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Income Tax Return Preparation

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Income Tax Return Preparation

Income tax return preparation Index A Accuracy of deposits rule, Accuracy of Deposits Rule Additional Medicare Tax, Reminders, Additional Medicare Tax withholding. Income tax return preparation , Additional Medicare Tax withholding adjustments. Income tax return preparation Adjustments, 13. Income tax return preparation Reporting Adjustments to Form 941 or Form 944 Aliens, nonresident, Withholding income taxes on the wages of nonresident alien employees. Income tax return preparation , Withholding of social security and Medicare taxes on nonresident aliens. Income tax return preparation Allocated tips, Allocated tips. Income tax return preparation Archer MSAs, Health Savings Accounts and medical savings accounts. Income tax return preparation Assistance (see Tax help) B Backup withholding, Nonpayroll Income Tax Withholding Business expenses, employee, Employee business expense reimbursements. Income tax return preparation C Calendar, Calendar Certain foreign persons treated as American employers, Foreign persons treated as American employers. Income tax return preparation Change of business address or responsible party, Change of Business Address or Responsible Party COBRA premium assistance credit, COBRA premium assistance credit. Income tax return preparation Correcting employment taxes, Correcting employment taxes. Income tax return preparation Correcting errors, (prior period adjustments) Form 941, Prior Period Adjustments D Delivery services, private, Private Delivery Services Depositing taxes Penalties, Deposit Penalties Rules, 11. Income tax return preparation Depositing Taxes Differential wage payments, Differential wage payments. Income tax return preparation E E-file, Electronic filing by reporting agents. Income tax return preparation Election worker, State and local government employers. Income tax return preparation Electronic, Electronic deposit requirement. Income tax return preparation Electronic deposit requirement, Electronic deposit requirement. Income tax return preparation Electronic Federal Tax Payment System (EFTPS), Electronic deposit requirement. Income tax return preparation Electronic filing, Electronic Filing and Payment, Electronic filing by reporting agents. Income tax return preparation Eligibility for employment, Hiring New Employees Employees defined, Employee status under common law. Income tax return preparation Employer identification number (EIN), 1. Income tax return preparation Employer Identification Number (EIN) Employer responsibilities, Paying Wages, Pensions, or Annuities F Family employees, 3. Income tax return preparation Family Employees Final return, Final return. Income tax return preparation Form 944, 12. Income tax return preparation Filing Form 941 or Form 944 Fringe benefits, Fringe benefits. Income tax return preparation FUTA tax, 14. Income tax return preparation Federal Unemployment (FUTA) Tax G Government employers, Federal Government employers. Income tax return preparation H Health insurance plans, Health insurance plans. Income tax return preparation Health Savings Accounts (HSAs), Health Savings Accounts and medical savings accounts. Income tax return preparation Hiring new employees, Hiring New Employees Household employees, Exceptions. Income tax return preparation I Income tax withholding, Income Tax Withholding, 16. Income tax return preparation How To Use the Income Tax Withholding Tables Information returns, Information Returns International social security agreements, International social security agreements. Income tax return preparation L Long-term care insurance, Health insurance plans. Income tax return preparation Lookback period, When To Deposit M Meals and lodging, Meals and lodging. Income tax return preparation Medical care, Medical care reimbursements. Income tax return preparation Medical savings accounts, Health Savings Accounts and medical savings accounts. Income tax return preparation Medicare tax, Social Security and Medicare Taxes Mileage, Per diem or other fixed allowance. Income tax return preparation Monthly deposit schedule, Monthly Deposit Schedule Moving expenses, Moving expenses. Income tax return preparation N New employees, Hiring New Employees Noncash wages, Wages not paid in money. Income tax return preparation Nonemployee compensation, Nonpayroll Income Tax Withholding P Part-time workers, Part-Time Workers Payroll period, 8. Income tax return preparation Payroll Period Penalties, Deposit Penalties, Penalties. Income tax return preparation Private delivery services, Private Delivery Services Publications (see Tax help) R Reconciling Forms W-2 and Forms 941 or 944, Reconciling Forms W-2, W-3, and 941 or 944. Income tax return preparation Recordkeeping, Recordkeeping Reimbursements, Accountable plan. Income tax return preparation , Nonaccountable plan. Income tax return preparation , Per diem or other fixed allowance. Income tax return preparation Repayments, wages, Wage Repayments S Seasonal employers, Exceptions. Income tax return preparation Semiweekly deposit schedule, Semiweekly Deposit Schedule Sick pay, Sick pay. Income tax return preparation Social security and Medicare taxes, Social Security and Medicare Taxes Social security number, employee, 4. Income tax return preparation Employee's Social Security Number (SSN) Spouse, Business Owned and Operated by Spouses Standard mileage rate, Per diem or other fixed allowance. Income tax return preparation Statutory employees, Employee status under common law. Income tax return preparation Statutory nonemployees, Statutory employees. Income tax return preparation Successor employer, Successor employer. Income tax return preparation , Successor employer. Income tax return preparation Supplemental wages, 7. 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Income tax return preparation Wages and Other Compensation Wages not paid in money, Wages not paid in money. Income tax return preparation Withholding Backup, Nonpayroll Income Tax Withholding Certificate, Using Form W-4 to figure withholding. Income tax return preparation Exemption, Exemption from federal income tax withholding. Income tax return preparation Fringe benefits, Withholding on fringe benefits. Income tax return preparation Income tax, Income Tax Withholding Levies, Amounts exempt from levy on wages, salary, and other income. Income tax return preparation Nonresident aliens, Withholding of social security and Medicare taxes on nonresident aliens. Income tax return preparation Pensions and annuities, Nonpayroll Income Tax Withholding Percentage method, Percentage Method Social security and Medicare taxes, Social Security and Medicare Taxes Table instructions, 16. Income tax return preparation How To Use the Income Tax Withholding Tables Tips, Tips treated as supplemental wages. Income tax return preparation Wage bracket method, Wage Bracket Method Z Zero wage return, Paying Wages, Pensions, or Annuities Prev  Up     Home   More Online Publications
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IRS Criminal Investigation Combats Identity Theft Refund Fraud

IRS YouTube Videos
ID Theft: IRS Efforts on Identity Theft

FS-2014-3, January 2014

The Internal Revenue Service (IRS) has seen a significant increase in refund fraud that involves identity thieves who file false claims for refunds by stealing and using someone's Social Security number. The investigative work done by Criminal Investigation (CI) is a major component of the IRS’s efforts to combat tax-related identity theft. 

Statistical Data 

In Fiscal Year (FY) 2013, the IRS initiated approximately 1,492 identity theft related criminal investigations, an increase of 66 percent over investigations initiated in FY 2012. Direct investigative time applied to identity theft related investigations has increased 216 percent over the last two years. Prosecution recommendations, indictments, and those convicted and sentenced for identity theft violations have increased dramatically since FY 2011. Sentences handed down for convictions relating to identity theft have been significant, ranging from two months to 317 months.  
 

 

FY2013

FY 2012

  FY 2011

 Investigations Initiated

1492

898

276

 Prosecution Recommendations

1257

544

218

 Indictments/Informations

1050

494

165

 Sentenced

438

223

80


Enforcement Efforts 

Criminal Investigation is committed to investigating and prosecuting identity thieves who attempt to defraud the federal government by filing fraudulent refund claims using another person’s identifying information.

The IRS continues to seek out and identify additional tools and methods to combat the proliferation of tax-related identity theft.  FY 2013 efforts include: 

Identity Theft Enforcement Sweeps - In January 2013, Criminal Investigation conducted a coordinated identity theft enforcement sweep in collaboration with DOJ-Tax and United States Attorney’s Offices throughout the country.  This nationwide effort resulted in 734 enforcement actions related to identity theft and refund fraud and involved 389 individuals, 109 arrests, 48 search warrants, and 189 indictments, information and criminal complaints.

Law Enforcement Assistance Program - In March 2013, IRS announced to the public that the Law Enforcement Assistance Program, formerly known as the Identity Theft Pilot Disclosure Program, was expanded nationwide.  This program provides for the disclosure of federal tax return information associated with the accounts of known and suspected identity victims of identity theft with the express written consent of those victims.  There are currently more than 300 state/local law enforcement agencies from 35 states participating.  For FY 2013, more than 2,400 requests had been received from state and local law enforcement agencies.

Identify Theft Clearinghouse (ITC) - The Identity Theft Clearinghouse (ITC) continues to develop and refer identity theft refund fraud schemes to CI Field Offices for investigation.  For FY 2013 the ITC had received more than 1,400 identity theft related leads. 

Data Processing Center(DPC) Identity Theft Victims List Process - This process centralizes identity theft victims’ lists and information forwarded to IRS-CI by other federal, state and local agencies during nationwide investigative efforts.  The information is analyzed and necessary adjustments are made to accounts of taxpayers that are likely targets of ID theft.  The DPC processed over 71.7 percent more identity records in FY 2013 than it did in FY 2012.

Multi-Agency Task Forces and Working Groups - CI is the lead agency or actively involved in more than 30 multi-regional task forces or working groups including state/local and federal law enforcement agencies solely focusing on identity theft.      

The following are highlights from significant identity-theft cases. All details are based on court documents.

Self-Proclaimed “First Lady” of Tax Fraud Sentenced

On July 16, 2013, in Tampa, Fla., Rashia Wilson, was sentenced to 234 months in prison on wire fraud and aggravated identity theft charges stemming from her scheme to defraud the IRS, and to a consecutive 18 months in prison for being a felon in possession of a firearm.  Wilson was also ordered to forfeit $2,240,096, which constituted the proceeds traceable to the offense.  According to court documents, from at least April 2009 through their arrests in September 2012, Wilson and her co-conspirator, Maurice J. Larry, engaged in a scheme to defraud the IRS by negotiating fraudulently obtained tax refunds. They did so by receiving U.S. Treasury checks and pre-paid debit cards that were loaded with proceeds derived from filing false and fraudulent federal income tax returns in other persons' names, without those persons’ permission or knowledge.  Wilson and Larry filed these false and fraudulent federal income tax returns from multiple locations, including Wilson's residence and hotels in the Tampa area.  Wilson, Larry, and others then used these fraudulently obtained tax refunds to make hundreds of thousands of dollars’ worth of retail purchases, to purchase money orders, and to withdraw cash. Larry was sentenced to 174 months in prison and ordered to forfeit $2,240,096.

Woman Sentenced for Running Stolen Identity Tax Fraud Scheme
On July 30, 2013, in St. Louis, Mo., Tania Henderson was sentenced to 144 months in prison and ordered to pay $835,883 in restitution to the IRS. Henderson pleaded guilty on April 29, 2013, to theft of government funds and aggravated identity theft. According to her plea agreement and other court documents, Henderson stole the identities of more than 400 individuals, many of whom were deceased, and filed fraudulent tax returns using their names and Social Security account numbers. Between August and November 2012, Henderson filed 236 fraudulent tax returns. Using a network of family and friends, she would collect refund checks or prepaid debit cards for the refund amounts and liquidate the proceeds of her scheme.  

Leaders of Multi-Million Dollar Fraud Ring Sentenced
On May 8, 2012, in Montgomery, Ala., Veronica Dale and Alchico Grant, who jointly ran a stolen identity refund fraud ring that attempted to defraud the United States of millions of dollars over several years, were sentenced to prison. Veronica Dale was sentenced to 334 months in prison and Alchico Grant was sentenced to 310 months in prison.  Dale and Grant were both ordered to pay more than $2.8 million in restitution to the IRS. In September 2011, Grant pleaded guilty to five charges from two separate indictments, including conspiracy, wire fraud and aggravated identity theft. In October 2011, Dale pleaded guilty to seven charges from two indictments, including conspiracy, filing false claims, wire fraud and aggravated identity theft.  According to court documents, beginning in 2009 and continuing through 2010, the defendants were part of a scheme that involved fraudulently obtaining tax refunds by filing false tax returns using stolen identities. Dale admitted that she filed more than 500 fraudulent returns that sought at least $3,741,908 in tax refunds.  These returns were filed using the names of Medicaid beneficiaries, whose personal information Dale obtained while working for a company that serviced Medicaid programs.  Dale directed the refunds to different bank accounts that she and other co-conspirators controlled.

The latest information on Identity Theft enforcement efforts and individual cases are available on IRS.gov.

Page Last Reviewed or Updated: 07-Jan-2014

The Income Tax Return Preparation

Income tax return preparation Publication 3402 - Main Content Table of Contents What is a Limited Liability Company? Classification of an LLC LLCs Classified as Partnerships LLCs Classified as Disregarded Entities LLCs Classified as Corporations Subsequent Elections How To Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What is a Limited Liability Company? For purposes of this publication, a limited liability company (LLC) is a business entity organized in the United States under state law. Income tax return preparation Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. Income tax return preparation An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner by applying the rules in Regulations section 301. Income tax return preparation 7701-3. Income tax return preparation The information in this publication applies to LLCs in general, and different rules may apply to special situations, including banks, insurance companies, or nonprofit organizations that are LLCs or that own LLCs. Income tax return preparation Check your state's requirements and the federal tax regulations for further information. Income tax return preparation Classification of an LLC Default classification rules. Income tax return preparation   An LLC with at least two members is classified as a partnership for federal income tax purposes. Income tax return preparation An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes). Income tax return preparation Also, an LLC's federal tax classification can subsequently change under certain default rules discussed later. Income tax return preparation Elected classification. Income tax return preparation   If an LLC does not choose to be classified under the above default classifications, it can elect to be classified as an association taxable as a corporation or as an S corporation. Income tax return preparation After an LLC has determined its federal tax classification, it can later elect to change that classification. Income tax return preparation For details, see Subsequent Elections, later. Income tax return preparation LLCs Classified as Partnerships If an LLC has at least two members and is classified as a partnership, it generally must file Form 1065, U. Income tax return preparation S. Income tax return preparation Return of Partnership Income. Income tax return preparation Generally, an LLC classified as a partnership is subject to the same filing and reporting requirements as partnerships. Income tax return preparation For certain purposes, members of an LLC are treated as limited partners in a limited partnership. Income tax return preparation For example, LLC members are treated as limited partners for purposes of material participation under the passive activity limitation rules (see Temporary Regulation section 1. Income tax return preparation 469-5T(e)). Income tax return preparation See the Instructions for Form 1065 for reporting rules that apply specifically to LLCs. Income tax return preparation Member manager. Income tax return preparation   Only a member manager of an LLC can sign the partnership tax return. Income tax return preparation And only a member manager can represent the LLC as the tax matters partner under the consolidated audit proceedings in sections 6221 through 6234. Income tax return preparation A member manager is any owner of an interest in the LLC who, alone or together with others, has the continuing authority to make the management decisions necessary to conduct the business for which the LLC was formed. Income tax return preparation If there are no elected or designated member managers, each owner is treated as a member manager. Income tax return preparation Change in default classification. Income tax return preparation   If the number of members in an LLC classified as a partnership is reduced to only one member, it becomes an entity disregarded as separate from its owner under Regulations section 301. Income tax return preparation 7701-3(f)(2). Income tax return preparation However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a disregarded entity will not apply. Income tax return preparation   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. Income tax return preparation If a partnership that becomes a disregarded entity as a result of a decrease in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed under Subsequent Elections, later, apply. Income tax return preparation Example 1. Income tax return preparation Ethel and Francis are members of an LLC classified as a partnership for federal tax purposes. Income tax return preparation Each holds an equal membership interest. Income tax return preparation The LLC does not hold any unrealized receivables or substantially appreciated inventory. Income tax return preparation Ethel sells her entire interest in the LLC to Francis for $10,000. Income tax return preparation After the sale, the business is continued by the LLC, which is owned solely by Francis. Income tax return preparation No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. Income tax return preparation The partnership terminates when Francis buys Ethel's entire interest. Income tax return preparation Ethel must treat the transaction as the sale of a partnership interest and must report gain or loss, if any, resulting from the sale of her partnership interest. Income tax return preparation For purposes of determining the tax treatment of Francis, the partnership is deemed to make a liquidating distribution of all of its assets to Ethel and Francis, and after this distribution, Francis is treated as acquiring the assets deemed to have been distributed to Ethel in liquidation of Ethel's partnership interest. Income tax return preparation Francis's basis in the assets attributable to Ethel's one-half interest in the partnership is $10,000, the purchase price for Ethel's partnership interest. Income tax return preparation Upon the termination of the partnership, Francis is considered to receive a distribution of those assets attributable to Francis's former interest in the partnership. Income tax return preparation Francis must recognize gain or loss, if any, on the deemed distribution of the assets to the extent required by Internal Revenue Code section 731(a). Income tax return preparation See Partnership Distributions in Publication 541. Income tax return preparation Example 2. Income tax return preparation George and Henrietta are members of an LLC classified as a partnership for federal tax purposes. Income tax return preparation Each holds an equal membership interest. Income tax return preparation The LLC does not hold any unrealized receivables or substantially appreciated inventory. Income tax return preparation George and Henrietta each sell their entire interests in the LLC to Ian, an unrelated person, in exchange for $10,000. Income tax return preparation After the sale, the business is continued by the LLC, which is owned solely by Ian. Income tax return preparation No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. Income tax return preparation The partnership terminates when Ian purchases the entire interests of George and Henrietta in the LLC. Income tax return preparation George and Henrietta must report gain or loss, if any, resulting from the sale of their partnership interests. Income tax return preparation For purposes of classifying the acquisition by Ian, the partnership is deemed to make a liquidating distribution of its assets to George and Henrietta. Income tax return preparation Immediately following this distribution, Ian is deemed to acquire, by purchase, all of the former partnership's assets. Income tax return preparation   For more details on the preceding two examples, see Revenue Ruling 99-6, 1999-6 I. Income tax return preparation R. Income tax return preparation B. Income tax return preparation 6. Income tax return preparation You can find Revenue Ruling 99-6 at www. Income tax return preparation irs. Income tax return preparation gov/pub/irs-irbs/irb99-06. Income tax return preparation pdf. Income tax return preparation LLCs Classified as Disregarded Entities If an LLC has only one member and is classified as an entity disregarded as separate from its owner, its income, deductions, gains, losses, and credits are reported on the owner's income tax return. Income tax return preparation For example, if the owner of the LLC is an individual, the LLC's income and expenses would be reported on the following schedules filed with the owner's Form 1040: Schedule C, Profit or Loss from Business (Sole Proprietorship); Schedule C-EZ, Net Profit From Business (Sole Proprietorship); Schedule E, Supplemental Income and Loss; or Schedule F, Profit or Loss From Farming. Income tax return preparation Employment tax and certain excise taxes. Income tax return preparation   A single-member LLC that is classified as a disregarded entity for income tax purposes is treated as a separate entity for purposes of employment tax and certain excise taxes. Income tax return preparation For wages paid after January 1, 2009, the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes. Income tax return preparation A single-member LLC is also required to use its name and EIN to register for excise tax activities on Form 637; pay and report excise taxes reported on Forms 720, 730, 2290, and 11-C; and claim any refunds, credits, and payments on Form 8849. Income tax return preparation See the employment and excise tax returns for more information. Income tax return preparation Self-employment tax rule for disregarded entity LLCs. Income tax return preparation   An individual owner of a single-member LLC classified as a disregarded entity is not an employee of the LLC. Income tax return preparation Instead, the owner is subject to tax on the net earnings from self-employment of the LLC which is treated in the same manner as a sole-proprietorship. Income tax return preparation Example 3. Income tax return preparation LLC is a disregarded entity owned by Irene. Income tax return preparation LLC has three employees (Kent, Patricia, and Tex) and pays wages. Income tax return preparation LLC is treated as an entity separate from its owner for purposes of employment taxes. Income tax return preparation For the wages paid to Kent, Patricia, and Tex, LLC is liable for income tax withholding, Federal Insurance Contributions Act (FICA) taxes, and Federal Unemployment Tax Act (FUTA) taxes. Income tax return preparation In addition, LLC must file under its name and EIN the applicable employment tax returns; make timely employment tax deposits; and file with the Social Security Administration and furnish to LLC's employees (Kent, Patricia, and Tex) Forms W-2, Wage and Tax Statement. Income tax return preparation Irene is self-employed for purposes of the self-employment tax. Income tax return preparation Thus, Irene is subject to self-employment tax on her net earnings from self-employment with respect to LLC's activities. Income tax return preparation Irene is not an employee of LLC for purposes of employment taxes. Income tax return preparation Because LLC is treated as a sole proprietorship of Irene for income tax purposes, Irene must report the income and expenses from LLC on her Schedule C. Income tax return preparation Irene will figure the tax due on her net earnings from self-employment on Schedule SE. Income tax return preparation Irene can also deduct one-half of her self-employment tax on line 27 of her Form 1040. Income tax return preparation Taxpayer identification number. Income tax return preparation   For all income tax purposes, a single-member LLC classified as a disregarded entity must use the owner's social security number (SSN) or EIN. Income tax return preparation This includes all information returns and reporting related to income tax. Income tax return preparation For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the LLC must provide the owner's SSN or EIN, not the LLC's EIN. Income tax return preparation   However, most new single-member LLCs classified as a disregarded entity will need to obtain an EIN for the LLC. Income tax return preparation An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed above (see Employment tax and certain excise taxes earlier). Income tax return preparation See Form SS-4, Application for Employer Identification Number, for information on applying for an EIN. Income tax return preparation Change in default classification. Income tax return preparation   If a single-member LLC classified as a disregarded entity for income tax purposes acquires an additional member, it becomes a partnership under Regulations section 301. Income tax return preparation 7701-3(f)(2). Income tax return preparation However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a partnership will not apply. Income tax return preparation   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. Income tax return preparation If a disregarded entity that becomes a partnership as a result of an increase in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed in Subsequent Elections, later, apply. Income tax return preparation Example 4. Income tax return preparation Bart, who is not related to Alain, buys 50% of Alain's interest in an LLC that is a disregarded entity for $5,000. Income tax return preparation Alain does not contribute any portion of the $5,000 to the LLC. Income tax return preparation Alain and Bart continue to operate the business of the LLC as co-owners of the LLC. Income tax return preparation The LLC is converted to a partnership when the new member, Bart, buys an interest in the disregarded entity from the owner, Alain. Income tax return preparation Bart's buying a 50% interest in Alain's ownership interest in the LLC is treated as Bart's buying a 50% interest in each of the LLC's assets, which are treated as owned directly by Alain for federal income tax purposes. Income tax return preparation Immediately thereafter, Alain and Bart are treated as contributing their respective interests in those assets to a partnership in exchange for ownership interests in the partnership. Income tax return preparation Alain recognizes gain or loss from the deemed sale to Bart of the 50% interest in the assets. Income tax return preparation Neither Alain nor Bart recognizes any gain or loss as a result of the deemed contribution of the assets to the partnership. Income tax return preparation Example 5. Income tax return preparation Charles, who is not related to Danielle, contributes $10,000 to an LLC owned by Danielle for a 50% ownership interest in the LLC. Income tax return preparation The LLC uses all of the contributed cash in its business. Income tax return preparation Charles and Danielle continue to operate the business of the LLC as co-owners of the LLC. Income tax return preparation The LLC is converted from a disregarded entity to a partnership when Charles contributes cash to the LLC. Income tax return preparation Charles's contribution is treated as a contribution to a partnership in exchange for an ownership interest in the partnership. Income tax return preparation Danielle is treated as contributing all of the assets of the LLC to the partnership in exchange for a partnership interest. Income tax return preparation Neither Charles nor Danielle recognizes gain or loss as a result of the conversion of the disregarded entity to a partnership. Income tax return preparation   For more details on the preceding two examples, see Revenue Ruling 99-5, 1999-6 I. Income tax return preparation R. Income tax return preparation B. Income tax return preparation 8. Income tax return preparation You can find Revenue Ruling 99-5 at www. Income tax return preparation irs. Income tax return preparation gov/pub/irs-irbs/irb99-06. Income tax return preparation pdf. Income tax return preparation LLCs Classified as Corporations An LLC with either a single member or more than one member can elect to be classified as a corporation rather than be classified as a partnership or disregarded entity under the default rules discussed earlier. Income tax return preparation File Form 8832, Entity Classification Election, to elect classification as a C corporation. Income tax return preparation File Form 2553, Election by a Small Business Corporation, to elect classification as an S corporation. Income tax return preparation LLCs electing classification as an S corporation are not required to file Form 8832 to elect classification as a corporation before filing Form 2553. Income tax return preparation By filing Form 2553, an LLC is deemed to have elected classification as a corporation in addition to the S corporation classification. Income tax return preparation If the LLC elects to be classified as a corporation by filing Form 8832, a copy of the LLC's Form 8832 must be attached to the federal income tax return of each direct and indirect owner of the LLC for the tax year of the owner that includes the date on which the election took effect. Income tax return preparation Example 6. Income tax return preparation Classification as a corporation without an S election. Income tax return preparation Wanda and Sylvester are members of an LLC. Income tax return preparation They agree that the LLC should be classified as a corporation but do not want to elect to have the LLC be treated as an S corporation. Income tax return preparation The LLC must file Form 8832. Income tax return preparation Example 7. Income tax return preparation Classification as a corporation with an S election. Income tax return preparation Evelyn and Carol are members of an LLC. Income tax return preparation They agree that the LLC should be classified as an S corporation. Income tax return preparation The LLC must file Form 2553 instead of Form 8832. Income tax return preparation If the LLC is classified as a corporation, it must file a corporation income tax return. Income tax return preparation If it is a C corporation, it is taxed on its taxable income and distributions to the members are includible in the members' gross income to the extent of the corporation's earnings and profits (double taxation). Income tax return preparation If it is an S corporation, the corporation is generally not subject to any income tax and the income, deductions, gains, losses, and credits of the corporation “pass through” to the members. Income tax return preparation Corporations generally file either: Form 1120, U. Income tax return preparation S. Income tax return preparation Corporation Income Tax Return; or Form 1120S, U. Income tax return preparation S. Income tax return preparation Income Tax Return for an S Corporation. Income tax return preparation For more information on the income taxation of corporations and their shareholders, see Publication 542, Corporations. Income tax return preparation For more information on the income taxation of S corporations and their shareholders, see the Instructions for Form 1120S, U. Income tax return preparation S. Income tax return preparation Income Tax Return for an S Corporation. Income tax return preparation Subsequent Elections An LLC can elect to change its classification. Income tax return preparation Generally, once an LLC has elected to change its classification, it cannot elect again to change it classification during the 60 months after the effective date of the election. Income tax return preparation An election by a newly formed LLC that is effective on the date of formation is not considered a change for purposes of this limitation. Income tax return preparation For more information and exceptions, see Regulations section 301. Income tax return preparation 7701-3(c) and the Form 8832 instructions. Income tax return preparation An election to change classification can have significant tax consequences based on the following transactions that are deemed to occur as a result of the election. Income tax return preparation Partnership to corporation. Income tax return preparation   An election to change classification from a partnership to a corporation will be treated as if the partnership contributed all of its assets and liabilities to the corporation in exchange for stock and the partnership then immediately liquidated by distributing the stock to its partners. Income tax return preparation   For more information, see Partnership Distributions in Publication 541 and Property Exchanged for Stock in Publication 542. Income tax return preparation Corporation to partnership. Income tax return preparation   An election to change classification from a corporation to a partnership will be treated as if the corporation distributed all of its assets and liabilities to its shareholders in liquidation and the shareholders then immediately contributed all of the distributed assets and liabilities to a new partnership. Income tax return preparation   For more information, see Contribution of Property in Publication 541 and Distributions to Shareholders in Publication 542. Income tax return preparation Corporation to disregarded entity. Income tax return preparation   An election to change classification from a corporation to a disregarded entity will be treated as if the corporation distributed all of its assets and liabilities to its single owner in liquidation. Income tax return preparation   For more information, see Distributions to Shareholders in Publication 542. Income tax return preparation Disregarded entity to corporation. Income tax return preparation   An election to change classification from a disregarded entity to a corporation will be treated as if the owner of the disregarded entity contributed all of the assets and liabilities to the corporation in exchange for stock. Income tax return preparation   For more information, see Property Exchanged for Stock in Publication 542. Income tax return preparation How To Get More Information This section describes the help the IRS and other federal agencies offer to taxpayers who operate their own businesses. Income tax return preparation Internal Revenue Service You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Income tax return preparation By selecting the method that is best for you, you will have quick and easy access to tax help. Income tax return preparation Contacting your Taxpayer Advocate. Income tax return preparation   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Income tax return preparation   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. Income tax return preparation You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. Income tax return preparation You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. Income tax return preparation For more information, go to www. Income tax return preparation irs. Income tax return preparation gov/advocate. Income tax return preparation Low Income Taxpayer Clinics (LITCs). Income tax return preparation   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. Income tax return preparation The clinics also provide tax education and outreach for taxpayers with limited English proficiency or who speak English as a second language. Income tax return preparation Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. Income tax return preparation It is available at www. Income tax return preparation irs. Income tax return preparation gov or at your local IRS office. Income tax return preparation Small business workshops. Income tax return preparation   Small business workshops are designed to help the small business owner understand and fulfill their federal tax responsibilities. Income tax return preparation Workshops are sponsored and presented by IRS partners who are federal tax specialists. Income tax return preparation Workshop topics vary from a general overview of taxes to more specific topics such as recordkeeping and retirement plans. Income tax return preparation Although most are free, some workshops have fees associated with them. Income tax return preparation Any fees charged for a workshop are paid to the sponsoring organization, not the IRS. Income tax return preparation   For more information, visit www. Income tax return preparation irs. Income tax return preparation gov/businesses/small. Income tax return preparation Subscribe to e-news for small businesses. Income tax return preparation   Join the e-News for Small Businesses mailing list to receive updates, reminders, and other information useful to small business owners and self employed individuals. Income tax return preparation Visit the website at www. Income tax return preparation irs. Income tax return preparation gov/businesses/small and click on “Subscribe to e-News. Income tax return preparation ” Free tax services. Income tax return preparation   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Income tax return preparation It contains a list of free tax publications and describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Income tax return preparation   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Income tax return preparation Internet. Income tax return preparation You can access the IRS website at www. Income tax return preparation irs. Income tax return preparation gov 24 hours a day, 7 days a week, to: E-file your return. Income tax return preparation Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Income tax return preparation Check the status of your refund. Income tax return preparation Go to www. Income tax return preparation irs. Income tax return preparation gov and click on Where's My Refund. Income tax return preparation Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Income tax return preparation If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Income tax return preparation Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Income tax return preparation Download forms, instructions, and publications. Income tax return preparation Order IRS products online. Income tax return preparation Research your tax questions online. Income tax return preparation Search publications online by topic or keyword. Income tax return preparation View Internal Revenue Bulletins (IRBs) published in the last few years. Income tax return preparation Figure your withholding allowances using the withholding calculator online at www. Income tax return preparation irs. Income tax return preparation gov/individuals. Income tax return preparation Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. Income tax return preparation Sign up to receive local and national tax news by email. Income tax return preparation Get information on starting and operating a small business. Income tax return preparation Phone. Income tax return preparation Many services are available by phone. Income tax return preparation Ordering forms, instructions, and publications. Income tax return preparation Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. Income tax return preparation You should receive your order within 10 days. Income tax return preparation Asking tax questions. Income tax return preparation Call the IRS with your tax questions at 1-800-829-1040. Income tax return preparation Solving problems. Income tax return preparation You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Income tax return preparation An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Income tax return preparation Call your local Taxpayer Assistance Center for an appointment. Income tax return preparation To find the number, go to www. Income tax return preparation irs. Income tax return preparation gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Income tax return preparation TTY/TDD equipment. Income tax return preparation If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Income tax return preparation TeleTax topics. Income tax return preparation Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Income tax return preparation Refund information. Income tax return preparation To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Income tax return preparation Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Income tax return preparation If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Income tax return preparation Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Income tax return preparation Refunds are sent out weekly on Fridays. Income tax return preparation If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Income tax return preparation Evaluating the quality of our telephone services. Income tax return preparation To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Income tax return preparation One method is for a second IRS representative to listen in on or record random telephone calls. Income tax return preparation Another is to ask some callers to complete a short survey at the end of the call. Income tax return preparation Walk-in. Income tax return preparation Many products and services are available on a walk-in basis. Income tax return preparation Products. Income tax return preparation You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Income tax return preparation Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Income tax return preparation Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Income tax return preparation Services. Income tax return preparation You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Income tax return preparation An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Income tax return preparation If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Income tax return preparation No appointment is necessary—just walk in. Income tax return preparation If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Income tax return preparation A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Income tax return preparation If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Income tax return preparation All other issues will be handled without an appointment. Income tax return preparation To find the number of your local office, go to www. Income tax return preparation irs. Income tax return preparation gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Income tax return preparation Mail. Income tax return preparation You can send your order for forms, instructions, and publications to the address below. Income tax return preparation You should receive a response within 10 days after your request is received. Income tax return preparation Internal Revenue Service1201 N. Income tax return preparation Mitsubishi MotorwayBloomington, IL 61705–6613 DVD for tax products. Income tax return preparation You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Income tax return preparation Prior-year forms, instructions, and publications. Income tax return preparation Tax Map: an electronic research tool and finding aid. Income tax return preparation Tax law frequently asked questions. Income tax return preparation Tax Topics from the IRS telephone response system. Income tax return preparation Internal Revenue Code—Title 26 of the U. Income tax return preparation S. Income tax return preparation Code. Income tax return preparation Fill-in, print, and save features for most tax forms. Income tax return preparation Internal Revenue Bulletins. Income tax return preparation Toll-free and email technical support. Income tax return preparation Two releases during the year. Income tax return preparation – The first release will ship the beginning of January. Income tax return preparation – The final release will ship the beginning of March. Income tax return preparation Purchase the DVD from National Technical Information Service (NTIS) at www. Income tax return preparation irs. Income tax return preparation gov/cdorders for $30 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the DVD for $30 (plus a $6 handling fee). Income tax return preparation Small Business Administration The Small Business Administration (SBA) offers training and educational programs, counseling services, financial programs, and contract assistance for small business owners. Income tax return preparation The SBA also has publications and videos on a variety of business topics. Income tax return preparation The following briefly describes assistance provided by the SBA. Income tax return preparation Small Business Development Centers (SBDCs). Income tax return preparation   SBDCs provide counseling, training, and technical services to current and prospective small business owners who cannot afford the services of a private consultant. Income tax return preparation Help is available when beginning, improving, or expanding a small business. Income tax return preparation Business Information Centers (BICs). Income tax return preparation   BICs offer a small business reference library, management video tapes, and computer technology to help plan a business. Income tax return preparation BICs also offer one-on-one assistance. Income tax return preparation Individuals who are in business or are interested in starting a business can use BICs as often as they wish at no charge. Income tax return preparation Service Corps of Retired Executives (SCORE). Income tax return preparation   SCORE provides small business counseling and training to current and prospective small business owners. Income tax return preparation SCORE is made up of current and former business people who offer their expertise and knowledge to help people start, manage, and expand a small business. Income tax return preparation SCORE also offers a variety of small business workshops. Income tax return preparation    Internet. Income tax return preparation You can visit the SBA website at www. Income tax return preparation sba. Income tax return preparation gov. Income tax return preparation While visiting the SBA website, you can find a variety of information of interest to small business owners. Income tax return preparation    Phone. Income tax return preparation Call the SBA Answer Desk at 1-800-UASK-SBA (1-800-827-5722) for general information about programs available to assist small business owners. Income tax return preparation    Walk-in. Income tax return preparation You can walk in to a Small Business Development Center or Business Information Center to request assistance with your small business. Income tax return preparation To find the location nearest you, visit the SBA website or call the SBA Answer Desk. Income tax return preparation Other Federal Agencies Other federal agencies also publish publications and pamphlets to assist small businesses. Income tax return preparation Most of these are available from the Superintendent of Documents at the Government Printing Office. Income tax return preparation You can get information and order these publications and pamphlets in several ways. Income tax return preparation Internet. Income tax return preparation You can visit the GPO website at www. Income tax return preparation access. Income tax return preparation gpo. Income tax return preparation gov. Income tax return preparation Mail. Income tax return preparation Write to the GPO at the following address. Income tax return preparation Superintendent of DocumentsU. Income tax return preparation S. Income tax return preparation Government Printing OfficeP. Income tax return preparation O. Income tax return preparation Box 979050St. Income tax return preparation Louis, MO 63917-9000 Phone. Income tax return preparation Call the GPO toll-free at 1-866-512-1800 or at 202-512-1800 from the Washington, DC area. 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