Who must
file. Generally, the amount
of income you can receive before
you must file a return has been
increased. See Table 1-1, Table
1-2, and Table 1-3 for the
specific amounts.
Higher
taxable income limits for filing
Form 1040A, 1040EZ, and TeleFile. Beginning
with the 2004 tax return, you
can use Form 1040A, Form 1040EZ,
and TeleFile if your taxable
income is less than $100,000.
Previously, the limit was
taxable income of less than
$50,000.
Mailing your
return. You
may be mailing your return to a
different address this year
because the IRS has changed the
filing location for several
areas. If you received an
envelope with your tax package,
please use it. Otherwise, see
Where
Do I File, later in
this chapter.
Reminders
Alternative
filing methods. Rather
than filing a return on paper,
you may be able to file
electronically using IRS
e-file. Create your
own personal identification
number (PIN) and file a
completely paperless tax return.
For more information, see
Does
My Return Have To Be on Paper,
later.
Change of
address. If you change your
address, you should notify the
IRS. See Change of Address,
later, under
What
Happens After I File.
Write in your
social security number. You
must write your social security
number (SSN) in the spaces
provided on your tax return. If
you file a joint return, write
the SSNs in the same order as
the names.
Direct
deposit of refund. Instead
of getting a paper check, you
may be able to have your refund
deposited directly into your
account at a bank or other
financial institution. See
Direct Deposit under
Refunds, later.
Alternative
payment methods. If you owe
additional tax, you may be able
to pay electronically. See
How
To Pay, later.
Installment
agreement. If you cannot pay
the full amount due with your
return, you may ask to make
monthly installment payments.
See
Installment Agreement,
later, under
Amount You Owe.
Service in
combat zone. You are allowed
extra time to take care of your
tax matters if you are a member
of the Armed Forces who served
in a combat zone, or if you
served in the combat zone in
support of the Armed Forces. See
Individuals Serving in Combat
Zone, later, under
When
Do I Have To File.
Adoption
taxpayer identification number. If
a child has been placed in your
home for purposes of legal
adoption and you will not be
able to get a social security
number for the child in time to
file your return, you may be
able to get an adoption taxpayer
identification number (ATIN).
For more information, see
Social Security Number,
later.
Taxpayer
identification number for
aliens. If you or your
dependent is a nonresident or
resident alien who does not have
and is not eligible to get a
social security number, file
Form W-7, Application for IRS
Individual Taxpayer
Identification Number, with the
IRS. For more information, see
Social Security Number,
later.
Third party
designee. You can allow the
IRS to discuss your tax return
with a friend, family member, or
any other person you choose by
checking the “Yes”
box in the
Third
party designee area
of your return. For more
information, see
Third
Party Designee,
later.
Introduction
This chapter discusses:
Whether you have to
file a return,
Which form to use,
How to file
electronically,
When, how, and where
to file your return,
What happens if you
pay too little or too
much tax,
What records you
should keep and how long
you should keep them,
and
How you can change a
return you have already
filed.
Do
I Have To File a
Return?
You must file a federal
income tax return if you are a
citizen or resident of the
United States or a resident of
Puerto Rico and you meet the
filing requirements for any of
the following categories that
apply to you.
Individuals in
general. (There are
special rules for
surviving spouses,
executors,
administrators, legal
representatives, U.S.
citizens and residents
living outside the
United States, residents
of Puerto Rico, and
individuals with income
from U.S. possessions.)
Dependents.
Children under age
14.
Self-employed
persons.
Aliens.
The filing requirements for
each category are explained in
this chapter.
The filing requirements apply
even if you do not owe tax.
Even if you do not have
to file a return, it may be to
your advantage to do so. See Who
Should File , later.
File only one federal
income tax return for the year
regardless of how many jobs you
had, how many Forms W-2 you
received, or how many states you
lived in during the year.
Individuals—In
General
If you are a U.S. citizen
or resident, whether you
must file a return depends
on three factors:
Your gross
income,
Your filing
status, and
Your age.
To find out whether you
must file, see Table 1-1,
Table 1-2, and Table 1-3.
Even if no table shows that
you must file, you may need
to file to get money back.
(See Who Should File,
later.)
Gross
income.
This includes all
income you receive in
the form of money,
goods, property, and
services that is not
exempt from tax. It also
includes income from
sources outside the
United States (even if
you may exclude all or
part of it). Common
types of income are
discussed in
Part Two
of this publication.
Community income.
If you are married and
your permanent home is
in a community property
state, half of any
income described by
state law as community
income may be considered
yours. This affects your
federal taxes, including
whether you must file if
you do not file a joint
return with your spouse.
See Publication 555,
Community Property, for
more information.
Self-employed
individuals.
If you are
self-employed, your
gross income includes
the amount on line 7 of
Schedule C (Form 1040),
Profit or Loss From
Business, line 1 of
Schedule C-EZ (Form
1040), Net Profit From
Business, and line 11 of
Schedule F (Form 1040),
Profit or Loss From
Farming. See
Self-Employed
Persons,
later, for more
information about your
filing requirements.
If you do not
report all of your
self-employment income,
your social security
benefits may be lower
when you retire.
Filing
status.
Your filing status
depends on whether you
are single or married
and on your family
situation. Your filing
status is determined on
the last day of your tax
year, which is December
31 for most taxpayers.
See chapter 2 for an
explanation of each
filing status.
Age.
If you are 65 or older
at the end of the year,
you generally can have a
higher amount of gross
income than other
taxpayers before you
must file. See Table
1-1. You are considered
65 on the day before
your 65th birthday. For
example, if your 65th
birthday is on January
1, 2005, you are
considered 65 for 2004.
Table
1-1.2004
Filing
Requirements
for Most
Taxpayers
IF your
filing
status
is...
AND at
the end
of 2004
you
were...*
THEN
file a
return
if
your
gross
income
was at
least...**
single
under 65
$7,950
65 or
older
$9,150
married
filing
jointly***
under 65
(both
spouses)
$15,900
65 or
older
(one
spouse)
$16,850
65 or
older
(both
spouses)
$17,800
married
filing
separately
any age
$3,100
head of
household
under 65
$10,250
65 or
older
$11,450
qualifying
widow(er)
with
under 65
$12,800
dependent
child
65 or
older
$13,750
*
If you
were
born on
January
1, 1940,
you are
considered
to be
age 65
at the
end of
2004.
**
Gross
income
means
all
income
you
received
in the
form of
money,
goods,
property,
and
services
that is
not
exempt
from
tax,
including
any
income
from
sources
outside
the
United
States
(even if
you may
exclude
part or
all of
it).
Do
not
include
social
security
benefits
as gross
income
unless
you are
married
filing a
separate
return
and you
lived
with
your
spouse
at any
time
during
2004.
***
If
you did
not live
with
your
spouse
at the
end of
2004 (or
on the
date
your
spouse
died)
and your
gross
income
was at
least
$3,100,
you must
file a
return
regardless
of your
age.
Surviving
Spouses,
Executors,
Administrators,
and Legal
Representatives
You must file a final
return for a decedent (a
person who died) if both
of the following are
true.
You are the
surviving
spouse,
executor,
administrator,
or legal
representative.
The decedent
met the filing
requirements at
the date of
death.
For more information
on rules for filing a
decedent's final return,
see chapter 4.
U.S.
Citizens and
Residents
Living
Outside the
United
States
If you are a U.S.
citizen or resident
living outside the
United States, you must
file a return if you
meet the filing
requirements. For
information on special
tax rules that may apply
to you, get Publication
54, Tax Guide for U.S.
Citizens and Resident
Aliens Abroad. It is
available at most U.S.
embassies and
consulates. Also see
How To Get Tax Help
in the back of this
publication.
Residents of
Puerto Rico
Generally, if you are
a U.S. citizen and a
resident of Puerto Rico,
you must file a U.S.
income tax return if you
meet the filing
requirements. This is in
addition to any legal
requirement you may have
to file an income tax
return for Puerto Rico.
If you are a resident
of Puerto Rico for the
entire year, gross
income does not include
income from sources
within Puerto Rico,
except for amounts
received as an employee
of the United States or
a U.S. agency. If you
receive income from
Puerto Rican sources
that is not subject to
U.S. tax, you must
reduce your standard
deduction. As a result,
the amount of income you
must have before you are
required to file a U.S.
income tax return is
lower than the
applicable amount in
Table 1-1 or Table 1-2.
For more information,
see
U.S. taxation
and its discussion,
Standard deduction,
under
The Commonwealth of
Puerto Rico
in Publication 570, Tax
Guide for Individuals
With Income From U.S.
Possessions.
Individuals
With Income
From U.S.
Possessions
If you had income
from Guam, the
Commonwealth of the
Northern Mariana
Islands, American Samoa,
or the Virgin Islands,
special rules may apply
when determining whether
you must file a U.S.
federal income tax
return. In addition, you
may have to file a
return with the
individual island
government. See
Publication 570 for more
information.
Dependents
If you are a dependent
(one who meets the
dependency tests in chapter
3), see Table 1-2 to find
whether you must file a
return. You also must file
if your situation is
described in Table 1-3.
Responsibility of
parent. Generally,
a child is responsible
for filing his or her
own tax return and for
paying any tax on the
return. But if a
dependent child who must
file an income tax
return cannot file it
for any reason, such as
age, then a parent,
guardian, or other
legally responsible
person must file it for
the child. If the child
cannot sign the return,
the parent or guardian
must sign the child's
name followed by the
words “By
(your signature), parent
for minor child.”
Child's earnings.
Amounts a child earns
by performing services
are his or her gross
income. This is true
even if under local law
the child's parents have
the right to the
earnings and may
actually have received
them. If the child does
not pay the tax due on
this income, the parent
is liable for the tax.
Children
Under Age 14
If a child's only income
is interest and dividends
(including capital gain
distributions and Alaska
Permanent Fund dividends)
and certain other conditions
are met, a parent can elect
to include the child's
income on the parent's
return. If this election is
made, the child does not
have to file a return. See
Parent's Election To Report
Child's Interest and
Dividends in
chapter 33.
Self-Employed
Persons
You are self-employed if
you:
Carry on a trade
or business as a
sole proprietor,
Are an
independent
contractor,
Are a member of
a partnership, or
Are in business
for yourself in any
other way.
Self-employment can
include work in addition to
your regular full-time
business activities, such as
certain part-time work you
do at home or in addition to
your regular job.
You must file a return if
your gross income is at
least as much as the filing
requirement amount for your
filing status and age (shown
in Table 1-1). Also, you
must file Form 1040 and
Schedule SE (Form 1040),
Self-Employment Tax, if:
Your net
earnings from
self-employment
(excluding church
employee income)
were $400 or more,
or
You had church
employee income of
$108.28 or more.
(See Table 1-3.)
Use Schedule SE (Form
1040) to figure your
self-employment tax.
Self-employment tax is
comparable to the social
security and Medicare tax
withheld from an employee's
wages. For more information
about this tax, get
Publication 533,
Self-Employment Tax.
Employees of foreign
governments or
international
organizations.
If you are a U.S.
citizen who works in the
United States for an
international
organization, a foreign
government, or a wholly
owned instrumentality of
a foreign government,
and your employer is not
required to withhold
social security and
Medicare taxes from your
wages, you must include
your earnings from
services performed in
the United States when
figuring your net
earnings from
self-employment.
Ministers.
You must include
income from services you
performed as a minister
when figuring your net
earnings from
self-employment, unless
you have an exemption
from self-employment
tax. This also applies
to Christian Science
practitioners and
members of a religious
order who have not taken
a vow of poverty. For
more information, get
Publication 517, Social
Security and Other
Information for Members
of the Clergy and
Religious Workers.
Table 1-2. 2004
Filing Requirements
for Dependents
See
chapter 3 to
find out if
someone can
claim you as
a dependent.
If your
parents (or
someone
else) can
claim you as
a dependent,
and any of
the
situations
below apply
to you, you
must file a
return. (See
Table 1-3
for other
situations
when you
must file.)
In this
table,
earned
income
includes
salaries,
wages, tips,
and
professional
fees. It
also
includes
taxable
scholarship
and
fellowship
grants. (See
Scholarship
and
Fellowship
Grants
in chapter
13.)
Unearned
income
includes
investment-type
income such
as taxable
interest,
ordinary
dividends,
and capital
gain
distributions.
It also
includes
unemployment
compensation,
taxable
social
security
benefits,
pensions,
annuities,
and
distributions
of unearned
income from
a trust.
Gross
income
is the total
of your
earned and
unearned
income.
Caution:
If your
gross income
was $3,100
or more, you
generally
cannot be
claimed as a
dependent
unless you
were under
age 19
or
a full-time
student
under age
24. For
details, see
Gross
Income Test
in chapter
3.
Single
dependents—Were
you
either
age 65 or
older
or
blind?
□
No.
You must
file a
return if
any
of the
following
apply.
•
Your
unearned
income was
more than
$800.
•
Your earned
income was
more than
$4,850.
•
Your gross
income was
more than
the larger
of:
•
$800, or
•
Your earned
income (up
to $4,600)
plus
$250.
□
Yes.
You must
file a
return if
any
of the
following
apply.
•
Your
unearned
income was
more than
$2,000
($3,200 if
65 or older
and
blind).
•
Your earned
income was
more than
$6,050
($7,250 if
65 or older
and
blind).
•
Your gross
income was
more than
$1,200
($2,400 if
65 or older
and
blind) plus
the larger
of:
•
$800, or
•
Your earned
income (up
to $4,600)
plus
$250.
Married
dependents—Were
you
either
age 65 or
older
or
blind?
□
No.
You must
file a
return if
any
of the
following
apply.
•
Your
unearned
income was
more than
$800.
•
Your earned
income was
more than
$4,850.
•
Your gross
income was
at least $5
and your
spouse files
a separate
return and
itemizes
deductions.
•
Your gross
income was
more than
the larger
of:
•
$800, or
•
Your earned
income (up
to $4,600)
plus
$250.
□
Yes.
You must
file a
return if
any
of the
following
apply.
•
Your
unearned
income was
more than
$1,750
($2,700 if
65 or older
and
blind).
•
Your earned
income was
more than
$5,800
($6,750 if
65 or older
and
blind).
•
Your gross
income was
at least $5
and your
spouse files
a separate
return and
itemizes
deductions.
•
Your gross
income was
more than
$950 ($1,900
if 65 or
older
and
blind) plus
the larger
of:
•
$800, or
•
Your
earned
income (up
to $4,600)
plus
$250.
Aliens
Your status as an
alien—resident, nonresident,
or dual-status—determines
whether and how you must
file an income tax return.
The rules used to
determine your alien status
are discussed in Publication
519, U.S. Tax Guide for
Aliens.
Resident alien.
If you are a resident
alien for the entire
year, you must file a
tax return following the
same rules that apply to
U.S. citizens. Use the
forms discussed in this
publication.
Nonresident alien.
If you are a
nonresident alien, the
rules and tax forms that
apply to you are
different from those
that apply to U.S.
citizens and resident
aliens. See Publication
519 to find out if U.S.
income tax laws apply to
you and which forms you
should file.
Dual-status taxpayer.
If you are a resident
alien for part of the
tax year and a
nonresident alien for
the rest of the year,
you are a dual-status
taxpayer. Different
rules apply for each
part of the year. For
information on
dual-status taxpayers,
see Publication 519.
Who Should
File
Even if you do not have
to file, you should file a
federal income tax return to
get money back if any of the
following conditions apply.
You had federal
income tax withheld
from your pay.
You qualify for
the earned income
credit. See chapter
38 for more
information.
You qualify for
the additional child
tax credit. See
chapter 36 for more
information.
You qualify for
the health coverage
tax credit. See
chapter 39 for more
information.
Which Form Should I
Use?
You must use one of three
forms to file your return: Form
1040EZ, Form 1040A, or Form
1040. (But also see
Does
My Return Have To Be on Paper,
later.)
Form 1040EZ
Form 1040EZ is the
simplest form to use.
You can
use Form 1040EZ if all
of the following apply.
Your filing
status is single
or married
filing jointly.
If you were a
nonresident
alien at any
time in 2004,
your filing
status must be
married filing
jointly.
You (and
your spouse if
married filing a
joint return)
were under age
65 and not blind
at the end of
2004. If you
were born on
January 1, 1940,
you are
considered to be
age 65 at the
end of 2004.
You do not
claim any
dependents.
Your taxable
income is less
than $100,000.
Your income
is only from
wages, salaries,
tips,
unemployment
compensation,
Alaska Permanent
Fund dividends,
taxable
scholarship and
fellowship
grants, and
taxable interest
of $1,500 or
less.
You did not
receive any
advance earned
income credit
(EIC) payments.
You do not
claim any
adjustments to
income, such as
a deduction for
IRA
contributions or
student loan
interest.
You do not
claim any
credits other
than the earned
income credit.
You do not
owe any
household
employment taxes
on wages you
paid to a
household
employee.
You must meet all of
these requirements to
use Form 1040EZ. If you
do not, you must use
Form 1040A or Form 1040.
Figuring tax. On
Form 1040EZ, you can use
only the tax table to
figure your tax. You
cannot use Form 1040EZ
to report any other tax.
Form 1040A
If you do not qualify to
use Form 1040EZ, you may be
able to use Form 1040A.
You can
use Form 1040A if all of
the following apply.
Your income
is only from
wages, salaries,
tips, IRA
distributions,
pensions and
annuities,
taxable social
security and
railroad
retirement
benefits,
taxable
scholarship and
fellowship
grants,
interest,
ordinary
dividends
(including
Alaska Permanent
Fund dividends),
capital gain
distributions,
and unemployment
compensation.
Your taxable
income is less
than $100,000.
Your
adjustments to
income are for
only the
following items.
Educator
expenses.
IRA
deduction.
Student
loan
interest
deduction.
Tuition
and fees
deduction.
You do not
itemize your
deductions.
Your taxes
are from only
the following
items.
Tax
Table.
Alternative
minimum
tax.
(See
chapter
32.)
Advance
earned
income
credit
(EIC)
payments,
if you
received
any.
(See
chapter
38.)
Recapture
of an
education
credit.
(See
chapter
37.)
Form
8615,
Tax for
Children
Under
Age 14
With
Investment
Income
of More
Than
$1,600.
Qualified
Dividends
and
Capital
Gain Tax
Worksheet.
You claim
only the
following tax
credits.
The
credit
for
child
and
dependent
care
expenses.
(See
chapter
34.)
The
credit
for the
elderly
or the
disabled.
(See
chapter
35.)
The
child
tax
credit.
(See
chapter
36.)
The
additional
child
tax
credit.
(See
chapter
36.)
The
education
credits.
(See
chapter
37.)
The
retirement
savings
contributions
credit.
(See
chapter
39.)
The
earned
income
credit.
(See
chapter
38.)
The
adoption
credit.
(See
chapter
39.)
You did not
have an
alternative
minimum tax
adjustment on
stock you
acquired from
the exercise of
an incentive
stock option.
(See Publication
525, Taxable and
Nontaxable
Income.)
You must meet all of
the above requirements
to use Form 1040A. If
you do not, you must use
Form 1040.
If you meet the above
requirements, you can
use Form 1040A even if
you received
employer-provided
adoption benefits or
dependent care benefits.
If you receive a
capital gain
distribution that
includes unrecaptured
section 1250 gain,
section 1202 gain, or
collectibles (28%) gain,
you cannot use Form
1040A. You must use Form
1040.
Form 1040
If you cannot use Form
1040EZ or Form 1040A, you
must use Form 1040. You can
use Form 1040 to report all
types of income, deductions,
and credits.
You may have received
Form 1040A or Form 1040EZ in
the mail because of the
return you filed last year.
If your situation has
changed this year, it may be
to your advantage to file
Form 1040 instead. You may
pay less tax by filing Form
1040 because you can take
itemized deductions, some
adjustments to income, and
credits you cannot take on
Form 1040A or Form 1040EZ.
You
must use Form 1040 if
any of the following
apply.
Your taxable
income is
$100,000 or
more.
You itemize
your deductions.
You had
income that
cannot be
reported on Form
1040EZ or Form
1040A, including
tax-exempt
interest from
private activity
bonds issued
after August 7,
1986.
You claim
any adjustments
to gross income
other than the
adjustments
listed earlier
under
Form 1040A.
Your Form
W-2, box 12,
shows
uncollected
employee tax
(social security
and Medicare
tax) on tips
(see chapter 7)
or group-term
life insurance
(see chapter 6).
You received
$20 or more in
tips in any one
month and did
not report all
of them to your
employer. (See
chapter 7.)
You claim
any credits
other than the
credits listed
earlier under
Form 1040A.
You owe the
excise tax on
insider stock
compensation
from an
expatriated
corporation.
You have to
file other forms
with your return
to report
certain
exclusions,
taxes, or
transactions.
Table
1-3.Other
Situations
When You
Must File a
2004 Return
If any of
the four
conditions
listed below
apply, you
must file a
return, even
if your
income is
less than
the amount
shown in
Table 1-1 or
Table 1-2.
1.
You owe any
special
taxes, such
as:
•
•
•
•
•
•
•
•
•
•
•
•
•
Social
security or
Medicare tax
on tips you
did not
report to
your
employer.
(See chapter
7.)
Uncollected
social
security,
Medicare, or
railroad
retirement
tax on tips
you reported
to your
employer.
(See chapter
7.)
Uncollected
social
security,
Medicare, or
railroad
retirement
tax on your
group-term
life
insurance.
This amount
should be
shown in box
12 of your
Form W-2.
Alternative
minimum tax.
(See chapter
32.)
Additional
tax on a
qualified
retirement
plan,
including an
individual
retirement
arrangement
(IRA). (See
chapter 18.)
Additional
tax on an
Archer MSA
or health
savings
account.
(See
Publication
969, Health
Savings
Accounts and
Other
Tax-Favored
Health
Plans.)
Additional
tax on a
Coverdell
ESA or
qualified
tuition
program.
(See
Publication
970, Tax
Benefits for
Education.)
Recapture of
an
investment
credit or a
low-income
housing
credit. (See
the
instructions
for Form
4255,
Recapture of
Investment
Credit, or
Form 8611,
Recapture of
Low-Income
Housing
Credit.)
Recapture
tax on the
disposition
of a home
purchased
with a
federally-subsidized
mortgage.
(See chapter
16.)
Recapture of
the
qualified
electric
vehicle
credit. (See
chapter 39.)
Recapture of
an education
credit. (See
chapter 37.)
Recapture of
the Indian
employment
credit. (See
the
instructions
for Form
8845, Indian
Employment
Credit.)
Recapture of
the new
markets
credit. (See
Form 8874,
New Markets
Credit.)
2.
You received
any advance
earned
income
credit (EIC)
payments
from your
employer.
This amount
should be
shown in box
9 of your
Form W-2.
(See chapter
38.)
3.
You had net
earnings
from
self-employment
of at least
$400. (See
Self-Employed
Persons
earlier in
this
chapter.)
4.
You had
wages of
$108.28 or
more from a
church or
qualified
church-controlled
organization
that is
exempt from
employer
social
security and
Medicare
taxes. (See
Publication
533.)
Does My Return Have
To Be on Paper?
You may be able to file a
paperless return using IRS
e-file (electronic
filing). It's so easy, over 61
million taxpayers preferred
e-file over filing a
paper tax return last year.
Table 1-4 lists the
benefits of IRS
e-file. IRS
e-file uses
automation to replace most
of the manual steps needed
to process paper returns. As
a result, the processing of
e-file returns
is faster and more accurate
than the processing of paper
returns. However, as with a
paper return, you are
responsible for making sure
your return contains
accurate information and is
filed on time.
Using
e-file does not
affect your chances of an
IRS examination of your
return.
Electronic signatures.
Create your own
personal identification
number (PIN) and use a
tax professional or file
your own paperless
return electronically.
If you are married
filing jointly, you and
your spouse will each
need to create a PIN and
enter these PINs as your
electronic signatures.
A PIN is any
combination of five
numbers, except five
zeros. If you use a PIN,
there is nothing to sign
and nothing to mail—not
even your Forms W-2.
To verify your
identity, you will be
asked to enter your
adjusted gross income
(AGI) from your
originally filed 2003
income tax return, if
applicable. Do not use
your AGI from an amended
return (Form 1040X),
math error notice, or
other changed amount
from the IRS. AGI is the
amount shown on your
2003 Form 1040, line 34;
Form 1040A, line 21;
Form 1040EZ, line 4; and
on the TeleFile Tax
Record, line I. If you
do not have your 2003
income tax return, call
the IRS at
1-800-829-1040 to get a
free transcript of your
account. You will also
be asked to enter your
date of birth (DOB).
Make sure your DOB is
accurate and matches the
information on record
with the Social Security
Administration by
checking your annual
Social Security
Statement.
Table
1-4.Benefits
of IRS
e-file
Free
File
Options!
•
At least
60
percent
of
taxpayers
are
eligible
to use
free
commercial
online
tax
preparation
software
to
e-file.
•
Visit
www.irs.gov/efile
to see
if you
qualify
and to
access
these
free
services
offered
by the
tax
software
industry
(not the
IRS).
Fast!
Easy!
Convenient!
•
Get your
refund
in half
the time
as paper
filers
do, even
faster
and
safer
with
Direct
Deposit—in
as few
as 10
days.
•
Sign
electronically
and file
a
completely
paperless
return.
•
Receive
an
electronic
proof of
receipt
within
48 hours
that the
IRS
received
your
return.
•
If you
owe, you
can
e-file
and
authorize
an
electronic
funds
withdrawal
or pay
by
credit
card. If
you
e-file
before
April
15,
2005,
you can
schedule
an
electronic
funds
withdrawal
from
your
checking
or
savings
account
as late
as April
15,
2005.
•
Prepare
and file
your
federal
and
state
returns
together
and save
time.
Accurate!
Secure!
•
IRS
computers
quickly
and
automatically
check
for
errors
or other
missing
information.
•
The
chance
of being
audited
does not
differ
whether
you
e-file
or file
a paper
tax
return.
•
Your
bank
account
information
is
safeguarded
along
with
other
tax
return
information.
The IRS
does not
have
access
to
credit
card
numbers.
You cannot sign
your return
electronically if you
are a first-time filer
under age 16 at the end
of 2004, or if you are
filing Form 3115, 3468
(if attachments are
required), 5713, 8283
(if completing Section
B), 8332, 8858, or 8885.
For more details on
the PIN method, visit
www.irs.gov/efile
and click on “IRS
e-file
for Individual
Taxpayers.”
An Authorized IRS
e-file Provider can,
with your authorization,
generate a PIN for you.
Forms
8453 and 8453-OL.
Your return is not
complete without your
signature. If you are
not eligible or choose
not to sign your return
electronically, you must
complete, sign, and file
Form 8453, U.S.
Individual Income Tax
Declaration for an IRS
e-file
Return, or Form 8453-OL,
U.S. Individual Income
Tax Declaration for an
IRS
e-file
Online Return, whichever
applies.
State
returns.
In most states, you
can file an electronic
state return
simultaneously with your
federal return. For more
information, check with
your local IRS office,
state tax agency, tax
professional, or the IRS
web site at
www.irs.gov/efile.
Refunds.
You can have a refund
check mailed to you, or
you can have your refund
deposited directly to
your checking or savings
account.
With
e-file,
your refund will be
issued in half the time
as when filing on paper.
If you choose direct
deposit, you can receive
your refund in as few as
10 days.
As with a paper
return, you may not get
all of your refund if
you owe certain past-due
amounts, such as federal
tax, state tax, a
student loan, or child
support. See
Offset against debts
under
Refunds,
later.
Refund
inquiries.
If you do not receive
your refund within 3
weeks after your
electronically-filed
return was accepted by
IRS, see
Past-Due Refund,
later.
Balance
due.
If you owe tax, you
must pay it by April 15,
2005, to avoid
late-payment penalties
and interest. You can
make your payment
electronically by credit
card or by scheduling an
electronic funds
withdrawal from your
checking or savings
account.
See
How To Pay,
later, for information
on how to pay the
balance due.
Using an
Authorized
IRS
e-file
Provider
Many tax
professionals
electronically file tax
returns for their
clients. As a taxpayer,
you have two options.
1)
You can
prepare your
return, take
it to an
Authorized
IRS
e-file
Provider,
and have the
provider
transmit it
electronically
to the IRS.
2)
You can
have a tax
professional
prepare your
return and
transmit it
for you
electronically.
You may personally
enter your PIN or
complete Form 8879, IRS
e-file
Signature Authorization,
to authorize the
provider to enter your
PIN on your return.
Note.
Tax professionals
may charge a fee for
IRS
e-file.
Fees may vary
depending on the
professional and the
specific services
rendered.
Using Your
Personal
Computer
You can file your
tax return in a fast,
easy, convenient way
using your personal
computer. A computer
with a modem or Internet
access and tax
preparation software are
all you need. You can
e-file
from the comfort of your
home 24 hours a day, 7
days a week. Best of
all, you may qualify for
Free File.
If you do not qualify
for the Free File
options, visit our
Partners Page for
partners that offer
other free or low-cost
filing options.
IRS approved tax
preparation software is
available for online use
on the Internet, for
download from the
Internet, and in retail
stores.
For information on
Free File, Partners
Page, and tax
preparation software,
visit our website at
www.irs.gov/efile.
Using a
Telephone
(TeleFile)
For millions of
eligible taxpayers,
TeleFile is the easiest
way to file. TeleFile
allows you to file your
simple federal tax
return using a
touch-tone telephone.
Only taxpayers who met
the qualifications for
Form 1040EZ in the prior
year are eligible to
receive the TeleFile tax
package for the current
year. A TeleFile tax
package is automatically
mailed to you if you are
eligible. TeleFile is
completely
paperless—there are no
forms to mail in. Just
follow the instructions
in the TeleFile tax
package. TeleFile is
filed directly with the
IRS, usually in 10
minutes, and it's FREE.
Parents: If your
children receive a
TeleFile tax package,
please encourage them to
use TeleFile.
Through
Employers
and
Financial
Institutions
Some businesses offer
free
e-file
to their employees,
members, or customers.
Others offer it for a
fee. Ask your employer
or financial institution
if they offer IRS
e-file
as an employee, member,
or customer benefit.
Free Help
With Your
Return
Free help in
preparing your return is
available nationwide
from IRS-trained
volunteers. The
Volunteer Income Tax
Assistance (VITA)
program is designed to
help low-income
taxpayers and the Tax
Counseling for the
Elderly (TCE) program is
designed to assist
taxpayers age 60 or
older with their tax
returns. Many VITA sites
offer free electronic
filing and all
volunteers will let you
know about the credits
and deductions you may
be entitled to claim. To
find a site near you,
call 1-800-829-1040. Or
to find the nearest AARP
TaxAide site, visit
AARP's website at
www.aarp.org/taxaide
or call 1-888-227-7669.
For more information on
these programs, go to
www.irs.gov and
enter keyword “VITA”
in the upper right-hand
corner.
When Do I Have To
File?
April 15, 2005, is the due
date for filing your 2004 income
tax return if you use the
calendar year. For a quick view
of due dates for filing a return
with or without an extension of
time to file (discussed later),
see Table 1-5.
Table 1-5. When To File
Your 2004 Return
For U.S.
citizens and
residents who
file returns on
a calendar year.
For Most
Taxpayers
For Certain
Taxpayers Outside the
U.S.
No extension
requested
April 15, 2005
June 15, 2005
Automatic
extension
Form 4868 filed,
or credit
card payment
made
August 15, 2005
August 15, 2005
2nd extension
Form 2688 filed
after getting
automatic
extension
October 17, 2005
October 17, 2005
If you use a fiscal year (a
year ending on the last day of
any month except December, or a
52-53-week year), your income
tax return is due by the 15th
day of the 4th month after the
close of your fiscal year.
When the due date for doing
any act for tax purposes—filing
a return, paying taxes,
etc.—falls on a Saturday,
Sunday, or legal holiday, the
due date is delayed until the
next business day.
Filing on
time. Your paper
return is filed on time if
it is mailed in an envelope
that is properly addressed,
has enough postage, and is
postmarked by the due date.
If you send your return by
registered mail, the date of
the registration is the
postmark date. The
registration is evidence
that the return was
delivered. If you send a
return by certified mail and
have your receipt postmarked
by a postal employee, the
date on the receipt is the
postmark date. The
postmarked certified mail
receipt is evidence that the
return was delivered.
Private
delivery services.
If you use a private
delivery service designated
by the IRS to send your
return, the postmark date
generally is the date the
private delivery service
records in its database or
marks on the mailing label.
The private delivery service
can tell you how to get
written proof of this date.
The following are
designated private delivery
services.
DHL Express
(DHL): DHL Same Day
Service, DHL Next
Day 10:30 am, DHL
Next Day 12:00 pm,
DHL Next Day 3:00
pm, and DHL 2nd Day
Service.
Federal Express
(FedEx): FedEx
Priority Overnight,
FedEx Standard
Overnight, FedEx
2Day, FedEx
International
Priority, and FedEx
International First.
United Parcel
Service (UPS): UPS
Next Day Air, UPS
Next Day Air Saver,
UPS 2nd Day Air, UPS
2nd Day Air A.M.,
UPS Worldwide
Express Plus, and
UPS Worldwide
Express.
Private delivery
services cannot deliver
items to P.O. boxes. You
must use the U.S. Postal
Service to mail any item to
an IRS P.O. box address.
Electronically filed
returns.
If you use IRS
e-file, your
return is considered filed
on time if the authorized
electronic return
transmitter postmarks the
transmission by the due
date. An authorized
electronic return
transmitter is a participant
in the IRS
e-file program
that transmits electronic
tax return information
directly to the IRS.
The electronic postmark is
a record of when the
authorized electronic return
transmitter received the
transmission of your
electronically filed return
on its host system. The date
and time in your time zone
controls whether your
electronically filed return
is timely.
Filing
late.
If you do not file your
return by the due date, you
may have to pay a
failure-to-file penalty and
interest. For more
information, see
Penalties,
later. Also see
Interest under
Amount You Owe.
If you were due a refund
but you did not file a
return, you generally must
file within 3 years from the
date the return was due
(including extensions) to
get that refund.
Nonresident
alien.
If you are a nonresident
alien and earn wages subject
to U.S. income tax
withholding, your 2004 U.S.
income tax return (Form
1040NR or Form 1040NR-EZ) is
due by:
April 15, 2005,
if you use a
calendar year, or
The 15th day of
the 4th month after
the end of your
fiscal year if you
use a fiscal year.
If you do not earn wages
subject to U.S. income tax
withholding, your return is
due by:
June 15, 2005,
if you use a
calendar year, or
The 15th day of
the 6th month after
the end of your
fiscal year, if you
use a fiscal year.
Get Publication 519 for more
filing information.
Filing for
a decedent.
If you must file a final
income tax return for a
taxpayer who died during the
year (a decedent), the
return is due by the 15th
day of the 4th month after
the end of the decedent's
normal tax year. In most
cases, for a 2004 return,
this will be April 15, 2005.
See Final Return for the
Decedent in
chapter 4.
Extensions
of Time To File
You may be able to get an
extension of time to file
your return. Special rules
apply for those who were:
Outside the
United States, or
Serving in a
combat zone.
Automatic
Extension
If you cannot file
your 2004 return by the
due date, you may be
able to get an automatic
4-month extension of
time to file.
Example.
If your return is
due on April 15,
2005, you will have
until August 15,
2005, to file.
If you do not pay
the tax due by the
regular due date
(generally, April 15),
you will owe interest.
You may also be charged
penalties, discussed
later.
How
to get the automatic
extension. You
can get the
automatic extension
by:
Using
IRS
e-file
(electronic
filing), or
Filing a
paper form.
E-file
options.
There are three
ways you can use
e-file
to get an extension
of time to file. If
you
e-file,
you will get a
confirmation number
when you complete
the transaction.
Keep the number with
your records.
Complete Form
4868, Application
for Automatic
Extension of Time To
File U.S. Individual
Income Tax Return,
to use as a
worksheet. If you
think you may owe
tax when you file
your return, use
Part II
of the form to
estimate your
balance due. Do not
send Form 4868 to
the IRS.
E-file by
phone.
You can file Form
4868 by phone any
time from February 2
through April 15,
2005. You will need
to provide certain
information from
your tax return for
2003. If you wish to
make a payment by
electronic funds
withdrawal, see
Electronic
payment options,
under
How To Pay,
later in this
chapter.
E-file using
your personal
computer or a tax
professional.
You can use a tax
software package
with your personal
computer or a tax
professional to file
Form 4868
electronically. You
will need to provide
certain information
from your tax return
for 2003. If you
wish to make a
payment by
electronic funds
withdrawal, see
Electronic
payment options,
under
How To Pay,
later in this
chapter.
E-file and
pay by credit card.
You can get an
extension by paying
part or all of your
estimate of tax due
by using a credit
card. You can do
this by phone or
over the Internet.
You do not file Form
4868. See
Credit card,
under
How To Pay,
later in this
chapter.
Filing a paper Form
4868.
You can get an
extension of time to
file by filing a
paper Form 4868.
Mail it to the
address shown in the
form instructions.
If you want to
make a payment with
the form, make your
check or money order
payable to the “United
States Treasury.”
Write your SSN,
daytime phone
number, and “2004
Form 4868” on
your check or money
order.
When to file.
You must request
the automatic
extension by the due
date for your
return. You can file
your return any time
before the 4-month
extension period
ends.
When you file your
return.
Enter any payment
you made related to
the extension of
time to file on line
68, Form 1040. If
you file Form 1040EZ
or Form 1040A,
include that payment
in your total
payments on line 9
of Form 1040EZ or
line 43 of Form
1040A. Also print “Form
4868” and the
amount paid in the
space to the left of
line 9 or line 43.
Extension beyond 4
months.
If you get the
4-month extension
and you later find
that you are not
able to file within
the 4-month
extension period,
you may be able to
get 2 more months to
file, for a total of
6 months.
You can apply for
an extension beyond
the 4-month
extension either by
writing a letter to
the IRS or by filing
Form 2688,
Application for
Additional Extension
of Time To File U.S.
Individual Income
Tax Return. Except
in cases of undue
hardship, a request
for additional time
will not be approved
unless you have
first used the
automatic 4-month
extension. Form 2688
or your letter will
not be considered if
you file it after
the extended due
date.
You should
ask for the
extension early so
that, if it is not
approved, you still
will be able to file
on time.
To get an
extension beyond the
automatic 4-month
extension, you must
give all the
following
information.
The
reason for
requesting
the
extension.
The tax
year to
which the
extension
applies.
The
length of
time needed
for the
extension.
Whether
another
extension of
time to file
has already
been
requested
for this tax
year.
You must sign the
request for this
extension, or it may
be signed by your
attorney, CPA,
enrolled agent, or a
person with a power
of attorney. If you
are unable to sign
the request because
of illness or for
another good reason,
a person with a
close personal or
business
relationship to you
can sign for you,
stating why you
could not sign the
request.
E-file.
Refer to your tax
software package or
tax preparer for
ways to file Form
2688 electronically.
You will need to
provide certain
information from
your tax return for
2003. If you file
electronically, do
not mail the Form
2688.
Extension
approved.
If your
application for this
extension is
approved, you will
be notified by the
IRS.
If the IRS later
determines that the
statements made on
your request for
this extension are
false or misleading
and an extension
would not have been
approved at the time
based on the true
facts, the extension
will be null and
void. You will have
to pay the
failure-to-file
penalty (discussed
later under
Civil Penalties).
Extension not
approved.
If your
application for this
extension is not
approved, you must
file your return by
the extended due
date of the
automatic extension.
You may be allowed
to file within 10
days of the date of
the notice you get
from the IRS if the
end of the 10-day
period is later than
the due date. The
notice will tell you
if the 10-day grace
period is granted.
No
further extensions.
If you are in the
United States, an
extension of more
than 6 months will
not be approved.
Individuals
Outside the
United
States
You are allowed an
automatic 2-month
extension (until June
15, 2005, if you use the
calendar year) to file
your 2004 return and pay
any federal income tax
due if:
You are a
U.S. citizen or
resident, and
On the due
date of your
return:
You
are
living
outside
of the
United
States
and
Puerto
Rico,
and your
main
place of
business
or post
of duty
is
outside
the
United
States
and
Puerto
Rico, or
You
are in
military
or naval
service
on duty
outside
the
United
States
and
Puerto
Rico.
However, if you pay
the tax due after the
regular due date
(generally, April 15),
interest will be charged
from that date until the
date the tax is paid.
If you served in a
combat zone or qualified
hazardous duty area, you
may be eligible for a
longer extension of time
to file. See
Individuals Serving
in Combat Zone,
later, for special rules
that apply to you.
Married taxpayers.
If you file a
joint return, only
one spouse has to
qualify for this
automatic extension.
If you and your
spouse file separate
returns, this
automatic extension
applies only to the
spouse who
qualifies.
How
to get the
extension. To
use this special
automatic extension,
you must attach a
statement to your
return explaining
what situation
qualified you for
the extension. (See
the situations
listed under (2),
earlier.)
Extensions beyond 2
months. If you
cannot file your
return within the
automatic 2-month
extension period,
you may be able to
get an additional
2-month extension,
for a total of 4
months. Generally,
you must file a
paper Form 4868 by
the end of the
automatic extension
period (usually June
15) to get this
additional 2-month
extension. Write “Taxpayer
Abroad”
across the top of
Form 4868.
This additional
2-month extension of
time to file is not
a further extension
of time to pay. You
can use a credit
card to pay your
estimate of tax due.
See
How To Pay,
later in this
chapter.
Extension beyond 4
months. If you
are still unable to
file your return
within the 4-month
extension period,
you may be able to
get an extension for
2 more months, for a
total of 6 months.
See
Extension beyond
4 months,
earlier.
No
further extension.
An extension of
more than 6 months
will generally not
be granted. However,
if you are outside
the United States
and meet certain
tests, you may be
granted a longer
extension. For more
information, see
Further
extensions
under
When To File and
Pay in
Publication 54.
Individuals
Serving in
Combat Zone
The deadline for
filing your tax return,
paying any tax you may
owe, and filing a claim
for refund is
automatically extended
if you serve in a combat
zone. This applies to
members of the Armed
Forces, as well as
merchant marines serving
aboard vessels under the
operational control of
the Department of
Defense, Red Cross
personnel, accredited
correspondents, and
civilians under the
direction of the Armed
Forces in support of the
Armed Forces.
Combat zone.
For purposes of
the automatic
extension, the term
“combat
zone”
includes the
following areas.
The
Persian Gulf
area,
effective
January 17,
1991.
The
qualified
hazardous
duty area of
Bosnia and
Herzegovina,
Croatia, and
Macedonia,
effective
November 21,
1995.
The
qualified
hazardous
duty area of
the Federal
Republic of
Yugoslavia
(Serbia/Montenegro),
Albania, the
Adriatic
Sea, and the
Ionian Sea
north of the
39th
parallel,
effective
March 24,
1999.
Afghanistan,
effective
September
19, 2001.
See Publication 3,
Armed Forces' Tax
Guide, for
information about
other tax benefits
available to
military personnel
serving in a combat
zone.
Extension period.
The deadline for
filing your return,
paying any tax due,
and filing a claim
for refund is
extended for at
least 180 days after
the later of:
The last
day you are
in a combat
zone or the
last day the
area
qualifies as
a combat
zone, or
The last
day of any
continuous
qualified
hospitalization
for injury
from service
in the
combat zone.
In addition to the
180 days, your
deadline is also
extended by the
number of days you
had left to take
action with the IRS
when you entered the
combat zone. For
example, you have 3½
months (January
1–April 15) to file
your tax return. Any
days left in this
period when you
entered the combat
zone (or the entire
3½ months if you
entered it before
the beginning of the
year) are added to
the 180 days. See
Extension of
Deadline
in Publication 3 for
more information.
The above rules on
the extension for
filing your return
also apply when you
are deployed outside
the United States
(away from your
permanent duty
station) while
participating in a
designated
contingency
operation.
How Do I Prepare My
Return?
This section explains how to
get ready to fill in your tax
return and when to report your
income and expenses. It also
explains how to complete certain
sections of the form. You may
find Table 1-6 helpful when you
prepare your return.
In most cases, based on what
you filed last year, the IRS
will mail you Form 1040, Form
1040A, or Form 1040EZ with
related instructions, or a
TeleFile package. Before you
fill in the form, look at the
form instructions to see if you
need, or would benefit from
filing, a different form this
year. Also see if you need any
additional forms or schedules.
You may also want to read
Does
My Return Have To Be on Paper,
earlier.
If you do not receive a tax
return package in the mail, or
if you need other forms, you can
order them or print them from
the Internet. See
How
To Get Tax Help in
the back of this publication.
Table 1-6.
Six Steps for
Preparing Your
Return
1
—
Get your records
together for
income and
expenses.
2
—
Get the forms,
schedules, and
publications you
need.
3
—
Fill in your
return.
4
—
Check your
return to make
sure it is
correct.
5
—
Sign and date
your return.
6
—
Attach all
required forms
and schedules.
Substitute
tax forms.
You cannot use your own
version of a tax form unless
it meets the requirements
explained in Publication
1167, General Rules and
Specifications for
Substitute Forms and
Schedules.
Form W-2.
If you are an employee,
you should receive Form W-2
from your employer. You will
need the information from
this form to prepare your
return. See
Form W-2 under
Credit for Withholding and
Estimated Tax in
chapter 5.
If you do not receive Form
W-2 by January 31, 2005,
contact your employer. If
you still do not get the
form by February 15, the IRS
can help you by requesting
the form from your employer.
When you request IRS help,
be prepared to provide the
following information.
Your name,
address (including
zip code), and phone
number.
Your SSN.
Your dates of
employment.
Your employer's
name, address
(including zip
code), and phone
number.
Form 1099.
If you received certain
types of income, you may
receive a Form 1099. For
example, if you received
taxable interest of $10 or
more, the payer generally
must give you a Form
1099-INT. If you have not
received it by January 31,
2005, contact the payer. If
you still do not get the
form by February 15, call
the IRS for help.
When Do I
Report My Income
and Expenses?
You must figure your
taxable income on the basis
of a tax year. A “tax
year” is an annual
accounting period used for
keeping records and
reporting income and
expenses. You must account
for your income and expenses
in a way that clearly shows
your taxable income. The way
you do this is called an
accounting method. This
section explains which
accounting periods and
methods you can use.
Accounting
Periods
Most individual tax
returns cover a calendar
year—the 12 months from
January 1 through
December 31. If you do
not use a calendar year,
your accounting period
is a fiscal year. A
regular fiscal year is a
12-month period that
ends on the last day of
any month except
December. A 52-53-week
fiscal year varies from
52 to 53 weeks and
always ends on the same
day of the week.
You choose your
accounting period (tax
year) when you file your
first income tax return.
It cannot be longer than
12 months.
More information.
For more
information on
accounting periods,
including how to
change your
accounting period,
see Publication 538,
Accounting Periods
and Methods.
Accounting
Methods
Your accounting
method is the way you
account for your income
and expenses. Most
taxpayers use either the
cash method or an
accrual method. You
choose a method when you
file your first income
tax return. If you want
to change your
accounting method after
that, you generally must
get IRS approval.
Cash method.
If you use this
method, report all
items of income in
the year in which
you actually or
constructively
receive them.
Generally, you
deduct all expenses
in the year you
actually pay them.
This is the method
most individual
taxpayers use.
Constructive
receipt.
Generally, you
constructively
receive income when
it is credited to
your account or set
apart in any way
that makes it
available to you.
You do not need to
have physical
possession of it.
For example,
interest credited to
your bank account on
December 31, 2004,
is taxable income to
you in 2004 if you
could have withdrawn
it in 2004 (even if
the amount is not
entered in your
passbook or
withdrawn until
2005).
Garnisheed
wages.
If your employer
uses your wages to
pay your debts, or
if your wages are
attached or
garnisheed, the full
amount is
constructively
received by you. You
must include these
wages in income for
the year you would
have received them.
Brokerage and
other accounts.
Profits from a
brokerage account,
or similar account,
are fully taxable in
the year you earn
them. This is true
even if:
You do
not withdraw
the
earnings,
The
credit
balance in
the account
may be
reduced or
eliminated
by losses in
later years,
or
Current
profits are
used to
reduce or
eliminate a
debit
balance from
previous
years.
Debts paid for
you.
If another person
cancels or pays your
debts (but not as a
gift or loan), you
have constructively
received the amount
and generally must
include it in your
gross income for the
year. See
Canceled Debts
in chapter 13 for
more information.
Payment to third
party.
If a third party
is paid income from
property you own,
you have
constructively
received the income.
It is the same as if
you had actually
received the income
and paid it to the
third party.
Payment to an
agent.
Income an agent
receives for you is
income you
constructively
received in the year
the agent receives
it. If you indicate
in a contract that
your income is to be
paid to another
person, you must
include the amount
in your gross income
when the other
person receives it.
Check received
or available.
A valid check that
was made available
to you before the
end of the tax year
is constructively
received by you in
that year. A check
that was “made
available to you”
includes a check you
have already
received, but not
cashed or deposited.
It also includes,
for example, your
last paycheck of the
year that your
employer made
available for you to
pick up at the
office before the
end of the year. It
is constructively
received by you in
that year whether or
not you pick it up
before the end of
the year or wait to
receive it by mail
after the end of the
year.
No constructive
receipt.
There may be facts
to show that you did
not constructively
receive income.
Example.
Alice
Johnson, a
teacher, agreed
to her school
board's
condition that,
in her absence,
she would
receive only the
difference
between her
regular salary
and the salary
of a substitute
teacher hired by
the school
board.
Therefore, Alice
did not
constructively
receive the
amount by which
her salary was
reduced to pay
the substitute
teacher.
Accrual method.
If you use an
accrual method, you
generally report
income when you earn
it, rather than when
you receive it. You
generally deduct
your expenses when
you incur them,
rather than when you
pay them.
Income paid in
advance.
An advance payment
of income is
generally included
in gross income in
the year you receive
it. Your method of
accounting does not
matter as long as
the income is
available to you. An
advance payment may
include rent or
interest you receive
in advance and pay
for services you
will perform later.
Beginning in 2004,
a limited deferral
until the next tax
year may be allowed
for certain advance
payments. See
Publication 538 for
specific
information.
Additional
information.
For more
information on
accounting methods,
including how to
change your
accounting method,
get Publication 538.
Social
Security Number
You must enter your
social security number (SSN)
in the space provided on
your return. Be sure the SSN
on your return is the same
as the SSN on your social
security card. If you are
married, enter the SSNs for
both you and your spouse,
whether you file jointly or
separately.
If you are filing a joint
return, write the SSNs in
the same order as the names.
Use this same order in
submitting other forms and
documents to the IRS.
Name
change.
If you changed your
name because of
marriage, divorce, etc.,
immediately notify your
Social Security
Administration (SSA)
office so the name on
your tax return is the
same as the one the SSA
has on its records. This
will help prevent delays
in issuing your refund
and safeguard your
future social security
benefits.
Dependent's social
security number.
You must provide the
SSN of each dependent
you claim, regardless of
the dependent's age.
This requirement applies
to all dependents (not
just your children)
claimed on your tax
return.
Exception.If your child was
born and died in 2004
and you do not have an
SSN for the child, you
may attach a copy of the
child's birth
certificate instead. If
you do, enter “DIED”
in column (2) of line 6c
(Form 1040 or 1040A).
No
social security number.
File Form SS-5,
Application for a Social
Security Card, with your
local SSA office to get
an SSN for yourself or
your dependent. It
usually takes about 2
weeks to get an SSN. If
you or your dependent is
not eligible for an SSN,
see
Individual taxpayer
identification number
(ITIN),
later.
If you are a U.S.
citizen or resident
alien, you must show
proof of age, identity,
and citizenship or alien
status with your Form
SS-5. If you are 12 or
older and have never
been assigned an SSN,
you must appear in
person with this proof
at an SSA office.
Form SS-5 is available
at any SSA office, on
the Internet at
www.socialsecurity.gov,
or by calling
1-800-772-1213. If you
have any questions about
which documents you can
use as proof of age,
identity, or
citizenship, contact
your SSA office.
If your dependent does
not have an SSN by the
time your return is due,
you may want to ask for
an extension of time to
file, as explained
earlier under
When Do I Have To
File.
If you do not provide
a required SSN or if you
provide an incorrect
SSN, your tax may be
increased and any refund
may be reduced.
Adoption taxpayer
identification number
(ATIN).
If you are in the
process of adopting a
child who is a U.S.
citizen or resident and
cannot get an SSN for
the child until the
adoption is final, you
can apply for an ATIN to
use instead of an SSN.
File Form W-7A,
Application for Taxpayer
Identification Number
for Pending U.S.
Adoptions, with the IRS
to get an ATIN if all of
the following are true.
You have a
child living
with you who was
placed in your
home for legal
adoption by an
authorized
placement
agency.
You cannot
get the child's
existing SSN
even though you
have made a
reasonable
attempt to get
it from the
birth parents,
the placement
agency, and
other persons.
You cannot
get an SSN for
the child from
the SSA because,
for example, the
adoption is not
final.
You cannot
get an
Individual
Taxpayer
Identification
Number (ITIN)
(discussed
later) for the
child.
You are
eligible to
claim the child
as a dependent
on your tax
return.
After the adoption is
final, you must apply
for an SSN for the
child. You cannot
continue using the ATIN.
See Form W-7A for more
information.
Nonresident alien
spouse.
If your spouse is a
nonresident alien and
you file a joint or
separate return, your
spouse must have either
an SSN or an ITIN. If
your spouse is not
eligible for an SSN, see
the next discussion.
Individual taxpayer
identification number
(ITIN).
The IRS will issue you
an ITIN if you are a
nonresident or resident
alien and you do not
have and are not
eligible to get an SSN.
To apply for an ITIN,
file Form W-7 with the
IRS. It usually takes
about 4 to 6 weeks to
get an ITIN. Enter this
number on your tax
return wherever your SSN
is requested.
If you are
applying for an ITIN in
order to file your tax
return, attach your
completed tax return to
your Form W-7. See the
Form W-7 instructions
for how and where to
file.
Alien dependent.
If your dependent is a
nonresident or resident
alien who does not have
and is not eligible to
get an SSN, file Form
W-7 with the IRS to
apply for an ITIN. Enter
this number on your
return wherever the
dependent's SSN is
requested.
An ITIN is for tax
use only. It does not
entitle you or your
dependent to social security
benefits or change the
employment or immigration
status of either of you
under U.S. law.
Penalty
for not providing social
security number.
If you do not include
your SSN or the SSN of
your spouse or dependent
as required, you may
have to pay a penalty.
See the discussion on
Penalties,
later, for more
information.
SSN on
correspondence.
If you write to the
IRS about your tax
account, be sure to
include your SSN (and
the name and SSN of your
spouse, if you filed a
joint return) in your
correspondence. Because
your SSN is used to
identify your account,
this helps the IRS
respond to your
correspondence promptly.
Presidential
Election
Campaign Fund
This fund was set up to
help pay for presidential
election campaigns. If you
have a tax liability of at
least $3, you may have $3 of
your tax liability go to
this fund by checking the “Yes”
box on Form 1040, Form
1040A, or Form 1040EZ. If
you are filing a joint
return and have a tax
liability of at least $6,
your spouse may also have $3
go to the fund. If you check
“Yes,”
it will not change the tax
you pay or the refund you
will receive.
Computations
The following information
on entering numbers on your
tax return may be useful in
making the return easier to
complete.
Rounding off dollars.
You may round off
cents to whole dollars
on your return and
schedules. If you do
round to whole dollars,
you must round all
amounts. To round, drop
amounts under 50 cents
and increase amounts
from 50 to 99 cents to
the next dollar. For
example, $1.39 becomes
$1 and $2.50 becomes $3.
If you have to add two
or more amounts to
figure the amount to
enter on a line, include
cents when adding the
amounts and round off
only the total.
Example.
You receive two
Forms W-2: one
showing wages of
$5,000.55 and one
showing wages of
$18,500.73. On Form
1040, line 7, you
would enter $23,501
($5,000.55 +
$18,500.73 =
$23,501.28), not
$23,502 ($5,001 +
$18,501).
Equal
amounts.
If you are asked to
enter the smaller or
larger of two equal
amounts, enter that
amount.
Example.
Line 1 is $500.
Line 3 is $500. Line
5 asks you to enter
the smaller of line
1 or 3. Enter $500
on line 5.
Negative amounts.
If you need to enter a
negative amount, put the
amount in parentheses
rather than using a
minus sign. To combine
positive and negative
amounts, add all the
positive amounts
together and then
subtract the negative
amounts.
Attachments
Depending on the form you
file and the items reported
on your return, you may have
to complete additional
schedules and forms and
attach them to your return.
You may be able to
file a paperless return
using IRS e-file . There's
nothing to sign, attach, or
mail, not even your Forms
W-2.
Form
W-2.
Form W-2 is a
statement from your
employer of wages and
other compensation paid
to you and taxes
withheld from your pay.
You should have a Form
W-2 from each employer.
Be sure to attach a copy
of Form W-2 in the place
indicated on the front
page of your return.
Attach it only to the
front page of your
return, not to any
attachments. For more
information, see
Form W-2
in chapter 5.
If you received a Form
1099-R, Distributions
From Pensions,
Annuities, Retirement or
Profit-Sharing Plans,
IRAs, Insurance
Contracts, etc., showing
federal income tax
withheld, attach a copy
of that form in the
place indicated on the
front page of your
return.
Form
1040EZ.
There are no
additional schedules to
file with Form 1040EZ.
Form
1040A.
Attach the additional
schedules and forms that
you had to complete
behind the Form 1040A in
order by number. If you
are filing Schedule EIC,
put it last. Do not
attach items unless
required to do so.
Form
1040.
Attach any forms and
schedules behind Form
1040 in order of the “Attachment
Sequence Number”
shown in the upper right
corner of the form or
schedule. Then arrange
all other statements or
attachments in the same
order as the forms and
schedules they relate to
and attach them last. Do
not attach items unless
required to do so.
Third Party
Designee
You can authorize the IRS
to discuss your return with
a friend, family member, or
any other person you choose.
If you check the “Yes”
box in the
Third party designee
area of your 2004 tax return
and provide the information
required, you are
authorizing:
The IRS to call
the designee to
answer any questions
that arise during
the processing of
your return, and
The designee to:
Give
information
that is
missing from
your return
to the IRS,
Call the
IRS for
information
about the
processing
of your
return or
the status
of your
refund or
payments,
Receive
copies of
notices or
transcripts
related to
your return,
upon
request, and
Respond
to certain
IRS notices
about math
errors,
offsets (see
Refunds,
later), and
return
preparation.
The authorization will
automatically end no later
than the due date (without
any extensions) for filing
your 2005 tax return. This
is April 17, 2006, for most
people.
See your form
instructions for more
information.
If you want to allow
the paid preparer who signed
your return to discuss it
with the IRS, just enter “Preparer”
in the space for the
designee's name.
Signatures
You must sign and date
your return. If you file a
joint return, both you and
your spouse must sign the
return, even if only one of
you had income.
If you file a joint
return, both spouses are
generally liable for the
tax, and the entire tax
liability may be assessed
against either spouse. See
chapter 2.
If you e-file your
return, you can use an
electronic signature to sign
your return. See Does My
Return Have To Be on Paper ,
earlier.
If you are due a refund,
it cannot be issued unless
you have signed your return.
Enter your occupation in
the space provided in the
signature section. If you
file a joint return, enter
both your occupation and
your spouse's occupation.
Entering your daytime phone
number may help speed the
processing of your return.
When
someone can sign for
you.
You can appoint an
agent to sign your
return if you are:
Unable to
sign the return
because of
disease or
injury,
Absent from
the United
States for a
continuous
period of at
least 60 days
before the due
date for filing
your return, or
Given
permission to do
so by the IRS
office in your
area.
Power of attorney.
A return signed by an
agent in any of these
cases must have a power
of attorney (POA)
attached that authorizes
the agent to sign for
you. You can use a POA
that states that the
agent is granted
authority to sign the
return, or you can use
Form 2848, Power of
Attorney and Declaration
of Representative. Part
I of Form 2848 must
state that the agent is
granted authority to
sign the return.
Unable to sign.
If the taxpayer is
mentally incompetent and
cannot sign the return,
it must be signed by a
court-appointed
representative who can
act for the taxpayer.
If the taxpayer is
mentally competent but
physically unable to
sign the return or POA,
a valid “signature”
is defined under state
law. It can be anything
that clearly indicates
the taxpayer's intent to
sign. For example, the
taxpayer's “X”
with the signatures of
two witnesses might be
considered a valid
signature under a
state's law.
Spouse
unable to sign.
If your spouse is
unable to sign for any
reason, see
Signing a joint
return in
chapter 2.
Child's
return. If a child
has to file a tax return
but cannot sign the
return, the child's
parent, guardian, or
another legally
responsible person must
sign the child's name,
followed by the words “By
(your signature), parent
for minor child.”
Paid
Preparer
Generally, anyone you pay
to prepare, assist in
preparing, or review your
tax return must sign it and
fill in the other blanks in
the paid preparer's area of
your return.
A paid preparer can sign
the return manually or use a
rubber stamp, mechanical
device, or computer software
program. The preparer is
personally responsible for
affixing his or her
signature to the return.
If the preparer is
self-employed (that is, not
employed by any person or
business to prepare the
return), he or she should
check the self-employed box
in the
Paid Preparer's Use Only
space on the return.
The preparer must give
you a copy of your return in
addition to the copy filed
with the IRS.
If you prepare your own
return, leave this area
blank. If another person
prepares your return and
does not charge you, that
person should not sign your
return.
If you have questions
about whether a preparer
must sign your return,
contact any IRS office.
Refunds
When you complete your
return, you will determine
if you paid more income tax
than you owed. If so, you
can get a refund of the
amount you overpaid or, if
you file Form 1040 or Form
1040A, you can choose to
apply all or part of the
overpayment to your next
year's (2005) estimated tax.
You cannot have your
overpayment applied to your
2005 estimated tax if you
file Form 1040EZ.
If you choose to have
a 2004 overpayment applied
to your 2005 estimated tax,
you cannot change your mind
and have any of it refunded
to you after the due date
(without extensions) of your
2004 return.
Follow the form
instructions to complete the
entries to claim your refund
and/or to apply your
overpayment to your 2005
estimated tax.
If your refund for
2004 is large, you may want
to decrease the amount of
income tax withheld from
your pay in 2005. See
chapter 5 for more
information.
Instead of getting a
paper check, you may be able
to have your refund
deposited directly into your
account at a bank or other
financial institution.
Follow the form instructions
to request direct deposit.
If the direct deposit
cannot be done, the IRS will
send a check instead.
Overpayment less than
one dollar.
If your overpayment is
less than one dollar,
you will not get a
refund unless you ask
for it in writing.
Cashing
your refund check.
Cash your tax refund
check soon after you
receive it. Checks not
cashed within 12 months
of the date they are
issued will be canceled
and the proceeds
returned to the IRS.
If your check has been
canceled, you can apply
to the IRS to have it
reissued.
Refund
more or less than
expected.
If you receive a check
for a refund you are not
entitled to, or for an
overpayment that should
have been credited to
estimated tax, do not
cash the check. Call the
IRS.
If you receive a check
for more than the refund
you claimed, do not cash
the check until you
receive a notice
explaining the
difference.
If your refund check
is for less than you
claimed, it should be
accompanied by a notice
explaining the
difference. Cashing the
check does not stop you
from claiming an
additional amount of
refund.
If you did not receive
a notice and you have
any questions about the
amount of your refund,
you should wait 2 weeks.
If you still have not
received a notice, call
the IRS.
Offset
against debts.
If you are due a
refund but have not paid
certain amounts you owe,
all or part of your
refund may be used to
pay all or part of the
past-due amount. This
includes past-due
federal income tax,
other federal debts
(such as student loans),
state income tax, and
child and spousal
support payments. You
will be notified if the
refund you claimed has
been offset against your
debts.
Joint return and injured
spouse.
When a joint return is
filed and only one
spouse owes a past-due
amount, the other spouse
can be considered an
injured spouse. An
injured spouse can get a
refund for his or her
share of the overpayment
that would otherwise be
used to pay the past-due
amount.
To be considered an
injured spouse, you
must:
File a joint
return, and
Have
reported income
(such as wages,
interest, etc.),
or
Have made
and reported tax
payments (such
as federal
income tax
withheld from
wages or
estimated tax
payments), or
claimed the
earned income
credit or other
refundable
credit, and
Not be
required to pay
the past-due
amount.
Note.
If the injured
spouse's permanent
home is in a
community property
state, then the
injured spouse must
only meet (1) and
(4) above. For more
information, see
Publication 555,
Community Property.
If you are an
injured spouse, you must
file Form 8379, Injured
Spouse Claim and
Allocation, to have your
portion of the
overpayment refunded to
you. Follow the
instructions on the
form.
If you have not filed
your joint return and
you know that your joint
refund will be offset,
file Form 8379 with your
return. You should
receive your refund
within 14 weeks from the
date the paper return is
filed or within 11 weeks
from the date the return
is filed electronically.
If you filed your
joint return and your
joint refund was offset,
file Form 8379 by
itself. When filed after
offset, it can take up
to 8 weeks to receive
your refund. Do not
attach the previously
filed tax return, but do
include copies of all
Forms W-2 and W-2G for
both spouses and any
Forms 1099 that show
income tax withheld.
Generally, you
must file Form 8379 no
later than 6 years from
the date you are
notified of the offset
(3 years if the offset
was used to pay federal
tax debt). A separate
Form 8379 must be filed
for each tax year to be
considered.
An injured spouse
claim is different from
an innocent spouse
relief request. An
injured spouse uses Form
8379 to request the
division of the tax
overpayment attributed
to each spouse. An
innocent spouse uses
Form 8857, Request for
Innocent Spouse Relief,
to request relief from
joint liability for tax,
interest, and penalties
on a joint return for
items of the other
spouse (or former
spouse) that were
incorrectly reported on
the joint return. For
information on innocent
spouses, see Relief from
joint liability under
Filing a Joint Return in
chapter 2.
Amount You
Owe
When you complete your
return, you will determine
if you have paid the full
amount of tax that you owe.
If you owe additional tax,
you should pay it with your
return.
If the IRS figures your
tax for you, you will
receive a bill for any tax
that is due. You should pay
this bill within 30 days (or
by the due date of your
return, if later). See
Tax Figured by IRS
in chapter 32.
If you do not pay
your tax when due, you may
have to pay a failure-to-pay
penalty. See Penalties ,
later. For more information
about your balance due, see
Publication 594, The IRS
Collection Process.
If the amount you owe
for 2004 is large, you may
want to increase the amount
of income tax withheld from
your pay or make estimated
tax payments for 2005. See
chapter 5 for more
information.
How To Pay
If you have an amount
due on your tax return,
you can pay by check,
money order, or credit
card. If you filed
electronically, you also
may be able to make your
payment electronically.
You do not have
to pay if the amount you
owe is less than $1.
Check or money
order.
If you pay by
check or money
order, make it out
to the “United
States Treasury.”
Show your correct
name, address, SSN,
daytime phone
number, and the tax
year and form number
on the front of your
check or money
order. If you are
filing a joint
return, enter the
SSN shown first on
your tax return.
For example,
if you file Form
1040 for 2004 and
you owe additional
tax, show your name,
address, SSN,
daytime phone
number, and “2004
Form 1040” on
the front of your
check or money
order. If you file
an amended return
(Form 1040X) for
2003 and you owe
tax, show your name,
address, SSN,
daytime phone
number, and “2003
Form 1040X”
on the front of your
check or money
order.
Enclose your
payment with your
return, but do not
attach it to the
form. If you filed
Form 1040, please
complete Form
1040-V, Payment
Voucher, and enclose
it with your payment
and return. Form
1040-V will help us
process your payment
more accurately and
efficiently. Follow
the instructions
that come with the
form.
Do not mail cash
with your return. If
you pay cash at an
IRS office, keep the
receipt as part of
your records.
Payment not
honored.
If your check or
money order is not
honored by your bank
(or other financial
institution) and the
IRS does not receive
the funds, you still
owe the tax. In
addition, you may be
subject to a
dishonored check
penalty.
Electronic payment
options.
Electronic payment
options are
convenient, safe and
secure methods for
paying individual
income taxes.
There's no check to
write, money order
to buy, or voucher
to mail. Payments
can be made 24 hours
a day, 7 days a
week.
Credit card.
You can use your
American Express®,
Discover®,
MasterCard®, or
Visa® credit card.
To pay by credit
card, call a service
provider and follow
the recorded
instructions. You
can also pay by
credit card over the
Internet using a
service provider's
web site.
The service
providers charge a
convenience fee
based on the amount
you are paying. Fees
may vary between the
providers. You will
be told what the fee
is during the
transaction and will
have the option to
continue or end the
transaction. You may
also obtain the
convenience fee by
calling the service
provider's automated
customer service
telephone number or
visiting their
respective web site.
Do not add
the convenience fee
to your tax payment.
If you pay by
credit card, write
the confirmation
number you were
given at the end of
the transaction and
the tax payment
amount in the upper
left corner of page
1 of your tax
return.
You can
e-file
and pay in a single
step by authorizing
a credit card
payment. This option
is available through
some tax software
packages and tax
professionals. You
can also pay by
credit card using
the telephone or the
Internet.
Electronic funds
withdrawal.
You can
e-file
and pay in a single
step by authorizing
an electronic funds
withdrawal from your
checking or savings
account. This option
is available through
tax software
packages, tax
professionals, and
TeleFile. If you
select this payment
option, you will
need to have your
account number, your
financial
institution's
routing transit
number, and account
type (checking or
savings). You can
schedule the payment
for any future date
up to and including
the return due date
(April 15, 2005).
Be sure to
check with your
financial
institution to make
sure that an
electronic funds
withdrawal is
allowed and to get
the correct routing
and account numbers.
Electronic
Federal Tax Payment
System (EFTPS).
EFTPS is a free
tax payment system
that all individual
and business
taxpayers can use.
You can make
payments online or
by phone.
Here are just a
few of the benefits
of this easy-to-use
system.
Convenient
and
flexible.
You can use
it to
schedule
payments in
advance. For
example, you
can schedule
estimated
tax payments
(Form
1040-ES) or
installment
agreement
payments
weekly,
monthly, or
quarterly.
Fast and
accurate.
You can make
a tax
payment in
minutes.
Because
there are
verification
steps along
the way, you
can check
and review
your
information
before
sending it.
Safe and
secure. It
offers the
highest
available
levels of
security.
Every
transaction
receives an
immediate
confirmation.
For more
information or
details on
enrolling, visit
www.EFTPS.gov or
call EFTPS Customer
Service at
1-800-555-4477.
Estimated tax
payments.
Do not include any
2005 estimated tax
payment in the
payment for your
2004 income tax
return. See chapter
5 for information on
how to pay estimated
tax.
Interest
Interest is charged
on tax you do not pay by
the due date of your
return. Interest is
charged even if you get
an extension of time for
filing.
If the IRS
figures your tax for
you, interest cannot
start earlier than the
31st day after the IRS
sends you a bill. For
information, see Tax
Figured by IRS in
chapter 32.
Interest on
penalties.
Interest is
charged on the
failure-to-file
penalty, the
accuracy-related
penalty, and the
fraud penalty from
the due date of the
return (including
extensions) to the
date of payment.
Interest on other
penalties starts on
the date of notice
and demand, but is
not charged on
penalties paid
within 21 calendar
days from the date
of the notice (or
within 10 business
days if the notice
is for $100,000 or
more).
Interest due to IRS
error or delay.
All or part of any
interest you were
charged can be
forgiven if the
interest is due to
an unreasonable
error or delay by an
officer or employee
of the IRS in
performing a
ministerial or
managerial act.
A ministerial act
is a procedural or
mechanical act that
occurs during the
processing of your
case. A managerial
act includes
personnel transfers
and extended
personnel training.
A decision
concerning the
proper application
of federal tax law
is not a ministerial
or managerial act.
The interest can
be forgiven only if
you are not
responsible in any
important way for
the error or delay
and the IRS has
notified you in
writing of the
deficiency or
payment. For more
information, get
Publication 556,
Examination of
Returns, Appeal
Rights, and Claims
for Refund.
Interest and certain
penalties may also be
suspended for a limited
period if you filed your
return by the due date
(including extensions)
and the IRS does not
provide you with a
notice specifically
stating your liability
and the basis for it
before the close of the
18-month period
beginning on the later
of:
The date the
return is filed,
or
The due date
of the return
without regard
to extensions.
For more information,
get Publication 556.
Installment
Agreement
If you cannot pay the
full amount due with
your return, you can ask
to make monthly
installment payments for
the full or a partial
amount. However, you
will be charged interest
and may be charged a
late payment penalty on
the tax not paid by
April 15, 2005, even if
your request to pay in
installments is granted.
If your request is
granted, you must also
pay a fee. To limit the
interest and penalty
charges, pay as much of
the tax as possible with
your return. But before
requesting an
installment agreement,
you should consider
other less costly
alternatives, such as a
bank loan.
To ask for an
installment agreement,
use Form 9465,
Installment Agreement
Request. You should
receive a response to
your request within 30
days. But if you file
your return after March
31, it may take longer
for a reply.
In addition to paying
by check or money order,
you can use a credit
card or EFTPS to make
installment agreement
payments. See
Credit card
and
Electronic Federal
Tax Payment System
(EFTPS),
under
How To Pay,
earlier.
Guaranteed
availability of
installment
agreement. The
IRS must agree to
accept the full
payment of your tax
liability in
installments if, as
of the date you
offer to enter into
the agreement:
Your
total taxes
(not
counting
interest,
penalties,
additions to
the tax, or
additional
amounts) do
not exceed
$10,000,
In the
last 5
years, you
(and your
spouse if
the
liability
relates to a
joint
return) have
not:
Failed
to
file
any
required
income
tax
return,
Failed
to
pay
any
tax
shown
on
any
such
return,
or
Entered
into
an
installment
agreement
for
the
payment
of
any
income
tax,
You show
you cannot
pay your
income tax
in full when
due,
The tax
will be paid
in full in 3
years or
less, and
You
agree to
comply with
the tax laws
while your
agreement is
in effect.
Gift To
Reduce Debt Held
by the Public
You can make a
contribution (gift) to
reduce debt held by the
public. If you wish to do
so, make a separate check
payable to “Bureau
of the Public Debt.”
Send your check to:
Bureau of the Public
Debt
Department G
P.O. Box 2188
Parkersburg, WV
26106-2188.
Or, enclose your separate
check in the envelope with
your income tax return. Do
not add this gift to any tax
you owe.
You can deduct this gift
as a charitable contribution
on next year's tax return if
you itemize your deductions
on Schedule A (Form 1040).
Peel-Off
Address Label
After you have completed
your return, peel off the
label with your name and
address from the back of
your tax return package and
place it in the appropriate
area of the Form 1040, Form
1040A, or Form 1040EZ you
send to the IRS. If you have
someone prepare your return,
give that person your label
to use on your tax return.
If you file
electronically and you are
not eligible or choose not
to sign your return using
your PIN, use your label on
Form 8453 or 8453-OL. (More
information on electronic
filing is found earlier in
this chapter.)
The label helps the IRS
to correctly identify your
account. It also saves
processing costs and speeds
up processing so that
refunds can be issued
sooner.
You must write your
SSN in the spaces provided
on your tax return.
Correcting the label.
Make necessary name
and address changes on
the label. If you have
an apartment number that
is not shown on the
label, please write it
in. If you changed your
name, see the discussion
under
Social Security
Number,
earlier.
No
label.
If you did not receive
a tax return package
with a label, print or
type your name and
address in the spaces
provided at the top of
Form 1040 or Form 1040A.
If you are married
filing a separate
return, do not enter
your spouse's name in
the space at the top.
Instead, enter his or
her name in the space
provided on line 3.
If you file Form
1040EZ and you do not
have a label, print or
type this information in
the spaces provided.
P.O.
box.
If your post office
does not deliver mail to
your street address and
you have a P.O. box,
print your P.O. box
number on the line for
your present home
address instead of your
street address.
Foreign
address.
If your address is
outside the United
States or its
possessions or
territories, enter the
information on the line
for “City,
town or post office,
state, and ZIP code”
in the following order:
City,
Province or
state, and
Name of
foreign country.
(Do not
abbreviate the
name of the
country.)
Follow the country's
practice for entering
the postal code.
Where Do I File?
After you complete your
return, you must send it to the
IRS. You can mail it or you may
be able to file it
electronically. See
Does
My Return Have To Be on Paper,
earlier.
Mailing
your return.
If an addressed envelope
came with your tax forms
package, you should mail
your return in that
envelope.
If you do not have an
addressed envelope or if you
moved during the year, mail
your return to the address
shown at the end of this
publication for the area
where you now live.
What Happens After I
File?
After you send your return to
the IRS, you may have some
questions. This section
discusses concerns you may have
about recordkeeping, your
refund, and what to do if you
move.
What Records
Should I Keep?
You must keep records
so that you can prepare a
complete and accurate income
tax return. The law does not
require any special form of
records. However, you should
keep all receipts, canceled
checks or other proof of
payment, and any other
records to support any
deductions or credits you
claim.
If you file a claim for
refund, you must be able to
prove by your records that
you have overpaid your tax.
How
long to keep records.
You must keep your
records for as long as
they are important for
the federal tax law.
Keep records that
support an item of
income or a deduction
appearing on a return
until the period of
limitations for the
return runs out. (A
period of limitations is
the period of time after
which no legal action
can be brought.) For
assessment of tax you
owe, this generally is 3
years from the date you
filed the return. For
filing a claim for
credit or refund, this
generally is 3 years
from the date you filed
the original return, or
2 years from the date
you paid the tax,
whichever is later.
Returns filed before the
due date are treated as
filed on the due date.
If you did not report
income that you should
have reported on your
return, and it is more
than 25% of the income
shown on the return, the
period of limitations
does not run out until 6
years after you filed
the return. If a return
is false or fraudulent
with intent to evade
tax, or if no return is
filed, an action can
generally be brought at
any time.
You may need to keep
records relating to the
basis of property longer
than the period of
limitations. Keep those
records as long as they
are important in
figuring the basis of
the original or
replacement property.
Generally, this means
for as long as you own
the property and, after
you dispose of it, for
the period of
limitations that applies
to you. See chapter 14
for information on
basis.
Note.
If you receive a
Form W-2, keep Copy C
until you begin
receiving social
security benefits. This
will help protect your
benefits in case there
is a question about your
work record or earnings
in a particular year.
Review the information
shown on your annual
(for workers over age
25) Social Security
Statement.
Copies
of returns.
You should keep copies
of tax returns you have
filed and the tax forms
package as part of your
records. They may be
helpful in amending
filed returns or
preparing future ones.
If you need a copy
of a prior year tax
return, you can get it
from the IRS. Use Form
4506, Request for Copy
of Tax Return. There is
a charge for a copy of a
return, which you must
pay with Form 4506. It
may take up to 60 days
to process your request.
Transcript of tax
return.
If you just need
information from your
return, you can order a
transcript by calling
1-800-829-1040, or using
Form 4506-T, Request for
Transcript of Tax
Return. There is no fee
for a transcript. Most
requests will be
processed within 10
business days.
Return transcript.
This is available for
the current year and the
3 preceding years. A tax
return transcript
usually contains the
information that a third
party (such as a
mortgage company)
requires. You will get
the following
information from your
original return.
Type of
return filed.
Filing
status.
Tax shown on
return.
Adjusted
gross income.
Mortgage
interest.
Real estate
tax deduction.
Taxable
income.
Number of
exemptions.
Federal
income tax
withheld.
Refund per
return.
Earned
income credit.
Self-employment
tax paid.
Account transcript.
This shows any later
changes that you or the
IRS made to your
original return. In
addition to the items
shown on a tax return
transcript, you will
receive the following
information.
Amount of
estimated
payments.
Penalty paid
or assessed.
Interest
paid or
assessed.
Interest
paid to the
taxpayer by the
IRS.
Balance due
with accruals.
More
information. For
more information on
recordkeeping, get
Publication 552,
Recordkeeping for
Individuals.
Interest on
Refunds
If you are due a refund,
you may get interest on it.
The interest rates are
adjusted quarterly.
If the refund is made
within 45 days after the due
date of your return, no
interest will be paid. If
you file your return after
the due date (including
extensions), no interest
will be paid if the refund
is made within 45 days after
the date you filed. If the
refund is not made within
this 45-day period, interest
will be paid from the due
date of the return or from
the date you filed,
whichever is later.
Accepting a refund check
does not change your right
to claim an additional
refund and interest. File
your claim within the period
of time that applies. See
Amended Returns and Claims
for Refund,
later. If you do not accept
a refund check, no more
interest will be paid on the
overpayment included in the
check.
Interest on erroneous
refund.
All or part of any
interest you were
charged on an erroneous
refund generally will be
forgiven. Any interest
charged for the period
before demand for
repayment was made will
be forgiven unless:
You, or a
person related
to you, caused
the erroneous
refund in any
way, or
The refund
is more than
$50,000.
For example, if you
claimed a refund of $100
on your return, but the
IRS made an error and
sent you $1,000, you
would not be charged
interest for the time
you held the $900
difference. You must,
however, repay the $900
when the IRS asks.
Past-Due
Refund
You can check on the
status of your 2004 refund
if it has been at least 6
weeks from the date you
filed your return (3 weeks
if you filed
electronically). Be sure to
have a copy of your 2004 tax
return available because you
will need to know the filing
status, the first SSN shown
on the return, and the exact
whole-dollar amount of the
refund. To check on your
refund, do one of the
following.
Go to
www.irs.gov, and
click on “Where's
My Refund.”
Call
1-800-829-4477 for
automated refund
information and
follow the recorded
instructions.
Call
1-800-829-1954
during the hours
shown in your form
instructions.
Change of
Address
If you have moved, file
your return using your new
address.
If you move after you
filed your return, you
should give the IRS clear
and concise written
notification of your change
of address. Send the
notification to the Internal
Revenue Service Center
serving your old address.
You can use Form 8822,
Change of Address. If you
are expecting a refund, also
notify the post office
serving your old address.
This will help in forwarding
your check to your new
address (unless you chose
direct deposit of your
refund).
Be sure to include your
SSN (and the name and SSN of
your spouse, if you filed a
joint return) in any
correspondence with the IRS.
What If I Made a
Mistake?
Errors may delay your refund
or result in notices being sent
to you. If you discover an
error, you can file an amended
return or claim for refund.
Amended
Returns and
Claims for
Refund
You should correct your
return if, after you have
filed it, you find that:
You did not
report some income,
You claimed
deductions or
credits you should
not have claimed,
You did not
claim deductions or
credits you could
have claimed, or
You should have
claimed a different
filing status. (You
cannot change your
filing status from
married filing
jointly to married
filing separately
after the due date
of the original
return. However, an
executor may be able
to make this change
for a deceased
spouse.)
If you need a copy of
your return, see
Copies of returns
under What Records Should I
Keep, earlier in
this chapter.
Form
1040X.
Use Form 1040X,
Amended U.S. Individual
Income Tax Return, to
correct a return you
have already filed. An
amended tax return
cannot be filed
electronically under the
e-file
system.
Completing Form 1040X.
On Form 1040X, write
your income, deductions,
and credits as you
originally reported them
on your return, the
changes you are making,
and the corrected
amounts. Then figure the
tax on the corrected
amount of taxable income
and the amount you owe
or your refund.
If you owe tax, pay
the full amount with
Form 1040X. The tax owed
will not be subtracted
from any amount you had
credited to your
estimated tax.
If you cannot pay the
full amount due with
your return, you can ask
to make monthly
installment payments.
See
Installment
Agreement,
earlier.
If you overpaid tax,
you can have all or part
of the overpayment
refunded to you, or you
can apply all or part of
it to your estimated
tax. If you choose to
get a refund, it will be
sent separately from any
refund shown on your
original return.
Filing Form 1040X.
After you finish your
Form 1040X, check it to
be sure that it is
complete. Do not forget
to show the year of your
original return and
explain all changes you
made. Be sure to attach
any forms or schedules
needed to explain your
changes. Mail your Form
1040X to the Internal
Revenue Service Center
serving the area where
you now live (as shown
in the instructions to
the form). However, if
you are filing Form
1040X in response to a
notice you received from
the IRS, mail it to the
address shown on the
notice. Do not use the
addresses listed at the
end of this publication.
File a separate form
for each tax year
involved.
Time
for filing a claim for
refund.
Generally, you must
file your claim for a
credit or refund within
3 years after the date
you filed your original
return or within 2 years
after the date you paid
the tax, whichever is
later. Returns filed
before the due date
(without regard to
extensions) are
considered filed on the
due date (even if the
due date was a Saturday,
Sunday, or legal
holiday). These time
periods are suspended
while you are
financially disabled,
discussed later.
If the last day for
claiming a credit or
refund is a Saturday,
Sunday, or legal
holiday, you can file
the claim on the next
business day.
If you do not file a
claim within this
period, you may not be
entitled to a credit or
a refund.
Late-filed return.
If you were due a
refund but you did not
file a return, you
generally must file your
return within 3 years
from the date the return
was due (including
extensions) to get that
refund. Generally, your
return must be
postmarked no later than
3 years from the date
the return was due
(including extensions).
For information on
postmarks, see
Filing on time,
under
When Do I Have To
File,
earlier.
Limit
on amount of refund.
If you file your claim
within 3 years after the
date you filed your
return, the credit or
refund cannot be more
than the part of the tax
paid within the 3-year
period (plus any
extension of time for
filing your return)
immediately before you
filed the claim. This
time period is suspended
while you are
financially disabled,
discussed later.
Tax
paid.
Payments, including
estimated tax payments,
made before the due date
(without regard to
extensions) of the
original return are
considered paid on the
due date. For example,
income tax withheld
during the year is
considered paid on the
due date of the return,
April 15 for most
taxpayers.
Example 1.
You made
estimated tax
payments of $500 and
got an automatic
extension of time to
August 15, 2002, to
file your 2001
income tax return.
When you filed your
return on that date,
you paid an
additional $200 tax.
On August 15, 2005,
you filed an amended
return and claimed a
refund of $700.
Because you filed
your claim within 3
years after you
filed your original
return, you can get
a refund of up to
$700, the tax paid
within the 3 years
plus the 4-month
extension period
immediately before
you filed the claim.
Example 2.
The situation is
the same as in
Example 1,
except you filed
your return on
October 27, 2002, 2½
months after the
extension period
ended. You paid an
additional $200 on
that date. On
October 27, 2005,
you filed an amended
return and claimed a
refund of $700.
Although you filed
your claim within 3
years from the date
you filed your
original return, the
refund was limited
to $200, the tax
paid within the 3
years plus the
4-month extension
period immediately
before you filed the
claim. The estimated
tax of $500 paid
before that period
cannot be refunded
or credited.
If
you file a claim more
than 3 years after you
file your return,
the credit or refund
cannot be more than the
tax you paid within the
2 years immediately
before you file the
claim.
Example 3.
You filed your
2001 tax return on
April 15, 2002. You
paid taxes of $500.
On November 3, 2003,
after an examination
of your 2001 return,
you had to pay an
additional tax of
$200. On May 13,
2005, you file a
claim for a refund
of $300. However,
because you filed
your claim more than
3 years after you
filed your return,
your refund will be
limited to the $200
you paid during the
2 years immediately
before you filed
your claim.
Financially disabled.
The time periods for
claiming a refund are
suspended for the period
in which you are
financially disabled.
For a joint income tax
return, only one spouse
has to be financially
disabled for the time
period to be suspended.
You are financially
disabled if you are
unable to manage your
financial affairs
because of a medically
determinable physical or
mental impairment which
can be expected to
result in death or which
has lasted or can be
expected to last for a
continuous period of not
less than 12 months.
However, you are not
treated as financially
disabled during any
period your spouse or
any other person is
authorized to act on
your behalf in financial
matters.
To claim that you are
financially disabled,
you must send in the
following written
statements with your
claim for refund.
A statement
from your
qualified
physician that
includes:
The
name and
a
description
of your
physical
or
mental
impairment,
The
physician's
medical
opinion
that the
impairment
prevented
you from
managing
your
financial
affairs,
The
physician's
medical
opinion
that the
impairment
was or
can be
expected
to
result
in
death,
or that
its
duration
has
lasted,
or can
be
expected
to last,
at least
12
months,
The
specific
time
period
(to the
best of
the
physician's
knowledge),
and
The
following
certification
signed
by the
physician:
“I
hereby
certify
that, to
the best
of my
knowledge
and
belief,
the
above
representations
are
true,
correct,
and
complete.”
A statement
made 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 of
disability (or
the exact dates
that a person
was authorized
to act for you).
Exceptions for special
types of refunds.
If you file a claim
for one of the items
listed below, the dates
and limits discussed
earlier may not apply.
These items, and where
to get more information,
are as follows.
Bad debt.
(See
Nonbusiness
Bad Debts
in chapter 15.)
Worthless
security. (See
Worthless
securities
in chapter 15.)
Foreign tax
paid or accrued.
(See Publication
514, Foreign Tax
Credit for
Individuals.)
Net
operating loss
carryback. (See
Publication 536,
Net Operating
Losses (NOLs)
for Individuals,
Estates, and
Trusts.)
Carryback of
certain business
tax credits.
(See Form 3800,
General Business
Credit.)
Claim based
on an agreement
with the IRS
extending the
period for
assessment of
tax.
Injured
spouse claim.
(See
Offset
against debts,
under
Refunds,
earlier.)
Processing claims for
refund.
Claims are usually
processed shortly after
they are filed. Your
claim may be accepted as
filed, disallowed, or
subject to examination.
If a claim is examined,
the procedures are the
same as in the
examination of a tax
return.
If your claim is
disallowed, you will
receive an explanation
of why it was
disallowed.
Taking
your claim to court.
You can sue for a
refund in court, but you
must first file a timely
claim with the IRS. If
the IRS disallows your
claim or does not act on
your claim within 6
months after you file
it, you can then take
your claim to court. For
information on the
burden of proof in a
court proceeding, see
Publication 556.
The IRS provides a fast
method to move your claim to
court if:
You are filing a
claim for a credit
or refund based
solely on contested
income tax or on
estate tax or gift
tax issues
considered in your
previously examined
returns, and
You want to take
your case to court
instead of appealing
it within the IRS.
When you file your claim
with the IRS, you get the
fast method by requesting in
writing that your claim be
immediately rejected. A
notice of claim disallowance
will then be promptly sent
to you.
You have 2 years from the
date of mailing of the
notice of disallowance to
file a refund suit in the
United States District Court
having jurisdiction or in
the United States Court of
Federal Claims.
Interest on refund.
If you receive a
refund because of your
amended return, interest
will be paid on it from
the due date of your
original return or the
date you filed your
original return,
whichever is later, to
the date you filed the
amended return. However,
if the refund is not
made within 45 days
after you file the
amended return, interest
will be paid up to the
date the refund is paid.
Reduced
refund.
Your refund may be
reduced by an additional
tax liability that has
been assessed against
you.
Also, your refund may
be reduced by amounts
you owe for past-due
child support, debts to
another federal agency,
or for state tax. If
your spouse owes these
debts, see
Offset against debts,
under
Refunds,
earlier, for the correct
refund procedures to
follow.
Effect
on state tax liability.
If your return is
changed for any reason,
it may affect your state
income tax liability.
This includes changes
made as a result of an
examination of your
return by the IRS.
Contact your state tax
agency for more
information.
Penalties
The law provides
penalties for failure to
file returns or pay taxes as
required.
Civil
Penalties
If you do not file
your return and pay your
tax by the due date, you
may have to pay a
penalty. You may also
have to pay a penalty if
you substantially
understate your tax,
file a frivolous return,
or fail to supply your
SSN or individual
taxpayer identification
number. If you provide
fraudulent information
on your return, you may
have to pay a civil
fraud penalty.
Filing late.
If you do not file
your return by the
due date (including
extensions), you may
have to pay a
failure-to-file
penalty. The penalty
is usually 5% for
each month or part
of a month that a
return is late, but
not more than 25%.
The penalty is based
on the tax not paid
by the due date
(without regard to
extensions).
Fraud.
If your failure to
file is due to
fraud, the penalty
is 15% for each
month or part of a
month that your
return is late, up
to a maximum of 75%.
Return over 60
days late.
If you file your
return more than 60
days after the due
date or extended due
date, the minimum
penalty is the
smaller of $100 or
100% of the unpaid
tax.
Exception.
You will not have
to pay the penalty
if you show that you
failed to file on
time because of
reasonable cause and
not because of
willful neglect.
Paying tax late.
You will have to
pay a failure-to-pay
penalty of ½ of 1%
(.50%) of your
unpaid taxes for
each month, or part
of a month, after
the due date that
the tax is not paid.
This penalty does
not apply during the
automatic 4-month
extension of time to
file period if you
paid at least 90% of
your actual tax
liability on or
before the due date
of your return and
pay the balance when
you file the return.
The monthly rate
of the
failure-to-pay
penalty is half the
usual rate (.25%
instead of .50%) if
an installment
agreement is in
effect for that
month. You must have
filed your return by
the due date
(including
extensions) to
qualify for this
reduced penalty.
If a notice of
intent to levy is
issued, the rate
will increase to 1%
at the start of the
first month
beginning at least
10 days after the
day that the notice
is issued. If a
notice and demand
for immediate
payment is issued,
the rate will
increase to 1% at
the start of the
first month
beginning after the
day that the notice
and demand is
issued.
This penalty
cannot be more than
25% of your unpaid
tax. You will not
have to pay the
penalty if you can
show that you had a
good reason for not
paying your tax on
time.
Combined penalties.
If both the
failure-to-file
penalty and the
failure-to-pay
penalty (discussed
earlier) apply in
any month, the 5%
(or 15%)
failure-to-file
penalty is reduced
by the
failure-to-pay
penalty. However, if
you file your return
more than 60 days
after the due date
or extended due
date, the minimum
penalty is the
smaller of $100 or
100% of the unpaid
tax.
Accuracy-related
penalty.
You may have to
pay an
accuracy-related
penalty if you
underpay your tax
because:
You show
negligence
or disregard
of the rules
or
regulations,
or
You
substantially
understate
your income
tax.
The penalty is equal
to 20% of the
underpayment. The
penalty will not be
figured on any part
of an underpayment
on which the fraud
penalty (discussed
later) is charged.
Negligence or
disregard.
The term “negligence”
includes a failure
to make a reasonable
attempt to comply
with the tax law or
to exercise ordinary
and reasonable care
in preparing a
return. Negligence
also includes
failure to keep
adequate books and
records. You will
not have to pay a
negligence penalty
if you have a
reasonable basis for
a position you took.
The term “disregard”
includes any
careless, reckless,
or intentional
disregard.
Adequate
disclosure.
You can avoid the
penalty for
disregard of rules
or regulations if
you adequately
disclose on your
return a position
that has at least a
reasonable basis.
See
Disclosure
statement,
later.
This exception
will not apply to an
item that is
attributable to a
tax shelter. In
addition, it will
not apply if you
fail to keep
adequate books and
records, or
substantiate items
properly.
Substantial
understatement of
income tax.
You understate
your tax if the tax
shown on your return
is less than the
correct tax. The
understatement is
substantial if it is
more than the larger
of 10% of the
correct tax or
$5,000. However, the
amount of the
understatement may
be reduced to the
extent the
understatement is
due to:
Substantial
authority,
or
Adequate
disclosure
and a
reasonable
basis.
If an item on your
return is
attributable to a
tax shelter, there
is no reduction for
an adequate
disclosure. However,
there is a reduction
for a position with
substantial
authority, but only
if you reasonably
believed that your
tax treatment was
more likely than not
the proper
treatment.
Substantial
authority.
Whether there is
or was substantial
authority for the
tax treatment of an
item depends on the
facts and
circumstances. Some
of the items that
may be considered
are court opinions,
Treasury
regulations, revenue
rulings, revenue
procedures, and
notices and
announcements issued
by the IRS and
published in the
Internal Revenue
Bulletin that
involve the same or
similar
circumstances as
yours.
Disclosure
statement.
To adequately
disclose the
relevant facts about
your tax treatment
of an item, use Form
8275, Disclosure
Statement. You must
also have a
reasonable basis for
treating the item
the way you did.
In cases of
substantial
understatement only,
items that meet the
requirements of
Revenue Procedure
2003-77 (or later
update) are
considered
adequately disclosed
on your return
without filing Form
8275.
Use Form
8275-R, Regulation
Disclosure
Statement, to
disclose items or
positions contrary
to regulations.
Reasonable
cause.
You will not have
to pay a penalty if
you show a good
reason (reasonable
cause) for the way
you treated an item.
You must also show
that you acted in
good faith.
Frivolous return.
You may have to
pay a penalty of
$500 if you file a
frivolous return. A
frivolous return is
one that does not
include enough
information to
figure the correct
tax or that contains
information clearly
showing that the tax
you reported is
substantially
incorrect.
You will have to
pay the penalty if
you filed this kind
of return because of
a frivolous position
on your part or a
desire to delay or
interfere with the
administration of
federal income tax
laws. This includes
altering or striking
out the preprinted
language above the
space provided for
your signature.
This penalty is
added to any other
penalty provided by
law.
The penalty must
be paid in full upon
notice and demand
from IRS even if you
protest the penalty.
Fraud.
If there is any
underpayment of tax
on your return due
to fraud, a penalty
of 75% of the
underpayment due to
fraud will be added
to your tax.
Joint return.
The fraud penalty
on a joint return
does not apply to a
spouse unless some
part of the
underpayment is due
to the fraud of that
spouse.
Failure to supply
social security
number.
If you do not
include your SSN or
the SSN of another
person where
required on a
return, statement,
or other document,
you will be subject
to a penalty of $50
for each failure.
You will also be
subject to a penalty
of $50 if you do not
give your SSN to
another person when
it is required on a
return, statement,
or other document.
For example, if
you have a bank
account that earns
interest, you must
give your SSN to the
bank. The number
must be shown on the
Form 1099-INT or
other statement the
bank sends you. If
you do not give the
bank your SSN, you
will be subject to
the $50 penalty.
(You also may be
subject to “backup”
withholding of
income tax. See
chapter 5.)
You will not have
to pay the penalty
if you are able to
show that the
failure was due to
reasonable cause and
not willful neglect.
Failure to furnish
tax shelter
registration number.
A person who sells
(or otherwise
transfers) to you an
interest in a tax
shelter must give
you the tax shelter
registration number
or be subject to a
$100 penalty. If you
claim any deduction,
credit, or other tax
benefit because of
the tax shelter, you
must attach Form
8271, Investor
Reporting of Tax
Shelter Registration
Number, to your
return to report
this number. You
will have to pay a
penalty of $250 for
each failure to
report a tax shelter
registration number
on your return. The
penalty can be
excused if you have
a reasonable cause
for not reporting
the number.
Criminal
Penalties
You may be subject to
criminal prosecution
(brought to trial) for
actions such as:
Tax evasion,
Willful
failure to file
a return, supply
information, or
pay any tax due,
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