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Tax Forms For Self Employed

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Tax Forms For Self Employed

Tax forms for self employed 2. Tax forms for self employed   Withholding Tax Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Income Tax Withholding Statement. Tax forms for self employed 30% Flat Rate Withholding Social Security and Medicare TaxesGeneral Information Bilateral Social Security (Totalization) Agreements Topics - This chapter discusses: Withholding income tax from the pay of U. Tax forms for self employed S. Tax forms for self employed citizens, Withholding tax at a flat rate, and Social security and Medicare taxes. Tax forms for self employed Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 673 Statement For Claiming Exemption From Withholding on Foreign Earned Income Eligible for the Exclusion Provided by Section 911 W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification See chapter 7 for information about getting this publication and these forms. Tax forms for self employed Income Tax Withholding U. Tax forms for self employed S. Tax forms for self employed employers generally must withhold U. Tax forms for self employed S. Tax forms for self employed income tax from the pay of U. Tax forms for self employed S. Tax forms for self employed citizens working abroad unless the employer is required by foreign law to withhold foreign income tax. Tax forms for self employed Foreign earned income exclusion. Tax forms for self employed   Your employer does not have to withhold U. Tax forms for self employed S. Tax forms for self employed income taxes from wages you earn abroad if it is reasonable to believe that you will exclude them from income under the foreign earned income exclusion or the foreign housing exclusion. Tax forms for self employed   Your employer should withhold taxes from any wages you earn for working in the United States. Tax forms for self employed Statement. Tax forms for self employed   You can give a statement to your employer indicating that you expect to qualify for the foreign earned income exclusion under either the bona fide residence test or the physical presence test and indicating your estimated housing cost exclusion. Tax forms for self employed   Form 673 is an acceptable statement. Tax forms for self employed You can use Form 673 only if you are a U. Tax forms for self employed S. Tax forms for self employed citizen. Tax forms for self employed You do not have to use the form. Tax forms for self employed You can prepare your own statement. Tax forms for self employed See a copy of Form 673, later. Tax forms for self employed   Generally, your employer can stop the withholding once you submit the statement that includes a declaration that the statement is made under penalties of perjury. Tax forms for self employed However, if your employer has reason to believe that you will not qualify for either the foreign earned income or the foreign housing exclusion, your employer must continue to withhold. Tax forms for self employed   In determining whether your foreign earned income is more than the limit on either the foreign earned income exclusion or the foreign housing exclusion, if your employer has any information about pay you received from any other source outside the United States, your employer must take that information into account. Tax forms for self employed Foreign tax credit. Tax forms for self employed   If you plan to take a foreign tax credit, you may be eligible for additional withholding allowances on Form W-4. Tax forms for self employed You can take these additional withholding allowances only for foreign tax credits attributable to taxable salary or wage income. Tax forms for self employed Withholding from pension payments. Tax forms for self employed   U. Tax forms for self employed S. Tax forms for self employed payers of benefits from employer-deferred compensation plans, individual retirement plans, and commercial annuities generally must withhold income tax from payments delivered outside of the United States. Tax forms for self employed You can choose exemption from withholding if you: Provide the payer of the benefits with a residence address in the United States or a U. Tax forms for self employed S. Tax forms for self employed possession, or Certify to the payer that you are not a U. Tax forms for self employed S. Tax forms for self employed citizen or resident alien or someone who left the United States to avoid tax. Tax forms for self employed Check your withholding. Tax forms for self employed   Before you report U. Tax forms for self employed S. Tax forms for self employed income tax withholding on your tax return, you should carefully review all information documents, such as Form W-2, Wage and Tax Statement, and the Form 1099 information returns. Tax forms for self employed Compare other records, such as final pay records or bank statements, with Form W-2 or Form 1099 to verify the withholding on these forms. Tax forms for self employed Check your U. Tax forms for self employed S. Tax forms for self employed income tax withholding even if you pay someone else to prepare your tax return. Tax forms for self employed You may be assessed penalties and interest if you claim more than your correct amount of withholding allowances. Tax forms for self employed This image is too large to be displayed in the current screen. Tax forms for self employed Please click the link to view the image. Tax forms for self employed Form 673 30% Flat Rate Withholding Generally, U. Tax forms for self employed S. Tax forms for self employed payers of income other than wages, such as dividends and royalties, are required to withhold tax at a flat 30% (or lower treaty) rate on nonwage income paid to nonresident aliens. Tax forms for self employed If you are a U. Tax forms for self employed S. Tax forms for self employed citizen or resident alien and this tax is withheld in error from payments to you because you have a foreign address, you should notify the payer of the income to stop the withholding. Tax forms for self employed Use Form W-9 to notify the payer. Tax forms for self employed You can claim the tax withheld in error as a withholding credit on your tax return if the amount is not adjusted by the payer. Tax forms for self employed Social security benefits paid to residents. Tax forms for self employed   If you are a lawful permanent resident (green card holder) and a flat 30% tax was withheld in error on your social security benefits, the tax is refundable by the Social Security Administration (SSA) or the IRS. Tax forms for self employed The SSA will refund the tax withheld if the refund can be processed during the same calendar year in which the tax was withheld. Tax forms for self employed If the SSA cannot refund the tax withheld, you must file a Form 1040 or 1040A with the Internal Revenue Service Center at the address listed under Where To File to determine if you are entitled to a refund. Tax forms for self employed The following information must be submitted with your Form 1040 or Form 1040A. Tax forms for self employed A copy of Form SSA-1042S, Social Security Benefit Statement. Tax forms for self employed A copy of your “green card. Tax forms for self employed ” A signed declaration that includes the following statements. Tax forms for self employed   “I am a U. Tax forms for self employed S. Tax forms for self employed lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Tax forms for self employed I am filing a U. Tax forms for self employed S. Tax forms for self employed income tax return for the taxable year as a resident alien reporting all of my worldwide income. Tax forms for self employed I have not claimed benefits for the taxable year under an income tax treaty as a nonresident alien. Tax forms for self employed ” Social Security and Medicare Taxes Social security and Medicare taxes may apply to wages paid to an employee regardless of where the services are performed. Tax forms for self employed General Information In general, U. Tax forms for self employed S. Tax forms for self employed social security and Medicare taxes do not apply to wages for services you perform as an employee outside the United States unless one of the following exceptions applies. Tax forms for self employed You perform the services on or in connection with an American vessel or aircraft (defined later) and either: You entered into your employment contract within the United States, or The vessel or aircraft touches at a U. Tax forms for self employed S. Tax forms for self employed port while you are employed on it. Tax forms for self employed You are working in one of the countries with which the United States has entered into a bilateral social security agreement (discussed later). Tax forms for self employed You are working for an American employer (defined later). Tax forms for self employed You are working for a foreign affiliate (defined later) of an American employer under a voluntary agreement entered into between the American employer and the U. Tax forms for self employed S. Tax forms for self employed Treasury Department. Tax forms for self employed American vessel or aircraft. Tax forms for self employed   An American vessel is any vessel documented or numbered under the laws of the United States and any other vessel whose crew is employed solely by one or more U. Tax forms for self employed S. Tax forms for self employed citizens, residents, or corporations. Tax forms for self employed An American aircraft is an aircraft registered under the laws of the United States. Tax forms for self employed American employer. Tax forms for self employed   An American employer includes any of the following. Tax forms for self employed The U. Tax forms for self employed S. Tax forms for self employed Government or any of its instrumentalities. Tax forms for self employed An individual who is a resident of the United States. Tax forms for self employed A partnership of which at least two-thirds of the partners are U. Tax forms for self employed S. Tax forms for self employed residents. Tax forms for self employed A trust of which all the trustees are U. Tax forms for self employed S. Tax forms for self employed residents. Tax forms for self employed A corporation organized under the laws of the United States, any U. Tax forms for self employed S. Tax forms for self employed state, or the District of Columbia, Puerto Rico, the U. Tax forms for self employed S. Tax forms for self employed Virgin Islands, Guam, or American Samoa. Tax forms for self employed   An American employer also includes any foreign person with an employee who is performing services in connection with a contract between the U. Tax forms for self employed S. Tax forms for self employed government (or any instrumentality thereof) and a member of a domestically controlled group of entities which includes such foreign person. Tax forms for self employed Foreign affiliate. Tax forms for self employed   A foreign affiliate of an American employer is any foreign entity in which the American employer has at least a 10% interest, directly or through one or more entities. Tax forms for self employed For a corporation, the 10% interest must be in its voting stock. Tax forms for self employed For any other entity, the 10% interest must be in its profits. Tax forms for self employed   Form 2032, Contract Coverage Under Title II of the Social Security Act, is used by American employers to extend social security coverage to U. Tax forms for self employed S. Tax forms for self employed citizens and resident aliens working abroad for foreign affiliates of American employers. Tax forms for self employed Once you enter into an agreement, coverage cannot be terminated. Tax forms for self employed Excludable meals and lodging. Tax forms for self employed   Social security tax does not apply to the value of meals and lodging provided to you for the convenience of your employer if it is reasonable to believe that you will be able to exclude the value from your income. Tax forms for self employed Bilateral Social Security (Totalization) Agreements The United States has entered into agreements with some foreign countries to coordinate social security coverage and taxation of workers who are employed in those countries. Tax forms for self employed These agreements are commonly referred to as totalization agreements and are in effect with the following countries. Tax forms for self employed Australia Greece Norway Austria Ireland Poland Belgium Italy Portugal Canada Japan Spain Chile Korea, Sweden Czech South Switzerland Republic Luxembourg United Denmark Netherlands Kingdom Finland     France     Germany           Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. Tax forms for self employed The agreements generally make sure that you pay social security taxes to only one country. Tax forms for self employed Generally, under these agreements, you will only be subject to social security taxes in the country where you are working. Tax forms for self employed However, if you are temporarily sent to work in a foreign country and your pay would otherwise be subject to social security taxes in both the United States and that country, you generally can remain covered only by U. Tax forms for self employed S. Tax forms for self employed social security. Tax forms for self employed You can get more information on any specific agreement by contacting: Social Security Administration Office of International Programs P. Tax forms for self employed O. Tax forms for self employed Box 17741 Baltimore, MD 21235-7741 If you have access to the Internet, you can get more information at: http://www. Tax forms for self employed socialsecurity. Tax forms for self employed gov/international. Tax forms for self employed Covered by U. Tax forms for self employed S. Tax forms for self employed only. Tax forms for self employed   If your pay in a foreign country is subject only to U. Tax forms for self employed S. Tax forms for self employed social security tax and is exempt from foreign social security tax, your employer should get a certificate of coverage from the Office of International Programs. Tax forms for self employed Covered by foreign country only. Tax forms for self employed   If you are permanently working in a foreign country with which the United States has a social security agreement and, under the agreement, your pay is exempt from U. Tax forms for self employed S. Tax forms for self employed social security tax, you or your employer should get a statement from the authorized official or agency of the foreign country verifying that your pay is subject to social security coverage in that country. Tax forms for self employed   If the authorities of the foreign country will not issue such a statement, either you or your employer should get a statement from the U. Tax forms for self employed S. Tax forms for self employed Social Security Administration, Office of International Programs, at the address listed earlier. Tax forms for self employed The statement should indicate that your wages are not covered by the U. Tax forms for self employed S. Tax forms for self employed social security system. Tax forms for self employed   This statement should be kept by your employer because it establishes that your pay is exempt from U. Tax forms for self employed S. Tax forms for self employed social security tax. Tax forms for self employed   Only wages paid on or after the effective date of the totalization agreement can be exempt from U. Tax forms for self employed S. Tax forms for self employed social security tax. Tax forms for self employed Prev  Up  Next   Home   More Online Publications
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Understanding Your CP156 Notice

We received your Form 990-T, Exempt Organization Business Income Tax Return and Form 8941, Credit for Small Employer Health Premiums


However, we reduced your credit based on the following:


In accordance with the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, certain automatic reductions take place as of March 1, 2013.


These required reductions include a reduction to the refundable portion of the Small Business Health Care Tax Credit for certain small tax-exempt employers under Internal Revenue Code Section 45R.


As a result, the refundable portion of your claim will be reduced 8.7% percent. The sequestration reduction rate will be applied until the end of the fiscal year (September 30, 2013), or intervening Congressional action, at which time the sequestration rate is subject to change.
 


What you need to do

  • No action is required

  • Answers to Common Questions

    Can I appeal the decision to reduce my refund?
    Reduction in the amount of your refund is required of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended and can't be appealed.

Page Last Reviewed or Updated: 26-Mar-2014

Printable samples of this notice (PDF)

 

 

How to get help

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

The Tax Forms For Self Employed

Tax forms for self employed 4. Tax forms for self employed   Communications and Air Transportation Taxes Table of Contents Uncollected Tax Report Communications TaxLocal-only service. Tax forms for self employed Private communication service. Tax forms for self employed Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes Excise taxes are imposed on amounts paid for certain facilities and services. Tax forms for self employed If you receive any payment on which tax is imposed, you are required to collect the tax, file returns, and pay the tax over to the government. Tax forms for self employed If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. Tax forms for self employed See chapter 14, later. Tax forms for self employed Uncollected Tax Report A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. Tax forms for self employed The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid. Tax forms for self employed Regular method taxpayers. Tax forms for self employed   For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported. Tax forms for self employed Alternative method taxpayers. Tax forms for self employed   For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. Tax forms for self employed See Alternative method in  chapter 11. Tax forms for self employed Where to file. Tax forms for self employed    Do not file the uncollected tax report with Form 720. Tax forms for self employed Instead, mail the report to: Internal Revenue Service Excise Tax Program SE:S:SP:EX MS C9-109 5000 Ellin Rd. Tax forms for self employed  Lanham, MD 20706 Communications Tax A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service. Tax forms for self employed Local telephone service. Tax forms for self employed   This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. Tax forms for self employed Local telephone service also includes any facility or services provided in connection with this service. Tax forms for self employed The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor does not also provide access to a local telecommunications system. Tax forms for self employed Local-only service. Tax forms for self employed   Local-only service is local telephone service as described above, provided under a plan that does not include long distance telephone service or that separately states the charge for local service on the bill to customers. Tax forms for self employed Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service. Tax forms for self employed Private communication service. Tax forms for self employed   Private communication service is not local telephone service. Tax forms for self employed Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. Tax forms for self employed However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations. Tax forms for self employed Teletypewriter exchange service. Tax forms for self employed   This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system. Tax forms for self employed Figuring the tax. Tax forms for self employed   The tax is based on the sum of all charges for local telephone service included in the bill. Tax forms for self employed However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. Tax forms for self employed The tax on the remaining items not included in any group is based on the charge for each item separately. Tax forms for self employed Do not include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill. Tax forms for self employed Exemptions Payments for certain services or payments from certain users are exempt from the communications tax. Tax forms for self employed Nontaxable service. Tax forms for self employed   Nontaxable service means bundled service and long distance service. Tax forms for self employed Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service. Tax forms for self employed Bundled service. Tax forms for self employed   Bundled service is local and long distance service provided under a plan that does not separately state the charge for the local telephone service. Tax forms for self employed Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. Tax forms for self employed Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. Tax forms for self employed If Voice over Internet Protocol service provides both local and long distance service and the charges are not separately stated, such service is bundled service. Tax forms for self employed   The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, does not affect whether a service is local-only or bundled. Tax forms for self employed Long distance service. Tax forms for self employed   Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller. Tax forms for self employed Pre-paid telephone cards (PTC). Tax forms for self employed   A PTC will be treated as bundled service unless a PTC expressly states it is for local-only service. Tax forms for self employed Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. Tax forms for self employed The transferee is the first person that is not a carrier to whom a PTC is transferred by the carrier. Tax forms for self employed The transferee is the person liable for the tax and is eligible to request a credit or refund. Tax forms for self employed For more information, see Regulations section 49. Tax forms for self employed 4251-4. Tax forms for self employed   The holder is the person that purchases a PTC to use and not to resell. Tax forms for self employed Holders are not liable for the tax and cannot request a credit or refund. Tax forms for self employed Pre-paid cellular telephones. Tax forms for self employed   Rules similar to the PTC rules described above apply to pre-paid cellular telephones. Tax forms for self employed The transferee is the person eligible to request the credit or refund. Tax forms for self employed Installation charges. Tax forms for self employed   The tax does not apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. Tax forms for self employed However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance. Tax forms for self employed Answering services. Tax forms for self employed   The tax does not apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they do not provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system. Tax forms for self employed Mobile radio telephone service. Tax forms for self employed   The tax does not apply to payments for a two-way radio service that does not provide access to a local telephone system. Tax forms for self employed Coin-operated telephones. Tax forms for self employed   The tax for local telephone service does not apply to payments made for services by inserting coins in public coin-operated telephones. Tax forms for self employed But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. Tax forms for self employed Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge. Tax forms for self employed Telephone-operated security systems. Tax forms for self employed   The tax does not apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. Tax forms for self employed In addition, the tax does not apply to any amounts paid for rented communication equipment used in the security system. Tax forms for self employed News services. Tax forms for self employed   The tax on teletypewriter exchange service does not apply to charges for the following news services. Tax forms for self employed Services dealing exclusively with the collection or dissemination of news for or through the public press or radio or television broadcasting. Tax forms for self employed Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press. Tax forms for self employed This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). Tax forms for self employed For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose. Tax forms for self employed Services not exempted. Tax forms for self employed   The tax applies to amounts paid by members of the news media for local telephone service. Tax forms for self employed International organizations and the American Red Cross. Tax forms for self employed   The tax does not apply to communication services furnished to an international organization or to the American National Red Cross. Tax forms for self employed Nonprofit hospitals. Tax forms for self employed   The tax does not apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. Tax forms for self employed Also, the tax does not apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours. Tax forms for self employed Nonprofit educational organizations. Tax forms for self employed   The tax does not apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. Tax forms for self employed A nonprofit educational organization is one that satisfies all the following requirements. Tax forms for self employed It normally maintains a regular faculty and curriculum. Tax forms for self employed It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. Tax forms for self employed It is exempt from income tax under section 501(a). Tax forms for self employed This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications. Tax forms for self employed Qualified blood collector organizations. Tax forms for self employed   The tax does not apply to telephone services furnished to qualified blood collector organizations for their use. Tax forms for self employed A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered with the IRS, and Registered by the Food and Drug Administration to collect blood. Tax forms for self employed Federal, state, and local government. Tax forms for self employed   The tax does not apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. Tax forms for self employed Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the exercise of an essential tribal government function. Tax forms for self employed Exemption certificate. Tax forms for self employed   Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. Tax forms for self employed See Regulations section 49. Tax forms for self employed 4253-11. Tax forms for self employed File the certificate with the provider of the communication services. Tax forms for self employed An exemption certificate is not required for nontaxable services. Tax forms for self employed   The following users that are exempt from the communications tax do not have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax. Tax forms for self employed The American National Red Cross and other international organizations. Tax forms for self employed Nonprofit hospitals. Tax forms for self employed Nonprofit educational organizations. Tax forms for self employed Qualified blood collector organizations. Tax forms for self employed State and local governments. Tax forms for self employed   The federal government does not have to file any exemption certificate. Tax forms for self employed   All other organizations must furnish exemption certificates when required. Tax forms for self employed Credits or Refunds If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Tax forms for self employed Alternatively, the person who paid the tax may claim a refund. Tax forms for self employed For more information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Tax forms for self employed Collectors. Tax forms for self employed   The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Tax forms for self employed These requirements also apply to nontaxable service refunds. Tax forms for self employed Collectors using the regular method for deposits. Tax forms for self employed   Collectors using the regular method for deposits must use Form 720X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Tax forms for self employed Collectors using the alternative method for deposits. Tax forms for self employed   Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Tax forms for self employed For more information, see the Instructions for Form 720. Tax forms for self employed Air Transportation Taxes Taxes are imposed on amounts paid for: Transportation of persons by air, Use of international air travel facilities, and Transportation of property by air. Tax forms for self employed Transportation of Persons by Air The tax on transportation of persons by air is made up of the: Percentage tax, and Domestic-segment tax. Tax forms for self employed Percentage tax. Tax forms for self employed   A tax of 7. Tax forms for self employed 5% applies to amounts paid for taxable transportation of persons by air. Tax forms for self employed Amounts paid for transportation include charges for layover or waiting time and movement of aircraft in deadhead service. Tax forms for self employed Mileage awards. Tax forms for self employed   The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. Tax forms for self employed For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses. Tax forms for self employed   Generally, the percentage tax does not apply to amounts paid for mileage awards where the mileage awards cannot, under any circumstances, be redeemed for air transportation that is subject to the tax. Tax forms for self employed Until regulations are issued, the following rules apply to mileage awards. Tax forms for self employed Amounts paid for mileage awards that cannot be redeemed for taxable transportation beginning and ending in the United States are not subject to the tax. Tax forms for self employed For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and thus not redeemable for taxable transportation beginning and ending in the United States. Tax forms for self employed Therefore, amounts paid to a foreign air carrier for mileage awards are not subject to the tax. Tax forms for self employed Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are not subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation. Tax forms for self employed Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles will not be awarded in connection with the purchase of taxable transportation. Tax forms for self employed Domestic-segment tax. Tax forms for self employed   The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. Tax forms for self employed However, see Rural airports, later. Tax forms for self employed A segment is a single takeoff and a single landing. Tax forms for self employed The amount of the domestic-segment tax is in the Instructions for Form 720. Tax forms for self employed Charter flights. Tax forms for self employed    If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft. Tax forms for self employed Rural airports. Tax forms for self employed   The domestic-segment tax does not apply to a segment to or from a rural airport. Tax forms for self employed An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true: The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year, The airport was receiving essential air service subsidies as of August 5, 1997, or The airport is not connected by paved roads to another airport. Tax forms for self employed   To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles. Tax forms for self employed   An updated list of rural airports can be found on the Department of Transportation website at www. Tax forms for self employed dot. Tax forms for self employed gov and enter the phrase “Essential Air Service” in the search box. Tax forms for self employed Taxable transportation. Tax forms for self employed   Taxable transportation is transportation by air that meets either of the following tests. Tax forms for self employed It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental United States boundary (this is the 225-mile zone). Tax forms for self employed It is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it is not a part of uninterrupted international air transportation, discussed later. Tax forms for self employed Round trip. Tax forms for self employed   A round trip is considered two separate trips. Tax forms for self employed The first trip is from the point of departure to the destination. Tax forms for self employed The second trip is the return trip from that destination. Tax forms for self employed Uninterrupted international air transportation. Tax forms for self employed   This means transportation entirely by air that does not begin and end in the United States or in the 225-mile zone if there is not more than a 12-hour scheduled interval between arrival and departure at any station in the United States. Tax forms for self employed For a special rule that applies to military personnel, see Exemptions, later. Tax forms for self employed Transportation between the continental U. Tax forms for self employed S. Tax forms for self employed and Alaska or Hawaii. Tax forms for self employed   This transportation is partially exempt from the tax on transportation of persons by air. Tax forms for self employed The tax does not apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. Tax forms for self employed Leaving or entering occurs when the route of the transportation passes over either the United States border or a point 3 nautical miles (3. Tax forms for self employed 45 statute miles) from low tide on the coast line, or when it leaves a port or station in the 225-mile zone. Tax forms for self employed Therefore, this transportation is subject to the percentage tax on the part of the trip in U. Tax forms for self employed S. Tax forms for self employed airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities, discussed later. Tax forms for self employed Transportation within Alaska or Hawaii. Tax forms for self employed   The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. Tax forms for self employed The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska). Tax forms for self employed Package tours. Tax forms for self employed   The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. Tax forms for self employed The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free. Tax forms for self employed ” This rule also applies to the tax on the use of international air travel facilities, discussed later. Tax forms for self employed Liability for tax. Tax forms for self employed   The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. Tax forms for self employed However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax. Tax forms for self employed    A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. Tax forms for self employed However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. Tax forms for self employed An independent third party that is not under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, is not required to collect the tax and pay it to the government. Tax forms for self employed For more information on resellers of air transportation, see Revenue Ruling 2006-52. Tax forms for self employed You can find Revenue Ruling 2006-52 on page 761 of I. Tax forms for self employed R. Tax forms for self employed B. Tax forms for self employed 2006-43 at www. Tax forms for self employed irs. Tax forms for self employed gov/pub/irs-irbs/irb06-43. Tax forms for self employed pdf. Tax forms for self employed   The fact that the aircraft does not use public or commercial airports in taking off and landing has no effect on the tax. Tax forms for self employed But see Certain helicopter uses, later. Tax forms for self employed   For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. Tax forms for self employed   If the tax is not paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax. Tax forms for self employed Exemptions. Tax forms for self employed   The tax on transportation of persons by air does not apply in the following situations. Tax forms for self employed See also Special Rules on Transportation Taxes, later. Tax forms for self employed Military personnel on international trips. Tax forms for self employed   When traveling in uniform at their own expense, United States military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation (defined earlier) even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. Tax forms for self employed However, such personnel must buy their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. Tax forms for self employed The trip must begin or end outside the United States and the 225-mile zone. Tax forms for self employed Certain helicopter uses. Tax forms for self employed   The tax does not apply to air transportation by helicopter if the helicopter is used for any of the following purposes. Tax forms for self employed Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Tax forms for self employed Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Tax forms for self employed Providing emergency medical transportation. Tax forms for self employed   However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Tax forms for self employed For item (1), treat each flight segment as a separate flight. Tax forms for self employed Fixed-wing aircraft uses. Tax forms for self employed   The tax does not apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes. Tax forms for self employed Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Tax forms for self employed Providing emergency medical transportation. Tax forms for self employed The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Tax forms for self employed   However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Tax forms for self employed Skydiving. Tax forms for self employed   The tax does not apply to any air transportation exclusively for the purpose of skydiving. Tax forms for self employed Seaplanes. Tax forms for self employed   The tax does not apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur are not receiving financial assistance from the Airport and Airways Trust Fund. Tax forms for self employed Bonus tickets. Tax forms for self employed   The tax does not apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. Tax forms for self employed However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets. Tax forms for self employed International Air Travel Facilities A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. Tax forms for self employed However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. Tax forms for self employed This tax does not apply if all the transportation is subject to the percentage tax, discussed earlier. Tax forms for self employed It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. Tax forms for self employed See the Instructions for Form 720 for the tax rates. Tax forms for self employed Transportation of Property by Air A tax of 6. Tax forms for self employed 25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. Tax forms for self employed The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. Tax forms for self employed The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire. Tax forms for self employed The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. Tax forms for self employed Thus, the tax does not apply to transportation of property by air that begins or ends outside the United States. Tax forms for self employed Exemptions. Tax forms for self employed   The tax on transportation of property by air does not apply in the following situations. Tax forms for self employed See also Special Rules on Transportation Taxes, later. Tax forms for self employed Cropdusting and firefighting service. Tax forms for self employed   The tax does not apply to amounts paid for cropdusting or aerial firefighting service. Tax forms for self employed Exportation. Tax forms for self employed    The tax does not apply to payments for transportation of property by air in the course of exportation (including to United States possessions) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. Tax forms for self employed See Form 1363 for more information. Tax forms for self employed Certain helicopter and fixed-wing air ambulance uses. Tax forms for self employed   The tax does not apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts. Tax forms for self employed   The tax also does not apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. Tax forms for self employed The fixed-wing aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Tax forms for self employed Skydiving. Tax forms for self employed   The tax does not apply to any air transportation exclusively for the purpose of skydiving. Tax forms for self employed Excess baggage. Tax forms for self employed    The tax does not apply to excess baggage accompanying a passenger on an aircraft operated on an established line. Tax forms for self employed Surtax on fuel used in a fractional ownership program aircraft. Tax forms for self employed   The tax does not apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. Tax forms for self employed Alaska and Hawaii. Tax forms for self employed   For transportation of property to and from Alaska and Hawaii, the tax in general does not apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). Tax forms for self employed But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. Tax forms for self employed The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States. Tax forms for self employed Liability for tax. Tax forms for self employed   The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government. Tax forms for self employed   If tax is not paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States. Tax forms for self employed Special Rules on Transportation Taxes In certain circumstances, special rules apply to the taxes on transportation of persons and property by air. Tax forms for self employed Aircraft used by affiliated corporations. Tax forms for self employed   The taxes do not apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. Tax forms for self employed However, the aircraft must be owned or leased by a member of the affiliated group and cannot be available for hire by a nonmember of the affiliated group. Tax forms for self employed Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis. Tax forms for self employed   For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership. Tax forms for self employed Small aircraft. Tax forms for self employed   The taxes do not apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. Tax forms for self employed However, the taxes do apply if the aircraft is operated on an established line. Tax forms for self employed “Operated on an established line” means the aircraft operates with some degree of regularity between definite points. Tax forms for self employed However, it does not include any time an aircraft is being operated on a flight that is solely for sightseeing. Tax forms for self employed   Consider an aircraft to be operated on an established line if it is operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis. Tax forms for self employed   Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it is operated on an established line. Tax forms for self employed Mixed load of persons and property. Tax forms for self employed   If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. Tax forms for self employed The allocation must be reasonable and supported by adequate records. Tax forms for self employed Credits or refunds. Tax forms for self employed   If tax is collected and paid over for air transportation that is not taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Tax forms for self employed Alternatively, the person who paid the tax may claim a refund. Tax forms for self employed For information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. 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