EIN. Free amended tax return online Employment taxes. Free amended tax return online   The trustee or debtor-in-possession must withhold income and social security taxes and file employment tax returns for any wages paid by the trustee or debtor, including wage claims paid as administrative expenses. Free amended tax return online See Publication 15, Circular E, Employer's Tax Guide, for details on employer tax responsibilities. Free amended tax return online   The trustee also has the duty to prepare and file Forms W-2 for wage claims paid by the trustee, regardless of whether the claims accrued before or during bankruptcy. Free amended tax return online For a further discussion of employment taxes, see Employment Taxes, later. Free amended tax return online Notice 2006-83 Statement Pending Bankruptcy Case The taxpayer, , filed a bankruptcy petition under chapter 11 of the Bankruptcy Code in the bankruptcy court for the District of . Free amended tax return online The bankruptcy court case number is . Free amended tax return online Gross income, and withheld federal income tax, reported on Form W-2, Forms 1099, Schedule K-1, and other information returns received under the taxpayer's name and social security number (or other taxpayer identification number) are allocated between the taxpayer's TIN and the bankruptcy estate's EIN as follows, using [describe allocation method]:. Free amended tax return online   Year Taxpayer   Estate 1. Free amended tax return online Form W-2, Payor: $   $     Withheld income tax shown on Form W-2 $   $   2. Free amended tax return online Form 1099-INT Payor: $   $     Withheld income tax (if any) shown on Form 1099-INT $   $   3. Free amended tax return online Form 1099-DIV Payor: $   $     Withheld income tax (if any) shown on Form 1099-DIV $   $   4. Free amended tax return online Form 1099-MISC Payor: $   $     Withheld income tax (if any) shown on Form 1099-MISC $   $   Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Filing Requirements Filing threshold. Free amended tax return online   If the bankruptcy estate has gross income that meets or exceeds the minimum amount required for filing, the trustee or debtor-in-possession must file an income tax return on Form 1041. Free amended tax return online This amount is equal to the sum of the personal exemption amount plus the basic standard deduction for a married individual filing separately. Free amended tax return online   For 2012, the threshold filing amount for a bankruptcy estate is $9,750 (the sum of the $3,800 personal exemption plus the $5,950 standard deduction for married individuals filing separately). Free amended tax return online   These amounts are generally adjusted annually. Free amended tax return online See the present year Form 1041 Instructions at www. Free amended tax return online irs. Free amended tax return online gov/form1041 for the current dollar amounts. Free amended tax return online Accounting period. Free amended tax return online   A bankruptcy estate may have a fiscal year. Free amended tax return online However, this period cannot be longer than 12 months. Free amended tax return online Change of accounting period. Free amended tax return online   The bankruptcy estate may change its accounting period (tax year) once without IRS approval. Free amended tax return online This rule allows the bankruptcy trustee to close the estate's tax year early, before the expected termination of the bankruptcy estate. Free amended tax return online The trustee can then file a return for the first short tax year to get a quick determination of the estate's tax liability. Free amended tax return online Employer identification number. Free amended tax return online   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Free amended tax return online The trustee or debtor-in-possession uses this EIN on all tax returns filed for the bankruptcy estate with the IRS, including estimated tax returns. Free amended tax return online    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Free amended tax return online   Obtain an EIN for a bankruptcy estate by applying: Online by clicking on the EIN link at www. Free amended tax return online irs. Free amended tax return online gov/businesses/small. Free amended tax return online The EIN is issued immediately once the application information is validated. Free amended tax return online By telephone at 1-800-829-4933 from 7:00 a. Free amended tax return online m. Free amended tax return online to 7:00 p. Free amended tax return online m. Free amended tax return online in the trustee's or debtor-in-possession's local time zone. Free amended tax return online Assistance provided to callers from Alaska and Hawaii will be based on the hours of operation in the Pacific time zone, or By mailing or faxing Form SS-4, Application for Employer Identification Number. Free amended tax return online   If the trustee or debtor-in-possession has not received the bankruptcy estate's EIN by the time the return is due, write “Applied for” and the date you applied in the space for the EIN. Free amended tax return online For more details, see Pub. Free amended tax return online 583, Starting a Business and Keeping Records. Free amended tax return online   Trustees representing ten or more bankruptcy estates (other than estates that will be filing employment or excise tax returns) may request a series or block of EINs. Free amended tax return online Figuring tax due. Free amended tax return online   The bankruptcy estate figures its taxable income the same way an individual figures taxable income. Free amended tax return online However, the estate uses the tax rates for a married individual filing separately to calculate the tax on its taxable income. Free amended tax return online The estate is entitled to one personal exemption and may either itemize deductions or take the basic standard deduction for a married individual filing a separate return. Free amended tax return online The estate cannot take the higher standard deduction allowed for married persons filing separately who are 65 or older or blind. Free amended tax return online Tax rate schedule. Free amended tax return online The tax on income for bankruptcy estates is calculated using the tax rate schedule for Married Individuals Filing Separately not the Estates and Trusts tax rate schedule. Free amended tax return online When to file. Free amended tax return online   Calendar year bankruptcy estates must file Form 1041 by April 15th. Free amended tax return online Fiscal year bankruptcy estates must file on or before the 15th day of the 4th month following the close of its tax year. Free amended tax return online For example, an estate that has a tax year that ends on June 30th must file Form 1041 by October 15th of the tax year. Free amended tax return online If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. Free amended tax return online Note. Free amended tax return online The bankruptcy estate is allowed an automatic 6-month extension of time to file the bankruptcy estate tax return upon filing the required application, Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. Free amended tax return online Transmittal for Form 1040. Free amended tax return online   Form 1041 is used as a transmittal for Form 1040. Free amended tax return online If a return is required, the trustee or debtor-in-possession must complete the identification area at the top of Form 1041 and indicate the chapter under which the bankruptcy estate filed, either chapter 7 or chapter 11. Free amended tax return online   Prepare the bankruptcy estate's return by completing Form 1040. Free amended tax return online In the top margin of Form 1040, write “Attachment to Form 1041 —DO NOT DETACH. Free amended tax return online ” Then, attach Form 1040 to the Form 1041 transmittal. Free amended tax return online Enter the tax and payment amounts on lines 23 through 29 of Form 1041, then sign and date the return. Free amended tax return online An example of a bankruptcy estate's tax return is prepared below. Free amended tax return online Note. Free amended tax return online The filing of the bankruptcy estate's tax return does not relieve a debtor from the requirement to file his or her individual tax return on Form 1040. Free amended tax return online Payment of Tax Due Payment methods. Free amended tax return online   Payment of tax due may be made by check or money order or by credit or debit card. Free amended tax return online For information on how to make payments electronically by credit or debit card, go to irs. Free amended tax return online gov/e-pay. Free amended tax return online      Payments may also be made electronically using the Electronic Federal Tax Payment System (EFTPS), a free tax payment system that allows you to make payments online or by phone. Free amended tax return online To enroll in EFTPS, go to eftps. Free amended tax return online gov or call 1-800-555-4477. Free amended tax return online For more information see Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Free amended tax return online Payment voucher – Form 1041-V. Free amended tax return online   Form 1041-V accompanies payments made by check or money order for Form 1041. Free amended tax return online The voucher includes information about the bankruptcy estate, including the name of the bankruptcy estate, trustee, EIN, and amount due. Free amended tax return online Using Form 1041-V assists the IRS in processing the payment more accurately and efficiently. Free amended tax return online We recommend the use of Form 1041-V; however, there is no penalty if the voucher is not used. Free amended tax return online Estimated tax – Form 1041-ES. Free amended tax return online   In most cases, the trustee or debtor-in-possession must pay any required estimated tax due for the bankruptcy estate. Free amended tax return online See the Form 1041-ES Instructions for information on the minimum threshold amount required for filing Form 1041-ES, paying the estimated tax, and exceptions to filing. Free amended tax return online Employment Taxes The trustee or debtor-in-possession must withhold income and social security taxes and file employment tax returns for any wages paid by the trustee or debtor, including wage claims paid as administrative expenses. Free amended tax return online Until these employment taxes are deposited as required by the IRC, they should be set aside in a separate bank account to ensure that funds are available to satisfy the liability. Free amended tax return online If the employment taxes are not paid as required, the trustee may be held personally liable for payment of the taxes. Free amended tax return online   See Publication 15, (Circular E), Employer's Tax Guide, for details on employer tax responsibilities. Free amended tax return online Also see IRS Notice 931, Deposit Requirements for Employment Taxes, for details on the deposit rules, including the requirement that federal employment tax deposits be made by electronic funds transfer. Free amended tax return online The trustee also has a duty to prepare and file Forms W-2, Wage and Tax Statement, for wage claims paid by the trustee, regardless of whether the claims accrued before or during bankruptcy. Free amended tax return online If the debtor fails to prepare and file Forms W-2 for wages paid before bankruptcy, the trustee should instruct the employees to file a Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free amended tax return online , with their individual income tax returns. Free amended tax return online Tax Return Example – Form 1041 This publication is not revised annually. Free amended tax return online Future changes to the forms and their instructions may not be reflected in this example. Free amended tax return online Note. Free amended tax return online The following return was prepared for tax year 2011. Free amended tax return online In 2011, the threshold filing amount for a bankruptcy estate was $9,500 (the sum of the $3,700 personal exemption plus the $5,800 standard deduction for married individuals filing separately). Free amended tax return online Facts and circumstances. Free amended tax return online   On December 15, 2010, Thomas Smith filed a bankruptcy petition under chapter 7. Free amended tax return online Joan Black was appointed trustee to administer the bankruptcy estate and to distribute the assets. Free amended tax return online   The estate received the following assets from Mr. Free amended tax return online Smith: A $100,000 certificate of deposit, Commercial rental real estate with a fair market value (FMV) of $280,000, and His personal residence with an FMV of $200,000. Free amended tax return online   Also, the estate received a $251,500 capital loss carryover. Free amended tax return online   Mr. Free amended tax return online Smith's bankruptcy case was closed on December 31, 2011. Free amended tax return online During 2011, Mr. Free amended tax return online Smith was relieved of $70,000 of debt by the bankruptcy court. Free amended tax return online The estate chose a calendar year as its tax year. Free amended tax return online Joan, the trustee, reviews the estate's transactions and reports the taxable events on the estate's final return. Free amended tax return online Schedule B (Form 1040). Free amended tax return online    The certificate of deposit earned $5,500 of interest during 2011. Free amended tax return online Joan reports this interest on Schedule B. Free amended tax return online She completes this schedule and enters the result on Form 1040. Free amended tax return online Form 4562. Free amended tax return online   Joan enters the depreciation allowed on Form 4562. Free amended tax return online She completes the form and enters the result on Schedule E. Free amended tax return online Schedule E (Form 1040). Free amended tax return online   The commercial real estate was rented through the date of sale. Free amended tax return online Joan reports the income and expenses on Schedule E. Free amended tax return online She enters the net income on Form 1040. Free amended tax return online Form 4797. Free amended tax return online   The commercial real estate was sold on July 1, 2011, for $280,000. Free amended tax return online The property was purchased in 2001 at a cost of $250,000. Free amended tax return online The total depreciation allowable as of the date of sale was $120,000. Free amended tax return online Additionally, $25,000 of selling expenses were incurred. Free amended tax return online Joan reports the gain or loss from the sale on Form 4797. Free amended tax return online She completes the form and enters the gain on Schedule D (Form 1040). Free amended tax return online   Mr. Free amended tax return online Smith's former residence was sold on September 30, 2011. Free amended tax return online The sale price was $200,000, the selling expenses were $20,000, and his adjusted basis was $130,000. Free amended tax return online This sale is excluded from gross income under IRC section 121. Free amended tax return online Note. Free amended tax return online Gains from the sale of personal residences are excluded from gross income up to $250,000 under IRC section 121 ($500,000 for married couples filing a joint return). Free amended tax return online Bankruptcy estates succeed to this exclusion at the commencement of the case. Free amended tax return online See Regulation section 1. Free amended tax return online 1398-3. Free amended tax return online Schedule D (Form 1040). Free amended tax return online   Joan completes Schedule D, taking into account the $250,000 capital loss carryover from 2010 ($251,500 transferred to the estate minus $1,500 used on the estate's 2010 return). Free amended tax return online She enters the results on Form 1040. Free amended tax return online Form 1040, page 1. Free amended tax return online   Joan completes page 1 of the Form 1040 and enters the adjusted gross income on the first line of Form 1040, page 2. Free amended tax return online Schedule A (Form 1040). Free amended tax return online   During 2011, the estate paid mortgage interest and real property tax on Mr. Free amended tax return online Smith's former residence. Free amended tax return online It also paid income tax to the state. Free amended tax return online Joan enters the mortgage interest, real estate tax, and income tax on Schedule A. Free amended tax return online Also, she reports the bankruptcy estate's administrative expenses as a miscellaneous deduction not subject to the 2% floor on miscellaneous itemized deductions. Free amended tax return online She completes the Schedule A and enters the result on page 2 of Form 1040. Free amended tax return online Form 1040, page 2. Free amended tax return online   Joan determines the estate's taxable income and figures its tax using the tax rate schedule for married filing separately. Free amended tax return online She then enters the estate's estimated tax payments and figures the amount the estate still owes. Free amended tax return online Form 982. Free amended tax return online   Joan completes the Schedule D Tax Worksheet to figure the capital loss carryover. Free amended tax return online Because $70,000 of debt was canceled, Joan must reduce the tax attributes of the estate by the amount of the canceled debt. Free amended tax return online See Debt Cancellation, later. Free amended tax return online After the bankruptcy case ends, Mr. Free amended tax return online Smith will assume the estate's tax attributes. Free amended tax return online Mr. Free amended tax return online Smith will assume a capital loss carryover of $53,500 ($123,500 carryover minus the $70,000 attribute reduction) for use in preparation of his individual tax return (Form 1040). Free amended tax return online Note. Free amended tax return online If the bankruptcy estate had continued, the capital loss carryover would be available to the bankruptcy estate for the 2012 tax year. Free amended tax return online Form 1041. Free amended tax return online   Joan enters the total tax, estimated tax payments, and tax due from Form 1040 on Form 1041. Free amended tax return online She completes the identification area at the top of Form 1041, then signs and dates the return as the trustee on behalf of the bankruptcy estate. Free amended tax return online This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Form 1040 - page 1 This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Form 1040 - page 2 This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Schedule A This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Schedule B This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Schedule D This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Schedule E This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Form 4797 - page 1 This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Form 2119 This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Form 4797 - page 2 This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Form 4562 This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Capital Loss Carryover Worksheet This image is too large to be displayed in the current screen. Free amended tax return online Please click the link to view the image. Free amended tax return online Sample Form 982 Capital Loss Carryover Worksheet—Lines 6 and 14 Use this worksheet to figure your capital loss carryovers from 2010 to 2011 if your 2010 Schedule D, line 21, is a loss and (a) that loss is a smaller loss than the loss on your 2010 Schedule D, line 16, or (b) the amount on your 2010 Form 1040, line 41 (or your 2010 Form 1040NR, line 38, if applicable) is less than zero. Free amended tax return online Otherwise, you do not have any carryovers. Free amended tax return online 1. Free amended tax return online Enter the amount from your 2010 Form 1040, line 41, or Form 1040NR, line 38. Free amended tax return online If a loss, enclose the amount in parentheses 1. Free amended tax return online 19,880   2. Free amended tax return online Enter the loss from your 2010 Schedule D, line 21, as a positive amount 2. Free amended tax return online 1,500   3. Free amended tax return online Combine lines 1 and 2. Free amended tax return online If zero or less, enter -0- 3. Free amended tax return online 21,380   4. Free amended tax return online Enter the smaller of line 2 or line 3 4. Free amended tax return online 1,500     If line 7 of your 2010 Schedule D is a loss, go to line 5; otherwise, enter -0- on line 5 and go to line 9. Free amended tax return online       5. Free amended tax return online Enter the loss from your 2010 Schedule D, line 7, as a positive amount 5. Free amended tax return online 0   6. Free amended tax return online Enter any gain from your 2010 Schedule D, line 15. Free amended tax return online If a loss, enter -0- 6. Free amended tax return online         7. Free amended tax return online Add lines 4 and 6 7. Free amended tax return online 1,500   8. Free amended tax return online Short-term capital loss carryover for 2011. Free amended tax return online Subtract line 7 from line 5. Free amended tax return online If zero or less, enter -0-. Free amended tax return online If more than zero, also enter this amount on Schedule D, line 6 8. Free amended tax return online 0     If line 15 of your 2010 Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13. Free amended tax return online       9. Free amended tax return online Enter the loss from your 2010 Schedule D, line 15, as a positive amount 9. Free amended tax return online 251,500   10. Free amended tax return online Enter any gain from your 2010 Schedule D, line 7. Free amended tax return online If a loss, enter -0- 10. Free amended tax return online 0       11. Free amended tax return online Subtract line 5 from line 4. Free amended tax return online If zero or less, enter -0- 11. Free amended tax return online 1,500       12. Free amended tax return online Add lines 10 and 11 12. Free amended tax return online 1,500   13. Free amended tax return online Long-term capital loss carryover for 2011. Free amended tax return online Subtract line 12 from line 9. Free amended tax return online If zero or less, enter -0-. Free amended tax return online If more than zero, also enter this amount on Schedule D, line 14 13. Free amended tax return online 250,000                       Partnerships and Corporations Filing Requirements A separate taxable estate is not created when a partnership or corporation files a bankruptcy petition and their tax return filing requirements do not change. Free amended tax return online The debtor-in-possession, court appointed trustee, assignee, or receiver must file the entity's income tax returns on Form 1065, Form 1120 or, Form 1120S. Free amended tax return online In cases where a trustee or receiver is not appointed, the debtor-in-possession continues business operations and remains in possession of the business' property during the bankruptcy proceeding. Free amended tax return online The debtor-in-possession, rather than the general partner of a partnership or corporate officer of a corporation, assumes the fiduciary responsibility to file the business' tax returns. Free amended tax return online Partnerships The filing requirements for a partnership in a bankruptcy proceeding do not change. Free amended tax return online However, the responsibility to file the required returns becomes that of the court appointed trustee, receiver, or debtor-in-possession. Free amended tax return online A partnership's debt that is canceled as a result of the bankruptcy proceeding is not included in the partnership's income. Free amended tax return online However, It may or may not be included in the individual partners' income. Free amended tax return online See Partnerships, below under Debt Cancellation. Free amended tax return online Corporations The filing requirements for a corporation in a bankruptcy proceeding also do not change. Free amended tax return online A bankruptcy trustee, receiver, or debtor-in-possession, having possession of or holding title to substantially all of the property or business operations of the debtor corporation, must file the debtor's corporate income tax return for the tax year. Free amended tax return online The following discussion only highlights bankruptcy tax rules applying to corporations. Free amended tax return online The complex details of corporate bankruptcy reorganizations are beyond the scope of this publication. Free amended tax return online Therefore, you may wish to seek the help of a professional tax advisor. Free amended tax return online See Corporations under Debt Cancellation for information about a corporation's debt canceled in a bankruptcy proceeding. Free amended tax return online Tax-Free Reorganizations The tax-free reorganization provisions of the Internal Revenue Code allow a corporation to transfer all or part of its assets to another corporation in a bankruptcy under title 11 of the United States Code or in a similar case. Free amended tax return online However, under the reorganization plan, the stock or securities of the corporation to which the assets are transferred must be distributed in a transaction that qualifies under IRC section 354, 355, or 356. Free amended tax return online A “similar case” includes a receivership, foreclosure, or other similar proceeding in a federal or state court. Free amended tax return online In these cases, any party to the reorganization must be under the jurisdiction of the court and the transfer of assets under the plan of reorganization must be approved by the court. Free amended tax return online In a receivership, foreclosure, or similar proceeding before a federal or state agency involving certain financial institutions, the agency is treated as a court. Free amended tax return online Generally, IRC section 354 provides that no gain or loss is recognized if a corporation's stock is exchanged solely for stock or securities in a corporation that is a party to the reorganization under a qualifying reorganization plan. Free amended tax return online In this case, shareholders in the bankrupt corporation would recognize no gain or loss if they exchange their stock solely for stock or securities of the corporation acquiring the bankrupt corporation's assets. Free amended tax return online IRC section 355 generally provides that no gain or loss is recognized by a shareholder if a corporation distributes solely stock or securities of another corporation that the distributing corporation controls immediately before the distribution. Free amended tax return online IRC section 356 allows tax-free exchanges in situations that would qualify under IRC section 354 or 355, except that other property or money, in addition to the permitted stock or securities, is received by the shareholder. Free amended tax return online In this situation, gain is recognized by the shareholder, but only to the extent of the money and the FMV of the other property received. Free amended tax return online No loss is recognized in this situation. Free amended tax return online Exemption from tax return filing A trustee, receiver, or assignee of a corporation in bankruptcy, receivership, or in the process of dissolving, may apply to the IRS for relief from filing federal income tax returns for the corporation. Free amended tax return online To qualify, the corporation must have ceased business operations and have no assets nor income for the tax year. Free amended tax return online The exemption request must be submitted to the local IRS Insolvency Office handling the case. Free amended tax return online The request to the IRS must include the name, address, and EIN of the corporation and a statement of the facts (with any supporting documents) showing why the debtor needs relief from the filing requirements. Free amended tax return online The request must also include the following statement: “I hereby request relief from filing federal income tax returns for tax years ending _____ for the above-named corporation and declare under penalties of perjury that to the best of my knowledge and belief the information contained herein is correct. Free amended tax return online ” The statement must be signed by the trustee, receiver or assignee. Free amended tax return online The statement must also include notice of appointment to act on behalf of the corporation (this is not required for bankruptcy trustees or debtors-in-possession). Free amended tax return online The IRS will act on your request within 90 days. Free amended tax return online Disclosure of return information to trustee. Free amended tax return online   Upon written request, current and earlier returns of the debtor are open to inspection by or disclosure to the trustee or receiver. Free amended tax return online However, in bankruptcy cases other than those of individuals filing under chapter 7 or 11, such as a corporate bankruptcy, the IRS must find that the trustee has a material interest that will be affected by information on the return. Free amended tax return online Material interest is generally defined as a financial or monetary interest. Free amended tax return online Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Free amended tax return online Receiverships Court-established receiverships sometimes arise in connection with bankruptcies. Free amended tax return online Certain court-established receiverships should be treated as qualified settlement funds ("QSFs") for purposes of IRC section 468B and the underlying Treasury Regulations. Free amended tax return online QSFs are required to file an annual income tax return, Form 1120-SF, U. Free amended tax return online S. Free amended tax return online Income Tax Return for Settlement Funds. Free amended tax return online More information about QSFs may be found in Treasury Regulation sections 1. Free amended tax return online 468B-1 through -5. Free amended tax return online Determination of Tax The determination of the proper amount of tax due for a tax year begins with the bankruptcy estate's filing of Form 1041, and the individual debtor's filing of Form 1040, or for bankrupt entities filing Forms 1065, 1120, or 1120S. Free amended tax return online After a return is filed, the IRS will either accept the return as filed or select the return for examination. Free amended tax return online Under examination the IRS may redetermine the tax liability shown on the return. Free amended tax return online If the bankruptcy estate or debtor disagrees with the redetermined tax due, the tax as redetermined by the IRS may be contested in the bankruptcy court, or Tax Court, as applicable. Free amended tax return online See Court Jurisdiction over Tax Matters, later. Free amended tax return online Prompt Determination Requests Pursuant to Rev. Free amended tax return online Proc. Free amended tax return online 2006-24, 2006-22 I. Free amended tax return online R. Free amended tax return online B. Free amended tax return online 943, www. Free amended tax return online irs. Free amended tax return online gov/irb/2006-22_IRB/ar12, as modified by Announcement 2011-77, www. Free amended tax return online irs. Free amended tax return online gov/irb/2011-51_IRB/ar13, the bankruptcy trustee may request a determination of any unpaid tax liability incurred by the bankruptcy estate during the administration of the case, by filing a tax return and a request for such determination with the IRS. Free amended tax return online Unless the return is fraudulent or contains a material misrepresentation, the estate, trustee, debtor, and any successor to the debtor are discharged from liability upon payment of the tax: As determined by the IRS, As determined by the bankruptcy court, after completion of the IRS examination, or As shown on the return, if the IRS does not: Notify the trustee within 60 days after the request for determination that the return has been selected for examination, or Complete the examination and notify the trustee of any tax due within 180 days after the request (or any additional time permitted by the bankruptcy court). Free amended tax return online Making the request for determination. Free amended tax return online   As detailed in Rev. Free amended tax return online Proc. Free amended tax return online 2006-24, as modified by Announcement 2011-77, to request a prompt determination of any unpaid tax liability of the estate, the trustee must file a signed written request, in duplicate, with the Internal Revenue Service, Centralized Insolvency Operation, P. Free amended tax return online O. Free amended tax return online Box 7346, Philadelphia, PA 19101–7346 (marked “Request for Prompt Determination”). Free amended tax return online   The request must be submitted in duplicate and must be executed under penalties of perjury. Free amended tax return online In addition, the trustee must submit along with the request an exact copy of the return(s) filed by the trustee with the IRS for each completed tax period. Free amended tax return online The request must contain the following information: A statement indicating that it is a Request for Prompt Determination of Tax Liability, specifying the type of return and tax period for each return being filed. Free amended tax return online The name and location of the office where the return was filed. Free amended tax return online The name of the debtor. Free amended tax return online Debtor's social security number, TIN, or EIN. Free amended tax return online Type of bankruptcy estate. Free amended tax return online Bankruptcy case number. Free amended tax return online Court where the bankruptcy case is pending. Free amended tax return online   The copy of the return(s) submitted with the request must be an exact copy of a valid return. Free amended tax return online A request for prompt determination will be considered incomplete and returned to the trustee if it is filed with a copy of a document that does not qualify as a valid return. Free amended tax return online    To qualify as valid, a return must meet certain criteria, including a signature under penalties of perjury. Free amended tax return online A document filed by the trustee with the jurat stricken, deleted, or modified will not qualify as a valid return. Free amended tax return online Examination of return. Free amended tax return online   The IRS will notify the trustee within 60 days from receipt of the request whether the return filed by the trustee has been selected for examination or has been accepted as filed. Free amended tax return online If the return is selected for examination, it will be examined as soon as possible. Free amended tax return online The IRS will notify the trustee of any tax due within 180 days from receipt of the application or within any additional time permitted by the bankruptcy court. Free amended tax return online   If a prompt determination request is incomplete, all the documents received by the IRS will be returned to the trustee by the assigned Field Insolvency Office with an explanation identifying the missing item(s) and instructions to re-file the request once corrected. Free amended tax return online   Once corrected, the request must be filed with the IRS at the Field Insolvency Office address specified in the correspondence accompanying the returned incomplete request. Free amended tax return online   In the case of an incomplete request submitted with a copy of an invalid return document, the trustee must file a valid original return with the appropriate IRS office and submit a copy of that return with the corrected request when the request is re-filed. Free amended tax return online Note. Free amended tax return online An incomplete request includes those submitted with a copy of a return form, the original of which does not qualify as a valid return. Free amended tax return online   The 60-day period to notify the trustee whether the return is accepted as filed or has been selected for examination does not begin to run until a complete request package is recei