File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

When Can I File My 2011 Taxes

Irs 1040ezHow Do I Complete A 1040x FormsH&r Block Free FileOnline Tax Forms 1040ez2011 Irs Form 1040aOnline State Tax Filing1040 Form 2011Tax Return For Students 2011Irs Amended ReturnsFiling Free State Taxes OnlineAmend My 2012 Tax ReturnFile Income Tax Extension FreeTurbo Tax 2011 DownloadIrs Form 1040nr 2012Free Amended Tax ReturnTurbotax 1040x 20121040ez Fill InH And R Block Free TaxH&r Block Free Online E File1040esH&r Block Free Tax PreperationState Income Tax Form 500ez1040x 2012 Tax Form2012 1040a Tax FormVita Tax ServicesH And R Block Online Filing1040ez Tax Form 2014Amend 2012 Tax ReturnUs Irs E File FreeTaxact 2008 Free EfileH&r Block 1040ezHrblock FreereturnIrs Form 1040a 20122010 Ez Tax Form2013 Tax Form 1040ezE File Your State Taxes For FreeCan I Efile An Amended Tax ReturnFree State Income Tax E FileTax Form 1040x Free DownloadIncome Tax Amendment

When Can I File My 2011 Taxes

When can i file my 2011 taxes Publication 556 - Main Content Table of Contents Examination of ReturnsIf Your Return Is Examined Interest Netting Abatement of Interest Due to Error or Delay by the IRS Abatement of Interest for Individuals Affected by Presidentially Declared Disasters or Military or Terrorist Actions Offer in Compromise Appeal RightsAppeal Within the IRS Appeals to the Courts Refund or Credit of Overpayments Before Final Determination Claims for RefundTime for Filing a Claim for Refund Limit on Amount of Refund Processing Claims for Refund Reduced Refund How To Get Tax Help Examination of Returns Your return may be examined for a variety of reasons, and the examination may take place in any one of several ways. When can i file my 2011 taxes After the examination, if any changes to your tax are proposed, you can either agree with those changes and pay any additional tax you may owe, or you can disagree with the changes and appeal the decision. When can i file my 2011 taxes Examination selection criteria. When can i file my 2011 taxes   Your return may be selected for examination on the basis of computer scoring. When can i file my 2011 taxes A computer program called the Discriminant Inventory Function System (DIF) assigns a numeric score to each individual and some corporate tax returns after they have been processed. When can i file my 2011 taxes If your return is selected because of a high score under the DIF system, the potential is high that an examination of your return will result in a change to your income tax liability. When can i file my 2011 taxes   Your return may also be selected for examination on the basis of information received from third-party documentation, such as Forms 1099 and W-2, that does not match the information reported on your return. When can i file my 2011 taxes Or, your return may be selected to address both the questionable treatment of an item and to study the behavior of similar taxpayers (a market segment) in handling a tax issue. When can i file my 2011 taxes   In addition, your return may be selected as a result of information received from other sources on potential noncompliance with the tax laws or inaccurate filing. When can i file my 2011 taxes This information can come from a number of sources, including newspapers, public records, and individuals. When can i file my 2011 taxes The information is evaluated for reliability and accuracy before it is used as the basis of an examination or investigation. When can i file my 2011 taxes Notice of IRS contact of third parties. When can i file my 2011 taxes    The IRS must give you reasonable notice before contacting other persons about your tax matters. When can i file my 2011 taxes You must be given reasonable notice in advance that, in examining or collecting your tax liability, the IRS may contact third parties such as your neighbors, banks, employers, or employees. When can i file my 2011 taxes The IRS must also give you notice of specific contacts by providing you with a record of persons contacted on both a periodic basis and upon your request. When can i file my 2011 taxes    This provision does not apply: To any pending criminal investigation, When providing notice would jeopardize collection of any tax liability, Where providing notice may result in reprisal against any person, or When you authorized the contact. When can i file my 2011 taxes Taxpayer Advocate Service. When can i file my 2011 taxes   The Taxpayer Advocate Service is an independent organization within the IRS whose goal is to help taxpayers resolve problems with the IRS. When can i file my 2011 taxes If you have an ongoing issue with the IRS that has not been resolved through normal processes, or your problems with the IRS are causing financial difficulty, contact the Taxpayer Advocate Service. When can i file my 2011 taxes    Before contacting the Taxpayer Advocate Service, you should first discuss any problem with a supervisor. When can i file my 2011 taxes Your local Taxpayer Advocate will assist you if you are unable to resolve the problem with the supervisor. When can i file my 2011 taxes   For more information, see Publication 1546. When can i file my 2011 taxes See How To Get Tax Help , near the end of this publication, for more information about contacting the Taxpayer Advocate Service. When can i file my 2011 taxes Comments from small business. When can i file my 2011 taxes    The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards have been established to receive comments from small business about federal agency enforcement actions. When can i file my 2011 taxes The Ombudsman will annually evaluate the enforcement activities of each agency and rate their responsiveness to small business. When can i file my 2011 taxes If you wish to comment on the enforcement actions of the IRS, you can take any of the following steps. When can i file my 2011 taxes Fax your comments to 1-202-481-5719. When can i file my 2011 taxes Write to the following address: Office of the National Ombudsman U. When can i file my 2011 taxes S. When can i file my 2011 taxes Small Business Administration 409 3rd Street, SW Washington, DC 20416 Call 1-888-734-3247. When can i file my 2011 taxes Send an email to ombudsman@sba. When can i file my 2011 taxes gov. When can i file my 2011 taxes File a comment or complaint online at www. When can i file my 2011 taxes sba. When can i file my 2011 taxes gov/ombudsman. When can i file my 2011 taxes If Your Return Is Examined Some examinations are handled entirely by mail. When can i file my 2011 taxes Examinations not handled by mail can take place in your home, your place of business, an Internal Revenue office, or the office of your authorized representative. When can i file my 2011 taxes If the time, place, or method is not convenient for you, the examiner will try to work out something more suitable. When can i file my 2011 taxes However, the IRS makes the final determination of when, where, and how the examination will take place. When can i file my 2011 taxes Throughout the examination, you can act on your own behalf or have someone represent you or accompany you. When can i file my 2011 taxes If you filed a joint return, either you or your spouse, or both, can meet with the IRS. When can i file my 2011 taxes The person representing you can be any federally authorized practitioner, including an attorney, a certified public accountant, an enrolled agent (a person enrolled to practice before the IRS), an enrolled actuary, or the person who prepared the return and signed it as the preparer. When can i file my 2011 taxes If you want someone to represent you in your absence, you must furnish that person with proper written authorization. When can i file my 2011 taxes You can use Form 2848 or any other properly written authorization. When can i file my 2011 taxes If you want to consult with an attorney, a certified public accountant, an enrolled agent, or any other person permitted to represent a taxpayer during an interview for examining a tax return or collecting tax, you should make arrangements with that person to be available for the interview. When can i file my 2011 taxes In most cases, the IRS must suspend the interview and reschedule it. When can i file my 2011 taxes The IRS cannot suspend the interview if you are there because of an administrative summons. When can i file my 2011 taxes Third party authorization. When can i file my 2011 taxes   If you checked the box in the signature area of your income tax return (Form 1040, Form 1040A, or Form 1040EZ) to allow the IRS to discuss your return with another person (a third party designee), this authorization does not replace Form 2848. When can i file my 2011 taxes The box you checked on your return only authorizes the other person to receive information about the processing of your return and the status of your refund during the period your return is being processed. When can i file my 2011 taxes For more information, see the instructions for your return. When can i file my 2011 taxes Confidentiality privilege. When can i file my 2011 taxes   Generally, the same confidentiality protection that you have with an attorney also applies to certain communications that you have with federally authorized practitioners. When can i file my 2011 taxes   Confidential communications are those that: Advise you on tax matters within the scope of the practitioner's authority to practice before the IRS, Would be confidential between an attorney and you, and Relate to noncriminal tax matters before the IRS, or Relate to noncriminal tax proceedings brought in federal court by or against the United States. When can i file my 2011 taxes   In the case of communications in connection with the promotion of a person's participation in a tax shelter, the confidentiality privilege does not apply to written communications between a federally authorized practitioner and that person, any director, officer, employee, agent, or representative of that person, or any other person holding a capital or profits interest in that person. When can i file my 2011 taxes   A tax shelter is any entity, plan, or arrangement, a significant purpose of which is the avoidance or evasion of income tax. When can i file my 2011 taxes Recordings. When can i file my 2011 taxes    You can make an audio recording of the examination interview. When can i file my 2011 taxes Your request to record the interview should be made in writing. When can i file my 2011 taxes You must notify the examiner 10 days in advance and bring your own recording equipment. When can i file my 2011 taxes The IRS also can record an interview. When can i file my 2011 taxes If the IRS initiates the recording, you must be notified 10 days in advance and you can get a copy of the recording at your expense. When can i file my 2011 taxes Transfers to another area. When can i file my 2011 taxes    Generally, your return is examined in the area where you live. When can i file my 2011 taxes But if your return can be examined more quickly and conveniently in another area, such as where your books and records are located, you can ask to have the case transferred to that area. When can i file my 2011 taxes Repeat examinations. When can i file my 2011 taxes    The IRS tries to avoid repeat examinations of the same items, but sometimes this happens. When can i file my 2011 taxes If your tax return was examined for the same items in either of the 2 previous years and no change was proposed to your tax liability, please contact the IRS as soon as possible to see if the examination should be discontinued. When can i file my 2011 taxes The Examination An examination usually begins when you are notified that your return has been selected. When can i file my 2011 taxes The IRS will tell you which records you will need. When can i file my 2011 taxes The examination can proceed more easily if you gather your records before any interview. When can i file my 2011 taxes Any proposed changes to your return will be explained to you or your authorized representative. When can i file my 2011 taxes It is important that you understand the reasons for any proposed changes. When can i file my 2011 taxes You should not hesitate to ask about anything that is unclear to you. When can i file my 2011 taxes The IRS must follow the tax laws set forth by Congress in the Internal Revenue Code. When can i file my 2011 taxes The IRS also follows Treasury Regulations, other rules, and procedures that were written to administer the tax laws and court decisions. When can i file my 2011 taxes However, the IRS can lose cases that involve taxpayers with the same issue and still apply its interpretation of the law to your situation. When can i file my 2011 taxes Most taxpayers agree to changes proposed by examiners, and the examinations are closed at this level. When can i file my 2011 taxes If you do not agree, you can appeal any proposed change by following the procedures provided to you by the IRS. When can i file my 2011 taxes A more complete discussion of appeal rights is found later under Appeal Rights . When can i file my 2011 taxes If You Agree If you agree with the proposed changes, you can sign an agreement form and pay any additional tax you may owe. When can i file my 2011 taxes You must pay interest on any additional tax. When can i file my 2011 taxes If you pay when you sign the agreement, the interest is generally figured from the due date of your return (excluding any extension of time to file) to the date of your payment. When can i file my 2011 taxes If you do not pay the additional tax when you sign the agreement, you will receive a bill that includes interest. When can i file my 2011 taxes If you pay the amount due within 10 business days of the billing date, you will not have to pay more interest or penalties. When can i file my 2011 taxes This period is extended to 21 calendar days if the amount due is less than $100,000. When can i file my 2011 taxes If you are due a refund, you will receive it sooner if you sign the agreement form. When can i file my 2011 taxes You will be paid interest on the refund. When can i file my 2011 taxes If the IRS accepts your tax return as filed, you will receive a letter in a few weeks stating that the examiner proposed no changes to your return. When can i file my 2011 taxes You should keep this letter with your tax records. When can i file my 2011 taxes If You Do Not Agree If you do not agree with the proposed changes, the examiner will explain your appeal rights. When can i file my 2011 taxes If your examination takes place in an IRS office, you can request an immediate meeting with the examiner's supervisor to explain your position. When can i file my 2011 taxes If an agreement is reached, your case will be closed. When can i file my 2011 taxes If you cannot reach an agreement with the supervisor at this meeting, or if the examination took place outside of an IRS office, the examiner will write up your case explaining your position and the IRS's position. When can i file my 2011 taxes The examiner will forward your case for processing. When can i file my 2011 taxes Fast track mediation. When can i file my 2011 taxes   The IRS offers fast track mediation services to help taxpayers resolve many disputes resulting from: Examinations (audits), Offers in compromise, Trust fund recovery penalties, and Other collection actions. When can i file my 2011 taxes   Most cases that are not docketed in any court qualify for fast track mediation. When can i file my 2011 taxes Mediation can take place at a conference you request with a supervisor, or later. When can i file my 2011 taxes The process involves an Appeals Officer who has been trained in mediation. When can i file my 2011 taxes You may represent yourself at the mediation session, or someone else can act as your representative. When can i file my 2011 taxes For more information, see Publication 3605. When can i file my 2011 taxes 30-day letter and 90-day letter. When can i file my 2011 taxes   Within a few weeks after your closing conference with the examiner and/or supervisor, you will receive a package with: A letter (known as a 30-day letter) notifying you of your right to appeal the proposed changes within 30 days, A copy of the examination report explaining the examiner's proposed changes, An agreement or waiver form, and A copy of Publication 5. When can i file my 2011 taxes You generally have 30 days from the date of the 30-day letter to tell the IRS whether you will accept or appeal the proposed changes. When can i file my 2011 taxes The letter will explain what steps you should take, depending on which action you choose. When can i file my 2011 taxes Be sure to follow the instructions carefully. When can i file my 2011 taxes Appeal Rights are explained later. When can i file my 2011 taxes 90-day letter. When can i file my 2011 taxes   If you do not respond to the 30-day letter, or if you later do not reach an agreement with an Appeals Officer, the IRS will send you a 90-day letter, which is also known as a notice of deficiency. When can i file my 2011 taxes You will have 90 days (150 days if it is addressed to you outside the United States) from the date of this notice to file a petition with the Tax Court. When can i file my 2011 taxes Filing a petition with the Tax Court is discussed later under Appeals to the Courts and Tax Court . When can i file my 2011 taxes The notice will show the 90th (or 150th) day by which you must file your petition with the Tax Court. When can i file my 2011 taxes Suspension of interest and penalties. When can i file my 2011 taxes   Generally, the IRS has 3 years from the date you filed your return (or the date the return was due, if later) to assess any additional tax. When can i file my 2011 taxes However, if you file your return timely (including extensions), interest and certain penalties will be suspended if the IRS does not mail a notice to you, stating your liability and the basis for that liability, within a 36-month period beginning on the later of: The date on which you filed your tax return, or The due date (without extensions) of your tax return. When can i file my 2011 taxes If the IRS mails a notice after the 36-month period, interest and certain penalties applicable to the suspension period will be suspended. When can i file my 2011 taxes   The suspension period begins the day after the close of the 36-month period and ends 21 days after the IRS mails a notice to you stating your liability and the basis for that liability. When can i file my 2011 taxes Also, the suspension period applies separately to each notice stating your liability and the basis for that liability received by you. When can i file my 2011 taxes    The suspension does not apply to a: Failure-to-pay penalty, Fraudulent tax return, Penalty, interest, addition to tax, or additional amount with respect to any tax liability shown on your return or with respect to any gross misstatement, Penalty, interest, addition to tax, or additional amount with respect to any reportable transaction that is not adequately disclosed or any listed transaction, or Criminal penalty. When can i file my 2011 taxes Seeking relief from improperly assessed interest. When can i file my 2011 taxes   You can seek relief if interest is assessed for periods during which interest should have been suspended because the IRS did not mail a notice to you in a timely manner. When can i file my 2011 taxes   If you believe that interest was assessed with respect to a period during which interest should have been suspended, submit Form 843, writing “Section 6404(g) Notification” at the top of the form, with the IRS Service Center where you filed your return. When can i file my 2011 taxes The IRS will review the Form 843 and notify you whether interest will be abated. When can i file my 2011 taxes If the IRS does not abate interest, you can pay the disputed interest assessment and file a claim for refund. When can i file my 2011 taxes If your claim is denied or not acted upon within 6 months from the date you filed it, you can file suit for a refund in your United States District Court or in the United States Court of Federal Claims. When can i file my 2011 taxes   If you believe that an IRS officer or employee has made an unreasonable error or delay in performing a ministerial or managerial act (discussed later under Abatement of Interest Due to Error or Delay by the IRS ), file Form 843 with the IRS Service Center where you filed the tax return. When can i file my 2011 taxes If the IRS denies your claim, the Tax Court may be able to review that determination. When can i file my 2011 taxes See Tax Court can review failure to abate interest later under Abatement of Interest Due to Error or Delay by the IRS . When can i file my 2011 taxes If you later agree. When can i file my 2011 taxes    If you agree with the examiner's changes after receiving the examination report or the 30-day letter, sign and return either the examination report or the waiver form. When can i file my 2011 taxes Keep a copy for your records. When can i file my 2011 taxes You can pay any additional amount you owe without waiting for a bill. When can i file my 2011 taxes Include interest on the additional tax at the applicable rate. When can i file my 2011 taxes This interest rate is usually for the period from the due date of the return (excluding any extension of time to file) to the date of payment. When can i file my 2011 taxes The examiner can tell you the interest rate(s) or help you figure the amount. When can i file my 2011 taxes   You must pay interest on penalties and additions to tax for failing to file returns, for overstating valuations, for understating valuations on estate and gift tax returns, and for substantially understating tax liability. When can i file my 2011 taxes Interest is generally figured from the date (including extensions) the tax return is required to be filed to the date you pay the penalty and/or additions to tax. When can i file my 2011 taxes   If you pay the amount due within 10 business days after the date of notice and demand for immediate payment, you will not have to pay any additional penalties and interest. When can i file my 2011 taxes This period is extended to 21 calendar days if the amount due is less than $100,000. When can i file my 2011 taxes How To Stop Interest From Accruing If you think that you will owe additional tax at the end of the examination, you can stop the further accrual of interest by sending money to the IRS to cover all or part of the amount you think you will owe. When can i file my 2011 taxes Interest on part or all of any amount you owe will stop accruing on the date the IRS receives your money. When can i file my 2011 taxes You can send an amount either in the form of a deposit in the nature of a cash bond or as a payment of tax. When can i file my 2011 taxes Both a deposit and a payment stop any further accrual of interest. When can i file my 2011 taxes However, making a deposit or payment will stop the accrual of interest on only the amount you sent. When can i file my 2011 taxes Because of compounding rules, interest will continue to accrue on accrued interest, even though you have paid the underlying tax. When can i file my 2011 taxes To stop the accrual of interest on both tax and interest, you must make a deposit or payment for both the tax and interest that has accrued as of the date of deposit or payment. When can i file my 2011 taxes Payment or Deposit Deposits differ from payments in two ways: You can have all or part of your deposit returned to you without filing for a refund. When can i file my 2011 taxes However, if you request and receive your deposit and the IRS later assesses a deficiency for that period and type of tax, interest will be figured as if the funds were never on deposit. When can i file my 2011 taxes Also, your deposit will not be returned if one of the following situations applies: The IRS assesses a tax liability. When can i file my 2011 taxes The IRS determines that, by returning the deposit, it may not be able to collect a future deficiency. When can i file my 2011 taxes The IRS determines that the deposit should be applied against another tax liability. When can i file my 2011 taxes Deposits returned to you will include interest based on the Federal short-term rate determined under section 6621(b). When can i file my 2011 taxes The deposit returned will be treated as a tax payment to the extent of the disputed tax. When can i file my 2011 taxes A disputed tax means the amount of tax specified at the time of deposit as a reasonable estimate of the maximum amount of any tax owed by you, such as the deficiency proposed in the 30-day letter. When can i file my 2011 taxes Notice not mailed. When can i file my 2011 taxes    If you send money before the IRS mails you a notice of deficiency, you can ask the IRS to treat it as a deposit. When can i file my 2011 taxes You must make your request in writing. When can i file my 2011 taxes   If, after being notified of a proposed liability but before the IRS mails you a notice of deficiency, you send an amount large enough to cover the proposed liability, it will be considered a payment unless you request in writing that it be treated as a deposit. When can i file my 2011 taxes Keep copies of all correspondence you send to the IRS. When can i file my 2011 taxes   If the amount you send is at least as much as the proposed liability and you do not request that it be treated as a deposit, the IRS will not send you a notice of deficiency. When can i file my 2011 taxes If you do not receive a notice of deficiency, you cannot take your case to the Tax Court. When can i file my 2011 taxes See Tax Court , later under Appeal Rights . When can i file my 2011 taxes Notice mailed. When can i file my 2011 taxes    If, after the IRS mails the notice of deficiency, you send money without written instructions, it will be treated as a payment. When can i file my 2011 taxes You will still be able to petition the Tax Court. When can i file my 2011 taxes   If you send money after receiving a notice of deficiency and you have specified in writing that it is a “deposit in the nature of a cash bond,” the IRS will treat it as a deposit if you send it before either: The close of the 90-day or 150-day period for filing a petition with the Tax Court to appeal the deficiency, or The date the Tax Court decision is final, if you have filed a petition. When can i file my 2011 taxes Using a Deposit To Pay the Tax If you agree with the examiner's proposed changes after the examination, your deposit will be applied against any amount you may owe. When can i file my 2011 taxes The IRS will not mail you a notice of deficiency and you will not have the right to take your case to the Tax Court. When can i file my 2011 taxes If you do not agree to the full amount of the deficiency after the examination, the IRS will mail you a notice of deficiency. When can i file my 2011 taxes Your deposit will be applied against the proposed deficiency unless you write to the IRS before the end of the 90-day or 150-day period stating that you still want the money to be treated as a deposit. When can i file my 2011 taxes You will still have the right to take your case to the Tax Court. When can i file my 2011 taxes Installment Agreement Request You can request a monthly installment plan if you cannot pay the full amount you owe. When can i file my 2011 taxes To be valid, your request must be approved by the IRS. When can i file my 2011 taxes However, if you owe $10,000 or less in tax and you meet certain other criteria, the IRS must accept your request. When can i file my 2011 taxes Before you request an installment agreement, you should consider other less costly alternatives, such as a bank loan. When can i file my 2011 taxes You will continue to be charged interest and penalties on the amount you owe until it is paid in full. When can i file my 2011 taxes Unless your income is below a certain level, the fee for an approved installment agreement has increased to $105 ($52 if you make your payments by electronic funds withdrawal). When can i file my 2011 taxes If your income is below a certain level, you may qualify to pay a reduced fee of $43. When can i file my 2011 taxes For more information about installment agreements, see Form 9465, Installment Agreement Request. When can i file my 2011 taxes Interest Netting If you owe interest to the IRS on an underpayment for the same period the IRS owes you interest on an overpayment, the IRS will figure interest on the underpayment and overpayment at the same interest rate (up to the amount of the overpayment). When can i file my 2011 taxes As a result, the net rate is zero for that period. When can i file my 2011 taxes Abatement of Interest Due to Error or Delay by the IRS The IRS may abate (reduce) the amount of interest you owe if the interest is due to an unreasonable error or delay by an IRS officer or employee in performing a ministerial or managerial act (discussed later). When can i file my 2011 taxes Only the amount of interest on income, estate, gift, generation-skipping, and certain excise taxes can be reduced. When can i file my 2011 taxes The amount of interest will not be reduced if you or anyone related to you contributed significantly to the error or delay. When can i file my 2011 taxes Also, the interest will be reduced only if the error or delay happened after the IRS contacted you in writing about the deficiency or payment on which the interest is based. When can i file my 2011 taxes An audit notification letter is such a contact. When can i file my 2011 taxes The IRS cannot reduce the amount of interest due to a general administrative decision, such as a decision on how to organize the processing of tax returns. When can i file my 2011 taxes Ministerial act. When can i file my 2011 taxes    This is a procedural or mechanical act, not involving the exercise of judgment or discretion, during the processing of a case after all prerequisites (for example, conferences and review by supervisors) have taken place. When can i file my 2011 taxes A decision concerning the proper application of federal tax law (or other federal or state law) is not a ministerial act. When can i file my 2011 taxes Example 1. When can i file my 2011 taxes You move from one state to another before the IRS selects your tax return for examination. When can i file my 2011 taxes A letter stating that your return has been selected is sent to your old address and then forwarded to your new address. When can i file my 2011 taxes When you get the letter, you respond with a request that the examination be transferred to the area office closest to your new address. When can i file my 2011 taxes The examination group manager approves your request. When can i file my 2011 taxes After your request has been approved, the transfer is a ministerial act. When can i file my 2011 taxes The IRS can reduce the interest because of any unreasonable delay in transferring the case. When can i file my 2011 taxes Example 2. When can i file my 2011 taxes An examination of your return reveals tax due for which a notice of deficiency (90-day letter) will be issued. When can i file my 2011 taxes After you and the IRS discuss the issues, the notice is prepared and reviewed. When can i file my 2011 taxes After the review process, issuing the notice of deficiency is a ministerial act. When can i file my 2011 taxes If there is an unreasonable delay in sending the notice of deficiency to you, the IRS can reduce the interest resulting from the delay. When can i file my 2011 taxes Managerial act. When can i file my 2011 taxes    This is an administrative act during the processing of a case that involves the loss of records or the exercise of judgment or discretion concerning the management of personnel. When can i file my 2011 taxes A decision concerning the proper application of federal tax law (or other federal or state law) is not a managerial act. When can i file my 2011 taxes Example. When can i file my 2011 taxes A revenue agent is examining your tax return. When can i file my 2011 taxes During the middle of the examination, the agent is sent to an extended training course. When can i file my 2011 taxes The agent's supervisor decides not to reassign your case, so the work is unreasonably delayed until the agent returns. When can i file my 2011 taxes Interest from the unreasonable delay can be abated since both the decision to send the agent to the training class and not to reassign the case are managerial acts. When can i file my 2011 taxes How to request abatement of interest. When can i file my 2011 taxes    You request an abatement (reduction) of interest on Form 843. When can i file my 2011 taxes You should file the claim with the IRS Service Center where you filed the tax return that was affected by the error or delay. When can i file my 2011 taxes   If you have already paid the interest and you would like a credit or refund of interest paid, you must file Form 843 within 3 years from the date you filed your original return or 2 years from the date you paid the interest, whichever is later. When can i file my 2011 taxes If you have not paid any of the interest, these time limitations for filing Form 843 do not apply. When can i file my 2011 taxes   Generally, you should file a separate Form 843 for each tax period and each type of tax. When can i file my 2011 taxes However, complete only one Form 843 if the interest is from an IRS error or delay that affected your tax for more than one tax period or for more than one type of tax (for example, where 2 or more tax years were being examined). When can i file my 2011 taxes   If your request for abatement of interest is denied, you can appeal the decision to the IRS Appeals Office. When can i file my 2011 taxes Tax Court can review failure to abate interest. When can i file my 2011 taxes    The Tax Court can review the IRS's refusal to abate (reduce) interest if all of the following requirements are met: You filed a request for abatement of interest (Form 843) with the IRS after July 30,1996. When can i file my 2011 taxes The IRS has mailed you a notice of final determination or a notice of disallowance. When can i file my 2011 taxes You file a petition with the Tax Court within 180 days of the mailing of the notice of final determination or the notice of disallowance. When can i file my 2011 taxes   The following requirements must also be met: For individual and estate taxpayers — your net worth must not exceed $2 million as of the filing date of your petition for review. When can i file my 2011 taxes For this purpose, individuals filing a joint return shall be treated as separate individuals. When can i file my 2011 taxes For charities and certain cooperatives — you must not have more than 500 employees as of the filing date of your petition for review. When can i file my 2011 taxes For all other taxpayers — your net worth must not exceed $7 million, and you must not have more than 500 employees as of the filing date of your petition for review. When can i file my 2011 taxes Abatement of Interest for Individuals Affected by Presidentially Declared Disasters or Military or Terrorist Actions If you are (or were) affected by a Presidentially declared disaster occurring after 1996 or a terrorist or military action occurring after September 10, 2001, the IRS may abate (reduce) the amount of interest you owe on certain taxes. When can i file my 2011 taxes The IRS may abate interest for the period of any additional time to file or pay that the IRS provides on account of the disaster or the terrorist or military action. When can i file my 2011 taxes The IRS will issue a notice or news release indicating who are affected taxpayers and stating the period of relief. When can i file my 2011 taxes If you are eligible for relief from interest, but were charged interest for the period of relief, the IRS may retroactively abate your interest. When can i file my 2011 taxes To the extent possible, the IRS can take the following actions: Make appropriate adjustments to your account. When can i file my 2011 taxes Notify you when the adjustments are made. When can i file my 2011 taxes Refund any interest paid by you where appropriate. When can i file my 2011 taxes For more information on disaster area losses, see Disaster Area Losses in Publication 547. When can i file my 2011 taxes For more information on other tax relief for victims of terrorist attacks, see Publication 3920. When can i file my 2011 taxes Offer in Compromise In certain circumstances, the IRS will allow you to pay less than the full amount you owe. When can i file my 2011 taxes If you think you may qualify, you should submit your offer by filing Form 656, Offer in Compromise. When can i file my 2011 taxes The IRS may accept your offer for any of the following reasons: There is doubt about the amount you owe (or whether you owe it). When can i file my 2011 taxes There is doubt as to whether you can pay the amount you owe based on your financial situation. When can i file my 2011 taxes An economic hardship would result if you had to pay the full amount owed. When can i file my 2011 taxes Your case presents compelling reasons that the IRS determines are a sufficient basis for compromise. When can i file my 2011 taxes If your offer is rejected, you have 30 days to ask the Appeals Office of the IRS to reconsider your offer. When can i file my 2011 taxes The IRS offers fast track mediation services to help taxpayers resolve many issues including a dispute regarding an offer in compromise. When can i file my 2011 taxes For more information, see Publication 3605. When can i file my 2011 taxes Generally, if you submit an offer in compromise, the IRS will delay certain collection activities. When can i file my 2011 taxes The IRS usually will not levy (take) your property to settle your tax bill during the following periods: While the IRS is evaluating your offer in compromise. When can i file my 2011 taxes The 30 days immediately after the offer is rejected. When can i file my 2011 taxes While your timely-filed appeal is being considered by Appeals. When can i file my 2011 taxes Also, if the IRS rejects your original offer and you submit a revised offer within 30 days of the rejection, the IRS generally will not levy your property while it considers your revised offer. When can i file my 2011 taxes For more information about submitting an offer in compromise, see Form 656. When can i file my 2011 taxes Appeal Rights Because people sometimes disagree on tax matters, the IRS has an appeals system. When can i file my 2011 taxes Most differences can be settled within this system without expensive and time-consuming court trials. When can i file my 2011 taxes However, your reasons for disagreeing must come within the scope of the tax laws. When can i file my 2011 taxes For example, you cannot appeal your case based only on moral, religious, political, constitutional, conscientious, or similar grounds. When can i file my 2011 taxes In most instances, you may be eligible to take your case to court if you do not reach an agreement at your appeals conference, or if you do not want to appeal your case to the IRS Office of Appeals. When can i file my 2011 taxes See Appeals to the Courts , later, for more information. When can i file my 2011 taxes Appeal Within the IRS You can appeal an IRS tax decision to a local Appeals Office, which is separate from and independent of the IRS office taking the action you disagree with. When can i file my 2011 taxes The Appeals Office is the only level of appeal within the IRS. When can i file my 2011 taxes Conferences with Appeals Office personnel are held in an informal manner by correspondence, by telephone, or at a personal conference. When can i file my 2011 taxes If you want an appeals conference, follow the instructions in the letter you received. When can i file my 2011 taxes Your request will be sent to the Appeals Office to arrange a conference at a convenient time and place. When can i file my 2011 taxes You or your representative should be prepared to discuss all disputed issues at the conference. When can i file my 2011 taxes Most differences are settled at this level. When can i file my 2011 taxes If agreement is not reached at your appeals conference, you may be eligible to take your case to court. When can i file my 2011 taxes See Appeals to the Courts , later. When can i file my 2011 taxes Protests and Small Case Requests When you request an Appeals conference, you may also need to file either a formal written protest or a small case request with the office named in the letter you received. When can i file my 2011 taxes Also, see the special appeal request procedures in Publication 1660. When can i file my 2011 taxes Written protest. When can i file my 2011 taxes   You need to file a written protest in the following cases: All employee plan and exempt organization cases without regard to the dollar amount at issue. When can i file my 2011 taxes All partnership and S corporation cases without regard to the dollar amount at issue. When can i file my 2011 taxes All other cases, unless you qualify for the small case request procedure, or other special appeal procedures such as requesting Appeals consideration of liens, levies, seizures, or installment agreements. When can i file my 2011 taxes   If you must submit a written protest, see the instructions in Publication 5 about the information you need to provide. When can i file my 2011 taxes The IRS urges you to provide as much information as you can, as it will help speed up your appeal. When can i file my 2011 taxes That will save you both time and money. When can i file my 2011 taxes    Be sure to send the protest within the time limit specified in the letter you received. When can i file my 2011 taxes Small case request. When can i file my 2011 taxes   If the total amount for any tax period is not more than $25,000, you may make a small case request instead of filing a formal written protest. When can i file my 2011 taxes In figuring the total amount, include a proposed increase or decrease in tax (including penalties), or claimed refund. When can i file my 2011 taxes If you are making an offer in compromise, include total unpaid tax, penalty, and interest due. When can i file my 2011 taxes For a small case request, follow the instructions in our letter to you by sending a letter: Requesting Appeals consideration, Indicating the changes you do not agree with, and Indicating the reasons why you do not agree. When can i file my 2011 taxes Representation You can represent yourself at your appeals conference, or you can be represented by any federally authorized practitioner, including an attorney, a certified public accountant, an enrolled actuary, or an enrolled agent. When can i file my 2011 taxes If your representative attends a conference without you, he or she can receive or inspect confidential information only if you have filed a power of attorney or a tax information authorization. When can i file my 2011 taxes You can use a Form 2848 or any other properly written power of attorney or authorization. When can i file my 2011 taxes You can also bring witnesses to support your position. When can i file my 2011 taxes Confidentiality privilege. When can i file my 2011 taxes   Generally, the same confidentiality protection that you have with an attorney also applies to certain communications that you have with federally authorized practitioners. When can i file my 2011 taxes See Confidentiality privilege under If Your Return Is Examined , earlier. When can i file my 2011 taxes Appeals to the Courts If you and the IRS still disagree after the appeals conference, you may be entitled to take your case to the United States Tax Court, the United States Court of Federal Claims, or a United States District Court. When can i file my 2011 taxes These courts are independent of the IRS. When can i file my 2011 taxes If you elect to bypass the IRS's appeals system, you may be able to take your case to one of the courts listed above. When can i file my 2011 taxes However, a case petitioned to the United States Tax Court will normally be considered for settlement by an Appeals Officer before the Tax Court hears the case. When can i file my 2011 taxes If you unreasonably fail to pursue the IRS's appeals system, or if your case is intended primarily to cause a delay, or your position is frivolous or groundless, the Tax Court may impose a penalty of up to $25,000. When can i file my 2011 taxes See Appeal Within the IRS, earlier. When can i file my 2011 taxes Prohibition on requests to taxpayers to give up rights to bring civil action. When can i file my 2011 taxes   The Government cannot ask you to waive your right to sue the United States or a Government officer or employee for any action taken in connection with the tax laws. When can i file my 2011 taxes However, your right to sue can be waived if: You knowingly and voluntarily waive that right, The request to waive that right is made in writing to your attorney or other federally authorized practitioner, or The request is made in person and your attorney or other representative is present. When can i file my 2011 taxes Burden of proof. When can i file my 2011 taxes   For court proceedings resulting from examinations started after July 22, 1998, the IRS generally has the burden of proof for any factual issue if you have met the following requirements: You introduced credible evidence relating to the issue. When can i file my 2011 taxes You complied with all substantiation requirements of the Internal Revenue Code. When can i file my 2011 taxes You maintained all records required by the Internal Revenue Code. When can i file my 2011 taxes You cooperated with all reasonable requests by the IRS for information regarding the preparation and related tax treatment of any item reported on your tax return. When can i file my 2011 taxes You had a net worth of $7 million or less and not more than 500 employees at the time your tax liability is contested in any court proceeding if your tax return is for a corporation, partnership, or trust. When can i file my 2011 taxes    The burden of proof does not change on an issue when another provision of the tax laws requires a specific burden of proof with respect to that issue. When can i file my 2011 taxes Use of statistical information. When can i file my 2011 taxes   In the case of an individual, the IRS has the burden of proof in court proceedings based on any IRS reconstruction of income solely through the use of statistical information on unrelated taxpayers. When can i file my 2011 taxes Penalties. When can i file my 2011 taxes   The IRS has the burden of initially producing evidence in court proceedings with respect to the liability of any individual taxpayer for any penalty, addition to tax, or additional amount imposed by the tax laws. When can i file my 2011 taxes Recovering litigation or administrative costs. When can i file my 2011 taxes   These are the expenses that you pay to defend your position to the IRS or the courts. When can i file my 2011 taxes You may be able to recover reasonable litigation or administrative costs if all of the following conditions apply: You are the prevailing party. When can i file my 2011 taxes You exhaust all administrative remedies within the IRS. When can i file my 2011 taxes Your net worth is below a certain limit (see Net worth requirements , later). When can i file my 2011 taxes You do not unreasonably delay the proceeding. When can i file my 2011 taxes You apply for administrative costs within 90 days of the date on which the final decision of the IRS Office of Appeals as to the determination of the tax, interest, or penalty was mailed to you. When can i file my 2011 taxes You apply for litigation costs within the time frames provided by Tax Court Rule 231, found at http://www. When can i file my 2011 taxes ustaxcourt. When can i file my 2011 taxes gov  www. When can i file my 2011 taxes ustaxcourt. When can i file my 2011 taxes gov . When can i file my 2011 taxes   Prevailing party, reasonable litigation costs, and reasonable administrative costs are explained later. When can i file my 2011 taxes Note. When can i file my 2011 taxes If the IRS denies your award of administrative costs, and you want to appeal, you must petition the Tax Court within 90 days of the date on which the IRS mails the denial notice. When can i file my 2011 taxes Prevailing party. When can i file my 2011 taxes   Generally, you are the prevailing party if: You substantially prevail with respect to the amount in controversy or on the most significant tax issue or set of issues in question, and You meet the net worth requirements, discussed later. When can i file my 2011 taxes   You will not be treated as the prevailing party if the United States establishes that its position was substantially justified. When can i file my 2011 taxes The position of the United States is presumed not to be substantially justified if the IRS: Did not follow its applicable published guidance (such as regulations, revenue rulings, notices, announcements, private letter rulings, technical advice memoranda, and determination letters issued to the taxpayer) in the proceeding (This presumption can be overcome by evidence. When can i file my 2011 taxes ), or Has lost in courts of appeal for other circuits on substantially similar issues. When can i file my 2011 taxes   The court will generally decide who is the prevailing party. When can i file my 2011 taxes Reasonable litigation costs. When can i file my 2011 taxes   These include the following costs: Reasonable court costs. When can i file my 2011 taxes The reasonable costs of studies, analyses, engineering reports, tests, or projects found by the court to be necessary for the preparation of your case. When can i file my 2011 taxes The reasonable costs of expert witnesses. When can i file my 2011 taxes Attorney fees that generally may not exceed $125 maximum hourly rate as set by statute and indexed for inflation. When can i file my 2011 taxes See Attorney fees , later. When can i file my 2011 taxes Reasonable administrative costs. When can i file my 2011 taxes   These include the following costs: Any administrative fees or similar charges imposed by the IRS. When can i file my 2011 taxes The reasonable costs of studies, analyses, engineering reports, tests, or projects. When can i file my 2011 taxes The reasonable costs of expert witnesses. When can i file my 2011 taxes Attorney fees that generally may not exceed $125 per hour. When can i file my 2011 taxes See Attorney fees , later. When can i file my 2011 taxes Timing of costs. When can i file my 2011 taxes    Administrative costs can be awarded for costs incurred after the earliest of: The date the first letter of proposed deficiency is sent that allows you an opportunity to request administrative review in the IRS Office of Appeals, The date you receive notice of the IRS Office of Appeals' decision, or The date of the notice of deficiency. When can i file my 2011 taxes Net worth requirements. When can i file my 2011 taxes   An individual taxpayer may be able to recover litigation or administrative costs if the following requirements are met: For individuals — your net worth does not exceed $2 million as of the filing date of your petition for review. When can i file my 2011 taxes For this purpose, individuals filing a joint return are treated as separate individuals. When can i file my 2011 taxes For estates — your net worth does not exceed $2 million as of the date of the decedent's death. When can i file my 2011 taxes For charities and certain cooperatives — you do not have more than 500 employees as of the filing date of your petition for review. When can i file my 2011 taxes For all other taxpayers — as of the filing date of your petition for review, your net worth does not exceed $7 million, and you must not have more than 500 employees. When can i file my 2011 taxes Qualified offer rule. When can i file my 2011 taxes    You can also receive reasonable costs and fees and be treated as a prevailing party in a civil action or proceeding if: You make a qualified offer to the IRS to settle your case, The IRS does not accept that offer, and The tax liability (not including interest, unless interest is at issue) later determined by the court is equal to or less than the amount of your qualified offer. When can i file my 2011 taxes You must also meet the remaining requirements, including the exhaustion of administrative remedies and the net worth requirement, discussed earlier, to get the benefit of the qualified offer rule. When can i file my 2011 taxes Qualified offer. When can i file my 2011 taxes    This is a written offer made by you during the qualified offer period. When can i file my 2011 taxes It must specify both the offered amount of your liability (not including interest) and that it is a qualified offer. When can i file my 2011 taxes   To be a qualified offer, it must remain open from the date it is made until the earliest of: The date it is rejected, The date the trial begins, or 90 days from the date it is made. When can i file my 2011 taxes Qualified offer period. When can i file my 2011 taxes    This period begins on the day the IRS mails you the first letter of proposed deficiency that allows you to request review by the IRS Office of Appeals. When can i file my 2011 taxes It ends 30 days before your case is first set for trial. When can i file my 2011 taxes Attorney fees. When can i file my 2011 taxes   Attorney fees generally may not exceed $125 maximum hourly rate as set by statute and indexed for inflation. When can i file my 2011 taxes However, this amount can be higher in certain limited circumstances depending on the level of difficulty of the issues in the case and the local availability of tax expertise. When can i file my 2011 taxes See IRS. When can i file my 2011 taxes gov for more information. When can i file my 2011 taxes    Attorney fees include the fees paid by a taxpayer for the services of anyone who is authorized to practice before the Tax Court or before the IRS. When can i file my 2011 taxes In addition, attorney fees can be awarded in civil actions for unauthorized inspection or disclosure of a taxpayer's return or return information. When can i file my 2011 taxes   Fees can be awarded in excess of the actual amount charged if: You are represented for no fee, or for a nominal fee, as a pro bono service, and The award is paid to your representative or to your representative's employer. When can i file my 2011 taxes Jurisdiction for determination of employment status. When can i file my 2011 taxes    The Tax Court can review IRS employment status determinations (for example, whether individuals hired by you are in fact your employees or independent contractors) and the amount of employment tax under such determinations. When can i file my 2011 taxes Tax Court review can take place only if, in connection with an audit of any person, there is a controversy involving a determination by the IRS that either: One or more individuals performing services for that person are employees of that person, or That person is not entitled to relief under Section 530(a) of the Revenue Act of 1978 (discussed later). When can i file my 2011 taxes   The following rules also apply to a Tax Court review of employment status: A Tax Court petition to review these determinations can be filed only by the person for whom the services are performed, If you receive a Notice of Determination by certified or registered mail, you must file a petition for Tax Court review within 90 days of the date of mailing that notice (150 days if the notice is addressed to you outside the United States), If during the Tax Court proceeding, you begin to treat as an employee an individual whose employment status is at issue, the Tax Court will not consider that change in its decision, Assessment and collection of tax is suspended while the Tax Court review is taking place, Payment of the asserted employment tax deficiency is not required to petition the U. When can i file my 2011 taxes S. When can i file my 2011 taxes Tax Court for a determination of employment status. When can i file my 2011 taxes There can be a de novo review by the Tax Court (a review which does not consider IRS administrative findings), and At your request and with the Tax Court's agreement, small tax case procedures (discussed later) are available to simplify the case resolution process when the amount at issue (including additions to tax and penalties) is $50,000 or less for each tax period involved. When can i file my 2011 taxes   For further information, see Publication 3953, Questions and Answers About Tax Court Proceedings for Determination of Employment Status Under IRC Section 7436. When can i file my 2011 taxes Section 530(a) of the Revenue Act of 1978. When can i file my 2011 taxes   This section relieves an employer of certain employment tax responsibilities for individuals not treated as employees. When can i file my 2011 taxes It also provides relief to taxpayers under audit or involved in administrative or judicial proceedings. When can i file my 2011 taxes Tax Court review of request for relief from joint and several liability on a joint return. When can i file my 2011 taxes    As discussed later, at Relief from joint and several liability on a joint return under Claims for Refund, you can request relief from liability for tax you owe, plus related penalties and interest, that you believe should be paid by your spouse (or former spouse). When can i file my 2011 taxes You also can petition (ask) the Tax Court to review your request for innocent spouse relief or separation of liability if either: The IRS sends you a determination notice denying, in whole or in part, your request, or You do not receive a determination notice from the IRS within 6 months from the date you file Form 8857. When can i file my 2011 taxes   If you receive a determination notice, you must petition the Tax Court to review your request during the 90-day period that begins on the date the IRS mails the notice. When can i file my 2011 taxes See Publication 971 for more information. When can i file my 2011 taxes Note. When can i file my 2011 taxes Your spouse or former spouse may file a written protest and request an Appeals conference to protest your claim of innocent spouse relief or separation of liability. When can i file my 2011 taxes See Rev. When can i file my 2011 taxes Proc. When can i file my 2011 taxes 2003-19, which is on page 371 of the Internal Revenue Bulletin 2003-5 at  www. When can i file my 2011 taxes irs. When can i file my 2011 taxes gov/pub/irs-irbs/irb03-05. When can i file my 2011 taxes pdf. When can i file my 2011 taxes Tax Court You can take your case to the United States Tax Court if you disagree with the IRS over: Income tax, Estate tax, Gift tax, Employment tax involving IRS employment status determinations, or Certain excise taxes of private foundations, public charities, qualified pension and other retirement plans, or real estate investment trusts. When can i file my 2011 taxes For information on Tax Court review of a determination of employment status, see Jurisdiction for determination of employment status, earlier. When can i file my 2011 taxes For information on Tax Court review of an IRS refusal to abate interest, see Tax Court can review failure to abate interest, earlier under Examination of Returns. When can i file my 2011 taxes For information on Tax Court review of Appeals determinations with respect to lien notices and proposed levies, see Publication 1660. When can i file my 2011 taxes You cannot take your case to the Tax Court before the IRS sends you a notice of deficiency. When can i file my 2011 taxes You can only appeal your case if you file a petition within 90 days from the date the notice is mailed to you (150 days if it is addressed to you outside the United States). When can i file my 2011 taxes The notice will show the 90th (or 150th) day by which you must file your petition with the Tax Court. When can i file my 2011 taxes Withdrawal of notice of deficiency. When can i file my 2011 taxes If you consent, the IRS can withdraw a notice of deficiency. When can i file my 2011 taxes A notice of deficiency may be rescinded if the notice was issued as a result of an administrative error; the taxpayer submits information establishing the actual tax due is less than the amount shown in the notice; the taxpayer specifically requests a conference with the appropriate Appeals office for the purpose of entering into settlement negotiations. When can i file my 2011 taxes However, the notice may be rescinded only if the appropriate Appeals office first decides that the case is susceptible to agreement. When can i file my 2011 taxes See Revenue Procedure 98-54 for a more detailed explanation of the requirements. When can i file my 2011 taxes Once withdrawn, the limits on credits, refunds, and assessments concerning the notice are void, and you and the IRS have the rights and obligations that you had before the notice was issued. When can i file my 2011 taxes The suspension of any time limitation while the notice of deficiency was issued will not change when the notice is withdrawn. When can i file my 2011 taxes After the notice is withdrawn, you cannot file a petition with the Tax Court based on the notice. When can i file my 2011 taxes Also, the IRS can later issue a notice of deficiency in a greater or lesser amount than the amount in the withdrawn deficiency. When can i file my 2011 taxes Generally, the Tax Court hears cases before any tax has been assessed and paid; however, you can pay the tax after the notice of deficiency has been issued and still petition the Tax Court for review. When can i file my 2011 taxes If you do not file your petition on time, the proposed tax will be assessed, a bill will be sent, and you will not be able to take your case to the Tax Court. When can i file my 2011 taxes Under the law, you must pay the tax within 21 days (10 business days if the amount is $100,000 or more). When can i file my 2011 taxes Collection can proceed even if you think that the amount is excessive. When can i file my 2011 taxes Publication 594 explains IRS collection procedures. When can i file my 2011 taxes If you filed your petition on time, the court will schedule your case for trial at a location convenient to you. When can i file my 2011 taxes You can represent yourself before the Tax Court or you can be represented by anyone admitted to practice before that court. When can i file my 2011 taxes Small tax case procedure. When can i file my 2011 taxes   If the amount in your case is $50,000 or less for any 1 tax year or period, you can request that your case be handled under the small tax case procedure. When can i file my 2011 taxes If the Tax Court approves, you can present your case to the Tax Court for a decision that is final and that you cannot appeal. When can i file my 2011 taxes You can get more information regarding the small tax case procedure and other Tax Court matters from the United States Tax Court, 400 Second Street, N. When can i file my 2011 taxes W. When can i file my 2011 taxes , Washington, DC 20217. When can i file my 2011 taxes More information can be found on the Tax Court's website at www. When can i file my 2011 taxes ustaxcourt. When can i file my 2011 taxes gov. When can i file my 2011 taxes Motion to request redetermination of interest. When can i file my 2011 taxes   In certain cases, you can file a motion asking the Tax Court to redetermine the amount of interest on either an underpayment or an overpayment. When can i file my 2011 taxes You can do this only in a situation that meets all of the following requirements: The IRS has assessed a deficiency that was determined by the Tax Court. When can i file my 2011 taxes The assessment included interest. When can i file my 2011 taxes You have paid the entire amount of the deficiency plus the interest claimed by the IRS. When can i file my 2011 taxes The Tax Court has found that you made an overpayment. When can i file my 2011 taxes You must file the motion within one year after the decision of the Tax Court becomes final. When can i file my 2011 taxes District Court and Court of Federal Claims Generally, the District Courts and the Court of Federal Claims hear tax cases only after you have paid the entire tax and penalties, and filed a claim for a credit or refund. When can i file my 2011 taxes The taxpayer may litigate certain types of employment tax cases in either the United States District Court or the United States Court of Federal Claims. When can i file my 2011 taxes Before taxpayers can initiate suit in either of these courts with respect to certain employment taxes, they will have to pay, at a minimum, the employment tax assessment attributable to one employee for any one quarter and file a claim for refund of the tax. When can i file my 2011 taxes Once the claim for refund is denied or 6 months elapse without any action by the IRS, the taxpayer may initiate suit. When can i file my 2011 taxes As explained later under Claims for Refund, you can file a claim with the IRS for a credit or refund if you think that the tax you paid is incorrect or excessive. When can i file my 2011 taxes If your claim is totally or partially disallowed by the IRS, you should receive a notice of claim disallowance. When can i file my 2011 taxes If the IRS does not act on your claim within 6 months from the date you filed it, you can then file suit for a refund. When can i file my 2011 taxes You generally must file suit for a credit or refund no later than 2 years after the IRS informs you that your claim has been rejected. When can i file my 2011 taxes However, you can file suit if it has been 6 months since you filed your claim and the IRS has not yet delivered a decision. When can i file my 2011 taxes You can file suit for a credit or refund in your United States District Court or in the United States Court of Federal Claims. When can i file my 2011 taxes However, you cannot appeal to the United States Court of Federal Claims if your claim is for credit or refund of a penalty that relates to promoting an abusive tax shelter or to aiding and abetting the understatement of tax liability on someone else's return. When can i file my 2011 taxes For information about procedures for filing suit in either court, contact the Clerk of your District Court or of the United States Court of Federal Claims. When can i file my 2011 taxes Refund or Credit of Overpayments Before Final Determination Any court with proper jurisdiction, including the Tax Court, can order the IRS to refund any part of a tax deficiency that the IRS collects from you during a period when the IRS is not permitted to assess that deficiency, or to levy or engage in any court proceeding to collect that deficiency. When can i file my 2011 taxes In addition, the court can order a refund of any part of an overpayment determined by the Tax Court that is not at issue on appeal to a higher court. When can i file my 2011 taxes The court can order these refunds before its decision on the case is final. When can i file my 2011 taxes Taxpayers should thoroughly review IRS settlement offers before signing a Tax Court Decision document to ensure that all adjustments are correct, including the inclusion of any tax credits that the taxpayer is allowed to claim. When can i file my 2011 taxes Note. When can i file my 2011 taxes The court may no longer order a refund of an overpayment after the case is final. When can i file my 2011 taxes Generally, the IRS is not permitted to take action on a tax deficiency during: The 90-day (or 150-day if outside the United States) period that you have to petition a notice of deficiency to the Tax Court, or The period that the case is under appeal if a bond is provided. When can i file my 2011 taxes Claims for Refund If you believe you have overpaid your tax, you have a limited amount of time in which to file a claim for a credit or refund. When can i file my 2011 taxes You can claim a credit or refund by filing Form 1040X. When can i file my 2011 taxes See Time for Filing a Claim for Refund , later. When can i file my 2011 taxes File your claim by mailing it to the IRS Service Center where you filed your original return. When can i file my 2011 taxes File a separate form for each year or period involved. When can i file my 2011 taxes Include an explanation of each item of income, deduction, or credit on which you are basing your claim. When can i file my 2011 taxes Corporations should file Form 1120X, Amended U. When can i file my 2011 taxes S. When can i file my 2011 taxes Corporation Income Tax Return, or other form appropriate to the type of credit or refund claimed. When can i file my 2011 taxes See Publication 3920 for information on filing claims for tax forgiveness for individuals affected by terrorist attacks. When can i file my 2011 taxes Requesting a copy of your tax return. When can i file my 2011 taxes   You can obtain a copy of the actual return and all attachments you filed with the IRS for an earlier year. When can i file my 2011 taxes This includes a copy of the Form W-2 or Form 1099 filed with your return. When can i file my 2011 taxes Use Form 4506 to make your request. When can i file my 2011 taxes You will be charged a fee, which you must pay when you submit Form 4506. When can i file my 2011 taxes Requesting a copy of your tax account information. When can i file my 2011 taxes   Use Form 4506-T, Request for Transcript of Tax Return, to request free copies of your tax return transcript, tax account transcript, record of account, verification of nonfiling, or Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript. When can i file my 2011 taxes The tax return transcript contains most of the line items of a tax return. When can i file my 2011 taxes A tax account transcript contains information on the financial status of the account, such as payments, penalty assessments, and adjustments. When can i file my 2011 taxes A record of account is a combination of line item information and later adjustments to the account. When can i file my 2011 taxes Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript contains data from these information returns. When can i file my 2011 taxes Penalty for erroneous claim for refund. When can i file my 2011 taxes   If you claim an excessive amount of tax refund or credit relating to income tax (other than a claim relating to the earned income credit), you may be liable for a penalty of 20% of the amount that is determined to be excessive. When can i file my 2011 taxes An excessive amount is the amount of the claim for refund or credit that is more than the amount of claim allowable for the tax year. When can i file my 2011 taxes The penalty may be waived if you can show that you had a reasonable basis for making the claim. When can i file my 2011 taxes Time for Filing a Claim for Refund Generally, you must file a claim for a credit or refund within 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. When can i file my 2011 taxes If you do not file a claim within this period, you may no longer be entitled to a credit or a refund. When can i file my 2011 taxes If the due date to file a return or a claim for a credit or refund is a Saturday, Sunday, or legal holiday, it is filed on time if it is filed on the next business day. When can i file my 2011 taxes Returns you filed before the due date are considered filed on the due date. When can i file my 2011 taxes This is true even when the due date is a Saturday, Sunday, or legal holiday. When can i file my 2011 taxes Disaster area claims for refund. When can i file my 2011 taxes   If you live in a Presidentially declared disaster area or are affected by terroristic or military action, the deadline to file a claim for a refund may be postponed. When can i file my 2011 taxes This section discusses the special rules that apply to Presidentially declared disaster area refunds. When can i file my 2011 taxes    A Presidentially declared disaster is a disaster that occurred in an area declared by the President to be eligible for federal assistance under the Disaster Relief and Emergency Assistance Act. When can i file my 2011 taxes Postponed refund deadlines. When can i file my 2011 taxes   The IRS may postpone for up to 1 year the deadlines for filing a claim for refund. When can i file my 2011 taxes The postponement can be used by taxpayers who are affected by a Presidentially declared disaster. When can i file my 2011 taxes The IRS may also postpone deadlines for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. When can i file my 2011 taxes For more information, see Publication 547. When can i file my 2011 taxes   If any deadline is postponed, the IRS will publicize the postponement in your area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin. When can i file my 2011 taxes A list of the areas eligible for assistance under the Disaster Relief and Emergency Assistance Act is available at the Federal Emergency Management Agency (FEMA) website at www. When can i file my 2011 taxes fema. When can i file my 2011 taxes gov and at the IRS website at www. When can i file my 2011 taxes irs. When can i file my 2011 taxes gov. When can i file my 2011 taxes Nonfilers can get refund of overpayments paid within 3-year period. When can i file my 2011 taxes   The Tax Court can consider taxes paid during the 3-year period preceding the date of a notice of deficiency for determining any refund due to a nonfiler. When can i file my 2011 taxes This means that if you do not file your return, and you receive a notice of deficiency in the third year after the due date (with extensions) of your return and file suit with the Tax Court to contest the notice of deficiency, you may be able to receive a refund of excessive amounts paid within the 3-year period preceding the date of the notice of deficiency. When can i file my 2011 taxes The IRS may postpone for up to 1 year certain tax deadlines, including the time for filing claims for refund, for taxpayers who are affected by a terrorist attack occurring after September 10, 2001. When can i file my 2011 taxes For more information, see Publication 3920. When can i file my 2011 taxes Claim for refund by estates electing the installment method of payment. When can i file my 2011 taxes   In certain cases where an estate has elected to make tax payments through the installment method, the executor can file a suit for refund with a U. When can i file my 2011 taxes S. When can i file my 2011 taxes District Court or the U. When can i file my 2011 taxes S. When can i file my 2011 taxes Court of Federal Claims before all the installment payments have been made. When can i file my 2011 taxes However, all the following must be true before a suit can be filed: The estate consists largely of an interest in a closely-held business. When can i file my 2011 taxes All installment payments due on or before the date the suit is filed have been made. When can i file my 2011 taxes No accelerated installment payments have been made. When can i file my 2011 taxes No Tax Court case is pending with respect to any estate tax liability. When can i file my 2011 taxes If a notice of deficiency was issued to the estate regarding its liability for estate tax, the time for petitioning the Tax Court has passed. When can i file my 2011 taxes No proceeding is pending for a declaratory judgment by the Tax Court on whether the estate is eligible to pay tax in installments. When can i file my 2011 taxes The executor has not included any previously litigated issues in the current suit for refund. When can i file my 2011 taxes The executor does not discontinue making installment payments timely, while the court considers the suit for refund. When can i file my 2011 taxes    If in its final decision on the suit for refund the court redetermines the estate's tax liability, the IRS must refund any part of the estate tax amount that is disallowed. When can i file my 2011 taxes This includes any part of the disallowed amount previously collected by the IRS. When can i file my 2011 taxes Protective claim for refund. When can i file my 2011 taxes   If your right to a refund is contingent on future events and may not be determinable until after the time period for filing a claim for refund expires, you can file a protective claim for refund. When can i file my 2011 taxes A protective claim can be either a formal claim or an amended return for credit or refund. When can i file my 2011 taxes Protective claims are often based on current litigation or expected changes in the tax law, other legislation, or regulations. When can i file my 2011 taxes A protective claim preserves your right to claim a refund when the contingency is resolved. When can i file my 2011 taxes A protective claim does not have to state a particular dollar amount or demand an immediate refund. When can i file my 2011 taxes However, to be valid, a protective claim must: Be in writing and be signed, Include your name, address, social security number or individual taxpayer identification number, and other contact information, Identify and describe the contingencies affecting the claim, Clearly alert the IRS to the essential nature of the claim, and Identify the specific year(s) for which a refund is sought. When can i file my 2011 taxes   Generally, the IRS will delay action on the protective claim until the contingency is resolved. When can i file my 2011 taxes Once the contingency is resolved, the IRS may obtain additional information necessary to process the claim and then either allow or disallow the claim. When can i file my 2011 taxes   Mail your protective claim for refund to the address listed in the instructions for Form 1040X, under Where To File. When can i file my 2011 taxes Exceptions The limits on your claim for refund can be affected by the type of item that forms the basis of your claim. When can i file my 2011 taxes Special refunds. When can i file my 2011 taxes   If you file a claim for refund based on one of the items listed below, the limits discussed earlier under Time for Filing a Claim for Refund may not apply. When can i file my 2011 taxes These special items are: A bad debt, A worthless security, A payment or accrual of foreign tax, A net operating loss carryback, and A carryback of certain tax credits. When can i file my 2011 taxes   The limits discussed earlier also may not apply if you have signed an agreement to extend the period of assessment of tax. When can i file my 2011 taxes For information on special rules on filing claims for an individual affected by a terrorist attack, see Publication 3920. When can i file my 2011 taxes Periods of financial disability. When can i file my 2011 taxes   If you are an individual (not a corporation or other taxpaying entity), the period of limitations on credits and refunds can be suspended during periods when you cannot manage your financial affairs because of physical or mental impairment that is medically determinable and either: Has lasted or can be expected to last continuously for at least 12 months, or Can be expected to result in death. When can i file my 2011 taxes    The period for filing a claim for refund will not be suspended for any time that someone else, such as your spouse or guardian, was authorized to act for you in financial matters. When can i file my 2011 taxes   To claim financial disability, you generally must submit the following statements with your claim for credit or refund: A written statement signed by a physician, qualified to make the determination, that sets forth: The name and a description of your physical or mental impairment, The physician's medical opinion that your physical or mental impairment prevented you from managing your financial affairs, The physician's medical opinion that your physical or mental impairment was or can be expected to result in death, or that it has lasted (or can be expected to last) for a continuous period of not less than 12 months, and To the best of the physician's knowledge, the specific time period during which you were prevented by such physical or mental impairment from managing your financial affairs, and A written statement by the person signing the claim for credit or refund that no person, including your spouse, was authorized to act on your behalf in financial matters during the period described in paragraph (1)(d) of the physician's statement. When can i file my 2011 taxes Alternatively, if a person was authorized to act on your behalf in financial matters during any part of the period described in that paragraph, the beginning and ending dates of the period of time the person was so authorized. When can i file my 2011 taxes    The period of limitations will not be suspended on any claim for refund that (without regard to this provision) was barred as of July 22, 1998. When can i file my 2011 taxes Limit on Amount of Refund If you file your claim within 3 years after filing your return, the credit or refund cannot be more than the part of the tax paid wi
Español

Government Departments and Agencies

View an organizational directory of the U.S. government.

The When Can I File My 2011 Taxes

When can i file my 2011 taxes 4. When can i file my 2011 taxes   Sales and Trades of Investment Property Table of Contents IntroductionNominees. When can i file my 2011 taxes Topics - This chapter discusses: Useful Items - You may want to see: What Is a Sale or Trade?Dividend versus sale or trade. When can i file my 2011 taxes Worthless Securities Constructive Sales of Appreciated Financial Positions Section 1256 Contracts Marked to Market Basis of Investment PropertyCost Basis Basis Other Than Cost Adjusted Basis Stocks and Bonds How To Figure Gain or LossFair market value. When can i file my 2011 taxes Debt paid off. When can i file my 2011 taxes Payment of cash. When can i file my 2011 taxes Special Rules for Mutual Funds Nontaxable TradesLike-Kind Exchanges Corporate Stocks Exchange of Shares In One Mutual Fund For Shares In Another Mutual Fund Insurance Policies and Annuities U. When can i file my 2011 taxes S. When can i file my 2011 taxes Treasury Notes or Bonds Transfers Between Spouses Related Party TransactionsGain on Sale or Trade of Depreciable Property Capital Gains and LossesCapital or Ordinary Gain or Loss Holding Period Nonbusiness Bad Debts Short Sales Wash Sales Options Straddles Sales of Stock to ESOPs or Certain Cooperatives Rollover of Gain From Publicly Traded Securities Gains on Qualified Small Business Stock Exclusion of Gain From DC Zone Assets Reporting Capital Gains and LossesException 1. When can i file my 2011 taxes Exception 2. When can i file my 2011 taxes Section 1256 contracts and straddles. When can i file my 2011 taxes Market discount bonds. When can i file my 2011 taxes File Form 1099-B or Form 1099-S with the IRS. When can i file my 2011 taxes Capital Losses Capital Gain Tax Rates Special Rules for Traders in SecuritiesHow To Report Introduction This chapter explains the tax treatment of sales and trades of investment property. When can i file my 2011 taxes Investment property. When can i file my 2011 taxes   This is property that produces investment income. When can i file my 2011 taxes Examples include stocks, bonds, and Treasury bills and notes. When can i file my 2011 taxes Property used in a trade or business is not investment property. When can i file my 2011 taxes Form 1099-B. When can i file my 2011 taxes   If you sold property such as stocks, bonds, mutual funds, or certain commodities through a broker during the year, you should receive, for each sale, a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or substitute statement, from the broker. When can i file my 2011 taxes You should receive the statement by February 15 of the next year. When can i file my 2011 taxes It will show the gross proceeds from the sale. When can i file my 2011 taxes The IRS will also get a copy of Form 1099-B from the broker. When can i file my 2011 taxes   Use Form 1099-B (or substitute statement received from your broker) to complete Form 8949. When can i file my 2011 taxes If you sold a covered security in 2013, your broker will send you a Form 1099-B (or substitute statement) that shows your basis. When can i file my 2011 taxes This will help you complete Form 8949. When can i file my 2011 taxes Generally, a covered security is a security you acquired after 2010, with certain exceptions explained in the Instructions for Form 8949. When can i file my 2011 taxes    For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in this chapter. When can i file my 2011 taxes Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). When can i file my 2011 taxes Nominees. When can i file my 2011 taxes   If someone receives gross proceeds as a nominee for you, that person will give you a Form 1099-B, which will show gross proceeds received on your behalf. When can i file my 2011 taxes   If you receive a Form 1099-B that includes gross proceeds belonging to another person, see Nominees , later under Reporting Capital Gains and Losses for more information. When can i file my 2011 taxes Other property transactions. When can i file my 2011 taxes   Certain transfers of property are discussed in other IRS publications. When can i file my 2011 taxes These include: Sale of your main home, discussed in Publication 523, Selling Your Home; Installment sales, covered in Publication 537; Various types of transactions involving business property, discussed in Publication 544, Sales and Other Dispositions of Assets; Transfers of property at death, covered in Publication 559; and Disposition of an interest in a passive activity, discussed in Publication 925. When can i file my 2011 taxes Topics - This chapter discusses: What Is a Sale or Trade? , Basis of Investment Property , Adjusted Basis , How To Figure Gain or Loss , Nontaxable trades , Transfers Between Spouses , Related Party Transactions , Capital Gains and Losses , Reporting Capital Gains and Losses , and Special Rules for Traders in Securities . When can i file my 2011 taxes Useful Items - You may want to see: Publication 551 Basis of Assets Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 6781 Gains and Losses From Section 1256 Contracts and Straddles 8582 Passive Activity Loss Limitations 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5, How To Get Tax Help , for information about getting these publications and forms. When can i file my 2011 taxes What Is a Sale or Trade? This section explains what is a sale or trade. When can i file my 2011 taxes It also explains certain transactions and events that are treated as sales or trades. When can i file my 2011 taxes A sale is generally a transfer of property for money or a mortgage, note, or other promise to pay money. When can i file my 2011 taxes A trade is a transfer of property for other property or services, and may be taxed in the same way as a sale. When can i file my 2011 taxes Sale and purchase. When can i file my 2011 taxes   Ordinarily, a transaction is not a trade when you voluntarily sell property for cash and immediately buy similar property to replace it. When can i file my 2011 taxes The sale and purchase are two separate transactions. When can i file my 2011 taxes But see Like-Kind Exchanges under Nontaxable Trades, later. When can i file my 2011 taxes Redemption of stock. When can i file my 2011 taxes   A redemption of stock is treated as a sale or trade and is subject to the capital gain or loss provisions unless the redemption is a dividend or other distribution on stock. When can i file my 2011 taxes Dividend versus sale or trade. When can i file my 2011 taxes   Whether a redemption is treated as a sale, trade, dividend, or other distribution depends on the circumstances in each case. When can i file my 2011 taxes Both direct and indirect ownership of stock will be considered. When can i file my 2011 taxes The redemption is treated as a sale or trade of stock if: The redemption is not essentially equivalent to a dividend — see Dividends and Other Distributions in chapter 1, There is a substantially disproportionate redemption of stock, There is a complete redemption of all the stock of the corporation owned by the shareholder, or The redemption is a distribution in partial liquidation of a corporation. When can i file my 2011 taxes Redemption or retirement of bonds. When can i file my 2011 taxes   A redemption or retirement of bonds or notes at their maturity generally is treated as a sale or trade. When can i file my 2011 taxes See Stocks, stock rights, and bonds and Discounted Debt Instruments under Capital or Ordinary Gain or Loss, later. When can i file my 2011 taxes   In addition, a significant modification of a bond is treated as a trade of the original bond for a new bond. When can i file my 2011 taxes For details, see Regulations section 1. When can i file my 2011 taxes 1001-3. When can i file my 2011 taxes Surrender of stock. When can i file my 2011 taxes   A surrender of stock by a dominant shareholder who retains ownership of more than half of the corporation's voting shares is treated as a contribution to capital rather than as an immediate loss deductible from taxable income. When can i file my 2011 taxes The surrendering shareholder must reallocate his or her basis in the surrendered shares to the shares he or she retains. When can i file my 2011 taxes Trade of investment property for an annuity. When can i file my 2011 taxes   The transfer of investment property to a corporation, trust, fund, foundation, or other organization, in exchange for a fixed annuity contract that will make guaranteed annual payments to you for life, is a taxable trade. When can i file my 2011 taxes If the present value of the annuity is more than your basis in the property traded, you have a taxable gain in the year of the trade. When can i file my 2011 taxes Figure the present value of the annuity according to factors used by commercial insurance companies issuing annuities. When can i file my 2011 taxes Transfer by inheritance. When can i file my 2011 taxes   The transfer of property of a decedent to the executor or administrator of the estate, or to the heirs or beneficiaries, is not a sale or other disposition. When can i file my 2011 taxes No taxable gain or deductible loss results from the transfer. When can i file my 2011 taxes Termination of certain rights and obligations. When can i file my 2011 taxes   The cancellation, lapse, expiration, or other termination of a right or obligation (other than a securities futures contract) with respect to property that is a capital asset (or that would be a capital asset if you acquired it) is treated as a sale. When can i file my 2011 taxes Any gain or loss is treated as a capital gain or loss. When can i file my 2011 taxes   This rule does not apply to the retirement of a debt instrument. When can i file my 2011 taxes See Redemption or retirement of bonds , earlier. When can i file my 2011 taxes Worthless Securities Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became completely worthless during the tax year are treated as though they were sold on the last day of the tax year. When can i file my 2011 taxes This affects whether your capital loss is long term or short term. When can i file my 2011 taxes See Holding Period , later. When can i file my 2011 taxes Worthless securities also include securities that you abandon after March 12, 2008. When can i file my 2011 taxes To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it. When can i file my 2011 taxes All the facts and circumstances determine whether the transaction is properly characterized as an abandonment or other type of transaction, such as an actual sale or exchange, contribution to capital, dividend, or gift. When can i file my 2011 taxes If you are a cash basis taxpayer and make payments on a negotiable promissory note that you issued for stock that became worthless, you can deduct these payments as losses in the years you actually make the payments. When can i file my 2011 taxes Do not deduct them in the year the stock became worthless. When can i file my 2011 taxes How to report loss. When can i file my 2011 taxes   Report worthless securities in Form 8949, Part I or Part II, whichever applies. When can i file my 2011 taxes    Report your worthless securities transactions on Form 8949 with the correct box checked for these transactions. When can i file my 2011 taxes See Form 8949 and the Instructions for Form 8949. When can i file my 2011 taxes Filing a claim for refund. When can i file my 2011 taxes   If you do not claim a loss for a worthless security on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the loss. When can i file my 2011 taxes You must use Form 1040X, Amended U. When can i file my 2011 taxes S. When can i file my 2011 taxes Individual Income Tax Return, to amend your return for the year the security became worthless. When can i file my 2011 taxes You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. When can i file my 2011 taxes (Claims not due to worthless securities or bad debts generally must be filed within 3 years from the date a return is filed, or 2 years from the date the tax is paid, whichever is later. When can i file my 2011 taxes ) For more information about filing a claim, see Publication 556. When can i file my 2011 taxes Constructive Sales of Appreciated Financial Positions You are treated as having made a constructive sale when you enter into certain transactions involving an appreciated financial position (defined later) in stock, a partnership interest, or certain debt instruments. When can i file my 2011 taxes You must recognize gain as if the position were disposed of at its fair market value on the date of the constructive sale. When can i file my 2011 taxes This gives you a new holding period for the position that begins on the date of the constructive sale. When can i file my 2011 taxes Then, when you close the transaction, you reduce your gain (or increase your loss) by the gain recognized on the constructive sale. When can i file my 2011 taxes Constructive sale. When can i file my 2011 taxes   You are treated as having made a constructive sale of an appreciated financial position if you: Enter into a short sale of the same or substantially identical property, Enter into an offsetting notional principal contract relating to the same or substantially identical property, Enter into a futures or forward contract to deliver the same or substantially identical property (including a forward contract that provides for cash settlement), or Acquire the same or substantially identical property (if the appreciated financial position is a short sale, an offsetting notional principal contract, or a futures or forward contract). When can i file my 2011 taxes   You are also treated as having made a constructive sale of an appreciated financial position if a person related to you enters into a transaction described above with a view toward avoiding the constructive sale treatment. When can i file my 2011 taxes For this purpose, a related person is any related party described under Related Party Transactions , later in this chapter. When can i file my 2011 taxes Exception for nonmarketable securities. When can i file my 2011 taxes   You are not treated as having made a constructive sale solely because you entered into a contract for sale of any stock, debt instrument, or partnership interest that is not a marketable security if it settles within 1 year of the date you enter into it. When can i file my 2011 taxes Exception for certain closed transactions. When can i file my 2011 taxes   Do not treat a transaction as a constructive sale if all of the following are true. When can i file my 2011 taxes You closed the transaction on or before the 30th day after the end of your tax year. When can i file my 2011 taxes You held the appreciated financial position throughout the 60-day period beginning on the date you closed the transaction. When can i file my 2011 taxes Your risk of loss was not reduced at any time during that 60-day period by holding certain other positions. When can i file my 2011 taxes   If a closed transaction is reestablished in a substantially similar position during the 60-day period beginning on the date the first transaction was closed, this exception still applies if the reestablished position is closed before the 30th day after the end of your tax year in which the first transaction was closed and, after that closing, (2) and (3) above are true. When can i file my 2011 taxes   This exception also applies to successive short sales of an entire appreciated financial position. When can i file my 2011 taxes For more information, see Revenue Ruling 2003-1 in Internal Revenue Bulletin 2003-3. When can i file my 2011 taxes This bulletin is available at www. When can i file my 2011 taxes irs. When can i file my 2011 taxes gov/pub/irs-irbs/irb03-03. When can i file my 2011 taxes pdf. When can i file my 2011 taxes Appreciated financial position. When can i file my 2011 taxes   This is any interest in stock, a partnership interest, or a debt instrument (including a futures or forward contract, a short sale, or an option) if disposing of the interest would result in a gain. When can i file my 2011 taxes Exceptions. When can i file my 2011 taxes   An appreciated financial position does not include the following. When can i file my 2011 taxes Any position from which all of the appreciation is accounted for under marked-to-market rules, including section 1256 contracts (described later under Section 1256 Contracts Marked to Market ). When can i file my 2011 taxes Any position in a debt instrument if: The position unconditionally entitles the holder to receive a specified principal amount, The interest payments (or other similar amounts) with respect to the position are payable at a fixed rate or a variable rate described in Regulations section 1. When can i file my 2011 taxes 860G-1(a)(3), and The position is not convertible, either directly or indirectly, into stock of the issuer (or any related person). When can i file my 2011 taxes Any hedge with respect to a position described in (2). When can i file my 2011 taxes Certain trust instruments treated as stock. When can i file my 2011 taxes   For the constructive sale rules, an interest in an actively traded trust is treated as stock unless substantially all of the value of the property held by the trust is debt that qualifies for the exception to the definition of an appreciated financial position (explained in (2) above). When can i file my 2011 taxes Sale of appreciated financial position. When can i file my 2011 taxes   A transaction treated as a constructive sale of an appreciated financial position is not treated as a constructive sale of any other appreciated financial position, as long as you continue to hold the original position. When can i file my 2011 taxes However, if you hold another appreciated financial position and dispose of the original position before closing the transaction that resulted in the constructive sale, you are treated as if, at the same time, you constructively sold the other appreciated financial position. When can i file my 2011 taxes Section 1256 Contracts Marked to Market If you hold a section 1256 contract at the end of the tax year, you generally must treat it as sold at its fair market value on the last business day of the tax year. When can i file my 2011 taxes Section 1256 Contract A section 1256 contract is any: Regulated futures contract, Foreign currency contract, Nonequity option, Dealer equity option, or Dealer securities futures contract. When can i file my 2011 taxes Exceptions. When can i file my 2011 taxes   A section 1256 contract does not include: Interest rate swaps, Currency swaps, Basis swaps, Interest rate caps, Interest rate floors, Commodity swaps, Equity swaps, Equity index swaps, Credit default swaps, or Similar agreements. When can i file my 2011 taxes For more details, including definitions of these terms, see section 1256. When can i file my 2011 taxes Regulated futures contract. When can i file my 2011 taxes   This is a contract that: Provides that amounts which must be deposited to, or can be withdrawn from, your margin account depend on daily market conditions (a system of marking to market), and Is traded on, or subject to the rules of, a qualified board of exchange. When can i file my 2011 taxes A qualified board of exchange is a domestic board of trade designated as a contract market by the Commodity Futures Trading Commission, any board of trade or exchange approved by the Secretary of the Treasury, or a national securities exchange registered with the Securities and Exchange Commission. When can i file my 2011 taxes Foreign currency contract. When can i file my 2011 taxes   This is a contract that: Requires delivery of a foreign currency that has positions traded through regulated futures contracts (or settlement of which depends on the value of that type of foreign currency), Is traded in the interbank market, and Is entered into at arm's length at a price determined by reference to the price in the interbank market. When can i file my 2011 taxes   Bank forward contracts with maturity dates longer than the maturities ordinarily available for regulated futures contracts are considered to meet the definition of a foreign currency contract if the above three conditions are satisfied. When can i file my 2011 taxes   Special rules apply to certain foreign currency transactions. When can i file my 2011 taxes These transactions may result in ordinary gain or loss treatment. When can i file my 2011 taxes For details, see Internal Revenue Code section 988 and Regulations sections 1. When can i file my 2011 taxes 988-1(a)(7) and 1. When can i file my 2011 taxes 988-3. When can i file my 2011 taxes Nonequity option. When can i file my 2011 taxes   This is any listed option (defined later) that is not an equity option. When can i file my 2011 taxes Nonequity options include debt options, commodity futures options, currency options, and broad-based stock index options. When can i file my 2011 taxes A broad-based stock index is based on the value of a group of diversified stocks or securities (such as the Standard and Poor's 500 index). When can i file my 2011 taxes Warrants based on a stock index that are economically, substantially identical in all material respects to options based on a stock index are treated as options based on a stock index. When can i file my 2011 taxes Cash-settled options. When can i file my 2011 taxes   Cash-settled options based on a stock index and either traded on or subject to the rules of a qualified board of exchange are nonequity options if the Securities and Exchange Commission (SEC) determines that the stock index is broad based. When can i file my 2011 taxes   This rule does not apply to options established before the SEC determines that the stock index is broad based. When can i file my 2011 taxes Listed option. When can i file my 2011 taxes   This is any option traded on, or subject to the rules of, a qualified board or exchange (as discussed earlier under Regulated futures contract). When can i file my 2011 taxes A listed option, however, does not include an option that is a right to acquire stock from the issuer. When can i file my 2011 taxes Dealer equity option. When can i file my 2011 taxes   This is any listed option that, for an options dealer: Is an equity option, Is bought or granted by that dealer in the normal course of the dealer's business activity of dealing in options, and Is listed on the qualified board of exchange where that dealer is registered. When can i file my 2011 taxes   An “options dealer” is any person registered with an appropriate national securities exchange as a market maker or specialist in listed options. When can i file my 2011 taxes Equity option. When can i file my 2011 taxes   This is any option: To buy or sell stock, or That is valued directly or indirectly by reference to any stock or narrow-based security index. When can i file my 2011 taxes  Equity options include options on a group of stocks only if the group is a narrow-based stock index. When can i file my 2011 taxes Dealer securities futures contract. When can i file my 2011 taxes   For any dealer in securities futures contracts or options on those contracts, this is a securities futures contract (or option on such a contract) that: Is entered into by the dealer (or, in the case of an option, is purchased or granted by the dealer) in the normal course of the dealer's activity of dealing in this type of contract (or option), and Is traded on a qualified board or exchange (as defined under Regulated futures contract , earlier). When can i file my 2011 taxes A securities futures contract that is not a dealer securities futures contract is treated as described later under Securities Futures Contracts . When can i file my 2011 taxes Marked-to-Market Rules A section 1256 contract that you hold at the end of the tax year will generally be treated as sold at its fair market value on the last business day of the tax year, and you must recognize any gain or loss that results. When can i file my 2011 taxes That gain or loss is taken into account in figuring your gain or loss when you later dispose of the contract, as shown in the example under 60/40 rule, below. When can i file my 2011 taxes Hedging exception. When can i file my 2011 taxes   The marked-to-market rules do not apply to hedging transactions. When can i file my 2011 taxes See Hedging Transactions , later. When can i file my 2011 taxes 60/40 rule. When can i file my 2011 taxes   Under the marked-to-market system, 60% of your capital gain or loss will be treated as a long-term capital gain or loss, and 40% will be treated as a short-term capital gain or loss. When can i file my 2011 taxes This is true regardless of how long you actually held the property. When can i file my 2011 taxes Example. When can i file my 2011 taxes On June 22, 2012, you bought a regulated futures contract for $50,000. When can i file my 2011 taxes On December 31, 2012 (the last business day of your tax year), the fair market value of the contract was $57,000. When can i file my 2011 taxes You recognized a $7,000 gain on your 2012 tax return, treated as 60% long-term and 40% short-term capital gain. When can i file my 2011 taxes On February 1, 2013, you sold the contract for $56,000. When can i file my 2011 taxes Because you recognized a $7,000 gain on your 2012 return, you recognize a $1,000 loss ($57,000 − $56,000) on your 2013 tax return, treated as 60% long-term and 40% short-term capital loss. When can i file my 2011 taxes Limited partners or entrepreneurs. When can i file my 2011 taxes   The 60/40 rule does not apply to dealer equity options or dealer securities futures contracts that result in capital gain or loss allocable to limited partners or limited entrepreneurs (defined later under Hedging Transactions ). When can i file my 2011 taxes Instead, these gains or losses are treated as short term. When can i file my 2011 taxes Terminations and transfers. When can i file my 2011 taxes   The marked-to-market rules also apply if your obligation or rights under section 1256 contracts are terminated or transferred during the tax year. When can i file my 2011 taxes In this case, use the fair market value of each section 1256 contract at the time of termination or transfer to determine the gain or loss. When can i file my 2011 taxes Terminations or transfers may result from any offsetting, delivery, exercise, assignment, or lapse of your obligation or rights under section 1256 contracts. When can i file my 2011 taxes Loss carryback election. When can i file my 2011 taxes   An individual having a net section 1256 contracts loss (defined later), generally can elect to carry this loss back 3 years instead of carrying it over to the next year. When can i file my 2011 taxes See How To Report , later, for information about reporting this election on your return. When can i file my 2011 taxes   The loss carried back to any year under this election cannot be more than the net section 1256 contracts gain in that year. When can i file my 2011 taxes In addition, the amount of loss carried back to an earlier tax year cannot increase or produce a net operating loss for that year. When can i file my 2011 taxes   The loss is carried to the earliest carryback year first, and any unabsorbed loss amount can then be carried to each of the next 2 tax years. When can i file my 2011 taxes In each carryback year, treat 60% of the carryback amount as a long-term capital loss and 40% as a short-term capital loss from section 1256 contracts. When can i file my 2011 taxes   If only a portion of the net section 1256 contracts loss is absorbed by carrying the loss back, the unabsorbed portion can be carried forward, under the capital loss carryover rules, to the year following the loss. When can i file my 2011 taxes (See Capital Losses under Reporting Capital Gains and Losses, later. When can i file my 2011 taxes ) Figure your capital loss carryover as if, for the loss year, you had an additional short-term capital gain of 40% of the amount of net section 1256 contracts loss absorbed in the carryback years and an additional long-term capital gain of 60% of the absorbed loss. When can i file my 2011 taxes In the carryover year, treat any capital loss carryover from losses on section 1256 contracts as if it were a loss from section 1256 contracts for that year. When can i file my 2011 taxes Net section 1256 contracts loss. When can i file my 2011 taxes   This loss is the lesser of: The net capital loss for your tax year determined by taking into account only the gains and losses from section 1256 contracts, or The capital loss carryover to the next tax year determined without this election. When can i file my 2011 taxes Net section 1256 contracts gain. When can i file my 2011 taxes   This gain is the lesser of: The capital gain net income for the carryback year determined by taking into account only gains and losses from section 1256 contracts, or The capital gain net income for that year. When can i file my 2011 taxes  Figure your net section 1256 contracts gain for any carryback year without regard to the net section 1256 contracts loss for the loss year or any later tax year. When can i file my 2011 taxes Traders in section 1256 contracts. When can i file my 2011 taxes   Gain or loss from the trading of section 1256 contracts is capital gain or loss subject to the marked-to-market rules. When can i file my 2011 taxes However, this does not apply to contracts held for purposes of hedging property if any loss from the property would be an ordinary loss. When can i file my 2011 taxes Treatment of underlying property. When can i file my 2011 taxes   The determination of whether an individual's gain or loss from any property is ordinary or capital gain or loss is made without regard to the fact that the individual is actively engaged in dealing in or trading section 1256 contracts related to that property. When can i file my 2011 taxes How To Report If you disposed of regulated futures or foreign currency contracts in 2013 (or had unrealized profit or loss on these contracts that were open at the end of 2012 or 2013), you should receive Form 1099-B, or substitute statement, from your broker. When can i file my 2011 taxes Form 6781. When can i file my 2011 taxes   Use Part I of Form 6781 to report your gains and losses from all section 1256 contracts that are open at the end of the year or that were closed out during the year. When can i file my 2011 taxes This includes the amount shown in box 10 of Form 1099-B. When can i file my 2011 taxes Then enter the net amount of these gains and losses on Schedule D (Form 1040), line 4 or line 11, as appropriate. When can i file my 2011 taxes Include a copy of Form 6781 with your income tax return. When can i file my 2011 taxes   If the Form 1099-B you receive includes a straddle or hedging transaction, defined later, it may be necessary to show certain adjustments on Form 6781. When can i file my 2011 taxes Follow the Form 6781 instructions for completing Part I. When can i file my 2011 taxes Loss carryback election. When can i file my 2011 taxes   To carry back your loss under the election procedures described earlier, file Form 1040X or Form 1045, Application for Tentative Refund, for the year to which you are carrying the loss with an amended Form 6781 and an amended Schedule D (Form 1040) attached. When can i file my 2011 taxes Follow the instructions for completing Form 6781 for the loss year to make this election. When can i file my 2011 taxes Hedging Transactions The marked-to-market rules, described earlier, do not apply to hedging transactions. When can i file my 2011 taxes A transaction is a hedging transaction if both of the following conditions are met. When can i file my 2011 taxes You entered into the transaction in the normal course of your trade or business primarily to manage the risk of: Price changes or currency fluctuations on ordinary property you hold (or will hold), or Interest rate or price changes, or currency fluctuations, on your current or future borrowings or ordinary obligations. When can i file my 2011 taxes You clearly identified the transaction as being a hedging transaction before the close of the day on which you entered into it. When can i file my 2011 taxes This hedging transaction exception does not apply to transactions entered into by or for any syndicate. When can i file my 2011 taxes A syndicate is a partnership, S corporation, or other entity (other than a regular corporation) that allocates more than 35% of its losses to limited partners or limited entrepreneurs. When can i file my 2011 taxes A limited entrepreneur is a person who has an interest in an enterprise (but not as a limited partner) and who does not actively participate in its management. When can i file my 2011 taxes However, an interest is not considered held by a limited partner or entrepreneur if the interest holder actively participates (or did so for at least 5 full years) in the management of the entity, or is the spouse, child (including a legally adopted child), grandchild, or parent of an individual who actively participates in the management of the entity. When can i file my 2011 taxes Hedging loss limit. When can i file my 2011 taxes   If you are a limited partner or entrepreneur in a syndicate, the amount of a hedging loss you can claim is limited. When can i file my 2011 taxes A “hedging loss” is the amount by which the allowable deductions in a tax year that resulted from a hedging transaction (determined without regard to the limit) are more than the income received or accrued during the tax year from this transaction. When can i file my 2011 taxes   Any hedging loss allocated to you for the tax year is limited to your taxable income for that year from the trade or business in which the hedging transaction occurred. When can i file my 2011 taxes Ignore any hedging transaction items in determining this taxable income. When can i file my 2011 taxes If you have a hedging loss that is disallowed because of this limit, you can carry it over to the next tax year as a deduction resulting from a hedging transaction. When can i file my 2011 taxes   If the hedging transaction relates to property other than stock or securities, the limit on hedging losses applies if the limited partner or entrepreneur is an individual. When can i file my 2011 taxes   The limit on hedging losses does not apply to any hedging loss to the extent that it is more than all your unrecognized gains from hedging transactions at the end of the tax year that are from the trade or business in which the hedging transaction occurred. When can i file my 2011 taxes The term “unrecognized gain” has the same meaning as defined under Loss Deferral Rules in Straddles, later. When can i file my 2011 taxes Sale of property used in a hedge. When can i file my 2011 taxes   Once you identify personal property as being part of a hedging transaction, you must treat gain from its sale or exchange as ordinary income, not capital gain. When can i file my 2011 taxes Self-Employment Income Gains and losses derived in the ordinary course of a commodity or option dealer's trading in section 1256 contracts and property related to these contracts are included in net earnings from self-employment. When can i file my 2011 taxes See the Instructions for Schedule SE (Form 1040). When can i file my 2011 taxes In addition, the rules relating to contributions to self-employment retirement plans apply. When can i file my 2011 taxes For information on retirement plan contributions, see Publication 560 and Publication 590. When can i file my 2011 taxes Basis of Investment Property Basis is a way of measuring your investment in property for tax purposes. When can i file my 2011 taxes You must know the basis of your property to determine whether you have a gain or loss on its sale or other disposition. When can i file my 2011 taxes Investment property you buy normally has an original basis equal to its cost. When can i file my 2011 taxes If you get property in some way other than buying it, such as by gift or inheritance, its fair market value may be important in figuring the basis. When can i file my 2011 taxes Cost Basis The basis of property you buy is usually its cost. When can i file my 2011 taxes The cost is the amount you pay in cash, debt obligations, or other property or services. When can i file my 2011 taxes Unstated interest. When can i file my 2011 taxes   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price, minus the amount considered to be unstated interest. When can i file my 2011 taxes You generally have unstated interest if your interest rate is less than the applicable federal rate. When can i file my 2011 taxes For more information, see Unstated Interest and Original Issue Discount (OID) in Publication 537. When can i file my 2011 taxes Basis Other Than Cost There are times when you must use a basis other than cost. When can i file my 2011 taxes In these cases, you may need to know the property's fair market value or the adjusted basis of the previous owner. When can i file my 2011 taxes Fair market value. When can i file my 2011 taxes   This is the price at which the property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. When can i file my 2011 taxes Sales of similar property, around the same date, may be helpful in figuring fair market value. When can i file my 2011 taxes Property Received for Services If you receive investment property for services, you must include the property's fair market value in income. When can i file my 2011 taxes The amount you include in income then becomes your basis in the property. When can i file my 2011 taxes If the services were performed for a price that was agreed to beforehand, this price will be accepted as the fair market value of the property if there is no evidence to the contrary. When can i file my 2011 taxes Restricted property. When can i file my 2011 taxes   If you receive, as payment for services, property that is subject to certain restrictions, your basis in the property generally is its fair market value when it becomes substantially vested. When can i file my 2011 taxes Property becomes substantially vested when it is transferable or is no longer subject to substantial risk of forfeiture, whichever happens first. When can i file my 2011 taxes See Restricted Property in Publication 525 for more information. When can i file my 2011 taxes Bargain purchases. When can i file my 2011 taxes   If you buy investment property at less than fair market value, as payment for services, you must include the difference in income. When can i file my 2011 taxes Your basis in the property is the price you pay plus the amount you include in income. When can i file my 2011 taxes Property Received in Taxable Trades If you received investment property in trade for other property, the basis of the new property is its fair market value at the time of the trade unless you received the property in a nontaxable trade. When can i file my 2011 taxes Example. When can i file my 2011 taxes You trade A Company stock for B Company stock having a fair market value of $1,200. When can i file my 2011 taxes If the adjusted basis of the A Company stock is less than $1,200, you have a taxable gain on the trade. When can i file my 2011 taxes If the adjusted basis of the A Company stock is more than $1,200, you have a deductible loss on the trade. When can i file my 2011 taxes The basis of your B Company stock is $1,200. When can i file my 2011 taxes If you later sell the B Company stock for $1,300, you will have a gain of $100. When can i file my 2011 taxes Property Received in Nontaxable Trades If you have a nontaxable trade, you do not recognize gain or loss until you dispose of the property you received in the trade. When can i file my 2011 taxes See Nontaxable Trades , later. When can i file my 2011 taxes The basis of property you received in a nontaxable or partly nontaxable trade is generally the same as the adjusted basis of the property you gave up. When can i file my 2011 taxes Increase this amount by any cash you paid, additional costs you had, and any gain recognized. When can i file my 2011 taxes Reduce this amount by any cash or unlike property you received, any loss recognized, and any liability of yours that was assumed or treated as assumed. When can i file my 2011 taxes Property Received From Your Spouse If property is transferred to you from your spouse (or former spouse, if the transfer is incident to your divorce), your basis is the same as your spouse's or former spouse's adjusted basis just before the transfer. When can i file my 2011 taxes See Transfers Between Spouses , later. When can i file my 2011 taxes Recordkeeping. When can i file my 2011 taxes The transferor must give you the records necessary to determine the adjusted basis and holding period of the property as of the date of the transfer. When can i file my 2011 taxes Property Received as a Gift To figure your basis in property that you received as a gift, you must know its adjusted basis to the donor just before it was given to you, its fair market value at the time it was given to you, the amount of any gift tax paid on it, and the date it was given to you. When can i file my 2011 taxes Fair market value less than donor's adjusted basis. When can i file my 2011 taxes   If the fair market value of the property at the time of the gift was less than the donor's adjusted basis just before the gift, your basis for gain on its sale or other disposition is the same as the donor's adjusted basis plus or minus any required adjustments to basis during the period you hold the property. When can i file my 2011 taxes Your basis for loss is its fair market value at the time of the gift plus or minus any required adjustments to basis during the period you hold the property. When can i file my 2011 taxes No gain or loss. When can i file my 2011 taxes   If you use the basis for figuring a gain and the result is a loss, and then use the basis for figuring a loss and the result is a gain, you will have neither a gain nor a loss. When can i file my 2011 taxes Example. When can i file my 2011 taxes You receive a gift of investment property having an adjusted basis of $10,000 at the time of the gift. When can i file my 2011 taxes The fair market value at the time of the gift is $9,000. When can i file my 2011 taxes You later sell the property for $9,500. When can i file my 2011 taxes You have neither gain nor loss. When can i file my 2011 taxes Your basis for figuring gain is $10,000, and $9,500 minus $10,000 results in a $500 loss. When can i file my 2011 taxes Your basis for figuring loss is $9,000, and $9,500 minus $9,000 results in a $500 gain. When can i file my 2011 taxes Fair market value equal to or more than donor's adjusted basis. When can i file my 2011 taxes   If the fair market value of the property at the time of the gift was equal to or more than the donor's adjusted basis just before the gift, your basis for gain or loss on its sale or other disposition is the donor's adjusted basis plus or minus any required adjustments to basis during the period you hold the property. When can i file my 2011 taxes Also, you may be allowed to add to the donor's adjusted basis all or part of any gift tax paid, depending on the date of the gift. When can i file my 2011 taxes Gift received before 1977. When can i file my 2011 taxes   If you received property as a gift before 1977, your basis in the property is the donor's adjusted basis increased by the total gift tax paid on the gift. When can i file my 2011 taxes However, your basis cannot be more than the fair market value of the gift at the time it was given to you. When can i file my 2011 taxes Example 1. When can i file my 2011 taxes You were given XYZ Company stock in 1976. When can i file my 2011 taxes At the time of the gift, the stock had a fair market value of $21,000. When can i file my 2011 taxes The donor's adjusted basis was $20,000. When can i file my 2011 taxes The donor paid a gift tax of $500 on the gift. When can i file my 2011 taxes Your basis for gain or loss is $20,500, the donor's adjusted basis plus the amount of gift tax paid. When can i file my 2011 taxes Example 2. When can i file my 2011 taxes The facts are the same as in Example 1 except that the gift tax paid was $1,500. When can i file my 2011 taxes Your basis is $21,000, the donor's adjusted basis plus the gift tax paid, but limited to the fair market value of the stock at the time of the gift. When can i file my 2011 taxes Gift received after 1976. When can i file my 2011 taxes   If you received property as a gift after 1976, your basis is the donor's adjusted basis increased by the part of the gift tax paid that was for the net increase in value of the gift. When can i file my 2011 taxes You figure this part by multiplying the gift tax paid on the gift by a fraction. When can i file my 2011 taxes The numerator (top part) is the net increase in value of the gift and the denominator (bottom part) is the amount of the gift. When can i file my 2011 taxes   The net increase in value of the gift is the fair market value of the gift minus the donor's adjusted basis. When can i file my 2011 taxes The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. When can i file my 2011 taxes Example. When can i file my 2011 taxes In 2013, you received a gift of property from your mother. When can i file my 2011 taxes At the time of the gift, the property had a fair market value of $101,000 and an adjusted basis to her of $40,000. When can i file my 2011 taxes The amount of the gift for gift tax purposes was $87,000 ($101,000 minus the $14,000 annual exclusion), and your mother paid a gift tax of $21,000. When can i file my 2011 taxes You figure your basis in the following way: Fair market value $101,000 Minus: Adjusted basis 40,000 Net increase in value of gift $61,000 Gift tax paid $21,000 Multiplied by . When can i file my 2011 taxes 701 ($61,000 ÷ $87,000) . When can i file my 2011 taxes 701 Gift tax due to net increase in value $14,721 Plus: Adjusted basis of property to  your mother 40,000 Your basis in the property $54,721 Part sale, part gift. When can i file my 2011 taxes   If you get property in a transfer that is partly a sale and partly a gift, your basis is the larger of the amount you paid for the property or the transferor's adjusted basis in the property at the time of the transfer. When can i file my 2011 taxes Add to that amount the amount of any gift tax paid on the gift, as described in the preceding discussion. When can i file my 2011 taxes For figuring loss, your basis is limited to the property's fair market value at the time of the transfer. When can i file my 2011 taxes Gift tax information. When can i file my 2011 taxes   For information on gift tax, see Publication 950, Introduction to Estate and Gift Taxes. When can i file my 2011 taxes For information on figuring the amount of gift tax to add to your basis, see Property Received as a Gift in Publication 551. When can i file my 2011 taxes Property Received as Inheritance Before or after 2010. When can i file my 2011 taxes   If you inherited property from a decedent who died before or after 2010, or who died in 2010 and the executor of the decedent's estate elected not to file Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent, your basis in that property generally is its fair market value (its appraised value on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return) on: The date of the decedent's death, or The later alternate valuation date if the estate qualifies for, and elects to use, alternate valuation. When can i file my 2011 taxes If no Form 706 was filed, use the appraised value on the date of death for state inheritance or transmission taxes. When can i file my 2011 taxes For stocks and bonds, if no Form 706 was filed and there are no state inheritance or transmission taxes, see the Form 706 instructions for figuring the fair market value of the stocks and bonds on the date of the decedent's death. When can i file my 2011 taxes Appreciated property you gave the decedent. When can i file my 2011 taxes   Your basis in certain appreciated property that you inherited is the decedent's adjusted basis in the property immediately before death rather than its fair market value. When can i file my 2011 taxes This applies to appreciated property that you or your spouse gave the decedent as a gift during the 1-year period ending on the date of death. When can i file my 2011 taxes Appreciated property is any property whose fair market value on the day you gave it to the decedent was more than its adjusted basis. When can i file my 2011 taxes More information. When can i file my 2011 taxes   See Publication 551 for more information on the basis of inherited property, including community property, property held by a surviving tenant in a joint tenancy or tenancy by the entirety, a qualified joint interest, and a farm or closely held business. When can i file my 2011 taxes Inherited in 2010 and executor elected to file Form 8939. When can i file my 2011 taxes   If you inherited property from a decedent who died in 2010 and the executor made the election to file Form 8939, see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to figure your basis. When can i file my 2011 taxes Adjusted Basis Before you can figure any gain or loss on a sale, exchange, or other disposition of property or figure allowable depreciation, depletion, or amortization, you usually must make certain adjustments (increases and decreases) to the basis of the property. When can i file my 2011 taxes The result of these adjustments to the basis is the adjusted basis. When can i file my 2011 taxes Adjustments to the basis of stocks and bonds are explained in the following discussion. When can i file my 2011 taxes For information about other adjustments to basis, see Publication 551. When can i file my 2011 taxes Stocks and Bonds The basis of stocks or bonds you own generally is the purchase price plus the costs of purchase, such as commissions and recording or transfer fees. When can i file my 2011 taxes If you acquired stock or bonds other than by purchase, your basis is usually determined by fair market value or the previous owner's adjusted basis as discussed earlier under Basis Other Than Cost . When can i file my 2011 taxes The basis of stock must be adjusted for certain events that occur after purchase. When can i file my 2011 taxes For example, if you receive more stock from nontaxable stock dividends or stock splits, you must reduce the basis of your original stock. When can i file my 2011 taxes You must also reduce your basis when you receive nondividend distributions (discussed in chapter 1). When can i file my 2011 taxes These distributions, up to the amount of your basis, are a nontaxable return of capital. When can i file my 2011 taxes The IRS partners with companies that offer Form 8949 and Schedule D (Form 1040) software that can import trades from many brokerage firms and accounting software to help you keep track of your adjusted basis in securities. When can i file my 2011 taxes To find out more, go to www. When can i file my 2011 taxes irs. When can i file my 2011 taxes gov/Filing/Filing-Options. When can i file my 2011 taxes Identifying stock or bonds sold. When can i file my 2011 taxes   If you can adequately identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stock or bonds. When can i file my 2011 taxes Adequate identification. When can i file my 2011 taxes   You will make an adequate identification if you show that certificates representing shares of stock from a lot that you bought on a certain date or for a certain price were delivered to your broker or other agent. When can i file my 2011 taxes Broker holds stock. When can i file my 2011 taxes   If you have left the stock certificates with your broker or other agent, you will make an adequate identification if you: Tell your broker or other agent the particular stock to be sold or transferred at the time of the sale or transfer, and Receive a written confirmation of this from your broker or other agent within a reasonable time. When can i file my 2011 taxes  Stock identified this way is the stock sold or transferred even if stock certificates from a different lot are delivered to the broker or other agent. When can i file my 2011 taxes Single stock certificate. When can i file my 2011 taxes   If you bought stock in different lots at different times and you hold a single stock certificate for this stock, you will make an adequate identification if you: Tell your broker or other agent the particular stock to be sold or transferred when you deliver the certificate to your broker or other agent, and Receive a written confirmation of this from your broker or other agent within a reasonable time. When can i file my 2011 taxes   If you sell part of the stock represented by a single certificate directly to the buyer instead of through a broker, you will make an adequate identification if you keep a written record of the particular stock that you intend to sell. When can i file my 2011 taxes Bonds. When can i file my 2011 taxes   These methods of identification also apply to bonds sold or transferred. When can i file my 2011 taxes Identification not possible. When can i file my 2011 taxes   If you buy and sell securities at various times in varying quantities and you cannot adequately identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. When can i file my 2011 taxes Except for certain mutual fund shares, discussed later, you cannot use the average price per share to figure gain or loss on the sale of the shares. When can i file my 2011 taxes Example. When can i file my 2011 taxes You bought 100 shares of stock of XYZ Corporation in 1998 for $10 a share. When can i file my 2011 taxes In January 1999 you bought another 200 shares for $11 a share. When can i file my 2011 taxes In July 1999 you gave your son 50 shares. When can i file my 2011 taxes In December 2001 you bought 100 shares for $9 a share. When can i file my 2011 taxes In April 2013 you sold 130 shares. When can i file my 2011 taxes You cannot identify the shares you disposed of, so you must use the stock you acquired first to figure the basis. When can i file my 2011 taxes The shares of stock you gave your son had a basis of $500 (50 × $10). When can i file my 2011 taxes You figure the basis of the 130 shares of stock you sold in 2013 as follows: 50 shares (50 × $10) balance of stock bought in 1998 $ 500 80 shares (80 × $11) stock bought in January 1999 880 Total basis of stock sold in 2013 $1,380 Shares in a mutual fund or REIT. When can i file my 2011 taxes    The basis of shares in a mutual fund (or other regulated investment company) or a real estate investment trust (REIT) is generally figured in the same way as the basis of other stock and usually includes any commissions or load charges paid for the purchase. When can i file my 2011 taxes Example. When can i file my 2011 taxes You bought 100 shares of Fund A for $10 a share. When can i file my 2011 taxes You paid a $50 commission to the broker for the purchase. When can i file my 2011 taxes Your cost basis for each share is $10. When can i file my 2011 taxes 50 ($1,050 ÷ 100). When can i file my 2011 taxes Commissions and load charges. When can i file my 2011 taxes   The fees and charges you pay to acquire or redeem shares of a mutual fund are not deductible. When can i file my 2011 taxes You can usually add acquisition fees and charges to your cost of the shares and thereby increase your basis. When can i file my 2011 taxes A fee paid to redeem the shares is usually a reduction in the redemption price (sales price). When can i file my 2011 taxes   You cannot add your entire acquisition fee or load charge to the cost of the mutual fund shares acquired if all of the following conditions apply. When can i file my 2011 taxes You get a reinvestment right because of the purchase of the shares or the payment of the fee or charge. When can i file my 2011 taxes You dispose of the shares within 90 days of the purchase date. When can i file my 2011 taxes You acquire new shares in the same mutual fund or another mutual fund, for which the fee or charge is reduced or waived because of the reinvestment right you got when you acquired the original shares. When can i file my 2011 taxes   The amount of the original fee or charge in excess of the reduction in (3) is added to the cost of the original shares. When can i file my 2011 taxes The rest of the original fee or charge is added to the cost basis of the new shares (unless all three conditions above also apply to the purchase of the new shares). When can i file my 2011 taxes Choosing average basis for mutual fund shares. When can i file my 2011 taxes   You can choose to use the average basis of mutual fund shares if you acquired the identical shares at various times and prices, or you acquired the shares after 2010 in connection with a dividend reinvestment plan, and left them on deposit in an account kept by a custodian or agent. When can i file my 2011 taxes The methods you can use to figure average basis are explained later. When can i file my 2011 taxes Undistributed capital gains. When can i file my 2011 taxes   If you had to include in your income any undistributed capital gains of the mutual fund or REIT, increase your basis in the stock by the difference between the amount you included and the amount of tax paid for you by the fund or REIT. When can i file my 2011 taxes See Undistributed capital gains of mutual funds and REITs under Capital Gain Distributions in chapter 1. When can i file my 2011 taxes Reinvestment right. When can i file my 2011 taxes   This is the right to acquire mutual fund shares in the same or another mutual fund without paying a fee or load charge, or by paying a reduced fee or load charge. When can i file my 2011 taxes      The original cost basis of mutual fund shares you acquire by reinvesting your distributions is the amount of the distributions used to purchase each full or fractional share. When can i file my 2011 taxes This rule applies even if the distribution is an exempt-interest dividend that you do not report as income. When can i file my 2011 taxes Table 4-1. When can i file my 2011 taxes This is a worksheet you can use to keep track of the adjusted basis of your mutual fund shares. When can i file my 2011 taxes Enter the cost per share when you acquire new shares and any adjustments to their basis when the adjustment occurs. When can i file my 2011 taxes This worksheet will help you figure the adjusted basis when you sell or redeem shares. When can i file my 2011 taxes Table 4-1. When can i file my 2011 taxes Mutual Fund Record Mutual Fund Acquired1 Adjustment to Basis Per Share Adjusted2 Basis Per Share Sold or redeemed Date Number of Shares Cost Per Share Date Number of Shares                                                                                                                                                                                                                                                                         1 Include share received from reinvestment of distributions. When can i file my 2011 taxes 2 Cost plus or minus adjustments. When can i file my 2011 taxes Automatic investment service. When can i file my 2011 taxes   If you participate in an automatic investment service, your basis for each share of stock, including fractional shares, bought by the bank or other agent is the purchase price plus a share of the broker's commission. When can i file my 2011 taxes Dividend reinvestment plans. When can i file my 2011 taxes   If you participate in a dividend reinvestment plan and receive stock from the corporation at a discount, your basis is the full fair market value of the stock on the dividend payment date. When can i file my 2011 taxes You must include the amount of the discount in your income. When can i file my 2011 taxes Public utilities. When can i file my 2011 taxes   If, before 1986, you excluded from income the value of stock you had received under a qualified public utility reinvestment plan, your basis in that stock is zero. When can i file my 2011 taxes Stock dividends. When can i file my 2011 taxes   Stock dividends are distributions made by a corporation of its own stock. When can i file my 2011 taxes Generally, stock dividends are not taxable to you. When can i file my 2011 taxes However, see Distributions of Stock and Stock Rights under Dividends and Other Distributions in chapter 1 for some exceptions. When can i file my 2011 taxes If the stock dividends are not taxable, you must divide your basis for the old stock between the old and new stock. When can i file my 2011 taxes New and old stock identical. When can i file my 2011 taxes   If the new stock you received as a nontaxable dividend is identical to the old stock on which the dividend was declared, divide the adjusted basis of the old stock by the number of shares of old and new stock. When can i file my 2011 taxes The result is your basis for each share of stock. When can i file my 2011 taxes Example 1. When can i file my 2011 taxes You owned one share of common stock that you bought for $45. When can i file my 2011 taxes The corporation distributed two new shares of common stock for each share held. When can i file my 2011 taxes You then had three shares of common stock. When can i file my 2011 taxes Your basis in each share is $15 ($45 ÷ 3). When can i file my 2011 taxes Example 2. When can i file my 2011 taxes You owned two shares of common stock. When can i file my 2011 taxes You bought one for $30 and the other for $45. When can i file my 2011 taxes The corporation distributed two new shares of common stock for each share held. When can i file my 2011 taxes You had six shares after the distribution—three with a basis of $10 each ($30 ÷ 3) and three with a basis of $15 each ($45 ÷ 3). When can i file my 2011 taxes New and old stock not identical. When can i file my 2011 taxes   If the new stock you received as a nontaxable dividend is not identical to the old stock on which it was declared, the basis of the new stock is calculated differently. When can i file my 2011 taxes Divide the adjusted basis of the old stock between the old and the new stock in the ratio of the fair market value of each lot of stock to the total fair market value of both lots on the date of distribution of the new stock. When can i file my 2011 taxes Example. When can i file my 2011 taxes You bought a share of common stock for $100. When can i file my 2011 taxes Later, the corporation distributed a share of preferred stock for each share of common stock held. When can i file my 2011 taxes At the date of distribution, your common stock had a fair market value of $150 and the preferred stock had a fair market value of $50. When can i file my 2011 taxes You figure the basis of the old and new stock by dividing your $100 basis between them. When can i file my 2011 taxes The basis of your common stock is $75 (($150 ÷ $200) × $100), and the basis of the new preferred stock is $25 (($50 ÷ $200) × $100). When can i file my 2011 taxes Stock bought at various times. When can i file my 2011 taxes   Figure the basis of stock dividends received on stock you bought at various times and at different prices by allocating to each lot of stock the share of the stock dividends due to it. When can i file my 2011 taxes Taxable stock dividends. When can i file my 2011 taxes   If your stock dividend is taxable when you receive it, the basis of your new stock is its fair market value on the date of distribution. When can i file my 2011 taxes The basis of your old stock does not change. When can i file my 2011 taxes Stock splits. When can i file my 2011 taxes   Figure the basis of stock splits in the same way as stock dividends if identical stock is distributed on the stock held. When can i file my 2011 taxes Stock rights. When can i file my 2011 taxes   A stock right is a right to acquire a corporation's stock. When can i file my 2011 taxes It may be exercised, it may be sold if it has a market value, or it may expire. When can i file my 2011 taxes Stock rights are rarely taxable when you receive them. When can i file my 2011 taxes See Distributions of Stock and Stock Rights under Dividends and Other Distributions in chapter 1. When can i file my 2011 taxes Taxable stock rights. When can i file my 2011 taxes   If you receive stock rights that are taxable, the basis of the rights is their fair market value at the time of distribution. When can i file my 2011 taxes The basis of the old stock does not change. When can i file my 2011 taxes Nontaxable stock rights. When can i file my 2011 taxes   If you receive nontaxable stock rights and allow them to expire, they have no basis. When can i file my 2011 taxes   If you exercise or sell the nontaxable stock rights and if, at the time of distribution, the stock rights had a fair market value of 15% or more of the fair market value of the old stock, you must divide the adjusted basis of the old stock between the old stock and the stock rights. When can i file my 2011 taxes Use a ratio of the fair market value of each to the total fair market value of both at the time of distribution. When can i file my 2011 taxes   If the fair market value of the stock rights was less than 15%, their basis is zero. When can i file my 2011 taxes However, you can choose to divide the basis of the old stock between the old stock and the stock rights. When can i file my 2011 taxes To make the choice, attach a statement to your return for the year in which you received the rights, stating that you choose to divide the basis of the stock. When can i file my 2011 taxes Basis of new stock. When can i file my 2011 taxes   If you exercise the stock rights, the basis of the new stock is its cost plus the basis of the stock rights exercised. When can i file my 2011 taxes Example. When can i file my 2011 taxes You own 100 shares of ABC Company stock, which cost you $22 per share. When can i file my 2011 taxes The ABC Company gave you 10 nontaxable stock rights that would allow you to buy 10 more shares at $26 per share. When can i file my 2011 taxes At the time the stock rights were distributed, the stock had a market value of $30, not including the stock rights. When can i file my 2011 taxes Each stock right had a market value of $3. When can i file my 2011 taxes The market value of the stock rights was less than 15% of the market value of the stock, but you chose to divide the basis of your stock between the stock and the rights. When can i file my 2011 taxes You figure the basis of the rights and the basis of the old stock as follows: 100 shares × $22 = $2,200, basis of old stock   100 shares × $30 = $3,000, market value of old stock   10 rights × $3 = $30, market value of rights   ($3,000 ÷ $3,030) × $2,200 = $2,178. When can i file my 2011 taxes 22, new basis of old stock   ($30 ÷ $3,030) × $2,200 = $21. When can i file my 2011 taxes 78, basis of rights   If you sell the rights, the basis for figuring gain or loss is $2. When can i file my 2011 taxes 18 ($21. When can i file my 2011 taxes 78 ÷ 10) per right. When can i file my 2011 taxes If you exercise the rights, the basis of the stock you acquire is the price you pay ($26) plus the basis of the right exercised ($2. When can i file my 2011 taxes 18), or $28. When can i file my 2011 taxes 18 per share. When can i file my 2011 taxes The remaining basis of the old stock is $21. When can i file my 2011 taxes 78 per share. When can i file my 2011 taxes Investment property received in liquidation. When can i file my 2011 taxes   In general, if you receive investment property as a distribution in partial or complete liquidation of a corporation and if you recognize gain or loss when you acquire the property, your basis in the property is its fair market value at the time of the distribution. When can i file my 2011 taxes S corporation stock. When can i file my 2011 taxes   You must increase your basis in stock of an S corporation by your pro rata share of the following items. When can i file my 2011 taxes All income items of the S corporation, including tax-exempt income, that are separately stated and passed through to you as a shareholder. When can i file my 2011 taxes The nonseparately stated income of the S corporation. When can i file my 2011 taxes The amount of the deduction for depletion (other than oil and gas depletion) that is more than the basis of the property being depleted. When can i file my 2011 taxes   You must decrease your basis in stock of an S corporation by your pro rata share of the following items. When can i file my 2011 taxes Distributions by the S corporation that were not included in your income. When can i file my 2011 taxes All loss and deduction items of the S corporation that are separately stated and passed through to you. When can i file my 2011 taxes Any nonseparately stated loss of the S corporation. When can i file my 2011 taxes Any expense of the S corporation that is not deductible in figuring its taxable income and not properly chargeable to a capital account. When can i file my 2011 taxes The amount of your deduction for depletion of oil and gas wells to the extent the deduction is not more than your share of the adjusted basis of the wells. When can i file my 2011 taxes However, your basis in the stock cannot be reduced below zero. When can i file my 2011 taxes Specialized small business investment company stock or partnership interest. When can i file my 2011 taxes   If you bought this stock or interest as replacement property for publicly traded securities you sold at a gain, you must reduce the basis of the stock or interest by the amount of any postponed gain on that sale. When can i file my 2011 taxes See Rollover of Gain From Publicly Traded Securities , later. When can i file my 2011 taxes Qualified small business stock. When can i file my 2011 taxes   If you bought this stock as replacement property for other qualified small business stock you sold at a gain, you must reduce the basis of this replacement stock by the amount of any postponed gain on the earlier sale. When can i file my 2011 taxes See Gains on Qualified Small Business Stock , later. When can i file my 2011 taxes Short sales. When can i file my 2011 taxes   If you cannot deduct payments you make to a lender in lieu of dividends on stock used in a short sale, the amount you pay to the lender is a capital expense, and you must add it to the basis of the stock used to close the short sale. When can i file my 2011 taxes   See Payments in lieu of dividends , later, for information about deducting payments in lieu of dividends. When can i file my 2011 taxes Premiums on bonds. When can i file my 2011 taxes   If you buy a bond at a premium, the premium is treated as part of your basis in the bond. When can i file my 2011 taxes If you choose to amortize the premium paid on a taxable bond, you must reduce the basis of the bond by the amortized part of the premium each year over the life of the bond. When can i file my 2011 taxes   Although you cannot deduct the premium on a tax-exempt bond, you must amortize it to determine your adjusted basis in the bond. When can i file my 2011 taxes You must reduce the basis of the bond by the premium you amortized for the period you held the bond. When can i file my 2011 taxes   See Bond Premium Amortization in chapter 3 for more information. When can i file my 2011 taxes Market discount on bonds. When can i file my 2011 taxes   If you include market discount on a bond in income currently, increase the basis of your bond by the amount of market discount you include in your income. When can i file my 2011 taxes See Market Discount Bonds in chapter 1 for more information. When can i file my 2011 taxes Bonds purchased at par value. When can i file my 2011 taxes   A bond purchased at par value (face amount) has no premium or discount. When can i file my 2011 taxes When you sell or otherwise dispose of the bond, you figure the gain or loss by comparing the bond proceeds to the purchase price of the bond. When can i file my 2011 taxes Example. When can i file my 2011 taxes You purchased a bond several years ago for its par value of $10,000. When can i file my 2011 taxes You sold the bond this year for $10,100. When can i file my 2011 taxes You have a gain of $100. When can i file my 2011 taxes However, if you had sold the bond for $9,900, you would have a loss of $100. When can i file my 2011 taxes Acquisition discount on short-term obligations. When can i file my 2011 taxes   If you include acquisition discount on a short-term obligation in your income currently, increase the basis of the obligation by the amount of acquisition discount you include in your income. When can i file my 2011 taxes See Discount on Short-Term Obligations in chapter 1 for more information. When can i file my 2011 taxes Original issue discount (OID) on debt instruments. When can i file my 2011 taxes   Increase the basis of a debt instrument by the OID you include in your income. When can i file my 2011 taxes See Original Issue Discount (OID) in chapter 1. When can i file my 2011 taxes Discounted tax-exempt obligations. When can i file my 2011 taxes   OID on tax-exempt obligations is generally not taxable. When can i file my 2011 taxes However, when you dispose of a tax-exempt obligation issued after September 3, 1982, that you acquired after March 1, 1984, you must accrue OID on the obligation to determine its adjusted basis. When can i file my 2011 taxes The accrued OID is added to the basis of the obligation to determine your gain or loss. When can i file my 2011 taxes   For information on determining OID on a long-term obligation, see Debt Instruments Issued After July 1, 1982, and Before 1985 or Debt Instruments Issued After 1984, whichever applies, in Publication 1212 under Figuring OID on Long-Term Debt Instruments. When can i file my 2011 taxes   If the tax-exempt obligation has a maturity of 1 year or less, accrue OID under the rules for acquisition discount on short-term obligations. When can i file my 2011 taxes See Discount on Short-Term Obligations in chapter 1. When can i file my 2011 taxes Stripped tax-exempt obligation. When can i file my 2011 taxes   If you acquired a stripped tax-exempt bond or coupon after October 22, 1986, you must accrue OID on it to determine its adjusted basis when you dispose of it. When can i file my 2011 taxes For stripped tax-exempt bonds or coupons acquired after June 10, 1987, part of this OID may be taxable. When can i file my 2011 taxes You accrue the OID on these obligations in the manner described in chapter 1 under Stripped Bonds and Coupons . When can i file my 2011 taxes   Increase your basis in the stripped tax-exempt bond or coupon by the taxable and nontaxable accrued OID. When can i file my 2011 taxes Also increase your basis by the interest that accrued (but was not paid and was not previously reflected in your basis) before the date you sold the bond or coupon. When can i file my 2011 taxes In addition, for bonds acquired after June 10, 1987, add to your basis any accrued market discount not previously reflected in basis. When can i file my 2011 taxes How To Figure Gain or Loss You figure gain or loss on a sale or trade of property by comparing the amount you realize with the adjusted basis of the property. When can i file my 2011 taxes Gain. When can i file my 2011 taxes   If the amount you realize from a sale or trade is more than the adjusted basis of the property you transfer, the difference is a gain. When can i file my 2011 taxes Loss. When can i file my 2011 taxes   If the adjusted basis of the property you transfer is more than the amount you realize, the difference is a loss. When can i file my 2011 taxes Amount realized. When can i file my 2011 taxes   The amount you realize from a sale or trade of property is everything you receive for the property minus your expenses of sale (such as redemption fees, sales commissions, sales charges, or exit fees). When can i file my 2011 taxes Amount realized includes the money you receive plus the fair market value of any property or services you receive. When can i file my 2011 taxes   If you finance the buyer's purchase of your property and the debt instrument does not provide for adequate stated interest, the unstated interest that you must report as ordinary income will reduce the amount realized from the sale. When can i file my 2011 taxes For more information, see Publication 537. When can i file my 2011 taxes   If a buyer of property issues a debt instrument to the seller of the property, the amount realized is determined by reference to the issue price of the debt instrument, which may or may not be the fair market value of the debt instrument. When can i file my 2011 taxes See Regulations section 1. When can i file my 2011 taxes 1001-1(g). When can i file my 2011 taxes However, if the debt instrument was previously issued by a third party (one not part of the sale transaction), the fair market value of the debt instrument is used to determine the amount realized. When can i file my 2011 taxes Fair market value. When can i file my 2011 taxes   Fair market value is the price at which property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. When can i file my 2011 taxes Example. When can i file my 2011 taxes You trade A Company stock with an adjusted basis of $7,000 for B Company stock with a fair market value of $10,000, which is your amount realized. When can i file my 2011 taxes Your gain is $3,000 ($10,000 – $7,000). When can i file my 2011 taxes If you also receive a note for $6,000 that has an issue price of $6,000, your gain is $9,000 ($10,000 + $6,000 – $7,000). When can i file my 2011 taxes Debt paid off. When can i file my 2011 taxes   A debt against the property, or against you, that is paid off as a part of the transaction or that is assumed by the buyer must be included in the amount realized. When can i file my 2011 taxes This is true even if neither you nor the buyer is personally liable for the debt. When can i file my 2011 taxes For example, if you sell or trade property that is subject to a nonrecourse loan, the amount you realize generally includes the full amount of the note assumed by the buyer even if the amount of the note is more than the fair market value of the property. When can i file my 2011 taxes Example. When can i file my 2011 taxes You sell stock that you had pledged as security for a bank loan of $8,000. When can i file my 2011 taxes Your basis in the stock is $6,000. When can i file my 2011 taxes The buyer pays off your bank loan and pays you $20,000 in cash. When can i file my 2011 taxes The amount realized is $28,000 ($20,000 + $8,000). When can i file my 2011 taxes Your gain is $22,000 ($28,000 – $6,000). When can i file my 2011 taxes Payment of cash. When can i file my 2011 taxes   If you trade property and cash for other property, the amount you realize is the fair market value of the property you receive. When can i file my 2011 taxes Determine your gain or loss by subtracting the cash you pay and the adjusted basis of the property you trade in from the amount you realize. When can i file my 2011 taxes If the result is a positive number, it is a gain. When can i file my 2011 taxes If the result is a negative number, it is a loss. When can i file my 2011 taxes No gain or loss. When can i file my 2011 taxes   You may have to use a basis for figuring gain that is different from the basis used for figuring loss. When can i file my 2011 taxes In this case, you may have neither a gain nor a loss. When can i file my 2011 taxes See No gain or loss in the discussion on the basis of property you received as a gift under Basis Other Than Cost, earlier. When can i file my 2011 taxes Special Rules for Mutual Funds To figure your gain or loss when you dispose of mutual fund shares, you need to determine which shares were sold and the basis of those shares. When can i file my 2011 taxes If your shares in a mutual fund were acquired all on the same day and for the same price, figuring their basis is not difficu