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Tax Return 2011 Deadline

1040 Ez Tax FormsFree Printable Tax FormsFree Federal TaxesFile State Return1040 Easy Form 20122011 Income Tax BracketsFile 1040Where To File Federal Tax Return 2011Tax Forms 1040xIrs 1040ez Online FileFree Taxes OnlineIrs Forms 2012 Taxes1040ez Tax Forms 2011How To Amend 10401040 EzAmend 2013 Tax ReturnFree State Tax PrepFederal 1040 Ez FormFederal Income Tax Forms 2012Filing Amended Tax Return OnlineCan You Efile A 1040x1040ez 2010printable Tax Forms2010 1040ez FormFile 1040ez Online FreeUnemployment Tax FormFiling State Taxes OnlyFederal And State Tax FormsTax Forms For 2012 FederalFiling Income Tax For 2012File Amended Tax Return 2011 OnlineNeed Do 2011 Taxes2010 Tax Return Form2012 Form 1040 FormA Software With 1040xForm 1040ezTurbo Tax 2012How To File 2011 Taxes For FreeFile Late2013 Tax Forms 1040ez1040eztaxform

Tax Return 2011 Deadline

Tax return 2011 deadline Publication 51 - Additional Material Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding your CP08 Notice

You may qualify for the Additional Child Tax Credit and be entitled to some additional money.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully.
  • Complete the Additional Child Tax Credit Worksheet. If the worksheet confirms that you have at least one qualifying child, sign and date the worksheet, and complete Form 1040 Schedule 8812.
  • Mail both the worksheet and Form 1040 Schedule 8812 in the envelope provided.

You may want to...


Answers to Common Questions

I lost the return envelope. Where do I mail my worksheet and Form 8812?
Mail the worksheet and form to the address listed on the top left corner of the worksheet. This is the IRS center that handles cases in your region, so it’s important you send it there to avoid potential delays in processing.

What’s the difference between the "Child Tax Credit" and the "Additional Child Tax Credit"? Can I qualify for both?
The Child Tax Credit is for people who have a qualifying child. The maximum amount you can claim is $1000 for each qualifying child. The Additional Child Tax Credit is for individuals who receive less than the full amount of Child Tax Credit. You may qualify for both the Child Tax Credit and the Additional Child Tax Credit.

I sent you my worksheet and form. When will I get the refund?
We’ll review your form and worksheet and make a determination for your credit. If we deny your credit, we’ll send you a letter explaining why, but if you owe no other amount, you should receive your refund in 8 to 10 weeks. If you don't hear from us after 8 to 10 weeks, call our "Where’s My Refund?" toll free line at 1-800-829-1954 to check on the status of your refund.

My son/daughter is turning 18 this year. Can I still get the Additional Child Tax Credit?
No. Your child must be under age 17 at the end of 2009 to qualify for both the Child Tax Credit and the Additional Child Tax Credit.


Tips for next year

If you have dependent children, remember to claim the Additional Child Tax Credit the next time your file your 1040 or 1040A tax return. To do this, complete and attach Form 1040 Schedule 8812 to your return.

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

Page Last Reviewed or Updated: 28-Mar-2014

The Tax Return 2011 Deadline

Tax return 2011 deadline 4. Tax return 2011 deadline   How Income of Aliens Is Taxed Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident Aliens Nonresident AliensTrade or Business in the United States Effectively Connected Income The 30% Tax Income From Real Property Transportation Tax Interrupted Period of Residence Expatriation TaxExpatriation Before June 4, 2004 Expatriation After June 3, 2004, and Before June 17, 2008 Expatriation After June 16, 2008 Introduction Resident and nonresident aliens are taxed in different ways. Tax return 2011 deadline Resident aliens are generally taxed in the same way as U. Tax return 2011 deadline S. Tax return 2011 deadline citizens. Tax return 2011 deadline Nonresident aliens are taxed based on the source of their income and whether or not their income is effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline The following discussions will help you determine if income you receive during the tax year is effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business and how it is taxed. Tax return 2011 deadline Topics - This chapter discusses: Income that is effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline Income that is not effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline Interrupted period of residence. Tax return 2011 deadline Expatriation tax. Tax return 2011 deadline Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 1212 List of Original Issue Discount Instruments Form (and Instructions) 6251 Alternative Minimum Tax—Individuals Schedule D (Form 1040) Capital Gains and Losses See chapter 12 for information about getting these publications and forms. Tax return 2011 deadline Resident Aliens Resident aliens are generally taxed in the same way as U. Tax return 2011 deadline S. Tax return 2011 deadline citizens. Tax return 2011 deadline This means that their worldwide income is subject to U. Tax return 2011 deadline S. Tax return 2011 deadline tax and must be reported on their U. Tax return 2011 deadline S. Tax return 2011 deadline tax return. Tax return 2011 deadline Income of resident aliens is subject to the graduated tax rates that apply to U. Tax return 2011 deadline S. Tax return 2011 deadline citizens. Tax return 2011 deadline Resident aliens use the Tax Table or Tax Computation Worksheets located in the Form 1040 instructions, which apply to U. Tax return 2011 deadline S. Tax return 2011 deadline citizens. Tax return 2011 deadline Nonresident Aliens A nonresident alien's income that is subject to U. Tax return 2011 deadline S. Tax return 2011 deadline income tax must be divided into two categories: Income that is effectively connected with a trade or business in the United States, and Income that is not effectively connected with a trade or business in the United States (discussed under The 30% Tax, later). Tax return 2011 deadline The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Tax return 2011 deadline These are the same rates that apply to U. Tax return 2011 deadline S. Tax return 2011 deadline citizens and residents. Tax return 2011 deadline Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Tax return 2011 deadline If you were formerly a U. Tax return 2011 deadline S. Tax return 2011 deadline citizen or resident alien, these rules may not apply. Tax return 2011 deadline See Expatriation Tax, later, in this chapter. Tax return 2011 deadline Trade or Business in the United States Generally, you must be engaged in a trade or business during the tax year to be able to treat income received in that year as effectively connected with that trade or business. Tax return 2011 deadline Whether you are engaged in a trade or business in the United States depends on the nature of your activities. Tax return 2011 deadline The discussions that follow will help you determine whether you are engaged in a trade or business in the United States. Tax return 2011 deadline Personal Services If you perform personal services in the United States at any time during the tax year, you usually are considered engaged in a trade or business in the United States. Tax return 2011 deadline Certain compensation paid to a nonresident alien by a foreign employer is not included in gross income. Tax return 2011 deadline For more information, see Services Performed for Foreign Employer in chapter 3. Tax return 2011 deadline Other Trade or Business Activities Other examples of being engaged in a trade or business in the United States follow. Tax return 2011 deadline Students and trainees. Tax return 2011 deadline   You are considered engaged in a trade or business in the United States if you are temporarily present in the United States as a nonimmigrant under an “F,” “J,” “M,” or “Q” visa. Tax return 2011 deadline A nonresident alien temporarily present in the United States under a “J” visa includes a nonresident alien individual admitted to the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. Tax return 2011 deadline The taxable part of any scholarship or fellowship grant that is U. Tax return 2011 deadline S. Tax return 2011 deadline source income is treated as effectively connected with a trade or business in the United States. Tax return 2011 deadline Business operations. Tax return 2011 deadline   If you own and operate a business in the United States selling services, products, or merchandise, you are, with certain exceptions, engaged in a trade or business in the United States. Tax return 2011 deadline Partnerships. Tax return 2011 deadline   If you are a member of a partnership that at any time during the tax year is engaged in a trade or business in the United States, you are considered to be engaged in a trade or business in the United States. Tax return 2011 deadline Beneficiary of an estate or trust. Tax return 2011 deadline   If you are the beneficiary of an estate or trust that is engaged in a trade or business in the United States, you are treated as being engaged in the same trade or business. Tax return 2011 deadline Trading in stocks, securities, and commodities. Tax return 2011 deadline   If your only U. Tax return 2011 deadline S. Tax return 2011 deadline business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U. Tax return 2011 deadline S. Tax return 2011 deadline resident broker or other agent, you are not engaged in a trade or business in the United States. Tax return 2011 deadline   For transactions in stocks or securities, this applies to any nonresident alien, including a dealer or broker in stocks and securities. Tax return 2011 deadline   For transactions in commodities, this applies to commodities that are usually traded on an organized commodity exchange and to transactions that are usually carried out at such an exchange. Tax return 2011 deadline   This discussion does not apply if you have a U. Tax return 2011 deadline S. Tax return 2011 deadline office or other fixed place of business at any time during the tax year through which, or by the direction of which, you carry out your transactions in stocks, securities, or commodities. Tax return 2011 deadline Trading for a nonresident alien's own account. Tax return 2011 deadline   You are not engaged in a trade or business in the United States if trading for your own account in stocks, securities, or commodities is your only U. Tax return 2011 deadline S. Tax return 2011 deadline business activity. Tax return 2011 deadline This applies even if the trading takes place while you are present in the United States or is done by your employee or your broker or other agent. Tax return 2011 deadline   This does not apply to trading for your own account if you are a dealer in stocks, securities, or commodities. Tax return 2011 deadline This does not necessarily mean, however, that as a dealer you are considered to be engaged in a trade or business in the United States. Tax return 2011 deadline Determine that based on the facts and circumstances in each case or under the rules given above in Trading in stocks, securities, and commodities . Tax return 2011 deadline Effectively Connected Income If you are engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business, all income, gain, or loss for the tax year that you get from sources within the United States (other than certain investment income) is treated as effectively connected income. Tax return 2011 deadline This applies whether or not there is any connection between the income and the trade or business being carried on in the United States during the tax year. Tax return 2011 deadline Two tests, described next under Investment Income, determine whether certain items of investment income (such as interest, dividends, and royalties) are treated as effectively connected with that business. Tax return 2011 deadline In limited circumstances, some kinds of foreign source income may be treated as effectively connected with a trade or business in the United States. Tax return 2011 deadline For a discussion of these rules, see Foreign Income , later. Tax return 2011 deadline Investment Income Investment income from U. Tax return 2011 deadline S. Tax return 2011 deadline sources that may or may not be treated as effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business generally falls into the following three categories. Tax return 2011 deadline Fixed or determinable income (interest, dividends, rents, royalties, premiums, annuities, etc. Tax return 2011 deadline ). Tax return 2011 deadline Gains (some of which are considered capital gains) from the sale or exchange of the following types of property. Tax return 2011 deadline Timber, coal, or domestic iron ore with a retained economic interest. Tax return 2011 deadline Patents, copyrights, and similar property on which you receive contingent payments after October 4, 1966. Tax return 2011 deadline Patents transferred before October 5, 1966. Tax return 2011 deadline Original issue discount obligations. Tax return 2011 deadline Capital gains (and losses). Tax return 2011 deadline Use the two tests, described next, to determine whether an item of U. Tax return 2011 deadline S. Tax return 2011 deadline source income falling in one of the three categories above and received during the tax year is effectively connected with your U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline If the tests indicate that the item of income is effectively connected, you must include it with your other effectively connected income. Tax return 2011 deadline If the item of income is not effectively connected, include it with all other income discussed under The 30% Tax later, in this chapter. Tax return 2011 deadline Asset-use test. Tax return 2011 deadline   This test usually applies to income that is not directly produced by trade or business activities. Tax return 2011 deadline Under this test, if an item of income is from assets (property) used in, or held for use in, the trade or business in the United States, it is considered effectively connected. Tax return 2011 deadline   An asset is used in, or held for use in, the trade or business in the United States if the asset is: Held for the principal purpose of promoting the conduct of a trade or business in the United States, Acquired and held in the ordinary course of the trade or business conducted in the United States (for example, an account receivable or note receivable arising from that trade or business), or Otherwise held to meet the present needs of the trade or business in the United States and not its anticipated future needs. Tax return 2011 deadline Generally, stock of a corporation is not treated as an asset used in, or held for use in, a trade or business in the United States. Tax return 2011 deadline Business-activities test. Tax return 2011 deadline   This test usually applies when income, gain, or loss comes directly from the active conduct of the trade or business. Tax return 2011 deadline The business-activities test is most important when: Dividends or interest are received by a dealer in stocks or securities, Royalties are received in the trade or business of licensing patents or similar property, or Service fees are earned by a servicing business. Tax return 2011 deadline Under this test, if the conduct of the U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business was a material factor in producing the income, the income is considered effectively connected. Tax return 2011 deadline Personal Service Income You usually are engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business when you perform personal services in the United States. Tax return 2011 deadline Personal service income you receive in a tax year in which you are engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business is effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline Income received in a year other than the year you performed the services is also effectively connected if it would have been effectively connected if received in the year you performed the services. Tax return 2011 deadline Personal service income includes wages, salaries, commissions, fees, per diem allowances, and employee allowances and bonuses. Tax return 2011 deadline The income may be paid to you in the form of cash, services, or property. Tax return 2011 deadline If you are engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business only because you perform personal services in the United States during the tax year, income and gains from assets, and gains and losses from the sale or exchange of capital assets are generally not effectively connected with your trade or business. Tax return 2011 deadline However, if there is a direct economic relationship between your holding of the asset and your trade or business of performing personal services, the income, gain, or loss is effectively connected. Tax return 2011 deadline Pensions. Tax return 2011 deadline   If you were a nonresident alien engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business after 1986 because you performed personal services in the United States, and you later receive a pension or retirement pay attributable to these services, such payments are effectively connected income in each year you receive them. Tax return 2011 deadline This is true whether or not you are engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business in the year you receive the retirement pay. Tax return 2011 deadline Transportation Income Transportation income (defined in chapter 2) is effectively connected if you meet both of the following conditions. Tax return 2011 deadline You had a fixed place of business in the United States involved in earning the income. Tax return 2011 deadline At least 90% of your U. Tax return 2011 deadline S. Tax return 2011 deadline source transportation income is attributable to regularly scheduled transportation. Tax return 2011 deadline “Fixed place of business” generally means a place, site, structure, or other similar facility through which you engage in a trade or business. Tax return 2011 deadline “Regularly scheduled transportation” means that a ship or aircraft follows a published schedule with repeated sailings or flights at regular intervals between the same points for voyages or flights that begin or end in the United States. Tax return 2011 deadline This definition applies to both scheduled and chartered air transportation. Tax return 2011 deadline If you do not meet the two conditions above, the income is not effectively connected and is taxed at a 4% rate. Tax return 2011 deadline See Transportation Tax, later, in this chapter. Tax return 2011 deadline Business Profits and Losses and Sales Transactions All profits or losses from U. Tax return 2011 deadline S. Tax return 2011 deadline sources that are from the operation of a business in the United States are effectively connected with a trade or business in the United States. Tax return 2011 deadline For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income. Tax return 2011 deadline A share of U. Tax return 2011 deadline S. Tax return 2011 deadline source profits or losses of a partnership that is engaged in a trade or business in the United States is also effectively connected with a trade or business in the United States. Tax return 2011 deadline Real Property Gain or Loss Gains and losses from the sale or exchange of U. Tax return 2011 deadline S. Tax return 2011 deadline real property interests (whether or not they are capital assets) are taxed as if you are engaged in a trade or business in the United States. Tax return 2011 deadline You must treat the gain or loss as effectively connected with that trade or business. Tax return 2011 deadline U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest. Tax return 2011 deadline   This is any interest in real property located in the United States or the U. Tax return 2011 deadline S. Tax return 2011 deadline Virgin Islands or any interest (other than as a creditor) in a domestic corporation that is a U. Tax return 2011 deadline S. Tax return 2011 deadline real property holding corporation. Tax return 2011 deadline Real property includes the following. Tax return 2011 deadline Land and unsevered natural products of the land, such as growing crops and timber, and mines, wells, and other natural deposits. Tax return 2011 deadline Improvements on land, including buildings, other permanent structures, and their structural components. Tax return 2011 deadline Personal property associated with the use of real property, such as equipment used in farming, mining, forestry, or construction or property used in lodging facilities or rented office space, unless the personal property is: Disposed of more than one year before or after the disposition of the real property, or Separately sold to persons unrelated either to the seller or to the buyer of the real property. Tax return 2011 deadline U. Tax return 2011 deadline S. Tax return 2011 deadline real property holding corporation. Tax return 2011 deadline   A corporation is a U. Tax return 2011 deadline S. Tax return 2011 deadline real property holding corporation if the fair market value of the corporation's U. Tax return 2011 deadline S. Tax return 2011 deadline real property interests are at least 50% of the total fair market value of: The corporation's U. Tax return 2011 deadline S. Tax return 2011 deadline real property interests, plus The corporation's interests in real property located outside the United States, plus The corporation's other assets that are used in, or held for use in, a trade or business. Tax return 2011 deadline   Gain or loss on the sale of the stock in any domestic corporation is taxed as if you are engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business unless you establish that the corporation is not a U. Tax return 2011 deadline S. Tax return 2011 deadline real property holding corporation. Tax return 2011 deadline   A U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest does not include a class of stock of a corporation that is regularly traded on an established securities market, unless you hold more than 5% of the fair market value of that class of stock. Tax return 2011 deadline An interest in a foreign corporation owning U. Tax return 2011 deadline S. Tax return 2011 deadline real property generally is not a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest unless the corporation chooses to be treated as a domestic corporation. Tax return 2011 deadline Qualified investment entities. Tax return 2011 deadline   Special rules apply to qualified investment entities (QIEs). Tax return 2011 deadline A QIE is any real estate investment trust (REIT) or any regulated investment company (RIC) that is a U. Tax return 2011 deadline S. Tax return 2011 deadline real property holding corporation. Tax return 2011 deadline    Generally, any distribution from a QIE to a shareholder that is attributable to gain from the sale or exchange of a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest is treated as a U. Tax return 2011 deadline S. Tax return 2011 deadline real property gain by the shareholder receiving the distribution. Tax return 2011 deadline A distribution by a QIE on stock regularly traded on an established securities market in the United States is not treated as gain from the sale or exchange of a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest if you did not own more than 5% of that stock at any time during the 1-year period ending on the date of the distribution. Tax return 2011 deadline A distribution that you do not treat as gain from the sale or exchange of a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest is included in your gross income as a regular dividend. Tax return 2011 deadline Note. Tax return 2011 deadline Beginning January 1, 2014 (unless extended by legislation), a RIC that is a U. Tax return 2011 deadline S. Tax return 2011 deadline real property holding corporation will only be treated as a QIE for certain distributions from the RIC that are directly or indirectly attributable to distributions received by the RIC from a REIT. Tax return 2011 deadline Domestically controlled QIE. Tax return 2011 deadline   The sale of an interest in a domestically controlled QIE is not the sale of a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest. Tax return 2011 deadline The entity is domestically controlled if at all times during the testing period less than 50% in value of its stock was held, directly or indirectly, by foreign persons. Tax return 2011 deadline The testing period is the shorter of (a) the 5-year period ending on the date of disposition, or (b) the period during which the entity was in existence. Tax return 2011 deadline Wash sale. Tax return 2011 deadline    If you dispose of an interest in a domestically controlled QIE in an applicable wash sale transaction, special rules apply. Tax return 2011 deadline An applicable wash sale transaction is one in which you: Dispose of an interest in the domestically controlled QIE during the 30-day period before the ex-dividend date of a distribution that you would (but for the disposition) have treated as gain from the sale or exchange of a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest, and Acquire, or enter into a contract or option to acquire, a substantially identical interest in that entity during the 61-day period that began on the first day of the 30-day period. Tax return 2011 deadline If this occurs, you are treated as having gain from the sale or exchange of a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest in an amount equal to the distribution made after June 15, 2006, that would have been treated as such gain. Tax return 2011 deadline This also applies to any substitute dividend payment. Tax return 2011 deadline   A transaction is not treated as an applicable wash sale transaction if: You actually receive the distribution from the domestically controlled QIE related to the interest disposed of, or acquired, in the transaction, or You dispose of any class of stock in a QIE that is regularly traded on an established securities market in the United States but only if you did not own more than 5% of that class of stock at any time during the 1-year period ending on the date of the distribution. Tax return 2011 deadline Alternative minimum tax. Tax return 2011 deadline   There may be a minimum tax on your net gain from the disposition of U. Tax return 2011 deadline S. Tax return 2011 deadline real property interests. Tax return 2011 deadline Figure the amount of this tax, if any, on Form 6251. Tax return 2011 deadline Withholding of tax. Tax return 2011 deadline   If you dispose of a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest, the buyer may have to withhold tax. Tax return 2011 deadline See the discussion of Tax Withheld on Real Property Sales in chapter 8. Tax return 2011 deadline Foreign Income You must treat three kinds of foreign source income as effectively connected with a trade or business in the United States if: You have an office or other fixed place of business in the United States to which the income can be attributed, That office or place of business is a material factor in producing the income, and The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. Tax return 2011 deadline An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. Tax return 2011 deadline The three kinds of foreign source income are listed below. Tax return 2011 deadline Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the United States or from any interest in such property. Tax return 2011 deadline Included are rents or royalties for the use, or for the privilege of using, outside the United States, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the United States. Tax return 2011 deadline Dividends, interest, or amounts received for the provision of a guarantee of indebtedness issued after September 27, 2010, from the active conduct of a banking, financing, or similar business in the United States. Tax return 2011 deadline A substitute dividend or interest payment received under a securities lending transaction or a sale-repurchase transaction is treated the same as the amounts received on the transferred security. Tax return 2011 deadline Income, gain, or loss from the sale outside the United States, through the U. Tax return 2011 deadline S. Tax return 2011 deadline office or other fixed place of business, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. Tax return 2011 deadline Item (3) will not apply if you sold the property for use, consumption, or disposition outside the United States and an office or other fixed place of business in a foreign country was a material factor in the sale. Tax return 2011 deadline Any foreign source income that is equivalent to any item of income described above is treated as effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline For example, foreign source interest and dividend equivalents are treated as U. Tax return 2011 deadline S. Tax return 2011 deadline effectively connected income if the income is derived by a foreign person in the active conduct of a banking, financing, or similar business within the United States. Tax return 2011 deadline Tax on Effectively Connected Income Income you receive during the tax year that is effectively connected with your trade or business in the United States is, after allowable deductions, taxed at the rates that apply to U. Tax return 2011 deadline S. Tax return 2011 deadline citizens and residents. Tax return 2011 deadline Generally, you can receive effectively connected income only if you are a nonresident alien engaged in trade or business in the United States during the tax year. Tax return 2011 deadline However, income you receive from the sale or exchange of property, the performance of services, or any other transaction in another tax year is treated as effectively connected in that year if it would have been effectively connected in the year the transaction took place or you performed the services. Tax return 2011 deadline Example. Tax return 2011 deadline Ted Richards, a nonresident alien, entered the United States in August 2012, to perform personal services in the U. Tax return 2011 deadline S. Tax return 2011 deadline office of his overseas employer. Tax return 2011 deadline He worked in the U. Tax return 2011 deadline S. Tax return 2011 deadline office until December 25, 2012, but did not leave this country until January 11, 2013. Tax return 2011 deadline On January 8, 2013, he received his final paycheck for services performed in the United States during 2012. Tax return 2011 deadline All of Ted's income during his stay here is U. Tax return 2011 deadline S. Tax return 2011 deadline source income. Tax return 2011 deadline During 2012, Ted was engaged in the trade or business of performing personal services in the United States. Tax return 2011 deadline Therefore, all amounts paid to him in 2012 for services performed in the United States during 2012 are effectively connected with that trade or business during 2012. Tax return 2011 deadline The salary payment Ted received in January 2013 is U. Tax return 2011 deadline S. Tax return 2011 deadline source income to him in 2013. Tax return 2011 deadline It is effectively connected with a trade or business in the United States because he was engaged in a trade or business in the United States during 2012 when he performed the services that earned the income. Tax return 2011 deadline Real property income. Tax return 2011 deadline   You may be able to choose to treat all income from real property as effectively connected. Tax return 2011 deadline See Income From Real Property , later, in this chapter. Tax return 2011 deadline The 30% Tax Tax at a 30% (or lower treaty) rate applies to certain items of income or gains from U. Tax return 2011 deadline S. Tax return 2011 deadline sources but only if the items are not effectively connected with your U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline Fixed or Determinable Income The 30% (or lower treaty) rate applies to the gross amount of U. Tax return 2011 deadline S. Tax return 2011 deadline source fixed or determinable annual or periodic gains, profits, or income. Tax return 2011 deadline Income is fixed when it is paid in amounts known ahead of time. Tax return 2011 deadline Income is determinable whenever there is a basis for figuring the amount to be paid. Tax return 2011 deadline Income can be periodic if it is paid from time to time. Tax return 2011 deadline It does not have to be paid annually or at regular intervals. Tax return 2011 deadline Income can be determinable or periodic even if the length of time during which the payments are made is increased or decreased. Tax return 2011 deadline Items specifically included as fixed or determinable income are interest (other than original issue discount), dividends, dividend equivalent payments (defined in chapter 2), rents, premiums, annuities, salaries, wages, and other compensation. Tax return 2011 deadline A substitute dividend or interest payment received under a securities lending transaction or a sale-repurchase transaction is treated the same as the amounts received on the transferred security. Tax return 2011 deadline Other items of income, such as royalties, also may be subject to the 30% tax. Tax return 2011 deadline Some fixed or determinable income may be exempt from U. Tax return 2011 deadline S. Tax return 2011 deadline tax. Tax return 2011 deadline See chapter 3 if you are not sure whether the income is taxable. Tax return 2011 deadline Original issue discount (OID). Tax return 2011 deadline   If you sold, exchanged, or received a payment on a bond or other debt instrument that was issued at a discount after March 31, 1972, all or part of the original issue discount (OID) (other than portfolio interest) may be subject to the 30% tax. Tax return 2011 deadline The amount of OID is the difference between the stated redemption price at maturity and the issue price of the debt instrument. Tax return 2011 deadline The 30% tax applies in the following circumstances. Tax return 2011 deadline You received a payment on a debt instrument. Tax return 2011 deadline In this case, the amount of OID subject to tax is the OID that accrued while you held the debt instrument minus the OID previously taken into account. Tax return 2011 deadline But the tax on the OID cannot be more than the payment minus the tax on the interest payment on the debt instrument. Tax return 2011 deadline You sold or exchanged the debt instrument. Tax return 2011 deadline The amount of OID subject to tax is the OID that accrued while you held the debt instrument minus the amount already taxed in (1) above. Tax return 2011 deadline   Report on your return the amount of OID shown on Form 1042-S, Foreign Person's U. Tax return 2011 deadline S. Tax return 2011 deadline Source Income Subject to Withholding, if you bought the debt instrument at original issue. Tax return 2011 deadline However, you must recompute your proper share of OID shown on Form 1042-S if any of the following apply. Tax return 2011 deadline You bought the debt instrument at a premium or paid an acquisition premium. Tax return 2011 deadline The debt instrument is a stripped bond or a stripped coupon (including zero coupon instruments backed by U. Tax return 2011 deadline S. Tax return 2011 deadline Treasury securities). Tax return 2011 deadline The debt instrument is a contingent payment or inflation-indexed debt instrument. Tax return 2011 deadline For the definition of premium and acquisition premium and instructions on how to recompute OID, get Publication 1212. Tax return 2011 deadline   If you held a bond or other debt instrument that was issued at a discount before April 1, 1972, contact the IRS for further information. Tax return 2011 deadline See chapter 12. Tax return 2011 deadline Gambling Winnings In general, nonresident aliens are subject to the 30% tax on the gross proceeds from gambling won in the United States if that income is not effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business and is not exempted by treaty. Tax return 2011 deadline However, no tax is imposed on nonbusiness gambling income a nonresident alien wins playing blackjack, baccarat, craps, roulette, or big-6 wheel in the United States. Tax return 2011 deadline Nonresident aliens are taxed at graduated rates on net gambling income won in the United States that is effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline Social Security Benefits A nonresident alien must include 85% of any U. Tax return 2011 deadline S. Tax return 2011 deadline social security benefit (and the social security equivalent part of a tier 1 railroad retirement benefit) in U. Tax return 2011 deadline S. Tax return 2011 deadline source fixed or determinable annual or periodic income. Tax return 2011 deadline Social security benefits include monthly retirement, survivor, and disability benefits. Tax return 2011 deadline This income is exempt under some tax treaties. Tax return 2011 deadline See Table 1 in Publication 901, U. Tax return 2011 deadline S. Tax return 2011 deadline Tax Treaties, for a list of tax treaties that exempt U. Tax return 2011 deadline S. Tax return 2011 deadline social security benefits from U. Tax return 2011 deadline S. Tax return 2011 deadline tax. Tax return 2011 deadline Sales or Exchanges of Capital Assets These rules apply only to those capital gains and losses from sources in the United States that are not effectively connected with a trade or business in the United States. Tax return 2011 deadline They apply even if you are engaged in a trade or business in the United States. Tax return 2011 deadline These rules do not apply to the sale or exchange of a U. Tax return 2011 deadline S. Tax return 2011 deadline real property interest or to the sale of any property that is effectively connected with a trade or business in the United States. Tax return 2011 deadline See Real Property Gain or Loss , earlier, under Effectively Connected Income. Tax return 2011 deadline A capital asset is everything you own except: Inventory. Tax return 2011 deadline Business accounts or notes receivable. Tax return 2011 deadline Depreciable property used in a trade or business. Tax return 2011 deadline Real property used in a trade or business. Tax return 2011 deadline Supplies regularly used in a trade or business. Tax return 2011 deadline Certain copyrights, literary or musical or artistic compositions, letters or memoranda, or similar property. Tax return 2011 deadline Certain U. Tax return 2011 deadline S. Tax return 2011 deadline government publications. Tax return 2011 deadline Certain commodities derivative financial instruments held by a commodities derivatives dealer. Tax return 2011 deadline Hedging transactions. Tax return 2011 deadline A capital gain is a gain on the sale or exchange of a capital asset. Tax return 2011 deadline A capital loss is a loss on the sale or exchange of a capital asset. Tax return 2011 deadline If the sale is in foreign currency, for the purpose of determining gain, the cost and selling price of the property should be expressed in U. Tax return 2011 deadline S. Tax return 2011 deadline currency at the rate of exchange prevailing as of the date of the purchase and date of the sale, respectively. Tax return 2011 deadline You may want to read Publication 544. Tax return 2011 deadline However, use Publication 544 only to determine what is a sale or exchange of a capital asset, or what is treated as such. Tax return 2011 deadline Specific tax treatment that applies to U. Tax return 2011 deadline S. Tax return 2011 deadline citizens or residents generally does not apply to you. Tax return 2011 deadline The following gains are subject to the 30% (or lower treaty) rate without regard to the 183-day rule, discussed later. Tax return 2011 deadline Gains on the disposal of timber, coal, or domestic iron ore with a retained economic interest. Tax return 2011 deadline Gains on contingent payments received from the sale or exchange of patents, copyrights, and similar property after October 4, 1966. Tax return 2011 deadline Gains on certain transfers of all substantial rights to, or an undivided interest in, patents if the transfers were made before October 5, 1966. Tax return 2011 deadline Gains on the sale or exchange of original issue discount obligations. Tax return 2011 deadline Gains in (1) are not subject to the 30% (or lower treaty) rate if you choose to treat the gains as effectively connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline See Income From Real Property , later. Tax return 2011 deadline 183-day rule. Tax return 2011 deadline   If you were in the United States for 183 days or more during the tax year, your net gain from sales or exchanges of capital assets is taxed at a 30% (or lower treaty) rate. Tax return 2011 deadline For purposes of the 30% (or lower treaty) rate, net gain is the excess of your capital gains from U. Tax return 2011 deadline S. Tax return 2011 deadline sources over your capital losses from U. Tax return 2011 deadline S. Tax return 2011 deadline sources. Tax return 2011 deadline This rule applies even if any of the transactions occurred while you were not in the United States. Tax return 2011 deadline   To determine your net gain, consider the amount of your gains and losses that would be recognized and taken into account only if, and to the extent that, they would be recognized and taken into account if you were in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business during the year and the gains and losses were effectively connected with that trade or business during the tax year. Tax return 2011 deadline   In arriving at your net gain, do not take the following into consideration. Tax return 2011 deadline The four types of gains listed earlier. Tax return 2011 deadline The deduction for a capital loss carryover. Tax return 2011 deadline Capital losses in excess of capital gains. Tax return 2011 deadline Exclusion for gain from the sale or exchange of qualified small business stock (section 1202 exclusion). Tax return 2011 deadline Losses from the sale or exchange of property held for personal use. Tax return 2011 deadline However, losses resulting from casualties or thefts may be deductible on Schedule A (Form 1040NR). Tax return 2011 deadline See Itemized Deductions in chapter 5. Tax return 2011 deadline   If you are not engaged in a trade or business in the United States and have not established a tax year for a prior period, your tax year will be the calendar year for purposes of the 183-day rule. Tax return 2011 deadline Also, you must file your tax return on a calendar-year basis. Tax return 2011 deadline   If you were in the United States for less than 183 days during the tax year, capital gains (other than gains listed earlier) are tax exempt unless they are effectively connected with a trade or business in the United States during your tax year. Tax return 2011 deadline Reporting. Tax return 2011 deadline   Report your gains and losses from the sales or exchanges of capital assets that are not effectively connected with a trade or business in the United States on page 4 of Form 1040NR. Tax return 2011 deadline Report gains and losses from sales or exchanges of capital assets (including real property) that are effectively connected with a trade or business in the United States on a separate Schedule D (Form 1040), Form 4797, or both. Tax return 2011 deadline Attach them to Form 1040NR. Tax return 2011 deadline Income From Real Property If you have income from real property located in the United States that you own or have an interest in and hold for the production of income, you can choose to treat all income from that property as income effectively connected with a trade or business in the United States. Tax return 2011 deadline The choice applies to all income from real property located in the United States and held for the production of income and to all income from any interest in such property. Tax return 2011 deadline This includes income from rents, royalties from mines, oil or gas wells, or other natural resources. Tax return 2011 deadline It also includes gains from the sale or exchange of timber, coal, or domestic iron ore with a retained economic interest. Tax return 2011 deadline You can make this choice only for real property income that is not otherwise effectively connected with your U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline If you make the choice, you can claim deductions attributable to the real property income and only your net income from real property is taxed. Tax return 2011 deadline This choice does not treat a nonresident alien, who is not otherwise engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business, as being engaged in a trade or business in the United States during the year. Tax return 2011 deadline Example. Tax return 2011 deadline You are a nonresident alien and are not engaged in a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline You own a single-family house in the United States that you rent out. Tax return 2011 deadline Your rental income for the year is $10,000. Tax return 2011 deadline This is your only U. Tax return 2011 deadline S. Tax return 2011 deadline source income. Tax return 2011 deadline As discussed earlier under The 30% Tax, the rental income is subject to a tax at a 30% (or lower treaty) rate. Tax return 2011 deadline You received a Form 1042-S showing that your tenants properly withheld this tax from the rental income. Tax return 2011 deadline You do not have to file a U. Tax return 2011 deadline S. Tax return 2011 deadline tax return (Form 1040NR) because your U. Tax return 2011 deadline S. Tax return 2011 deadline tax liability is satisfied by the withholding of tax. Tax return 2011 deadline If you make the choice discussed earlier, you can offset the $10,000 income by certain rental expenses. Tax return 2011 deadline (See Publication 527, Residential Rental Property, for information on rental expenses. Tax return 2011 deadline ) Any resulting net income is taxed at graduated rates. Tax return 2011 deadline If you make this choice, report the rental income and expenses on Schedule E (Form 1040) and attach the schedule to Form 1040NR. Tax return 2011 deadline For the first year you make the choice, also attach the statement discussed next. Tax return 2011 deadline Making the choice. Tax return 2011 deadline   Make the initial choice by attaching a statement to your return, or amended return, for the year of the choice. Tax return 2011 deadline Include the following in your statement. Tax return 2011 deadline That you are making the choice. Tax return 2011 deadline Whether the choice is under Internal Revenue Code section 871(d) (explained earlier) or a tax treaty. Tax return 2011 deadline A complete list of all your real property, or any interest in real property, located in the United States. Tax return 2011 deadline Give the legal identification of U. Tax return 2011 deadline S. Tax return 2011 deadline timber, coal, or iron ore in which you have an interest. Tax return 2011 deadline The extent of your ownership in the property. Tax return 2011 deadline The location of the property. Tax return 2011 deadline A description of any major improvements to the property. Tax return 2011 deadline The dates you owned the property. Tax return 2011 deadline Your income from the property. Tax return 2011 deadline Details of any previous choices and revocations of the real property income choice. Tax return 2011 deadline   This choice stays in effect for all later tax years unless you revoke it. Tax return 2011 deadline Revoking the choice. Tax return 2011 deadline   You can revoke the choice without IRS approval by filing Form 1040X, Amended U. Tax return 2011 deadline S. Tax return 2011 deadline Individual Income Tax Return, for the year you made the choice and for later tax years. Tax return 2011 deadline You must file Form 1040X within 3 years from the date your return was filed or 2 years from the time the tax was paid, whichever is later. Tax return 2011 deadline If this time period has expired for the year of choice, you cannot revoke the choice for that year. Tax return 2011 deadline However, you may revoke the choice for later tax years only if you have IRS approval. Tax return 2011 deadline For information on how to get IRS approval, see Regulation section 1. Tax return 2011 deadline 871-10(d)(2). Tax return 2011 deadline Transportation Tax A 4% tax rate applies to transportation income that is not effectively connected because it does not meet the two conditions listed earlier under Transportation Income . Tax return 2011 deadline If you receive transportation income subject to the 4% tax, you should figure the tax and show it on line 57 of Form 1040NR. Tax return 2011 deadline Attach a statement to your return that includes the following information (if applicable). Tax return 2011 deadline Your name, taxpayer identification number, and tax year. Tax return 2011 deadline A description of the types of services performed (whether on or off board). Tax return 2011 deadline Names of vessels or registration numbers of aircraft on which you performed the services. Tax return 2011 deadline Amount of U. Tax return 2011 deadline S. Tax return 2011 deadline source transportation income derived from each type of service for each vessel or aircraft for the calendar year. Tax return 2011 deadline Total amount of U. Tax return 2011 deadline S. Tax return 2011 deadline source transportation income derived from all types of services for the calendar year. Tax return 2011 deadline This 4% tax applies to your U. Tax return 2011 deadline S. Tax return 2011 deadline source gross transportation income. Tax return 2011 deadline This only includes transportation income that is treated as derived from sources in the United States if the transportation begins or ends in the United States. Tax return 2011 deadline For transportation income from personal services, the transportation must be between the United States and a U. Tax return 2011 deadline S. Tax return 2011 deadline possession. Tax return 2011 deadline For personal services of a nonresident alien, this only applies to income derived from, or in connection with, an aircraft. Tax return 2011 deadline Interrupted Period of Residence You are subject to tax under a special rule if you interrupt your period of U. Tax return 2011 deadline S. Tax return 2011 deadline residence with a period of nonresidence. Tax return 2011 deadline The special rule applies if you meet all of the following conditions. Tax return 2011 deadline You were a U. Tax return 2011 deadline S. Tax return 2011 deadline resident for a period that includes at least 3 consecutive calendar years. Tax return 2011 deadline You were a U. Tax return 2011 deadline S. Tax return 2011 deadline resident for at least 183 days in each of those years. Tax return 2011 deadline You ceased to be treated as a U. Tax return 2011 deadline S. Tax return 2011 deadline resident. Tax return 2011 deadline You then again became a U. Tax return 2011 deadline S. Tax return 2011 deadline resident before the end of the third calendar year after the end of the period described in (1) above. Tax return 2011 deadline Under this special rule, you are subject to tax on your U. Tax return 2011 deadline S. Tax return 2011 deadline source gross income and gains on a net basis at the graduated rates applicable to individuals (with allowable deductions) for the period you were a nonresident alien, unless you would be subject to a higher tax under the 30% tax (discussed earlier) on income not connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline For information on how to figure the special tax, see How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) under Expatriation Tax , below. Tax return 2011 deadline Example. Tax return 2011 deadline John Willow, a citizen of New Zealand, entered the United States on April 1, 2008, as a lawful permanent resident. Tax return 2011 deadline On August 1, 2010, John ceased to be a lawful permanent resident and returned to New Zealand. Tax return 2011 deadline During his period of residence, he was present in the United States for at least 183 days in each of three consecutive years (2008, 2009, and 2010). Tax return 2011 deadline He returned to the United States on October 5, 2013, as a lawful permanent resident. Tax return 2011 deadline He became a resident before the close of the third calendar year (2013) beginning after the end of his first period of residence (August 1, 2010). Tax return 2011 deadline Therefore, he is subject to tax under the special rule for the period of nonresidence (August 2, 2010, through October 4, 2013) if it is more than the tax that would normally apply to him as a nonresident alien. Tax return 2011 deadline Reporting requirements. Tax return 2011 deadline   If you are subject to this tax for any year in the period you were a nonresident alien, you must file Form 1040NR for that year. Tax return 2011 deadline The return is due by the due date (including extensions) for filing your U. Tax return 2011 deadline S. Tax return 2011 deadline income tax return for the year that you again become a U. Tax return 2011 deadline S. Tax return 2011 deadline resident. Tax return 2011 deadline If you already filed returns for that period, you must file amended returns. Tax return 2011 deadline You must attach a statement to your return that identifies the source of all of your U. Tax return 2011 deadline S. Tax return 2011 deadline and foreign gross income and the items of income subject to this special rule. Tax return 2011 deadline Expatriation Tax The expatriation tax provisions apply to U. Tax return 2011 deadline S. Tax return 2011 deadline citizens who have renounced their citizenship and long-term residents who have ended their residency. Tax return 2011 deadline The rules that apply are based on the dates of expatriation, which are described in the following sections. Tax return 2011 deadline Expatriation Before June 4, 2004. Tax return 2011 deadline Expatriation After June 3, 2004, and Before June 17, 2008. Tax return 2011 deadline Expatriation After June 16, 2008. Tax return 2011 deadline Long-term resident defined. Tax return 2011 deadline   You are a long-term resident if you were a lawful permanent resident of the United States in at least 8 of the last 15 tax years ending with the year your residency ends. Tax return 2011 deadline In determining if you meet the 8-year requirement, do not count any year that you are treated as a resident of a foreign country under a tax treaty and do not waive treaty benefits. Tax return 2011 deadline Expatriation Before June 4, 2004 If you expatriated before June 4, 2004, the expatriation rules apply if one of the principal purposes of the action is the avoidance of U. Tax return 2011 deadline S. Tax return 2011 deadline taxes. Tax return 2011 deadline Unless you received a ruling from the IRS that you did not expatriate to avoid U. Tax return 2011 deadline S. Tax return 2011 deadline taxes, you are presumed to have tax avoidance as a principal purpose if: Your average annual net income tax for the last 5 tax years ending before the date of your action to relinquish your citizenship or terminate your residency was more than $100,000, or Your net worth on the date of your action was $500,000 or more. Tax return 2011 deadline The amounts above are adjusted for inflation if your expatriation action is after 1997 (see Table 4-1). Tax return 2011 deadline Table 4-1. Tax return 2011 deadline Inflation-Adjusted Amounts for Expatriation Actions Before June 4, 2004 IF you expatriated during . Tax return 2011 deadline . Tax return 2011 deadline . Tax return 2011 deadline   THEN the rules outlined on this page apply if . Tax return 2011 deadline . Tax return 2011 deadline . Tax return 2011 deadline     Your 5-year average annual net income tax was more than . Tax return 2011 deadline . Tax return 2011 deadline . Tax return 2011 deadline OR Your net worth equaled or exceeded . Tax return 2011 deadline . Tax return 2011 deadline . Tax return 2011 deadline 1999   110,000   552,000 2000   112,000   562,000 2001   116,000   580,000 2002   120,000   599,000 2003   122,000   608,000 2004 (before June 4)*   124,000   622,000 *If you expatriated after June 3, 2004, see Expatriation After June 3, 2004, and Before June 17, 2008 or Expatriation After June 16, 2008. Tax return 2011 deadline Reporting requirements. Tax return 2011 deadline   If you lost your U. Tax return 2011 deadline S. Tax return 2011 deadline citizenship, you should have filed Form 8854 with a consular office or a federal court at the time of loss of citizenship. Tax return 2011 deadline If you ended your long-term residency, you should have filed Form 8854 with the Internal Revenue Service when you filed your dual-status tax return for the year your residency ended. Tax return 2011 deadline   Your U. Tax return 2011 deadline S. Tax return 2011 deadline residency is considered to have ended when you ceased to be a lawful permanent resident or you began to be treated as a resident of another country under a tax treaty and do not waive treaty benefits. Tax return 2011 deadline Penalties. Tax return 2011 deadline   If you failed to file Form 8854, you may have to pay a penalty equal to the greater of 5% of the expatriation tax or $1,000. Tax return 2011 deadline The penalty will be assessed for each year of the 10-year period beginning on the date of expatriation during which your failure to file continues. Tax return 2011 deadline The penalty will not be imposed if you can show that the failure is due to reasonable cause and not willful neglect. Tax return 2011 deadline Expatriation tax. Tax return 2011 deadline   The expatriation tax applies to the 10-year period following the date of expatriation or termination of residency. Tax return 2011 deadline It is figured in the same way as for those expatriating after June 3, 2004, and before June 17, 2008. Tax return 2011 deadline See How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) in the next section. Tax return 2011 deadline Expatriation After June 3, 2004, and Before June 17, 2008 If you expatriated after June 3, 2004, and before June 17, 2008, the expatriation rules apply to you if any of the following statements apply. Tax return 2011 deadline Your average annual net income tax for the 5 tax years ending before the date of expatriation or termination of residency is more than: $124,000 if you expatriated or terminated residency in 2004. Tax return 2011 deadline $127,000 if you expatriated or terminated residency in 2005. Tax return 2011 deadline $131,000 if you expatriated or terminated residency in 2006. Tax return 2011 deadline $136,000 if you expatriated or terminated residency in 2007. Tax return 2011 deadline $139,000 if you expatriated or terminated residency in 2008. Tax return 2011 deadline Your net worth is $2 million or more on the date of your expatriation or termination of residency. Tax return 2011 deadline You fail to certify on Form 8854 that you have complied with all U. Tax return 2011 deadline S. Tax return 2011 deadline federal tax obligations for the 5 tax years preceding the date of your expatriation or termination of residency. Tax return 2011 deadline Exception for dual-citizens and certain minors. Tax return 2011 deadline   Certain dual-citizens and certain minors (defined next) are not subject to the expatriation tax even if they meet (1) or (2) earlier. Tax return 2011 deadline However, they still must provide the certification required in (3). Tax return 2011 deadline Certain dual-citizens. Tax return 2011 deadline   You may qualify for the exception described above if all of the following apply. Tax return 2011 deadline You became at birth a U. Tax return 2011 deadline S. Tax return 2011 deadline citizen and a citizen of another country and you continue to be a citizen of that other country. Tax return 2011 deadline You were never a resident alien of the United States (as defined in chapter 1). Tax return 2011 deadline You never held a U. Tax return 2011 deadline S. Tax return 2011 deadline passport. Tax return 2011 deadline You were present in the United States for no more than 30 days during any calendar year that is 1 of the 10 calendar years preceding your loss of U. Tax return 2011 deadline S. Tax return 2011 deadline citizenship. Tax return 2011 deadline Certain minors. Tax return 2011 deadline   You may qualify for the exception described above if you meet all of the following requirements. Tax return 2011 deadline You became a U. Tax return 2011 deadline S. Tax return 2011 deadline citizen at birth. Tax return 2011 deadline Neither of your parents was a U. Tax return 2011 deadline S. Tax return 2011 deadline citizen at the time of your birth. Tax return 2011 deadline You expatriated before you were 18½. Tax return 2011 deadline You were present in the United States for not more than 30 days during any calendar year that is 1 of the 10 calendar years preceding your expatriation. Tax return 2011 deadline Tax consequences of presence in the United States. Tax return 2011 deadline   The following rules apply if you do not meet the exception above for dual-citizens and certain minors and the expatriation rules would otherwise apply to you. Tax return 2011 deadline   The expatriation tax does not apply to any tax year during the 10-year period if you are physically present in the United States for more than 30 days during the calendar year ending in that year. Tax return 2011 deadline Instead, you are treated as a U. Tax return 2011 deadline S. Tax return 2011 deadline citizen or resident and taxed on your worldwide income for that tax year. Tax return 2011 deadline You must file Form 1040, 1040A, or 1040EZ and figure your tax as prescribed in the instructions for those forms. Tax return 2011 deadline   When counting the number of days of presence during a calendar year, count any day you were physically present in the United States at any time during the day. Tax return 2011 deadline However, do not count any days (up to a limit of 30 days) on which you performed personal services in the United States for an employer who is not related to you if either of the following apply. Tax return 2011 deadline You have ties with other countries. Tax return 2011 deadline You have ties with other countries if: You became (within a reasonable period after your expatriation or termination of residency) a citizen or resident of the country in which you, your spouse, or either of your parents were born, and You became fully liable for income tax in that country. Tax return 2011 deadline You were physically present in the United States for 30 days or less during each year in the 10-year period ending on the date of expatriation or termination of residency. Tax return 2011 deadline Do not count any day you were an exempt individual or were unable to leave the United States because of a medical condition that arose while you were in the United States. Tax return 2011 deadline See Exempt individual and Medical condition in chapter 1 under Substantial Presence Test, but disregard the information about Form 8843. Tax return 2011 deadline Related employer. Tax return 2011 deadline   If your employer in the United States is any of the following, then your employer is related to you. Tax return 2011 deadline You must count any days you performed services in the United States for that employer as days of presence in the United States. Tax return 2011 deadline Members of your family. Tax return 2011 deadline This includes only your brothers and sisters, half-brothers and half-sisters, spouse, ancestors (parents, grandparents, etc. Tax return 2011 deadline ), and lineal descendants (children, grandchildren, etc. Tax return 2011 deadline ). Tax return 2011 deadline A partnership in which you directly or indirectly own more than 50% of the capital interest or the profits interest. Tax return 2011 deadline A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock. Tax return 2011 deadline (See Publication 550, chapter 4, Constructive ownership of stock, for how to determine whether you directly or indirectly own outstanding stock. Tax return 2011 deadline ) A tax-exempt charitable or educational organization that is directly or indirectly controlled, in any manner or by any method, by you or by a member of your family, whether or not this control is legally enforceable. Tax return 2011 deadline Date of tax expatriation. Tax return 2011 deadline   For purposes of U. Tax return 2011 deadline S. Tax return 2011 deadline tax rules, the date of your expatriation or termination of residency is the later of the dates on which you perform the following actions. Tax return 2011 deadline You notify either the Department of State or the Department of Homeland Security (whichever is appropriate) of your expatriating act or termination of residency. Tax return 2011 deadline You file Form 8854 in accordance with the form instructions. Tax return 2011 deadline Annual return. Tax return 2011 deadline   If the expatriation tax applies to you, you must file Form 8854 each year during the 10-year period following the date of expatriation. Tax return 2011 deadline You must file this form even if you owe no U. Tax return 2011 deadline S. Tax return 2011 deadline tax. Tax return 2011 deadline Penalty. Tax return 2011 deadline   If you fail to file Form 8854 for any tax year, fail to include all information required to be shown on the form, or include incorrect information, you may have to pay a penalty of $10,000. Tax return 2011 deadline You will not have to pay a penalty if you show that the failure is due to reasonable cause and not to willful neglect. Tax return 2011 deadline How To Figure the Expatriation Tax (If You Expatriated Before June 17, 2008) If the expatriation tax applies to you, you are generally subject to tax on your U. Tax return 2011 deadline S. Tax return 2011 deadline source gross income and gains on a net basis at the graduated rates applicable to individuals (with allowable deductions) unless you would be subject to a higher tax under the 30% tax (discussed earlier) on income not connected with a U. Tax return 2011 deadline S. Tax return 2011 deadline trade or business. Tax return 2011 deadline For this purpose, U. Tax return 2011 deadline S. Tax return 2011 deadline source gross income (defined in chapter 2) includes gains from the sale or exchange of: Property (other than stock or debt obligations) located in the United States, Stock issued by a U. Tax return 2011 deadline S. Tax return 2011 deadline domestic corporation, and Debt obligations of U. Tax return 2011 deadline S. Tax return 2011 deadline persons or of the United States, a state or political subdivision thereof, or the District of Columbia. Tax return 2011 deadline U. Tax return 2011 deadline S. Tax return 2011 deadline source income also includes any income or gain derived from stock in certain controlled foreign corporations if you owned, or were considered to own, at any time during the 2-year period ending on the date of expatriation, more than 50% of: The total combined voting power of all classes of that corporation's stock, or The total value of the stock. Tax return 2011 deadline The income or gain is considered U. Tax return 2011 deadline S. Tax return 2011 deadline source income only to the extent of your share of earnings and profits earned or accumulated before the date of expatriation and during the periods you met the ownership requirements discussed above. Tax return 2011 deadline Any exchange of property is treated as a sale of the property at its fair market value on the date of the exchange and any gain is treated as U. Tax return 2011 deadline S. Tax return 2011 deadline source gross income in the tax year of the exchange unless you enter into a gain recognition agreement under Notice 97-19. Tax return 2011 deadline Other information. Tax return 2011 deadline   For more information on the expatriation tax provisions, including exceptions to the tax and special U. Tax return 2011 deadline S. Tax return 2011 deadline source rules, see section 877 of the Internal Revenue Code. Tax return 2011 deadline Expatriation Tax Return If you expatriated or terminated your U. Tax return 2011 deadline S. Tax return 2011 deadline residency, or you are subject to the expatriation tax, you must file Form 8854, Initial and Annual Expatriation Statement. Tax return 2011 deadline Attach it to Form 1040NR if you are required to file that form. Tax return 2011 deadline If you are present in the United States following your expatriation and are subject to tax as a U. Tax return 2011 deadline S. Tax return 2011 deadline citizen or resident, file Form 8854 with Form 1040. Tax return 2011 deadline Expatriation After June 16, 2008 If you expatriated after June 16, 2008, the expatriation rules apply to you if you meet any of the following conditions. Tax return 2011 deadline Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than: $139,000 if you expatriated or terminated residency in 2008. Tax return 2011 deadline $145,000 if you expatriated or terminated residency in 2009 or 2010. Tax return 2011 deadline $147,000 if you expatriated or terminated residency in 2011. Tax return 2011 deadline $151,000 if you expatriated or terminated residency in 2012. Tax return 2011 deadline $155,000 if you expatriated or terminated residency in 2013. Tax return 2011 deadline Your net worth is $2 million or more on the date of your expatriation or termination of residency. Tax return 2011 deadline You fail to certify on Form 8854 that you have complied with all U. Tax return 2011 deadline S. Tax return 2011 deadline federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency. Tax return 2011 deadline Exception for dual-citizens and certain minors. Tax return 2011 deadline   Certain dual-citizens and certain minors (defined next) are not subject to the expatriation tax even if they meet (1) or (2) above. Tax return 2011 deadline However, they still must provide the certification required in (3) above. Tax return 2011 deadline Certain dual-citizens. Tax return 2011 deadline   You may qualify for the exception described above if both of the following apply. Tax return 2011 deadline You became at birth a U. Tax return 2011 deadline S. Tax return 2011 deadline citizen and a citizen of another country and you continue to be a citizen of, and are taxed as a resident of, that other country. Tax return 2011 deadline You have been a resident of the United States for not more than 10 years during the 15-year tax period ending with the tax year during which the expatriation occurs. Tax return 2011 deadline For the purpose of determining U. Tax return 2011 deadline S. Tax return 2011 deadline residency, use the substantial presence test described in chapter 1. Tax return 2011 deadline Certain minors. Tax return 2011 deadline   You may qualify for the exception described earlier if you meet both of the following requirements. Tax return 2011 deadline You expatriated before you were 18½. Tax return 2011 deadline You have been a resident of the United States for not more than 10 tax years before the expatriation occurs. Tax return 2011 deadline For the purpose of determining U. Tax return 2011 deadline S. Tax return 2011 deadline residency, use the substantial presence test described in chapter 1. Tax return 2011 deadline Expatriation date. Tax return 2011 deadline   Your expatriation date is the date you relinquish U. Tax return 2011 deadline S. Tax return 2011 deadline citizenship (in the case of a former citizen) or terminate your long-term residency (in the case of a former U. Tax return 2011 deadline S. Tax return 2011 deadline resident). Tax return 2011 deadline Former U. Tax return 2011 deadline S. Tax return 2011 deadline citizen. Tax return 2011 deadline   You are considered to have relinquished your U. Tax return 2011 deadline S. Tax return 2011 deadline citizenship on the earliest of the following dates. Tax return 2011 deadline The date you renounced U. Tax return 2011 deadline S. Tax return 2011 deadline citizenship before a diplomatic or consular officer of the United States (provided that the voluntary renouncement was later confirmed by the issuance of a certificate of loss of nationality). Tax return 2011 deadline The date you furnished to the State Department a signed statement of voluntary relinquishment of U. Tax return 2011 deadline S. Tax return 2011 deadline nationality confirming the performance of an expatriating act (provided that the voluntary relinquishment was later confirmed by the issuance of a certificate of loss of nationality). Tax return 2011 deadline The date the State Department issued a certificate of loss of nationality. Tax return 2011 deadline The date that a U. Tax return 2011 deadline S. Tax return 2011 deadline court canceled your certificate of naturalization. Tax return 2011 deadline Former long-term resident. Tax return 2011 deadline   You are considered to have terminated your long-term residency on the earliest of the following dates. Tax return 2011 deadline The date you voluntarily relinquished your lawful permanent resident status by filing Department of Homeland Security Form I-407 with a U. Tax return 2011 deadline S. Tax return 2011 deadline consular or immigration officer, and the Department of Homeland Security determined that you have, in fact, abandoned your lawful permanent resident status. Tax return 2011 deadline The date you became subject to a final administrative order for your removal from the United States under the Immigration and Nationality Act and you actually left the United States as a result of that order. Tax return 2011 deadline If you were a dual resident of the United States and a country with which the United States has an income tax treaty, the date you began to be treated as a resident of that country and you determined that, for purposes of the treaty, you are a resident of the treaty country and notify the IRS of that treatment on Forms 8833 and 8854. Tax return 2011 deadline See Effect of Tax Treaties in chapter 1 for more information about dual residents. Tax return 2011 deadline How To Figure the Expatriation Tax (If You Expatriate After June 16, 2008) In the year you expatriate, you are subject to income tax on the net unrealized gain (or loss) in your property as if the property had been sold for its fair market value on the day before your expatriation date (“mark-to-market tax”). Tax return 2011 deadline This applies to most types of property interests you held on the date of relinquishment of citizenship or termination of residency. Tax return 2011 deadline But see Exceptions , later. Tax return 2011 deadline Gains arising from deemed sales must be taken into account for the tax year of the deemed sale without regard to other U. Tax return 2011 deadline S. Tax return 2011 deadline internal revenue laws. Tax return 2011 deadline Losses from deemed sales must be taken into account to the extent otherwise provided under U. Tax return 2011 deadline S. Tax return 2011 deadline internal revenue laws. Tax return 2011 deadline However, Internal Revenue Code section 1091 (relating to the disallowance of losses on wash sales of stock and securities) does not apply. Tax return 2011 deadline The net gain that you otherwise must include in your income is reduced (but not below zero) by: $600,000 if you expatriated or terminated residency before January 1, 2009. Tax return 2011 deadline $626,000 if you expatriated or terminated residency in 2009. Tax return 2011 deadline $627,000 if you expatriated or terminated residency in 2010. Tax return 2011 deadline $636,000 if you expatriated or terminated residency in 2011. Tax return 2011 deadline $651,000 if you expatriated or terminated residency in 2012. Tax return 2011 deadline $668,000 if you expatriated or terminated residency in 2013. Tax return 2011 deadline Exceptions. Tax return 2011 deadline   The mark-to-market tax does not apply to the following. Tax return 2011 deadline Eligible deferred compensation items. Tax return 2011 deadline Ineligible deferred compensation items. Tax return 2011 deadline Interests in nongrantor trusts. Tax return 2011 deadline Specified tax deferred accounts. Tax return 2011 deadline Instead, items (1) and (3) may be subject to withholding at source. Tax return 2011 deadline In the case of item (2), you are treated as receiving the present value of your accrued benefit as of the day before the expatriation date. Tax return 2011 deadline In the case of item (4), you are treated as receiving a distribution of your entire interest in the account on the day before your expatriation date. Tax return 2011 deadline See paragraphs (d), (e), and (f) of section 877A for more information. Tax return 2011 deadline Expatriation Tax Return If you expatriated or terminated your U. Tax return 2011 deadline S. Tax return 2011 deadline residency, or you are subject to the expatriation rules (as discussed earlier in the first paragraph under Expatriation After June 16, 2008), you must file Form 8854. Tax return 2011 deadline Attach it to Form 1040 or Form 1040NR if you are required to file either of those forms. Tax return 2011 deadline Deferral of payment of mark-to-market tax. Tax return 2011 deadline   You can make an irrevocable election to defer payment of the mark-to-market tax imposed on the deemed sale of property. Tax return 2011 deadline If you make this election, the following rules apply. Tax return 2011 deadline You can make the election on a property-by-property basis. Tax return 2011 deadline The deferred tax attributable to a particular property is due on the return for the tax year in which you dispose of the property. Tax return 2011 deadline Interest is charged for the period the tax is deferred. Tax return 2011 deadline The due date for the payment of the deferred tax cannot be extended beyond the earlier of the following dates. Tax return 2011 deadline The due date of the return required for the year of death. Tax return 2011 deadline The time that the security provided for the property fails to be adequate. Tax return 2011 deadline See item (6) below. Tax return 2011 deadline You make the election on Form 8854. Tax return 2011 deadline You must provide adequate security (such as a bond). Tax return 2011 deadline You must make an irrevocable waiver of any right under any treaty of the United States which would preclude assessment or collection of the mark-to-market tax. Tax return 2011 deadline   For more information about the deferral of payment, see the Instructions for Form 8854. Tax return 2011 deadline Prev  Up  Next   Home   More Online Publications