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State income tax rate Publication 947 - Main Content Table of Contents Practice Before the IRSWhat Is Practice Before the IRS? Who Can Practice Before the IRS? Who Cannot Practice Before the IRS? How Does an Individual Become Enrolled? What Are the Rules of Practice? Authorizing a RepresentativeWhat Is a Power of Attorney? When Is a Power of Attorney Required? When Is a Power of Attorney Not Required? How Do I Fill Out Form 2848? What Happens to the Power of Attorney When Filed? How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). State income tax rate Practice Before the IRS The Office of Professional Responsibility and the Return Preparer Office generally are responsible for administering and enforcing the regulations governing practice before the IRS. State income tax rate The Office of Professional Responsibility generally has responsibility for matters related to practitioner conduct and exclusive responsibility for discipline, including disciplinary proceedings and sanctions. State income tax rate The Return Preparer Office is responsible for matters related to the authority to practice, including acting on applications for enrollment and administering competency testing and continuing education. State income tax rate What Is Practice Before the IRS? Practice before the IRS covers all matters relating to any of the following. State income tax rate Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS. State income tax rate Representing a taxpayer at conferences, hearings, or meetings with the IRS. State income tax rate Preparing and filing documents, including tax returns, with the IRS for a taxpayer. State income tax rate Providing a client with written advice which has a potential for tax avoidance or evasion. State income tax rate Furnishing information at the request of the IRS or appearing as a witness for the taxpayer is not practice before the IRS. State income tax rate Who Can Practice Before the IRS? The following individuals can practice before the IRS. State income tax rate However, any individual who is recognized to practice (a recognized representative) must be designated as the taxpayer's representative and file a written declaration with the IRS stating that he or she is authorized and qualified to represent a particular taxpayer. State income tax rate Form 2848 can be used for this purpose. State income tax rate Attorneys. State income tax rate   Any attorney who is not currently under suspension or disbarment from practice before the IRS and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. State income tax rate Certified public accountants (CPAs). State income tax rate   Any CPA who is not currently under suspension or disbarment from practice before the IRS and who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. State income tax rate Enrolled agents. State income tax rate   Any enrolled agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. State income tax rate Enrolled retirement plan agents. State income tax rate   Any enrolled retirement plan agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. State income tax rate The practice of enrolled retirement plan agents is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. State income tax rate Enrolled actuaries. State income tax rate   Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. State income tax rate The practice of enrolled actuaries is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. State income tax rate Student. State income tax rate    Under certain circumstances, a student who is supervised by a practitioner may request permission to represent another person before the IRS. State income tax rate For more information, see Authorization for special appearances, later. State income tax rate Registered tax return preparers and unenrolled return preparers. State income tax rate   A registered tax return preparer is an individual who has passed an IRS competency test and is authorized to prepare and sign tax returns as the preparer. State income tax rate An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or regulations) to sign the return. State income tax rate   Registered tax return preparers and unenrolled return preparers may only represent taxpayers before revenue agents, customer service representatives, or similar officers and employees of the Internal Revenue Service (including the Taxpayer Advocate Service) during an examination of the taxable year or period covered by the tax return they prepared and signed. State income tax rate Registered tax return preparers and unenrolled return preparers cannot represent taxpayers, regardless of the circumstances requiring representation, before appeals officers, revenue officers, counsel or similar officers or employees of the Internal Revenue Service or the Department of Treasury. State income tax rate Registered tax return preparers and unenrolled return preparers cannot execute closing agreements, extend the statutory period for tax assessments or collection of tax, execute waivers, execute claims for refund, or sign any document on behalf of a taxpayer. State income tax rate   If the unenrolled return preparer does not meet the requirements for limited representation, you may file Form 8821 to allow the preparer to inspect your tax information and receive copies of notices sent to you by the IRS. State income tax rate See Form 8821. State income tax rate Practice denied. State income tax rate   Any individual engaged in limited practice before the IRS who is involved in disreputable conduct is subject to disciplinary action. State income tax rate Disreputable conduct includes, but is not limited to, the list of items under Incompetence and Disreputable Conduct shown later under What Are the Rules of Practice. State income tax rate Other individuals who may serve as representatives. State income tax rate   Because of their special relationship with a taxpayer, the following individuals can represent the specified taxpayers before the IRS, provided they present satisfactory identification and, except in the case of an individual described in (1) below, proof of authority to represent the taxpayer. State income tax rate An individual. State income tax rate An individual can represent himself or herself before the IRS and does not have to file a written declaration of qualification and authority. State income tax rate A family member. State income tax rate An individual can represent members of his or her immediate family. State income tax rate Immediate family includes a spouse, child, parent, brother, or sister of the individual. State income tax rate An officer. State income tax rate A bona fide officer of a corporation (including a parent, subsidiary, or other affiliated corporation), association, or organized group can represent the corporation, association, or organized group. State income tax rate An officer of a governmental unit, agency, or authority, in the course of his or her official duties, can represent the organization before the IRS. State income tax rate A partner. State income tax rate A general partner may represent the partnership before the IRS. State income tax rate An employee. State income tax rate A regular full-time employee can represent his or her employer. State income tax rate An employer can be, but is not limited to, an individual, partnership, corporation (including a parent, subsidiary, or other affiliated corporation), association, trust, receivership, guardianship, estate, organized group, governmental unit, agency, or authority. State income tax rate A fiduciary. State income tax rate A fiduciary (trustee, executor, personal representative, administrator, receiver, or guardian) stands in the position of a taxpayer and acts as the taxpayer, not as a representative. State income tax rate See Fiduciary under When Is a Power of Attorney Not Required, later. State income tax rate Representation Outside the United States Any individual may represent an individual or entity, who is outside the United States, before personnel of the IRS when such representation occurs outside the United States. State income tax rate See section 10. State income tax rate 7(c)(1)(vii) of Circular 230. State income tax rate Authorization for Special Appearances The Commissioner of Internal Revenue, or delegate, can authorize an individual who is not otherwise eligible to practice before the IRS to represent another person for a particular matter. State income tax rate The prospective representative must request this authorization in writing from the Office of Professional Responsibility. State income tax rate However, it is granted only when extremely compelling circumstances exist. State income tax rate If granted, the Commissioner, or delegate, will issue a letter that details the conditions related to the appearance and the particular tax matter for which the authorization is granted. State income tax rate The authorization letter should not be confused with a letter from an IRS center advising an individual that he or she has been assigned a Centralized Authorization File (CAF) number. State income tax rate The issuance of a CAF number does not indicate that an individual is either recognized or authorized to practice before the IRS. State income tax rate It merely confirms that a centralized file for authorizations has been established for the individual under that number. State income tax rate Students in LITCs and the STCP. State income tax rate   A student who works in a Low Income Taxpayer Clinic (LITC) or Student Tax Clinic Program (STCP) who is supervised by a practitioner may request permission to represent another person before the IRS. State income tax rate Authorization requests must be made to the Office of Professional Responsibility. State income tax rate If granted, a letter authorizing the student's special appearance and detailing any conditions related to the appearance will be issued. State income tax rate Students receiving an authorization letter generally can represent taxpayers before any IRS function or office subject to any conditions in the authorization letter. State income tax rate If you intend to have a student represent you, review the authorization letter and ask your student, your student's supervisor, or the Office of Professional Responsibility if you have questions about the terms of the authorization. State income tax rate Who Cannot Practice Before the IRS? In general, individuals who are not eligible or who have lost the privilege as a result of certain actions cannot practice before the IRS. State income tax rate If an individual loses eligibility to practice, the IRS will not recognize a power of attorney that names the individual as a representative. State income tax rate Corporations, associations, partnerships, and other persons that are not individuals. State income tax rate   These organizations (or persons) are not eligible to practice before the IRS. State income tax rate Loss of Eligibility Generally, individuals lose their eligibility to practice before the IRS in the following ways. State income tax rate Not meeting the requirements for renewal of enrollment (such as continuing professional education). State income tax rate Requesting to be placed in inactive retirement status. State income tax rate Being suspended or disbarred by the Office of Professional Responsibility for violating the regulations governing practice before the IRS. State income tax rate Failure to meet requirements. State income tax rate   Individuals who fail to comply with the requirements for eligibility for renewal of enrollment will be notified by the IRS. State income tax rate The notice will explain the reason for noncompliance and provide the individual with an opportunity to furnish information for reconsideration. State income tax rate The individual has 60 days from the date of the notice to respond. State income tax rate Inactive roster. State income tax rate   An individual will be placed on the roster of inactive individuals for a period of three years, if he or she: Fails to respond timely to the notice of noncompliance with the renewal requirements, Fails to file timely the application for renewal, or Does not satisfy the requirements of eligibility for renewal. State income tax rate The individual must file an application for renewal and satisfy all requirements for renewal after being placed in inactive status. State income tax rate Otherwise, at the conclusion of the next renewal cycle, he or she will be removed from the roster and the enrollment or registration terminated. State income tax rate Inactive retirement status. State income tax rate   Individuals who request to be placed in an inactive retirement status will be ineligible to practice before the IRS. State income tax rate They must continue to adhere to all renewal requirements. State income tax rate They can be reinstated to an active enrollment status by filing an application for renewal and providing evidence that they have completed the required continuing professional education hours for the enrollment cycle or registration year. State income tax rate Suspension and disbarment. State income tax rate   Individuals authorized to practice before the IRS are subject to disciplinary proceedings and may be suspended or disbarred for violating any regulation governing practice before the IRS. State income tax rate This includes engaging in acts of disreputable conduct. State income tax rate For more information, see Incompetence and Disreputable Conduct under What are the Rules of Practice, later. State income tax rate   Practitioners who are suspended in a disciplinary proceeding are not allowed to practice before the IRS during the period of suspension. State income tax rate See What Is Practice Before the IRS, earlier. State income tax rate   Practitioners who are disbarred in a disciplinary proceeding are not allowed to practice before the IRS. State income tax rate However, a practitioner can seek reinstatement from the Office of Professional Responsibility five years after disbarment. State income tax rate   If the practitioner seeks reinstatement, he or she may not practice before the IRS until the Office of Professional Responsibility authorizes reinstatement. State income tax rate The Office of Professional Responsibility may reinstate the practitioner if it is determined that: The practitioner's future conduct is not likely to be in violation of the regulations, and Granting the reinstatement would not be contrary to the public interest. State income tax rate How Does an Individual Become Enrolled? The Return Preparer Office can grant enrollment to practice before the IRS to an applicant who demonstrates special competence in tax matters by passing a written examination administered by the IRS. State income tax rate Enrollment also can be granted to an applicant who qualifies because of past service and technical experience in the IRS. State income tax rate In either case, certain application forms, discussed next, must be filed. State income tax rate Additionally, an applicant must not have engaged in any conduct that would justify suspension or disbarment from practice before the IRS. State income tax rate See Incompetence and Disreputable Conduct, later. State income tax rate Form 2587. State income tax rate   Applicants can apply to take the special enrollment examination by filing Form 2587, Application for Special Enrollment Examination. State income tax rate Form 2587 can be filed online, by mail, or by fax. State income tax rate For more information, see instructions and fees listed on the form. State income tax rate To get Form 2587, see How To Get Tax Help, later. State income tax rate Form 23 and Form 23-EP. State income tax rate   Individuals who have passed the examination or are applying on the basis of past service and technical experience with the IRS can apply for enrollment by filing Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, or Form 23-EP, Application for Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent. State income tax rate The application must include a check or money order in the amount of the fee shown on Form 23 or Form 23-EP. State income tax rate Alternatively, payment may be made electronically pursuant to instructions on the forms. State income tax rate To get Form 23 or Form 23-EP, see How To Get Tax Help, later. State income tax rate Form 5434. State income tax rate   An individual may apply as an enrolled actuary on the basis of past employment with the IRS and technical experience by filing Form 5434, Application for Enrollment, with the Joint Board for the Enrollment of Actuaries. State income tax rate The application must include a check or money order in the amount of the fee shown on Form 5434. State income tax rate To get Form 5434, see How To Get Tax Help, later. State income tax rate Period of enrollment. State income tax rate   An enrollment card will be issued to each individual whose enrollment application is approved. State income tax rate The individual is enrolled until the expiration date shown on the enrollment card or certificate. State income tax rate To continue practicing beyond the expiration date, the individual must request renewal of the enrollment by filing Form 8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service, or Form 8554-EP, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent (ERPA). State income tax rate What Are the Rules of Practice? The rules governing practice before the IRS are published in the Code of Federal Regulations at 31 C. State income tax rate F. State income tax rate R. State income tax rate part 10 and reprinted in Treasury Department Circular No. State income tax rate 230 (Circular 230). State income tax rate An attorney, CPA, enrolled agent, enrolled retirement plan agent, registered tax return preparer, or enrolled actuary authorized to practice before the IRS (referred to hereafter as a practitioner) has the duty to perform certain acts and is restricted from performing other acts. State income tax rate In addition, a practitioner cannot engage in disreputable conduct (discussed later). State income tax rate Any practitioner who does not comply with the rules of practice or engages in disreputable conduct is subject to disciplinary action. State income tax rate Also, unenrolled preparers must comply with the rules of practice and conduct to exercise the privilege of limited practice before the IRS. State income tax rate See Publication 470 for a discussion of the special rules for limited practice by unenrolled preparers. State income tax rate Duties Practitioners must promptly submit records or information requested by officers or employees of the IRS, except when the practitioner believes on reasonable belief and good faith that the information is privileged. State income tax rate Communications with respect to tax advice between a federally authorized tax practitioner and a taxpayer generally are confidential to the same extent that communication would be privileged if it were between a taxpayer and an attorney if the advice relates to: Noncriminal tax matters before the IRS, or Noncriminal tax proceedings brought in federal court by or against the United States. State income tax rate Communications regarding corporate tax shelters. State income tax rate   This protection of tax advice communications does not apply to any written communications between a federally authorized tax practitioner and any person, including a director, shareholder, officer, employee, agent, or representative of a corporation if the communication involves the promotion of the direct or indirect participation of the corporation in any tax shelter. State income tax rate Duty to advise. State income tax rate   A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return, document, affidavit, or other required paper, has the responsibility to advise the client promptly of the noncompliance, error, or omission, and the consequences of the noncompliance, error, or omission. State income tax rate Due diligence. State income tax rate   A practitioner must exercise due diligence when performing the following duties. State income tax rate Preparing or assisting in the preparing, approving, and filing of returns, documents, affidavits, and other papers relating to IRS matters. State income tax rate Determining the correctness of oral or written representations made by him or her to the Department of the Treasury. State income tax rate Determining the correctness of oral or written representations made by him or her to clients with reference to any matter administered by the IRS. State income tax rate Restrictions Practitioners are restricted from engaging in certain practices. State income tax rate The following paragraphs discuss some of these restricted practices. State income tax rate Delays. State income tax rate   A practitioner must not unreasonably delay the prompt disposition of any matter before the IRS. State income tax rate Assistance from disbarred or suspended persons and former IRS employees. State income tax rate   A practitioner must not knowingly, directly or indirectly, do the following. State income tax rate Accept assistance from, or assist, any person who is under disbarment or suspension from practice before the IRS if the assistance relates to matters considered practice before the IRS. State income tax rate Accept assistance from any former government employee where provisions of Circular 230 or any federal law would be violated. State income tax rate Performance as a notary. State income tax rate   A practitioner who is a notary public and is employed as counsel, attorney, or agent in a matter before the IRS, or has a material interest in the matter, cannot engage in any notary activities related to that matter. State income tax rate Negotiations of taxpayer refund checks. State income tax rate   Practitioners must not endorse or otherwise negotiate (cash) any refund check (including directing or accepting payment by any means, electronic or otherwise, in an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to the taxpayer. State income tax rate Incompetence and Disreputable Conduct Any practitioner or unenrolled return preparer may be disbarred or suspended from practice before the IRS, or censured, for incompetence or disreputable conduct. State income tax rate The following list contains examples of conduct that is considered disreputable. State income tax rate Being convicted of any criminal offense under the revenue laws or of any offense involving dishonesty or breach of trust. State income tax rate Knowingly giving false or misleading information in connection with federal tax matters, or participating in such activity. State income tax rate Soliciting employment by prohibited means as discussed in section 10. State income tax rate 30 of Circular 230. State income tax rate Willfully failing to file a federal tax return, evading or attempting to evade any federal tax or payment, or participating in such actions. State income tax rate Misappropriating, or failing to properly and promptly remit, funds received from clients for payment of taxes or other obligations due the United States. State income tax rate Directly or indirectly attempting to influence the official action of IRS employees by the use of threats, false accusations, duress, or coercion, or by offering gifts, favors, or any special inducements. State income tax rate Being disbarred or suspended from practice as an attorney, CPA, public accountant, or actuary, by the District of Columbia or any state, possession, territory, commonwealth, or any federal court, or any federal agency, body, or board. State income tax rate Knowingly aiding and abetting another person to practice before the IRS during a period of suspension, disbarment, or ineligibility of that other person. State income tax rate Using abusive language, making false accusations and statements knowing them to be false, circulating or publishing malicious or libelous matter, or engaging in any contemptuous conduct in connection with practice before the IRS. State income tax rate Giving a false opinion knowingly, recklessly, or through gross incompetence; or following a pattern of providing incompetent opinions in questions arising under the federal tax laws. State income tax rate Censure, Disbarments, and Suspensions The Office of Professional Responsibility may censure or institute proceedings to censure, suspend or disbar any attorney, CPA, or enrolled agent who has violated Circular 230. State income tax rate A practitioner will be given the opportunity to demonstrate compliance with the rules before any disciplinary action is taken. State income tax rate Authorizing a Representative You may either represent yourself, or you may authorize an individual to represent you before the IRS. State income tax rate If you chose to have someone represent you, your representative must be a person eligible to practice before the IRS. State income tax rate See Who Can Practice Before the IRS, earlier. State income tax rate What Is a Power of Attorney? A power of attorney is your written authorization for an individual to act on your behalf. State income tax rate If the authorization is not limited, the individual generally can perform all acts that you can perform. State income tax rate The authority granted to a registered tax return preparer or an unenrolled preparer is limited. State income tax rate For information on the limits regarding registered tax return preparers, see Circular 230 §10. State income tax rate 3(f). State income tax rate For information on the limits regarding unenrolled preparers, see Publication 470. State income tax rate Acts performed. State income tax rate   Any representative, other than a registered tax return preparer or an unenrolled return preparer, can usually perform the following acts. State income tax rate Represent you before any office of the IRS. State income tax rate Sign an offer or a waiver of restriction on assessment or collection of a tax deficiency, or a waiver of notice of disallowance of claim for credit or refund. State income tax rate Sign a consent to extend the statutory time period for assessment or collection of a tax. State income tax rate Sign a closing agreement. State income tax rate Signing your return. State income tax rate   The representative named under a power of attorney is not permitted to sign your income tax return unless: The signature is permitted under the Internal Revenue Code and the related regulations (see Regulations section 1. State income tax rate 6012-1(a)(5)). State income tax rate You specifically authorize this in your power of attorney. State income tax rate For example, the regulation permits a representative to sign your return if you are unable to sign the return due to: Disease or injury. State income tax rate Continuous absence from the United States (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return. State income tax rate Other good cause if specific permission is requested of and granted by the IRS. State income tax rate When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. State income tax rate For more information, see the Form 2848 instructions. State income tax rate Limitation on substitution or delegation. State income tax rate   A recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized by you on the power of attorney. State income tax rate   After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. State income tax rate If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent you. State income tax rate Disclosure of returns to a third party. State income tax rate   Your representative cannot execute consents that will allow the IRS to disclose tax return or return information to a third party unless you specifically delegate this authority to your representative on line 5 of Form 2848. State income tax rate Incapacity or incompetency. State income tax rate   A power of attorney is generally terminated if you become incapacitated or incompetent. State income tax rate   The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on line 5 “Other” of the Form 2848 and if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. State income tax rate See Non-IRS powers of attorney, later. State income tax rate When Is a Power of Attorney Required? Submit a power of attorney when you want to authorize an individual to represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney. State income tax rate A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf. State income tax rate Represent you at a meeting with the IRS. State income tax rate Prepare and file a written response to the IRS. State income tax rate Form Required Use Form 2848 to appoint a recognized representative to act on your behalf before the IRS. State income tax rate Individuals recognized to practice before the IRS are listed under Part II, Declaration of Representative, of Form 2848. State income tax rate Your representative must complete that part of the form. State income tax rate Non-IRS powers of attorney. State income tax rate   The IRS will accept a non-IRS power of attorney, but a completed Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. State income tax rate For more information, see Processing a non-IRS power of attorney, later. State income tax rate   If you want to use a power of attorney document other than Form 2848, it must contain the following information. State income tax rate Your name and mailing address. State income tax rate Your social security number and/or employer identification number. State income tax rate Your employee plan number, if applicable. State income tax rate The name and mailing address of your representative(s). State income tax rate The types of tax involved. State income tax rate The federal tax form number. State income tax rate The specific year(s) or period(s) involved. State income tax rate For estate tax matters, the decedent's date of death. State income tax rate A clear expression of your intention concerning the scope of authority granted to your representative(s). State income tax rate Your signature and date. State income tax rate You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. State income tax rate This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. State income tax rate The statement should read: I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority, I am aware of the regulations contained in Circular 230, I am authorized to represent the taxpayer(s) identified in the power of attorney, and I am an individual described in 26 CFR 601. State income tax rate 502(b). State income tax rate Required information missing. State income tax rate   The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. State income tax rate You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. State income tax rate If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next. State income tax rate Procedure for perfecting a non-IRS power of attorney. State income tax rate   Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf. State income tax rate The original non-IRS power of attorney grants authority to handle federal tax matters (for example, general authority to perform any acts). State income tax rate The attorney-in-fact attaches a statement (signed under penalty of perjury) to the Form 2848 stating that the original non-IRS power of attorney is valid under the laws of the governing jurisdiction. State income tax rate Example. State income tax rate John Elm, a taxpayer, signs a non-IRS durable power of attorney that names his neighbor and CPA, Ed Larch, as his attorney-in-fact. State income tax rate The power of attorney grants Ed the authority to perform any and all acts on John's behalf. State income tax rate However, it does not list specific tax-related information such as types of tax or tax form numbers. State income tax rate Shortly after John signs the power of attorney, he is declared incompetent. State income tax rate Later, a federal tax matter arises concerning a prior year return filed by John. State income tax rate Ed attempts to represent John before the IRS but is rejected because the durable power of attorney does not contain required information. State income tax rate If Ed attaches a statement (signed under the penalty of perjury) that the durable power of attorney is valid under the laws of the governing jurisdiction, he can sign a completed Form 2848 and submit it on John's behalf. State income tax rate If Ed can practice before the IRS (see Who Can Practice Before the IRS, earlier), he can name himself as representative on Form 2848. State income tax rate Otherwise, he must name another individual who can practice before the IRS. State income tax rate Processing a non-IRS power of attorney. State income tax rate   The IRS has a centralized computer database system called the CAF system. State income tax rate This system contains information on the authority of taxpayer representatives. State income tax rate Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. State income tax rate Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the CAF. State income tax rate It also enables the IRS to automatically send copies of notices and other IRS communications to your representative if you specify that your representative should receive those communications. State income tax rate   You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed Form 2848 and submitting it to the IRS. State income tax rate Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848). State income tax rate Preparation of Form — Helpful Hints The preparation of Form 2848 is illustrated by an example, later under How Do I Fill Out Form 2848. State income tax rate However, the following will also assist you in preparing the form. State income tax rate Line-by-line hints. State income tax rate   The following hints are summaries of some of the line-by-line instructions for Form 2848. State income tax rate Line 1—Taxpayer information. State income tax rate   If a joint return is involved, the husband and wife each file a separate Form 2848 if they both want to be represented. State income tax rate If only one spouse wants to be represented in the matter, that spouse files a Form 2848. State income tax rate Line 2—Representative(s). State income tax rate   Only individuals may be named as representatives. State income tax rate If your representative has not been assigned a CAF number, enter “None” on that line and the IRS will issue one to your representative. State income tax rate If the representative's address or phone number has changed since the CAF number was issued, you should check the appropriate box. State income tax rate Enter your representative's fax number if available. State income tax rate   If you want to name more than three representatives, attach additional Form(s) 2848. State income tax rate The IRS can send copies of notices and communications to two of your representatives. State income tax rate You must, however, check the boxes on line 2 of the Form 2848 if you want the IRS to routinely send copies of notices and communications to your representatives. State income tax rate If you do not check the boxes, your representatives will not routinely receive copies of notices and communications. State income tax rate Line 3—Tax matters. State income tax rate   You may list any tax years or periods that have already ended as of the date you sign the power of attorney. State income tax rate However, you may include on a power of attorney only future tax periods that end no later than 3 years after the date the power of attorney is received by the IRS. State income tax rate The 3 future periods are determined starting after December 31 of the year the power of attorney is received by the IRS. State income tax rate However, avoid general references such as “all years” or “all taxes. State income tax rate ” Any Form 2848 with general references will be returned. State income tax rate Line 4—Specific use not recorded on Centralized Authorization File (CAF). State income tax rate   Certain matters cannot be recorded on the CAF system. State income tax rate Examples of such matters include, but are not limited to, the following. State income tax rate Requests for a private letter ruling or technical advice. State income tax rate Applications for an employer identification number (EIN). State income tax rate Claims filed on Form 843, Claim for Refund and Request for Abatement. State income tax rate Corporate dissolutions. State income tax rate Requests for change of accounting method. State income tax rate Requests for change of accounting period. State income tax rate Applications for recognition of exemption under sections 501(c)(3), 501(a), or 521 (Forms 1023, 1034, or 1028). State income tax rate Request for a determination of the qualified status of an employee benefit plan (Forms 5300, 5307, or 5310). State income tax rate Application for Award for Original Information under section 7623. State income tax rate Voluntary submissions under the Employee Plans Compliance Resolution System (EPCRS). State income tax rate Freedom of Information Act requests. State income tax rate If the tax matter described on line 3 of Form 2848 concerns one of these matters specifically, check the box on line 4. State income tax rate If this box is checked, the representative should mail or fax the power of attorney to the IRS office handling the matter. State income tax rate Otherwise, the representative should bring a copy of the power of attorney to each meeting with the IRS. State income tax rate Where To File a Power of Attorney Generally, you can mail or fax a paper Form 2848 directly to the IRS. State income tax rate To determine where you should file Form 2848, see Where To File in the instructions for Form 2848. State income tax rate If Form 2848 is for a specific use, mail or fax it to the office handling that matter. State income tax rate For more information on specific use, see the Instructions for Form 2848, line 4. State income tax rate FAX copies. State income tax rate   The IRS will accept a copy of a power of attorney that is submitted by facsimile transmission (fax). State income tax rate If you choose to file a power of attorney by fax, be sure the appropriate IRS office is equipped to accept this type of transmission. State income tax rate Your representative may be able to file Form 2848 electronically via the IRS website. State income tax rate For more information, your representative can go to www. State income tax rate irs. State income tax rate gov and under the Tax Professionals tab, click on e-services–Online Tools for Tax Professionals. State income tax rate If you complete Form 2848 for electronic signature authorization, do not file Form 2848 with the IRS. State income tax rate Instead, give it to your representative, who will retain the document. State income tax rate Updating a power of attorney. State income tax rate   Submit any update or modification to an existing power of attorney in writing. State income tax rate Your signature (or the signature of the individual(s) authorized to sign on your behalf) is required. State income tax rate Do this by sending the updated Form 2848 or non-IRS power of attorney to the IRS office(s) where you previously sent the original(s), including the center where the related return was, or will be filed. State income tax rate   A recognized representative may substitute or delegate authority if you specifically authorize your representative to substitute or delegate representation in the original power of attorney. State income tax rate To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed. State income tax rate A written notice of substitution or delegation signed by the recognized representative. State income tax rate A written declaration of representative made by the new representative. State income tax rate A copy of the power of attorney that specifically authorizes the substitution or delegation. State income tax rate Retention/Revocation of Prior Power(s) of Attorney A newly filed power of attorney concerning the same matter will revoke a previously filed power of attorney. State income tax rate However, the new power of attorney will not revoke the prior power of attorney if it specifically states it does not revoke such prior power of attorney and either of the following are attached to the new power of attorney. State income tax rate A copy of the unrevoked prior power of attorney, or A statement signed by the taxpayer listing the name and address of each representative authorized under the prior unrevoked power of attorney. State income tax rate Note. State income tax rate The filing of Form 2848 will not revoke any  Form 8821 that is in effect. State income tax rate Revocation of Power of Attorney/Withdrawal of Representative If you want to revoke an existing power of attorney and do not want to name a new representative, or if a representative wants to withdraw from representation, mail or fax a copy of the previously executed power of attorney to the IRS, or if the power of attorney is for a specific matter, to the IRS office handling the matter. State income tax rate If the taxpayer is revoking the power of attorney, the taxpayer must write “REVOKE” across the top of the first page with a current signature and date below this annotation. State income tax rate If the representative is withdrawing from the representation, the representative must write “WITHDRAW” across the top of the first page with a current signature and date below this annotation. State income tax rate If you do not have a copy of the power of attorney you want to revoke or withdraw, send a statement to the IRS. State income tax rate The statement of revocation or withdrawal must indicate that the authority of the power of attorney is revoked or withdrawn, list the matters and periods, and must be signed and dated by the taxpayer or representative as applicable. State income tax rate If the taxpayer is revoking, list the name and address of each recognized representative whose authority is revoked. State income tax rate When the taxpayer is completely revoking authority, the form should state “remove all years/periods” instead of listing the specific tax matter, years, or periods. State income tax rate If the representative is withdrawing, list the name, TIN, and address (if known) of the taxpayer. State income tax rate To revoke a specific use power of attorney, send the power of attorney or statement of revocation to the IRS office handling your case, using the above instructions. State income tax rate A power of attorney held by a student will be recorded on the CAF system for 130 days from the receipt date. State income tax rate If you are authorizing a student to represent you after that time, you will need to submit a current and valid Form 2848. State income tax rate When Is a Power of Attorney Not Required? A power of attorney is not required when the third party is not dealing with the IRS as your representative. State income tax rate The following situations do not require a power of attorney. State income tax rate Providing information to the IRS. State income tax rate Authorizing the disclosure of tax return information through Form 8821, Tax Information Authorization, or other written or oral disclosure consent. State income tax rate Allowing the IRS to discuss return information with a third party via the checkbox provided on a tax return or other document. State income tax rate Allowing a tax matters partner or person (TMP) to perform acts for the partnership. State income tax rate Allowing the IRS to discuss return information with a fiduciary. State income tax rate How Do I Fill Out Form 2848? The following example illustrates how to complete Form 2848. State income tax rate The two completed forms for this example are shown on the next pages. State income tax rate Example. State income tax rate Stan and Mary Doe have been notified that their joint tax returns (Forms 1040) for 2009, 2010, and 2011 are being examined. State income tax rate They have decided to appoint Jim Smith, an enrolled agent, to represent them in this matter and any future matters concerning these returns. State income tax rate Jim, who has prepared returns at the same location for years, already has a Centralized Authorization File (CAF) number assigned to him. State income tax rate Mary does not want Jim to sign any agreements on her behalf, but Stan is willing to have Jim do so. State income tax rate They want copies of all notices and written communications sent to Jim. State income tax rate This is the first time Stan and Mary have given power of attorney to anyone. State income tax rate They should each complete a Form 2848 as follows. State income tax rate Line 1—Taxpayer information. State income tax rate   Stan and Mary must each file a separate Form 2848. State income tax rate On his separate Form 2848, Stan enters his name, street address, and social security number in the spaces provided. State income tax rate Mary does likewise on her separate Form 2848. State income tax rate Line 2—Representative(s). State income tax rate   On their separate Forms 2848, Stan and Mary each enters the name and current address of their chosen representative, Jim Smith. State income tax rate Both Stan and Mary want Jim Smith to receive notices and communications concerning the matters identified in line 3, so on their separate Forms 2848, Stan and Mary each checks the box in the first column of line 2. State income tax rate They also enter Mr. State income tax rate Smith's CAF number, his telephone number, and his fax number. State income tax rate Mr. State income tax rate Smith's address, telephone number, and fax number have not changed since the IRS issued his CAF number, so Stan and Mary do not check the boxes in the second column. State income tax rate Line 3—Tax Matters. State income tax rate   On their separate Forms 2848, Stan and Mary each enters “income” for the type of tax, “1040” for the form number, and “2009, 2010, and 2011” for the tax years. State income tax rate Line 4—Specific use not recorded on Centralized Authorization File (CAF). State income tax rate   On their separate Forms 2848, Stan and Mary make no entry on this line because they do not want to restrict the use of their powers of attorney to a specific use that is not recorded on the CAF. State income tax rate See Preparation of Form — Helpful Hints, earlier. State income tax rate Line 5—Acts authorized. State income tax rate   Mary wants to sign any agreement that reflects changes to her and Stan's joint 2009, 2010, and 2011 income tax liability, so she writes “Taxpayer must sign any agreement form” on line 5 of her Form 2848. State income tax rate Stan does not wish to restrict the authority of Jim Smith in this regard, so he leaves line 5 of his Form 2848 blank. State income tax rate If either Mary or Stan had chosen, they could have listed other restrictions on line 5 of their separate Forms 2848. State income tax rate Line 6—Retention/revocation of prior power(s) of attorney. State income tax rate   Stan and Mary are each filing their first powers of attorney, so they make no entry on this line. State income tax rate However, if they had filed prior powers of attorney, the filing of this current power would revoke any earlier ones for the same tax matter(s) unless they checked the box on line 6 and attached a copy of the prior power of attorney that they wanted to remain in effect. State income tax rate   If Mary later decides that she can handle the examination on her own, she can revoke her power of attorney even though Stan does not revoke his power of attorney. State income tax rate (See Revocation of Power of Attorney/Withdrawal of Representative, earlier, for the special rules that apply. State income tax rate ) Line 7—Signature of taxpayer. State income tax rate   Stan and Mary each signs and dates his or her Form 2848. State income tax rate If a taxpayer does not sign, the IRS cannot accept the form. State income tax rate Part II—Declaration of Representative. State income tax rate   Jim Smith must complete this part of Form 2848. State income tax rate If he does not sign this part, the IRS cannot accept the form. State income tax rate What Happens to the Power of Attorney When Filed? A power of attorney will be recognized after it is received, reviewed, and determined by the IRS to contain the required information. State income tax rate However, until a power of attorney is entered on the CAF system, IRS personnel may be unaware of the authority of the person you have named to represent you. State income tax rate Therefore, during this interim period, IRS personnel may request that you or your representative bring a copy to any meeting with the IRS. State income tax rate This image is too large to be displayed in the current screen. State income tax rate Please click the link to view the image. State income tax rate Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. State income tax rate Please click the link to view the image. State income tax rate Filled-in Form 2848 - Page 2 This image is too large to be displayed in the current screen. State income tax rate Please click the link to view the image. State income tax rate Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. State income tax rate Please click the link to view the image. State income tax rate Filled-in Form 2848 - Page 2 Processing and Handling How the power of attorney is processed and handled depends on whether it is a complete or incomplete document. State income tax rate Incomplete document. State income tax rate   If Form 2848 is incomplete, the IRS will attempt to secure the missing information either by writing or telephoning you or your representative. State income tax rate For example, if your signature or signature date is missing, the IRS will contact you. State income tax rate If information concerning your representative is missing and information sufficient to make a contact (such as an address and/or a telephone number) is on the document, the IRS will try to contact your representative. State income tax rate   In either case, the power of attorney is not considered valid until all required information is entered on the document. State income tax rate The individual(s) named as representative(s) will not be recognized to practice before the IRS, on your behalf, until the document is complete and accepted by the IRS. State income tax rate Complete document. State income tax rate   If the power of attorney is complete and valid, the IRS will take action to recognize the representative. State income tax rate In most instances, this includes processing the document on the CAF system. State income tax rate Recording the data on the CAF system enables the IRS to direct copies of mailings to authorized representatives and to readily recognize the scope of authority granted. State income tax rate Documents not processed on CAF. State income tax rate   Specific-use powers of attorney are not processed on the CAF system (see Preparation of Form – Helpful Hints, earlier). State income tax rate For example, a power of attorney that is a one-time or specific-issue grant of authority is not processed on the CAF system. State income tax rate These documents remain with the related case files. State income tax rate In this situation, you should check the box on line 4 of Form 2848. State income tax rate In these situations, the representative should bring a copy of the power of attorney to each meeting with the IRS. State income tax rate Dealing With the Representative After a valid power of attorney is filed, the IRS will recognize your representative. State income tax rate However, if it appears the representative is responsible for unreasonably delaying or hindering the prompt disposition of an IRS matter by failing to furnish, after repeated requests, nonprivileged information, the IRS can contact you directly. State income tax rate For example, in most instances in which a power of attorney is recognized, the IRS will contact the representative to set up appointments and to provide lists of required items. State income tax rate However, if the representative is unavailable, does not respond to repeated requests, and does not provide required items (other than items considered privileged), the IRS can bypass your representative and contact you directly. State income tax rate If a representative engages in conduct described above, the matter can be referred to the Office of Professional Responsibility for consideration of possible disciplinary action. State income tax rate Notices and other correspondence. State income tax rate   If you have a recognized representative, you and the representative will routinely receive notices and other correspondence from the IRS (either the original or a copy) if you checked the box in the left column of line 2 of Form 2848. State income tax rate If the power of attorney is processed on the CAF system, the IRS will send your representative(s) a duplicate of all computer-generated correspondence that is sent to you. State income tax rate This includes notices and letters produced either at the Martinsburg Computing Center, or other IRS centers. State income tax rate The IRS employee handling the case is responsible for ensuring that the original and any requested copies of each manually-generated correspondence are sent to you and your representative(s) in accordance with your authorization. State income tax rate How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. State income tax rate By selecting the method that is best for you, you will have quick and easy access to tax help. State income tax rate Free help with your return. State income tax rate   Free help in preparing your return is available nationwide from IRS-certified volunteers. State income tax rate The Volunteer Income Tax Assistance (VITA) program is designed to help low and moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. State income tax rate Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. State income tax rate To find the nearest VITA or TCE site, visit IRS. State income tax rate gov or call 1-800-906-9887 or 1-800-829-1040. State income tax rate   As part of the TCE program, AARP offers the Tax-Aide counseling program. State income tax rate To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. State income tax rate aarp. State income tax rate org/money/taxaide. State income tax rate   For more information on these programs, go to IRS. State income tax rate gov and enter keyword “VITA” in the upper right-hand corner. State income tax rate Internet. State income tax rate You can access the IRS website at IRS. State income tax rate gov 24 hours a day, 7 days a week to: E-file your return. State income tax rate Find out about commercial tax preparation and e-file services available free to eligible taxpayers. State income tax rate Check the status of your refund. State income tax rate Go to IRS. State income tax rate gov and click on Where's My Refund. State income tax rate Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. State income tax rate If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). State income tax rate Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. State income tax rate Download forms, including talking tax forms, instructions, and publications. State income tax rate Order IRS products online. State income tax rate Research your tax questions online. State income tax rate Search publications online by topic or keyword. State income tax rate Use the online Internal Revenue Code, regulations, or other official guidance. State income tax rate View Internal Revenue Bulletins (IRBs) published in the last few years. State income tax rate Figure your withholding allowances using the withholding calculator online at www. State income tax rate irs. State income tax rate gov/individuals. State income tax rate Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. State income tax rate irs. State income tax rate gov/individuals. State income tax rate Sign up to receive local and national tax news by email. State income tax rate Get information on starting and operating a small business. State income tax rate Phone. State income tax rate Many services are available by phone. State income tax rate   Ordering forms, instructions, and publications. State income tax rate Call 1-800-TAX -FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. State income tax rate You should receive your order within 10 days. State income tax rate Asking tax questions. State income tax rate Call the IRS with your tax questions at 1-800-829-1040. State income tax rate Solving problems. State income tax rate You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. State income tax rate An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. State income tax rate Call your local Taxpayer Assistance Center for an appointment. State income tax rate To find the number, go to www. State income tax rate irs. State income tax rate gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. State income tax rate TTY/TDD equipment. State income tax rate If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. State income tax rate TeleTax topics. State income tax rate Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. State income tax rate Refund information. State income tax rate To check the status of your refund, call 1-800-829-1954 or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). State income tax rate Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. State income tax rate If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). State income tax rate Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. State income tax rate If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. State income tax rate Other refund information. State income tax rate To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. State income tax rate Evaluating the quality of our telephone services. State income tax rate To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. State income tax rate One method is for a second IRS representative to listen in on or record random telephone calls. State income tax rate Another is to ask some callers to complete a short survey at the end of the call. State income tax rate Walk-in. State income tax rate Many products and services are available on a walk-in basis. State income tax rate   Products. State income tax rate You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. State income tax rate Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. State income tax rate Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. State income tax rate Services. State income tax rate You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. State income tax rate An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. State income tax rate If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. State income tax rate No appointment is necessary—just walk in. State income tax rate If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. State income tax rate A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. State income tax rate If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. State income tax rate All other issues will be handled without an appointment. State income tax rate To find the number of your local office, go to  www. State income tax rate irs. State income tax rate gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. State income tax rate Mail. State income tax rate You can send your order for forms, instructions, and publications to the address below. State income tax rate You should receive a response within 10 days after your request is received. State income tax rate  Internal Revenue Service 1201 N. State income tax rate Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. State income tax rate   The Taxpayer Advocate Service (TAS) is your voice at the IRS. State income tax rate Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. State income tax rate We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. State income tax rate Remember, the worst thing you can do is nothing at all. State income tax rate   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. State income tax rate You face (or your business is facing) an immediate threat of adverse action. State income tax rate You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. State income tax rate   If you qualify for our help, we’ll do everything we can to get your problem resolved. State income tax rate You will be assigned to one advocate who will be with you at every turn. State income tax rate We have offices in every state, the District of Columbia, and Puerto Rico. State income tax rate Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. State income tax rate And our services are always free. State income tax rate   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. State income tax rate Our tax toolkit at www. State income tax rate TaxpayerAdvocate. State income tax rate irs. State income tax rate gov can help you understand these rights. State income tax rate   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. State income tax rate irs. State income tax rate gov/advocate. State income tax rate You can also call our toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059. State income tax rate   TAS also handles large-scale or systemic problems that affect many taxpayers. State income tax rate If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. State income tax rate irs. State income tax rate gov/advocate. State income tax rate Low Income Taxpayer Clinics (LITCs). State income tax rate   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. State income tax rate Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. State income tax rate These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. State income tax rate Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. State income tax rate For more information and to find a clinic near you, see the LITC page on www. State income tax rate irs. State income tax rate gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. State income tax rate This publication is also available by calling 1-800-829-3676 or at your local IRS office. State income tax rate Free tax services. State income tax rate   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. State income tax rate Learn about free tax information from the IRS, including publications, services, and education and assistance programs. State income tax rate The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. State income tax rate The majority of the information and services listed in this publication are available to you free of charge. State income tax rate If there is a fee associated with a resource or service, it is listed in the publication. State income tax rate   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. State income tax rate DVD for tax products. State income tax rate You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. State income tax rate Prior-year forms, instructions, and publications. State income tax rate Tax Map: an electronic research tool and finding aid. State income tax rate Tax law frequently asked questions. State income tax rate Tax Topics from the IRS telephone response system. State income tax rate Internal Revenue Code—Title 26 of the U. State income tax rate S. State income tax rate Code. State income tax rate Links to other Internet based Tax Research Materials. State income tax rate Fill-in, print, and save features for most tax forms. State income tax rate Internal Revenue Bulletins. State income tax rate Toll-free and email technical support. State income tax rate Two releases during the year. State income tax rate  – The first release will ship the beginning of January. State income tax rate  – The final release will ship the beginning of March. State income tax rate Purchase the DVD from National Technical Information Service (NTIS) at www. State income tax rate irs. State income tax rate gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). State income tax rate Prev  Up  Next   Home   More Online Publications
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Updated: Common Input Issues

Many common issues are easy to resolve by following the instructions below. The most frequent issue involves data entry errors.  Please review your return closely before e-filing.  Because Free File Fillable Forms is basic, you must follow the instructions exactly and enter data only on the lines indicated.

Below you will find a few more general tips for successful e-filing and then some more specific issues currently trending for Free File Fillable Forms:

General Tips

  • Many issues can be resolved by simply using the “tab” key which ensures you will see all the data boxes. For example, when you use the tab key, you will see the MI box for your middle initial on the top of the Form 1040.
  • Use the state drop down box in the address field and enter zip code in appropriate box.
  • Check all your data entries before attempting to e-file.
  • Check your social security numbers for accuracy.  Is your dependent’s SSN correct? Is your SSN correct on the Form W2, Box A, Employee’s SSN?
  • Do not use zero “0” in any field unless instructed to do so.
  • If you’re getting a refund by direct deposit, double check your financial account and routing numbers; the routing number must be nine digits.  Be sure to select checking or savings. 
  • Check your withholdings; make sure your W-2 statement withholdings match the amount on your 1040.
  • Check the withholding amount entered Step 2, Section 1 and make sure it equals the amount in Step 2, Section 2, Box A.
  • Verify your identity. Do not guess at your prior year Adjusted Gross Income. This is the most common error we see. If you don’t remember your AGI, you must get an electronic filing PIN at IRS.gov or call 1-866-704-7388.
  • If your filing status is Married Filing Jointly, make sure to include all information for your spouse, especially Step 2 requirements for identify verification and signing the return electronically.
  •  Whenever you’re entering your information on a form or schedule in Free File Fillable Forms and you have a question, just select the button, "Instructions For This Form," at the bottom of the screen.

Specific Issues

I didn’t get the email confirming that my Free File Fillable Forms return was accepted or rejected

  • First, check your email spam/junk folder. 
  • If it’s not there, take the following steps: Return to your Free File Fillable Forms account. (Either through IRS.gov/freefile or freefilefillableforms.com.) 
  • Select “Get E-File Status” from upper left column. If there is no status update, log-on to your account and review your return for accuracy  
  • CAUTION: Make sure to place the current date ("Today's Date") in Step 2, Section 4, Signing This Year's Return
  • Next, select  “E-File Now” button to resubmit.  
  • If your return was successfully e-filed, you will receive 2 emails: one from freefilefillableforms.com saying it was received and a second one from freefilefillableform.com saying it was accepted or rejected by the IRS. If you do not receive these two emails, you have not successfully transmitted your return.

I got this message: Business Rule X0000-005 - The XML data has failed schema validation

This currently is the second most common error we see, and it’s not as scary as it sounds. You will receive this message when there is a data entry error. This is a simple correction.

  • First, your message will identify the form and line number where the error occurred on your return.
  • Look for one of two key phrases in the error message.
  • If you see the phrase “is expected” that means you left blank a required field.
  • If you see the phrase “not facet-valid with” that means you made an entry in the wrong format, i.e. you used a number where it should be blank, or used a description not allowed in the field.
  • For more information, see our Rejected return help page.

“Do the Math” won’t work

Most often, your form is missing data that the program considers necessary to perform the calculation. Use the “tab” key and double check your entries.

Here's a list of some common problems taxpayers have encountered and possible solutions. 

  • 1040 (Form) Line 44 Tax - You must look up your tax in the tax tables and follow the IRS instructions to manually enter an amount on this line.  Don’t forget this step.
  • Schedule 8812 Additional Child Tax Credit, Lines 9, 11, 12 and 13 - You must complete all the prior required lines, including the buttons on line 6, before these lines will calculate.   Check your entries before you e-file.
  • Form 8863, Education Credits (Hope and Lifetime Learning Credits, Line 15 - You are required to complete Part 1. If instructed to put a zero on a line, you must put a zero on that line.
  • Schedule A, Itemized Deductions
    • Line 23 - The amount for this line is populated from the amount(s) you enter in the grey areas under the words, ‘list type and amount’. There are two lines under these words and two fields on each line. The first field is for a description of the ‘Other Expense’ deduction and the second field is for the amount. Enter the description and corresponding amount and ‘Do the math’ will calculate an amount for line 23.
    • Line 29 - Don't forget to manually enter the total amount for your Itemized Deductions on line 29 of the Schedule A.  Line 29 is not a Do the Math calculated field.  Select the “Yes” or “No” button for line 29 and follow the Schedule A instructions for entering an amount on the line 29.  If your answer is No,  Is Form 1040 line 38 over $150,000, then add up all the column amounts, lines 4 through 28, on the Sch A and enter the total amount on line 29.  Check your math.  If  your answer is Yes, line 38 of the Form 1040 is over $150,000 refer to the Itemized Deductions Worksheet for line 29 (page A-13) and then enter the amount you figured on line 29.  After you enter your amount on line 29, then select “Do the Math.”  The amount on line 29 will then transfer and update Line 40 of Form 1040.
  • Schedule C, Profit or Loss from Business Lines 3, 4, 5, and 7 - You must enter the business entity information (A-J) before the lines will calculate.
  • Schedule C-EZ Net Profit or Loss from Business Line 3 - You must enter the business entity information (A-G) before “Do the Math” will calculate.
  • Schedule E, Supplemental Income and Loss, Line 23a, b, etc. - Many lines will not calculate until Part 1 of the form is complete. 

I Can’t Find the Form I need

First, review the list of available Forms You Can Use. You can learn how to add some forms to your return by following the instructions below.

  • Form 4562, Depreciation and Amortization (Including Information on Listed Property -  You must Add the Form 4562 from the “add” button on your Schedule C and/or Schedule E.  You can NOT add the Form 4562 from the “add/view" button.  
  • Form 6198 At-Risk Limitations- Add this form from the “add” button on your Schedule C.
  • Form 8829 Expenses for Business Use of Your Home- Add this form from the “add” button on your line 30 of the Schedule C, Profit or Loss from Business
  • Form 8863, Education Credits (Hope and Lifetime Learning Credits) -
    1. Part III on page 2 for each student for whom you are claiming either credit must be completed before you complete Parts I and II on Page 1.  Some taxpayers can’t find the add button for page 2.  Just go to the top of page 1 of the Form 8863 and click on the add button next to the statement click to enter student information on page 2. 
    2. Make sure you use"Do the Math" for computing line 15 of page 1 of the Form 8863.
    3. Make sure you use the tab key for entering the student’s first name and the last name on line 20. Entered the first name in the first grey field and then use the tab key to enter the last name in the grey field to the right. 
  • Form 8949, Sales and other Dispositions of Capital Assets- Don’t forget to add Page 2 to complete this form.  Complete the Form 8949 before you complete your Schedule D. On the Schedule D, complete lines 1b, 2, 3, 8b, 9, and 10. You may add multiple copies of the Form 8949 if you need additional space to report sales and exchanges of your capital assets.
  • Add Forms W2, W2G and 1099-R in Step 2, Section 1.
  • All other Form 1099’s, including SSA 1099, 1099 INT, 1099 MISC etc. are not available as individual forms in Free File Fillable Forms because you do not have to e-file these statements to IRS.
  • BUT make sure to include all other income from Form 1099 including SSA 1099, 1099 INT, 1099 MISC etc. on your Form 1040. Don’t forget to include your federal withholding amounts from these other Form 1099s in Step 2 Section 2 Box B.

I Can’t Print My Return?

  • If you are having trouble printing and you are using Internet Explorer 8.0 you must upgrade your Internet browser or switch to another computer to print your information.  
  • If you can't print, search for 'print' in General FAQs (PDF) for additional information. Remember, always print your return for your records after you successfully e-file.

I am having problems with my 16a and 16b entries for pensions and annuities on the Form 1040

  • Find your total pension or annuity amount on your Form 1099-R and enter it on line 16a of your Form 1040.
  • Then, enter the taxable portion in 16b to the far right under the column of the Form 1040 where you are entering all of your amounts.
  • Do not enter your taxable amount after “b Taxable amount”.   This “b Taxable amount” field is only reserved for the text: “ROLLOVER”, “PSO”, and “ROLLOVER AND PSO” - Refer to the 1040 instructions to see if either of these 3 descriptions apply to you.
  • When your total pensions and annuities equal your taxable amount, “Do the Math” will automatically remove your amount on line 16a.
  • When your total pensions and annuities is greater than your taxable amount, “Do the Math” will display the total on line 16a and taxable amount you entered to the right of 16b.     

I am getting an error on Line 21, "Other income" on the Form 1040 - List type and amount

  • In certain situations, the form instructions may prompt you to enter information next to a line.   There are 2 parts for you to enter: 1) the description type in the first grey box and then 2) a corresponding amount in the second grey box.  Don’t enter descriptions or $ amounts in the grey fields unless the instructions tell you too.  Generally, leave these fields blank and don't enter a zero or '0" amount unless the instructions tell you too.
  •  Use line 21 of the Form 1040 to report any other taxable income not reported elsewhere on your return or on other schedules.  Make sure you enter the type and then the amount for the Other income to the left of the amount on line 21.  Enter the type of income in the first grey field and then enter the amount in the second grey field.   After you enter the amount in the second grey field, select "Do the Math" and the amount you entered to the left in the grey field will transfer to line 21.   Don't forget to enter the type of other income such as gambling winnings or jury duty pay in the first grey field to the left of the amount.  And if one of your other income description types is net operating loss (NOL), make sure you enter a negative sign "-" before the amount.  To view a list of description types for other income examples on line 21, refer to page 28 of the Form 1040 instructions.  Free File Fillable Forms will automatically display the description type in all upper case letters after selecting Do the Math.

Refer to the tutorial for basic tips before your start Free File Fillable Forms. These tips will improve your chances to successfully e-file without getting errors.

Page Last Reviewed or Updated: 26-Feb-2014

The State Income Tax Rate

State income tax rate Listed Property Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Listed Property DefinedPassenger Automobile Defined Dwelling Unit Other Property Used for Transportation Computers and Related Peripheral Equipment Predominant Use TestMeeting the Predominant Use Test Qualified Business Use Method of Allocating Use Applying the Predominant Use Test Deductions After Recovery Period Leased PropertyLessor Lessee What Records Must Be KeptAdequate Records Reporting Information on Form 4562 Deductions in Later Years Appendix Topics - This chapter discusses: Listed property defined The predominant use test What records must be kept Useful Items - You may want to see: Publication 463 Travel, Entertainment, and Gift Expenses 587 Business Use of Your Home (Including Use by Day-Care Providers) 917 Business Use of a Car 946 How To Depreciate Property Form (and Instructions) 2106–EZ Unreimbursed Employee Business Expenses 2106 Employee Business Expenses 4255 Recapture of Investment Credit 4562 Depreciation and Amortization This chapter discusses some special rules and recordkeeping requirements for listed property. State income tax rate For complete coverage of the rules, including the rules concerning passenger automobiles, see Publication 946. State income tax rate If listed property is not used predominantly (more than 50%) in a qualified business use as discussed inPredominant Use Test, later, the section 179 deduction is not allowable and the property must be depreciated using the straight line method. State income tax rate Listed Property Defined Listed property is any of the following: Any passenger automobile (defined later), Any other property used for transportation, Any property of a type generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video recording equipment), Any computer and related peripheral equipment, defined later, unless it is used only at a regular business establishment and owned or leased by the person operating the establishment. State income tax rate A regular business establishment includes a portion of a dwelling unit (defined later), if, and only if, that portion is used both regularly and exclusively for business as discussed in Publication 587. State income tax rate Any cellular telephone (or similar telecommunication equipment) placed in service or leased in a tax year beginning after 1989. State income tax rate Passenger Automobile Defined A passenger automobile is any four-wheeled vehicle made primarily for use on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (at 6,000 pounds or less of gross vehicle weight for trucks and vans). State income tax rate It includes any part, component, or other item physically attached to the automobile or usually included in the purchase price of an automobile. State income tax rate A passenger automobile does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business, and A vehicle used directly in the trade or business of transporting persons or property for compensation or hire. State income tax rate Dwelling Unit A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. State income tax rate It does not include a unit in a hotel, motel, inn, or other establishment where more than half the units are used on a transient basis. State income tax rate Other Property Used for Transportation Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles for transporting persons or goods. State income tax rate Listed property does not include: Any vehicle which, by reason of its design, is not likely to be used more than a minimal amount for personal purposes, such as clearly marked police and fire vehicles, ambulances, or hearses used for those purposes, Any vehicle that is designed to carry cargo and that has a loaded gross vehicle weight over 14,000 pounds, bucket trucks (cherry pickers), cement mixers, combines, cranes and derricks, delivery trucks with seating only for the driver (or only for the driver plus a folding jump seat), dump trucks (including garbage trucks), flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks, Any passenger bus used for that purpose with a capacity of at least 20 passengers and school buses, Any tractor or other special purpose farm vehicle, and unmarked vehicles used by law enforcement officers if the use is officially authorized, and Any vehicle, such as a taxicab, if substantially all its use is in the trade or business of providing services to transport persons or property for compensation or hire by unrelated persons. State income tax rate Computers and Related Peripheral Equipment A computer is a programmable electronically activated device that: Is capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention, and Consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. State income tax rate Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. State income tax rate Computer or peripheral equipment does not include: Any equipment which is an integral part of property which is not a computer, Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment, and Equipment of a kind, used primarily for the user's amusement or entertainment, such as video games. State income tax rate Predominant Use Test If “listed property,” defined earlier, placed in service after June 18, 1984, is not used predominantly (more than 50%) in a qualified business use during any tax year: The section 179 deduction on the property is not allowable, and You must depreciate the property using the straight line method. State income tax rate Listed property placed in service before 1987. State income tax rate   For listed property placed in service before 1987, depreciate the property over the following period: Class of Property Listed Property Recovery Period 3-year property 5 years 5-year property 12 years 10-year property 25 years 18-year real property 40 years 19-year real property 40 years If you must use the above recovery periods for listed property not used predominantly in a trade or business, use the percentages from Table 16 titled Listed Property Not Used Predominantly (Other Than 18- or 19-year Real Property), and Table 17 for 18- or 19-year real property, near the end of this publication in the Appendix. State income tax rate Listed property placed in service after 1986. State income tax rate   For information on listed property placed in service after 1986, see Publication 946. State income tax rate Meeting the Predominant Use Test Listed property meets the predominant use test for any tax year if its business use is more than 50% of its total use. State income tax rate You must allocate the use of any item of listed property used for more than one purpose during the tax year among its various uses. State income tax rate The percentage of investment use of listed property cannot be used as part of the percentage of qualified business use to meet the predominant use test. State income tax rate However, the combined total of business and investment use is taken into account to figure your depreciation deduction for the property. State income tax rate Note: Property does not stop being predominantly used in a qualified business use because of a transfer at death. State income tax rate Example. State income tax rate Sarah Bradley uses a home computer 50% of the time to manage her investments. State income tax rate She also uses the computer 40% of the time in her part-time consumer research business. State income tax rate Sarah's home computer is listed property because it is not used at a regular business establishment. State income tax rate Because her business use of the computer does not exceed 50%, the computer is not predominantly used in a qualified business use for the tax year. State income tax rate Because she does not meet the predominant use test, she cannot elect a section 179 deduction for this property. State income tax rate Her combined rate of business/investment use for determining her depreciation deduction is 90%. State income tax rate Qualified Business Use A qualified business use is any use in your trade or business. State income tax rate However, it does not include: The use of property held merely to produce income (investment use), The leasing of property to any 5% owner or related person (to the point that the property is used by a 5% owner or person related to the owner or lessee of the property), The use of property as compensation for the performance of services by a 5% owner or related person, or The use of property as compensation for the performance of services by any person (other than a5% owner or related person) unless the value of the use is included in that person's gross income for the use of the property and income tax is withheld on that amount where required. State income tax rate See Employees, later. State income tax rate 5% owner. State income tax rate   A 5% owner of a business, other than a corporation, is any person who owns more than 5% of the capital or profits interest in the business. State income tax rate   A 5% owner of a corporation is any person who owns, or is considered to own: More than 5% of the outstanding stock of the corporation, or Stock possessing more than 5% of the total combined voting power of all stock in the corporation. State income tax rate Related person. State income tax rate   A related person is anyone related to a taxpayer as discussed under Related persons, in chapter 2 under Nonqualifying Property in Publication 946. State income tax rate Entertainment Use The use of listed property for entertainment, recreation, or amusement purposes is treated as a qualified business use only to the extent that expenses (other than interest and property tax expenses) for its use are deductible as ordinary and necessary business expenses. State income tax rate See Publication 463. State income tax rate Leasing or Compensatory Use of Aircraft If at least 25% of the total use of any aircraft during the tax year is for a qualified business use, the leasing or compensatory use of the aircraft by a 5% owner or related person is treated as a qualified business use. State income tax rate Commuting The use of a vehicle for commuting is not business use, regardless of whether work is performed during the trip. State income tax rate Use of Your Passenger Automobile by Another Person If someone else uses your automobile, that use is not business use unless: That use is directly connected with your business, The value of the use is property reported by you as income to the other person and tax is withheld on the income where required, or The value of the use results in a payment of fair market rent. State income tax rate Any payment to you for the use of the automobile is treated as a rent payment for 3). State income tax rate Employees Any use by an employee of his or her own listed property (or listed property rented by an employee) in performing services as an employee is not business use unless: The use is for the employer's convenience, and The use is required as a condition of employment. State income tax rate Use for the employer's convenience. State income tax rate   Whether the use of listed property is for the employer's convenience must be determined from all the facts. State income tax rate The use is for the employer's convenience if it is for a substantial business reason of the employer. State income tax rate The use of listed property during the employee's regular working hours to carry on the employer's business is generally for the employer's convenience. State income tax rate Use required as a condition of employment. State income tax rate   Whether the use of listed property is a condition of employment depends on all the facts and circumstances. State income tax rate The use of property must be required for the employee to perform duties properly. State income tax rate The employer need not explicitly require the employee to use the property. State income tax rate A mere statement by the employer that the use of the property is a condition of employment is not sufficient. State income tax rate Example 1. State income tax rate Virginia Sycamore is employed as a courier with We Deliver which provides local courier services. State income tax rate She owns and uses a motorcycle to deliver packages to downtown offices. State income tax rate We Deliver explicitly requires all delivery persons to own a small car or motorcycle for use in their employment. State income tax rate The company reimburses delivery persons for their costs. State income tax rate Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. State income tax rate Example 2. State income tax rate Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. State income tax rate He must travel to these sites on a regular basis. State income tax rate Uplift does not furnish an automobile or explicitly require him to use his own automobile. State income tax rate However, it reimburses him for any costs he incurs in traveling to the various sites. State income tax rate The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. State income tax rate Method of Allocating Use For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. State income tax rate You determine the percentage of qualified business use by dividing the number of miles the vehicle is driven for business purposes during the year by the total number of miles the vehicle is driven for all purposes (including business miles) during the year. State income tax rate For other items of listed property, allocate the property's use on the basis of the most appropriate unit of time. State income tax rate For example, you can determine the percentage of business use of a computer by dividing the number of hours the computer is used for business purposes during the year by the total number of hours the computer is used for all purposes (including business hours) during the year. State income tax rate Applying the Predominant Use Test You must apply the predominant use test for an item of listed property each year of the recovery period. State income tax rate First Recovery Year If any item of listed property is not used predominantly in a qualified business use in the year it is placed in service: The property is not eligible for a section 179 deduction, and The depreciation deduction must be figured using the straight line method. State income tax rate Note: The required use of the straight line method for an item of listed property that does not meet the predominant use test is not the same as electing the straight line method. State income tax rate It does not mean that you have to use the straight line method for other property in the same class as the item of listed property. State income tax rate Years After the First Recovery Year If you use listed property predominantly (more than 50%) in a qualified business use in the tax year you place it in service, but not in a subsequent tax year during the recovery period, the following rules apply: Figure depreciation using the straight line method. State income tax rate Do this for each year, beginning with the year you no longer use the property predominantly in a qualified business use, and Figure any excess depreciation on the property and add it to: Your gross income, and The adjusted basis of your property. State income tax rate See Recapture of excess depreciation, next. State income tax rate Recapture of excess depreciation. State income tax rate   You must include any excess depreciation in your gross income for the first tax year the property is not predominantly used in a qualified business use. State income tax rate Any excess depreciation must also be added to the adjusted basis of your property. State income tax rate Excess depreciation is the excess (if any) of: The amount of depreciation allowable for the property (including any section 179 deduction claimed) for tax years before the first tax year the property was not predominantly used in a qualified business use, over The amount of depreciation that would have been allowable for those years if the property were not used predominantly in a qualified business use for the year it was placed in service. State income tax rate This means you figure your depreciation using the percentages fromTable 16 or 17. State income tax rate For information on investment credit recapture, see the instructions for Form 4255. State income tax rate Deductions After Recovery Period When listed property (other than passenger automobiles) is used for business, investment, and personal purposes, no deduction is ever allowable for the personal use. State income tax rate In tax years after the recovery period, you must determine if there is any unrecovered basis remaining before you compute the depreciation deduction for that tax year. State income tax rate To make this determination, figure the depreciation for earlier tax years as if your property were used 100% for business or investment purposes, beginning with the first tax year in which some or all use is for business or investment. State income tax rate See Car Used 50% or Less for Business in Publication 917. State income tax rate Leased Property The limitations on cost recovery deductions apply to the rental of listed property. State income tax rate The following discussion covers the rules that apply to the lessor (the owner of the property) and the lessee (the person who rents the property from the owner). State income tax rate SeeLeasing a Car in Publication 917 for a discussion of leased passenger automobiles. State income tax rate Lessor The limitations on cost recovery generally do not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. State income tax rate A person is considered regularly engaged in the business of leasing listed property only if contracts for leasing of listed property are entered into with some frequency over a continuous period of time. State income tax rate This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of the person's business in its entirety. State income tax rate Occasional or incidental leasing activity is insufficient. State income tax rate For example, a person leasing only one passenger automobile during a tax year is not regularly engaged in the business of leasing automobiles. State income tax rate An employer who allows an employee to use the employer's property for personal purposes and charges the employee for the use is not regularly engaged in the business of leasing the property used by the employee. State income tax rate Lessee A lessee of listed property (other than passenger automobiles), must include an amount in gross income called the inclusion amount for the first tax year the property is not used predominantly in a qualified business use. State income tax rate Inclusion amount for property leased before 1987. State income tax rate   You determine the inclusion amount for property leased after June 18, 1984 and before 1987 by multiplying the fair market value of the property by both the average business/investment use percentage and the applicable percentage. State income tax rate You can find the applicable percentages for listed property that is 5- or 10-year recovery property in Tables 19 or 20 in Appendix A of Publication 946. State income tax rate   The lease term for listed property other than 18- or 19-year real property, and residential rental or nonresidential real property, includes options to renew. State income tax rate For 18- or 19-year real property and residential rental or nonresidential real property that is listed property, the period of the lease does not include any option to renew at fair market value, determined at the time of renewal. State income tax rate You treat two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar property as one lease. State income tax rate Special rules. State income tax rate   The lessee adds the inclusion amount to gross income in the next tax year if: The lease term begins within 9 months before the close of the lessee's tax year, The lessee does not use the property predominantly in a qualified business use during that portion of the tax year, and The lease term continues into the lessee's next tax year. State income tax rate The lessee determines the inclusion amount by taking into account the average of the business/investment use for both tax years and the applicable percentage for the tax year the lease term begins. State income tax rate   If the lease term is less than one year, the amount included in gross income is the amount that bears the same ratio to the additional inclusion amount as the number of days in the lease term bears to 365. State income tax rate Maximum inclusion amount. State income tax rate   The inclusion amount cannot be more than the sum of the deductible amounts of rent allocable to the lessee's tax year in which the amount must be included in gross income. State income tax rate What Records Must Be Kept You cannot take any depreciation or section 179 deduction for the use of listed property (including passenger automobiles) unless you can prove business/investment use with adequate records or sufficient evidence to support your own statements. State income tax rate How long to keep records. State income tax rate   For listed property, records must be kept for as long as any excess depreciation can be recaptured (included in income). State income tax rate Adequate Records To meet the adequate records requirement, you must maintain an account book, diary, log, statement of expense, trip sheet, or similar record or other documentary evidence that, together with the receipt, is sufficient to establish each element of an expenditure or use. State income tax rate It is not necessary to record information in an account book, diary, or similar record if the information is already shown on the receipt. State income tax rate However, your records should back up your receipts in an orderly manner. State income tax rate Elements of Expenditure or Use The records or other documentary evidence must support: The amount of each separate expenditure, such as the cost of acquiring the item, maintenance and repair costs, capital improvement costs, lease payments, and any other expenses, The amount of each business and investment use (based on an appropriate measure, such as mileage for vehicles and time for other listed property), and the total use of the property for the tax year, The date of the expenditure or use, and The business or investment purpose for the expenditure or use. State income tax rate Written documents of your expenditure or use are generally better evidence than oral statements alone. State income tax rate A written record prepared at or near the time of the expenditure or use has greater value as proof of the expenditure or use. State income tax rate A daily log is not required. State income tax rate However, some type of record containing the elements of an expenditure or the business or investment use of listed property made at or near the time and backed up by other documents is preferable to a statement prepared later. State income tax rate Timeliness The elements of an expenditure or use must be recorded at the time you have full knowledge of the elements. State income tax rate An expense account statement made from an account book, diary, or similar record prepared or maintained at or near the time of the expenditure or use is generally considered a timely record if in the regular course of business: The statement is submitted by an employee to the employer, or The statement is submitted by an independent contractor to the client or customer. State income tax rate For example, a log maintained on a weekly basis, which accounts for use during the week, will be considered a record made at or near the time of use. State income tax rate Business Purpose Supported An adequate record of business purpose must generally be in the form of a written statement. State income tax rate However, the amount of backup necessary to establish a business purpose depends on the facts and circumstances of each case. State income tax rate A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. State income tax rate For example, a salesperson visiting customers on an established sales route will not normally need a written explanation of the business purpose of his or her travel. State income tax rate Business Use Supported An adequate record contains enough information on each element of every business or investment use. State income tax rate The amount of detail required to support the use depends on the facts and circumstances. State income tax rate For example, a taxpayer whose only business use of a truck is to make customer deliveries on an established route can satisfy the requirement by recording the length of the route, including the total number of miles driven during the tax year and the date of each trip at or near the time of the trips. State income tax rate Although an adequate record generally must be written, a record of the business use of listed property, such as a computer or automobile, can be prepared in a computer memory device using a logging program. State income tax rate Separate or Combined Expenditures or Uses Each use by you is normally considered a separate use. State income tax rate However, repeated uses can be combined as a single item. State income tax rate Each expenditure is recorded as a separate item and not combined with other expenditures. State income tax rate If you choose, however, amounts spent for the use of listed property during a tax year, such as for gasoline or automobile repairs, can be combined. State income tax rate If these expenses are combined, you do not need to support the business purpose of each expense. State income tax rate Instead, you can divide the expenses based on the total business use of the listed property. State income tax rate Uses which can be considered part of a single use, such as a round trip or uninterrupted business use, can be accounted for by a single record. State income tax rate For example, use of a truck to make deliveries at several locations which begin and end at the business premises and can include a stop at the business in between deliveries can be accounted for by a single record of miles driven. State income tax rate Use of a passenger automobile by a salesperson for a business trip away from home over a period of time can be accounted for by a single record of miles traveled. State income tax rate Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. State income tax rate Confidential Information If any of the information on the elements of an expenditure or use is confidential, it does not need to be in the account book or similar record if it is recorded at or near the time of the expenditure or use. State income tax rate It must be kept elsewhere and made available as support to the district director on request. State income tax rate Substantial Compliance If you have not fully supported a particular element of an expenditure or use, but have complied with the adequate records requirement for the expenditure or use to the district director's satisfaction, you can establish this element by any evidence the district director deems adequate. State income tax rate If you fail to establish that you have substantially complied with the adequate records requirement for an element of an expenditure or use to the district director's satisfaction, you must establish the element: By your own oral or written statement containing detailed information as to the element, and By other evidence sufficient to establish the element. State income tax rate If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. State income tax rate If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. State income tax rate Sampling You can maintain an adequate record for portions of a tax year and use that record to support your business and investment use for the entire tax year if it can be shown by other evidence that the periods for which an adequate record is maintained are representative of use throughout the year. State income tax rate Loss of Records When you establish that failure to produce adequate records is due to loss of the records through circumstances beyond your control, such as through fire, flood, earthquake, or other casualty, you have the right to support a deduction by reasonable reconstruction of your expenditures and use. State income tax rate Reporting Information on Form 4562 If you claim a deduction for any listed property, you must provide the requested information on page 2, Section B of Form 4562. State income tax rate If you claim a deduction for any vehicle, you must answer certain questions onpage 2 of Form 4562 to provide information about the vehicle use. State income tax rate Employees. State income tax rate   Employees claiming the standard mileage rate or actual expenses (including depreciation) must use Form 2106 instead of Part V of Form 4562. State income tax rate Employees claiming the standard mileage rate may be able to use Form 2106–EZ. State income tax rate Employer who provides vehicles to employees. State income tax rate   An employer who provides vehicles to employees must obtain enough information from those employees to provide the requested information onForm 4562. State income tax rate   An employer who provides more than five vehicles to employees need not include any information on his or her tax return. State income tax rate Instead, the employer must obtain the information from his or her employees and indicate on his or her return that the information was obtained and is being retained. State income tax rate   You do not need to provide the information requested on page 2 of Form 4562 if, as an employer: You can satisfy the requirements of a written policy statement for vehicles either not used for personal purposes, or not used for personal purposes other than commuting, or You treat all vehicle use by employees as personal use. State income tax rate See the instructions for Form 4562. State income tax rate Deductions in Later Years When listed property is used for business, investment, and personal purposes, no deduction is allowable for its personal use either in the current year or any later tax year. State income tax rate In later years, you must determine if there is any remaining unadjusted or unrecovered basis before you compute the depreciation deduction for that tax year. State income tax rate In making this determination, figure the depreciation deductions for earlier tax years as if the listed property were used 100% for business or investment purposes in those years, beginning with the first tax year in which some or all of the property use is for business or investment. State income tax rate For more information about deductions after the recovery period for automobiles, see Publication 917. State income tax rate Appendix The following tables are for use in figuring depreciation deductions under the ACRS system. State income tax rate Table 1. State income tax rate 15-Year Real Property* (Other Than Low-Inclome Housing) Table 3. State income tax rate Low-Income Housing* Table 6 - Table 9 Table 6 - Table 9 Table 10 - Table 13 Table 14 - Table 17 Prev  Up  Next   Home   More Online Publications