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

How To File 2009 Taxes In 2013

Amended Tax Return Instructions1040 Form For 2010Tax Planning Us 2005 TaxesFree State Tax HelpFile 1040x Online FreeH R Block TaxFiling 1040xForm 10402010 Form 1040ez InstructionsH R Block 2011 ReturnH&r Block Online Tax FilingTax Form 1040aHow To File My 2012 Tax ReturnState Income Tax Questions2009 Federal Income Tax FormsState Tax Filing Form1040ez Instruction BookletState Tax Return For FreeIrs 2012 Tax Forms 1040 InstructionsInstructions For Filing An Amended Tax Return2011 TaxHow Do You Amend Your TaxesFree E-file For 2011FreestatetaxreturnHow To Amend A Tax Return1040 Short FormTurbotax 1040ezHow To Amend Tax Return TurbotaxTelefileIncome Tax For Seniors2012 1040 Tax FormsIrs 1040ez Form OnlineBack Tax HomeWww Irs Gov Form1040xMyfreetaxes2010 Federal Tax ReturnCan I Amend My Taxes OnlineTax Breaks For UnemployedH&r Block 2011 Tax SoftwareTurbotax 1040x

How To File 2009 Taxes In 2013

How to file 2009 taxes in 2013 4. How to file 2009 taxes in 2013   How Income of Aliens Is Taxed Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident Aliens Nonresident AliensTrade or Business in the United States Effectively Connected Income The 30% Tax Income From Real Property Transportation Tax Interrupted Period of Residence Expatriation TaxExpatriation Before June 4, 2004 Expatriation After June 3, 2004, and Before June 17, 2008 Expatriation After June 16, 2008 Introduction Resident and nonresident aliens are taxed in different ways. How to file 2009 taxes in 2013 Resident aliens are generally taxed in the same way as U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizens. How to file 2009 taxes in 2013 Nonresident aliens are taxed based on the source of their income and whether or not their income is effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 The following discussions will help you determine if income you receive during the tax year is effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business and how it is taxed. How to file 2009 taxes in 2013 Topics - This chapter discusses: Income that is effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 Income that is not effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 Interrupted period of residence. How to file 2009 taxes in 2013 Expatriation tax. How to file 2009 taxes in 2013 Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 1212 List of Original Issue Discount Instruments Form (and Instructions) 6251 Alternative Minimum Tax—Individuals Schedule D (Form 1040) Capital Gains and Losses See chapter 12 for information about getting these publications and forms. How to file 2009 taxes in 2013 Resident Aliens Resident aliens are generally taxed in the same way as U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizens. How to file 2009 taxes in 2013 This means that their worldwide income is subject to U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 tax and must be reported on their U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 tax return. How to file 2009 taxes in 2013 Income of resident aliens is subject to the graduated tax rates that apply to U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizens. How to file 2009 taxes in 2013 Resident aliens use the Tax Table or Tax Computation Worksheets located in the Form 1040 instructions, which apply to U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizens. How to file 2009 taxes in 2013 Nonresident Aliens A nonresident alien's income that is subject to U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 income tax must be divided into two categories: Income that is effectively connected with a trade or business in the United States, and Income that is not effectively connected with a trade or business in the United States (discussed under The 30% Tax, later). How to file 2009 taxes in 2013 The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. How to file 2009 taxes in 2013 These are the same rates that apply to U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizens and residents. How to file 2009 taxes in 2013 Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. How to file 2009 taxes in 2013 If you were formerly a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizen or resident alien, these rules may not apply. How to file 2009 taxes in 2013 See Expatriation Tax, later, in this chapter. How to file 2009 taxes in 2013 Trade or Business in the United States Generally, you must be engaged in a trade or business during the tax year to be able to treat income received in that year as effectively connected with that trade or business. How to file 2009 taxes in 2013 Whether you are engaged in a trade or business in the United States depends on the nature of your activities. How to file 2009 taxes in 2013 The discussions that follow will help you determine whether you are engaged in a trade or business in the United States. How to file 2009 taxes in 2013 Personal Services If you perform personal services in the United States at any time during the tax year, you usually are considered engaged in a trade or business in the United States. How to file 2009 taxes in 2013 Certain compensation paid to a nonresident alien by a foreign employer is not included in gross income. How to file 2009 taxes in 2013 For more information, see Services Performed for Foreign Employer in chapter 3. How to file 2009 taxes in 2013 Other Trade or Business Activities Other examples of being engaged in a trade or business in the United States follow. How to file 2009 taxes in 2013 Students and trainees. How to file 2009 taxes in 2013   You are considered engaged in a trade or business in the United States if you are temporarily present in the United States as a nonimmigrant under an “F,” “J,” “M,” or “Q” visa. How to file 2009 taxes in 2013 A nonresident alien temporarily present in the United States under a “J” visa includes a nonresident alien individual admitted to the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. How to file 2009 taxes in 2013 The taxable part of any scholarship or fellowship grant that is U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source income is treated as effectively connected with a trade or business in the United States. How to file 2009 taxes in 2013 Business operations. How to file 2009 taxes in 2013   If you own and operate a business in the United States selling services, products, or merchandise, you are, with certain exceptions, engaged in a trade or business in the United States. How to file 2009 taxes in 2013 Partnerships. How to file 2009 taxes in 2013   If you are a member of a partnership that at any time during the tax year is engaged in a trade or business in the United States, you are considered to be engaged in a trade or business in the United States. How to file 2009 taxes in 2013 Beneficiary of an estate or trust. How to file 2009 taxes in 2013   If you are the beneficiary of an estate or trust that is engaged in a trade or business in the United States, you are treated as being engaged in the same trade or business. How to file 2009 taxes in 2013 Trading in stocks, securities, and commodities. How to file 2009 taxes in 2013   If your only U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 resident broker or other agent, you are not engaged in a trade or business in the United States. How to file 2009 taxes in 2013   For transactions in stocks or securities, this applies to any nonresident alien, including a dealer or broker in stocks and securities. How to file 2009 taxes in 2013   For transactions in commodities, this applies to commodities that are usually traded on an organized commodity exchange and to transactions that are usually carried out at such an exchange. How to file 2009 taxes in 2013   This discussion does not apply if you have a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 office or other fixed place of business at any time during the tax year through which, or by the direction of which, you carry out your transactions in stocks, securities, or commodities. How to file 2009 taxes in 2013 Trading for a nonresident alien's own account. How to file 2009 taxes in 2013   You are not engaged in a trade or business in the United States if trading for your own account in stocks, securities, or commodities is your only U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 business activity. How to file 2009 taxes in 2013 This applies even if the trading takes place while you are present in the United States or is done by your employee or your broker or other agent. How to file 2009 taxes in 2013   This does not apply to trading for your own account if you are a dealer in stocks, securities, or commodities. How to file 2009 taxes in 2013 This does not necessarily mean, however, that as a dealer you are considered to be engaged in a trade or business in the United States. How to file 2009 taxes in 2013 Determine that based on the facts and circumstances in each case or under the rules given above in Trading in stocks, securities, and commodities . How to file 2009 taxes in 2013 Effectively Connected Income If you are engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business, all income, gain, or loss for the tax year that you get from sources within the United States (other than certain investment income) is treated as effectively connected income. How to file 2009 taxes in 2013 This applies whether or not there is any connection between the income and the trade or business being carried on in the United States during the tax year. How to file 2009 taxes in 2013 Two tests, described next under Investment Income, determine whether certain items of investment income (such as interest, dividends, and royalties) are treated as effectively connected with that business. How to file 2009 taxes in 2013 In limited circumstances, some kinds of foreign source income may be treated as effectively connected with a trade or business in the United States. How to file 2009 taxes in 2013 For a discussion of these rules, see Foreign Income , later. How to file 2009 taxes in 2013 Investment Income Investment income from U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 sources that may or may not be treated as effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business generally falls into the following three categories. How to file 2009 taxes in 2013 Fixed or determinable income (interest, dividends, rents, royalties, premiums, annuities, etc. How to file 2009 taxes in 2013 ). How to file 2009 taxes in 2013 Gains (some of which are considered capital gains) from the sale or exchange of the following types of property. How to file 2009 taxes in 2013 Timber, coal, or domestic iron ore with a retained economic interest. How to file 2009 taxes in 2013 Patents, copyrights, and similar property on which you receive contingent payments after October 4, 1966. How to file 2009 taxes in 2013 Patents transferred before October 5, 1966. How to file 2009 taxes in 2013 Original issue discount obligations. How to file 2009 taxes in 2013 Capital gains (and losses). How to file 2009 taxes in 2013 Use the two tests, described next, to determine whether an item of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source income falling in one of the three categories above and received during the tax year is effectively connected with your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 If the tests indicate that the item of income is effectively connected, you must include it with your other effectively connected income. How to file 2009 taxes in 2013 If the item of income is not effectively connected, include it with all other income discussed under The 30% Tax later, in this chapter. How to file 2009 taxes in 2013 Asset-use test. How to file 2009 taxes in 2013   This test usually applies to income that is not directly produced by trade or business activities. How to file 2009 taxes in 2013 Under this test, if an item of income is from assets (property) used in, or held for use in, the trade or business in the United States, it is considered effectively connected. How to file 2009 taxes in 2013   An asset is used in, or held for use in, the trade or business in the United States if the asset is: Held for the principal purpose of promoting the conduct of a trade or business in the United States, Acquired and held in the ordinary course of the trade or business conducted in the United States (for example, an account receivable or note receivable arising from that trade or business), or Otherwise held to meet the present needs of the trade or business in the United States and not its anticipated future needs. How to file 2009 taxes in 2013 Generally, stock of a corporation is not treated as an asset used in, or held for use in, a trade or business in the United States. How to file 2009 taxes in 2013 Business-activities test. How to file 2009 taxes in 2013   This test usually applies when income, gain, or loss comes directly from the active conduct of the trade or business. How to file 2009 taxes in 2013 The business-activities test is most important when: Dividends or interest are received by a dealer in stocks or securities, Royalties are received in the trade or business of licensing patents or similar property, or Service fees are earned by a servicing business. How to file 2009 taxes in 2013 Under this test, if the conduct of the U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business was a material factor in producing the income, the income is considered effectively connected. How to file 2009 taxes in 2013 Personal Service Income You usually are engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business when you perform personal services in the United States. How to file 2009 taxes in 2013 Personal service income you receive in a tax year in which you are engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business is effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 Income received in a year other than the year you performed the services is also effectively connected if it would have been effectively connected if received in the year you performed the services. How to file 2009 taxes in 2013 Personal service income includes wages, salaries, commissions, fees, per diem allowances, and employee allowances and bonuses. How to file 2009 taxes in 2013 The income may be paid to you in the form of cash, services, or property. How to file 2009 taxes in 2013 If you are engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business only because you perform personal services in the United States during the tax year, income and gains from assets, and gains and losses from the sale or exchange of capital assets are generally not effectively connected with your trade or business. How to file 2009 taxes in 2013 However, if there is a direct economic relationship between your holding of the asset and your trade or business of performing personal services, the income, gain, or loss is effectively connected. How to file 2009 taxes in 2013 Pensions. How to file 2009 taxes in 2013   If you were a nonresident alien engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business after 1986 because you performed personal services in the United States, and you later receive a pension or retirement pay attributable to these services, such payments are effectively connected income in each year you receive them. How to file 2009 taxes in 2013 This is true whether or not you are engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business in the year you receive the retirement pay. How to file 2009 taxes in 2013 Transportation Income Transportation income (defined in chapter 2) is effectively connected if you meet both of the following conditions. How to file 2009 taxes in 2013 You had a fixed place of business in the United States involved in earning the income. How to file 2009 taxes in 2013 At least 90% of your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source transportation income is attributable to regularly scheduled transportation. How to file 2009 taxes in 2013 “Fixed place of business” generally means a place, site, structure, or other similar facility through which you engage in a trade or business. How to file 2009 taxes in 2013 “Regularly scheduled transportation” means that a ship or aircraft follows a published schedule with repeated sailings or flights at regular intervals between the same points for voyages or flights that begin or end in the United States. How to file 2009 taxes in 2013 This definition applies to both scheduled and chartered air transportation. How to file 2009 taxes in 2013 If you do not meet the two conditions above, the income is not effectively connected and is taxed at a 4% rate. How to file 2009 taxes in 2013 See Transportation Tax, later, in this chapter. How to file 2009 taxes in 2013 Business Profits and Losses and Sales Transactions All profits or losses from U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 sources that are from the operation of a business in the United States are effectively connected with a trade or business in the United States. How to file 2009 taxes in 2013 For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income. How to file 2009 taxes in 2013 A share of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source profits or losses of a partnership that is engaged in a trade or business in the United States is also effectively connected with a trade or business in the United States. How to file 2009 taxes in 2013 Real Property Gain or Loss Gains and losses from the sale or exchange of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interests (whether or not they are capital assets) are taxed as if you are engaged in a trade or business in the United States. How to file 2009 taxes in 2013 You must treat the gain or loss as effectively connected with that trade or business. How to file 2009 taxes in 2013 U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest. How to file 2009 taxes in 2013   This is any interest in real property located in the United States or the U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 Virgin Islands or any interest (other than as a creditor) in a domestic corporation that is a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property holding corporation. How to file 2009 taxes in 2013 Real property includes the following. How to file 2009 taxes in 2013 Land and unsevered natural products of the land, such as growing crops and timber, and mines, wells, and other natural deposits. How to file 2009 taxes in 2013 Improvements on land, including buildings, other permanent structures, and their structural components. How to file 2009 taxes in 2013 Personal property associated with the use of real property, such as equipment used in farming, mining, forestry, or construction or property used in lodging facilities or rented office space, unless the personal property is: Disposed of more than one year before or after the disposition of the real property, or Separately sold to persons unrelated either to the seller or to the buyer of the real property. How to file 2009 taxes in 2013 U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property holding corporation. How to file 2009 taxes in 2013   A corporation is a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property holding corporation if the fair market value of the corporation's U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interests are at least 50% of the total fair market value of: The corporation's U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interests, plus The corporation's interests in real property located outside the United States, plus The corporation's other assets that are used in, or held for use in, a trade or business. How to file 2009 taxes in 2013   Gain or loss on the sale of the stock in any domestic corporation is taxed as if you are engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business unless you establish that the corporation is not a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property holding corporation. How to file 2009 taxes in 2013   A U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest does not include a class of stock of a corporation that is regularly traded on an established securities market, unless you hold more than 5% of the fair market value of that class of stock. How to file 2009 taxes in 2013 An interest in a foreign corporation owning U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property generally is not a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest unless the corporation chooses to be treated as a domestic corporation. How to file 2009 taxes in 2013 Qualified investment entities. How to file 2009 taxes in 2013   Special rules apply to qualified investment entities (QIEs). How to file 2009 taxes in 2013 A QIE is any real estate investment trust (REIT) or any regulated investment company (RIC) that is a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property holding corporation. How to file 2009 taxes in 2013    Generally, any distribution from a QIE to a shareholder that is attributable to gain from the sale or exchange of a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest is treated as a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property gain by the shareholder receiving the distribution. How to file 2009 taxes in 2013 A distribution by a QIE on stock regularly traded on an established securities market in the United States is not treated as gain from the sale or exchange of a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest if you did not own more than 5% of that stock at any time during the 1-year period ending on the date of the distribution. How to file 2009 taxes in 2013 A distribution that you do not treat as gain from the sale or exchange of a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest is included in your gross income as a regular dividend. How to file 2009 taxes in 2013 Note. How to file 2009 taxes in 2013 Beginning January 1, 2014 (unless extended by legislation), a RIC that is a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property holding corporation will only be treated as a QIE for certain distributions from the RIC that are directly or indirectly attributable to distributions received by the RIC from a REIT. How to file 2009 taxes in 2013 Domestically controlled QIE. How to file 2009 taxes in 2013   The sale of an interest in a domestically controlled QIE is not the sale of a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest. How to file 2009 taxes in 2013 The entity is domestically controlled if at all times during the testing period less than 50% in value of its stock was held, directly or indirectly, by foreign persons. How to file 2009 taxes in 2013 The testing period is the shorter of (a) the 5-year period ending on the date of disposition, or (b) the period during which the entity was in existence. How to file 2009 taxes in 2013 Wash sale. How to file 2009 taxes in 2013    If you dispose of an interest in a domestically controlled QIE in an applicable wash sale transaction, special rules apply. How to file 2009 taxes in 2013 An applicable wash sale transaction is one in which you: Dispose of an interest in the domestically controlled QIE during the 30-day period before the ex-dividend date of a distribution that you would (but for the disposition) have treated as gain from the sale or exchange of a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest, and Acquire, or enter into a contract or option to acquire, a substantially identical interest in that entity during the 61-day period that began on the first day of the 30-day period. How to file 2009 taxes in 2013 If this occurs, you are treated as having gain from the sale or exchange of a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest in an amount equal to the distribution made after June 15, 2006, that would have been treated as such gain. How to file 2009 taxes in 2013 This also applies to any substitute dividend payment. How to file 2009 taxes in 2013   A transaction is not treated as an applicable wash sale transaction if: You actually receive the distribution from the domestically controlled QIE related to the interest disposed of, or acquired, in the transaction, or You dispose of any class of stock in a QIE that is regularly traded on an established securities market in the United States but only if you did not own more than 5% of that class of stock at any time during the 1-year period ending on the date of the distribution. How to file 2009 taxes in 2013 Alternative minimum tax. How to file 2009 taxes in 2013   There may be a minimum tax on your net gain from the disposition of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interests. How to file 2009 taxes in 2013 Figure the amount of this tax, if any, on Form 6251. How to file 2009 taxes in 2013 Withholding of tax. How to file 2009 taxes in 2013   If you dispose of a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest, the buyer may have to withhold tax. How to file 2009 taxes in 2013 See the discussion of Tax Withheld on Real Property Sales in chapter 8. How to file 2009 taxes in 2013 Foreign Income You must treat three kinds of foreign source income as effectively connected with a trade or business in the United States if: You have an office or other fixed place of business in the United States to which the income can be attributed, That office or place of business is a material factor in producing the income, and The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. How to file 2009 taxes in 2013 An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. How to file 2009 taxes in 2013 The three kinds of foreign source income are listed below. How to file 2009 taxes in 2013 Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the United States or from any interest in such property. How to file 2009 taxes in 2013 Included are rents or royalties for the use, or for the privilege of using, outside the United States, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the United States. How to file 2009 taxes in 2013 Dividends, interest, or amounts received for the provision of a guarantee of indebtedness issued after September 27, 2010, from the active conduct of a banking, financing, or similar business in the United States. How to file 2009 taxes in 2013 A substitute dividend or interest payment received under a securities lending transaction or a sale-repurchase transaction is treated the same as the amounts received on the transferred security. How to file 2009 taxes in 2013 Income, gain, or loss from the sale outside the United States, through the U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 office or other fixed place of business, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. How to file 2009 taxes in 2013 Item (3) will not apply if you sold the property for use, consumption, or disposition outside the United States and an office or other fixed place of business in a foreign country was a material factor in the sale. How to file 2009 taxes in 2013 Any foreign source income that is equivalent to any item of income described above is treated as effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 For example, foreign source interest and dividend equivalents are treated as U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 effectively connected income if the income is derived by a foreign person in the active conduct of a banking, financing, or similar business within the United States. How to file 2009 taxes in 2013 Tax on Effectively Connected Income Income you receive during the tax year that is effectively connected with your trade or business in the United States is, after allowable deductions, taxed at the rates that apply to U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizens and residents. How to file 2009 taxes in 2013 Generally, you can receive effectively connected income only if you are a nonresident alien engaged in trade or business in the United States during the tax year. How to file 2009 taxes in 2013 However, income you receive from the sale or exchange of property, the performance of services, or any other transaction in another tax year is treated as effectively connected in that year if it would have been effectively connected in the year the transaction took place or you performed the services. How to file 2009 taxes in 2013 Example. How to file 2009 taxes in 2013 Ted Richards, a nonresident alien, entered the United States in August 2012, to perform personal services in the U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 office of his overseas employer. How to file 2009 taxes in 2013 He worked in the U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 office until December 25, 2012, but did not leave this country until January 11, 2013. How to file 2009 taxes in 2013 On January 8, 2013, he received his final paycheck for services performed in the United States during 2012. How to file 2009 taxes in 2013 All of Ted's income during his stay here is U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source income. How to file 2009 taxes in 2013 During 2012, Ted was engaged in the trade or business of performing personal services in the United States. How to file 2009 taxes in 2013 Therefore, all amounts paid to him in 2012 for services performed in the United States during 2012 are effectively connected with that trade or business during 2012. How to file 2009 taxes in 2013 The salary payment Ted received in January 2013 is U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source income to him in 2013. How to file 2009 taxes in 2013 It is effectively connected with a trade or business in the United States because he was engaged in a trade or business in the United States during 2012 when he performed the services that earned the income. How to file 2009 taxes in 2013 Real property income. How to file 2009 taxes in 2013   You may be able to choose to treat all income from real property as effectively connected. How to file 2009 taxes in 2013 See Income From Real Property , later, in this chapter. How to file 2009 taxes in 2013 The 30% Tax Tax at a 30% (or lower treaty) rate applies to certain items of income or gains from U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 sources but only if the items are not effectively connected with your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 Fixed or Determinable Income The 30% (or lower treaty) rate applies to the gross amount of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source fixed or determinable annual or periodic gains, profits, or income. How to file 2009 taxes in 2013 Income is fixed when it is paid in amounts known ahead of time. How to file 2009 taxes in 2013 Income is determinable whenever there is a basis for figuring the amount to be paid. How to file 2009 taxes in 2013 Income can be periodic if it is paid from time to time. How to file 2009 taxes in 2013 It does not have to be paid annually or at regular intervals. How to file 2009 taxes in 2013 Income can be determinable or periodic even if the length of time during which the payments are made is increased or decreased. How to file 2009 taxes in 2013 Items specifically included as fixed or determinable income are interest (other than original issue discount), dividends, dividend equivalent payments (defined in chapter 2), rents, premiums, annuities, salaries, wages, and other compensation. How to file 2009 taxes in 2013 A substitute dividend or interest payment received under a securities lending transaction or a sale-repurchase transaction is treated the same as the amounts received on the transferred security. How to file 2009 taxes in 2013 Other items of income, such as royalties, also may be subject to the 30% tax. How to file 2009 taxes in 2013 Some fixed or determinable income may be exempt from U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 tax. How to file 2009 taxes in 2013 See chapter 3 if you are not sure whether the income is taxable. How to file 2009 taxes in 2013 Original issue discount (OID). How to file 2009 taxes in 2013   If you sold, exchanged, or received a payment on a bond or other debt instrument that was issued at a discount after March 31, 1972, all or part of the original issue discount (OID) (other than portfolio interest) may be subject to the 30% tax. How to file 2009 taxes in 2013 The amount of OID is the difference between the stated redemption price at maturity and the issue price of the debt instrument. How to file 2009 taxes in 2013 The 30% tax applies in the following circumstances. How to file 2009 taxes in 2013 You received a payment on a debt instrument. How to file 2009 taxes in 2013 In this case, the amount of OID subject to tax is the OID that accrued while you held the debt instrument minus the OID previously taken into account. How to file 2009 taxes in 2013 But the tax on the OID cannot be more than the payment minus the tax on the interest payment on the debt instrument. How to file 2009 taxes in 2013 You sold or exchanged the debt instrument. How to file 2009 taxes in 2013 The amount of OID subject to tax is the OID that accrued while you held the debt instrument minus the amount already taxed in (1) above. How to file 2009 taxes in 2013   Report on your return the amount of OID shown on Form 1042-S, Foreign Person's U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 Source Income Subject to Withholding, if you bought the debt instrument at original issue. How to file 2009 taxes in 2013 However, you must recompute your proper share of OID shown on Form 1042-S if any of the following apply. How to file 2009 taxes in 2013 You bought the debt instrument at a premium or paid an acquisition premium. How to file 2009 taxes in 2013 The debt instrument is a stripped bond or a stripped coupon (including zero coupon instruments backed by U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 Treasury securities). How to file 2009 taxes in 2013 The debt instrument is a contingent payment or inflation-indexed debt instrument. How to file 2009 taxes in 2013 For the definition of premium and acquisition premium and instructions on how to recompute OID, get Publication 1212. How to file 2009 taxes in 2013   If you held a bond or other debt instrument that was issued at a discount before April 1, 1972, contact the IRS for further information. How to file 2009 taxes in 2013 See chapter 12. How to file 2009 taxes in 2013 Gambling Winnings In general, nonresident aliens are subject to the 30% tax on the gross proceeds from gambling won in the United States if that income is not effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business and is not exempted by treaty. How to file 2009 taxes in 2013 However, no tax is imposed on nonbusiness gambling income a nonresident alien wins playing blackjack, baccarat, craps, roulette, or big-6 wheel in the United States. How to file 2009 taxes in 2013 Nonresident aliens are taxed at graduated rates on net gambling income won in the United States that is effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 Social Security Benefits A nonresident alien must include 85% of any U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 social security benefit (and the social security equivalent part of a tier 1 railroad retirement benefit) in U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source fixed or determinable annual or periodic income. How to file 2009 taxes in 2013 Social security benefits include monthly retirement, survivor, and disability benefits. How to file 2009 taxes in 2013 This income is exempt under some tax treaties. How to file 2009 taxes in 2013 See Table 1 in Publication 901, U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 Tax Treaties, for a list of tax treaties that exempt U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 social security benefits from U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 tax. How to file 2009 taxes in 2013 Sales or Exchanges of Capital Assets These rules apply only to those capital gains and losses from sources in the United States that are not effectively connected with a trade or business in the United States. How to file 2009 taxes in 2013 They apply even if you are engaged in a trade or business in the United States. How to file 2009 taxes in 2013 These rules do not apply to the sale or exchange of a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 real property interest or to the sale of any property that is effectively connected with a trade or business in the United States. How to file 2009 taxes in 2013 See Real Property Gain or Loss , earlier, under Effectively Connected Income. How to file 2009 taxes in 2013 A capital asset is everything you own except: Inventory. How to file 2009 taxes in 2013 Business accounts or notes receivable. How to file 2009 taxes in 2013 Depreciable property used in a trade or business. How to file 2009 taxes in 2013 Real property used in a trade or business. How to file 2009 taxes in 2013 Supplies regularly used in a trade or business. How to file 2009 taxes in 2013 Certain copyrights, literary or musical or artistic compositions, letters or memoranda, or similar property. How to file 2009 taxes in 2013 Certain U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 government publications. How to file 2009 taxes in 2013 Certain commodities derivative financial instruments held by a commodities derivatives dealer. How to file 2009 taxes in 2013 Hedging transactions. How to file 2009 taxes in 2013 A capital gain is a gain on the sale or exchange of a capital asset. How to file 2009 taxes in 2013 A capital loss is a loss on the sale or exchange of a capital asset. How to file 2009 taxes in 2013 If the sale is in foreign currency, for the purpose of determining gain, the cost and selling price of the property should be expressed in U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 currency at the rate of exchange prevailing as of the date of the purchase and date of the sale, respectively. How to file 2009 taxes in 2013 You may want to read Publication 544. How to file 2009 taxes in 2013 However, use Publication 544 only to determine what is a sale or exchange of a capital asset, or what is treated as such. How to file 2009 taxes in 2013 Specific tax treatment that applies to U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizens or residents generally does not apply to you. How to file 2009 taxes in 2013 The following gains are subject to the 30% (or lower treaty) rate without regard to the 183-day rule, discussed later. How to file 2009 taxes in 2013 Gains on the disposal of timber, coal, or domestic iron ore with a retained economic interest. How to file 2009 taxes in 2013 Gains on contingent payments received from the sale or exchange of patents, copyrights, and similar property after October 4, 1966. How to file 2009 taxes in 2013 Gains on certain transfers of all substantial rights to, or an undivided interest in, patents if the transfers were made before October 5, 1966. How to file 2009 taxes in 2013 Gains on the sale or exchange of original issue discount obligations. How to file 2009 taxes in 2013 Gains in (1) are not subject to the 30% (or lower treaty) rate if you choose to treat the gains as effectively connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 See Income From Real Property , later. How to file 2009 taxes in 2013 183-day rule. How to file 2009 taxes in 2013   If you were in the United States for 183 days or more during the tax year, your net gain from sales or exchanges of capital assets is taxed at a 30% (or lower treaty) rate. How to file 2009 taxes in 2013 For purposes of the 30% (or lower treaty) rate, net gain is the excess of your capital gains from U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 sources over your capital losses from U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 sources. How to file 2009 taxes in 2013 This rule applies even if any of the transactions occurred while you were not in the United States. How to file 2009 taxes in 2013   To determine your net gain, consider the amount of your gains and losses that would be recognized and taken into account only if, and to the extent that, they would be recognized and taken into account if you were in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business during the year and the gains and losses were effectively connected with that trade or business during the tax year. How to file 2009 taxes in 2013   In arriving at your net gain, do not take the following into consideration. How to file 2009 taxes in 2013 The four types of gains listed earlier. How to file 2009 taxes in 2013 The deduction for a capital loss carryover. How to file 2009 taxes in 2013 Capital losses in excess of capital gains. How to file 2009 taxes in 2013 Exclusion for gain from the sale or exchange of qualified small business stock (section 1202 exclusion). How to file 2009 taxes in 2013 Losses from the sale or exchange of property held for personal use. How to file 2009 taxes in 2013 However, losses resulting from casualties or thefts may be deductible on Schedule A (Form 1040NR). How to file 2009 taxes in 2013 See Itemized Deductions in chapter 5. How to file 2009 taxes in 2013   If you are not engaged in a trade or business in the United States and have not established a tax year for a prior period, your tax year will be the calendar year for purposes of the 183-day rule. How to file 2009 taxes in 2013 Also, you must file your tax return on a calendar-year basis. How to file 2009 taxes in 2013   If you were in the United States for less than 183 days during the tax year, capital gains (other than gains listed earlier) are tax exempt unless they are effectively connected with a trade or business in the United States during your tax year. How to file 2009 taxes in 2013 Reporting. How to file 2009 taxes in 2013   Report your gains and losses from the sales or exchanges of capital assets that are not effectively connected with a trade or business in the United States on page 4 of Form 1040NR. How to file 2009 taxes in 2013 Report gains and losses from sales or exchanges of capital assets (including real property) that are effectively connected with a trade or business in the United States on a separate Schedule D (Form 1040), Form 4797, or both. How to file 2009 taxes in 2013 Attach them to Form 1040NR. How to file 2009 taxes in 2013 Income From Real Property If you have income from real property located in the United States that you own or have an interest in and hold for the production of income, you can choose to treat all income from that property as income effectively connected with a trade or business in the United States. How to file 2009 taxes in 2013 The choice applies to all income from real property located in the United States and held for the production of income and to all income from any interest in such property. How to file 2009 taxes in 2013 This includes income from rents, royalties from mines, oil or gas wells, or other natural resources. How to file 2009 taxes in 2013 It also includes gains from the sale or exchange of timber, coal, or domestic iron ore with a retained economic interest. How to file 2009 taxes in 2013 You can make this choice only for real property income that is not otherwise effectively connected with your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 If you make the choice, you can claim deductions attributable to the real property income and only your net income from real property is taxed. How to file 2009 taxes in 2013 This choice does not treat a nonresident alien, who is not otherwise engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business, as being engaged in a trade or business in the United States during the year. How to file 2009 taxes in 2013 Example. How to file 2009 taxes in 2013 You are a nonresident alien and are not engaged in a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 You own a single-family house in the United States that you rent out. How to file 2009 taxes in 2013 Your rental income for the year is $10,000. How to file 2009 taxes in 2013 This is your only U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source income. How to file 2009 taxes in 2013 As discussed earlier under The 30% Tax, the rental income is subject to a tax at a 30% (or lower treaty) rate. How to file 2009 taxes in 2013 You received a Form 1042-S showing that your tenants properly withheld this tax from the rental income. How to file 2009 taxes in 2013 You do not have to file a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 tax return (Form 1040NR) because your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 tax liability is satisfied by the withholding of tax. How to file 2009 taxes in 2013 If you make the choice discussed earlier, you can offset the $10,000 income by certain rental expenses. How to file 2009 taxes in 2013 (See Publication 527, Residential Rental Property, for information on rental expenses. How to file 2009 taxes in 2013 ) Any resulting net income is taxed at graduated rates. How to file 2009 taxes in 2013 If you make this choice, report the rental income and expenses on Schedule E (Form 1040) and attach the schedule to Form 1040NR. How to file 2009 taxes in 2013 For the first year you make the choice, also attach the statement discussed next. How to file 2009 taxes in 2013 Making the choice. How to file 2009 taxes in 2013   Make the initial choice by attaching a statement to your return, or amended return, for the year of the choice. How to file 2009 taxes in 2013 Include the following in your statement. How to file 2009 taxes in 2013 That you are making the choice. How to file 2009 taxes in 2013 Whether the choice is under Internal Revenue Code section 871(d) (explained earlier) or a tax treaty. How to file 2009 taxes in 2013 A complete list of all your real property, or any interest in real property, located in the United States. How to file 2009 taxes in 2013 Give the legal identification of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 timber, coal, or iron ore in which you have an interest. How to file 2009 taxes in 2013 The extent of your ownership in the property. How to file 2009 taxes in 2013 The location of the property. How to file 2009 taxes in 2013 A description of any major improvements to the property. How to file 2009 taxes in 2013 The dates you owned the property. How to file 2009 taxes in 2013 Your income from the property. How to file 2009 taxes in 2013 Details of any previous choices and revocations of the real property income choice. How to file 2009 taxes in 2013   This choice stays in effect for all later tax years unless you revoke it. How to file 2009 taxes in 2013 Revoking the choice. How to file 2009 taxes in 2013   You can revoke the choice without IRS approval by filing Form 1040X, Amended U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 Individual Income Tax Return, for the year you made the choice and for later tax years. How to file 2009 taxes in 2013 You must file Form 1040X within 3 years from the date your return was filed or 2 years from the time the tax was paid, whichever is later. How to file 2009 taxes in 2013 If this time period has expired for the year of choice, you cannot revoke the choice for that year. How to file 2009 taxes in 2013 However, you may revoke the choice for later tax years only if you have IRS approval. How to file 2009 taxes in 2013 For information on how to get IRS approval, see Regulation section 1. How to file 2009 taxes in 2013 871-10(d)(2). How to file 2009 taxes in 2013 Transportation Tax A 4% tax rate applies to transportation income that is not effectively connected because it does not meet the two conditions listed earlier under Transportation Income . How to file 2009 taxes in 2013 If you receive transportation income subject to the 4% tax, you should figure the tax and show it on line 57 of Form 1040NR. How to file 2009 taxes in 2013 Attach a statement to your return that includes the following information (if applicable). How to file 2009 taxes in 2013 Your name, taxpayer identification number, and tax year. How to file 2009 taxes in 2013 A description of the types of services performed (whether on or off board). How to file 2009 taxes in 2013 Names of vessels or registration numbers of aircraft on which you performed the services. How to file 2009 taxes in 2013 Amount of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source transportation income derived from each type of service for each vessel or aircraft for the calendar year. How to file 2009 taxes in 2013 Total amount of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source transportation income derived from all types of services for the calendar year. How to file 2009 taxes in 2013 This 4% tax applies to your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source gross transportation income. How to file 2009 taxes in 2013 This only includes transportation income that is treated as derived from sources in the United States if the transportation begins or ends in the United States. How to file 2009 taxes in 2013 For transportation income from personal services, the transportation must be between the United States and a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 possession. How to file 2009 taxes in 2013 For personal services of a nonresident alien, this only applies to income derived from, or in connection with, an aircraft. How to file 2009 taxes in 2013 Interrupted Period of Residence You are subject to tax under a special rule if you interrupt your period of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 residence with a period of nonresidence. How to file 2009 taxes in 2013 The special rule applies if you meet all of the following conditions. How to file 2009 taxes in 2013 You were a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 resident for a period that includes at least 3 consecutive calendar years. How to file 2009 taxes in 2013 You were a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 resident for at least 183 days in each of those years. How to file 2009 taxes in 2013 You ceased to be treated as a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 resident. How to file 2009 taxes in 2013 You then again became a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 resident before the end of the third calendar year after the end of the period described in (1) above. How to file 2009 taxes in 2013 Under this special rule, you are subject to tax on your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source gross income and gains on a net basis at the graduated rates applicable to individuals (with allowable deductions) for the period you were a nonresident alien, unless you would be subject to a higher tax under the 30% tax (discussed earlier) on income not connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 For information on how to figure the special tax, see How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) under Expatriation Tax , below. How to file 2009 taxes in 2013 Example. How to file 2009 taxes in 2013 John Willow, a citizen of New Zealand, entered the United States on April 1, 2008, as a lawful permanent resident. How to file 2009 taxes in 2013 On August 1, 2010, John ceased to be a lawful permanent resident and returned to New Zealand. How to file 2009 taxes in 2013 During his period of residence, he was present in the United States for at least 183 days in each of three consecutive years (2008, 2009, and 2010). How to file 2009 taxes in 2013 He returned to the United States on October 5, 2013, as a lawful permanent resident. How to file 2009 taxes in 2013 He became a resident before the close of the third calendar year (2013) beginning after the end of his first period of residence (August 1, 2010). How to file 2009 taxes in 2013 Therefore, he is subject to tax under the special rule for the period of nonresidence (August 2, 2010, through October 4, 2013) if it is more than the tax that would normally apply to him as a nonresident alien. How to file 2009 taxes in 2013 Reporting requirements. How to file 2009 taxes in 2013   If you are subject to this tax for any year in the period you were a nonresident alien, you must file Form 1040NR for that year. How to file 2009 taxes in 2013 The return is due by the due date (including extensions) for filing your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 income tax return for the year that you again become a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 resident. How to file 2009 taxes in 2013 If you already filed returns for that period, you must file amended returns. How to file 2009 taxes in 2013 You must attach a statement to your return that identifies the source of all of your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 and foreign gross income and the items of income subject to this special rule. How to file 2009 taxes in 2013 Expatriation Tax The expatriation tax provisions apply to U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizens who have renounced their citizenship and long-term residents who have ended their residency. How to file 2009 taxes in 2013 The rules that apply are based on the dates of expatriation, which are described in the following sections. How to file 2009 taxes in 2013 Expatriation Before June 4, 2004. How to file 2009 taxes in 2013 Expatriation After June 3, 2004, and Before June 17, 2008. How to file 2009 taxes in 2013 Expatriation After June 16, 2008. How to file 2009 taxes in 2013 Long-term resident defined. How to file 2009 taxes in 2013   You are a long-term resident if you were a lawful permanent resident of the United States in at least 8 of the last 15 tax years ending with the year your residency ends. How to file 2009 taxes in 2013 In determining if you meet the 8-year requirement, do not count any year that you are treated as a resident of a foreign country under a tax treaty and do not waive treaty benefits. How to file 2009 taxes in 2013 Expatriation Before June 4, 2004 If you expatriated before June 4, 2004, the expatriation rules apply if one of the principal purposes of the action is the avoidance of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 taxes. How to file 2009 taxes in 2013 Unless you received a ruling from the IRS that you did not expatriate to avoid U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 taxes, you are presumed to have tax avoidance as a principal purpose if: Your average annual net income tax for the last 5 tax years ending before the date of your action to relinquish your citizenship or terminate your residency was more than $100,000, or Your net worth on the date of your action was $500,000 or more. How to file 2009 taxes in 2013 The amounts above are adjusted for inflation if your expatriation action is after 1997 (see Table 4-1). How to file 2009 taxes in 2013 Table 4-1. How to file 2009 taxes in 2013 Inflation-Adjusted Amounts for Expatriation Actions Before June 4, 2004 IF you expatriated during . How to file 2009 taxes in 2013 . How to file 2009 taxes in 2013 . How to file 2009 taxes in 2013   THEN the rules outlined on this page apply if . How to file 2009 taxes in 2013 . How to file 2009 taxes in 2013 . How to file 2009 taxes in 2013     Your 5-year average annual net income tax was more than . How to file 2009 taxes in 2013 . How to file 2009 taxes in 2013 . How to file 2009 taxes in 2013 OR Your net worth equaled or exceeded . How to file 2009 taxes in 2013 . How to file 2009 taxes in 2013 . How to file 2009 taxes in 2013 1999   110,000   552,000 2000   112,000   562,000 2001   116,000   580,000 2002   120,000   599,000 2003   122,000   608,000 2004 (before June 4)*   124,000   622,000 *If you expatriated after June 3, 2004, see Expatriation After June 3, 2004, and Before June 17, 2008 or Expatriation After June 16, 2008. How to file 2009 taxes in 2013 Reporting requirements. How to file 2009 taxes in 2013   If you lost your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizenship, you should have filed Form 8854 with a consular office or a federal court at the time of loss of citizenship. How to file 2009 taxes in 2013 If you ended your long-term residency, you should have filed Form 8854 with the Internal Revenue Service when you filed your dual-status tax return for the year your residency ended. How to file 2009 taxes in 2013   Your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 residency is considered to have ended when you ceased to be a lawful permanent resident or you began to be treated as a resident of another country under a tax treaty and do not waive treaty benefits. How to file 2009 taxes in 2013 Penalties. How to file 2009 taxes in 2013   If you failed to file Form 8854, you may have to pay a penalty equal to the greater of 5% of the expatriation tax or $1,000. How to file 2009 taxes in 2013 The penalty will be assessed for each year of the 10-year period beginning on the date of expatriation during which your failure to file continues. How to file 2009 taxes in 2013 The penalty will not be imposed if you can show that the failure is due to reasonable cause and not willful neglect. How to file 2009 taxes in 2013 Expatriation tax. How to file 2009 taxes in 2013   The expatriation tax applies to the 10-year period following the date of expatriation or termination of residency. How to file 2009 taxes in 2013 It is figured in the same way as for those expatriating after June 3, 2004, and before June 17, 2008. How to file 2009 taxes in 2013 See How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) in the next section. How to file 2009 taxes in 2013 Expatriation After June 3, 2004, and Before June 17, 2008 If you expatriated after June 3, 2004, and before June 17, 2008, the expatriation rules apply to you if any of the following statements apply. How to file 2009 taxes in 2013 Your average annual net income tax for the 5 tax years ending before the date of expatriation or termination of residency is more than: $124,000 if you expatriated or terminated residency in 2004. How to file 2009 taxes in 2013 $127,000 if you expatriated or terminated residency in 2005. How to file 2009 taxes in 2013 $131,000 if you expatriated or terminated residency in 2006. How to file 2009 taxes in 2013 $136,000 if you expatriated or terminated residency in 2007. How to file 2009 taxes in 2013 $139,000 if you expatriated or terminated residency in 2008. How to file 2009 taxes in 2013 Your net worth is $2 million or more on the date of your expatriation or termination of residency. How to file 2009 taxes in 2013 You fail to certify on Form 8854 that you have complied with all U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 federal tax obligations for the 5 tax years preceding the date of your expatriation or termination of residency. How to file 2009 taxes in 2013 Exception for dual-citizens and certain minors. How to file 2009 taxes in 2013   Certain dual-citizens and certain minors (defined next) are not subject to the expatriation tax even if they meet (1) or (2) earlier. How to file 2009 taxes in 2013 However, they still must provide the certification required in (3). How to file 2009 taxes in 2013 Certain dual-citizens. How to file 2009 taxes in 2013   You may qualify for the exception described above if all of the following apply. How to file 2009 taxes in 2013 You became at birth a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizen and a citizen of another country and you continue to be a citizen of that other country. How to file 2009 taxes in 2013 You were never a resident alien of the United States (as defined in chapter 1). How to file 2009 taxes in 2013 You never held a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 passport. How to file 2009 taxes in 2013 You were present in the United States for no more than 30 days during any calendar year that is 1 of the 10 calendar years preceding your loss of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizenship. How to file 2009 taxes in 2013 Certain minors. How to file 2009 taxes in 2013   You may qualify for the exception described above if you meet all of the following requirements. How to file 2009 taxes in 2013 You became a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizen at birth. How to file 2009 taxes in 2013 Neither of your parents was a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizen at the time of your birth. How to file 2009 taxes in 2013 You expatriated before you were 18½. How to file 2009 taxes in 2013 You were present in the United States for not more than 30 days during any calendar year that is 1 of the 10 calendar years preceding your expatriation. How to file 2009 taxes in 2013 Tax consequences of presence in the United States. How to file 2009 taxes in 2013   The following rules apply if you do not meet the exception above for dual-citizens and certain minors and the expatriation rules would otherwise apply to you. How to file 2009 taxes in 2013   The expatriation tax does not apply to any tax year during the 10-year period if you are physically present in the United States for more than 30 days during the calendar year ending in that year. How to file 2009 taxes in 2013 Instead, you are treated as a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizen or resident and taxed on your worldwide income for that tax year. How to file 2009 taxes in 2013 You must file Form 1040, 1040A, or 1040EZ and figure your tax as prescribed in the instructions for those forms. How to file 2009 taxes in 2013   When counting the number of days of presence during a calendar year, count any day you were physically present in the United States at any time during the day. How to file 2009 taxes in 2013 However, do not count any days (up to a limit of 30 days) on which you performed personal services in the United States for an employer who is not related to you if either of the following apply. How to file 2009 taxes in 2013 You have ties with other countries. How to file 2009 taxes in 2013 You have ties with other countries if: You became (within a reasonable period after your expatriation or termination of residency) a citizen or resident of the country in which you, your spouse, or either of your parents were born, and You became fully liable for income tax in that country. How to file 2009 taxes in 2013 You were physically present in the United States for 30 days or less during each year in the 10-year period ending on the date of expatriation or termination of residency. How to file 2009 taxes in 2013 Do not count any day you were an exempt individual or were unable to leave the United States because of a medical condition that arose while you were in the United States. How to file 2009 taxes in 2013 See Exempt individual and Medical condition in chapter 1 under Substantial Presence Test, but disregard the information about Form 8843. How to file 2009 taxes in 2013 Related employer. How to file 2009 taxes in 2013   If your employer in the United States is any of the following, then your employer is related to you. How to file 2009 taxes in 2013 You must count any days you performed services in the United States for that employer as days of presence in the United States. How to file 2009 taxes in 2013 Members of your family. How to file 2009 taxes in 2013 This includes only your brothers and sisters, half-brothers and half-sisters, spouse, ancestors (parents, grandparents, etc. How to file 2009 taxes in 2013 ), and lineal descendants (children, grandchildren, etc. How to file 2009 taxes in 2013 ). How to file 2009 taxes in 2013 A partnership in which you directly or indirectly own more than 50% of the capital interest or the profits interest. How to file 2009 taxes in 2013 A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock. How to file 2009 taxes in 2013 (See Publication 550, chapter 4, Constructive ownership of stock, for how to determine whether you directly or indirectly own outstanding stock. How to file 2009 taxes in 2013 ) A tax-exempt charitable or educational organization that is directly or indirectly controlled, in any manner or by any method, by you or by a member of your family, whether or not this control is legally enforceable. How to file 2009 taxes in 2013 Date of tax expatriation. How to file 2009 taxes in 2013   For purposes of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 tax rules, the date of your expatriation or termination of residency is the later of the dates on which you perform the following actions. How to file 2009 taxes in 2013 You notify either the Department of State or the Department of Homeland Security (whichever is appropriate) of your expatriating act or termination of residency. How to file 2009 taxes in 2013 You file Form 8854 in accordance with the form instructions. How to file 2009 taxes in 2013 Annual return. How to file 2009 taxes in 2013   If the expatriation tax applies to you, you must file Form 8854 each year during the 10-year period following the date of expatriation. How to file 2009 taxes in 2013 You must file this form even if you owe no U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 tax. How to file 2009 taxes in 2013 Penalty. How to file 2009 taxes in 2013   If you fail to file Form 8854 for any tax year, fail to include all information required to be shown on the form, or include incorrect information, you may have to pay a penalty of $10,000. How to file 2009 taxes in 2013 You will not have to pay a penalty if you show that the failure is due to reasonable cause and not to willful neglect. How to file 2009 taxes in 2013 How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) If the expatriation tax applies to you, you are generally subject to tax on your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source gross income and gains on a net basis at the graduated rates applicable to individuals (with allowable deductions) unless you would be subject to a higher tax under the 30% tax (discussed earlier) on income not connected with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 trade or business. How to file 2009 taxes in 2013 For this purpose, U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source gross income (defined in chapter 2) includes gains from the sale or exchange of: Property (other than stock or debt obligations) located in the United States, Stock issued by a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 domestic corporation, and Debt obligations of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 persons or of the United States, a state or political subdivision thereof, or the District of Columbia. How to file 2009 taxes in 2013 U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source income also includes any income or gain derived from stock in certain controlled foreign corporations if you owned, or were considered to own, at any time during the 2-year period ending on the date of expatriation, more than 50% of: The total combined voting power of all classes of that corporation's stock, or The total value of the stock. How to file 2009 taxes in 2013 The income or gain is considered U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source income only to the extent of your share of earnings and profits earned or accumulated before the date of expatriation and during the periods you met the ownership requirements discussed above. How to file 2009 taxes in 2013 Any exchange of property is treated as a sale of the property at its fair market value on the date of the exchange and any gain is treated as U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source gross income in the tax year of the exchange unless you enter into a gain recognition agreement under Notice 97-19. How to file 2009 taxes in 2013 Other information. How to file 2009 taxes in 2013   For more information on the expatriation tax provisions, including exceptions to the tax and special U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 source rules, see section 877 of the Internal Revenue Code. How to file 2009 taxes in 2013 Expatriation Tax Return If you expatriated or terminated your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 residency, or you are subject to the expatriation tax, you must file Form 8854, Initial and Annual Expatriation Statement. How to file 2009 taxes in 2013 Attach it to Form 1040NR if you are required to file that form. How to file 2009 taxes in 2013 If you are present in the United States following your expatriation and are subject to tax as a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizen or resident, file Form 8854 with Form 1040. How to file 2009 taxes in 2013 Expatriation After June 16, 2008 If you expatriated after June 16, 2008, the expatriation rules apply to you if you meet any of the following conditions. How to file 2009 taxes in 2013 Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than: $139,000 if you expatriated or terminated residency in 2008. How to file 2009 taxes in 2013 $145,000 if you expatriated or terminated residency in 2009 or 2010. How to file 2009 taxes in 2013 $147,000 if you expatriated or terminated residency in 2011. How to file 2009 taxes in 2013 $151,000 if you expatriated or terminated residency in 2012. How to file 2009 taxes in 2013 $155,000 if you expatriated or terminated residency in 2013. How to file 2009 taxes in 2013 Your net worth is $2 million or more on the date of your expatriation or termination of residency. How to file 2009 taxes in 2013 You fail to certify on Form 8854 that you have complied with all U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency. How to file 2009 taxes in 2013 Exception for dual-citizens and certain minors. How to file 2009 taxes in 2013   Certain dual-citizens and certain minors (defined next) are not subject to the expatriation tax even if they meet (1) or (2) above. How to file 2009 taxes in 2013 However, they still must provide the certification required in (3) above. How to file 2009 taxes in 2013 Certain dual-citizens. How to file 2009 taxes in 2013   You may qualify for the exception described above if both of the following apply. How to file 2009 taxes in 2013 You became at birth a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizen and a citizen of another country and you continue to be a citizen of, and are taxed as a resident of, that other country. How to file 2009 taxes in 2013 You have been a resident of the United States for not more than 10 years during the 15-year tax period ending with the tax year during which the expatriation occurs. How to file 2009 taxes in 2013 For the purpose of determining U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 residency, use the substantial presence test described in chapter 1. How to file 2009 taxes in 2013 Certain minors. How to file 2009 taxes in 2013   You may qualify for the exception described earlier if you meet both of the following requirements. How to file 2009 taxes in 2013 You expatriated before you were 18½. How to file 2009 taxes in 2013 You have been a resident of the United States for not more than 10 tax years before the expatriation occurs. How to file 2009 taxes in 2013 For the purpose of determining U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 residency, use the substantial presence test described in chapter 1. How to file 2009 taxes in 2013 Expatriation date. How to file 2009 taxes in 2013   Your expatriation date is the date you relinquish U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizenship (in the case of a former citizen) or terminate your long-term residency (in the case of a former U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 resident). How to file 2009 taxes in 2013 Former U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizen. How to file 2009 taxes in 2013   You are considered to have relinquished your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizenship on the earliest of the following dates. How to file 2009 taxes in 2013 The date you renounced U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 citizenship before a diplomatic or consular officer of the United States (provided that the voluntary renouncement was later confirmed by the issuance of a certificate of loss of nationality). How to file 2009 taxes in 2013 The date you furnished to the State Department a signed statement of voluntary relinquishment of U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 nationality confirming the performance of an expatriating act (provided that the voluntary relinquishment was later confirmed by the issuance of a certificate of loss of nationality). How to file 2009 taxes in 2013 The date the State Department issued a certificate of loss of nationality. How to file 2009 taxes in 2013 The date that a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 court canceled your certificate of naturalization. How to file 2009 taxes in 2013 Former long-term resident. How to file 2009 taxes in 2013   You are considered to have terminated your long-term residency on the earliest of the following dates. How to file 2009 taxes in 2013 The date you voluntarily relinquished your lawful permanent resident status by filing Department of Homeland Security Form I-407 with a U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 consular or immigration officer, and the Department of Homeland Security determined that you have, in fact, abandoned your lawful permanent resident status. How to file 2009 taxes in 2013 The date you became subject to a final administrative order for your removal from the United States under the Immigration and Nationality Act and you actually left the United States as a result of that order. How to file 2009 taxes in 2013 If you were a dual resident of the United States and a country with which the United States has an income tax treaty, the date you began to be treated as a resident of that country and you determined that, for purposes of the treaty, you are a resident of the treaty country and notify the IRS of that treatment on Forms 8833 and 8854. How to file 2009 taxes in 2013 See Effect of Tax Treaties in chapter 1 for more information about dual residents. How to file 2009 taxes in 2013 How To Figure the Expatriation Tax (If You Expatriate After June 16, 2008) In the year you expatriate, you are subject to income tax on the net unrealized gain (or loss) in your property as if the property had been sold for its fair market value on the day before your expatriation date (“mark-to-market tax”). How to file 2009 taxes in 2013 This applies to most types of property interests you held on the date of relinquishment of citizenship or termination of residency. How to file 2009 taxes in 2013 But see Exceptions , later. How to file 2009 taxes in 2013 Gains arising from deemed sales must be taken into account for the tax year of the deemed sale without regard to other U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 internal revenue laws. How to file 2009 taxes in 2013 Losses from deemed sales must be taken into account to the extent otherwise provided under U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 internal revenue laws. How to file 2009 taxes in 2013 However, Internal Revenue Code section 1091 (relating to the disallowance of losses on wash sales of stock and securities) does not apply. How to file 2009 taxes in 2013 The net gain that you otherwise must include in your income is reduced (but not below zero) by: $600,000 if you expatriated or terminated residency before January 1, 2009. How to file 2009 taxes in 2013 $626,000 if you expatriated or terminated residency in 2009. How to file 2009 taxes in 2013 $627,000 if you expatriated or terminated residency in 2010. How to file 2009 taxes in 2013 $636,000 if you expatriated or terminated residency in 2011. How to file 2009 taxes in 2013 $651,000 if you expatriated or terminated residency in 2012. How to file 2009 taxes in 2013 $668,000 if you expatriated or terminated residency in 2013. How to file 2009 taxes in 2013 Exceptions. How to file 2009 taxes in 2013   The mark-to-market tax does not apply to the following. How to file 2009 taxes in 2013 Eligible deferred compensation items. How to file 2009 taxes in 2013 Ineligible deferred compensation items. How to file 2009 taxes in 2013 Interests in nongrantor trusts. How to file 2009 taxes in 2013 Specified tax deferred accounts. How to file 2009 taxes in 2013 Instead, items (1) and (3) may be subject to withholding at source. How to file 2009 taxes in 2013 In the case of item (2), you are treated as receiving the present value of your accrued benefit as of the day before the expatriation date. How to file 2009 taxes in 2013 In the case of item (4), you are treated as receiving a distribution of your entire interest in the account on the day before your expatriation date. How to file 2009 taxes in 2013 See paragraphs (d), (e), and (f) of section 877A for more information. How to file 2009 taxes in 2013 Expatriation Tax Return If you expatriated or terminated your U. How to file 2009 taxes in 2013 S. How to file 2009 taxes in 2013 residency, or you are subject to the expatriation rules (as discussed earlier in the first paragraph under Expatriation After June 16, 2008), you must file Form 8854. How to file 2009 taxes in 2013 Attach it to Form 1040 or Form 1040NR if you are required to file either of those forms. How to file 2009 taxes in 2013 Deferral of payment of mark-to-market tax. How to file 2009 taxes in 2013   You can make an irrevocable election to defer payment of the mark-to-market tax imposed on the deemed sale of property. How to file 2009 taxes in 2013 If you make this election, the following rules apply. How to file 2009 taxes in 2013 You can make the election on a property-by-property basis. How to file 2009 taxes in 2013 The deferred tax attributable to a particular property is due on the return for the tax year in which you dispose of the property. How to file 2009 taxes in 2013 Interest is charged for the period the tax is deferred. How to file 2009 taxes in 2013 The due date for the payment of the deferred tax cannot be extended beyond the earlier of the following dates. How to file 2009 taxes in 2013 The due date of the return required for the year of death. How to file 2009 taxes in 2013 The time that the security provided for the property fails to be adequate. How to file 2009 taxes in 2013 See item (6) below. How to file 2009 taxes in 2013 You make the election on Form 8854. How to file 2009 taxes in 2013 You must provide adequate security (such as a bond). How to file 2009 taxes in 2013 You must make an irrevocable waiver of any right under any treaty of the United States which would preclude assessment or collection of the mark-to-market tax. How to file 2009 taxes in 2013   For more information about the deferral of payment, see the Instructions for Form 8854. How to file 2009 taxes in 2013 Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Historical Highlights of the IRS

1862 - President Lincoln signed into law a revenue-raising measure to help pay for Civil War expenses. The measure created a Commissioner of Internal Revenue and the nation's first income tax. It levied a 3 percent tax on incomes between $600 and $10,000 and a 5 percent tax on incomes of more than $10,000.

1867 - Heeding public opposition to the income tax, Congress cut the tax rate. From 1868 until 1913, 90 percent of all revenue came from taxes on liquor, beer, wine and tobacco.

1872 - Income tax repealed.

1894 - The Wilson Tariff Act revived the income tax and an income tax division within the Bureau of Internal Revenue was created.

1895 - Supreme Court ruled the new income tax unconstitutional on the grounds that it was a direct tax and not apportioned among the states on the basis of population. The income tax division was disbanded.

1909 - President Taft recommended Congress propose a constitutional amendment that would give the government the power to tax incomes without apportioning the burden among the states in line with population. Congress also levied a 1 percent tax on net corporate incomes of more than $5,000.

1913 - As the threat of war loomed, Wyoming became the 36th and last state needed to ratify the 16th Amendment. The amendment stated, "Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration." Later, Congress adopted a 1 percent tax on net personal income of more than $3,000 with a surtax of 6 percent on incomes of more than $500,000. It also repealed the 1909 corporate income tax. The first Form 1040 was introduced.

1918 - The Revenue Act of 1918 raised even greater sums for the World War I effort. It codified all existing tax laws and imposed a progressive income-tax rate structure of up to 77 percent.

1919 - The states ratified the 18th Amendment, barring the manufacture, sale or transport of intoxicating beverages. Congress passed the Volstead Act, which gave the Commissioner of Internal Revenue the primary responsibility for enforcement of Prohibition. Eleven years later, the Department of Justice assumed primary prohibition enforcement duties.

1931 - The IRS Intelligence Unit used an undercover agent to gather evidence against gangster Al Capone. Capone was convicted of tax evasion and sentenced to 11 years.

1933 - Prohibition repealed. IRS again assumed responsibility for alcohol taxation the following year and for administering the National Firearms Act. Later, tobacco tax enforcement was added.

1942 - The Revenue Act of 1942, hailed by President Roosevelt as "the greatest tax bill in American history," passed Congress. It increased taxes and the number of Americans subject to the income tax. It also created deductions for medical and investment expenses.

1943 - Congress passed the Current Tax Payment Act, which required employers to withhold taxes from employees' wages and remit them quarterly.

1944 - Congress passed the Individual Income Tax Act, which created the standard deductions on Form 1040.

1952 - President Truman proposed his Reorganization Plan No. 1, which replaced the patronage system at the IRS with a career civil service system. It also decentralized service to taxpayers and sought to restore public confidence in the agency.

1953 - President Eisenhower endorsed Truman's reorganization plan and changed the name of the agency from the Bureau of Internal Revenue to the Internal Revenue Service.

1954 - The filing deadline for individual tax returns changed from March 15 to April 15.

1961 - The Computer Age began at IRS with the dedication of the National Computer Center at Martinsburg, W.Va.

1965 - IRS instituted its first toll-free telephone site.

1972 - The Alcohol, Tobacco and Firearms Division separated from the IRS to become the independent Bureau of Alcohol, Tobacco and Firearms.

1974 - Congress passed the Employee Retirement and Income Security Act, which gave regulatory responsibilities for employee benefit plans to the IRS.

1986 - Limited electronic filing began. President Reagan signed the Tax Reform Act, the most significant piece of tax legislation in 30 years. It contained 300 provisions and took three years to implement. The Act codified the federal tax laws for the third time since the Revenue Act of 1918.

1992 - Taxpayers who owed money were allowed to file returns electronically.

1998 - Congress passed the IRS Restructuring and Reform Act, which expanded taxpayer rights and called for reorganizing the agency into four operating divisions aligned according to taxpayer needs.

2000 - IRS enacted reforms, ending its geographic-based structure and instituting four major operating divisions: Wage and Investment, Small Business/Self-Employed, Large and Mid-Size Business and Tax Exempt and Government Entities. It was the most sweeping change at the IRS since the 1953 reorganization.

2001 - IRS administered a mid-year tax refund program to provide advance payments of a tax rate reduction.

2003 - IRS administered another mid-year refund program, this time providing an advance payment of an increase in the Child Tax Credit. Electronic filing reached a new high - 52.9 million tax returns, more than 40 percent of all individual returns.

Page Last Reviewed or Updated: 12-Feb-2014

The How To File 2009 Taxes In 2013

How to file 2009 taxes in 2013 Part Three -   Quarterly Filing Information Table of Contents 12. How to file 2009 taxes in 2013   Filing Form 720Attachments to Form 720. How to file 2009 taxes in 2013 Conditions to allowance. How to file 2009 taxes in 2013 13. How to file 2009 taxes in 2013   Payment of TaxesHow To Make Deposits When To Make Deposits Amount of DepositsSafe Harbor Rule 14. How to file 2009 taxes in 2013   Penalties and Interest 15. How to file 2009 taxes in 2013   Examination and Appeal Procedures 16. How to file 2009 taxes in 2013   Rulings Program 17. How to file 2009 taxes in 2013   How To Get Tax Help 18. How to file 2009 taxes in 2013   Appendix Prev  Up  Next   Home   More Online Publications