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Mailing Address 1040ez

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Mailing Address 1040ez

Mailing address 1040ez Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Mailing address 1040ez Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Mailing address 1040ez Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Mailing address 1040ez Any forgiven tax liability owed to the IRS will not have to be paid. Mailing address 1040ez Any forgiven tax liability that has already been paid will be refunded. Mailing address 1040ez (See Refund of Taxes Paid, later. Mailing address 1040ez ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Mailing address 1040ez Then read Amount of Tax Forgiven. Mailing address 1040ez Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Mailing address 1040ez Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Mailing address 1040ez See Minimum Amount of Relief later under Amount of Tax Forgiven. Mailing address 1040ez Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Mailing address 1040ez Oklahoma City attack. Mailing address 1040ez   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Mailing address 1040ez Example 1. Mailing address 1040ez A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Mailing address 1040ez His income tax is forgiven for 1994 and 1995. Mailing address 1040ez Example 2. Mailing address 1040ez A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Mailing address 1040ez She subsequently died of her wounds in 1996. Mailing address 1040ez Her income tax is forgiven for 1994, 1995, and 1996. Mailing address 1040ez September 11 attacks and anthrax attacks. Mailing address 1040ez   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Mailing address 1040ez Example 1. Mailing address 1040ez A Pentagon employee died in the September 11 attack. Mailing address 1040ez Her income tax is forgiven for 2000 and 2001. Mailing address 1040ez Example 2. Mailing address 1040ez A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Mailing address 1040ez His income tax liability is forgiven for 2000, 2001, and 2002. Mailing address 1040ez Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Mailing address 1040ez On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Mailing address 1040ez To figure the tax to be forgiven, use the following worksheets. Mailing address 1040ez Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Mailing address 1040ez Use Worksheet B for any eligible year the decedent filed a joint return. Mailing address 1040ez See the illustrated Worksheet B near the end of this publication. Mailing address 1040ez Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Mailing address 1040ez Instead, complete Worksheet C and file a return for the decedent's last tax year. Mailing address 1040ez See Minimum Amount of Relief, later. Mailing address 1040ez If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Mailing address 1040ez In English–7 a. Mailing address 1040ez m. Mailing address 1040ez to 10 p. Mailing address 1040ez m. Mailing address 1040ez local time. Mailing address 1040ez In Spanish–8 a. Mailing address 1040ez m. Mailing address 1040ez to 9:30 p. Mailing address 1040ez m. Mailing address 1040ez local time. Mailing address 1040ez Both spouses died. Mailing address 1040ez   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Mailing address 1040ez Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Mailing address 1040ez If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Mailing address 1040ez However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Mailing address 1040ez The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Mailing address 1040ez Residents of community property states. Mailing address 1040ez   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Mailing address 1040ez Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Mailing address 1040ez Worksheet B. Mailing address 1040ez Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Mailing address 1040ez 1       2 Enter the decedent's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 2       3 Enter the decedent's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Mailing address 1040ez See the instructions. Mailing address 1040ez 4       5 Subtract line 4 from line 3. Mailing address 1040ez 5       6 Enter the surviving spouse's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 6       7 Enter the surviving spouse's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Mailing address 1040ez 8       9 Subtract line 8 from line 7. Mailing address 1040ez 9       10 Add lines 5 and 9. Mailing address 1040ez 10       11 Enter the total tax from the joint return. Mailing address 1040ez See Table 1 on page 5 for the line number for years before 2002. Mailing address 1040ez 11       12 Add lines 4 and 8. Mailing address 1040ez 12       13 Subtract line 12 from line 11. Mailing address 1040ez 13       14 Divide line 5 by line 10. Mailing address 1040ez Enter the result as a decimal. Mailing address 1040ez 14       15 Tax to be forgiven. Mailing address 1040ez Multiply line 13 by line 14 and enter the result. Mailing address 1040ez 15       Note. Mailing address 1040ez If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Mailing address 1040ez Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Mailing address 1040ez If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Mailing address 1040ez The IRS will determine the amount to be refunded. Mailing address 1040ez Worksheet B. Mailing address 1040ez Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Mailing address 1040ez 1       2 Enter the decedent's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 2       3 Enter the decedent's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Mailing address 1040ez See the instructions. Mailing address 1040ez 4       5 Subtract line 4 from line 3. Mailing address 1040ez 5       6 Enter the surviving spouse's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 6       7 Enter the surviving spouse's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Mailing address 1040ez 8       9 Subtract line 8 from line 7. Mailing address 1040ez 9       10 Add lines 5 and 9. Mailing address 1040ez 10       11 Enter the total tax from the joint return. Mailing address 1040ez See Table 1 on page 5 for the line number for years before 2002. Mailing address 1040ez 11       12 Add lines 4 and 8. Mailing address 1040ez 12       13 Subtract line 12 from line 11. Mailing address 1040ez 13       14 Divide line 5 by line 10. Mailing address 1040ez Enter the result as a decimal. Mailing address 1040ez 14       15 Tax to be forgiven. Mailing address 1040ez Multiply line 13 by line 14 and enter the result. Mailing address 1040ez 15       Note. Mailing address 1040ez If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Mailing address 1040ez Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Mailing address 1040ez If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Mailing address 1040ez The IRS will determine the amount to be refunded. Mailing address 1040ez Instructions for Worksheet B Table 1. Mailing address 1040ez Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Mailing address 1040ez * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Mailing address 1040ez ** File Form 4506 to get a transcript of the decedent's account. Mailing address 1040ez Table 1. Mailing address 1040ez Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Mailing address 1040ez * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Mailing address 1040ez ** File Form 4506 to get a transcript of the decedent's account. Mailing address 1040ez Lines 2 and 6. Mailing address 1040ez   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Mailing address 1040ez   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Mailing address 1040ez Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Mailing address 1040ez Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Mailing address 1040ez   Allocate business deductions to the owner of the business. Mailing address 1040ez Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Mailing address 1040ez Lines 3 and 7. Mailing address 1040ez   Figure the total tax as if a separate return had been filed. Mailing address 1040ez The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Mailing address 1040ez When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Mailing address 1040ez   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Mailing address 1040ez If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Mailing address 1040ez Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Mailing address 1040ez Line 4. Mailing address 1040ez   Enter the total, if any, of the following taxes. Mailing address 1040ez Self-employment tax. Mailing address 1040ez Social security and Medicare tax on tip income not reported to employer. Mailing address 1040ez Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Mailing address 1040ez Tax on excess accumulation in qualified retirement plans. Mailing address 1040ez Household employment taxes. Mailing address 1040ez Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Mailing address 1040ez Tax on golden parachute payments. Mailing address 1040ez Minimum Amount of Relief The minimum amount of relief is $10,000. Mailing address 1040ez If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Mailing address 1040ez The IRS will refund the difference as explained under Refund of Taxes Paid. Mailing address 1040ez Use Worksheet C to figure the additional tax payment. Mailing address 1040ez But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Mailing address 1040ez Example 1. Mailing address 1040ez An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Mailing address 1040ez The $6,400 is eligible for forgiveness. Mailing address 1040ez The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Mailing address 1040ez Example 2. Mailing address 1040ez A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Mailing address 1040ez The IRS will treat $10,000 as a tax payment for 2001. Mailing address 1040ez Income received after date of death. Mailing address 1040ez   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Mailing address 1040ez Examples are the final paycheck or dividends on stock owned by the decedent. Mailing address 1040ez However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Mailing address 1040ez Nonqualifying income. Mailing address 1040ez   The following income is not exempt from tax. Mailing address 1040ez The tax on it is not eligible for forgiveness. Mailing address 1040ez Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Mailing address 1040ez Amounts that would not have been payable but for an action taken after September 11, 2001. Mailing address 1040ez The following are examples of nonqualifying income. Mailing address 1040ez Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Mailing address 1040ez Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Mailing address 1040ez Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Mailing address 1040ez Interest on savings bonds cashed by the beneficiary of the decedent. Mailing address 1040ez If you are responsible for the estate of a decedent, see Publication 559. Mailing address 1040ez Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Mailing address 1040ez Instructions for lines 2–9 of Worksheet C. Mailing address 1040ez   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Mailing address 1040ez To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Mailing address 1040ez Or, if special requirements are met, you can use the alternative computation instead. Mailing address 1040ez See Alternative computation, later. Mailing address 1040ez   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Mailing address 1040ez Use Form 1041 to figure what the taxable income would be without including the exempt income. Mailing address 1040ez Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Mailing address 1040ez Alternative computation. Mailing address 1040ez   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Mailing address 1040ez You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Mailing address 1040ez The estate claimed an income distribution deduction on line 18 (Form 1041). Mailing address 1040ez Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Mailing address 1040ez If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Mailing address 1040ez If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Mailing address 1040ez Complete the rest of Worksheet C to determine the additional payment allowed. Mailing address 1040ez Worksheet C. Mailing address 1040ez Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Mailing address 1040ez Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Mailing address 1040ez 1 Minimum relief amount. Mailing address 1040ez Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Mailing address 1040ez 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Mailing address 1040ez 3       4 Add lines 2 and 3. Mailing address 1040ez 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Mailing address 1040ez (See Income received after date of death on page 5. Mailing address 1040ez ) 5       6 Add lines 4 and 5. Mailing address 1040ez 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Mailing address 1040ez 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Mailing address 1040ez 8       9 Tax on exempt income. Mailing address 1040ez Subtract line 8 from line 7. Mailing address 1040ez 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Mailing address 1040ez If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Mailing address 1040ez 10       11 Add lines 9 and 10. Mailing address 1040ez 11   12 Additional payment allowed. Mailing address 1040ez If line 11 is $10,000 or more, enter -0- and stop here. Mailing address 1040ez No additional amount is allowed as a tax payment. Mailing address 1040ez Otherwise, subtract line 11 from line 1 and enter the result. Mailing address 1040ez 12   Note. Mailing address 1040ez The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Mailing address 1040ez Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Mailing address 1040ez If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Mailing address 1040ez Write "Sec. Mailing address 1040ez 692(d)(2) Payment" and the amount to the right of the entry space. Mailing address 1040ez Also indicate whether a Form 1041 is being filed for the decedent's estate. Mailing address 1040ez If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Mailing address 1040ez Write “Sec. Mailing address 1040ez 692(d)(2) Payment” on the dotted line to the left of the entry space. Mailing address 1040ez Worksheet C. Mailing address 1040ez Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Mailing address 1040ez Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Mailing address 1040ez 1 Minimum relief amount. Mailing address 1040ez Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Mailing address 1040ez 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Mailing address 1040ez 3       4 Add lines 2 and 3. Mailing address 1040ez 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Mailing address 1040ez (See Income received after date of death on page 5. Mailing address 1040ez ) 5       6 Add lines 4 and 5. Mailing address 1040ez 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Mailing address 1040ez 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Mailing address 1040ez 8       9 Tax on exempt income. Mailing address 1040ez Subtract line 8 from line 7. Mailing address 1040ez 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Mailing address 1040ez If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Mailing address 1040ez 10       11 Add lines 9 and 10. Mailing address 1040ez 11   12 Additional payment allowed. Mailing address 1040ez If line 11 is $10,000 or more, enter -0- and stop here. Mailing address 1040ez No additional amount is allowed as a tax payment. Mailing address 1040ez Otherwise, subtract line 11 from line 1 and enter the result. Mailing address 1040ez 12   Note. Mailing address 1040ez The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Mailing address 1040ez Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Mailing address 1040ez If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Mailing address 1040ez Write "Sec. Mailing address 1040ez 692(d)(2) Payment" and the amount to the right of the entry space. Mailing address 1040ez Also indicate whether a Form 1041 is being filed for the decedent's estate. Mailing address 1040ez If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Mailing address 1040ez Write “Sec. Mailing address 1040ez 692(d)(2) Payment” on the dotted line to the left of the entry space. Mailing address 1040ez Worksheet D. Mailing address 1040ez Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Mailing address 1040ez (See Income received after date of death on page 5. Mailing address 1040ez ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Mailing address 1040ez 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Mailing address 1040ez 5   6 Estate's tax on exempt income. Mailing address 1040ez Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Mailing address 1040ez Figure the total tax that would have been payable by all beneficiaries. Mailing address 1040ez Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Mailing address 1040ez Add the amounts by which each beneficiary's income tax is increased. Mailing address 1040ez 7   8 Add lines 6 and 7. Mailing address 1040ez Enter this amount on line 9 of Worksheet C. Mailing address 1040ez 8   Worksheet D. Mailing address 1040ez Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Mailing address 1040ez (See Income received after date of death on page 5. Mailing address 1040ez ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Mailing address 1040ez 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Mailing address 1040ez 5   6 Estate's tax on exempt income. Mailing address 1040ez Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Mailing address 1040ez Figure the total tax that would have been payable by all beneficiaries. Mailing address 1040ez Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Mailing address 1040ez Add the amounts by which each beneficiary's income tax is increased. Mailing address 1040ez 7   8 Add lines 6 and 7. Mailing address 1040ez Enter this amount on line 9 of Worksheet C. Mailing address 1040ez 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Mailing address 1040ez Income tax liabilities that have been paid. Mailing address 1040ez Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Mailing address 1040ez See Minimum Amount of Relief, earlier. Mailing address 1040ez Example 1. Mailing address 1040ez A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Mailing address 1040ez The total, $14,000, is eligible for tax forgiveness. Mailing address 1040ez However, he paid only $13,000 of that amount. Mailing address 1040ez The IRS will refund the $13,000 paid. Mailing address 1040ez Example 2. Mailing address 1040ez A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Mailing address 1040ez The child qualifies for the minimum relief of $10,000. Mailing address 1040ez The $10,000 is treated as a tax payment for 2001 and will be refunded. Mailing address 1040ez Period for filing a claim for credit or refund. Mailing address 1040ez   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Mailing address 1040ez For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Mailing address 1040ez To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Mailing address 1040ez Extension of time for victims of Oklahoma City attack. Mailing address 1040ez   The period described above has been extended for victims of the Oklahoma City attack. Mailing address 1040ez Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Mailing address 1040ez How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Mailing address 1040ez Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Mailing address 1040ez Return required but not yet filed. Mailing address 1040ez   File Form 1040 if the decedent was a U. Mailing address 1040ez S. Mailing address 1040ez citizen or resident. Mailing address 1040ez File Form 1040NR if the decedent was a nonresident alien. Mailing address 1040ez A nonresident alien is someone who is not a U. Mailing address 1040ez S. Mailing address 1040ez citizen or resident. Mailing address 1040ez Return required and already filed. Mailing address 1040ez   File a separate Form 1040X for each year you are claiming tax relief. Mailing address 1040ez Return not required and not filed. Mailing address 1040ez   File Form 1040 only for the year of death if the decedent was a U. Mailing address 1040ez S. Mailing address 1040ez citizen or resident. Mailing address 1040ez File Form 1040NR if the decedent was a nonresident alien. Mailing address 1040ez Return not required but already filed. Mailing address 1040ez   File Form 1040X only for the year of death. Mailing address 1040ez How to complete the returns. Mailing address 1040ez   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Mailing address 1040ez Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Mailing address 1040ez If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Mailing address 1040ez If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Mailing address 1040ez Also, please write one of the following across the top of page 1 of each return. Mailing address 1040ez KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Mailing address 1040ez ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Mailing address 1040ez If you need a copy, use Form 4506. Mailing address 1040ez The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Mailing address 1040ez Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Mailing address 1040ez Send Form 4506 to the address shown in the form instructions. Mailing address 1040ez Taxpayer identification number. Mailing address 1040ez   A taxpayer identification number must be furnished on the decedent's returns. Mailing address 1040ez This is usually the decedent's social security number (SSN). Mailing address 1040ez However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Mailing address 1040ez If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Mailing address 1040ez S. Mailing address 1040ez income tax return for any tax year, do not apply for an ITIN. Mailing address 1040ez You may claim a refund by filing Form 1040NR without an SSN or ITIN. Mailing address 1040ez Necessary Documents Please attach the following documents to the return or amended return. Mailing address 1040ez Proof of death. Mailing address 1040ez   Attach a copy of the death certificate. Mailing address 1040ez If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Mailing address 1040ez Form 1310. Mailing address 1040ez   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Mailing address 1040ez You are a surviving spouse filing an original or amended joint return with the decedent. Mailing address 1040ez You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Mailing address 1040ez A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Mailing address 1040ez A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Mailing address 1040ez      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Mailing address 1040ez Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Mailing address 1040ez Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Mailing address 1040ez Use one of the addresses shown below. Mailing address 1040ez Where you file the returns or claims depends on whether you use the U. Mailing address 1040ez S. Mailing address 1040ez Postal Service or a private delivery service. Mailing address 1040ez Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Mailing address 1040ez U. Mailing address 1040ez S. Mailing address 1040ez Postal Service. Mailing address 1040ez   If you use the U. Mailing address 1040ez S. Mailing address 1040ez Postal Service, file these returns and claims at the following address. Mailing address 1040ez Internal Revenue Service P. Mailing address 1040ez O. Mailing address 1040ez Box 4053 Woburn, MA 01888 Private delivery service. Mailing address 1040ez   Private delivery services cannot deliver items to P. Mailing address 1040ez O. Mailing address 1040ez boxes. Mailing address 1040ez If you use a private delivery service, file these returns and claims at the following address. Mailing address 1040ez Internal Revenue Service Stop 661 310 Lowell St. Mailing address 1040ez Andover, MA 01810 Designated private delivery services. Mailing address 1040ez   You can use the following private delivery services to file these returns and claims. Mailing address 1040ez Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Mailing address 1040ez DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Mailing address 1040ez Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Mailing address 1040ez United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Mailing address 1040ez M. Mailing address 1040ez , UPS Worldwide Express Plus, and UPS Worldwide Express. Mailing address 1040ez The private delivery service can tell you how to get written proof of the mailing date. Mailing address 1040ez Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Mailing address 1040ez September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Mailing address 1040ez Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Mailing address 1040ez These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Mailing address 1040ez No withholding applies to these payments. Mailing address 1040ez Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Mailing address 1040ez Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Mailing address 1040ez Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Mailing address 1040ez (A personal residence can be a rented residence or one you own. Mailing address 1040ez ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Mailing address 1040ez Qualified disaster relief payments also include the following. Mailing address 1040ez Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Mailing address 1040ez Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Mailing address 1040ez Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Mailing address 1040ez Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Mailing address 1040ez Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Mailing address 1040ez Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Mailing address 1040ez However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Mailing address 1040ez If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Mailing address 1040ez For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Mailing address 1040ez If that period has expired, you are granted an extension. Mailing address 1040ez You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Mailing address 1040ez On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Mailing address 1040ez 102(b)(2). Mailing address 1040ez ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Mailing address 1040ez The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Mailing address 1040ez Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Mailing address 1040ez Bureau of Justice Assistance payments. Mailing address 1040ez   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Mailing address 1040ez Government plan annuity. Mailing address 1040ez   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Mailing address 1040ez This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Mailing address 1040ez For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Mailing address 1040ez More information. Mailing address 1040ez   For more information, see Publication 559. Mailing address 1040ez Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Mailing address 1040ez The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Mailing address 1040ez If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Mailing address 1040ez Affected taxpayers. Mailing address 1040ez   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Mailing address 1040ez Any individual whose main home is located in a covered area (defined later). Mailing address 1040ez Any business entity or sole proprietor whose principal place of business is located in a covered area. Mailing address 1040ez Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Mailing address 1040ez The main home or principal place of business does not have to be located in the covered area. Mailing address 1040ez Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Mailing address 1040ez Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Mailing address 1040ez The spouse on a joint return with a taxpayer who is eligible for postponements. Mailing address 1040ez Any other person determined by the IRS to be affected by a terrorist attack. Mailing address 1040ez Covered area. Mailing address 1040ez   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Mailing address 1040ez Abatement of interest. Mailing address 1040ez   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Mailing address 1040ez Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Mailing address 1040ez You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Mailing address 1040ez The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Mailing address 1040ez The due date (with extensions) for the 2000 return. Mailing address 1040ez For more information about disaster area losses, see Publication 547. Mailing address 1040ez Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Mailing address 1040ez The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Mailing address 1040ez The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Mailing address 1040ez These credits may reduce or eliminate the estate tax due. Mailing address 1040ez A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Mailing address 1040ez Recovery from the September 11th Victim Compensation Fund. Mailing address 1040ez   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Mailing address 1040ez However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Mailing address 1040ez Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Mailing address 1040ez Which estates must file a return. Mailing address 1040ez   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Mailing address 1040ez S. Mailing address 1040ez citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Mailing address 1040ez Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Mailing address 1040ez Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Mailing address 1040ez S. Mailing address 1040ez Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Mailing address 1040ez Where to file. Mailing address 1040ez   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Mailing address 1040ez Internal Revenue Service E & G Department/Stop 824T 201 W. Mailing address 1040ez Rivercenter Blvd. Mailing address 1040ez Covington, KY 41011 More information. Mailing address 1040ez   For more information on the federal estate tax, see the instructions for Form 706. Mailing address 1040ez Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Mailing address 1040ez The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Mailing address 1040ez However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Mailing address 1040ez For information about these requirements, see Internal Revenue Code section 5891. Mailing address 1040ez Worksheet B Illustrated. Mailing address 1040ez Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Mailing address 1040ez 1 2000 2001   2 Enter the decedent's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 2 $17,259 $14,295   3 Enter the decedent's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Mailing address 1040ez See the instructions. Mailing address 1040ez 4 3,532 3,109   5 Subtract line 4 from line 3. Mailing address 1040ez 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions for line 2. Mailing address 1040ez 6 29,025 29,850   7 Enter the surviving spouse's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Mailing address 1040ez 8 0 0   9 Subtract line 8 from line 7. Mailing address 1040ez 9 5,277 5,391   10 Add lines 5 and 9. Mailing address 1040ez 10 7,868 7,532   11 Enter the total tax from the joint return. Mailing address 1040ez See Table 1 on page 5 for the line number for years before 2002. Mailing address 1040ez 11 10,789 9,728   12 Add lines 4 and 8. Mailing address 1040ez 12 3,532 3,109   13 Subtract line 12 from line 11. Mailing address 1040ez 13 7,257 6,619   14 Divide line 5 by line 10. Mailing address 1040ez Enter the result as a decimal. Mailing address 1040ez 14 . Mailing address 1040ez 329 . Mailing address 1040ez 284   15 Tax to be forgiven. Mailing address 1040ez Multiply line 13 by line 14 and enter the result. Mailing address 1040ez 15 $2,388 $1,880   Note. Mailing address 1040ez If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Mailing address 1040ez Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Mailing address 1040ez If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Mailing address 1040ez The IRS will determine the amount to be refunded. Mailing address 1040ez Worksheet B Illustrated. Mailing address 1040ez Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Mailing address 1040ez 1 2000 2001   2 Enter the decedent's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 2 $17,259 $14,295   3 Enter the decedent's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Mailing address 1040ez See the instructions. Mailing address 1040ez 4 3,532 3,109   5 Subtract line 4 from line 3. Mailing address 1040ez 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions for line 2. Mailing address 1040ez 6 29,025 29,850   7 Enter the surviving spouse's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Mailing address 1040ez 8 0 0   9 Subtract line 8 from line 7. Mailing address 1040ez 9 5,277 5,391   10 Add lines 5 and 9. Mailing address 1040ez 10 7,868 7,532   11 Enter the total tax from the joint return. Mailing address 1040ez See Table 1 on page 5 for the line number for years before 2002. Mailing address 1040ez 11 10,789 9,728   12 Add lines 4 and 8. Mailing address 1040ez 12 3,532 3,109   13 Subtract line 12 from line 11. Mailing address 1040ez 13 7,257 6,619   14 Divide line 5 by line 10. Mailing address 1040ez Enter the result as a decimal. Mailing address 1040ez 14 . Mailing address 1040ez 329 . Mailing address 1040ez 284   15 Tax to be forgiven. Mailing address 1040ez Multiply line 13 by line 14 and enter the result. Mailing address 1040ez 15 $2,388 $1,880   Note. Mailing address 1040ez If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Mailing address 1040ez Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Mailing address 1040ez If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Mailing address 1040ez The IRS will determine the amount to be refunded. Mailing address 1040ez Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Mailing address 1040ez They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Mailing address 1040ez The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Mailing address 1040ez After the husband died, his estate received income of $4,000. Mailing address 1040ez Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Mailing address 1040ez This net profit is exempt from income tax as explained earlier under Income received after date of death. Mailing address 1040ez The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Mailing address 1040ez To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Mailing address 1040ez She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Mailing address 1040ez To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Mailing address 1040ez To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Mailing address 1040ez   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Mailing address 1040ez Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Mailing address 1040ez Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Mailing address 1040ez 1 Minimum relief amount. Mailing address 1040ez Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Mailing address 1040ez 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Mailing address 1040ez 3 0     4 Add lines 2 and 3. Mailing address 1040ez 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Mailing address 1040ez (See Income received after date of death on page 5. Mailing address 1040ez ) 5 1,000     6 Add lines 4 and 5. Mailing address 1040ez 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Mailing address 1040ez 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Mailing address 1040ez 8 435     9 Tax on exempt income. Mailing address 1040ez Subtract line 8 from line 7. Mailing address 1040ez 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Mailing address 1040ez If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Mailing address 1040ez 10 4,268     11 Add lines 9 and 10. Mailing address 1040ez 11 $4,543 12 Additional payment allowed. Mailing address 1040ez If line 11 is $10,000 or more, enter -0- and stop here. Mailing address 1040ez No additional amount is allowed as a tax payment. Mailing address 1040ez Otherwise, subtract line 11 from line 1 and enter the result. Mailing address 1040ez 12 $5,457 Note. Mailing address 1040ez The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Mailing address 1040ez Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Mailing address 1040ez If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Mailing address 1040ez Write "Sec. Mailing address 1040ez 692(d)(2) Payment" and the amount to the right of the entry space. Mailing address 1040ez Also indicate whether a Form 1041 is being filed for the decedent's estate. Mailing address 1040ez If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Mailing address 1040ez Write “Sec. Mailing address 1040ez 692(d)(2) Payment” on the dotted line to the left of the entry space. Mailing address 1040ez Worksheet C Illustrated. Mailing address 1040ez Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Mailing address 1040ez Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Mailing address 1040ez 1 Minimum relief amount. Mailing address 1040ez Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Mailing address 1040ez 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Mailing address 1040ez 3 0     4 Add lines 2 and 3. Mailing address 1040ez 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Mailing address 1040ez (See Income received after date of death on page 5. Mailing address 1040ez ) 5 1,000     6 Add lines 4 and 5. Mailing address 1040ez 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Mailing address 1040ez 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Mailing address 1040ez 8 435     9 Tax on exempt income. Mailing address 1040ez Subtract line 8 from line 7. Mailing address 1040ez 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Mailing address 1040ez If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Mailing address 1040ez 10 4,268     11 Add lines 9 and 10. Mailing address 1040ez 11 $4,543 12 Additional payment allowed. Mailing address 1040ez If line 11 is $10,000 or more, enter -0- and stop here. Mailing address 1040ez No additional amount is allowed as a tax payment. Mailing address 1040ez Otherwise, subtract line 11 from line 1 and enter the result. Mailing address 1040ez 12 $5,457 Note. Mailing address 1040ez The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Mailing address 1040ez Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Mailing address 1040ez If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Mailing address 1040ez Write "Sec. Mailing address 1040ez 692(d)(2) Payment" and the amount to the right of the entry space. Mailing address 1040ez Also indicate whether a Form 1041 is being filed for the decedent's estate. Mailing address 1040ez If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Mailing address 1040ez Write “Sec. Mailing address 1040ez 692(d)(2) Payment” on the dotted line to the left of the entry space. Mailing address 1040ez Additional Worksheets The following additional worksheets are provided for your convenience. Mailing address 1040ez Worksheet A. Mailing address 1040ez Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Mailing address 1040ez 1       2 Enter the total tax from the decedent's income tax return. Mailing address 1040ez See Table 1 on page 5 for the line number for years before 2002. Mailing address 1040ez 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Mailing address 1040ez (These taxes are not eligible for forgiveness. Mailing address 1040ez )           a Self-employment tax. Mailing address 1040ez 3a         b Social security and Medicare tax on tip income not reported to employer. Mailing address 1040ez 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Mailing address 1040ez 3c         d Tax on excess accumulation in qualified retirement plans. Mailing address 1040ez 3d         e Household employment taxes. Mailing address 1040ez 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Mailing address 1040ez 3f         g Tax on golden parachute payments. Mailing address 1040ez 3g       4 Add lines 3a through 3g. Mailing address 1040ez 4       5 Tax to be forgiven. Mailing address 1040ez Subtract line 4 from line 2. Mailing address 1040ez 5       Note. Mailing address 1040ez If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Mailing address 1040ez Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Mailing address 1040ez If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Mailing address 1040ez The IRS will determine the amount to be refunded. Mailing address 1040ez Worksheet A. Mailing address 1040ez Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Mailing address 1040ez 1       2 Enter the total tax from the decedent's income tax return. Mailing address 1040ez See Table 1 on page 5 for the line number for years before 2002. Mailing address 1040ez 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Mailing address 1040ez (These taxes are not eligible for forgiveness. Mailing address 1040ez )           a Self-employment tax. Mailing address 1040ez 3a         b Social security and Medicare tax on tip income not reported to employer. Mailing address 1040ez 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Mailing address 1040ez 3c         d Tax on excess accumulation in qualified retirement plans. Mailing address 1040ez 3d         e Household employment taxes. Mailing address 1040ez 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Mailing address 1040ez 3f         g Tax on golden parachute payments. Mailing address 1040ez 3g       4 Add lines 3a through 3g. Mailing address 1040ez 4       5 Tax to be forgiven. Mailing address 1040ez Subtract line 4 from line 2. Mailing address 1040ez 5       Note. Mailing address 1040ez If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Mailing address 1040ez Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Mailing address 1040ez If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Mailing address 1040ez The IRS will determine the amount to be refunded. Mailing address 1040ez Worksheet B. Mailing address 1040ez Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Mailing address 1040ez 1       2 Enter the decedent's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 2       3 Enter the decedent's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Mailing address 1040ez See the instructions. Mailing address 1040ez 4       5 Subtract line 4 from line 3. Mailing address 1040ez 5       6 Enter the surviving spouse's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 6       7 Enter the surviving spouse's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Mailing address 1040ez 8       9 Subtract line 8 from line 7. Mailing address 1040ez 9       10 Add lines 5 and 9. Mailing address 1040ez 10       11 Enter the total tax from the joint return. Mailing address 1040ez See Table 1 on page 5 for the line number for years before 2002. Mailing address 1040ez 11       12 Add lines 4 and 8. Mailing address 1040ez 12       13 Subtract line 12 from line 11. Mailing address 1040ez 13       14 Divide line 5 by line 10. Mailing address 1040ez Enter the result as a decimal. Mailing address 1040ez 14       15 Tax to be forgiven. Mailing address 1040ez Multiply line 13 by line 14 and enter the result. Mailing address 1040ez 15       Note. Mailing address 1040ez If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Mailing address 1040ez Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Mailing address 1040ez If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Mailing address 1040ez The IRS will determine the amount to be refunded. Mailing address 1040ez Worksheet B. Mailing address 1040ez Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Mailing address 1040ez 1       2 Enter the decedent's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 2       3 Enter the decedent's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Mailing address 1040ez See the instructions. Mailing address 1040ez 4       5 Subtract line 4 from line 3. Mailing address 1040ez 5       6 Enter the surviving spouse's taxable income. Mailing address 1040ez Figure taxable income as if a separate return had been filed. Mailing address 1040ez See the instructions. Mailing address 1040ez 6       7 Enter the surviving spouse's total tax. Mailing address 1040ez See the instructions. Mailing address 1040ez 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Mailing address 1040ez 8       9 Subtract line 8 from line 7. Mailing address 1040ez 9       10 Add lines 5 and 9. Mailing address 1040ez 10       11 Enter the total tax from the joint return. Mailing address 1040ez See Table 1 on page 5 for the line number for years before 2002. Mailing address 1040ez 11       12 Add lines 4 and 8. Mailing address 1040ez 12       13 Subtract line 12 from line 11. Mailing address 1040ez 13       14 Divide line 5 by line 10. Mailing address 1040ez Enter the result as a decimal. Mailing address 1040ez 14       15 Tax to be forgiven. Mailing address 1040ez Multiply line 13 by line 14 and enter the result. Mailing address 1040ez 15       Note. Mailing address 1040ez If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Mailing address 1040ez Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Mailing address 1040ez If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Mailing address 1040ez The IRS will determine the amount to be refunded. Mailing address 1040ez Worksheet C. Mailing address 1040ez Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Mailing address 1040ez Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Mailing address 1040ez 1 Minimum tax forgiveness. Mailing address 1040ez Note. Mailing address 1040ez Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Mailing address 1040ez 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Mailing address 1040ez 3       4 Add lines 2 and 3. Mailing address 1040ez 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Mailing address 1040ez (See Income received after date of death on page 5. Mailing address 1040ez ) 5       6 Add lines 4 and 5. Mailing address 1040ez 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Mailing address 1040ez 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Mailing address 1040ez 8       9 Tax on exempt income. Mailing address 1040ez Subtract line 8 from line 7. Mailing address 1040ez 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Mailing address 1040ez If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Mailing address 1040ez 10       11 Add lines 9 and 10. Mailing address 1040ez 11   12 Additional payment allowed. Mailing address 1040ez If line 11 is $10,000 or more, enter -0- and stop here. Mailing address 1040ez No additional amount is allowed as a tax payment. Mailing address 1040ez Otherwise, subtract line 11 from line 1 and enter the result. Mailing address 1040ez 12   Note. Mailing address 1040ez The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Mailing address 1040ez Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Mailing address 1040ez If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Mailing address 1040ez Write "Sec. Mailing address 1040ez 692(d)(2) Payment" and the amount to the right of the entry space. Mailing address 1040ez Also indicate whether a Form 1041 is being filed for the decedent's estate. Mailing address 1040ez If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Mailing address 1040ez Write “Sec. Mailing address 1040ez 692(d)(2) Payment” on the dotted line to the left of the entry space. Mailing address 1040ez Worksheet C. Mailing address 1040ez Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Mailing address 1040ez Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Mailing address 1040ez 1 Minimum tax forgiveness. Mailing address 1040ez Note. Mailing address 1040ez Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Mailing address 1040ez 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Mailing address 1040ez 3       4 Add lines 2 and 3. Mailing address 1040ez 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Mailing address 1040ez (See Income received after date of death on page 5. Mailing address 1040ez ) 5       6 Add lines 4 and 5. Mailing address 1040ez 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Mailing address 1040ez 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Mailing address 1040ez 8       9 Tax on exempt income. Mailing address 1040ez Subtract line 8 from line 7. Mailing address 1040ez 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Mailing address 1040ez If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Mailing address 1040ez 10       11 Add lines 9 and 10. Mailing address 1040ez 11   12 Additional payment allowed. Mailing address 1040ez If line 11 is $10,000 or more, enter -0- and stop here. Mailing address 1040ez No additional amount is allowed as a tax payment. Mailing address 1040ez Otherwise, subtract line 11 from line 1 and enter the result. Mailing address 1040ez 12   Note. Mailing address 1040ez The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Mailing address 1040ez Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Mailing address 1040ez If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Mailing address 1040ez Write "Sec. Mailing address 1040ez 692(d)(2) Payment" and the amount to the right of the entry space. Mailing address 1040ez Also indicate whether a Form 1041 is being filed for the decedent's estate. Mailing address 1040ez If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Mailing address 1040ez Write “Sec. Mailing address 1040ez 692(d)(2) Payment” on the dotted line to the left of the entry space. Mailing address 1040ez How To Get Tax Help Special IRS assistance. Mailing address 1040ez   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Mailing address 1040ez We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. Mailing address 1040ez Call 1–866–562–5227 Monday through Friday In English–7 a. Mailing address 1040ez m. Mailing address 1040ez to 10 p. Mailing address 1040ez m. Mailing address 1040ez local time In Spanish–8 a. Mailing address 1040ez m. Mailing address 1040ez to 9:30 p. Mailing address 1040ez m. Mailing address 1040ez local time   The IRS web site at www. Mailing address 1040ez irs. Mailing address 1040ez gov has notices and other tax relief information. Mailing address 1040ez Check it periodically for any new guidance or to see if Congress has enacted new legislation. Mailing address 1040ez   Business taxpayers affected by the attacks can e-mail their questions to corp. Mailing address 1040ez disaster. Mailing address 1040ez relief@irs. Mailing address 1040ez gov. Mailing address 1040ez   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Mailing address 1040ez fema. Mailing address 1040ez gov. Mailing address 1040ez Other help from the IRS. Mailing address 1040ez   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Mailing address 1040ez By selecting the method that is best for you, you will have quick and easy access to tax help. Mailing address 1040ez Contacting your Taxpayer Advocate. Mailing address 1040ez   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Mailing address 1040ez   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Mailing address 1040ez While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Mailing address 1040ez   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Mailing address 1040ez Call the IRS at 1–800–829–1040. Mailing address 1040ez Call, write, or fax the Taxpayer Advocate office in your area. Mailing address 1040ez Call 1–800–829–4059 if you are a TTY/TDD user. Mailing address 1040ez   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Mailing address 1040ez Free tax services. Mailing address 1040ez   To find out what services are available, get Publication 910, Guide to Free Tax Services. Mailing address 1040ez It contains a list of free tax publications and an index of tax topics. Mailing address 1040ez It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Mailing address 1040ez Personal computer. Mailing address 1040ez With your personal computer and modem, you can access the IRS on the Internet at www. Mailing address 1040ez irs. Mailing address 1040ez gov. Mailing address 1040ez While visiting our web site, you can: Find answers to questions you may have. Mailing address 1040ez Download forms and publications or search for forms and pub
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Understanding Your CP145 Notice

We were unable to credit the full amount you requested to the succeeding tax period.


What you need to do

  • Read and review your notice carefully. It will explain why we were unable to apply the amount you requested to the following year’s taxes. It may also suggest additional steps for you to take, depending on your situation.
  • Compare our changes to the information on your tax return.
  • You don't need to do anything if you agree with the notice.
  • Correct the copy of your tax return that you kept for your records.
  • If you disagree with the notice, contact us at the toll-free number on the top right corner of your notice (within 60 days of the notice date).
  • Adjust this year’s tax payments to avoid any possible underpayment.

You may want to


Answers to Common Questions

Q. What should I do if I disagree with the changes you made?

A. If you disagree, contact us at the toll-free number listed on the top right corner of your notice.

Q. What do I say when I call the IRS?

A. Mention that you received a CP 145 notice and you need to review your account with a customer service representative. Be sure to have a copy of your notice and your tax return before you call.

Q. What should I do if I find you misapplied a payment or haven't credited a payment that I made?

A. Contact us with your information at the toll-free number listed on your notice. Please have your documentation (such as cancelled checks, amended return, etc.) ready when you call. Our representative will discuss the issue with you and give you further instructions.

Q. What if I need to make another correction to my account?

A. You'll need to file an amended return.

Q. What if I have tried to get answers and after contacting IRS several times have not been successful?

A. Call Taxpayer Advocate at 1-877-777-4778 or for TTY/TDD 1-800-829-4059.


Tips for the next tax period

Make sure that you claim the proper amount of credit on your next tax return. You may need to adjust your estimated tax payments or your federal tax deposits.

Page Last Reviewed or Updated: 10-Feb-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Mailing Address 1040ez

Mailing address 1040ez Publication 556 - Main Content Table of Contents Examination of ReturnsIf Your Return Is Examined Interest Netting Abatement of Interest Due to Error or Delay by the IRS Abatement of Interest for Individuals Affected by Presidentially Declared Disasters or Military or Terrorist Actions Offer in Compromise Appeal RightsAppeal Within the IRS Appeals to the Courts Refund or Credit of Overpayments Before Final Determination Claims for RefundTime for Filing a Claim for Refund Limit on Amount of Refund Processing Claims for Refund Reduced Refund How To Get Tax Help Examination of Returns Your return may be examined for a variety of reasons, and the examination may take place in any one of several ways. Mailing address 1040ez After the examination, if any changes to your tax are proposed, you can either agree with those changes and pay any additional tax you may owe, or you can disagree with the changes and appeal the decision. Mailing address 1040ez Examination selection criteria. Mailing address 1040ez   Your return may be selected for examination on the basis of computer scoring. Mailing address 1040ez A computer program called the Discriminant Inventory Function System (DIF) assigns a numeric score to each individual and some corporate tax returns after they have been processed. Mailing address 1040ez If your return is selected because of a high score under the DIF system, the potential is high that an examination of your return will result in a change to your income tax liability. Mailing address 1040ez   Your return may also be selected for examination on the basis of information received from third-party documentation, such as Forms 1099 and W-2, that does not match the information reported on your return. Mailing address 1040ez Or, your return may be selected to address both the questionable treatment of an item and to study the behavior of similar taxpayers (a market segment) in handling a tax issue. Mailing address 1040ez   In addition, your return may be selected as a result of information received from other sources on potential noncompliance with the tax laws or inaccurate filing. Mailing address 1040ez This information can come from a number of sources, including newspapers, public records, and individuals. Mailing address 1040ez The information is evaluated for reliability and accuracy before it is used as the basis of an examination or investigation. Mailing address 1040ez Notice of IRS contact of third parties. Mailing address 1040ez    The IRS must give you reasonable notice before contacting other persons about your tax matters. Mailing address 1040ez You must be given reasonable notice in advance that, in examining or collecting your tax liability, the IRS may contact third parties such as your neighbors, banks, employers, or employees. Mailing address 1040ez The IRS must also give you notice of specific contacts by providing you with a record of persons contacted on both a periodic basis and upon your request. Mailing address 1040ez    This provision does not apply: To any pending criminal investigation, When providing notice would jeopardize collection of any tax liability, Where providing notice may result in reprisal against any person, or When you authorized the contact. Mailing address 1040ez Taxpayer Advocate Service. Mailing address 1040ez   The Taxpayer Advocate Service is an independent organization within the IRS whose goal is to help taxpayers resolve problems with the IRS. Mailing address 1040ez If you have an ongoing issue with the IRS that has not been resolved through normal processes, or your problems with the IRS are causing financial difficulty, contact the Taxpayer Advocate Service. Mailing address 1040ez    Before contacting the Taxpayer Advocate Service, you should first discuss any problem with a supervisor. Mailing address 1040ez Your local Taxpayer Advocate will assist you if you are unable to resolve the problem with the supervisor. Mailing address 1040ez   For more information, see Publication 1546. Mailing address 1040ez See How To Get Tax Help , near the end of this publication, for more information about contacting the Taxpayer Advocate Service. Mailing address 1040ez Comments from small business. Mailing address 1040ez    The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards have been established to receive comments from small business about federal agency enforcement actions. Mailing address 1040ez The Ombudsman will annually evaluate the enforcement activities of each agency and rate their responsiveness to small business. Mailing address 1040ez If you wish to comment on the enforcement actions of the IRS, you can take any of the following steps. Mailing address 1040ez Fax your comments to 1-202-481-5719. Mailing address 1040ez Write to the following address: Office of the National Ombudsman U. Mailing address 1040ez S. Mailing address 1040ez Small Business Administration 409 3rd Street, SW Washington, DC 20416 Call 1-888-734-3247. Mailing address 1040ez Send an email to ombudsman@sba. Mailing address 1040ez gov. Mailing address 1040ez File a comment or complaint online at www. Mailing address 1040ez sba. Mailing address 1040ez gov/ombudsman. Mailing address 1040ez If Your Return Is Examined Some examinations are handled entirely by mail. Mailing address 1040ez Examinations not handled by mail can take place in your home, your place of business, an Internal Revenue office, or the office of your authorized representative. Mailing address 1040ez If the time, place, or method is not convenient for you, the examiner will try to work out something more suitable. Mailing address 1040ez However, the IRS makes the final determination of when, where, and how the examination will take place. Mailing address 1040ez Throughout the examination, you can act on your own behalf or have someone represent you or accompany you. Mailing address 1040ez If you filed a joint return, either you or your spouse, or both, can meet with the IRS. Mailing address 1040ez The person representing you can be any federally authorized practitioner, including an attorney, a certified public accountant, an enrolled agent (a person enrolled to practice before the IRS), an enrolled actuary, or the person who prepared the return and signed it as the preparer. Mailing address 1040ez If you want someone to represent you in your absence, you must furnish that person with proper written authorization. Mailing address 1040ez You can use Form 2848 or any other properly written authorization. Mailing address 1040ez If you want to consult with an attorney, a certified public accountant, an enrolled agent, or any other person permitted to represent a taxpayer during an interview for examining a tax return or collecting tax, you should make arrangements with that person to be available for the interview. Mailing address 1040ez In most cases, the IRS must suspend the interview and reschedule it. Mailing address 1040ez The IRS cannot suspend the interview if you are there because of an administrative summons. Mailing address 1040ez Third party authorization. Mailing address 1040ez   If you checked the box in the signature area of your income tax return (Form 1040, Form 1040A, or Form 1040EZ) to allow the IRS to discuss your return with another person (a third party designee), this authorization does not replace Form 2848. Mailing address 1040ez The box you checked on your return only authorizes the other person to receive information about the processing of your return and the status of your refund during the period your return is being processed. Mailing address 1040ez For more information, see the instructions for your return. Mailing address 1040ez Confidentiality privilege. Mailing address 1040ez   Generally, the same confidentiality protection that you have with an attorney also applies to certain communications that you have with federally authorized practitioners. Mailing address 1040ez   Confidential communications are those that: Advise you on tax matters within the scope of the practitioner's authority to practice before the IRS, Would be confidential between an attorney and you, and Relate to noncriminal tax matters before the IRS, or Relate to noncriminal tax proceedings brought in federal court by or against the United States. Mailing address 1040ez   In the case of communications in connection with the promotion of a person's participation in a tax shelter, the confidentiality privilege does not apply to written communications between a federally authorized practitioner and that person, any director, officer, employee, agent, or representative of that person, or any other person holding a capital or profits interest in that person. Mailing address 1040ez   A tax shelter is any entity, plan, or arrangement, a significant purpose of which is the avoidance or evasion of income tax. Mailing address 1040ez Recordings. Mailing address 1040ez    You can make an audio recording of the examination interview. Mailing address 1040ez Your request to record the interview should be made in writing. Mailing address 1040ez You must notify the examiner 10 days in advance and bring your own recording equipment. Mailing address 1040ez The IRS also can record an interview. Mailing address 1040ez If the IRS initiates the recording, you must be notified 10 days in advance and you can get a copy of the recording at your expense. Mailing address 1040ez Transfers to another area. Mailing address 1040ez    Generally, your return is examined in the area where you live. Mailing address 1040ez But if your return can be examined more quickly and conveniently in another area, such as where your books and records are located, you can ask to have the case transferred to that area. Mailing address 1040ez Repeat examinations. Mailing address 1040ez    The IRS tries to avoid repeat examinations of the same items, but sometimes this happens. Mailing address 1040ez If your tax return was examined for the same items in either of the 2 previous years and no change was proposed to your tax liability, please contact the IRS as soon as possible to see if the examination should be discontinued. Mailing address 1040ez The Examination An examination usually begins when you are notified that your return has been selected. Mailing address 1040ez The IRS will tell you which records you will need. Mailing address 1040ez The examination can proceed more easily if you gather your records before any interview. Mailing address 1040ez Any proposed changes to your return will be explained to you or your authorized representative. Mailing address 1040ez It is important that you understand the reasons for any proposed changes. Mailing address 1040ez You should not hesitate to ask about anything that is unclear to you. Mailing address 1040ez The IRS must follow the tax laws set forth by Congress in the Internal Revenue Code. Mailing address 1040ez The IRS also follows Treasury Regulations, other rules, and procedures that were written to administer the tax laws and court decisions. Mailing address 1040ez However, the IRS can lose cases that involve taxpayers with the same issue and still apply its interpretation of the law to your situation. Mailing address 1040ez Most taxpayers agree to changes proposed by examiners, and the examinations are closed at this level. Mailing address 1040ez If you do not agree, you can appeal any proposed change by following the procedures provided to you by the IRS. Mailing address 1040ez A more complete discussion of appeal rights is found later under Appeal Rights . Mailing address 1040ez If You Agree If you agree with the proposed changes, you can sign an agreement form and pay any additional tax you may owe. Mailing address 1040ez You must pay interest on any additional tax. Mailing address 1040ez If you pay when you sign the agreement, the interest is generally figured from the due date of your return (excluding any extension of time to file) to the date of your payment. Mailing address 1040ez If you do not pay the additional tax when you sign the agreement, you will receive a bill that includes interest. Mailing address 1040ez If you pay the amount due within 10 business days of the billing date, you will not have to pay more interest or penalties. Mailing address 1040ez This period is extended to 21 calendar days if the amount due is less than $100,000. Mailing address 1040ez If you are due a refund, you will receive it sooner if you sign the agreement form. Mailing address 1040ez You will be paid interest on the refund. Mailing address 1040ez If the IRS accepts your tax return as filed, you will receive a letter in a few weeks stating that the examiner proposed no changes to your return. Mailing address 1040ez You should keep this letter with your tax records. Mailing address 1040ez If You Do Not Agree If you do not agree with the proposed changes, the examiner will explain your appeal rights. Mailing address 1040ez If your examination takes place in an IRS office, you can request an immediate meeting with the examiner's supervisor to explain your position. Mailing address 1040ez If an agreement is reached, your case will be closed. Mailing address 1040ez If you cannot reach an agreement with the supervisor at this meeting, or if the examination took place outside of an IRS office, the examiner will write up your case explaining your position and the IRS's position. Mailing address 1040ez The examiner will forward your case for processing. Mailing address 1040ez Fast track mediation. Mailing address 1040ez   The IRS offers fast track mediation services to help taxpayers resolve many disputes resulting from: Examinations (audits), Offers in compromise, Trust fund recovery penalties, and Other collection actions. Mailing address 1040ez   Most cases that are not docketed in any court qualify for fast track mediation. Mailing address 1040ez Mediation can take place at a conference you request with a supervisor, or later. Mailing address 1040ez The process involves an Appeals Officer who has been trained in mediation. Mailing address 1040ez You may represent yourself at the mediation session, or someone else can act as your representative. Mailing address 1040ez For more information, see Publication 3605. Mailing address 1040ez 30-day letter and 90-day letter. Mailing address 1040ez   Within a few weeks after your closing conference with the examiner and/or supervisor, you will receive a package with: A letter (known as a 30-day letter) notifying you of your right to appeal the proposed changes within 30 days, A copy of the examination report explaining the examiner's proposed changes, An agreement or waiver form, and A copy of Publication 5. Mailing address 1040ez You generally have 30 days from the date of the 30-day letter to tell the IRS whether you will accept or appeal the proposed changes. Mailing address 1040ez The letter will explain what steps you should take, depending on which action you choose. Mailing address 1040ez Be sure to follow the instructions carefully. Mailing address 1040ez Appeal Rights are explained later. Mailing address 1040ez 90-day letter. Mailing address 1040ez   If you do not respond to the 30-day letter, or if you later do not reach an agreement with an Appeals Officer, the IRS will send you a 90-day letter, which is also known as a notice of deficiency. Mailing address 1040ez You will have 90 days (150 days if it is addressed to you outside the United States) from the date of this notice to file a petition with the Tax Court. Mailing address 1040ez Filing a petition with the Tax Court is discussed later under Appeals to the Courts and Tax Court . Mailing address 1040ez The notice will show the 90th (or 150th) day by which you must file your petition with the Tax Court. Mailing address 1040ez Suspension of interest and penalties. Mailing address 1040ez   Generally, the IRS has 3 years from the date you filed your return (or the date the return was due, if later) to assess any additional tax. Mailing address 1040ez However, if you file your return timely (including extensions), interest and certain penalties will be suspended if the IRS does not mail a notice to you, stating your liability and the basis for that liability, within a 36-month period beginning on the later of: The date on which you filed your tax return, or The due date (without extensions) of your tax return. Mailing address 1040ez If the IRS mails a notice after the 36-month period, interest and certain penalties applicable to the suspension period will be suspended. Mailing address 1040ez   The suspension period begins the day after the close of the 36-month period and ends 21 days after the IRS mails a notice to you stating your liability and the basis for that liability. Mailing address 1040ez Also, the suspension period applies separately to each notice stating your liability and the basis for that liability received by you. Mailing address 1040ez    The suspension does not apply to a: Failure-to-pay penalty, Fraudulent tax return, Penalty, interest, addition to tax, or additional amount with respect to any tax liability shown on your return or with respect to any gross misstatement, Penalty, interest, addition to tax, or additional amount with respect to any reportable transaction that is not adequately disclosed or any listed transaction, or Criminal penalty. Mailing address 1040ez Seeking relief from improperly assessed interest. Mailing address 1040ez   You can seek relief if interest is assessed for periods during which interest should have been suspended because the IRS did not mail a notice to you in a timely manner. Mailing address 1040ez   If you believe that interest was assessed with respect to a period during which interest should have been suspended, submit Form 843, writing “Section 6404(g) Notification” at the top of the form, with the IRS Service Center where you filed your return. Mailing address 1040ez The IRS will review the Form 843 and notify you whether interest will be abated. Mailing address 1040ez If the IRS does not abate interest, you can pay the disputed interest assessment and file a claim for refund. Mailing address 1040ez If your claim is denied or not acted upon within 6 months from the date you filed it, you can file suit for a refund in your United States District Court or in the United States Court of Federal Claims. Mailing address 1040ez   If you believe that an IRS officer or employee has made an unreasonable error or delay in performing a ministerial or managerial act (discussed later under Abatement of Interest Due to Error or Delay by the IRS ), file Form 843 with the IRS Service Center where you filed the tax return. Mailing address 1040ez If the IRS denies your claim, the Tax Court may be able to review that determination. Mailing address 1040ez See Tax Court can review failure to abate interest later under Abatement of Interest Due to Error or Delay by the IRS . Mailing address 1040ez If you later agree. Mailing address 1040ez    If you agree with the examiner's changes after receiving the examination report or the 30-day letter, sign and return either the examination report or the waiver form. Mailing address 1040ez Keep a copy for your records. Mailing address 1040ez You can pay any additional amount you owe without waiting for a bill. Mailing address 1040ez Include interest on the additional tax at the applicable rate. Mailing address 1040ez This interest rate is usually for the period from the due date of the return (excluding any extension of time to file) to the date of payment. Mailing address 1040ez The examiner can tell you the interest rate(s) or help you figure the amount. Mailing address 1040ez   You must pay interest on penalties and additions to tax for failing to file returns, for overstating valuations, for understating valuations on estate and gift tax returns, and for substantially understating tax liability. Mailing address 1040ez Interest is generally figured from the date (including extensions) the tax return is required to be filed to the date you pay the penalty and/or additions to tax. Mailing address 1040ez   If you pay the amount due within 10 business days after the date of notice and demand for immediate payment, you will not have to pay any additional penalties and interest. Mailing address 1040ez This period is extended to 21 calendar days if the amount due is less than $100,000. Mailing address 1040ez How To Stop Interest From Accruing If you think that you will owe additional tax at the end of the examination, you can stop the further accrual of interest by sending money to the IRS to cover all or part of the amount you think you will owe. Mailing address 1040ez Interest on part or all of any amount you owe will stop accruing on the date the IRS receives your money. Mailing address 1040ez You can send an amount either in the form of a deposit in the nature of a cash bond or as a payment of tax. Mailing address 1040ez Both a deposit and a payment stop any further accrual of interest. Mailing address 1040ez However, making a deposit or payment will stop the accrual of interest on only the amount you sent. Mailing address 1040ez Because of compounding rules, interest will continue to accrue on accrued interest, even though you have paid the underlying tax. Mailing address 1040ez To stop the accrual of interest on both tax and interest, you must make a deposit or payment for both the tax and interest that has accrued as of the date of deposit or payment. Mailing address 1040ez Payment or Deposit Deposits differ from payments in two ways: You can have all or part of your deposit returned to you without filing for a refund. Mailing address 1040ez However, if you request and receive your deposit and the IRS later assesses a deficiency for that period and type of tax, interest will be figured as if the funds were never on deposit. Mailing address 1040ez Also, your deposit will not be returned if one of the following situations applies: The IRS assesses a tax liability. Mailing address 1040ez The IRS determines that, by returning the deposit, it may not be able to collect a future deficiency. Mailing address 1040ez The IRS determines that the deposit should be applied against another tax liability. Mailing address 1040ez Deposits returned to you will include interest based on the Federal short-term rate determined under section 6621(b). Mailing address 1040ez The deposit returned will be treated as a tax payment to the extent of the disputed tax. Mailing address 1040ez A disputed tax means the amount of tax specified at the time of deposit as a reasonable estimate of the maximum amount of any tax owed by you, such as the deficiency proposed in the 30-day letter. Mailing address 1040ez Notice not mailed. Mailing address 1040ez    If you send money before the IRS mails you a notice of deficiency, you can ask the IRS to treat it as a deposit. Mailing address 1040ez You must make your request in writing. Mailing address 1040ez   If, after being notified of a proposed liability but before the IRS mails you a notice of deficiency, you send an amount large enough to cover the proposed liability, it will be considered a payment unless you request in writing that it be treated as a deposit. Mailing address 1040ez Keep copies of all correspondence you send to the IRS. Mailing address 1040ez   If the amount you send is at least as much as the proposed liability and you do not request that it be treated as a deposit, the IRS will not send you a notice of deficiency. Mailing address 1040ez If you do not receive a notice of deficiency, you cannot take your case to the Tax Court. Mailing address 1040ez See Tax Court , later under Appeal Rights . Mailing address 1040ez Notice mailed. Mailing address 1040ez    If, after the IRS mails the notice of deficiency, you send money without written instructions, it will be treated as a payment. Mailing address 1040ez You will still be able to petition the Tax Court. Mailing address 1040ez   If you send money after receiving a notice of deficiency and you have specified in writing that it is a “deposit in the nature of a cash bond,” the IRS will treat it as a deposit if you send it before either: The close of the 90-day or 150-day period for filing a petition with the Tax Court to appeal the deficiency, or The date the Tax Court decision is final, if you have filed a petition. Mailing address 1040ez Using a Deposit To Pay the Tax If you agree with the examiner's proposed changes after the examination, your deposit will be applied against any amount you may owe. Mailing address 1040ez The IRS will not mail you a notice of deficiency and you will not have the right to take your case to the Tax Court. Mailing address 1040ez If you do not agree to the full amount of the deficiency after the examination, the IRS will mail you a notice of deficiency. Mailing address 1040ez Your deposit will be applied against the proposed deficiency unless you write to the IRS before the end of the 90-day or 150-day period stating that you still want the money to be treated as a deposit. Mailing address 1040ez You will still have the right to take your case to the Tax Court. Mailing address 1040ez Installment Agreement Request You can request a monthly installment plan if you cannot pay the full amount you owe. Mailing address 1040ez To be valid, your request must be approved by the IRS. Mailing address 1040ez However, if you owe $10,000 or less in tax and you meet certain other criteria, the IRS must accept your request. Mailing address 1040ez Before you request an installment agreement, you should consider other less costly alternatives, such as a bank loan. Mailing address 1040ez You will continue to be charged interest and penalties on the amount you owe until it is paid in full. Mailing address 1040ez Unless your income is below a certain level, the fee for an approved installment agreement has increased to $105 ($52 if you make your payments by electronic funds withdrawal). Mailing address 1040ez If your income is below a certain level, you may qualify to pay a reduced fee of $43. Mailing address 1040ez For more information about installment agreements, see Form 9465, Installment Agreement Request. Mailing address 1040ez Interest Netting If you owe interest to the IRS on an underpayment for the same period the IRS owes you interest on an overpayment, the IRS will figure interest on the underpayment and overpayment at the same interest rate (up to the amount of the overpayment). Mailing address 1040ez As a result, the net rate is zero for that period. Mailing address 1040ez Abatement of Interest Due to Error or Delay by the IRS The IRS may abate (reduce) the amount of interest you owe if the interest is due to an unreasonable error or delay by an IRS officer or employee in performing a ministerial or managerial act (discussed later). Mailing address 1040ez Only the amount of interest on income, estate, gift, generation-skipping, and certain excise taxes can be reduced. Mailing address 1040ez The amount of interest will not be reduced if you or anyone related to you contributed significantly to the error or delay. Mailing address 1040ez Also, the interest will be reduced only if the error or delay happened after the IRS contacted you in writing about the deficiency or payment on which the interest is based. Mailing address 1040ez An audit notification letter is such a contact. Mailing address 1040ez The IRS cannot reduce the amount of interest due to a general administrative decision, such as a decision on how to organize the processing of tax returns. Mailing address 1040ez Ministerial act. Mailing address 1040ez    This is a procedural or mechanical act, not involving the exercise of judgment or discretion, during the processing of a case after all prerequisites (for example, conferences and review by supervisors) have taken place. Mailing address 1040ez A decision concerning the proper application of federal tax law (or other federal or state law) is not a ministerial act. Mailing address 1040ez Example 1. Mailing address 1040ez You move from one state to another before the IRS selects your tax return for examination. Mailing address 1040ez A letter stating that your return has been selected is sent to your old address and then forwarded to your new address. Mailing address 1040ez When you get the letter, you respond with a request that the examination be transferred to the area office closest to your new address. Mailing address 1040ez The examination group manager approves your request. Mailing address 1040ez After your request has been approved, the transfer is a ministerial act. Mailing address 1040ez The IRS can reduce the interest because of any unreasonable delay in transferring the case. Mailing address 1040ez Example 2. Mailing address 1040ez An examination of your return reveals tax due for which a notice of deficiency (90-day letter) will be issued. Mailing address 1040ez After you and the IRS discuss the issues, the notice is prepared and reviewed. Mailing address 1040ez After the review process, issuing the notice of deficiency is a ministerial act. Mailing address 1040ez If there is an unreasonable delay in sending the notice of deficiency to you, the IRS can reduce the interest resulting from the delay. Mailing address 1040ez Managerial act. Mailing address 1040ez    This is an administrative act during the processing of a case that involves the loss of records or the exercise of judgment or discretion concerning the management of personnel. Mailing address 1040ez A decision concerning the proper application of federal tax law (or other federal or state law) is not a managerial act. Mailing address 1040ez Example. Mailing address 1040ez A revenue agent is examining your tax return. Mailing address 1040ez During the middle of the examination, the agent is sent to an extended training course. Mailing address 1040ez The agent's supervisor decides not to reassign your case, so the work is unreasonably delayed until the agent returns. Mailing address 1040ez Interest from the unreasonable delay can be abated since both the decision to send the agent to the training class and not to reassign the case are managerial acts. Mailing address 1040ez How to request abatement of interest. Mailing address 1040ez    You request an abatement (reduction) of interest on Form 843. Mailing address 1040ez You should file the claim with the IRS Service Center where you filed the tax return that was affected by the error or delay. Mailing address 1040ez   If you have already paid the interest and you would like a credit or refund of interest paid, you must file Form 843 within 3 years from the date you filed your original return or 2 years from the date you paid the interest, whichever is later. Mailing address 1040ez If you have not paid any of the interest, these time limitations for filing Form 843 do not apply. Mailing address 1040ez   Generally, you should file a separate Form 843 for each tax period and each type of tax. Mailing address 1040ez However, complete only one Form 843 if the interest is from an IRS error or delay that affected your tax for more than one tax period or for more than one type of tax (for example, where 2 or more tax years were being examined). Mailing address 1040ez   If your request for abatement of interest is denied, you can appeal the decision to the IRS Appeals Office. Mailing address 1040ez Tax Court can review failure to abate interest. Mailing address 1040ez    The Tax Court can review the IRS's refusal to abate (reduce) interest if all of the following requirements are met: You filed a request for abatement of interest (Form 843) with the IRS after July 30,1996. Mailing address 1040ez The IRS has mailed you a notice of final determination or a notice of disallowance. Mailing address 1040ez You file a petition with the Tax Court within 180 days of the mailing of the notice of final determination or the notice of disallowance. Mailing address 1040ez   The following requirements must also be met: For individual and estate taxpayers — your net worth must not exceed $2 million as of the filing date of your petition for review. Mailing address 1040ez For this purpose, individuals filing a joint return shall be treated as separate individuals. Mailing address 1040ez For charities and certain cooperatives — you must not have more than 500 employees as of the filing date of your petition for review. Mailing address 1040ez For all other taxpayers — your net worth must not exceed $7 million, and you must not have more than 500 employees as of the filing date of your petition for review. Mailing address 1040ez Abatement of Interest for Individuals Affected by Presidentially Declared Disasters or Military or Terrorist Actions If you are (or were) affected by a Presidentially declared disaster occurring after 1996 or a terrorist or military action occurring after September 10, 2001, the IRS may abate (reduce) the amount of interest you owe on certain taxes. Mailing address 1040ez The IRS may abate interest for the period of any additional time to file or pay that the IRS provides on account of the disaster or the terrorist or military action. Mailing address 1040ez The IRS will issue a notice or news release indicating who are affected taxpayers and stating the period of relief. Mailing address 1040ez If you are eligible for relief from interest, but were charged interest for the period of relief, the IRS may retroactively abate your interest. Mailing address 1040ez To the extent possible, the IRS can take the following actions: Make appropriate adjustments to your account. Mailing address 1040ez Notify you when the adjustments are made. Mailing address 1040ez Refund any interest paid by you where appropriate. Mailing address 1040ez For more information on disaster area losses, see Disaster Area Losses in Publication 547. Mailing address 1040ez For more information on other tax relief for victims of terrorist attacks, see Publication 3920. Mailing address 1040ez Offer in Compromise In certain circumstances, the IRS will allow you to pay less than the full amount you owe. Mailing address 1040ez If you think you may qualify, you should submit your offer by filing Form 656, Offer in Compromise. Mailing address 1040ez The IRS may accept your offer for any of the following reasons: There is doubt about the amount you owe (or whether you owe it). Mailing address 1040ez There is doubt as to whether you can pay the amount you owe based on your financial situation. Mailing address 1040ez An economic hardship would result if you had to pay the full amount owed. Mailing address 1040ez Your case presents compelling reasons that the IRS determines are a sufficient basis for compromise. Mailing address 1040ez If your offer is rejected, you have 30 days to ask the Appeals Office of the IRS to reconsider your offer. Mailing address 1040ez The IRS offers fast track mediation services to help taxpayers resolve many issues including a dispute regarding an offer in compromise. Mailing address 1040ez For more information, see Publication 3605. Mailing address 1040ez Generally, if you submit an offer in compromise, the IRS will delay certain collection activities. Mailing address 1040ez The IRS usually will not levy (take) your property to settle your tax bill during the following periods: While the IRS is evaluating your offer in compromise. Mailing address 1040ez The 30 days immediately after the offer is rejected. Mailing address 1040ez While your timely-filed appeal is being considered by Appeals. Mailing address 1040ez Also, if the IRS rejects your original offer and you submit a revised offer within 30 days of the rejection, the IRS generally will not levy your property while it considers your revised offer. Mailing address 1040ez For more information about submitting an offer in compromise, see Form 656. Mailing address 1040ez Appeal Rights Because people sometimes disagree on tax matters, the IRS has an appeals system. Mailing address 1040ez Most differences can be settled within this system without expensive and time-consuming court trials. Mailing address 1040ez However, your reasons for disagreeing must come within the scope of the tax laws. Mailing address 1040ez For example, you cannot appeal your case based only on moral, religious, political, constitutional, conscientious, or similar grounds. Mailing address 1040ez In most instances, you may be eligible to take your case to court if you do not reach an agreement at your appeals conference, or if you do not want to appeal your case to the IRS Office of Appeals. Mailing address 1040ez See Appeals to the Courts , later, for more information. Mailing address 1040ez Appeal Within the IRS You can appeal an IRS tax decision to a local Appeals Office, which is separate from and independent of the IRS office taking the action you disagree with. Mailing address 1040ez The Appeals Office is the only level of appeal within the IRS. Mailing address 1040ez Conferences with Appeals Office personnel are held in an informal manner by correspondence, by telephone, or at a personal conference. Mailing address 1040ez If you want an appeals conference, follow the instructions in the letter you received. Mailing address 1040ez Your request will be sent to the Appeals Office to arrange a conference at a convenient time and place. Mailing address 1040ez You or your representative should be prepared to discuss all disputed issues at the conference. Mailing address 1040ez Most differences are settled at this level. Mailing address 1040ez If agreement is not reached at your appeals conference, you may be eligible to take your case to court. Mailing address 1040ez See Appeals to the Courts , later. Mailing address 1040ez Protests and Small Case Requests When you request an Appeals conference, you may also need to file either a formal written protest or a small case request with the office named in the letter you received. Mailing address 1040ez Also, see the special appeal request procedures in Publication 1660. Mailing address 1040ez Written protest. Mailing address 1040ez   You need to file a written protest in the following cases: All employee plan and exempt organization cases without regard to the dollar amount at issue. Mailing address 1040ez All partnership and S corporation cases without regard to the dollar amount at issue. Mailing address 1040ez All other cases, unless you qualify for the small case request procedure, or other special appeal procedures such as requesting Appeals consideration of liens, levies, seizures, or installment agreements. Mailing address 1040ez   If you must submit a written protest, see the instructions in Publication 5 about the information you need to provide. Mailing address 1040ez The IRS urges you to provide as much information as you can, as it will help speed up your appeal. Mailing address 1040ez That will save you both time and money. Mailing address 1040ez    Be sure to send the protest within the time limit specified in the letter you received. Mailing address 1040ez Small case request. Mailing address 1040ez   If the total amount for any tax period is not more than $25,000, you may make a small case request instead of filing a formal written protest. Mailing address 1040ez In figuring the total amount, include a proposed increase or decrease in tax (including penalties), or claimed refund. Mailing address 1040ez If you are making an offer in compromise, include total unpaid tax, penalty, and interest due. Mailing address 1040ez For a small case request, follow the instructions in our letter to you by sending a letter: Requesting Appeals consideration, Indicating the changes you do not agree with, and Indicating the reasons why you do not agree. Mailing address 1040ez Representation You can represent yourself at your appeals conference, or you can be represented by any federally authorized practitioner, including an attorney, a certified public accountant, an enrolled actuary, or an enrolled agent. Mailing address 1040ez If your representative attends a conference without you, he or she can receive or inspect confidential information only if you have filed a power of attorney or a tax information authorization. Mailing address 1040ez You can use a Form 2848 or any other properly written power of attorney or authorization. Mailing address 1040ez You can also bring witnesses to support your position. Mailing address 1040ez Confidentiality privilege. Mailing address 1040ez   Generally, the same confidentiality protection that you have with an attorney also applies to certain communications that you have with federally authorized practitioners. Mailing address 1040ez See Confidentiality privilege under If Your Return Is Examined , earlier. Mailing address 1040ez Appeals to the Courts If you and the IRS still disagree after the appeals conference, you may be entitled to take your case to the United States Tax Court, the United States Court of Federal Claims, or a United States District Court. Mailing address 1040ez These courts are independent of the IRS. Mailing address 1040ez If you elect to bypass the IRS's appeals system, you may be able to take your case to one of the courts listed above. Mailing address 1040ez However, a case petitioned to the United States Tax Court will normally be considered for settlement by an Appeals Officer before the Tax Court hears the case. Mailing address 1040ez If you unreasonably fail to pursue the IRS's appeals system, or if your case is intended primarily to cause a delay, or your position is frivolous or groundless, the Tax Court may impose a penalty of up to $25,000. Mailing address 1040ez See Appeal Within the IRS, earlier. Mailing address 1040ez Prohibition on requests to taxpayers to give up rights to bring civil action. Mailing address 1040ez   The Government cannot ask you to waive your right to sue the United States or a Government officer or employee for any action taken in connection with the tax laws. Mailing address 1040ez However, your right to sue can be waived if: You knowingly and voluntarily waive that right, The request to waive that right is made in writing to your attorney or other federally authorized practitioner, or The request is made in person and your attorney or other representative is present. Mailing address 1040ez Burden of proof. Mailing address 1040ez   For court proceedings resulting from examinations started after July 22, 1998, the IRS generally has the burden of proof for any factual issue if you have met the following requirements: You introduced credible evidence relating to the issue. Mailing address 1040ez You complied with all substantiation requirements of the Internal Revenue Code. Mailing address 1040ez You maintained all records required by the Internal Revenue Code. Mailing address 1040ez You cooperated with all reasonable requests by the IRS for information regarding the preparation and related tax treatment of any item reported on your tax return. Mailing address 1040ez You had a net worth of $7 million or less and not more than 500 employees at the time your tax liability is contested in any court proceeding if your tax return is for a corporation, partnership, or trust. Mailing address 1040ez    The burden of proof does not change on an issue when another provision of the tax laws requires a specific burden of proof with respect to that issue. Mailing address 1040ez Use of statistical information. Mailing address 1040ez   In the case of an individual, the IRS has the burden of proof in court proceedings based on any IRS reconstruction of income solely through the use of statistical information on unrelated taxpayers. Mailing address 1040ez Penalties. Mailing address 1040ez   The IRS has the burden of initially producing evidence in court proceedings with respect to the liability of any individual taxpayer for any penalty, addition to tax, or additional amount imposed by the tax laws. Mailing address 1040ez Recovering litigation or administrative costs. Mailing address 1040ez   These are the expenses that you pay to defend your position to the IRS or the courts. Mailing address 1040ez You may be able to recover reasonable litigation or administrative costs if all of the following conditions apply: You are the prevailing party. Mailing address 1040ez You exhaust all administrative remedies within the IRS. Mailing address 1040ez Your net worth is below a certain limit (see Net worth requirements , later). Mailing address 1040ez You do not unreasonably delay the proceeding. Mailing address 1040ez You apply for administrative costs within 90 days of the date on which the final decision of the IRS Office of Appeals as to the determination of the tax, interest, or penalty was mailed to you. Mailing address 1040ez You apply for litigation costs within the time frames provided by Tax Court Rule 231, found at http://www. Mailing address 1040ez ustaxcourt. Mailing address 1040ez gov  www. Mailing address 1040ez ustaxcourt. Mailing address 1040ez gov . Mailing address 1040ez   Prevailing party, reasonable litigation costs, and reasonable administrative costs are explained later. Mailing address 1040ez Note. Mailing address 1040ez If the IRS denies your award of administrative costs, and you want to appeal, you must petition the Tax Court within 90 days of the date on which the IRS mails the denial notice. Mailing address 1040ez Prevailing party. Mailing address 1040ez   Generally, you are the prevailing party if: You substantially prevail with respect to the amount in controversy or on the most significant tax issue or set of issues in question, and You meet the net worth requirements, discussed later. Mailing address 1040ez   You will not be treated as the prevailing party if the United States establishes that its position was substantially justified. Mailing address 1040ez The position of the United States is presumed not to be substantially justified if the IRS: Did not follow its applicable published guidance (such as regulations, revenue rulings, notices, announcements, private letter rulings, technical advice memoranda, and determination letters issued to the taxpayer) in the proceeding (This presumption can be overcome by evidence. Mailing address 1040ez ), or Has lost in courts of appeal for other circuits on substantially similar issues. Mailing address 1040ez   The court will generally decide who is the prevailing party. Mailing address 1040ez Reasonable litigation costs. Mailing address 1040ez   These include the following costs: Reasonable court costs. Mailing address 1040ez The reasonable costs of studies, analyses, engineering reports, tests, or projects found by the court to be necessary for the preparation of your case. Mailing address 1040ez The reasonable costs of expert witnesses. Mailing address 1040ez Attorney fees that generally may not exceed $125 maximum hourly rate as set by statute and indexed for inflation. Mailing address 1040ez See Attorney fees , later. Mailing address 1040ez Reasonable administrative costs. Mailing address 1040ez   These include the following costs: Any administrative fees or similar charges imposed by the IRS. Mailing address 1040ez The reasonable costs of studies, analyses, engineering reports, tests, or projects. Mailing address 1040ez The reasonable costs of expert witnesses. Mailing address 1040ez Attorney fees that generally may not exceed $125 per hour. Mailing address 1040ez See Attorney fees , later. Mailing address 1040ez Timing of costs. Mailing address 1040ez    Administrative costs can be awarded for costs incurred after the earliest of: The date the first letter of proposed deficiency is sent that allows you an opportunity to request administrative review in the IRS Office of Appeals, The date you receive notice of the IRS Office of Appeals' decision, or The date of the notice of deficiency. Mailing address 1040ez Net worth requirements. Mailing address 1040ez   An individual taxpayer may be able to recover litigation or administrative costs if the following requirements are met: For individuals — your net worth does not exceed $2 million as of the filing date of your petition for review. Mailing address 1040ez For this purpose, individuals filing a joint return are treated as separate individuals. Mailing address 1040ez For estates — your net worth does not exceed $2 million as of the date of the decedent's death. Mailing address 1040ez For charities and certain cooperatives — you do not have more than 500 employees as of the filing date of your petition for review. Mailing address 1040ez For all other taxpayers — as of the filing date of your petition for review, your net worth does not exceed $7 million, and you must not have more than 500 employees. Mailing address 1040ez Qualified offer rule. Mailing address 1040ez    You can also receive reasonable costs and fees and be treated as a prevailing party in a civil action or proceeding if: You make a qualified offer to the IRS to settle your case, The IRS does not accept that offer, and The tax liability (not including interest, unless interest is at issue) later determined by the court is equal to or less than the amount of your qualified offer. Mailing address 1040ez You must also meet the remaining requirements, including the exhaustion of administrative remedies and the net worth requirement, discussed earlier, to get the benefit of the qualified offer rule. Mailing address 1040ez Qualified offer. Mailing address 1040ez    This is a written offer made by you during the qualified offer period. Mailing address 1040ez It must specify both the offered amount of your liability (not including interest) and that it is a qualified offer. Mailing address 1040ez   To be a qualified offer, it must remain open from the date it is made until the earliest of: The date it is rejected, The date the trial begins, or 90 days from the date it is made. Mailing address 1040ez Qualified offer period. Mailing address 1040ez    This period begins on the day the IRS mails you the first letter of proposed deficiency that allows you to request review by the IRS Office of Appeals. Mailing address 1040ez It ends 30 days before your case is first set for trial. Mailing address 1040ez Attorney fees. Mailing address 1040ez   Attorney fees generally may not exceed $125 maximum hourly rate as set by statute and indexed for inflation. Mailing address 1040ez However, this amount can be higher in certain limited circumstances depending on the level of difficulty of the issues in the case and the local availability of tax expertise. Mailing address 1040ez See IRS. Mailing address 1040ez gov for more information. Mailing address 1040ez    Attorney fees include the fees paid by a taxpayer for the services of anyone who is authorized to practice before the Tax Court or before the IRS. Mailing address 1040ez In addition, attorney fees can be awarded in civil actions for unauthorized inspection or disclosure of a taxpayer's return or return information. Mailing address 1040ez   Fees can be awarded in excess of the actual amount charged if: You are represented for no fee, or for a nominal fee, as a pro bono service, and The award is paid to your representative or to your representative's employer. Mailing address 1040ez Jurisdiction for determination of employment status. Mailing address 1040ez    The Tax Court can review IRS employment status determinations (for example, whether individuals hired by you are in fact your employees or independent contractors) and the amount of employment tax under such determinations. Mailing address 1040ez Tax Court review can take place only if, in connection with an audit of any person, there is a controversy involving a determination by the IRS that either: One or more individuals performing services for that person are employees of that person, or That person is not entitled to relief under Section 530(a) of the Revenue Act of 1978 (discussed later). Mailing address 1040ez   The following rules also apply to a Tax Court review of employment status: A Tax Court petition to review these determinations can be filed only by the person for whom the services are performed, If you receive a Notice of Determination by certified or registered mail, you must file a petition for Tax Court review within 90 days of the date of mailing that notice (150 days if the notice is addressed to you outside the United States), If during the Tax Court proceeding, you begin to treat as an employee an individual whose employment status is at issue, the Tax Court will not consider that change in its decision, Assessment and collection of tax is suspended while the Tax Court review is taking place, Payment of the asserted employment tax deficiency is not required to petition the U. Mailing address 1040ez S. Mailing address 1040ez Tax Court for a determination of employment status. Mailing address 1040ez There can be a de novo review by the Tax Court (a review which does not consider IRS administrative findings), and At your request and with the Tax Court's agreement, small tax case procedures (discussed later) are available to simplify the case resolution process when the amount at issue (including additions to tax and penalties) is $50,000 or less for each tax period involved. Mailing address 1040ez   For further information, see Publication 3953, Questions and Answers About Tax Court Proceedings for Determination of Employment Status Under IRC Section 7436. Mailing address 1040ez Section 530(a) of the Revenue Act of 1978. Mailing address 1040ez   This section relieves an employer of certain employment tax responsibilities for individuals not treated as employees. Mailing address 1040ez It also provides relief to taxpayers under audit or involved in administrative or judicial proceedings. Mailing address 1040ez Tax Court review of request for relief from joint and several liability on a joint return. Mailing address 1040ez    As discussed later, at Relief from joint and several liability on a joint return under Claims for Refund, you can request relief from liability for tax you owe, plus related penalties and interest, that you believe should be paid by your spouse (or former spouse). Mailing address 1040ez You also can petition (ask) the Tax Court to review your request for innocent spouse relief or separation of liability if either: The IRS sends you a determination notice denying, in whole or in part, your request, or You do not receive a determination notice from the IRS within 6 months from the date you file Form 8857. Mailing address 1040ez   If you receive a determination notice, you must petition the Tax Court to review your request during the 90-day period that begins on the date the IRS mails the notice. Mailing address 1040ez See Publication 971 for more information. Mailing address 1040ez Note. Mailing address 1040ez Your spouse or former spouse may file a written protest and request an Appeals conference to protest your claim of innocent spouse relief or separation of liability. Mailing address 1040ez See Rev. Mailing address 1040ez Proc. Mailing address 1040ez 2003-19, which is on page 371 of the Internal Revenue Bulletin 2003-5 at  www. Mailing address 1040ez irs. Mailing address 1040ez gov/pub/irs-irbs/irb03-05. Mailing address 1040ez pdf. Mailing address 1040ez Tax Court You can take your case to the United States Tax Court if you disagree with the IRS over: Income tax, Estate tax, Gift tax, Employment tax involving IRS employment status determinations, or Certain excise taxes of private foundations, public charities, qualified pension and other retirement plans, or real estate investment trusts. Mailing address 1040ez For information on Tax Court review of a determination of employment status, see Jurisdiction for determination of employment status, earlier. Mailing address 1040ez For information on Tax Court review of an IRS refusal to abate interest, see Tax Court can review failure to abate interest, earlier under Examination of Returns. Mailing address 1040ez For information on Tax Court review of Appeals determinations with respect to lien notices and proposed levies, see Publication 1660. Mailing address 1040ez You cannot take your case to the Tax Court before the IRS sends you a notice of deficiency. Mailing address 1040ez You can only appeal your case if you file a petition within 90 days from the date the notice is mailed to you (150 days if it is addressed to you outside the United States). Mailing address 1040ez The notice will show the 90th (or 150th) day by which you must file your petition with the Tax Court. Mailing address 1040ez Withdrawal of notice of deficiency. Mailing address 1040ez If you consent, the IRS can withdraw a notice of deficiency. Mailing address 1040ez A notice of deficiency may be rescinded if the notice was issued as a result of an administrative error; the taxpayer submits information establishing the actual tax due is less than the amount shown in the notice; the taxpayer specifically requests a conference with the appropriate Appeals office for the purpose of entering into settlement negotiations. Mailing address 1040ez However, the notice may be rescinded only if the appropriate Appeals office first decides that the case is susceptible to agreement. Mailing address 1040ez See Revenue Procedure 98-54 for a more detailed explanation of the requirements. Mailing address 1040ez Once withdrawn, the limits on credits, refunds, and assessments concerning the notice are void, and you and the IRS have the rights and obligations that you had before the notice was issued. Mailing address 1040ez The suspension of any time limitation while the notice of deficiency was issued will not change when the notice is withdrawn. Mailing address 1040ez After the notice is withdrawn, you cannot file a petition with the Tax Court based on the notice. Mailing address 1040ez Also, the IRS can later issue a notice of deficiency in a greater or lesser amount than the amount in the withdrawn deficiency. Mailing address 1040ez Generally, the Tax Court hears cases before any tax has been assessed and paid; however, you can pay the tax after the notice of deficiency has been issued and still petition the Tax Court for review. Mailing address 1040ez If you do not file your petition on time, the proposed tax will be assessed, a bill will be sent, and you will not be able to take your case to the Tax Court. Mailing address 1040ez Under the law, you must pay the tax within 21 days (10 business days if the amount is $100,000 or more). Mailing address 1040ez Collection can proceed even if you think that the amount is excessive. Mailing address 1040ez Publication 594 explains IRS collection procedures. Mailing address 1040ez If you filed your petition on time, the court will schedule your case for trial at a location convenient to you. Mailing address 1040ez You can represent yourself before the Tax Court or you can be represented by anyone admitted to practice before that court. Mailing address 1040ez Small tax case procedure. Mailing address 1040ez   If the amount in your case is $50,000 or less for any 1 tax year or period, you can request that your case be handled under the small tax case procedure. Mailing address 1040ez If the Tax Court approves, you can present your case to the Tax Court for a decision that is final and that you cannot appeal. Mailing address 1040ez You can get more information regarding the small tax case procedure and other Tax Court matters from the United States Tax Court, 400 Second Street, N. Mailing address 1040ez W. Mailing address 1040ez , Washington, DC 20217. Mailing address 1040ez More information can be found on the Tax Court's website at www. Mailing address 1040ez ustaxcourt. Mailing address 1040ez gov. Mailing address 1040ez Motion to request redetermination of interest. Mailing address 1040ez   In certain cases, you can file a motion asking the Tax Court to redetermine the amount of interest on either an underpayment or an overpayment. Mailing address 1040ez You can do this only in a situation that meets all of the following requirements: The IRS has assessed a deficiency that was determined by the Tax Court. Mailing address 1040ez The assessment included interest. Mailing address 1040ez You have paid the entire amount of the deficiency plus the interest claimed by the IRS. Mailing address 1040ez The Tax Court has found that you made an overpayment. Mailing address 1040ez You must file the motion within one year after the decision of the Tax Court becomes final. Mailing address 1040ez District Court and Court of Federal Claims Generally, the District Courts and the Court of Federal Claims hear tax cases only after you have paid the entire tax and penalties, and filed a claim for a credit or refund. Mailing address 1040ez The taxpayer may litigate certain types of employment tax cases in either the United States District Court or the United States Court of Federal Claims. Mailing address 1040ez Before taxpayers can initiate suit in either of these courts with respect to certain employment taxes, they will have to pay, at a minimum, the employment tax assessment attributable to one employee for any one quarter and file a claim for refund of the tax. Mailing address 1040ez Once the claim for refund is denied or 6 months elapse without any action by the IRS, the taxpayer may initiate suit. Mailing address 1040ez As explained later under Claims for Refund, you can file a claim with the IRS for a credit or refund if you think that the tax you paid is incorrect or excessive. Mailing address 1040ez If your claim is totally or partially disallowed by the IRS, you should receive a notice of claim disallowance. Mailing address 1040ez If the IRS does not act on your claim within 6 months from the date you filed it, you can then file suit for a refund. Mailing address 1040ez You generally must file suit for a credit or refund no later than 2 years after the IRS informs you that your claim has been rejected. Mailing address 1040ez However, you can file suit if it has been 6 months since you filed your claim and the IRS has not yet delivered a decision. Mailing address 1040ez You can file suit for a credit or refund in your United States District Court or in the United States Court of Federal Claims. Mailing address 1040ez However, you cannot appeal to the United States Court of Federal Claims if your claim is for credit or refund of a penalty that relates to promoting an abusive tax shelter or to aiding and abetting the understatement of tax liability on someone else's return. Mailing address 1040ez For information about procedures for filing suit in either court, contact the Clerk of your District Court or of the United States Court of Federal Claims. Mailing address 1040ez Refund or Credit of Overpayments Before Final Determination Any court with proper jurisdiction, including the Tax Court, can order the IRS to refund any part of a tax deficiency that the IRS collects from you during a period when the IRS is not permitted to assess that deficiency, or to levy or engage in any court proceeding to collect that deficiency. Mailing address 1040ez In addition, the court can order a refund of any part of an overpayment determined by the Tax Court that is not at issue on appeal to a higher court. Mailing address 1040ez The court can order these refunds before its decision on the case is final. Mailing address 1040ez Taxpayers should thoroughly review IRS settlement offers before signing a Tax Court Decision document to ensure that all adjustments are correct, including the inclusion of any tax credits that the taxpayer is allowed to claim. Mailing address 1040ez Note. Mailing address 1040ez The court may no longer order a refund of an overpayment after the case is final. Mailing address 1040ez Generally, the IRS is not permitted to take action on a tax deficiency during: The 90-day (or 150-day if outside the United States) period that you have to petition a notice of deficiency to the Tax Court, or The period that the case is under appeal if a bond is provided. Mailing address 1040ez Claims for Refund If you believe you have overpaid your tax, you have a limited amount of time in which to file a claim for a credit or refund. Mailing address 1040ez You can claim a credit or refund by filing Form 1040X. Mailing address 1040ez See Time for Filing a Claim for Refund , later. Mailing address 1040ez File your claim by mailing it to the IRS Service Center where you filed your original return. Mailing address 1040ez File a separate form for each year or period involved. Mailing address 1040ez Include an explanation of each item of income, deduction, or credit on which you are basing your claim. Mailing address 1040ez Corporations should file Form 1120X, Amended U. Mailing address 1040ez S. Mailing address 1040ez Corporation Income Tax Return, or other form appropriate to the type of credit or refund claimed. Mailing address 1040ez See Publication 3920 for information on filing claims for tax forgiveness for individuals affected by terrorist attacks. Mailing address 1040ez Requesting a copy of your tax return. Mailing address 1040ez   You can obtain a copy of the actual return and all attachments you filed with the IRS for an earlier year. Mailing address 1040ez This includes a copy of the Form W-2 or Form 1099 filed with your return. Mailing address 1040ez Use Form 4506 to make your request. Mailing address 1040ez You will be charged a fee, which you must pay when you submit Form 4506. Mailing address 1040ez Requesting a copy of your tax account information. Mailing address 1040ez   Use Form 4506-T, Request for Transcript of Tax Return, to request free copies of your tax return transcript, tax account transcript, record of account, verification of nonfiling, or Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript. Mailing address 1040ez The tax return transcript contains most of the line items of a tax return. Mailing address 1040ez A tax account transcript contains information on the financial status of the account, such as payments, penalty assessments, and adjustments. Mailing address 1040ez A record of account is a combination of line item information and later adjustments to the account. Mailing address 1040ez Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript contains data from these information returns. Mailing address 1040ez Penalty for erroneous claim for refund. Mailing address 1040ez   If you claim an excessive amount of tax refund or credit relating to income tax (other than a claim relating to the earned income credit), you may be liable for a penalty of 20% of the amount that is determined to be excessive. Mailing address 1040ez An excessive amount is the amount of the claim for refund or credit that is more than the amount of claim allowable for the tax year. Mailing address 1040ez The penalty may be waived if you can show that you had a reasonable basis for making the claim. Mailing address 1040ez Time for Filing a Claim for Refund Generally, you must file a claim for a credit or refund within 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. Mailing address 1040ez If you do not file a claim within this period, you may no longer be entitled to a credit or a refund. Mailing address 1040ez If the due date to file a return or a claim for a credit or refund is a Saturday, Sunday, or legal holiday, it is filed on time if it is filed on the next business day. Mailing address 1040ez Returns you filed before the due date are considered filed on the due date. Mailing address 1040ez This is true even when the due date is a Saturday, Sunday, or legal holiday. Mailing address 1040ez Disaster area claims for refund. Mailing address 1040ez   If you live in a Presidentially declared disaster area or are affected by terroristic or military action, the deadline to file a claim for a refund may be postponed. Mailing address 1040ez This section discusses the special rules that apply to Presidentially declared disaster area refunds. Mailing address 1040ez    A Presidentially declared disaster is a disaster that occurred in an area declared by the President to be eligible for federal assistance under the Disaster Relief and Emergency Assistance Act. Mailing address 1040ez Postponed refund deadlines. Mailing address 1040ez   The IRS may postpone for up to 1 year the deadlines for filing a claim for refund. Mailing address 1040ez The postponement can be used by taxpayers who are affected by a Presidentially declared disaster. Mailing address 1040ez The IRS may also postpone deadlines for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Mailing address 1040ez For more information, see Publication 547. Mailing address 1040ez   If any deadline is postponed, the IRS will publicize the postponement in your area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin. Mailing address 1040ez A list of the areas eligible for assistance under the Disaster Relief and Emergency Assistance Act is available at the Federal Emergency Management Agency (FEMA) website at www. Mailing address 1040ez fema. Mailing address 1040ez gov and at the IRS website at www. Mailing address 1040ez irs. Mailing address 1040ez gov. Mailing address 1040ez Nonfilers can get refund of overpayments paid within 3-year period. Mailing address 1040ez   The Tax Court can consider taxes paid during the 3-year period preceding the date of a notice of deficiency for determining any refund due to a nonfiler. Mailing address 1040ez This means that if you do not file your return, and you receive a notice of deficiency in the third year after the due date (with extensions) of your return and file suit with the Tax Court to contest the notice of deficiency, you may be able to receive a refund of excessive amounts paid within the 3-year period preceding the date of the notice of deficiency. Mailing address 1040ez The IRS may postpone for up to 1 year certain tax deadlines, including the time for filing claims for refund, for taxpayers who are affected by a terrorist attack occurring after September 10, 2001. Mailing address 1040ez For more information, see Publication 3920. Mailing address 1040ez Claim for refund by estates electing the installment method of payment. Mailing address 1040ez   In certain cases where an estate has elected to make tax payments through the installment method, the executor can file a suit for refund with a U. Mailing address 1040ez S. Mailing address 1040ez District Court or the U. Mailing address 1040ez S. Mailing address 1040ez Court of Federal Claims before all the installment payments have been made. Mailing address 1040ez However, all the following must be true before a suit can be filed: The estate consists largely of an interest in a closely-held business. Mailing address 1040ez All installment payments due on or before the date the suit is filed have been made. Mailing address 1040ez No accelerated installment payments have been made. Mailing address 1040ez No Tax Court case is pending with respect to any estate tax liability. Mailing address 1040ez If a notice of deficiency was issued to the estate regarding its liability for estate tax, the time for petitioning the Tax Court has passed. Mailing address 1040ez No proceeding is pending for a declaratory judgment by the Tax Court on whether the estate is eligible to pay tax in installments. Mailing address 1040ez The executor has not included any previously litigated issues in the current suit for refund. Mailing address 1040ez The executor does not discontinue making installment payments timely, while the court considers the suit for refund. Mailing address 1040ez    If in its final decision on the suit for refund the court redetermines the estate's tax liability, the IRS must refund any part of the estate tax amount that is disallowed. Mailing address 1040ez This includes any part of the disallowed amount previously collected by the IRS. Mailing address 1040ez Protective claim for refund. Mailing address 1040ez   If your right to a refund is contingent on future events and may not be determinable until after the time period for filing a claim for refund expires, you can file a protective claim for refund. Mailing address 1040ez A protective claim can be either a formal claim or an amended return for credit or refund. Mailing address 1040ez Protective claims are often based on current litigation or expected changes in the tax law, other legislation, or regulations. Mailing address 1040ez A protective claim preserves your right to claim a refund when the contingency is resolved. Mailing address 1040ez A protective claim does not have to state a particular dollar amount or demand an immediate refund. Mailing address 1040ez However, to be valid, a protective claim must: Be in writing and be signed, Include your name, address, social security number or individual taxpayer identification number, and other contact information, Identify and describe the contingencies affecting the claim, Clearly alert the IRS to the essential nature of the claim, and Identify the specific year(s) for which a refund is sought. Mailing address 1040ez   Generally, the IRS will delay action on the protective claim until the contingency is resolved. Mailing address 1040ez Once the contingency is resolved, the IRS may obtain additional information necessary to process the claim and then either allow or disallow the claim. Mailing address 1040ez   Mail your protective claim for refund to the address listed in the instructions for Form 1040X, under Where To File. Mailing address 1040ez Exceptions The limits on your claim for refund can be affected by the type of item that forms the basis of your claim. Mailing address 1040ez Special refunds. Mailing address 1040ez   If you file a claim for refund based on one of the items listed below, the limits discussed earlier under Time for Filing a Claim for Refund may not apply. Mailing address 1040ez These special items are: A bad debt, A worthless security, A payment or accrual of foreign tax, A net operating loss carryback, and A carryback of certain tax credits. Mailing address 1040ez   The limits discussed earlier also may not apply if you have signed an agreement to extend the period of assessment of tax. Mailing address 1040ez For information on special rules on filing claims for an individual affected by a terrorist attack, see Publication 3920. Mailing address 1040ez Periods of financial disability. Mailing address 1040ez   If you are an individual (not a corporation or other taxpaying entity), the period of limitations on credits and refunds can be suspended during periods when you cannot manage your financial affairs because of physical or mental impairment that is medically determinable and either: Has lasted or can be expected to last continuously for at least 12 months, or Can be expected to result in death. Mailing address 1040ez    The period for filing a claim for refund will not be suspended for any time that someone else, such as your spouse or guardian, was authorized to act for you in financial matters. Mailing address 1040ez   To claim financial disability, you generally must submit the following statements with your claim for credit or refund: A written statement signed by a physician, qualified to make the determination, that sets forth: The name and a description of your physical or mental impairment, The physician's medical opinion that your physical or mental impairment prevented you from managing your financial affairs, The physician's medical opinion that your physical or mental impairment was or can be expected to result in death, or that it has lasted (or can be expected to last) for a continuous period of not less than 12 months, and To the best of the physician's knowledge, the specific time period during which you were prevented by such physical or mental impairment from managing your financial affairs, and A written statement by the person signing the claim for credit or refund that no person, including your spouse, was authorized to act on your behalf in financial matters during the period described in paragraph (1)(d) of the physician's statement. Mailing address 1040ez Alternatively, if a person was authorized to act on your behalf in financial matters during any part of the period described in that paragraph, the beginning and ending dates of the period of time the person was so authorized. Mailing address 1040ez    The period of limitations will not be suspended on any claim for refund that (without regard to this provision) was barred as of July 22, 1998. Mailing address 1040ez Limit on Amount of Refund If you file your claim within 3 years after filing your return, the credit or refund cannot be more than the part of the tax paid wi