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How To File Taxes For 2010

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How To File Taxes For 2010

How to file taxes for 2010 11. How to file taxes for 2010   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. How to file taxes for 2010 Free help with your tax return. How to file taxes for 2010   You can get free help preparing your return nationwide from IRS-certified volunteers. How to file taxes for 2010 The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. How to file taxes for 2010 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. How to file taxes for 2010 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. How to file taxes for 2010 In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. How to file taxes for 2010 To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. How to file taxes for 2010 gov, download the IRS2Go app, or call 1-800-906-9887. How to file taxes for 2010   As part of the TCE program, AARP offers the Tax-Aide counseling program. How to file taxes for 2010 To find the nearest AARP Tax-Aide site, visit AARP's website at www. How to file taxes for 2010 aarp. How to file taxes for 2010 org/money/taxaide or call 1-888-227-7669. How to file taxes for 2010 For more information on these programs, go to IRS. How to file taxes for 2010 gov and enter “VITA” in the search box. How to file taxes for 2010 Internet. How to file taxes for 2010    IRS. How to file taxes for 2010 gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. How to file taxes for 2010 Download the free IRS2Go app from the iTunes app store or from Google Play. How to file taxes for 2010 Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. How to file taxes for 2010 Check the status of your 2013 refund with the Where's My Refund? application on IRS. How to file taxes for 2010 gov or download the IRS2Go app and select the Refund Status option. How to file taxes for 2010 The IRS issues more than 9 out of 10 refunds in less than 21 days. How to file taxes for 2010 Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. How to file taxes for 2010 You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. How to file taxes for 2010 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. How to file taxes for 2010 Use the Interactive Tax Assistant (ITA) to research your tax questions. How to file taxes for 2010 No need to wait on the phone or stand in line. How to file taxes for 2010 The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. How to file taxes for 2010 When you reach the response screen, you can print the entire interview and the final response for your records. How to file taxes for 2010 New subject areas are added on a regular basis. How to file taxes for 2010  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. How to file taxes for 2010 gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. How to file taxes for 2010 You can use the IRS Tax Map, to search publications and instructions by topic or keyword. How to file taxes for 2010 The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. How to file taxes for 2010 When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. How to file taxes for 2010 Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. How to file taxes for 2010 You can also ask the IRS to mail a return or an account transcript to you. How to file taxes for 2010 Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. How to file taxes for 2010 gov or by calling 1-800-908-9946. How to file taxes for 2010 Tax return and tax account transcripts are generally available for the current year and the past three years. How to file taxes for 2010 Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. How to file taxes for 2010 Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. How to file taxes for 2010 If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. How to file taxes for 2010 Check the status of your amended return using Where's My Amended Return? Go to IRS. How to file taxes for 2010 gov and enter Where's My Amended Return? in the search box. How to file taxes for 2010 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. How to file taxes for 2010 It can take up to 3 weeks from the date you mailed it to show up in our system. How to file taxes for 2010 Make a payment using one of several safe and convenient electronic payment options available on IRS. How to file taxes for 2010 gov. How to file taxes for 2010 Select the Payment tab on the front page of IRS. How to file taxes for 2010 gov for more information. How to file taxes for 2010 Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. How to file taxes for 2010 Figure your income tax withholding with the IRS Withholding Calculator on IRS. How to file taxes for 2010 gov. How to file taxes for 2010 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. How to file taxes for 2010 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. How to file taxes for 2010 gov. How to file taxes for 2010 Request an Electronic Filing PIN by going to IRS. How to file taxes for 2010 gov and entering Electronic Filing PIN in the search box. How to file taxes for 2010 Download forms, instructions and publications, including accessible versions for people with disabilities. How to file taxes for 2010 Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. How to file taxes for 2010 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. How to file taxes for 2010 An employee can answer questions about your tax account or help you set up a payment plan. How to file taxes for 2010 Before you visit, check the Office Locator on IRS. How to file taxes for 2010 gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. How to file taxes for 2010 If you have a special need, such as a disability, you can request an appointment. How to file taxes for 2010 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. How to file taxes for 2010 Apply for an Employer Identification Number (EIN). How to file taxes for 2010 Go to IRS. How to file taxes for 2010 gov and enter Apply for an EIN in the search box. How to file taxes for 2010 Read the Internal Revenue Code, regulations, or other official guidance. How to file taxes for 2010 Read Internal Revenue Bulletins. How to file taxes for 2010 Sign up to receive local and national tax news and more by email. How to file taxes for 2010 Just click on “subscriptions” above the search box on IRS. How to file taxes for 2010 gov and choose from a variety of options. How to file taxes for 2010 Phone. How to file taxes for 2010    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. How to file taxes for 2010 Download the free IRS2Go app from the iTunes app store or from Google Play. How to file taxes for 2010 Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. How to file taxes for 2010 gov, or download the IRS2Go app. How to file taxes for 2010 Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. How to file taxes for 2010 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. How to file taxes for 2010 Most VITA and TCE sites offer free electronic filing. How to file taxes for 2010 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. How to file taxes for 2010 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. How to file taxes for 2010 Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. How to file taxes for 2010 If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. How to file taxes for 2010 The IRS issues more than 9 out of 10 refunds in less than 21 days. How to file taxes for 2010 Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. How to file taxes for 2010 Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. How to file taxes for 2010 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. How to file taxes for 2010 Note, the above information is for our automated hotline. How to file taxes for 2010 Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. How to file taxes for 2010 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. How to file taxes for 2010 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. How to file taxes for 2010 It can take up to 3 weeks from the date you mailed it to show up in our system. How to file taxes for 2010 Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). How to file taxes for 2010 You should receive your order within 10 business days. How to file taxes for 2010 Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. How to file taxes for 2010 If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. How to file taxes for 2010 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. How to file taxes for 2010 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. How to file taxes for 2010 These individuals can also contact the IRS through relay services such as the Federal Relay Service. How to file taxes for 2010 Walk-in. How to file taxes for 2010   You can find a selection of forms, publications and services — in-person. How to file taxes for 2010 Products. How to file taxes for 2010 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. How to file taxes for 2010 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. How to file taxes for 2010 Services. How to file taxes for 2010 You can walk in to your local TAC for face-to-face tax help. How to file taxes for 2010 An employee can answer questions about your tax account or help you set up a payment plan. How to file taxes for 2010 Before visiting, use the Office Locator tool on IRS. How to file taxes for 2010 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. How to file taxes for 2010 Mail. How to file taxes for 2010   You can send your order for forms, instructions, and publications to the address below. How to file taxes for 2010 You should receive a response within 10 business days after your request is received. How to file taxes for 2010 Internal Revenue Service 1201 N. How to file taxes for 2010 Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. How to file taxes for 2010 The Taxpayer Advocate Service (TAS) is your voice at the IRS. How to file taxes for 2010 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. How to file taxes for 2010   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. How to file taxes for 2010 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. How to file taxes for 2010 You face (or your business is facing) an immediate threat of adverse action. How to file taxes for 2010 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. How to file taxes for 2010   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. How to file taxes for 2010 Here's why we can help: TAS is an independent organization within the IRS. How to file taxes for 2010 Our advocates know how to work with the IRS. How to file taxes for 2010 Our services are free and tailored to meet your needs. How to file taxes for 2010 We have offices in every state, the District of Columbia, and Puerto Rico. How to file taxes for 2010   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. How to file taxes for 2010   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. How to file taxes for 2010 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. How to file taxes for 2010 Low Income Taxpayer Clinics. How to file taxes for 2010   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. How to file taxes for 2010 Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. How to file taxes for 2010 Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. How to file taxes for 2010 Prev  Up  Next   Home   More Online Publications
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The How To File Taxes For 2010

How to file taxes for 2010 2. How to file taxes for 2010   Tax Shelters and Other Reportable Transactions Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Abusive Tax SheltersRules To Curb Abusive Tax Shelters Investor Reporting Penalties Whether To Invest Introduction Investments that yield tax benefits are sometimes called “tax shelters. How to file taxes for 2010 ” In some cases, Congress has concluded that the loss of revenue is an acceptable side effect of special tax provisions designed to encourage taxpayers to make certain types of investments. How to file taxes for 2010 In many cases, however, losses from tax shelters produce little or no benefit to society, or the tax benefits are exaggerated beyond those intended. How to file taxes for 2010 Those cases are called “abusive tax shelters. How to file taxes for 2010 ” An investment that is considered a tax shelter is subject to restrictions, including the requirement that it be disclosed, as discussed later. How to file taxes for 2010 Topics - This chapter discusses: Abusive Tax Shelters , Rules To Curb Abusive Tax Shelters , Investor Reporting , Penalties , and Whether To Invest . How to file taxes for 2010 Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 556 Examination of Returns, Appeal Rights, and Claims for Refund 561 Determining the Value of Donated Property 925 Passive Activity and At-Risk Rules Form (and Instructions) 8275 Disclosure Statement 8275-R Regulation Disclosure Statement 8283 Noncash Charitable Contributions 8886 Reportable Transaction Disclosure Statement See chapter 5, How To Get Tax Help , for information about getting these publications and forms. How to file taxes for 2010 Abusive Tax Shelters Abusive tax shelters are marketing schemes involving artificial transactions with little or no economic reality. How to file taxes for 2010 They often make use of unrealistic allocations, inflated appraisals, losses in connection with nonrecourse loans, mismatching of income and deductions, financing techniques that do not conform to standard commercial business practices, or mischaracterization of the substance of the transaction. How to file taxes for 2010 Despite appearances to the contrary, the taxpayer generally risks little. How to file taxes for 2010 Abusive tax shelters commonly involve package deals designed from the start to generate losses, deductions, or credits that will be far more than present or future investment. How to file taxes for 2010 Or, they may promise investors from the start that future inflated appraisals will enable them, for example, to reap charitable contribution deductions based on those appraisals. How to file taxes for 2010 (But see the appraisal requirements discussed under Rules To Curb Abusive Tax Shelters , later. How to file taxes for 2010 ) They are commonly marketed in terms of the ratio of tax deductions allegedly available to each dollar invested. How to file taxes for 2010 This ratio (or “write-off”) is frequently said to be several times greater than one-to-one. How to file taxes for 2010 Because there are many abusive tax shelters, it is not possible to list all the factors you should consider in determining whether an offering is an abusive tax shelter. How to file taxes for 2010 However, you should ask the following questions, which might provide a clue to the abusive nature of the plan. How to file taxes for 2010 Do the tax benefits far outweigh the economic benefits? Is this a transaction you would seriously consider, apart from the tax benefits, if you hoped to make a profit? Do shelter assets really exist and, if so, are they insured for less than their purchase price? Is there a nontax justification for the way profits and losses are allocated to partners? Do the facts and supporting documents make economic sense? In that connection, are there sales and resales of the tax shelter property at ever increasing prices? Does the investment plan involve a gimmick, device, or sham to hide the economic reality of the transaction? Does the promoter offer to backdate documents after the close of the year? Are you instructed to backdate checks covering your investment? Is your debt a real debt or are you assured by the promoter that you will never have to pay it? Does this transaction involve laundering United States source income through foreign corporations incorporated in a tax haven and owned by United States shareholders? Rules To Curb Abusive Tax Shelters Congress has enacted a series of income tax laws designed to halt the growth of abusive tax shelters. How to file taxes for 2010 These provisions include the following. How to file taxes for 2010 Disclosure of reportable transactions. How to file taxes for 2010   You must disclose information for each reportable transaction in which you participate. How to file taxes for 2010 See Reportable Transaction Disclosure Statement , later. How to file taxes for 2010   Material advisors with respect to any reportable transaction must disclose information about the transaction on Form 8918, Material Advisor Disclosure Statement. How to file taxes for 2010 To determine whether you are a material advisor to a transaction, see the Instructions for Form 8918. How to file taxes for 2010   Material advisors will receive a reportable transaction number for the disclosed reportable transaction. How to file taxes for 2010 They must provide this number to all persons to whom they acted as a material advisor. How to file taxes for 2010 They must provide the number at the time the transaction is entered into. How to file taxes for 2010 If they do not have the number at that time, they must provide it within 60 days from the date the number is mailed to them. How to file taxes for 2010 For information on penalties for failure to disclose and failure to maintain lists, see Internal Revenue Code sections 6707, 6707A, and 6708. How to file taxes for 2010 Requirement to maintain list. How to file taxes for 2010   Material advisors must maintain a list of persons to whom they provide material aid, assistance, or advice on any reportable transaction. How to file taxes for 2010 The list must be available for inspection by the IRS, and the information required to be included on the list generally must be kept for 7 years. How to file taxes for 2010 See Regulations section 301. How to file taxes for 2010 6112-1 for more information (including what information is required to be included on the list). How to file taxes for 2010 Confidentiality privilege. How to file taxes for 2010   The confidentiality privilege between you and a federally authorized tax practitioner does not apply to written communications made after October 21, 2004, regarding the promotion of your direct or indirect participation in any tax shelter. How to file taxes for 2010 Appraisal requirement for donated property. How to file taxes for 2010   If you claim a deduction of more than $5,000 for an item or group of similar items of donated property, you generally must get a qualified appraisal from a qualified appraiser and complete and attach section B of Form 8283 to your return. How to file taxes for 2010 If you claim a deduction of more than $500,000 for the donated property, you generally must attach the qualified appraisal to your return. How to file taxes for 2010 If you file electronically, see Form 8453, U. How to file taxes for 2010 S. How to file taxes for 2010 Individual Income Tax Transmittal for an IRS e-file Return, and its instructions. How to file taxes for 2010 For more information about appraisals, including exceptions, see Publication 561. How to file taxes for 2010 Passive activity loss and credit limits. How to file taxes for 2010   The passive activity loss and credit rules limit the amount of losses and credits that can be claimed from passive activities and limit the amount that can offset nonpassive income, such as certain portfolio income from investments. How to file taxes for 2010 For more detailed information about determining and reporting income, losses, and credits from passive activities, see Publication 925. How to file taxes for 2010 Interest on penalties. How to file taxes for 2010   If you are assessed an accuracy-related or civil fraud penalty (as discussed under Penalties , later), interest will be imposed on the amount of the penalty from the due date of the return (including any extensions) to the date you pay the penalty. How to file taxes for 2010 Accounting method restriction. How to file taxes for 2010   Tax shelters generally cannot use the cash method of accounting. How to file taxes for 2010 Uniform capitalization rules. How to file taxes for 2010   The uniform capitalization rules generally apply to producing property or acquiring it for resale. How to file taxes for 2010 Under those rules, the direct cost and part of the indirect cost of the property must be capitalized or included in inventory. How to file taxes for 2010 For more information, see Publication 538. How to file taxes for 2010 Denial of deduction for interest on an underpayment due to a reportable transaction. How to file taxes for 2010   You cannot deduct any interest you paid or accrued on any part of an underpayment of tax due to an understatement arising from a reportable transaction (discussed later) if the relevant facts affecting the tax treatment of the item are not adequately disclosed. How to file taxes for 2010 This rule applies to reportable transactions entered into in tax years beginning after October 22, 2004. How to file taxes for 2010 Authority for Disallowance of Tax Benefits The IRS has published guidance concluding that the claimed tax benefits of various abusive tax shelters should be disallowed. How to file taxes for 2010 The guidance is the conclusion of the IRS on how the law is applied to a particular set of facts. How to file taxes for 2010 Guidance is published in the Internal Revenue Bulletin for taxpayers' information and also for use by IRS officials. How to file taxes for 2010 So, if your return is examined and an abusive tax shelter is identified and challenged, published guidance dealing with that type of shelter, which disallows certain claimed tax shelter benefits, could serve as the basis for the examining official's challenge of the tax benefits you claimed. How to file taxes for 2010 In such a case, the examiner will not compromise even if you or your representative believes you have authority for the positions taken on your tax return. How to file taxes for 2010 The courts have generally been unsympathetic to taxpayers involved in abusive tax shelter schemes and have ruled in favor of the IRS in the majority of the cases in which these shelters have been challenged. How to file taxes for 2010 Investor Reporting You may be required to file a reportable transaction disclosure statement. How to file taxes for 2010 Reportable Transaction Disclosure Statement Use Form 8886 to disclose information for each reportable transaction (discussed later) in which you participated. How to file taxes for 2010 Generally, you must attach Form 8886 to your return for each tax year in which you participated in the transaction. How to file taxes for 2010 Under certain circumstances, a transaction must be disclosed within 90 days of the transaction being identified as a listed transaction or a transaction of interest (discussed later). How to file taxes for 2010 In addition, for the first year Form 8886 is attached to your return, you must send a copy of the form to: Internal Revenue Service OTSA Mail Stop 4915 1973 North Rulon White Blvd. How to file taxes for 2010  Ogden, UT 84404 If you file your return electronically, the copy sent to OTSA must show exactly the same information, word for word, provided with the electronically filed return and it must be provided on the official IRS Form 8886 or an exact copy of the form. How to file taxes for 2010 If you use a computer-generated or substitute Form 8886, it must be an exact copy of the official IRS form. How to file taxes for 2010 If you fail to file Form 8886 as required or fail to include any required information on the form, you may have to pay a penalty. How to file taxes for 2010 See Penalty for failure to disclose a reportable transaction , later under Penalties. How to file taxes for 2010 The following discussion briefly describes reportable transactions. How to file taxes for 2010 For more details, see the Instructions for Form 8886. How to file taxes for 2010 Reportable transaction. How to file taxes for 2010   A reportable transaction is any of the following. How to file taxes for 2010 A listed transaction. How to file taxes for 2010 A confidential transaction. How to file taxes for 2010 A transaction with contractual protection. How to file taxes for 2010 A loss transaction. How to file taxes for 2010 A transaction of interest entered into after November 1, 2006. How to file taxes for 2010 Note. How to file taxes for 2010 Transactions with a brief asset holding period were removed from the definition of reportable transaction for transactions entered into after August 2, 2007. How to file taxes for 2010 Listed transaction. How to file taxes for 2010   A listed transaction is the same as, or substantially similar to, one of the types of transactions the IRS has determined to be a tax-avoidance transaction. How to file taxes for 2010 These transactions have been identified in notices, regulations, and other published guidance issued by the IRS. How to file taxes for 2010 For a list of existing guidance, see Notice 2009-59 in Internal Revenue Bulletin 2009-31, available at www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/irb/2009-31_IRB/ar07. How to file taxes for 2010 html. How to file taxes for 2010 Confidential transaction. How to file taxes for 2010   A confidential transaction is offered to you under conditions of confidentiality and for which you have paid an advisor a minimum fee. How to file taxes for 2010 A transaction is offered under conditions of confidentiality if the advisor who is paid the fee places a limit on your disclosure of the tax treatment or tax structure of the transaction and the limit protects the confidentiality of the advisor's tax strategies. How to file taxes for 2010 The transaction is treated as confidential even if the conditions of confidentiality are not legally binding on you. How to file taxes for 2010 Transaction with contractual protection. How to file taxes for 2010   Generally, a transaction with contractual protection is one in which you or a related party has the right to a full or partial refund of fees if all or part of the intended tax consequences of the transaction are not sustained, or a transaction for which the fees are contingent on your realizing the tax benefits from the transaction. How to file taxes for 2010 For information on exceptions, see Revenue Procedure 2007-20 in Internal Revenue Bulletin 2007-7, available at www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/irb/2007-07_IRB/ar15. How to file taxes for 2010 html. How to file taxes for 2010 Loss transaction. How to file taxes for 2010   For individuals, a loss transaction is one that results in a deductible loss if the gross amount of the loss is at least $2 million in a single tax year or $4 million in any combination of tax years. How to file taxes for 2010 A loss from a foreign currency transaction under Internal Revenue Code section 988 is a loss transaction if the gross amount of the loss is at least $50,000 in a single tax year, whether or not the loss flows through from an S corporation or partnership. How to file taxes for 2010   Certain losses (such as losses from casualties, thefts, and condemnations) are excepted from this category and do not have to be reported on Form 8886. How to file taxes for 2010 For information on other exceptions, see Revenue Procedure 2004-66 in Internal Revenue Bulletin 2004-50, as modified and superseded by Revenue Procedure 2013-11, (or future published guidance) available at www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/irb/2004-50_IRB/ar11. How to file taxes for 2010 html. How to file taxes for 2010 Transaction of interest. How to file taxes for 2010   A transaction of interest is a transaction entered into after November 1, 2006, that is the same as, or substantially similar to, one of the types of transactions that the IRS has identified by notice, regulation, or other form of published guidance as a transaction of interest. How to file taxes for 2010 The IRS has identified the following transactions of interest. How to file taxes for 2010 “Toggling” grantor trusts as described in Notice 2007-73, 2007-36 I. How to file taxes for 2010 R. How to file taxes for 2010 B. How to file taxes for 2010 545, available at www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/irb/2007-36_IRB/ar20. How to file taxes for 2010 html. How to file taxes for 2010 Certain transactions involving contributions of a successor member interest in a limited liability company as described in Notice 2007-72, 2007-36 I. How to file taxes for 2010 R. How to file taxes for 2010 B. How to file taxes for 2010 544, available at www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/irb/2007-36_IRB/ar19. How to file taxes for 2010 html. How to file taxes for 2010 Certain transactions involving the sale or other disposition of all interests in a charitable remainder trust and claiming little or no taxable gain as described in Notice 2008-99, 2008-47 I. How to file taxes for 2010 R. How to file taxes for 2010 B. How to file taxes for 2010 1194, available at www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/irb/2008-47_IRB/ar11. How to file taxes for 2010 html. How to file taxes for 2010 Certain transactions involving a U. How to file taxes for 2010 S. How to file taxes for 2010 taxpayer owning controlled foreign corporations (CFCs) that hold stock of a lower-tier CFC through a domestic partnership to avoid reporting income as described in Notice 2009-7, 2009-3 I. How to file taxes for 2010 R. How to file taxes for 2010 B. How to file taxes for 2010 312, available at www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/irb/2009-03_IRB/ar10. How to file taxes for 2010 html. How to file taxes for 2010   For updates to this list, go to www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/Businesses/Corporations/Abusive-Tax-Shelters-and-Transactions. How to file taxes for 2010 Penalties Investing in an abusive tax shelter may lead to substantial expenses. How to file taxes for 2010 First, the promoter generally charges a substantial fee. How to file taxes for 2010 If your return is examined by the IRS and a tax deficiency is determined, you will be faced with payment of more tax, interest on the underpayment, possibly a 20%, 30%, or even 40% accuracy-related penalty, or a 75% civil fraud penalty. How to file taxes for 2010 You may also be subject to the penalty for failure to pay tax. How to file taxes for 2010 These penalties are explained in the following paragraphs. How to file taxes for 2010 Accuracy-related penalties. How to file taxes for 2010   An accuracy-related penalty of 20% can be imposed for underpayments of tax due to: Negligence or disregard of rules or regulations, Substantial understatement of tax, Substantial valuation misstatement (increased to 40% for gross valuation misstatement), Transaction lacking economic substance (increased to 40% for undisclosed transaction lacking economic substance), or Undisclosed foreign financial asset understatement (40% in all cases). How to file taxes for 2010 Except for a transaction lacking economic substance, this penalty will not be imposed if you can show you had reasonable cause for any understatement of tax and that you acted in good faith. How to file taxes for 2010 Your failure to disclose a reportable transaction is a strong indication that you failed to act in good faith. How to file taxes for 2010   If you are charged an accuracy-related penalty, interest will be imposed on the amount of the penalty from the due date of the return (including extensions) to the date you pay the penalty. How to file taxes for 2010   The 20% penalties do not apply to any underpayment attributable to a reportable transaction understatement subject to an accuracy-related penalty (discussed later). How to file taxes for 2010 Negligence or disregard of rules or regulations. How to file taxes for 2010   The penalty for negligence or disregard of rules or regulations is imposed only on the part of the underpayment due to negligence or disregard of rules or regulations. How to file taxes for 2010 The penalty will not be charged if you can show you had reasonable cause for understating your tax and that you acted in good faith. How to file taxes for 2010    Negligence includes any failure to make a reasonable attempt to comply with the provisions of the Internal Revenue Code. How to file taxes for 2010 It also includes any failure to keep adequate books and records. How to file taxes for 2010 A return position that has a reasonable basis is not negligence. How to file taxes for 2010   Disregard includes any careless, reckless, or intentional disregard of rules or regulations. How to file taxes for 2010   The penalty for disregard of rules and regulations can be avoided if all the following are true. How to file taxes for 2010 You keep adequate books and records. How to file taxes for 2010 You have a reasonable basis for your position on the tax issue. How to file taxes for 2010 You make an adequate disclosure of your position. How to file taxes for 2010 Use Form 8275 to make your disclosure and attach it to your return. How to file taxes for 2010 To disclose a position contrary to a regulation, use Form 8275-R. How to file taxes for 2010 Use Form 8886 to disclose a reportable transaction (discussed earlier). How to file taxes for 2010 Substantial understatement of tax. How to file taxes for 2010   An understatement is considered to be substantial if it is more than the greater of: 10% of the tax required to be shown on the return, or $5,000. How to file taxes for 2010 An “understatement” is the amount of tax required to be shown on your return for a tax year minus the amount of tax shown on the return, reduced by any rebates. How to file taxes for 2010 The term “rebate” generally means a decrease in the tax shown on your original return as the result of your filing an amended return or claim for refund. How to file taxes for 2010   For items other than tax shelters, you can file Form 8275 or Form 8275-R to disclose items that could cause a substantial understatement of income tax. How to file taxes for 2010 In that way, you can avoid the substantial understatement penalty if you have a reasonable basis for your position on the tax issue. How to file taxes for 2010 Disclosure of the tax shelter item on a tax return does not reduce the amount of the understatement. How to file taxes for 2010   Also, the understatement penalty will not be imposed if you can show there was reasonable cause for the underpayment caused by the understatement and that you acted in good faith. How to file taxes for 2010 An important factor in establishing reasonable cause and good faith will be the extent of your effort to determine your proper tax liability under the law. How to file taxes for 2010 Substantial valuation misstatement. How to file taxes for 2010   In general, you are liable for a 20% penalty for a substantial valuation misstatement if all the following are true. How to file taxes for 2010 The value or adjusted basis of any property claimed on the return is 150% or more of the correct amount. How to file taxes for 2010 You underpaid your tax by more than $5,000 because of the misstatement. How to file taxes for 2010 You cannot establish that you had reasonable cause for the underpayment and that you acted in good faith. How to file taxes for 2010   You may be assessed a penalty of 40% for a gross valuation misstatement. How to file taxes for 2010 If you misstate the value or the adjusted basis of property by 200% or more of the amount determined to be correct, you will be assessed a penalty of 40%, instead of 20%, of the amount you underpaid because of the gross valuation misstatement. How to file taxes for 2010 The penalty rate is also 40% if the property's correct value or adjusted basis is zero. How to file taxes for 2010 Transaction lacking economic substance. How to file taxes for 2010   The economic substance doctrine only applies to an individual that entered into a transaction in connection with a trade or business or an activity engaged in for the production of income. How to file taxes for 2010 For transactions entered into after March 30, 2010, a transaction has economic substance for you as an individual taxpayer only if: The transaction changes your economic position in a meaningful way (apart from federal income tax effects), or You have a substantial purpose (apart from federal income tax effects) for entering into the transaction. How to file taxes for 2010   For purposes of determining whether economic substance exists, a transaction's profit potential will only be taken into account if the present value of the reasonably expected pre-tax profit from the transaction is substantial compared to the present value of the expected net tax benefits that would be allowed if the transaction were respected. How to file taxes for 2010   If any part of your underpayment is due to any disallowance of claimed tax benefits by reason of a transaction lacking economic substance or failing to meet the requirements of any similar rule of law, that part of your underpayment will be subject to the 20% accuracy-related penalty even if you had a reasonable cause and acted in good faith concerning that part. How to file taxes for 2010   Additionally, the penalty increases to 40% if you do not adequately disclose on your return or in a statement attached to your return the relevant facts affecting the tax treatment of a transaction that lacks economic substance. How to file taxes for 2010 Relevant facts include any facts affecting the tax treatment of the transaction. How to file taxes for 2010    Any excessive amount of an erroneous claim for an income tax refund or credit (other than a refund or credit related to the earned income credit) that results from a transaction found to be lacking economic substance will not be treated as having a reasonable basis and could be subject to a 20% penalty. How to file taxes for 2010 Undisclosed foreign financial asset understatement. How to file taxes for 2010   For tax years beginning after March 18, 2010, you may be liable for a 40% penalty for an understatement of your tax liability due to an undisclosed foreign financial asset. How to file taxes for 2010 An undisclosed foreign financial asset is any asset for which an information return, required to be provided under Internal Revenue Code section 6038, 6038B, 6038D, 6046A, or 6048 for any taxable year, is not provided. How to file taxes for 2010 The penalty applies to any part of an underpayment related to the following undisclosed foreign financial assets. How to file taxes for 2010 Any foreign business you control, reportable on Form 5471, Information Return of U. How to file taxes for 2010 S. How to file taxes for 2010 Persons With Respect To Certain Foreign Corporations, or Form 8865, Return of U. How to file taxes for 2010 S. How to file taxes for 2010 Persons With Respect to Certain Foreign Partnerships. How to file taxes for 2010 Certain transfers of property to a foreign corporation or partnership, reportable on Form 926, Return by a U. How to file taxes for 2010 S. How to file taxes for 2010 Transferor of Property to a Foreign Corporation, or certain distributions to a foreign person, reportable on Form 8865. How to file taxes for 2010 Your ownership interest in certain foreign financial assets, temporarily reportable on Form 8275 or 8275-R. How to file taxes for 2010    Instead of, or in addition to, Form 8275 or 8275-R, you may have to file Form 8938, Statement of Specified Foreign Financial Assets, with your tax return. How to file taxes for 2010 See the Instructions for Form 8938 for details. How to file taxes for 2010    Your acquisition, disposition, or substantial change in ownership interest in a foreign partnership, reportable on Form 8865. How to file taxes for 2010 Creation or transfer of money or property to certain foreign trusts, reportable on Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. How to file taxes for 2010 Penalty for incorrect appraisals. How to file taxes for 2010   The person who prepares an appraisal of the value of property may have to pay a penalty if: He or she knows, or reasonably should have known, that the appraisal would be used in connection with a return or claim for refund; and The claimed value of the property on a return or claim for refund based on that appraisal results in a substantial valuation misstatement or a gross valuation misstatement as discussed earlier. How to file taxes for 2010 For details on the penalty amount and exceptions, see Publication 561. How to file taxes for 2010 Penalty for failure to disclose a reportable transaction. How to file taxes for 2010   If you fail to include any required information regarding a reportable transaction (discussed earlier) on a return or statement, you may have to pay a penalty of 75% of the decrease in tax shown on your return as a result of such transaction (or that would have resulted if the transaction were respected for federal tax purposes). How to file taxes for 2010 For an individual, the minimum penalty is $5,000 and the maximum is $10,000 (or $100,000 for a listed transaction). How to file taxes for 2010 This penalty is in addition to any other penalty that may be imposed. How to file taxes for 2010   The IRS may rescind or abate the penalty for failing to disclose a reportable transaction under certain limited circumstances but cannot rescind the penalty for failing to disclose a listed transaction. How to file taxes for 2010 For information on rescission, see Revenue Procedure 2007-21 in Internal Revenue Bulletin 2007-9 available at www. How to file taxes for 2010 irs. How to file taxes for 2010 gov/irb/2007-09_IRB/ar12. How to file taxes for 2010 html. How to file taxes for 2010 Accuracy-related penalty for a reportable transaction understatement. How to file taxes for 2010   If you have a reportable transaction understatement, you may have to pay a penalty equal to 20% of the amount of that understatement. How to file taxes for 2010 This applies to any item due to a listed transaction or other reportable transaction with a significant purpose of avoiding or evading federal income tax. How to file taxes for 2010 The penalty is 30% rather than 20% for the part of any reportable transaction understatement if the transaction was not properly disclosed. How to file taxes for 2010 You may not have to pay the 20% penalty if you meet the strengthened reasonable cause and good faith exception. How to file taxes for 2010 The reasonable cause and good faith exception does not apply to any part of a reportable transaction understatement attributable to one or more transactions that lack economic substance. How to file taxes for 2010   This penalty does not apply to the part of an understatement on which the fraud penalty, gross valuation misstatement penalty, or penalty for nondisclosure of noneconomic substance transactions is imposed. How to file taxes for 2010 Civil fraud penalty. How to file taxes for 2010   If any underpayment of tax on your return is due to fraud, a penalty of 75% of the underpayment will be added to your tax. How to file taxes for 2010 Joint return. How to file taxes for 2010   The fraud penalty on a joint return applies to a spouse only if some part of the underpayment is due to the fraud of that spouse. How to file taxes for 2010 Failure to pay tax. How to file taxes for 2010   If a deficiency is assessed and is not paid within 10 days of the demand for payment, an investor can be penalized with up to a 25% addition to tax if the failure to pay continues. How to file taxes for 2010 Whether To Invest In light of the adverse tax consequences and the substantial amount of penalties and interest that will result if the claimed tax benefits are disallowed, you should consider tax shelter investments carefully and seek competent legal and financial advice. How to file taxes for 2010 Prev  Up  Next   Home   More Online Publications