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State Income Tax Filing

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State Income Tax Filing

State income tax filing 9. State income tax filing   Dispositions of Property Used in Farming Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Section 1231 Gains and LossesNonrecaptured section 1231 losses. State income tax filing Depreciation RecaptureSection 1245 Property Section 1250 Property Installment Sale Other Dispositions Other GainsExceptions. State income tax filing Amount to report as ordinary income. State income tax filing Applicable percentage. State income tax filing Amount to report as ordinary income. State income tax filing Applicable percentage. State income tax filing Introduction When you dispose of property used in your farm business, your taxable gain or loss is usually treated as ordinary income (which is taxed at the same rates as wages and interest income) or capital gain (which is generally taxed at lower rates) under the rules for section 1231 transactions. State income tax filing When you dispose of depreciable property (section 1245 property or section 1250 property) at a gain, you may have to recognize all or part of the gain as ordinary income under the depreciation recapture rules. State income tax filing Any gain remaining after applying the depreciation recapture rules is a section 1231 gain, which may be taxed as a capital gain. State income tax filing Gains and losses from property used in farming are reported on Form 4797, Sales of Business Property. State income tax filing Table 9-1 contains examples of items reported on Form 4797 and refers to the part of that form on which they first should be reported. State income tax filing Topics - This chapter discusses: Section 1231 gains and losses Depreciation recapture Other gains Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. State income tax filing Section 1231 Gains and Losses Section 1231 gains and losses are the taxable gains and losses from section 1231 transactions (explained below). State income tax filing Their treatment as ordinary or capital gains depends on whether you have a net gain or a net loss from all of your section 1231 transactions in the tax year. State income tax filing Table 9-1. State income tax filing Where to First Report Certain Items on Form 4797 Type of property Held 1 year  or less Held more than  1 year 1 Depreciable trade or business property:       a Sold or exchanged at a gain Part II Part III (1245, 1250)   b Sold or exchanged at a loss Part II Part I 2 Farmland held less than 10 years for which soil, water, or land clearing expenses were deducted:       a Sold at a gain Part II Part III (1252)   b Sold at a loss Part II Part I 3 All other farmland Part II Part I 4 Disposition of cost-sharing payment property described in section 126 Part II Part III (1255) 5 Cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes: Held less  than 24 mos. State income tax filing Held 24 mos. State income tax filing  or more   a Sold at a gain Part II Part III (1245)   b Sold at a loss Part II Part I   c Raised cattle and horses sold at a gain Part II Part I 6 Livestock other than cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes: Held less  than 12 mos. State income tax filing Held 12 mos. State income tax filing   or more   a Sold at a gain Part II Part III (1245)   b Sold at a loss Part II Part I   c Raised livestock sold at a gain Part II Part I If you have a gain from a section 1231 transaction, first determine whether any of the gain is ordinary income under the depreciation recapture rules (explained later). State income tax filing Do not take that gain into account as section 1231 gain. State income tax filing Section 1231 transactions. State income tax filing   Gain or loss on the following transactions is subject to section 1231 treatment. State income tax filing Sale or exchange of cattle and horses. State income tax filing The cattle and horses must be held for draft, breeding, dairy, or sporting purposes and held for 24 months or longer. State income tax filing Sale or exchange of other livestock. State income tax filing This livestock must be held for draft, breeding, dairy, or sporting purposes and held for 12 months or longer. State income tax filing Other livestock includes hogs, mules, sheep, goats, donkeys, and other fur-bearing animals. State income tax filing Other livestock does not include poultry. State income tax filing Sale or exchange of depreciable personal property. State income tax filing This property must be used in your business and held longer than 1 year. State income tax filing Generally, property held for the production of rents or royalties is considered to be used in a trade or business. State income tax filing Examples of depreciable personal property include farm machinery and trucks. State income tax filing It also includes amortizable section 197 intangibles. State income tax filing Sale or exchange of real estate. State income tax filing This property must be used in your business and held longer than 1 year. State income tax filing Examples are your farm or ranch (including barns and sheds). State income tax filing Sale or exchange of unharvested crops. State income tax filing The crop and land must be sold, exchanged, or involuntarily converted at the same time and to the same person, and the land must have been held longer than 1 year. State income tax filing You cannot keep any right or option to reacquire the land directly or indirectly (other than a right customarily incident to a mortgage or other security transaction). State income tax filing Growing crops sold with a leasehold on the land, even if sold to the same person in a single transaction, are not included. State income tax filing Distributive share of partnership gains and losses. State income tax filing Your distributive share must be from the sale or exchange of property listed above and held longer than 1 year (or for the required period for certain livestock). State income tax filing Cutting or disposal of timber. State income tax filing Special rules apply if you owned the timber longer than 1 year and elect to treat timber cutting as a sale or exchange, or you enter into a cutting contract, as described in chapter 8 under Timber . State income tax filing Condemnation. State income tax filing The condemned property (defined in chapter 11) must have been held longer than 1 year. State income tax filing It must be business property or a capital asset held in connection with a trade or business or a transaction entered into for profit, such as investment property. State income tax filing It cannot be property held for personal use. State income tax filing Casualty or theft. State income tax filing The casualty or theft must have affected business property, property held for the production of rents or royalties, or investment property (such as notes and bonds). State income tax filing You must have held the property longer than 1 year. State income tax filing However, if your casualty or theft losses are more than your casualty or theft gains, neither the gains nor the losses are taken into account in the section 1231 computation. State income tax filing Section 1231 does not apply to personal casualty gains and losses. State income tax filing See chapter 11 for information on how to treat those gains and losses. State income tax filing If the property is not held for the required holding period, the transaction is not subject to section 1231 treatment, and any gain or loss is ordinary income reported in Part II of Form 4797. State income tax filing See Table 9-1. State income tax filing Property for sale to customers. State income tax filing   A sale, exchange, or involuntary conversion of property held mainly for sale to customers is not a section 1231 transaction. State income tax filing If you will get back all, or nearly all, of your investment in the property by selling it rather than by using it up in your business, it is property held mainly for sale to customers. State income tax filing Treatment as ordinary or capital. State income tax filing   To determine the treatment of section 1231 gains and losses, combine all of your section 1231 gains and losses for the year. State income tax filing If you have a net section 1231 loss, it is an ordinary loss. State income tax filing If you have a net section 1231 gain, it is ordinary income up to your nonrecaptured section 1231 losses from previous years, explained next. State income tax filing The rest, if any, is long-term capital gain. State income tax filing Nonrecaptured section 1231 losses. State income tax filing   Your nonrecaptured section 1231 losses are your net section 1231 losses for the previous 5 years that have not been applied against a net section 1231 gain by treating the gain as ordinary income. State income tax filing These losses are applied against your net section 1231 gain beginning with the earliest loss in the 5-year period. State income tax filing Example. State income tax filing In 2013, Ben has a $2,000 net section 1231 gain. State income tax filing To figure how much he has to report as ordinary income and long-term capital gain, he must first determine his section 1231 gains and losses from the previous 5-year period. State income tax filing From 2008 through 2012 he had the following section 1231 gains and losses. State income tax filing Year Amount 2008 -0- 2009 -0- 2010 ($2,500) 2011 -0- 2012 $1,800   Ben uses this information to figure how to report his net section 1231 gain for 2013 as shown below. State income tax filing 1) Net section 1231 gain (2013) $2,000 2) Net section 1231 loss (2010) ($2,500)   3) Net section 1231 gain (2012) 1,800   4) Remaining net section 1231 loss from prior 5 years ($700)   5) Gain treated as  ordinary income $700 6) Gain treated as long-term  capital gain $1,300 His remaining net section 1231 loss from 2010 is completely recaptured in 2013. State income tax filing Depreciation Recapture If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if it is otherwise nontaxable) as ordinary income. State income tax filing To figure any gain that must be reported as ordinary income, you must keep permanent records of the facts necessary to figure the depreciation or amortization allowed or allowable on your property. State income tax filing For more information, see chapter 3 of Publication 544. State income tax filing Section 1245 Property A gain on the disposition of section 1245 property is treated as ordinary income to the extent of depreciation allowed or allowable. State income tax filing Any recognized gain that is more than the part that is ordinary income is a section 1231 gain. State income tax filing See Treatment as ordinary or capital under Section 1231 Gains and Losses , earlier. State income tax filing Section 1245 property includes any property that is or has been subject to an allowance for depreciation or amortization and that is any of the following types of property. State income tax filing Personal property (either tangible or intangible). State income tax filing Other tangible property (except buildings and their structural components) used as any of the following. State income tax filing See Buildings and structural components below. State income tax filing An integral part of manufacturing, production, or extraction, or of furnishing certain services. State income tax filing A research facility in any of the activities in (a). State income tax filing A facility in any of the activities in (a) above, for the bulk storage of fungible commodities (discussed later). State income tax filing That part of real property (not included in (2)) with an adjusted basis reduced by (but not limited to) the following. State income tax filing Amortization of certified pollution control facilities. State income tax filing The section 179 expense deduction. State income tax filing Deduction for clean-fuel vehicles and certain refueling property. State income tax filing Expenditures to remove architectural and transportation barriers to the handicapped and elderly. State income tax filing Certain reforestation expenditures (as described under Reforestation Costs in chapter 7. State income tax filing Single purpose agricultural (livestock) or horticultural structures. State income tax filing Storage facilities (except buildings and their structural components) used in distributing petroleum or any primary product of petroleum. State income tax filing Buildings and structural components. State income tax filing   Section 1245 property does not include buildings and structural components. State income tax filing The term building includes a house, barn, warehouse, or garage. State income tax filing The term structural component includes walls, floors, windows, doors, central air conditioning systems, light fixtures, etc. State income tax filing   Do not treat a structure that is essentially machinery or equipment as a building or structural component. State income tax filing Also, do not treat a structure that houses property used as an integral part of an activity as a building or structural component if the structure's use is so closely related to the property's use that the structure can be expected to be replaced when the property it initially houses is replaced. State income tax filing   The fact that the structure is specially designed to withstand the stress and other demands of the property and cannot be used economically for other purposes indicates it is closely related to the use of the property it houses. State income tax filing Structures such as oil and gas storage tanks, grain storage bins, and silos are not treated as buildings, but as section 1245 property. State income tax filing Facility for bulk storage of fungible commodities. State income tax filing   This is a facility used mainly for the bulk storage of fungible commodities. State income tax filing Bulk storage means storage of a commodity in a large mass before it is used. State income tax filing For example, if a facility is used to store oranges that have been sorted and boxed, it is not used for bulk storage. State income tax filing To be fungible, a commodity must be such that one part may be used in place of another. State income tax filing Gain Treated as Ordinary Income The gain treated as ordinary income on the sale, exchange, or involuntary conversion of section 1245 property, including a sale and leaseback transaction, is the lesser of the following amounts. State income tax filing The depreciation (which includes any section 179 deduction claimed) and amortization allowed or allowable on the property. State income tax filing The gain realized on the disposition (the amount realized from the disposition minus the adjusted basis of the property). State income tax filing For any other disposition of section 1245 property, ordinary income is the lesser of (1) above or the amount by which its fair market value (FMV) is more than its adjusted basis. State income tax filing For details, see chapter 3 of Publication 544. State income tax filing Use Part III of Form 4797 to figure the ordinary income part of the gain. State income tax filing Depreciation claimed on other property or claimed by other taxpayers. State income tax filing   Depreciation and amortization include the amounts you claimed on the section 1245 property as well as the following depreciation and amortization amounts. State income tax filing Amounts you claimed on property you exchanged for, or converted to, your section 1245 property in a like-kind exchange or involuntary conversion. State income tax filing For details on exchanges of property that are not taxable, see Like-Kind Exchanges in chapter 8. State income tax filing Amounts a previous owner of the section 1245 property claimed if your basis is determined with reference to that person's adjusted basis (for example, the donor's depreciation deductions on property you received as a gift and part of the transfer is a sale or exchange). State income tax filing Example. State income tax filing Jeff Free paid $120,000 for a tractor in 2012. State income tax filing On February 23, 2013, he traded it for a chopper and paid an additional $30,000. State income tax filing To figure his depreciation deduction on the chopper for the current year, Jeff continues to use the basis of the tractor as he would have before the trade. State income tax filing Jeff can also depreciate the additional $30,000 for the chopper. State income tax filing Depreciation and amortization. State income tax filing   Depreciation and amortization deductions that must be recaptured as ordinary income include (but are not limited to) the following items. State income tax filing See Depreciation Recapture in chapter 3 of Publication 544 for more details. State income tax filing Ordinary depreciation deductions. State income tax filing Section 179 deduction (see chapter 7). State income tax filing Any special depreciation allowance. State income tax filing Amortization deductions for all the following costs. State income tax filing Acquiring a lease. State income tax filing Lessee improvements. State income tax filing Pollution control facilities. State income tax filing Reforestation expenses. State income tax filing Section 197 intangibles. State income tax filing Qualified disaster expenses. State income tax filing Franchises, trademarks, and trade names acquired before August 11, 1993. State income tax filing Example. State income tax filing You file your returns on a calendar year basis. State income tax filing In February 2011, you bought and placed in service for 100% use in your farming business a light-duty truck (5-year property) that cost $10,000. State income tax filing You used the half-year convention and your MACRS deductions for the truck were $1,500 in 2011 and $2,550 in 2012. State income tax filing You did not claim the section 179 expense deduction for the truck. State income tax filing You sold it in May 2013 for $7,000. State income tax filing The MACRS deduction in 2013, the year of sale, is $893 (½ of $1,785). State income tax filing Figure the gain treated as ordinary income as follows. State income tax filing 1) Amount realized $7,000 2) Cost (February 2011) $10,000   3) Depreciation allowed or allowable (MACRS deductions: $1,500 + $2,550 + $893) 4,943   4) Adjusted basis (subtract line 3 from line 2) $5,057 5) Gain realized (subtract line 4 from line 1) 1,943 6) Gain treated as ordinary income (lesser of line 3 or line 5) $1,943 Depreciation allowed or allowable. State income tax filing   You generally use the greater of the depreciation allowed or allowable when figuring the part of gain to report as ordinary income. State income tax filing If, in prior years, you have consistently taken proper deductions under one method, the amount allowed for your prior years will not be increased even though a greater amount would have been allowed under another proper method. State income tax filing If you did not take any deduction at all for depreciation, your adjustments to basis for depreciation allowable are figured by using the straight line method. State income tax filing This treatment applies only when figuring what part of the gain is treated as ordinary income under the rules for section 1245 depreciation recapture. State income tax filing Disposition of plants and animals. State income tax filing   If you elect not to use the uniform capitalization rules (see chapter 6), you must treat any plant you produce as section 1245 property. State income tax filing If you have a gain on the property's disposition, you must recapture the pre-productive expenses you would have capitalized if you had not made the election by treating the gain, up to the amount of these expenses, as ordinary income. State income tax filing For section 1231 transactions, show these expenses as depreciation on Form 4797, Part III, line 22. State income tax filing For plant sales that are reported on Schedule F (1040), Profit or Loss From Farming, this recapture rule does not change the reporting of income because the gain is already ordinary income. State income tax filing You can use the farm-price method or the unit-livestock-price method discussed in  chapter 2 to figure these expenses. State income tax filing Example. State income tax filing Janet Maple sold her apple orchard in 2013 for $80,000. State income tax filing Her adjusted basis at the time of sale was $60,000. State income tax filing She bought the orchard in 2006, but the trees did not produce a crop until 2009. State income tax filing Her pre-productive expenses were $6,000. State income tax filing She elected not to use the uniform capitalization rules. State income tax filing Janet must treat $6,000 of the gain as ordinary income. State income tax filing Section 1250 Property Section 1250 property includes all real property subject to an allowance for depreciation that is not and never has been section 1245 property. State income tax filing It includes buildings and structural components that are not section 1245 property (discussed earlier). State income tax filing It includes a leasehold of land or section 1250 property subject to an allowance for depreciation. State income tax filing A fee simple interest in land is not section 1250 property because, like land, it is not depreciable. State income tax filing Gain on the disposition of section 1250 property is treated as ordinary income to the extent of additional depreciation allowed or allowable. State income tax filing To determine the additional depreciation on section 1250 property, see Depreciation Recapture in chapter 3 of Publication 544. State income tax filing You will not have additional depreciation if any of the following apply to the property disposed of. State income tax filing You figured depreciation for the property using the straight line method or any other method that does not result in depreciation that is more than the amount figured by the straight line method and you have held the property longer than 1 year. State income tax filing You chose the alternate ACRS (straight line) method for the property, which was a type of 15-, 18-, or 19-year real property covered by the section 1250 rules. State income tax filing The property was nonresidential real property placed in service after 1986 (or after July 31, 1986, if the choice to use MACRS was made) and you held it longer than 1 year. State income tax filing These properties are depreciated using the straight line method. State income tax filing Installment Sale If you report the sale of property under the installment method, any depreciation recapture under section 1245 or 1250 is taxable as ordinary income in the year of sale. State income tax filing This applies even if no payments are received in that year. State income tax filing If the gain is more than the depreciation recapture income, report the rest of the gain using the rules of the installment method. State income tax filing For this purpose, include the recapture income in your installment sale basis to determine your gross profit on the installment sale. State income tax filing If you dispose of more than one asset in a single transaction, you must separately figure the gain on each asset so that it may be properly reported. State income tax filing To do this, allocate the selling price and the payments you receive in the year of sale to each asset. State income tax filing Report any depreciation recapture income in the year of sale before using the installment method for any remaining gain. State income tax filing For more information on installment sales, see chapter 10. State income tax filing Other Dispositions Chapter 3 of Publication 544 discusses the tax treatment of the following transfers of depreciable property. State income tax filing By gift. State income tax filing At death. State income tax filing In like-kind exchanges. State income tax filing In involuntary conversions. State income tax filing Publication 544 also explains how to handle a single transaction involving multiple properties. State income tax filing Other Gains This section discusses gain on the disposition of farmland for which you were allowed either of the following. State income tax filing Deductions for soil and water conservation expenditures (section 1252 property). State income tax filing Exclusions from income for certain cost sharing payments (section 1255 property). State income tax filing Section 1252 property. State income tax filing   If you disposed of farmland you held more than 1 year and less than 10 years at a gain and you were allowed deductions for soil and water conservation expenses for the land, as discussed in chapter 5, you must treat part of the gain as ordinary income and treat the balance as section 1231 gain. State income tax filing Exceptions. State income tax filing   Do not treat gain on the following transactions as gain on section 1252 property. State income tax filing Disposition of farmland by gift. State income tax filing Transfer of farm property at death (except for income in respect of a decedent). State income tax filing For more information, see Regulations section 1. State income tax filing 1252-2. State income tax filing Amount to report as ordinary income. State income tax filing   You report as ordinary income the lesser of the following amounts. State income tax filing Your gain (determined by subtracting the adjusted basis from the amount realized from a sale, exchange, or involuntary conversion, or the FMV for all other dispositions). State income tax filing The total deductions allowed for soil and water conservation expenses multiplied by the applicable percentage, discussed next. State income tax filing Applicable percentage. State income tax filing   The applicable percentage is based on the length of time you held the land. State income tax filing If you dispose of your farmland within 5 years after the date you acquired it, the percentage is 100%. State income tax filing If you dispose of the land within the 6th through 9th year after you acquired it, the applicable percentage is reduced by 20% a year for each year or part of a year you hold the land after the 5th year. State income tax filing If you dispose of the land 10 or more years after you acquired it, the percentage is 0%, and the entire gain is a section 1231 gain. State income tax filing Example. State income tax filing You acquired farmland on January 19, 2005. State income tax filing On October 3, 2013, you sold the land at a $30,000 gain. State income tax filing Between January 1 and October 3, 2013, you incur soil and water conservation expenditures of $15,000 for the land that are fully deductible in 2013. State income tax filing The applicable percentage is 40% since you sold the land within the 8th year after you acquired it. State income tax filing You treat $6,000 (40% of $15,000) of the $30,000 gain as ordinary income and the $24,000 balance as a section 1231 gain. State income tax filing Section 1255 property. State income tax filing   If you receive certain cost-sharing payments on property and you exclude those payments from income (as discussed in chapter 3), you may have to treat part of any gain as ordinary income and treat the balance as a section 1231 gain. State income tax filing If you chose not to exclude these payments, you will not have to recognize ordinary income under this provision. State income tax filing Amount to report as ordinary income. State income tax filing   You report as ordinary income the lesser of the following amounts. State income tax filing The applicable percentage of the total excluded cost-sharing payments. State income tax filing The gain on the disposition of the property. State income tax filing You do not report ordinary income under this rule to the extent the gain is recognized as ordinary income under sections 1231 through 1254, 1256, and 1257. State income tax filing However, if applicable, gain reported under this rule must be reported regardless of any contrary provisions (including nonrecognition provisions) under any other section. State income tax filing Applicable percentage. State income tax filing   The applicable percentage of the excluded cost-sharing payments to be reported as ordinary income is based on the length of time you hold the property after receiving the payments. State income tax filing If the property is held less than 10 years after you receive the payments, the percentage is 100%. State income tax filing After 10 years, the percentage is reduced by 10% a year, or part of a year, until the rate is 0%. State income tax filing Form 4797, Part III. State income tax filing   Use Form 4797, Part III, to figure the ordinary income part of a gain from the sale, exchange, or involuntary conversion of section 1252 property and section 1255 property. State income tax filing Prev  Up  Next   Home   More Online Publications
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Understanding Your CP3219A Notice

We've received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. The notice explains how the amount was calculated and how you can challenge it in U.S Tax Court.


What you need to do

  • Read the notice carefully – it explains the proposed increase or decrease in your tax. Note: The amounts shown as due on the notice may not match your previous notice because not all items can be challenged in tax court.
  • If you agree with the changes – sign the enclosed Form 5564, Notice of Deficiency - Waiver, and mail to the address shown on the notice.
  • If you don’t agree with the changes – you have the right to challenge the proposed changes by filing a petition with the U.S. Tax Court no later than the date listed on the notice. The Court can't consider your case if the petition is filed late.
  • If you don’t agree with the changes and have additional information – mail the information to the address listed on the notice. Our review won't extend the time you have to file a petition with the U.S. Tax Court.

You may want to…


Answers to Common Questions

Why did I receive the notice?

We received information from a third party that doesn’t match the information you reported on your return. This affects your tax return.

Is the notice a bill?

No. It shows the information we’ve received and how it affects your tax. It also provides you contact information for filing a petition with the tax court.

Can I get an extension of time to respond?

No. Once the CP3219A, Notice of Deficiency has been issued, we are unable to extend the time you have to respond or to file a petition with the U.S. Tax Court.

What do I need to do?

If you agree, sign the Form 5564, Notice of Deficiency - Waiver response form and mail to the address on the notice.

What if the information is wrong or if I disagree?

If you want us to consider additional information, send it to us, along with a written explanation supporting your position. You may contact us with the phone number provided on the first page of the notice. You may want to contact whoever reported the information and ask them to correct it. You should send your response to us as soon as possible, since we can't extend the time you have to file a petition with the tax court.

The information is wrong because someone else is using my name and social security number. What can I do?

Call us and let us know. You also can use this link to go to our Identity theft information webpage to find out more about what you can do.

I reported the information but I reported it incorrectly. Can I call you to correct my return?

We can accept your information over the phone for incorrectly reported information as long as the mistake doesn't increase or decrease your tax. If the information you provide over the phone isn't enough to resolve all issues with your case, we're unable to extend the time you have to file a petition with the tax court.

Do I need to amend my return?

If the information displayed in the “Changes to your tax return” section of the notice is correct, you don't need to amend your return unless you have additional income, credits or expenses to report. If you agree with our notice, follow the instructions to sign the Form 5564, Notice of Deficiency - Waiver and return it to us in the envelope provided. 

If you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return. You can receive help at an IRS Taxpayer Assistance Center.

I want to check a copy of my original return. I don’t have one. How can I get one?

You can get a transcript of your return on our ”Order a Transcript” webpage at irs.gov. You also can get one by completing and sending us a Form 4506-T, Request for Transcript of Tax Return. We can't extend the time allowed to petition the tax court.

I don’t want a transcript of my return. I want a copy. How can I get one?

Did an accountant or some other person prepare your return? You could ask them for a copy.

I can’t get a copy of my return from a tax preparer. How else can I get a copy of it?

You can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax Return. We charge a fee for tax return requests.

How can I find an IRS Taxpayer Assistance Center?

We have centers located throughout the country. Our website has directions on how to find the center nearest to you.

Why did it take you so long to contact me about this matter?

Our computer systems match the information you report on your tax return with information reported by employers, banks, businesses, and others. This matching takes several months to complete.

The notice says my taxes will increase. Will I be charged interest on the money I owe?

Yes, interest accrues on the unpaid balance until it is paid in full.

What happens if I can’t pay the full amount I owe?

You can make a payment plan with us when you can’t pay the full amount you owe.

How can I make a payment plan?

Call us at the toll-free number on the top right corner of your notice to talk about payment plans or learn more about them at this web page.


Tips for next year

You can avoid future problems by:

  • keeping accurate and full records
  • waiting until you get all of your income statements before filing your tax return
  • checking the records you get from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they're correct
  • including all your income on your tax return
  • following the instructions on how to report income, expenses and deductions
  • filing an amended tax return for any information you receive after you’ve filed your return

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 28-Feb-2014

The State Income Tax Filing

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