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p4933.pdf
|
1114 Publ 4933 (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4933.pdf
|
[
"Use this electronic publication, to easily find the technical information you need to accurately determine if your clients \nqualify for EITC and meet your due diligence requirements. We have links to all IRS’s online tools, information, and guid\nance for Earned Income Tax Credit or EITC.\nMost of the information you need is in one convenient place, the EITC Toolkit for Return Preparers. Follow this link to the \nReturn Preparer Toolkit on EITC Central\nAnd, be sure to bookmark our Hot Topics for Return Preparers section to make sure you keep current with all things \nrelated to EITC.\nEITC Due Diligence Requirements\nPaid preparers must meet four due diligence requirements on returns when considering EITC. The Return Preparer’s tool\nkit on our EITC Central has information on the law and related regulations and provides you information on how to meet \nyour due diligence requirements. Read more about your responsibilities and learn how to protect yourself from potential \npenalties in the Preparer Due Diligence section of our Preparer Toolkit.\nWhat is Form 8867?\nIf you are paid to prepare an EITC claim, due diligence regulations require you to complete and submit the Form 8867, \nPaid Preparer’s Earned Income Credit Checklist, with all electronic and paper EITC returns or claims for refund. Using \nthe Form 8867 ensures you consider all EITC eligibility criteria for each claim you prepare. The penalty for filing any EITC \nclaim missing the Form 8867 is $500 per return. Find out more about the Form 8867 and the consequences of failing to \nmeet your due diligence.\nEITC Preparer Compliance Program\nIRS has a focused and tiered compliance approach. Our goal is to increase the accuracy of EITC claims and make sure \nall preparers are aware of and operate under the same rules. Learn about IRS’s approach to reduce the number of EITC \nclaims filed by paid preparers in error on our Return Preparer Toolkit.\nWill Your Clients Qualify for EITC this Year?\nVisit our www.irs.gov/eitc page for the basic qualifications and special rules.\nEITC Income Limits, Maximum Credit Amounts and Tax Law Updates\nAccess past, current and future EITC income limitations, plus highlights of EITC tax law changes.\nFrequently Asked Questions about EITC\nYour colleagues have asked IRS numerous questions related to EITC. Our answers will guide you to the right answer for \nsimilar situations. Find the answers to the questions tax return preparers ask about EITC.\nTax Preparers Guide to Everything\nEarned Income Tax Credit Online\nKnow the law\nAsk all the right questions\nGet all the facts\nDocument as you go\nKeep good records\nThe Due Diligence Must Do’s\n",
"EITC Assistant\nWalk your clients through the EITC qualification requirements with this visual online tool and show them if they qualify or \nnot. EITC Assistant allows you to print the results. Choose the EITC Assistant in English or the EITC Assistant in Spanish.\nSpecial Rules for Military, Clergy or Disabled Individuals\nCheck out these special rules if your clients are military, clergy, disabled or have a child or children with a disability.\nMany persons with disabilities or persons having children with disabilities qualify for the Earned Income Tax Credit or \nEITC. Find out more about Disability and EITC.\nAdditional EITC Resources\nEITC Forms and Publications\nQuickly link to, download and print EITC forms, publications, checklists, notices, posters, etc, from this online repository.\nTraining Opportunities\n• Take the EITC due diligence training online. It’s free and may qualify for CPE. It is available in both English and Span\nish. Find the Due Diligence training module on the Return Preparer Toolkit.\n• Preparers need to ask more questions of their clients if the claims they make about self-employment seem incon\nsistent, incorrect or incomplete when the tax return includes EITC. Find out how to meet your due diligence require\nments and help your self-employed clients reconstruct their business records; take our EITC Schedule C and Record \nReconstruction Training on the Return Preparer Toolkit.\n• The popular EITC Due Diligence videos featuring The Preparer from the 2011 and 2010 IRS Nationwide Tax Forums \nare on the Return Preparer Toolkit.\nAvoid Common EITC Errors and Learn How to Handle Common Due Diligence Situations\nAvoid having your clients’ returns reject by reviewing our tips on preventing the most common processing errors.\nAs you prepare EITC returns, avoid the three most common EITC errors which count for more than 60 percent of claims \nmade in error. Read more about avoiding common errors here.\nFind more tips on Handling Common Due Diligence Situations here.\nSoftware Developer’s Partnership\nMore than 86 percent of professional preparers use tax return preparation software. IRS partnered with the software \ncompanies to form the IRS/Software Developers Working Group. This group works to improve software and help prepar\ners meet their due diligence requirements. Read more about the software developer’s partnership on the EITC Return \nPreparer Toolkit.\nAdditional Resources:\n• Learn how you can help report suspected tax fraud.\n• Learn how the IRS’s Criminal Investigation Division is cracking down on abusive return preparers.\n• Basic Tools for Tax Professionals use this quick link for information on other tax topics.\n• Read more on the latest tax schemes and scams reported by the Department of Justice.\n• Find out more about the Standards of Practice for tax return preparers.\nThe most current version of this publication is available through www.irs.gov/eitc. If links are not working properly, \nplease check to make sure you have the most recent version. If the problem continues, please let us know by email: \[email protected]\nPublication 4933 (Rev. 11-2014) Catalog Numbers 57629R Department of the Treasury Internal Revenue Service www,irs.gov\nLife’s a little easier with\n"
] |
p4935.pdf
|
1114 Publ 4935 (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4935.pdf
|
[
"GUIDE TO EVERYTHING\nEARNED INCOME TAX CREDIT\nFOR INDIVIDUALS ONLINE\nWatch out for common errors!\nErrors can delay your refund or \nresult in IRS denying your EITC \nclaim. Avoid the following common \nerrors:\n• Claiming a child who does not \nmeet the qualifying tests for \nage, relationship and residency.\n• Social Security number or last \nname mismatches.\n• Filing as single or head of \nhousehold when married.\n• Over or under reporting of \nincome or expenses.\nErrors can delay the EITC part of \nyour refund until it’s fixed. If the \nIRS audits your return and finds \nthe EITC claim incorrect, you must \npay back the amount of EITC you \nreceived in error plus interest and \npenalties. You may also have to \nfile Form 8862, Information to \nClaim Earned Income Credit after \nDisallowance, for future claims. \nAnd, if the IRS finds your incorrect \nclaim was intentional or because \nof fraud, we may ban you from \nclaiming EITC for 2 or 10 years.\nWhat is Earned Income Tax Credit?\nEarned Income Tax Credit or EITC, also called EIC, is an important benefit \nproviding a financial boost to working individuals and families. To claim \nEITC, you need to meet certain qualifications and file a return even if you \nhave no other filing requirement or owe no tax. Find more EITC Information \non www.irs.gov/eitc.\nAre You Eligible for EITC?\nFind out if you are eligible by answering questions and providing basic \nincome information using the EITC Assistant on irs.gov. It helps determine \nyour filing status, the number of qualifying children you have, if any, and \nestimates the amount of your EITC. You can also print out a summary of \nyour results.\nEnglish Version of the EITC Assistant\nla Versión en Español del Asistente\nTo receive the credit, you must have income from:\n• work for your employer or someone else,\n• work for yourself,\n• a business or farm you own or operate, or\n• some disability plans.\nFind what earned income is or is not here.\nTo claim EITC, you, and your spouse if you file a joint return, must meet \ncertain eligibility rules. Find the Earned Income Tax Credit Rules for \nEveryone here.\nAnd either\nmeet the additional rules for those with a qualifying child. Find out if your \nchild or children meet all the Qualifying Child Rules here.\nor\nthe rules for those without a qualifying child. Find the rules for those without \na qualifying child here.\nSpecial EITC Rules. There are special EITC rules for members of the \nmilitary, members of the clergy, those receiving disability benefits, and those \nimpacted by disasters. Find the special EITC rules here.\nIs EITC only for those with low income?\nNot really. Check to see if you and your family meet the EITC income limits. \nFind the income limits for this year and other years.\n",
"PREPARING YOUR RETURN\nBe prepared to get the EITC you earned.\nGather your important documents and make sure you \nhave all the information you need to claim EITC. Find \nout what you need to prepare your return claiming EITC \nhere.\nChoose a method:\n1.\t Prepare your own return:\n• Use third party software to complete and file \nyour return.\n• If you know how to complete a tax return, use \nIRS Fillable Forms.\n• Have a certified volunteer assist you in preparing \nyour return at any participating Volunteer Income \nTax Assistance site.\n2.\t Have a certified volunteer prepare your return. \nCheck here for more information on free tax return \npreparation.\n3.\t Pick a paid preparer carefully. If you pay someone \nto do your taxes, choose wisely. If you are paying \nsomeone to do your taxes, find out what you should \nknow here.\nTaxpayer Assistance Centers.\nIRS Taxpayer Assistance Centers (TAC) are your source \nfor personal tax help when you believe your tax issue \ncannot be handled online or by phone, and you want \nface-to-face tax assistance. Find a list of local offices \nand hours of services.\nPublication 4935 (Rev. 11-2014) Catalog Number 57635V Department of the Treasury Internal Revenue Service www.irs.gov\nDoes EITC affect my other public benefits? Generally, \nEITC has no effect on most public benefits and is not \nused to determine eligibility. Find more information here \nby scrolling down to the EITC and other Public Benefits \ninformation.\nDon’t overlook the state credit. If you qualify to claim \nEITC on your federal income tax return, you also may be \neligible for a similar credit on your state or local income \ntax return. Find more information on states and local \ngovernments with EITC.\nDo you have questions about EITC? We have the \nanswers. Find the most common questions and \nanswers related to EITC here.\nRead more about EITC in Publication 596 in English \n(PDF) or, Publicacion 596 (SP), Credito por Ingreso del \nTrabajo (PDF).\nWhat You Need to Know About Your Taxes – \nResponsibilities & Benefits!\nThis toolkit is available to you 24 hours a day, seven \ndays a week and makes it easier for you to understand \nbasic tax information. The IRS and the Taxpayer \nAdvocate Service (TAS) worked together to develop \nthis Tax Toolkit. TAS is an independent organization \nwithin the IRS whose employees assist taxpayers who \nare experiencing economic harm, who are seeking help \nin resolving tax problems that have not been resolved \nthrough normal channels, or who believe that an IRS \nsystem or procedure is not working as it should.\nTaxpayer Rights.\nWhether you file a Form 1040EZ or a complicated \ncorporate return, you will benefit from knowing your \nrights as a taxpayer and being familiar with the IRS’s \nobligations to protect them. The goal of the Taxpayer \nRights Corner is to be your one-stop shop for taxpayer \nrights information during every step of your interaction \nwith the IRS. Visit the Taxpayer Rights Corner.\nDid you receive a Notice?\nReply to any IRS correspondence to get the EITC \nyou earned. Find information on Understanding Your \nIRS Notice here. Find IRS Notices listed by the notice \nnumber here.\nThe most current version of this publication is \navailable through www.irs.gov/eitc. If links are not \nworking properly, please check to make sure you have \nthe most recent version. If the problem continues, \nplease let us know. Email: [email protected]\nADDITIONAL INFORMATION AND RESOURCES:\nLife’s a little easier with\n"
] |
f13691es.pdf
|
0815 Form 13691 (EN-SP) (PDF)
|
https://www.irs.gov/pub/irs-pdf/f13691es.pdf
|
[
"Catalog Number 40140V\nwww.irs.gov\nForm 13691(EN-SP) (Rev. 8-2015)\nWhere's My Refund\nwww.irs.gov\nYou filed your tax return and are expecting a refund. Access the IRS \nWeb site to find out if the IRS received your return and whether your \nrefund was processed and sent to you.\nDate you e-filed your return\nSent by mail\nYou have online access to information about your refund 24 hours after \nIRS acknowledges receipt of your e-filed return, or four weeks after \nmailing a paper return.\nTo obtain information on refund status, you will need:\nPrimary Social Security Number\nFiling Status on return\nExact refund amount\nBy telephone 1-800-829-1954\n",
"Catalog Number 40140V\nwww.irs.gov\nForm 13691(EN-SP) (Rev. 8-2015)\n¿Dónde está mi reembolso?\nwww.irs.gov/espanol\nUsted presentó su declaración de impuestos y espera un reembolso. \nIngrese al sitio web del IRS e investigue si el IRS recibió su declaración \ny si su reembolso ya fue procesado y enviado.\nFecha en que envió su declaración e-file\nPor correo\nUsted tiene acceso a información en línea sobre su reembolso 24 horas \ndespués de recibir confirmación del IRS de su presentación electrónica ó \ncuatro semanas después de haber presentado su declaración en papel.\nPara obtener información sobre el estado de su reembolso usted \nnecesitará:\nNúmero de Seguro Social primario\nEstado Civil en la declaración\nCantidad exacta del reembolso\nPor teléfono 1-800-829-1954\n"
] |
f13997.pdf
|
0815 Form 13997 (PDF)
|
https://www.irs.gov/pub/irs-pdf/f13997.pdf
|
[
"Catalog Number 51669T\nwww.irs.gov\nForm 13997 (Rev. 8-2015)\nForm 13997 \n(August 2015)\nDepartment of the Treasury - Internal Revenue Service\nValidating Your TIN and Reasonable Cause\nOMB Number \n1545-2144\n1. If you have a TIN, please provide your correct SSN and/or TIN and a written statement of reasonable cause in the \nrespective spaces provided below\na. Your Social Security Number (SSN)\nb. Your Taxpayer Identification Number (TIN)\nc. Written Statement of Reasonable Cause (attach separate page(s) if necessary)\n2. If you do not have a TIN, please provide us a statement explaining why you do not have a TIN or SSN (attach separate \npage(s) if necessary)\nTaxpayer \nAttestation\nUnder penalties of perjury, I declare that the facts presented in this form and as set out in the \naccompanying statement of facts, schedules, and other statements are, to the best of \nmyknowledge and belief, true, correct, and complete.\nPrint your name\nYour signature\nDate (mmddyyyy)\nPrivacy Act and Paperwork Reduction Act Notice\nWe ask for the information on this form to carry out the Internal Revenue laws. The primary purpose for soliciting this information is to establish whether \nyou are liable for a penalty under Internal Revenue Code section 6039E. The information solicited on a passport application is requested pursuant to \nprovisions of Titles 8, 18, and 22 of the United States Code, including 22 U.S.C. 211a, 212, 213, and regulations issued pursuant to Executive Order \n11295 (August 5, 1966), including part 51, Title 22, Code of Federal Regulations (CFR). Failure to provide certain information requested on a passport \napplication may subject you to a $500 penalty under Internal Revenue Code section 6039E. Our authority to request the information on this form is Code \nsections 6039E, 6109, and 7803. Your response is mandatory. Failure to provide the information requested on this form, or providing false or fraudulent \ninformation, may subject you to further penalties. \nYou are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB \ncontrol number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the \nadministration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. However, section \n6103 allows or requires the IRS to disclose the information shown on your tax return to others as described in the Code. For example, we may disclose \nyour tax information to the Department of Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths \nand possessions to administer their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to \nenforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. \nThe time needed to complete and file Form 13997 will vary depending on individual circumstances. The estimated average time is: Recordkeeping, 10 \nmin.; Learning about the law or the form, 30 min.; Preparing the form, 10 min.; Copying and sending the form to the IRS, 15 min. If you have comments \nconcerning the accuracy of these time estimates or suggestions for making Form 13997 simpler, we would be happy to hear from you. You can send \nyour comments from www.irs.gov/formspubs. Click on “More Information” and then on “Give us feedback.” Or you can send your comments to the \nInternal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send Form 13997 to this \naddress; instead, see What You Need to Do in the letter we sent to you with the form.\n"
] |
p4925sp.pdf
|
0715 Publ 4925 (SP) (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4925sp.pdf
|
[
"Acierte con sus \nImpuestos \n \nCréditos y Beneficios Tributarios \nLas Series del Ciclo de Vida\nUna serie de publicaciones informativas diseñadas para educar a los \ncontribuyentes sobre el impacto tributario de importantes eventos de \nla vida.\ncontinúa...f\nAYUDA GRATUITA PARA PRESENTAR SU \nDECLARACIÓN\t\nPrograma de Asistencia Voluntaria al contribuyente relacionada con \nel impuesto sobre el ingreso (o VITA, por sus siglas en inglés)\nLos voluntarios certificados por el IRS son capacitados para preparar \ndeclaraciones básicas de impuestos, en las comunidades de todo el país. \nPara localizar el centro VITA más cercano a usted, visite www.irs.gov/espanol \ny busque: VITA, o llame al 1-800-906-9887\nPrograma de ayuda tributaria de la Asociación Estadounidense de \nPersonas Jubiladas (AARP, por sus siglas en inglés) (TAX-AIDE) \nLos voluntarios del programa Tax-Aide de la AARP son capacitados y \ncertificados para ayudar a las personas de ingresos bajos y moderados, \ncon especial atención a aquéllas que tienen 60 años de edad o más. Para \nlocalizar el centro de Tax-Aide de la AARP más cercano, llame al \n1-888-227-7669 o utilice el localizador de Tax-Aide, en \nhttp://www.aarp.org/espanol. \nPrograma de Presentación Gratuita Free File\nEs seguro, rápido y gratis. Permita que Free File haga la parte difícil \npara usted, con un software de marca o formularios rellenables en línea. \nUsted puede preparar y presentar electrónicamente sin costo alguno \nsu declaración de impuestos federales. Las compañías de software \nparticipantes, ofrecen sus productos a través del IRS. Algunas también \napoyan las declaraciones de impuestos estatales. Visite www.irs.gov/\nespanol, para comenzar.\nCRÉDITOS TRIBUTARIOS \nCrédito Tributario por Ingreso del Trabajo (EITC, por sus siglas en \ninglés) \nAverigüe si usted reúne los requisitos para este valioso crédito utilizando \nel Asistente EITC en www.irs.gov/espanol. Las cantidades recibidas por \ntrabajos realizados mientras es recluso en una institución penal, en \nun programa de libertad condicional para trabajar o en una casa de \nrehabilitación, no se consideran ingresos derivados del trabajo al \nmomento de calcular este crédito.\nOtros Beneficios\nPara obtener Información sobre el crédito tributario por hijos y otros \ncréditos, beneficios y servicios gratuitos, vea la Publicación 910, IRS Guide \nto Free Tax Services (Guía de los servicios gratuitos del IRS), en inglés.\nIMPUESTOS Y TRABAJOS\nSi usted trabaja para otra persona, usted puede utilizar la Calculadora \nde Retenciones (Withholding Calculator) en www.irs.gov, en inglés, para \nayudarle a completar el Formulario W-4(SP). De esa manera, usted evitará \ntener demasiada o muy poca retención de impuestos de su salario.\nSi usted está interesado en comenzar su propio negocio, el IRS tiene \ndisponible muchos videos informativos en www.irs.gov. Seleccione \n“Small Business and Self-Employed Tax Center” (Centro Tributario \nPara Negocios y Trabajadores por Cuenta Propia), en inglés.\nLos trabajadores por cuenta propia/contratistas independientes, \ngeneralmente están obligados a presentar cada año una declaración \nde impuestos y pagar los impuestos estimados. Para obtener más \ninformación, vea las Publicaciones 334, Tax Guide for Small Business (Guía \ntributaria para pequeños negocios) y 505, Tax Withholding and Estimated Tax \n(Retención del impuesto y el Impuesto estimado), ambas en inglés.\nPLANES DE EVASIÓN DE IMPUESTOS\nEl participar en planes ilegales para evitar el pago de impuestos, \npuede resultar en encarcelamiento, multas y el pago de los impuestos \nadeudados, más multas e intereses. Si suena demasiado bueno para ser \nverdad, probablemente lo sea. Encuentre más información en www.irs.gov/\nespanol, ingresando “estafas” en la casilla de búsqueda.\nQUÉ PUEDE HACER SI ADEUDA IMPUESTOS\nUsted debe presentar todas las declaraciones de impuestos vencidas, \nindependientemente de si puede o no, pagar la totalidad con su \ndeclaración. Dependiendo de su situación, usted podría reunir los \nrequisitos para un plan de pagos. En muchos casos, el presentar después \nde la fecha de vencimiento puede resultar en multas evitables, costándole \nmás dinero. Si usted no ha presentado la declaración, visite www.irs.gov/\nespanol, para obtener más información sobre las opciones de pago o \npara establecer un acuerdo de pagos. También puede visitar el Centro de \nAyuda al Contribuyente más cercano a usted o llamar al IRS, al número \ngratuito 1-800-829-1040.\nTalleres (Clínicas) para Contribuyentes de Bajos Ingresos (LITC, por \nsus siglas en inglés)\nDisponible para los contribuyentes de bajos ingresos o que hablan inglés \ncomo segundo idioma (ESL, por sus siglas en inglés), que buscan ayuda \ncon el IRS en auditorías, apelaciones y controversias acerca de cobros e \nincluso representación ante el IRS. Para conocer los requisitos específicos \ny las ubicaciones en su estado, visite www.irs.gov/espanol e ingrese “litc \nespanol” en la casilla de búsqueda.\n",
"Publication 4925(SP) (Rev. 7-2015) Catalog Number 58085F Department of the Treasury Internal Revenue Service www.irs.gov\n...Acierte con\nsus Impuestos... (continuación...)f\nServicio del Defensor del Contribuyente (TAS, por sus siglas en \ninglés)\nSu voz ante el IRS. Llame al TAS si usted tiene problemas económicos, \nsi necesita ayuda para resolver problemas con el IRS, o si piensa que un \nsistema o procedimiento del IRS no funciona como debería. Llame gratis \nal 1-877-777-4778 o visite www.TaxpayerAdvocate.irs.gov\nPROGRAMA EDUCATIVO PARA LA \nREINTEGRACIÓN DE RECLUSOS\nMisión\nLa misión del Programa Educativo para la Reintegración de Reclusos, es \neducar e informar a los reclusos que se preparan para la liberación de una \ninstalación correccional, sobre sus responsabilidades tributarias.\nBeneficios\n• Reembolsos – usted tiene hasta 3 años para presentar una \nreclamación de reembolso\n• Créditos Tributarios – aun si no gana suficiente dinero para pagar \nimpuestos, usted podría tener derecho a un reembolso\n• Prueba de Ingresos – presentar su declaración de impuestos es \nimportante, si usted desea rentar una casa o apartamento, o solicitar \nun préstamo\n• Seguro Social – para tener derecho a los beneficios, el Seguro Social \nnecesita registros de su historial de trabajo\n• Para su tranquilidad – presente sus impuestos y tenga una cosa \nmenos de qué preocuparse\nNota importante acerca de la Cobertura de Seguro de Salud. Usted \nestá exento del requisito de tener cobertura de seguro de salud para \ncualquier mes que incluye un día en que usted está en la cárcel o prisión \ndespués de la disposición de los cargos. En general, usted también está \nexento del requisito, para los primeros dos meses completos, después \nde su liberación. Mientras esté encarcelado, usted no reúne los requisitos \npara inscribirse en un plan de salud calificado y por lo tanto, no puede \nreclamar el Crédito Tributario de Prima para su propia cobertura. La \nliberación del encarcelamiento puede abrir la puerta a un período especial \nde inscripción en el Mercado de Seguros de Salud, que permite la \ninscripción en un plan de cuidado de la salud, cuando no es la temporada \nabierta. Obtenga más información sobre las disposiciones relacionadas \ncon los impuestos de la Ley de Cuidado de la Salud, en IRS.gov/espanol. \nINFORMACION ADICIONAL \nTodas las publicaciones y formularios mencionados en el video “Acierte \ncon sus Impuestos”, la Publicación 4931(DVD) y este folleto, se \nencuentran en la página web del Servicio de Impuestos Internos (IRS), en \nwww.irs.gov o llamando al 1-800-829-3676 (1-800-TAXFORM).\nPara pedir transcripciones de las declaraciones de impuestos o de \nlas cuentas, visite www.irs.gov/espanol y oprima el enlace Ordenar \nTranscripción. Para solicitarlas por teléfono, llame al 1-800-908-9946 y \nsiga las instrucciones grabadas.\nPara obtener copias de las declaraciones de impuestos de años anteriores \no para obtener copias de los Formularios W-2 o de la serie 1099, para que \nle ayuden a presentar un año anterior, llame al 1-800-829-1040.\nPara preguntas adicionales sobre su cuenta o responsabilidades, llame al \n1-800-829-1040.\nINFORMACIÓN ÚTIL NO RELACIONADA CON \nEL IRS \nPara averiguar si su reembolso será compensado debido a deudas \npendientes, tales como incumplimiento en el pago de préstamos \nestudiantiles o manutención de hijos menores atrasada, comuníquese con \nel Treasury Offset Program Call Center (Centro de llamadas del Programa \nde Compensación del Tesoro), al 1-800-304-3107.\nAverigüe qué beneficios gubernamentales usted quizás tenga derecho a \nrecibir, en www.benefits.gov\n"
] |
i8849s6.pdf
|
0715 Inst 8849 (Schedule 6) (PDF)
|
https://www.irs.gov/pub/irs-pdf/i8849s6.pdf
|
[
"Instructions for Schedule 6 \n(Form 8849)\n(Rev. July 2015)\nFor use with Schedule 6 (Form 8849) (Rev. August 2013)\nOther Claims\nDepartment of the Treasury\nInternal Revenue Service\nSection references are to the Internal Revenue Code unless \notherwise noted.\nFuture Developments\nFor the latest information about developments related to \nSchedule 6 (Form 8849) and its instructions, such as legislation \nenacted after they were published, go to www.irs.gov/form8849.\nWhat's New\nFor dispositions of vehicles on or after July 1, 2015, Treasury \nDecision 9698 changed the information to be submitted for credit \nor refund claims for vehicles sold. See Form 2290, CRN 365, \nlater.\nGeneral Instructions\nPurpose of schedule. Use Schedule 6 for claims not \nreportable on Schedules 1, 2, 3, 5, and 8, including refunds of \nexcise taxes reported on:\nForm 720, Quarterly Federal Excise Tax Return;\nForm 2290, Heavy Highway Vehicle Use Tax Return;\nForm 730, Monthly Tax Return for Wagers; and\nForm 11-C, Occupational Tax and Registration Return for \nWagering.\nDo not use Schedule 6 to make adjustments to liability \nreported on Forms 720 filed for prior quarters. Instead, \nuse Form 720X, Amended Quarterly Federal Excise \nTax Return. Also, do not use Schedule 6 to claim amounts that \nwere taken or will be taken as a credit on Form 2290 or Form \n730.\nClaim requirements. Generally, a claim must be filed within 3 \nyears of the filing of the return to which the claim relates, or 2 \nyears from when the tax reported on that return was paid, \nwhichever is later.\nHow to file. Attach Schedule 6 to Form 8849, Claim for Refund \nof Excise Taxes. If you attach additional sheets, write your name \nand taxpayer identification number on each sheet.\nSpecific Instructions\nForm 720\nA claim relating to the taxes listed in the Tax and CRN chart \nbelow may be made. See Pub. 510, Excise Taxes, for \ninformation on allowable claims relating to these taxes. The \nfollowing information must be attached to the claim.\n1.\nA detailed description of the claim.\n2.\nAny additional information required by the regulations.\n3.\nThe amount of the claim. If the claim is for more than one \nquarter, list the claim amounts by quarter.\n4.\nHow you figured the claim amount.\n5.\nAny other information you believe will support the claim.\nCAUTION\n!\n6.\nFor CRNs 396, 304, and 305, include the number of \ntaxable tires for each CRN included in the claim.\nTax\nCRN\nOzone-depleting chemicals\n398\nTruck, trailer, and semitrailer chassis and bodies, and tractors\n383\nPassenger vehicles (luxury tax)\n392\nTaxable tires other than biasply or super single tires\n396\nTaxable tires, biasply or super single tires\n304\nTaxable tires, super single tires designed for steering\n305\nGas guzzler automobiles\n340\nVaccines\n397\nTaxable medical devices\n438\nSport fishing equipment\n341\nFishing rods and fishing poles\n308\nFishing tackle boxes\n387\nElectric outboard motors\n342\nBows, quivers, broadheads, and points\n344\nArrow shafts\n389\nDiesel-water fuel emulsion blending (CRN 310). The claim \nrate for undyed diesel fuel taxed at $.244 (CRN 310) and used to \nproduce a diesel-water fuel emulsion is $.046 per gallon of \ndiesel fuel (blender claims).\nThe amount claimed must be at least $750. This amount may \nbe met by making a claim during any quarter of a claimant’s \nincome tax year or aggregating amounts from any quarters of \nthe claimant’s income tax year for which no other claim has been \nmade. The amount claimed for a diesel-water fuel emulsion may \nbe combined with any amounts claimed on Schedule 1 to meet \nthe $750 minimum. The claim must be filed during the first \nquarter following the last quarter included in the claim. Only one \nclaim may be filed per quarter. Enter the earliest and latest date \nof the claim on page 1. If the above requirements are not met, \nsee Annual Claims in the Form 8849 instructions.\nClaimant must be registered by the IRS and must enter their \nregistration number on the statement.\nIn addition to items 1–5 above, claimant must attach a \nstatement certifying that:\nClaimant produced a diesel-water fuel emulsion containing at \nleast 14% water;\nThe emulsion additive is registered by a U.S. manufacturer \nwith the Environmental Protection Agency under Clean Air Act, \nsection 211;\nClaimant used undyed diesel fuel taxed at $.244 to produce \nthe diesel-water fuel emulsion; and\nClaimant sold or used the diesel-water fuel emulsion in its \ntrade or business.\nMay 11, 2015\nCat. No. 64015P\n",
"Form 2290, CRN 365\nA claim for refund may be made for the following:\nAn overpayment of tax due to a mistake in tax liability \npreviously reported on Form 2290. The claim is made by the \nperson that paid the tax to the government.\nA pro rata refund of the tax paid on Form 2290 for a vehicle \nthat was sold, destroyed, or stolen before June 1 of any period \n(July 1 – June 30) and subsequently not used during the period. \nThe claim is made by the person in whose name the vehicle is \nregistered at the time it was sold, destroyed, or stolen. To make \na claim for a vehicle that was sold, destroyed, or stolen, the \nfollowing information must be attached to Schedule 6.\n1.\nThe vehicle identification number (VIN).\n2.\nThe taxable gross weight category.\n3.\nWhether the vehicle was sold, destroyed, or stolen.\n4.\nThe date of the sale, destruction, or theft.\n5.\nComputation of the refund amount (see the Instructions \nfor Form 2290, line 5, for reference).\n6.\nIf the vehicle was sold on or after July 1, 2015, the name \nand address of the purchaser of the vehicle.\nAny vehicle on which the tax was paid on Form 2290 if the \nvehicle was used 5,000 miles or less on public highways (7,500 \nor less for agricultural vehicles) during the period (July 1 – June \n30). The mileage limitation applies to the total mileage a vehicle \nis driven during a period regardless of the number of owners of \nthe vehicle. A claim for this mileage refund cannot be filed until \nafter June 30 of the period. The claim is made by the person that \npaid the tax to the government.\nForm 730, CRN 368\nA claim for refund may be made for an overpayment of tax. The \nclaim is made by the person that paid the tax to the government.\nThe claim is not allowed unless a statement of the facts is \nattached that includes the following information.\n1.\nAn explanation of the reason for claiming a refund.\n2.\nThe date of payment and the amount of the tax.\n3.\nWhether any previous claim covering the amount \ninvolved, or any part, has been filed.\n4.\nA statement that you:\na.\nHave not collected (whether as a separate charge or \notherwise) the amount of the tax from the person that placed the \nwager on which the tax was imposed,\nb.\nHave repaid the amount of the tax to the person that \nplaced the wager, or\nc.\nHave the written consent of the person that placed the \nwager to the making of the refund (the consent must be attached \nto the claim).\n5.\nIf the overpayment relates to a laid-off wager accepted by \nyou, one of the above three statements must be attached for \nboth the person that placed the laid-off wager and the person \nthat placed the original wager.\nCredit for wagers laid off by you. If you accept a wager and \nlay off all or part of the wager with a person who is liable for the \ntax and have paid the tax, a claim may be allowed for the tax \npaid on the laid-off amount. The claim is made by the person \nthat paid the tax to the government. No claim is allowed unless \nthe following information is attached to Schedule 6.\n1.\nThe certificate described in Regulations section \n44.6419-2(d).\n2.\nA statement that includes (a) the reason for the refund, (b) \nthe month in which the tax was paid, (c) the date of payment, \nand (d) whether any previous claim covering the amount \ninvolved, or any part, has been filed.\nForm 11-C, CRN 367\nA claim for refund may be made for overpayment of tax due to a \nmistake in tax liability previously reported on Form 11-C. The \nclaim is made by the person that paid the tax to the government.\n-2-\nInstructions for Schedule 6 (Form 8849)\n"
] |
p4772a.pdf
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0615 Publ 4772-A (PDF)
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https://www.irs.gov/pub/irs-pdf/p4772a.pdf
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[
"Publication 4772A (6-2015) Catalog Number 62599M Department of the Treasury Internal Revenue Service www.irs.gov\nWho says you can’t get a break these days?\nAre you or your child a half-time student in college? If your answer is yes, The \nAmerican Opportunity Tax Credit may give you the break you’re looking for – \nit’s available for the first four years of college education.\nEven if you don’t make enough money to owe taxes, you still may qualify. Money \nyou paid for tuition, fees and course materials may qualify for the credit. The \ncredit is worth up to $2,500. However, you must complete the Form 8863 and \nfile a return to claim the credit.\nYou don’t need a course in accounting to learn how it pays to go to college.\nVisit www.irs.gov/Individuals/AOTC and read Publication 970, Tax Benefits \nfor Education, to learn more.\nCatch a \nBreak\n"
] |
p5192.pdf
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1214 Publ 5192 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5192.pdf
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[
"6 | \u0007\nDo not lean against or \nhang on someone’s \nwheelchair. \nBear in mind that people with \ndisabilities treat their chairs as \nextensions of their bodies. And \nso do people with guide dogs \nand help dogs. Never distract \na work animal from their job \nwithout the owner’s permission. \nTitles II and III of the ADA makes \nit clear that service animals are \nallowed in public facilities and \naccommodations.\nTen Key Points for \nCommunicating with \nPeople with Disabilities\n1 | Speak directly. \nSpeak directly to the individual \nwith a disability rather than \nthrough a companion or sign \nlanguage interpreter who may \nbe present. \n2 \u0007\n| \u0007\nOffer to shake hands \nwhen introduced.\nPeople with limited hand use \nor an artificial limb can usually \nshake hands and offering the left \nhand is an acceptable greeting. \n3 | \u0007\nAlways identify yourself \nand others who may be \nwith you when meeting \nsomeone with a visual \ndisability. \nWhen conversing in a group, \nremember to identify the person \nto whom you are speaking. \n4 | \u0007\nIf you offer assistance, \nwait until the offer is \naccepted.\nThen listen or ask for \ninstructions. \n5 | Treat adults as adults. \nAddress people with disabilities \nby their first names only when \nextending that same familiarity \nto all others. Never patronize \npeople in wheelchairs by patting \nthem on the head or shoulder. \n7 | \u0007\nListen attentively when \ntalking with people who \nhave difficulty speaking \nand wait for them to \nfinish.\nIf necessary, ask short questions \nthat require short answers, or a \nnod of the head. Never pretend \nto understand; instead repeat \nwhat you have understood and \nallow the person to respond. \n8 | \u0007\nPlace yourself at eye \nlevel when speaking with \nsomeone in a wheelchair \nor on crutches.\n9 | \u0007\nTap a person who is deaf \nor hard of hearing on the \nshoulder or wave your \nhand to get his or her \nattention.\nLook directly at the person \nand speak clearly, slowly, and \nexpressively to establish if the \nperson can read your lips. If so, \ntry to face the light source and \nkeep hands, cigarettes and food \naway from your mouth when \nspeaking. If a person is wearing \na hearing aid, don’t assume \nthat they have the ability to \ndiscriminate your speaking \nvoice. Never shout at a person. \nJust speak in a normal tone of \nvoice. \n10 | Relax.\nDon’t be embarrassed if \nyou happen to use common \nexpressions, such as “See you \nlater” or “Did you hear about \nthis?” that seem to relate to a \nperson’s disability. \nPublication 5192 (12-2014) Catalog Number 67448S Department of the Treasury Internal Revenue Service IRS.gov\n"
] |
p4214.pdf
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0512 Publ 4214 (PDF)
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https://www.irs.gov/pub/irs-pdf/p4214.pdf
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[
" \nWage & Investment \nMultilingual and Agency Services \nProducts and \n \nServices List \nSpeaking Taxes in Your Language \nPublication 4214 (Rev. 5-2012) Catalog Number 37010C \nDepartment of the Treasury Internal Revenue Service www.irs.gov \n",
" \n \n \n \nPlace your order today \nThe following is a list of available products which can \nbe ordered from the National Distribution Center (NDC). \nYou may place an order by calling 1-800-829-3676. \nPublication 5023, Why should I Pay Taxes? \nExplains responsibility of filing a tax return and paying taxes. \nCat. No. 59584J \nSpanish: Explica la responsabilidad de presentar una declaración y pagar impuestos. \n \nChinese: 讓您了解自己的權利與納稅責任. \nKorean: 세금 신고와 세금 납부의 책임을 설명합니다. \nVietnamese: Giải thích trách nhiệm về việc khai thuế và trả tiền thuế. \nRussian: Объясняет ответственность за подачу налоговой декларации и \nуплатy налогов. \nPublication 5029, Over-the-phone Interpreter Service \nTranslation service available in over 170 languages, allows taxpayers to communicate with the IRS in their \nnative language. Information on how to access this service. \nCat. No. 59643P \nSpanish: Servicio de traducción provee ayuda en más de 170 idiomas, permitiendo a los \ncontribuyentes comunicarse con el IRS en su propio idioma. Información sobre cómo utilizar este \nservicio. \nChinese: 提供超過170 種語言的翻譯服務可讓納稅人使用自己的母語與國稅局\n溝通 \nKorean: 170 개 이상의 언어로 제공 되는 번역 서비스는 납세자가 자신의 \n모국어로 연방 국세청과 통신할 수 있습니다. 이 서비스의 이용 정보. \nVietnamese: Có bảng phiên dịch cho hơn 170 ngôn ngữ, cho phép người khai\nthuế giao tiếp với Sở Thuế Vụ bằng ngôn ngữ mẹ đẻ của họ. Có thông tin về \nviệc làm thế nào để truy cập dịch vụ này. \nRussian: Услуги переводчиков доступны более чем на 170 языках, и\nпозволяет налогоплательщикам общаться с IRS на их родном языке. \nИнформация о том, как получить доступ к этой услуге \nPublication 5030, Forms and Publications Available from the IRS in other \nLanguages \nLists forms and publications available from the IRS in other languages. \nCat. No. 59644A \nSpanish: Lista de algunos formularios y publicaciones del IRS en Español. \nChinese: 各項外文表格及刊物目錄 \nKorean: 연방국세청에서 다른 언어로 제공하는 양식과 간행물 목록. \nVietnamese: Có danh sách các mẫu đơn và các bản công bố của Sở Thuế Vụ \ncho các ngôn ngữ khác. \nRussian: Перечень налоговых форм и публикаций на других языках \nPublication 4744, IRS is Speaking Your Language \nThis pamphlet describes IRS products and services available in other languages. \nCat. No. 52869F \nSpanish: Este panfleto describe productos y servicios disponibles del IRS, en otros idiomas, \nincluyendo el español. \nChinese: 此手冊提供您國稅局出版的各項外文產品及服務資訊. \nKorean: 이 팸플릿은 연방 국세청에서 제공하는 제2언어 제품과 서비스룰 \n설명하고 있습니다. \nVietnamese: Tài liệu này mô tả các sản phẩm và dịch vụ của Sở Thuế Vụ có\nthể dùng cho các ngôn ngữ khác. \nRussian: Эта брошюра описывает IRS продукцию и услуги, которые\nдоступные на других языках. \n"
] |
p4744h.pdf
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0414 Publ 4744-H (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4744h.pdf
|
[
"Publication 4744H (Rev. 4-2014) Catalog Number 55351Y\nIRS Multilingual Websites \nFact Sheet \nIntroduction \nIRS Multilingual websites are a set of websites that opens the door to taxpayers whose primary \nlanguage is not English. These websites, available through IRS.gov, provide taxpayers with basic tax \ninformation in Spanish, Chinese, Korean, Vietnamese, and Russian. \nBackground Information \nProviding service to limited English proficient (LEP) taxpayers is an IRS responsibility pursuant to \nPresidential Executive Order 13166. This order requires that access to Federal benefits and services be \nprovided to all eligible recipients regardless of the language they speak. \nIRS is expanding its use of online services to meet the needs of taxpayers, practitioners, businesses, \nand others. The IRS Multilingual websites broaden online services from English to a wider population \nof LEP taxpayers, focusing on those who speak Spanish, Russian and Asian languages. \nHighlights and Benefits \nThe IRS Multilingual websites provides: \n• Easy access to tax-related information in Spanish, Chinese, Vietnamese, Korean, and Russian. \n• Tax topics for individuals, businesses, and international taxpayers. \n• Useful information that will assist Limited English proficient taxpayers in knowing their rights and \nresponsibilities as taxpayers. \n• Content in multiple formats so taxpayers can read files online or print them for future reference. \n• Easy to use links to other tax-related information in IRS.gov. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nThe Internal Revenue Service’s \nMultilingual Websites \nOffer Individual, Small Business and \nInternational tax information in: \n• Spanish \n• Chinese \n• Korean \n• Vietnamese \n• Russian \nEasily accessed on the IRS.gov home \npage (under “Languages” in the top \nright of the page) or: \nwww.irs.gov/espanol \nwww.irs.gov/chinese \nwww.irs.gov/korean \nwww.irs.gov/vietnamese \nwww.irs.gov/russian \nContents available for online reading \nor print \nContent linked to other IRS.gov and \nfederal government multilingual \nresources Banner with the words: Internal Revenue Bulletin, Japanese, OMB Approvals, Korean, Vietnamese, Russian, Standardize, Arabic, Spanish, Establish, Italian, Review, Translations, Creole, Effective, Efficient, Portuguese, German, Chinese, Taxpayers, French, Tagalog, Mandarin, Over the Phone Interpretation, Centralized, Languages, Quality, Service-Wide, and IRS.gov\n Department of the Treasury Internal Revenue Service www.irs.gov \n"
] |
f14704.pdf
|
0515 Form 14704 (PDF)
|
https://www.irs.gov/pub/irs-pdf/f14704.pdf
|
[
"Catalog Number 67750H\nwww.irs.gov\nForm 14704 (5-2015)\nForm 14704 \n(May 2015)\nDepartment of the Treasury - Internal Revenue Service\nTransmittal Schedule – Form 5500-EZ \nDelinquent Filer Penalty Relief Program \n(Revenue Procedure 2015-32) \n(Attach to Oldest Delinquent Return in this Submission)\nOMB Number \n1545-0956\n1. Applicant’s name (plan sponsor or plan administrator)\n2. Applicant's street address\n3. City or town, state and zip code (include foreign country name, province/county and zip code, if applicable)\n4. Applicant’s Employer Identification Number (do not use a Social Security Number) 5. Applicant’s telephone number\n6. Plan number\n7. Plan name\n8. Indicate the last day of the plan year for each delinquent return included in this submission (enter MM/DD/YY)\n9. Check the applicable box below for the amount of payment\nNumber of Delinquent Returns in this Submission\nAmount of Payment (choose one)\n(a) One delinquent return\n$500\n(b) Two delinquent returns\n$1,000\n(c) Three or more delinquent returns\n$1,500\n"
] |
p4053esp.pdf
|
0415 Publ 4053 (EN-SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/p4053esp.pdf
|
[
"I\nn accordance with federal law and the Department of the Treasury – Internal Revenue \nService policy, discrimination against taxpayers on the basis of race, color, national origin \n(including limited English proficiency), disability, sex (in education programs or activities), \nage or reprisal is prohibited in programs and activities receiving federal financial assistance.\nTaxpayers with a disability may request a reasonable accommodation and taxpayers with \nlimited English proficiency may request language assistance to access service.\nare\nPROTECTED\nPROTECTED\nOperations Director, \nCivil Rights Division\nInternal Revenue Service\nRoom 2413\n1111 Constitution Avenue, NW \nWashington, DC 20224\nPublication 4053 (EN/SP) (Rev. 4-2015) Catalog Number 64031P Department of the Treasury Internal Revenue Service www.irs.gov\nCivil Rights\nCivil Rights\nDe acuerdo con la ley federal y la política del Departamento del Tesoro - Servicio de \nImpuestos Internos, la discriminación contra los contribuyentes basada en raza, color, origen \nnacional (incluso el dominio limitado del inglés), discapacidad, género (en los programas \neducativos o actividades), edad o represalia, está prohibida en los programas o actividades \nque reciben asistencia financiera federal.\nLos contribuyentes con una discapacidad pueden solicitar acomodo razonable y \ncontribuyentes con un dominio limitado del inglés podrán solicitar asistencia con el idioma \npara tener acceso al servicio.\nDerechos Civiles \nDerechos Civiles \nYour \nSus \nestán PROTEGIDOS\nPROTEGIDOS\nIf a taxpayer believes he or she has been discriminated against, \na written complaint should be sent to the address referenced \nwithin. For all other inquiries concerning taxpayer civil rights, \ncontact us at the mailing address or e-mail us at \[email protected]\nDo not send tax returns or other tax-related information to the \nCivil Rights Division office or e-mail address.\nSi un contribuyente cree que él o ella ha sido discriminado, debe \nenviar una queja por escrito al IRS, a la dirección de referencia. \nPara todas las demás consultas relacionadas a los derechos \nciviles del contribuyente, comuníquese a la dirección que aparece \na la izquierda o envíenos un correo electrónico a \[email protected]\nNo envíe declaraciones de impuestos u otra información que no esté \nrelacionada con los derechos civiles, a la oficina de la División de \nDerechos Civiles o al correo electrónico.\n"
] |
p1544sp.pdf
|
0914 Publ 1544 (SP) (PDF)
|
https://www.irs.gov/pub/irs-pdf/p1544sp.pdf
|
[
"Acontecimientos \nFuturos\nSi desea obtener la información más reciente \nsobre los acontecimientos relacionados con la \nPublicación 1544(SP), tal como legislación \npromulgada después que ésta fue impresa, \nacceda a www.irs.gov/pub1544sp.\nQué Hay de Nuevo\nPresentación electrónica. Usted quizás po\ndrá presentar electronicamente el Formulario \n8300, en inglés, usando el sistema electrónico \nde BSA (conforme con la Ley de Acuerdo de \nConfidencialidad de Bancos, BSA, por sus si\nglas en inglés) (E-Filing de FinCEN). Vea Cuán-\ndo, dónde y qué se tiene que presentar, más \nadelante.\nIntroducción\nSi, en un período de 12 meses, usted recibe de \nun comprador más de $10,000 en efectivo \nproducto de una transacción llevada a cabo en \nsu ocupación o negocio, tiene que declarar la \ntransacción al Servicio de Impuestos Internos \n(IRS, por sus siglas en inglés) y a la Financial \nCrimes Enforcement Network (Red para hacer \ncumplir la ley contra delitos financieros, o \nFinCEN, por su abreviatura en inglés) en el \nFormulario 8300SP, Informe de Pagos en \nEfectivo en Exceso de $10,000 Recibidos en \nuna Ocupación o Negocio o en el Formulario \n8300, Report of Cash Payments Over $10,000 \nReceived in a Trade or Business, en inglés.\nEn esta publicación se explica por qué, \ncuándo y dónde debe declarar estos pagos en \nefectivo, y las multas considerables que se \nimponen por no declarar dichos pagos.\nAlgunas organizaciones no tienen que \npresentar el Formulario 8300SP, incluidas \ninstituciones financieras y casinos que deben \npresentar el Informe de la FinCen 112, en \ninglés, BSA Currency Transaction Report \n(BCTR) (Informe de transacciones en efectivo \nconforme \na \nla \nLey \nde \nAcuerdo \nde \nConfidencialidad de Bancos, BCTR por sus \nsiglas en inglés). Éstas no son discutidas en \nesta publicación.\nEn \nesta \npublicación \nencontrará \nexplicaciones \nsobre \nlos \npuntos \nmás \nimportantes y la terminología relacionada con el \nFormulario 8300SP. Lea las instrucciones \nadjuntas a este formulario, ya que explican lo \nque debe anotar en cada línea del mismo.\n¿Por qué hay que \ndeclarar estos pagos?\nA menudo, los contrabandistas y narcotrafican\ntes hacen transacciones de grandes cantida\ndes de efectivo con el propósito de “blanquear” \n(lavar) dinero proveniente de actividades ilíci\ntas. El término “blanquear” (lavar) significa con\nvertir el dinero “sucio”, u obtenido ilegalmente, \nen dinero “limpio” (como si fuera obtenido legal\nmente).\nDepartment \nof the \nTreasury\nInternal \nRevenue \nService\nPublicación 1544(SP)\n(Rev. Septiembre 2014)\nCat. No. 24236K\nInforme de \nPagos en\nEfectivo en \nExceso\nde $10,000\n(Recibidos en una\nOcupación o Negocio)\nObtenga formularios y otra información más rápido y fácil en:\n• IRS.gov (English) \n• IRS.gov/Spanish (Español) \n• IRS.gov/Chinese (中文) \n• IRS.gov/Korean (한국어) \n• IRS.gov/Russian (Pусский) \n• IRS.gov/Vietnamese (TiếngViệt) \nApr 08, 2015\n",
"El gobierno a menudo puede rastrear el ori\ngen de este dinero blanqueado (lavado) me\ndiante los pagos que usted declare. Leyes \naprobadas por el Congreso requieren que us\nted declare estos pagos. Al cumplir con estas \nleyes, se proporciona información valiosa para \nayudar a poner fin a las operaciones de los eva\nsores de impuestos y los que se benefician de \nactividades ilícitas.\nLa USA Patriot Act (Ley patriota de los Esta\ndos Unidos) del año 2001 amplió el alcance de \ndichas leyes con el propósito de rastrear los \nfondos usados para llevar a cabo acciones te\nrroristas.\n¿Quién tiene que \npresentar el Formulario \n8300-SP?\nPor regla general, toda persona que se dedique \na una ocupación o negocio en los que reciba \nmás de $10,000 en efectivo en una sola tran\nsacción, o en varias transacciones relaciona\ndas, \ntiene \nque \npresentar \nel \nFormulario \n8300SP.\nPor ejemplo, es posible que tenga que pre\nsentar el Formulario 8300SP si la ocupación o \nnegocio al cual se dedica es la compraventa de \njoyas, muebles, barcos, aeronaves o automóvi\nles, si es prestamista, abogado o corredor de \nbienes raíces, o si se trata de una compañía de \nseguros o de una agencia de viajes. Las reglas \nespeciales que deben cumplir los secretarios \nde los tribunales federales o estatales aparecen \nmás adelante bajo Fianza recibida por secre-\ntarios de los tribunales.\nSin embargo, usted no tiene que presentar \nel Formulario 8300SP si la transacción no está \nrelacionada con su ocupación o negocio. Por \nejemplo, si es dueño de una joyería y vende su \nautomóvil personal por una cantidad superior a \n$10,000 en efectivo, no tendrá que presentar el \nFormulario 8300SP por esta transacción.\nDefinición de transacción. Se lleva a cabo \nuna “transacción” cuando:\nSe venden bienes o propiedades, o se \nprestan servicios;\nSe alquila una propiedad;\nSe intercambia efectivo por otro efectivo;\nSe contribuye a una cuenta de fideicomiso \no a una cuenta en plica (depósito en custo\ndia de un tercero);\nSe saca o se paga un préstamo; o\nSe convierte el efectivo en un instrumento \nnegociable, como un cheque o un bono.\nDefinición de persona. Una “persona” incluye \nuna persona física, una empresa o compañía, \nuna sociedad anónima, una sociedad colectiva, \nuna asociación, un fideicomiso o un caudal he\nreditario.\nA las organizaciones exentas, incluidas las \nque tienen planes para sus empleados, se las \nconsidera también “personas”. Sin embargo, \nlas organizaciones exentas no tienen que pre\nsentar el Formulario 8300SP cuando reciben \nuna donación caritativa superior a $10,000 en \nefectivo, debido a que dicha donación no la re\nciben en el transcurso de una ocupación o ne\ngocio.\nTransacciones en el extranjero. No tiene \nque presentar el Formulario 8300SP si toda la \ntransacción (incluyendo la recepción del efecti\nvo) se lleva a cabo fuera de:\nLos 50 estados de los Estados Unidos,\nEl Distrito de Columbia,\nPuerto Rico o\nUna posesión o territorio de los Estados \nUnidos.\nSin embargo, tiene que presentar el Formulario \n8300SP si alguna parte de la transacción (in\ncluyendo la recepción del efectivo) se lleva a \ncabo en Puerto Rico o en una posesión o terri\ntorio de los Estados Unidos y usted está sujeto \na las disposiciones del Código Federal de Im\npuestos Internos.\nFianza recibida por los secretarios de los \ntribunales. Todo secretario de un tribunal fe\nderal o estatal que reciba más de $10,000 en \nefectivo en concepto de fianza a favor de una \npersona que ha sido acusada de cualquiera de \nlos delitos penales enumerados a continuación \ntiene que presentar el Formulario 8300SP:\n1. Todo delito federal relacionado con la ley \nde control de narcóticos (sustancias con\ntroladas),\n2. Extorsión (racketeering), \n3. Blanqueo (lavado) de dinero y\n4. Todo delito estatal que sea considerable\nmente similar a los mencionados anterior\nmente en los puntos 1, 2 ó 3.\nPara obtener más información acerca del \nreglamento con el que deben cumplir los secre\ntarios de los tribunales, vea la sección \n1.6050I2 de los Reglamentos Federales del \nImpuesto Sobre los Ingresos Federales.\n¿Qué pagos tienen que \ndeclararse?\nTiene que presentar el Formulario 8300SP pa\nra declarar el efectivo que le paguen si el mis\nmo:\n1. Supera los $10,000,\n2. Lo recibió en:\na. Un solo pago en efectivo superior a \n$10,000,\nb. Varios pagos en efectivo recibidos en \nun período de un año, contado a partir \nde la fecha en que se hizo el pago ini\ncial, que sumen un total de $10,000 u\nc. Otros pagos en efectivo no declara\ndos anteriormente, cuya suma total \nrecibida durante un período de 12 \nmeses sea superior a $10,000.\n3. Lo recibió en el curso de su ocupación o \nnegocio,\n4. Lo recibió del mismo comprador (o agen\nte) y\n5. Lo recibió en una sola transacción o en \nvarias transacciones relacionadas (las \ncuales se definen más adelante).\n¿Qué es efectivo?\nEfectivo es:\n1. El dinero en monedas y billetes de los Es\ntados Unidos (y de cualquier otro país) y\n2. Un cheque de cajero, giro bancario, che\nque de viajero o giro que se reciba, si tie\nne un valor nominal de $10,000 o menos y \nse recibe en:\na. Una transacción que tiene que ser de\nclarada, como se define más adelante \no\nb. Toda transacción en que a usted le \nconste que el pagador evita declarar \nen el Formulario 8300SP.\nEl efectivo puede incluir un cheque de \ncajero aunque a éste se le llame “che-\nque de tesorero” o “cheque bancario”.\nEl efectivo no incluye un cheque girado con\ntra la cuenta bancaria particular de una perso\nna.\nUn cheque de cajero, giro bancario, cheque \nde viajero o giro con un valor nominal de más \nde $10,000 no se considera efectivo. Éstos no \nse consideran efectivo y usted no tiene que \npresentar el Formulario 8300SP cuando los re\ncibe porque, si fueron comprados con dinero en \nefectivo, el banco u otra institución financiera \nque los emitió debe presentar el Informe 112 de \nla FinCEN.\nEjemplo 1. Usted es comerciante y se de\ndica a la compraventa y colección de monedas \n(numismático). Roberto Coruña le compró mo\nnedas de oro por un precio de $13,200. El Sr. \nCoruña le pagó con $6,200 en moneda esta\ndounidense y un cheque de cajero con un valor \nnominal de $7,000. El cheque de cajero se con\nsidera efectivo. En este caso, ha recibido más \nde $10,000 en efectivo y tiene que presentar el \nFormulario 8300SP para declarar esta transac\nción.\nEjemplo 2. Usted se dedica a la venta de \njoyas al por menor. María Núñez le compra una \njoya por $12,000 y le paga con un cheque per\nsonal pagadero a usted por la cantidad de \n$9,600 y con cheques de viajero que ascienden \na $2,400. Debido a que el cheque personal no \nse considera efectivo, usted no ha recibido más \nde $10,000 en efectivo en la transacción. No \ntiene que presentar el Formulario 8300SP.\nEjemplo 3. Usted es un comerciante que \nse dedica a la venta de barcos. Emilia Espinosa \nle compra un barco por $16,500 y le paga con \nun cheque de cajero pagadero a usted por di\ncha cantidad. El cheque de cajero no se consi\ndera efectivo, ya que el valor nominal del mis\nmo es más de $10,000. Usted no tiene que \npresentar el Formulario 8300SP para declarar \nesta transacción.\nPRECAUCION\n´\n!\nPágina 2 \nPublicación 1544(SP) (Septiembre 2014)\n",
"Transacciones que se tienen que \ndeclarar\nUna transacción que tiene que declararse es \naquélla que consiste en la venta al por menor \nde alguno de los siguientes:\n1. Un artículo de consumo duradero, como \nun automóvil o un barco. Un artículo de \nconsumo duradero es una propiedad que \nno es un terreno o un edificio y que:\na. Es apropiado para uso personal,\nb. Se espera que dure por lo menos un \naño bajo uso normal,\nc. Tiene un precio de venta mayor de \n$10,000 y\nd. Se puede ver o tocar (propiedad tan\ngible).\nPor ejemplo, un automóvil cuyo valor \nes $20,000 es un artículo de consumo du\nradero, pero un camión de descarga (vol\nquete) o maquinaria utilizada en una fábri\nca con un valor de $20,000 no lo es. El \nautomóvil es un artículo de consumo dura\ndero aun cuando lo venda a un comprador \npara uso en una ocupación o negocio.\n2. Un artículo coleccionable (por ejemplo, \nuna obra de arte, alfombra, antigüedad, \nmetal, piedra preciosa, sello o moneda).\n3. Un viaje o entretenimiento, si el precio to\ntal de venta de todos los artículos vendi\ndos para el mismo viaje o evento de entre\ntenimiento en una sola transacción (o \nvarias transacciones relacionadas) es \nmás de $10,000.\nAl calcular el precio total de venta de todos \nlos artículos vendidos para un viaje o evento de \nentretenimiento, incluya el precio de venta de \nlos artículos vendidos, como pasajes de avión, \nhabitaciones de hotel y boletos de entrada.\nEjemplo. Usted es agente de viajes. Su \ncliente, Eduardo Juanes, le solicita que flete un \navión de pasajeros con el propósito de llevar a \nun grupo de personas a un evento deportivo en \notra ciudad. Además, le solicita que reserve ha\nbitaciones en un hotel y boletos de entrada al \nevento deportivo para los miembros del grupo. \nEl Sr. Juanes le paga a usted con dos giros por \nun valor de $6,000 cada uno. En esta transac\nción usted ha recibido más de $10,000 en efec\ntivo y, por lo tanto, tiene que presentar el For\nmulario 8300SP.\nVentas al por menor. El término “ventas al \npor menor” significa toda venta hecha en el \ntranscurso de un negocio u ocupación, princi\npalmente las ventas al consumidor final.\nPor lo tanto, si su negocio u ocupación es \nprincipalmente de ventas al consumidor final, \ntodas las ventas que haga en el transcurso de \nsu ocupación o negocio son ventas al por me\nnor. Esto incluye toda venta de artículos para \nreventa.\nAgente o intermediario. Una transacción que \ndebe declararse incluye la venta al por menor \nde los artículos que aparecen en las partidas 1, \n2 ó 3 de la lista anterior, aunque el pago haya \nsido recibido por un agente u otro intermediario \nen vez de directamente por el vendedor.\nExcepción a la definición del \ntérmino “efectivo”\nNo se clasifican como efectivo un cheque de \ncajero, giro bancario, cheque de viajero o giro \nque usted reciba en una transacción que tenga \nque declararse, si una de las siguientes excep\nciones le corresponde:\nExcepción en el caso de ciertos préstamos \nbancarios. No se clasifican como efectivo un \ncheque de cajero, giro bancario, cheque de via\njero o giro si provienen de un préstamo banca\nrio. Como prueba de que se obtuvieron de un \npréstamo bancario, puede usar una copia del \ncontrato del préstamo, un documento escrito, \ninstrucciones del banco acerca del gravamen u \notra prueba similar.\nEjemplo. Usted es concesionario de auto\nmóviles. Le vende un automóvil a Carlota Blan\nco por $11,500. La Srta. Blanco le pagó a usted \n$2,000 en moneda estadounidense y le entregó \nun cheque de cajero por $9,500, pagadero a \nusted y a ella. Se sabe que el cheque de cajero \nproviene de un préstamo bancario porque con\ntiene instrucciones para que se le registre un \ngravamen al automóvil como garantía de pago \ndel préstamo y, por lo tanto, el cheque de caje\nro no se considera efectivo. No tiene que pre\nsentar el Formulario 8300SP en este caso.\nExcepción en el caso de ciertas ventas a \nplazos. No se considera efectivo un cheque \nde cajero, giro bancario, cheque de viajero o gi\nro, si el mismo se recibe como el pago de un \npagaré o de un contrato de ventas a plazos (in\ncluido un contrato de arrendamiento que se \nconsidera una venta para propósitos del im\npuesto federal). Sin embargo, esta excepción le \ncorresponde solamente si:\n1. Usa pagarés o contratos similares en \notras ventas a consumidores en el trans\ncurso normal de su negocio u ocupación y\n2. El total de pagos que reciba como produc\nto de la venta el sexagésimo (60) día des\npués de la fecha en que se efectúe la ven\nta o antes, asciende a un 50% o menos \ndel precio de compra.\nExcepción en el caso de ciertos planes de \npagos iniciales. No se considera efectivo un \ncheque de cajero, giro bancario, cheque de via\njero o giro si lo recibió como pago por un artícu\nlo de consumo duradero o coleccionable y, \nademás, se dan todas las condiciones siguien\ntes:\n1. Lo recibe conforme a un plan de pagos \nque requiere:\na. Uno o más pagos iniciales y\nb. El pago del saldo del precio de la \ncompra en la fecha de la venta.\n2. Lo recibe más de 60 días antes de la fe\ncha de la venta.\n3. Durante el transcurso normal de su ocu\npación o negocio, usa planes de pagos \ncon las mismas condiciones (o similares) \ncuando hace ventas a consumidores.\nExcepción en el caso de viajes y entreteni-\nmiento. No se considera efectivo un cheque \nde cajero, giro bancario, cheque de viajero o gi\nro recibido para un viaje o entretenimiento, si se \ndan todas las condiciones siguientes:\n1. Lo recibe conforme a un plan de pagos \nque requiere:\na. Uno o más pagos iniciales y\nb. Que el saldo del precio de compra se \npague antes de que se proporcione el \nartículo de viaje o entretenimiento \n(como el precio de un pasaje aéreo).\n2. Lo recibe más de 60 días antes de la fe\ncha en la cual vence el pago final.\n3. Durante el transcurso normal de su ocu\npación o negocio, usa planes de pagos \ncon las mismas condiciones (o similares) \ncuando hace ventas a consumidores.\nNúmero de identificación del \ncontribuyente (TIN)\nTiene que proveer el número correcto de identi\nficación del contribuyente (TIN, por sus siglas \nen inglés) de la(s) persona(s) de la(s) cual(es) \nrecibe el efectivo. Si la transacción se hace en \nrepresentación de otra(s) persona(s), usted tie\nne que proveer el número de identificación del \ncontribuyente de esa(s) persona(s). Si no sabe \ncuál es el número de identificación del contribu\nyente de la(s) persona(s), tiene que pedírselo. \nUsted podría estar sujeto a multas o sanciones \npor no incluir el número de identificación del \ncontribuyente o por incluir un número incorrec\nto.\nHay tres tipos de número de identificación \ndel contribuyente:\n1. El número de identificación de una perso\nna física, incluida una persona que es \ndueña única de un negocio, es su número \nde Seguro Social (SSN, por sus siglas en \ninglés).\n2. El número de identificación del contribu\nyente de una persona que es extranjera y \nno residente, pero necesita dicho número \ny no tiene derecho a obtener un número \nde Seguro Social, es el número de identifi\ncación del contribuyente individual (ITIN, \npor sus siglas en inglés) expedido por el \nIRS. Un número de identificación del con\ntribuyente individual consta de nueve dígi\ntos, similar a un número de Seguro Social.\n3. El número de identificación del contribu\nyente individual de otras personas, inclui\ndas las sociedades anónimas, sociedades \ncolectivas y caudales hereditarios, es el \nnúmero de identificación del empleador \n(EIN, por sus siglas en inglés).\nExcepción. Usted no está obligado a propor\ncionar el TIN de un extranjero no residente o \nuna organización extranjera si dicha persona u \norganización extranjera:\n1. No recibe ingresos que estén realmente \nrelacionados con la operación de una ocu\npación o negocio en los Estados Unidos;\nPublicación 1544(SP) (Septiembre 2014)\n Página 3\n",
"2. No tiene oficina o lugar de negocios, ni \nagente financiero o agente pagador en los \nEstados Unidos;\n3. No presenta una declaración de impues\ntos federales;\n4. No proporciona un certificado de reten\nción de impuestos, el cual se describe en \nla sección 1.14411(e)(2) ó (3) ó \n1.14415(c)(2)(iv) ó (3)(iii), según se exija \nen la sección 1.14411(e)(4)(vii);\n5. No tiene que proporcionar el TIN en una \ndeclaración escrita ni en ningún otro docu\nmento obligatorio conforme a la sección \n897 o la sección 1445 de los reglamentos \nde los impuestos sobre el ingreso o\n6. En el caso de un extranjero no residente, \nel mismo no ha optado por presentar una \ndeclaración conjunta de impuesto federal \nsobre los ingresos con su cónyuge, que \nes ciudadano estadounidense o residente \nde los Estados Unidos.\n¿Qué son transacciones \nrelacionadas?\nLas transacciones que se lleven a cabo entre \nun comprador (o un agente del comprador) y un \nvendedor en un período de 24 horas son tran\nsacciones relacionadas. Si usted recibe de un \nmismo comprador más de $10,000 en efectivo \nen dos o más transacciones en un período de \n24 horas, tiene que tratar las transacciones co\nmo una sola transacción y declarar los pagos \nen el Formulario 8300SP.\nPor ejemplo, si en un mismo día le vende a \nun cliente dos productos por un valor de $6,000 \ncada uno y el cliente le paga en efectivo, estas \ntransacciones están relacionadas. Debido a \nque el total de ambas transacciones asciende a \n$12,000 (más de $10,000), tiene que presentar \nel Formulario 8300SP.\nMás de 24 horas entre transacciones. Las \ntransacciones son relacionadas aunque se lle\nven a cabo en un período de más de 24 horas \nentre ellas y se tiene conocimiento, o tiene ra\nzón para saber, que cada transacción es una \nde una serie de transacciones relacionadas en\ntre ellas.\nPor ejemplo, usted es agente de viajes y un \ncliente le paga $8,000 en efectivo para un viaje. \nDos días más tarde, el mismo cliente le paga \n$3,000 adicionales en efectivo para incluir a \notra persona en el viaje. Estas transacciones \nestán relacionadas y, por lo tanto, tiene que \npresentar el Formulario 8300SP para declarar\nlas.\n¿Qué se hace en el caso de \ntransacciones \nsospechosas?\nSi recibe $10,000 o menos en efectivo, puede \npresentar \nvoluntariamente \nel \nFormulario \n8300SP si la transacción parece ser sospe\nchosa.\nUna transacción es sospechosa si parece \nque una persona trata de persuadirlo para no \npresentar el Formulario 8300SP o trata de que \nusted presente un Formulario 8300SP con in\nformación falsa o incompleta, o si hay indicios \nde una posible actividad ilegal.\nSi usted tiene alguna sospecha, le instamos \na que se comunique lo antes posible con Inves\ntigación Penal del IRS (Criminal Investigation) \nde su localidad. O puede llamar gratis a la línea \ndirecta de la FinCEN para instituciones finan\ncieras, al 18665563974. El servicio en esta lí\nnea telefónica está disponible en inglés.\nCuándo, dónde y qué se \ntiene que presentar\nLa cantidad que usted reciba, así como cuándo \nla reciba, determinará cuándo tiene que pre\nsentar la declaración. Por lo general, tiene que \npresentar el Formulario 8300SP dentro de un \nplazo de 15 días después de recibir un pago. Si \nel día en que se vence el plazo para presentar \nel Formulario 8300SP (el decimoquinto (15) \ndía o el último día en el que puede presentar el \nformulario a tiempo) es un sábado, domingo o \ndía feriado oficial, dicho día de vencimiento se \npospone hasta el próximo día que no sea sába\ndo, domingo o día feriado oficial.\nMás de un pago. En algunas transacciones, \nel comprador puede acordar con usted pagarle \nen efectivo a plazos. Si el primer pago es más \nde $10,000, tiene que presentar el Formulario \n8300SP dentro de un plazo de 15 días. Si el \nprimer pago no excede de $10,000, tiene que \nsumar el primer pago y todo pago posterior que \nhaya recibido en un período de un año, a partir \nde la fecha en que recibió el primer pago. \nCuando el total de los pagos en efectivo as\ncienda a más de $10,000, tiene que presentar \nel Formulario 8300SP dentro de un plazo de \n15 días.\nDespués \nde \npresentar \nel \nFormulario \n8300SP, tiene que comenzar a contar de nue\nvo los pagos en efectivo que reciba de ese \ncomprador. Si recibe de dicho comprador más \nde $10,000 en pagos adicionales en efectivo \ndentro de un período de 12 meses, tiene que \npresentar otro Formulario 8300SP. Tiene que \npresentar el formulario dentro de un plazo de \n15 días a partir de la fecha en la cual recibió el \npago que causó que los pagos adicionales su\nmaran más de $10,000.\nSi ya está obligado a presentar el Formula\nrio 8300SP y recibe pagos adicionales en un \nperíodo de 15 días antes de la fecha en que de\nbe presentarlo, puede declarar en un solo for\nmulario todos los pagos recibidos.\nEjemplo. El 10 de enero usted recibió un \npago de $11,000 en efectivo. Recibió también \n$4,000 el 15 de febrero, $5,000 el 20 de marzo \ny $6,000 el 12 de mayo en pagos adicionales \nen efectivo correspondientes a la misma tran\nsacción. Tiene que presentar el Formulario \n8300SP a más tardar el 25 de enero por el pa\ngo de $11,000. A más tardar el 27 de mayo, de\nbe presentar un Formulario 8300SP adicional \npor los pagos adicionales que suman $15,000.\n¿Cómo enmendar un informe? Si va a en\nmendar un informe, marque el encasillado 1a, \nen la parte superior del Formulario 8300SP. \nComplete el formulario en su totalidad (de la \nParte I a la Parte IV) e incluya la información \nque está enmendando. No adjunte una copia \ndel informe original.\nDónde se presenta el Formulario 8300-SP. \nEnvíe el formulario por correo a la dirección que \naparece en las instrucciones del Formulario \n8300SP.\nUsted quizás podrá presentar electrónica\nmente el Formulario 8300, en inglés, usando el \nsistema electrónico de BSA (conforme con la \nLey de Acuerdo de Confidencialidad de Ban\ncos, BSA , por sus siglas en inglés) (E-Filing de \nFinCEN ). En estos momentos, el Formulario \n8300 sólo se puede presentar electrónicamente \nen inglés. Si desea presentar en español, en\nvíenos el Formulario 8300SP en papel. Para \nmás información, visite el sistema de BSA E-Fi-\nling bsaefiling.fincen.treas.gov, en inglés.\nRequisito de entregar una notificación al \ncomprador. Tiene que entregar una notifica\nción por escrito o por vía electrónica a cada \npersona cuyo nombre aparezca en algún For\nmulario 8300SP que usted tenga que presen\ntar. Puede dar la notificación por vía electrónica \núnicamente si el receptor acepta recibirla en tal \nformato. La notificación tiene que incluir el nom\nbre y la dirección de su establecimiento, el \nnombre y el número de teléfono de la persona \nde contacto y el total de efectivo recibido de \nesa persona durante el año que usted tiene que \ndeclarar. En dicha notificación, tiene que indi\ncar también que está suministrando esta infor\nmación al IRS .\nTiene que enviar esta notificación al com\nprador a más tardar el 31 de enero del año si\nguiente al año en el cual recibió el efectivo que \ncausó que tuviera que presentar el formulario.\nDebe guardar durante 5 años una co\npia de cada Formulario 8300SP que \nhaya presentado.\nEjemplos\nEjemplo 1. Patricio Moreno es el gerente \nde ventas de “Automóviles de Exhibición, Inc.”. \nEl 6 de enero de 2015, Juana Leal le compra un \nautomóvil nuevo y se lo paga con $18,000 en \nefectivo. Patricio le pide a Juana que le muestre \nuna identificación con el propósito de obtener \nlos datos necesarios para completar el Formu\nlario 8300SP. Un Formulario 8300SP debida\nmente completado correspondiente a esta tran\nsacción aparece al final de esta publicación.\nPatricio tiene que enviar por correo el For\nmulario 8300SP a más tardar el día 21 de ene\nro de 2015 a la dirección que aparece en las \ninstrucciones del mismo o presentar electróni\ncamente el Formulario 8300, en inglés, usando \nel sistema electrónico de BSA (E-Filing de Fin \nCEN) como un método alternativo para la pre\nsentación del Formulario 8300SP. Además, \ntiene que enviarle a Juana una notificación a \nmás tardar el 31 de enero de 2016.\nEjemplo 2. Usemos los mismos datos del \nEjemplo 1, pero supongamos que en este caso \nJuana acordó hacer varios pagos en efectivo \nde $6,000 cada uno el día 6 de enero, el día 6 \nRECORDS\n´\nPágina 4 \nPublicación 1544(SP) (Septiembre 2014)\n",
"de febrero y el día 6 de marzo. Patricio tendrá \nque presentar un Formulario 8300SP a más \ntardar el 23 de febrero (17 días después de re\ncibir la totalidad de los pagos en efectivo que \nasciendan a más de $10,000 dentro de un pe\nríodo de un año porque el 21 de febrero de \n2015, es un sábado). Patricio no está obligado \na declarar los $6,000 restantes recibidos en \nefectivo, ya que esa cantidad no es más de \n$10,000. No obstante, puede declararlos si \ncree que se trata de una transacción sospecho\nsa.\nMultas y sanciones\nLa ley establece que se impongan multas civi\nles por no:\nPresentar un Formulario 8300SP correcto \npara la fecha de vencimiento del mismo y\nCumplir con el requisito de entregar una \nnotificación a cada persona cuyo nombre \naparece en el Formulario 8300SP.\nSi usted, a sabiendas, hace caso omiso del \nrequisito de presentar un Formulario 8300SP \ncorrecto para la fecha de vencimiento del mis\nmo, la multa que se le impondrá será la mayor \nde las dos cantidades siguientes:\n1. $25,000 o\n2. La cantidad de efectivo que recibió y que \nestaba obligado a declarar (hasta un má\nximo de $100,000).\nLa ley establece que se impongan multas y \nsanciones por:\nNo presentar intencionalmente el Formula\nrio 8300SP,\nPresentar intencionalmente un Formulario \n8300SP falso o fraudulento,\nImpedir o tratar de impedir que se presen\nte el Formulario 8300SP y\nHacer arreglos, ayudar a que se hagan \narreglos, o tratar de que se hagan arreglos \npara que se lleve a cabo una transacción \nde tal manera que parezca que no es ne\ncesario presentar el Formulario 8300SP.\nSi intencionalmente no cumple el requisito \nde presentar el Formulario 8300SP, podría im\nponérsele una multa de hasta $250,000 a las \npersonas físicas ($500,000 en el caso de una \nsociedad anónima) o una condena de hasta 5 \naños de cárcel, o ambas. Estas cantidades en \ndólares se imponen de acuerdo a lo estipulado \nen la sección 3571 del Título 18 del Código de \nlos Estados Unidos.\nLas sanciones por no presentar el Formula\nrio 8300SP se pueden imponer también a toda \npersona (incluso a un pagador) que trate de di\nficultar o impedir que el vendedor (o el estable\ncimiento comercial) presente un Formulario \n8300SP correcto. Esto incluye todo intento de \nestructurar la transacción de manera que pa\nrezca innecesario presentar el Formulario \n8300SP. “Estructurar” significa dividir una tran\nsacción cuantiosa de efectivo en pequeñas \ntransacciones de efectivo.\nCómo Obtener Ayuda \ncon los Impuestos\nYa sea si necesita ayuda con un asunto tributa\nrio, si necesita que se le prepare su declaración \nde impuestos o si necesita obtener gratuita\nmente una publicación o formulario, obtenga la \nayuda que necesite de la manera que le sea \nconveniente a usted. Acceda a la Internet, utili\nce un teléfono inteligente (smartphone), llame o \nvisite a una oficia del IRS cerca de usted. \nAyuda gratuita con la preparación de su de-\nclaración de impuestos. Usted puede obte\nner ayuda gratuita para la preparación de la de\nclaración de impuestos en todo el país con \nvoluntarios certificados por el IRS. El programa \nVolunteer Income Tax Assistance (Programa \nde Ayuda Voluntaria a los Contribuyentes o \nVITA, por sus siglas en inglés) ayuda a los con\ntribuyentes de recursos bajos a medianos, los \ncontribuyentes de edad avanzada, los contribu\nyentes discapacitados y los contribuyentes que \ntienen un dominio limitado del inglés. El progra\nma Tax Counseling for the Elderly (Programa \nde Asesoramiento para las Personas de Edad \nAvanzada o TCE, por sus siglas en inglés) ayu\nda a los contribuyentes de 60 años de edad o \nmás con sus declaraciones de impuestos. La \nmayoría de los locales VITA y TCE ofrecen la \npresentación electrónica gratuita y los volunta\nrios le informarán sobre los créditos y deduc\nciones a los que quizás tenga derecho. Ade\nmás, algunos locales de VITA y TCE le proveen \na los contribuyentes la oportunidad de preparar \nsu declaración con la asistencia de un volunta\nrio certificado por el IRS. Para ubicar un local \nde ayuda VITA o TCE cerca de usted, puede \nutilizar el VITA Locator Tool (Recurso para ubi\ncar locales VITA), disponible en inglés, en \nIRS.gov, \npuede \ndescargar \nla \naplicación \nIRS2Go o puede llamar al 18009069887.\nComo parte del programa TCE, la Asocia\nción Estadounidense de Personas Jubiladas \n(AARP, por sus siglas en inglés) ofrece el pro\ngrama de asesoramiento AARP Tax-Aide (Pro\ngrama de Ayuda Tributaria de la Asociación Es\ntadounidense de Personas Jubiladas). Para \nubicar el sitio del programa AARP Tax-Aide \nmás cercano a usted, visite el sitio web de la \nAARP, www.aarp.org/money/taxaide, en inglés, \no llame al 18882277669. Para más informa\nción sobre estos programas, visite IRS.gov e in\ngrese la palabra clave “VITA” en la casilla \nSearch (Buscar).\nInternet. IRS.gov y IRS2Go están listos cuan\ndo usted lo está –las 24 horas del día, los 7 días \nde la semana.\nDescargue la aplicación gratuita IRS2Go \nde la tienda de aplicaciones iTunes o Goo-\ngle Play. Utilice la aplicación para verificar \nel estado de su reembolso, pedir trasuntos \n(transcripciones) de su declaración de im\npuestos o su cuenta tributaria, ver el canal \ndel IRS en YouTube, obtener noticias rela\ncionadas con el IRS tan pronto se difundan \nal público, suscribirse a noticias actualiza\ndas relacionadas con la temporada de pre\nsentación de declaraciones o consejos tri\nbutarios diarios y seguir las noticias que el \nIRS publica en Twitter, en @IRSnews, para \nobtener las noticias sobre los impuestos \nfederales más recientes, incluyendo infor\nmación acerca de cambios en la ley tribu\ntaria y programas importantes del IRS.\nRevise el estado de su reembolso para el \naño 2013 utilizando ¿Dónde está mi \nreembolso?, en el sitio IRS.gov. O también \npuede acceder a la aplicación IRS2Go y \npulsar sobre el enlace Refund Status (Es\ntado de su reembolso), en inglés. El IRS \nemite más de 9 de cada 10 reembolsos en \nmenos de 21 días. Al usar estas aplicacio\nnes, puede comenzar a verificar el estado \nde su reembolso dentro de 24 horas des\npués de que recibamos su declaración \npresentada electrónicamente o 4 semanas \ndespués de que envía la declaración en \npapel. Se le proveerá una fecha específica \nde cuándo se le emitirá el reembolso a us\nted una vez el IRS tramite su declaración \nde impuestos y apruebe su reembolso. El \nIRS actualiza la información en “¿Dónde \nestá mi reembolso?” cada 24 horas, usual\nmente en la noche. Por lo tanto, puede ve\nrificar su reembolso una vez al día; no es \nnecesario que verifique varias veces al \ndía.\nUtilice el Interactive Tax Assistant (Asis\ntente tributario interactivo), disponible en \ninglés, para buscar respuestas a sus pre\nguntas relacionadas con los impuestos. \nNo necesita esperar en el teléfono ni hacer \nturno. El asistente tributario interactivo es\ntá disponible las 24 horas del día, los 7 \ndías de la semana, y le provee una varie\ndad de información tributaria relacionada \ncon la presentación de declaraciones, de\nducciones, créditos e ingresos. Cuando \nllega a la pantalla que le muestra la res\npuesta, puede imprimir la entrevista en su \ntotalidad y la respuesta final para sus ar\nchivos. Se añaden nuevos temas regular\nmente. Las respuestas que no pueda obte\nner a través del asistente tributario \ninteractivo quizás las pueda obtener en \nTax Trails (Caminos tributarios), disponible \nen inglés, que es uno de los temas tributa\nrios que está disponible en IRS.gov, el \ncual contiene información tributaria para \npersonas físicas y negocios. Además, tam\nbién puede buscar el IRS Tax Map (Mapa \ntributario del IRS), en inglés, el cual incluye \nun índice de temas tributarios para \ncontribuyentes internacionales. Puede \nutilizar el Mapa tributario del IRS para \nbuscar en las publicaciones y las instruc\nciones por tema o palabra clave. El mapa \ntributario del IRS une los formularios y pu\nblicaciones del IRS dentro de un recurso \nde búsqueda y provee un punto de acceso \na información sobre la ley tributaria por te\nma. Si busca en el Mapa tributario del IRS, \nencontrará enlaces al material relacionado \nen las publicaciones, formularios e instruc\nciones, preguntas y respuestas y Temas \nTributarios del IRS.\nComenzando con esta temporada de pre\nsentación, usted puede ver e imprimir in\nmediatamente de manera gratuita todas \nlas 5 clases de trasuntos (transcripciones) \nde los impuestos federales para personas \nPublicación 1544(SP) (Septiembre 2014)\n Página 5\n",
"físicas (declaraciones de impuestos, resú\nmenes o trasuntos de las cuentas tributa\nrias, estados de salarios e ingresos y veri\nficación de que no se ha presentado una \ndeclaración de impuestos) usando Get \nTranscript (Obtener un trasunto), en in\nglés. También, le puede solicitar al IRS \nque le envíe un trasunto de una declara\nción o de una cuenta a usted. Si escoge la \nopción Tax Record (Archivo tributario), en \ninglés, en IRS2Go, la opción “Ordenar \nTranscripción” en IRS.gov/espanol o la op\nción de llamar al 18009089946, sólo ten\ndrá la opción de recibir su trasunto por me\ndio del correo. Los trasuntos de \ndeclaraciones de impuestos y de cuentas \ntributarias generalmente están disponibles \npara el año actual y los últimos tres años.\nAverigüe si tiene derecho a reclamar el \ncrédito tributario por ingreso del trabajo \n(EITC, por sus siglas en inglés) y estime la \ncantidad del crédito con el Asistente EIC, \ndisponible en español.\nVisite la sección Información sobre avisos \ndel IRS para recibir respuestas a pregun\ntas sobre un aviso o carta que recibió del \nIRS.\nSi recibió el crédito para las personas que \ncompran vivienda por primera vez, puede \nutilizar el recurso First Time Homebuyer \nCredit Account Look-up (Recurso para \nbuscar la cuenta relacionada con el crédito \npara las personas que compran vivienda \npor primera vez), en inglés, para obtener \ninformación sobre sus reintegros y el saldo \nde su cuenta.\nRevise el estado de su declaración en\nmendada utilizando ¿Dónde está mi \ndeclaración enmendada?. Acceda a \nIRS.gov/espanol e ingrese las palabras \nclave “Dónde está mi declaración enmen\ndada” en la casilla Search (Buscar). Por lo \ngeneral, puede esperar que su declaración \nenmendada tome hasta 12 semanas en \ntramitarse a partir de la fecha en que la re\ncibimos. Puede tomar hasta 3 semanas \ndesde la fecha en que nos envía la decla\nración enmendada para que se pueda ver \nque se recibió en nuestros sistemas.\nEfectúe un pago utilizando una de las op\nciones seguras y convenientes de pago \nelectrónico que están disponibles en \nIRS.gov. Si desea más información, selec\ncione la pestaña titulada Payment (Pago), \ndesde la página principal IRS.gov. La in\nformación está disponible en inglés.\nAverigüe si tiene derecho a establecer un \narreglo de pagos y haga una Solicitud \nElectrónica para el Acuerdo de Pagos a \nPlazos, disponible en inglés, si adeuda \nmás impuesto de lo que puede pagar hoy.\nCalcule su retención de impuestos sobre \nlos ingresos con la Calculadora de \nRetenciones, en IRS.gov/espanol. La pue\nde utilizar si se le retuvo demasiado im\npuesto o si se le retuvo poco impuesto, si \nsu situación personal ha cambiado, si está \ncomenzando un nuevo trabajo o si usted \nsimplemente desea saber si se le está re\nteniendo la cantidad correcta de impues\ntos.\nSaber si usted está sujeto al impuesto mí\nnimo alternativo, utilizando el Alternative \nMinimum Tax (AMT) Assistant (Asistente \npara el impuesto mínimo alternativo), en \ningles, disponible en inglés en el sitio web \nlRS.gov.\nSolicite un PIN de Presentación Electró-\nnica accediendo a IRS.gov/espanol e in\ngresando las palabras clave “PIN de pre\nsentación electrónica” en la casilla Search \n(Buscar).\nDescargue formularios, instrucciones y pu\nblicaciones, incluidas algunas versiones \naccesibles de los mismos para personas \ncon discapacidades.\nLocalice el Centro de Ayuda al Contri-\nbuyente que le quede más cercano utili\nzando la herramienta para la búsqueda de \nlas oficinas locales del IRS, en IRS.gov; o \nen IRS2Go, escoja la opción Contact Us \n(Comunicarse con nosotros) y luego local \noffices, en inglés. Un empleado de esa ofi\ncina le puede contestar preguntas sobre \nsu cuenta tributaria o ayudarle a estable\ncer un plan de pagos. Antes de visitar la \noficina, verifique la herramienta para la \nbúsqueda de las oficinas locales en \nIRS.gov o la opción local offices, que se \nencuentra bajo la opción Contact Us, en \nIRS2Go para que verifique la dirección, el \nnúmero telefónico, las horas de operación \ny los servicios que dicha oficina provee. Si \ntiene una necesidad especial, tal como \nuna discapacidad, puede solicitar una cita. \nLlame al número telefónico local para la \noficina indicado en la herramienta para la \nbúsqueda de las oficinas locales o busque \nen la guía telefónica, bajo United States \nGovernment, Internal Revenue Service \n(Gobierno de los Estados Unidos, Servicio \nde Impuestos Internos).\nSolicite un número de identificación del \nempleador (EIN, por sus siglas en in-\nglés). Acceda a IRS.gov e ingrese las pa\nlabras “Apply for an EIN” (Solicitar un EIN), \nen inglés, en la casilla Search (Buscar).\nLea el Código de Impuestos Internos, los \nreglamentos u otra información oficial.\nLea los Internal Revenue Bulletins (Boleti\nnes del IRS).\nSuscríbase para recibir noticias locales y \nnacionales relacionadas con los impuestos \npor medio del correo electrónico. Simple\nmente, pulse sobre el enlace titulado \nSubscriptions, que se encuentra sobre la \ncasilla Search (Buscar) en IRS.gov y esco\nja entre una variedad de opciones.\nTeléfono. Puede llamar al IRS o puede llevarlo \nen su bolsillo con la aplicación IRS2Go en su \nteléfono inteligente o tableta. Descargue la apli\ncación gratuita IRS2Go de la tienda de aplica\nciones iTunes o Google Play.\nLlame para ubicar el local de ayuda volun\ntaria, al 18009069887 o puede utilizar la \nherramienta para ubicar los locales VITA \nen IRS.gov o descargar la aplicación \nIRS2Go. Los contribuyentes de recursos \nbajos a medianos, los contribuyentes de \nedad avanzada, los contribuyentes disca\npacitados y los contribuyentes que tienen \nun dominio limitado del inglés pueden ob\ntener ayuda gratuita con su declaración de \nimpuestos de parte del programa Volun-\nteer Income Tax Assistance (Programa de \nAyuda Voluntaria a los Contribuyentes o \nVITA, por sus siglas en inglés). El progra\nma Tax Counseling for the Elderly (Progra\nma de Asesoramiento para las Personas \nde Edad Avanzada o TCE, por sus siglas \nen inglés) está diseñado para ayudar a los \ncontribuyentes de 60 años de edad o más \ncon su declaración de impuestos. En la \nmayoría de los locales VITA y TCE usted \npuede presentar la declaración electróni\ncamente gratis. Algunos locales ofrecen \nvoluntarios que han sido certificados por el \nIRS para ayudarle a preparar su declara\nción de impuestos. A través del programa \nde TCE, la Asociación Estadounidense de \nPersonas Jubiladas (AARP, por sus siglas \nen inglés) ofrece el programa de asesora\nmiento AARP Tax-Aide (Programa de Ayu\nda Tributaria de la Asociación Estadouni\ndense de Personas Jubiladas). Para \nubicar el sitio del programa AARP Tax-Ai-\nde más cercano a usted, llame al \n18882277669.\nLlame al sistema automatizado ¿Dónde \nestá mi reembolso? para revisar el estado \nde su reembolso para el año 2013, al \n18008291954, las 24 horas del día, los 7 \ndías de la semana. Si presenta su declara\nción electrónicamente, la información so\nbre el estado de su reembolso estará dis\nponible generalmente dentro de 24 horas \ndespués de que el IRS reciba su declara\nción de impuestos o 4 semanas después \nde la fecha en que envió la declaración en \npapel. El IRS emite más de 9 de cada 10 \nreembolsos en menos de 21 días. ¿Dónde \nestá mi reembolso? le proveerá una fecha \nespecífica en donde se le emitirá el reem\nbolso a usted una vez el IRS tramite su de\nclaración de impuestos y apruebe su \nreembolso. Antes de llamar, tenga su de\nclaración de impuestos del año 2013 a la \nmano para que pueda proveer su número \nde Seguro Social, su estado civil para \nefectos de la declaración y la cantidad \nexacta en dólares entera de su reembolso. \nEl IRS actualiza la información en ¿Dónde \nestá mi Reembolso? cada 24 horas, usual\nmente en la noche. Por lo tanto, puede ve\nrificar su reembolso una vez al día; no es \nnecesario que verifique varias veces al \ndía. Note que la información provista ante\nriormente solamente aplica a nuestra línea \ndirecta automatizada. Los funcionarios del \nIRS que atienden a los contribuyentes a \ntravés del teléfono o en los Centros de \nAyuda al Contribuyente sólo le pueden ve\nrificar el estado de su reembolso después \nde que hayan pasado 21 días o más des\nde que presentó su declaración electróni\ncamente o más de 6 semanas desde que \nenvió su declaración en papel por correo.\nLlame a la línea directa para declaraciones \nenmendadas, al 18664642050, para re\nvisar el estado de su declaración enmen\ndada. Por lo general, puede esperar que \nsu declaración enmendada tome hasta 12 \nsemanas en tramitarse a partir de la fecha \nen que la recibimos. Puede tomar hasta 3 \nsemanas desde la fecha en que nos envía \nla declaración enmendada para que se \npueda ver que se recibió en nuestros siste\nmas.\nLlame al 18008293676 (1800\nTAX-FORM) para pedir formularios, \nPágina 6 \nPublicación 1544(SP) (Septiembre 2014)\n",
"instrucciones y publicaciones del año ac\ntual y formularios e instrucciones de años \nanteriores (limitado a los últimos 5 años). \nDeberá recibir su pedido dentro de 10 días \nlaborables.\nLlame para escuchar los temas TeleTax, \nal 18008294477, para escuchar mensa\njes grabados en español sobre varios te\nmas generales relacionados con los im\npuestos para personas físicas y negocios. \nSi entre enero y el 15 de abril usted aun \ntiene preguntas sobre el Formulario 1040, \n1040A o 1040EZ (como por ejemplo, re\nquisitos de presentación, dependientes, \ncréditos, el Anexo D, pensiones y arreglos \nIRA o impuestos sobre el trabajo por cuen\nta propia), llame al 18008291040.\nLlame si utiliza equipo TTY/TDD al \n18008294059, para realizar sus pregun\ntas sobre impuestos o para pedir formula\nrios y publicaciones. El número telefónico \nTTY/TDD es para las personas que son \nsordas, quienes tienen problemas auditi\nvos o quienes tienen una incapacidad del \nhabla. Estas personas pueden acceder al \nIRS a través de servicios de retransmisión, \ntal como el Servicio Federal de \nRetransmisión, en inglés.\nVisitas en persona. Puede encontrar una va\nriedad de formularios, publicaciones y servicios \nen persona.\nProductos. Puede visitar diversas oficinas \nde correos, bibliotecas y oficinas del IRS \npara obtener formularios, instrucciones y \npublicaciones. Algunas oficinas del IRS, \nbibliotecas, oficinas de gobiernos de ciu\ndades y condados tienen una colección de \nproductos que se pueden fotocopiar del \ndocumento original impreso.\nServicios. Usted puede visitar su Centro \nde Ayuda al Contribuyente (TAC, por sus \nsiglas en inglés) local en la mayoría de los \ndías laborables para recibir ayuda en per\nsona con respecto a todo problema rela\ncionado con los impuestos. Un empleado \nde esa oficina le puede contestar pregun\ntas sobre su cuenta tributaria o le puede \nayudar a establecer un plan de pagos. An\ntes de visitar la oficina, verifique la herra\nmienta para la búsqueda de las oficinas lo\ncales en IRS.gov o la opción local offices, \nque se encuentra bajo la opción Contact \nUs, en IRS2Go para que verifique los días \ny las horas de operación y los servicios \nque dicha oficina provee.\nCorrespondencia. Puede enviar su pedido \npara formularios, instrucciones y publicaciones \na la dirección que aparece a continuación. Re\ncibirá una contestación dentro de 10 días labo\nrables después de que recibamos su solicitud.\nInternal Revenue Service\n1201 N. Mitsubishi Motorway\nBloomington, IL 61705-6613\nServicio del Defensor del Contribuyente. El \nServicio del Defensor del Contribuyente (TAS, \npor sus siglas en inglés) es su voz ante el IRS. \nNuestro deber es asegurar que a cada contri\nbuyente se le trate de forma justa, y que usted \nconozca y entienda sus derechos.\n¿Qué puede hacer TAS por usted? Le ofre\ncemos ayuda gratuita para ayudarle a resolver \nproblemas con el IRS que no ha podido resol\nver usted mismo. Sabemos que este proceso \npuede ser confuso, pero, ¡lo peor que se puede \nhacer es no hacer nada! TAS le puede ayudar \nsi usted no puede resolver su problema tributa\nrio con el IRS y además:\nSu problema le causa problemas financie\nros a usted, su familia o su negocio.\nUsted (o su negocio) está enfrentando la \namenaza de acción adversa inmediata.\nUsted ha intentado, vez tras vez, comuni\ncarse con el IRS, pero nadie le ha respon\ndido, o si el IRS no le ha respondido para \nla fecha prometida.\nSi usted reúne los requisitos para recibir nues\ntra ayuda, se le asignará un defensor, quien es\ntará a su lado en cada paso del camino y quien \nhará lo posible para resolver su problema. No\nsotros le podemos ayudar porque:\nTAS es una organización independiente \ndentro del IRS.\nNuestros defensores saben cómo trabajar \ncon el IRS.\nNuestros servicios son gratuitos y se modi\nfican para satisfacer la necesidades de us\nted.\nTenemos oficinas en cada estado, el Dis\ntrito de Columbia y Puerto Rico.\n¿Cómo se puede comunicar con nosotros? \nSi usted cree que TAS posiblemente le puede \nayudar, llame a su defensor local, cuyo número \ntelefónico se halla en el directorio telefónico y \ntambién en la página del Servicio del Defensor \ndel Contribuyente, disponible en inglés. O, nos \npuede \nllamar \nlibre \nde \ncargos \nal \n18777774778.\n¿Además de esto, de qué otra manera ayu-\nda TAS a los contribuyentes? Además, TAS \nse ocupa de resolver problemas de gran escala \no problemas sistémicos que afectan a muchos \ncontribuyentes. Si usted conoce alguno de es\ntos asuntos, favor de informarnos a través del \nSistema de Administración de la Defensa \nSistémica, en inglés.\nTalleres para Contribuyentes de Bajos In-\ngresos. Los Talleres para Contribuyentes de \nBajos lngresos (LITC, por sus siglas en inglés) \nsirven a las personas cuyos ingresos estén por \ndebajo de cierto nivel y que necesitan resolver \nproblemas tributarios, tales como auditorías, \napelaciones y litigios de cobro de impuestos. \nAlgunos talleres pueden proveer información \nsobre los derechos y responsabilidades del \ncontribuyente en diferentes idiomas para aque\nllas personas que hablan inglés como segundo \nidioma. Visite la página del Servicio del \nDefensor del Contribuyente, disponible en in\nglés, o vea la Publicación 4134(SP), Lista de \nTalleres para Contribuyentes de Bajos lngre\nsos.\nPublicación 1544(SP) (Septiembre 2014)\n Página 7\n",
"Formulario \ndel IRS 8300-SP \n(Rev. agosto de 2014) \nDepartment of the Treasury \nInternal Revenue Service \nInforme de Pagos en Efectivo en Exceso de $10,000 \nRecibidos en una Ocupación o Negocio \na Vea las instrucciones para la definición de efectivo. \na Use este formulario para las transacciones que ocurran después del 29 de agosto de \n2014. Sírvase no usar versiones anteriores a partir de esta fecha. Para el Aviso sobre la Ley \nde Confidencialidad de Información y la Ley de Reducción de Trámites, vea la última página. \nFormulario \nde la \nFinCEN \n8300-SP \n(Rev. agosto de 2014) \nOMB No. 1506-0018 \nDepartment of the Treasury \nFinancial Crimes Enforcement Network \n1 Marque el recuadro apropiado, o ambos, si: \na \nenmienda un informe anterior \nb \nes una transacción sospechosa \nParte I \nIdentidad de la persona de quien se recibió el efectivo \n2 Si comprende a más de una persona, marque aquí y vea las instrucciones \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n a\n3 Apellidos \n4 Primer nombre \n5 Inicial \n6 Número de identificación del contribuyente \n7 Dirección (número, calle y número de oficina o de apartamento) \n8 Fecha de nacimiento \n(vea las instrucciones) a\nM M D D A A A A\n9 Ciudad\n10 Estado \n11 Código postal \n12 País (si no es EE.UU.) \n13 Ocupación, profesión o negocio \n14 Documento de identificación \n(ID) \na Tipo a \nb Emitido por a \nc Número a \nParte II \nPersona por quien se efectuó esta transacción \n15 Si esta transacción se hizo a favor de más de una persona, marque aquí y vea las instrucciones \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. a\n16 Apellidos de la persona o nombre de la organización \n17 Primer nombre \n18 Inicial \n19 Número de identificación del contribuyente \n20 Nombre comercial que usa (DBA) (vea las instrucciones) \nNúmero de identificación del empleador \n21 Dirección (número, calle y número de oficina o de apartamento) \n22 Ocupación, profesión o negocio \n23 Ciudad\n24 Estado \n25 Código postal \n26 País (si no es EE.UU.) \n27 Documentación de \nidentificación (ID) extranjera\na Tipo a \nb Emitida por a \nc Número a \nParte III Descripción de la transacción y método de pago \n28 Fecha en que se recibió el efectivo \nM M D D A A A A\n29 Total del efectivo recibido \n$ \n.00 \n30 Si el efectivo se recibió \nen más de un pago, \nmarque aquí a\n31 Precio total si es diferente del \nencasillado 29\n$ \n.00 \n32 \nCantidad de efectivo recibido (en equivalente a dólares de EE.UU.) (tiene que ser igual a la cantidad del encasillado 29) (vea las instrucciones): \na \nMoneda de EE.UU. \n$ \n.00 \n(Cantidad de billetes de $100 o más \n$ \n.00 ) \nb\nMoneda extranjera \n$ \n.00 \n(País a\n) \nc\nCheque(s) de cajero $ \n.00 \nd\nGiro(s) \n$ \n.00 \ne\nLetra(s) bancaria(s) \n$ \n.00 \nf\nCheque(s) de viajero $ \n.00 }\nNombre del emisor y número de serie del instrumento monetario a\n33 \nClase de transacción— \na \nBienes muebles comprados \nb \nBienes raíces comprados \nc \nServicios personales provistos \nd \nServicios profesionales provistos \ne \nPropiedad intangible comprada \nf \nDeudas pagadas \ng \nIntercambio de dinero en efectivo \nh \nFondos fiduciarios o en plica \ni \nFianza recibida por escribanos \nj \nOtras \n(especifique en el encasillado 34) a \n34 Descripción específica de la propiedad o \nservicio indicado en el encasillado 33. Indique el \nnúmero de serie o de registro, dirección, \nnúmero de caso, etc. a\nParte IV Negocio que recibió el dinero en efectivo \n35 Nombre del negocio que recibió el dinero en efectivo \n36 Número de identificación del empleador \n37 Dirección (número, calle y número de oficina o de apartamento) \nNúmero de Seguro Social \n38 Ciudad\n39 Estado \n40 Código postal \n41 Clase de negocio \n42 Declaro bajo pena de perjurio que la información que he suministrado anteriormente, a mi mejor saber y entender, es verídica, correcta y completa. \nFirma \nF\nFuncionario autorizado \nCargo\nF\n43 Fecha de \nla firma \nM M\nD D \nA A A A \n44 Escriba a máquina o en letra de molde el \nnombre de la persona que se debe llamar \n45 Número telefónico de dicha persona\nFormulario 8300-SP del IRS (Rev. 8-2014) \nCat. No. 24396N \nFormulario 8300-SP de la FinCEN (Rev. 8-2014) \nAutomóviles de Exhibición, Inc.\nAve. Industrial #5000\nCualquiera\nP\nA\n1 0 1 0 1\nDistribuidor de Automóviles\nGerente de Ventas\nPatricio Moreno\n999-555-0555\nPatricio Moreno\n18,000\nRápido - Sedán de 4 Puertas\nNo. de Serie XX ABCDEFG-1234567\nCorre\nLeal\nJuana\n3\n3\n3\n1\n0\n0\n6\n1\n9\n6\n3\nAve. Principal #100\nCualquiera\nP\nA\n1 0 1 0 1\nDistribuidora de Cosméticos\nP A\nLicencia de Conducir (Chofer)\n333-00-3333\n3\nA\n3\n3\n3\n0\n 0\n \n18,000\n0\n1\n6\n0\n0\n2\n1\n5\n0\n1\n6\n0\n0\n2\n1\n5\n1\n0\n1\n2\n3\n4\n5\n6\n7\n√\nPágina 8 \nPublicación 1544(SP) (Septiembre 2014)\n"
] |
p5209.pdf
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0215 Publ 5209 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5209.pdf
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[
" \n \n \n \n \nPreparing your 2014 Return \nthe shared responsibility payment \n… what you need to know\nAffordable Care Act\n Individuals and Families \nPublication 5209 (2-2015) Catalog Number 67552B \nMost people had qualifying health care coverage in 2014 and will simply check a box to report that coverage on their federal tax return \nwhen they file in 2015. Others may qualify for an exemption from the requirement to maintain coverage. However, beginning with your \n2014 income tax return, if you or any of your dependents did not have qualifying health care coverage and did not qualify for an \nexemption from the requirement to maintain coverage, you will need to make an individual shared responsibility payment with your \nincome tax return. \nFiguring the payment \nYou can figure your shared responsibility payment using the worksheet included in the instructions for IRS Form 8965, Health Coverage \nExemptions. Tax preparation software can also help you calculate your payment when filing electronically. \nPayment limits \nIn general, the payment amount is either a percentage of your household income or a flat dollar amount, whichever is greater. The \nannual payment amount for 2014 is the greater of: \n• \n1 percent of your household income that is above the tax return filing threshold for your filing status, such as married filing\njointly or single, or\n• \nYour family’s flat dollar amount, which is $95 per adult and $47\n.50 per child under 18, limited to a maximum of $285.\nHowever, your payment is capped at the amount of the national average premium for bronze level health plans available through the \nHealth Insurance Marketplace. For 2014, that amount per individual is $2,448, which equals $204 per month. The maximum payment \nfor a family with five or more members is $12,240, which equals $1,020 per month. \nReporting the payment on your tax return \n• \nEnter your payment amount on line 61 of Form 1040, line 38 of Form 1040A or line 11 of Form 1040EZ\n• \nYour payment amount will either reduce the amount of your refund or increase the amount you owe.\n• \nIf you cannot afford to make your payment at the time you file your tax return, the IRS has a number of ways to work with you\nincluding IRS Direct Pay and online payment agreements.\nDepartment of the Treasury Internal Revenue Service www.irs.gov \n"
] |
p4194cn.pdf
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1214 Publ 4194 (CN) (PDF)
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https://www.irs.gov/pub/irs-pdf/p4194cn.pdf
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[
"低\n收入家庭福利優惠是提供給受雇或自雇的人. \n要符合資格,您必須為低收入到中等收入. 如\n果您符合資格,您必須提交聯邦稅表才能獲得低收入\n家庭福利優惠,即使您無需繳稅或是不需要報稅. 透\n過低收入家庭福利優惠(有時稱為EIC),您有可能繳\n付較低的聯邦稅,不須繳稅,或者得到退稅. 低收入\n家庭福利優惠額取決於:\n•\t\n您是單身還是已婚，以及\n•\t\n您是否有孩子以及有多少個孩子跟您一起住.\n所有符合 EITC 資格的人都具備七個共同點:\n1.\t 必須有工作或自雇收入\n2.\t 持有有效的社會安全號碼\n3.\t 報稅身份不能是夫妻分開報稅\n4.\t 不是非居民之外籍人士\n5.\t 不是他人的合格子女\n6.\t 不可申報2555表或2555-EZ表\n7.\t 投資收入必須在限額以下\n四項申報低收入家庭福利優惠最常見的錯誤:\n1.\t 申報的子女不符合此優惠的條件: 年齡, 關係\n和居住\n2.\t 已婚納稅人錯誤地申報為單身或一家之主\n3.\t 多報或少報收入/費用\n4.\t 社會安全號碼與姓名不符合\nPublication 4194 (CN) (Rev. 12-2014) Catalog Number 59147C Department of the Treasury Internal Revenue Service www.irs.gov\n生活會更輕鬆, 有了\n您要找人幫您報稅嗎？請先做好準備:\n•\t\n您（若是夫妻聯合報稅，也包括配偶）有效的\n駕照或其他含相片的身份證件\n•\t\n稅表上所列人士的有效社會安全卡或社會安全\n號(SSN)驗證信\n•\t\n稅表上所列人士的出生日期\n•\t\n所有收入憑單：W-2表和1099表,社會安全金, \n失業金, 以及其他憑單，例如退休金, 股票，\n利息, 和其他有被預扣稅金的相關文件. 如果\n您是自僱人士或有自己的生意, 請攜帶所有的\n收入文件\n•\t\n所有的開支記錄, 如學費, 抵押利息 或 房產\n税. 如果您是自僱人士或有自己的生意, 請攜\n帶所有的費用開支文件\n•\t\n去年聯邦和州的報稅表副本（如果有）\n•\t\n銀行認證帳戶號碼(Bank Routing Numbers) \n以及帳號以便直接存入任何退稅\n•\t\n被撫養人托兒資訊: 收款者的姓名和地址，以\n及照顧者的社會安全號碼或其他報稅識別號碼\n•\t\n如果是已婚夫婦透過電子方式聯合報稅夫婦兩\n人必須簽署必要表格\n您的報稅員不管是否有收費還是志願的, 為了正確\n地報稅, 避免查稅和罰款或利息, 他必須問很多的\n問題.\n您會雇用報稅員幫您填寫申報稅表吗?\n您必須選擇擁有報稅員識別號碼(PTIN)的人士並簽報稅表. 如需有關如何選擇報稅員的資訊, 請上\nirs.gov/Chinese 稅表申報專區查詢.\n或詢問您的報稅員\n您有没有資格呢.\nwww.irs.gov/eitc\n錯誤有可能延誤退稅中的低收入家庭福利優惠部份，直到錯誤解決為止.如果國稅局審查您的退稅，發現低\n收入家庭福利優惠申請不正確，您必須退還誤收的低收入家庭福利優惠金額，外加利息和罰款.您可能也要\n為未來的申請申報8862表.此外，如果國稅局發現您的錯誤申請是蓄意或欺詐的，我們可能會禁止您申請低\n收入家庭福利優惠兩年至十年.\n"
] |
p4194kr.pdf
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1214 Publ 4194 (KR) (PDF)
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https://www.irs.gov/pub/irs-pdf/p4194kr.pdf
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[
"근\n로소득 세액공제는 종업원으로 일을 하거나 자영업을 \n하시는 분들을 위한 것입니다. 이 공제 자격을 갖추기 \n위해서는 귀하의 소득이 낮거나 중간 정도이여야 합니다. \n만약 자격이 된다면 세금 보고를 할 필요가 없고 세금을 \n내지 않더라도 연방 세금 보고를 하셔야 합니다. EITC로 \n인해서 귀하께서는 연방 세금을 적게 납부 또는 납부하지 \n않으실 수 있으며 세금을 환불받으실 수도 있습니다. EITC \n금액은 다음을 기반으로 변경됩니다:\n•\t 미혼 또는 기혼일 경우\n•\t 자녀가 없거나 1명 혹은 그 이상의 자녀와 함께 생활 \n할 경우\nEITC 에 대한 자격이 있는 사람들은 일곱 가지 \n공통점:\n1.\t근로 소득이 있다\n2.\t사회 보장 번호 (SSN)가 있다\n3.\t부부 별도 세금 보고를 하지 않는다\n4.\t일반적으로 비거주 외국인이 아니다\n5.\t다른 사람의 유자격 자녀가 아니다\n6.\t양식 2555 또는 2555-EZ를 신고하지 않는다\n7.\t투자 소득이 적다\nEITC 신청 시 가장 빈번한 오류 네 가지:\n1.\t유자격 자녀가 되기 위한 심사 기준에 부합되지 않는 \n자녀를 청구: 연령, 관개, 그리고 거주지\n2.\t기혼인 경우에 미혼 또는 세대주로 세금을 신고\n3.\t소득이나 비용을 과소 과대 보고\n4.\t사회 보장 번호 (SSN)와 이름의 성이 불일치\nPublication 4194 (KR) (Rev. 12-2014) Catalog Number 59146R Department of the Treasury Internal Revenue Service www.irs.gov\n삶을다소 편하게 해줍니다\n세금에 대한 도움이 필요하거나 세금 보고 준비를 \n하십니까? 다음의 세류를 구비하여 주십시오:\n•\t 귀하의 유효한 운전 면허증 또는 다른 사진이 있는 \n신분증 , 부부 공동 세금 신고인 경우에는 배우자의 \n것도 구비 필요\n•\t 사회 보장 카드 또는 세금 보고서에 기록되어 있는 \n모든 사람들의 사회보장 번호 (SSN) 증명서\n•\t 세금 보고서에 기록되어 있는 모든 사람들의 생년월일\n•\t 모든 소득 보고서: W-2 양식 및 1099, 사회 복지, \n실업 및 기타 보고서. 예: 연금, 주식, 이자 및 공제된 \n세금을 제시하는 다른 문서. 자영업 또는 본인의 \n사업을 하실 경우, 귀하의 모든 소득에 관한 기록을 \n가지고 오십시오\n•\t 학비, 모기지 이자, 또는 부동산세와 같은 모든 지출 \n기록. 자영업 또는 본인의 사업을 하실 경우, 귀하의 \n모든 지출에 관한 기록을 가지고 오세요\n•\t 작년 연방 및 주 정부 세금 보고서 사본\n•\t 세금 반환액을 직접 입금시킬 수 있는 은행의 \n고유번호 및 계좌번호\n•\t 부양 자녀 양육 정보: 돈을 지급 받은 사람의 이름 및 \n주소와 자녀 부양자의 사회 보장 번호 (SSN) 혹은 \n다른 세금 식별 번호\n•\t 전자 신고 방법으로 부부 공동 세금 보고를 하실 경우 \n두 부부의 서명이 된 양식\n돈을 받거나 또는 자발적으로 귀하의 서류를 도와주는 \n작성자는 세금 보고를 정확하게 하기 위해 많은 질문을 \n해야 합니다.\n귀하의 세금 보고를 위해 누군가에게 돈을 지불하실 것인가요?\n작성자의 세금 식별 번호가 있고 세금 보고에 서명해 줄 수 있는 사람을 선택하세요. 세금 보고 작성자를 어떻게 \n선택할 지에 대해 더 많은 정보는 irs.gov 에서 확인하실 수 있습니다.\n자격이 되는지 확인해 보세요.\nwww.irs.gov/eitc\n또는 귀하의 세금 보고 작성자에게 질문 하십시요\n오류가 있으면 해결될 때까지 환급액 중 EITC 부분이 지연될 수 있습니다. IRS가 귀하의 보고서를 감사하여 EITC 청구가 \n옳지 않음을 발견하면 귀하가 잘못 받은 EITC 금액에 이자와 과태료를 더하여 환불해야 합니다. 또한 나중에 청구할 \n때에는 양식 8862를 제출하는 것이 필요할 수도 있습니다. 부정확한 청구가 의도적이거나 부당행위라고 IRS가 판단할 \n경우 귀하는 2년 또는 10년 동안 EITC 청구를 금지당할 수 있습니다.\n"
] |
p4194sp.pdf
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1014 Publ 4194 (SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/p4194sp.pdf
|
[
"E\nl Crédito Tributario por Ingreso del Trabajo, (o EITC, por sus siglas en \ninglés), es para las personas que trabajan para alguien más, o son \ndueñas o administran un negocio. Para reunir los requisitos del crédito, tiene \nque tener ingresos bajos a moderados. Si usted cumple los requisitos, tiene \nque presentar una declaración de impuestos federales para obtener el EITC \naunque usted no adeude impuestos o no esté requerido a declararlos. Con el \nEITC (a veces llamado EIC), usted podría pagar menos impuestos federales, \nno pagar ningún impuesto o recibir un reembolso. La cantidad del EITC \npuede cambiar según:\n• Si usted es soltero o casado y\n• Si usted no tiene hijos o el número de hijos que viven con usted\nTodas las personas que cumplen los requisitos para el crédito EITC \ntienen siete cosas en común:\n1.\t Tienen ingresos del trabajo\n2.\t Tienen un número de Seguro Social válido\n3.\t No presentan la declaración como casados que presentan por separado\n4.\t Por lo general, no son extranjeros no residentes\n5.\t No son el hijo calificado de otra persona\n6.\t No presentan el Formulario 2555 o el Formulario 2555-EZ\n7.\t Tienen ingresos de inversiones limitados\nLos cuatro errores más frecuentes que se cometen cuando se reclama \nel crédito EITC:\n1.\t Reclamar un hijo que no cumple los requisitos de edad parentesco, y \nresidencia\n2.\t Presentar la declaración como soltero o cabeza de familia cuando está \ncasado\n3.\t Declarar más o menos ingresos o gastos\n4.\t Números de Seguro Social que no concuerdan con los apellidos\nPublication 4194 (SP) (Rev. 10-2014) Catalog Number 36576N Department of the Treasury Internal Revenue Service www.irs.gov\no pregúntele a su Preparador de Impuestos\n¿Va a pedir ayuda con los impuestos o la preparación de una declaración \nde impuestos? Vaya preparado con:\n• Una licencia de conducir válida o una tarjeta de identificación con foto \nde usted y su cónyuge si presentan una declaración conjunta\n• Las tarjetas de Seguro Social (SSN) o una carta de verificación del \nnúmero de Seguro Social para todas las personas enumeradas en la \ndeclaración de impuestos\n• Las fechas de nacimiento para todas las personas enumeradas en la \ndeclaración de impuestos\n• Todos los informes de ingresos: los Formularios W-2 y 1099, informes \ndel Seguro Social, de desempleo y otros informes tales como \npensiones, acciones, intereses y cualquier otro documento en el que \nse muestre una retención de impuestos. Si es trabajador por cuenta \npropia, dueño o administra un negocio, traiga registros de todos sus \ningresos\n• Todos los registros de sus gastos, tales como costos de matrícula, \nintereses hipotecarios o impuestos sobre bienes raíces. Si es trabajador \npor cuenta propia, dueño o administra un negocio, traiga registros de \ntodos sus gastos\n• Una copia de la declaración del impuesto federal y del impuesto estatal \ndel año anterior, si las tiene\n• Su número de cuenta y número de ruta del banco para depósito directo \nde cualquier reembolso\n• La información sobre el cuidado de menores dependientes: nombre y \ndirección a quien usted le pagó o el número de Seguro Social u otro \nnúmero de identificación de impuestos de la persona que prestó los \nservicios de cuidado\n• Ambos cónyuges necesitan estar presentes y firmar los formularios \npara presentar electrónicamente una declaración conjunta.\nSu preparador, ya sea un voluntario o uno remunerado, necesita hacer \nmuchas preguntas para presentar correctamente su declaración.\n¿Le paga usted a alguien para hacer sus impuestos?\nAsegúrese de utilizar los servicios de un preparador que tenga un Número de Identificación de Preparador de Impuestos (PTIN, por sus siglas en inglés) y que \nfirme sus declaraciones de impuestos. Para más información sobre cómo escoger a un preparador de impuestos, vea irs.gov.\nVea si usted cumple los requisitos.\nwww.irs.gov/eitc\nLa vida es mejor con el\nLos errores pueden retrasar la parte del EITC de su reembolso, hasta que estos se corrijan. Si el IRS audita su declaración y considera que la reclamación del crédito EITC \nes incorrecta, usted tiene que devolver la cantidad del EITC que recibió por error más multas e intereses. También puede tener que presentar el Formulario 8862(SP) para \nfuturas reclamaciones. Y si el IRS considera que su reclamación incorrecta fue intencional o fraudulenta, se le puede prohibir reclamar el EITC de 2 a 10 años.\n"
] |
p4194ru.pdf
|
1214 Publ 4194 (RU) (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4194ru.pdf
|
[
"Н\nалоговый зачет за заработанный доход (EITC) – это налоговая \nльгота для лиц, которые работают на кого-либо, владеют или \nуправляют бизнесом, и имеют доход от низкого до среднего. Чтобы \nполучить EITC, налогоплательщики, отвечающие требованиям, обязаны \nподать налоговую декларацию даже в том случае, когда они не должны \nплатить налоги и не обязаны подавать налоговую декларацию. Получая \nEITC, Вы сможете платить меньше федеральных налогов, либо не \nплатить налога вообще, либо получить денежный возврат. Размер EITC \nзависит от следующего:\n•\t\nВы одиноки или состоите в браке\n•\t\nУ Вас нет детей, или есть ребенок (дети), проживающие с Вами.\nУ всех лиц, отвечающих требованиям для получения EITC, \nесть семь общих признаков:\n1.\t Имеете заработанный доход\n2.\t Имеете действительный номер социального обеспечения\n3.\t Не подаете раздельные налоговые декларации, состоя при этом в \nбраке\n4.\t Как правило, не являетесь иностранцем без права постоянного \nпроживания в стране\n5.\t Не являетесь ребенком на иждивении какого-либо иного лица\n6.\t Не подаете декларацию, используя формы 2555 или 2555-EZ\n7.\t Имеете ограниченный доход от инвестиций\nЧетыре наиболее распространенные ошибки при подаче \nзапроса на EITC:\n1.\t Вы заявляете ребенка, который не удовлетворяет \nквалификационным условиям EITC по возрасту, отношению к \nналогоплательщику и месту проживания.\n2.\t Вы подаете декларацию как не состоящиe в браке или как глава \nсемьи, состоя при этом в браке\n3.\t Вы указываете в декларации заниженные или завышенные доходы \nили расходы\n4.\t Номера социального обеспечения и фамилии не совпадают\nPublication 4194 (RU) (Rev. 12-2014) Catalog Number 59144V Department of the Treasury Internal Revenue Service www.irs.gov\nЖизнь немного облегчается за счет\nЕсли Вы обращаетесь за помощью в подготовке налоговой \nдекларации, вы должны иметь при себе:\n•\t\nДействительные водительские права или другое удостоверение \nличности с фотографией\n•\t\nКарточки социального обеспечения для вас и вашей(го) \nсупруги(а), если вы подаете декларацию совместно, или письмо, \nподтверждающее номер социального обеспечения (SSN) для всех \nлиц, указанных в налоговой декларации\n•\t\nДаты рождения для всех лиц, перечисленных в налоговой \nдекларации\n•\t\nВсе документы о доходах: формы W-2 и 1099, о государственном \nсоциальном пособии, пособии по безработице, пенсии, акциях, \nпроцентах, а также любые документы, показывающие удержанные \nналоги. Если Вы работаете на себя или у вас свой бизнес, \nпредставьте учетные документы о всех своих доходах.\n•\t\nВсе документы по расходам, таким как: плата за обучение, \nпроценты по ипотечному кредиту или налоги на недвижимость. \nЕсли вы работаете на себя, или у вас свой бизнес, представьте \nучетные документы о всех своих расходах.\n•\t\nКопии федеральных и штатных налоговых деклараций за \nпрошлый год, если они у вас есть\n•\t\nКод банка (номер отделения банка – уникальное 9-значное число, \nкоторое cтоит в нижней части чека перед номером счета) и \nномера счетов, чтобы перечислить причитающийся Вам возврат \nпереплаченных налогов\n•\t\nИнформацию по уходу за ребенком-иждивенцем: имя и адрес того, \nкому Вы платили, а также либо номер социального обеспечения \n(SSN) этого лица, либо иной налоговый идентификационный \nномер\n•\t\nОба супруга должны подписать формы для электронной подачи \nвашей совместной налоговой декларации\nПлатный или бесплатный специалист, подготовивший Вашу налоговую \nдекларацию, должен задать много вопросов, чтобы внести в нее \nправильную информацию.\nВы платите за приготовление Вашей налоговой декларации?\nУбедитесь в том, что выбранный Вами специалист укажет свой идентификационный номер (PTIN) и подпишет Вашу декларацию. Посетите \nвебсайт irs.gov, чтобы получить более подробную информацию для правильного выбора специалиста по подготовке налоговой декларации.\nИли спросите своего налогового специалиста\nПроверьте, отвечаете ли Вы требованиям.\nwww.irs.gov/eitc\nОшибки могут задержать часть причитающегося вам возврата в части, касающейся налогового зачета за заработанный доход, до тех пор, пока они \nне будут исправлены. Если Налоговое управление США проведет аудит вашей налоговой декларации и установит, что заявленная в ней сумма EITC \nошибочна, вам придется вернуть полученную вами ошибочную сумму EITC с процентами и штрафами. Вам также придется в будущем представлять \nФорму 8862 в отношении заявок на EITC. Кроме того, если Налоговое управление США сочтет, что ошибка была допущена сознательно или \nзлонамеренно, мы можем запретить вам подавать заявки на получение EITC на срок 2-10 лет.\n"
] |
p4194vn.pdf
|
1214 Publ 4194 (VN) (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4194vn.pdf
|
[
"T\nín Dụng Thuế Thu Nhập Lao Động là dành cho những người \nlàm việc cho người nào khác hoặc sở hữu hay điều hành một \ndoanh nghiệp. Để có đủ điều kiện, quí vị phải có lợi tức thấp \nhoặc trung bình. Nếu hội đủ điều kiện, quý vị phải nộp tờ khai \nthuế liên bang để được hưởng Tín Dụng Thuế Thu Nhập Lao \nĐộng dù quý vị không nợ thuế và không bị yêu cầu khai thuế. \nVới Tín Dụng Thuế Thu Nhập Lao Động, quý vị có thể trả thuế \nliên bang ít hơn, hoặc không phải trả thuế, hoặc nhận được tiền \nlại. Số tiền Tín Dụng Thuế Thu Nhập Lao Động (EITC) thay đổi \ncăn cứ vào:\n•\t nếu quý vị độc thân hay đã thành hôn, và\n•\t nếu quý vị không có con, hoặc có nhiều con sống chung với \nquý vị.\nTất cả những người hội đủ điều kiện hưởng EITC có bảy điểm \nchung:\n1.\t Có thu nhập lao động\n2.\t Có số An sinh Xã hội hợp lệ\n3.\t Không khai thuế riêng biệt với hồ sơ kết hôn\n4.\t Nói chung không phải là ngoại kiều tạm trú\n5.\t Không phải là con có đủ điều kiện của người khác\n6.\t Không nộp tờ khai thuế Mẫu 2555 hoặc Mẫu 2555-EZ\n7.\t Có lợi tức đầu tư giới hạn\nBốn lỗi lầm phổ biến nhất khi nộp EITC:\n1.\t Khai một đứa con mà không đáp ứng các điều kiện về tuổi \ntác, quan hệ và cư trú\n2.\t Khai thuế như người độc thân hoặc như chủ hộ gia đình nếu \nđã thành hôn\n3.\t Báo cáo dưới hoặc quá mức thu nhập hoặc chi phí\n4.\t Số An sinh Xã hội và họ là không phù hợp\nPublication 4194 (VN) (Rev. 12-2014) Catalog Number 59145G Department of the Treasury Internal Revenue Service www.irs.gov\nCuộc sống dễ dàng hơn một chút với\nMuốn được hỗ trợ về thuế vụ hoặc chuẩn bi khai thuế? Hãy \nchuẩn bị các tài liệu sau đây:\n•\t Bằng lái xe hợp lệ hoặc thẻ căn cước khác có dán hình của \nquý vị và người hôn phối nếu khai chung\n•\t Thẻ An sinh Xã hội (SSN) hoặc một lá thư xác minh số An \nsinh Xã hội của mọi người có tên trong tờ khai thuế\n•\t Ngày sinh của mọi người có tên trong tờ khai thuế\n•\t Tất cả các chứng từ lợi tức như: Các Mẫu W-2 và 1099, \nAn sinh Xã hội, thất nghiệp và các chứng từ khác như hưu \nbổng, chứng khoán, tiền lãi và mọi văn kiện chứng minh \nthuế khấu lưu. Nếu tự làm chủ, sở hữu hoặc điều hành một \ndoanh nghiệp, hãy đem theo mọi sổ sách lợi tức\n•\t Tất cả các sổ sách chi tiêu, như học phí, lãi vay nhà cửa, \nhoặc thuế bất động sản. Nếu tự làm chủ, sở hữu hoặc điều \nhành một doanh nghiệp, hãy đem theo tất cả các sổ sách chi \ntiêu.\n•\t Một bản sao tờ khai thuế liên bang và tiểu bang năm trước \nnếu có\n•\t Số hiệu ngân hàng (Bank routing number) và số hiệu tài \nkhoản để ký thác trực tiếp tiền bồi hoàn\n•\t Thông tin về việc chăm sóc con em phụ thuộc: tên và địa \nchỉ người nhận tiền và số An sinh Xã hội hoặc một số nhận \ndạng thuế khác\n•\t Cả vợ lẫn chồng phải ký những mẫu để gởi trực tuyến tờ \nkhai chung thuế\nNgười khai thuế của quý vị, có trả tiền hoặc tình nguyện, cần hỏi \nnhiều câu hỏi để khai đúng thuế.\nQuý vị có trả tiền cho người khai thuế cho quý vị không?\nNhớ chọn một người có thẻ Khai Thuế Chuyên nghiệp (PTIN) và nhớ ký tờ khai thuế. Muốn biết thêm thông tin làm sao để chọn \nmột người khai thuế, xin xem trang web irs.gov.\nHoặc Hỏi Người Khai Thuế của Quý vị \n \nXem thử quý vị có đủ điều kiện không.\nwww.irs.gov/eitc\nNhững sai lầm có thể đình trệ phần EITC của tiền hoàn lại của quý vị cho đến khi điều chỉnh xong điều này. Nếu IRS kiểm tra đơn khai thuế của quý vị và thấy \nrằng phần EITC là không đúng, quý vị phải trả lại số tiền EITC quý vị đã nhận vì sai lầm cùng với tiền lời và tiền phạt. Quý vị cũng có thể khai Mẫu đơn 8862 \ncho đơn xin bồi hoàn trong tương lai. Và, nếu IRS thấy rằng việc xin bồi hoàn không đúng là cố ý hoặc gian lận, chúng tôi có thể cấm không cho quý vị xin \nEITC trong thời gian 2 hoặc 10 năm.\n"
] |
p5197.pdf
|
1214 Publ 5197 (PDF)
|
https://www.irs.gov/pub/irs-pdf/p5197.pdf
|
[
"Students and parents\nWhy Form 1098-T is important to you?\nIt helps you identify eligible college expenses for \nvaluable education credits up to $2,500.\nSo, do not discard this form.\nWhat are the education tax credits?\n1.\t The AOTC, American Opportunity Tax Credit, can help pay for the first four years of college if you \nattend at least half-time. The credit provides up to $2,500 per student per year, or up to $10,000 \nover four years of education.\n2.\t The LLC, Lifetime Learning Tax Credit, can help pay for any level of college or for education \ncourses that advance or improve your job skills. The credit provides up to $2,000 per return per \nyear. \nHow do I claim one of these credits?\nThese tax credits are available to taxpayers who paid education expenses for themself, their spouse \nor for their dependent. To claim a credit, you must file a Form 1040 or Form 1040-A federal tax return \nand complete Form 8863. Form 1098-T contains helpful information needed to complete Form 8863.\nCan I still claim education tax credits if I got a Pell Grant or other scholarship?\nMost likely you can. Some students may be able to increase their credit by including some of the \ngrant money in the student’s income. Students with tuition expenses and Pell Grants or other \nscholarships should use the resources below to maximize their benefits.\nUse the Interactive Tax Assistant tool on IRS.gov to see if you can claim the credit.\nWhere can I learn more about these valuable tax credits for higher education? \nEverything you need is online at Education Credits.\nPublication 5197 (12-2014) Catalog Number 67467Z Department of the Treasury Internal Revenue Service www.irs.gov\n"
] |
p4303.pdf
|
0115 Publ 4303 (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4303.pdf
|
[
"Tax Exempt and Government Entities\nEXEMPT ORGANIZATIONS\nA \nDonor’s\nGuide to\n \nVehicle \nDonation,\nBEFORE YOU GIVE \nYOUR VEHICLE TO \nA CHARITABLE \nORGANIZATION: \nn CHECK OUT THE CHARITY ,\nn SEE IF YOU’LL GET A TAX BENEFIT ,\nn CHECK THE VALUE OF YOUR VEHICLE ,\nn SEE WHAT YOUR RESPONSIBILITIES\n ARE AS A DONOR TO A CHARITY\n",
"1\nA \nDonor’s\nGuide to\n \n \nVehicle \n \n \nDonation.\n \nI \n \n \n \n \n \n \n \n \n \n \n \n \nf a tax deduction is an important consideration for you when \ndonating a vehicle to a charity, you should check out the charity, \ncheck the value of your vehicle, and see what your responsibilities \nare as a donor. \nThrough this Publication 4303, the Internal Revenue Service (IRS) \nand state charity officials provide general guidelines for individuals \nwho donate their vehicles. \nA companion brochure, Publication 4302, A Charity’s Guide to Vehicle Donations, \nprovides guidelines for charities that receive donated vehicles. \nNote: This publication is not intended as a guide for corporate donors.\n",
"2\nSelecting a Charity,\nIf you are eligible to deduct charitable contributions for federal income tax purposes (see \nQualifying for a Tax Deduction, below) and you want to claim a deduction for donating your \nvehicle to charity, then you should make certain that the charity is a qualified organization. \nOtherwise, your donation will not be tax deductible. The most common types of qualified \norganizations are section 501(c)(3) organizations, such as charitable, educational, or religious \norganizations. This publication refers to section 501(c)(3) organizations generally as “charities.” \nTo verify that an organization is a charity qualified to receive tax-deductible contributions, \nuse the “EO Select Check” tool on the IRS website, http://www.irs.gov/Charities-&-Non-Profits/\nExempt-Organizations-Select-Check. You may also verify an organization’s status by calling \nthe IRS Customer Account Services division for Tax Exempt and Government Entities at \n(877) 829-5500 (toll-free). Be sure to have the charity’s correct name. It is also helpful to know \nthe charity’s address. \nNot all qualified organizations are listed in EO Select Check (Pub.78 data). For example, churches, \nsynagogues, temples, and mosques are not required to apply to the IRS for recognition of exemp-\ntion in order to be qualified organizations and are frequently not listed. If you have questions, call \nCustomer Account Services at the above number. \nIf you want to learn more about a charity before donating your vehicle, use the resources listed \nunder Assistance Through the Charity, Through State Officials, and Through the IRS on page 8.\nQualifying for a Tax Deduction,\nYou can deduct contributions to charity only if you itemize deductions on your Schedule A \nof Form 1040. \nYou must take into account certain limitations on charitable contribution deductions. For \nexample, your deduction cannot exceed 50% of your adjusted gross income. Other limitations \nmay apply. Publication 526, Charitable Contributions, provides detailed information on claiming \ndeductions and the deduction limits. It also describes the types of organizations that are qualified \nto receive tax-deductible contributions. Publication 526 is available online at www.irs.gov or by \ncalling (800) 829-3676 (toll-free). \n",
"3\nDetermining the Amount You Can Deduct ,\nThe following rules on deductibility apply to donations of qualified vehicles. A qualified vehicle \nis any motor vehicle manufactured primarily for use on public streets, roads, and highways; a \nboat; or an airplane. However, a vehicle held by you primarily for sale to customers, such as \ninventory of a vehicle dealer, is not a qualified vehicle. If you donated a non-qualified vehicle, see \nPublication 526 for the rules and limits that apply to property donations. \nThe amount you may deduct for a vehicle contribution depends upon what the charity does with \nthe vehicle as reported in the written acknowledgment you receive from the charity. Charities \ntypically sell the vehicles that are donated to them. If the charity sells the vehicle, generally your \ndeduction is limited to the gross proceeds from the sale. However, there are certain exceptions, \ndescribed below. \nWritten Acknowledgment for Vehicle Contribution Deduction of More Than $500,\nWhat the written acknowledgment must contain depends upon what the charity does with the \nvehicle. However, all acknowledgments must contain the following information: \n■ your name and taxpayer identification number, \n■ the vehicle identification number, \n■ the date of the contribution, and one of the following: \n●\ta statement that no goods or services were provided by the charity in return for the donation, \nif that was the case, \n●\ta description and good faith estimate of the value of goods or services, if any, that the charity \nprovided in return for the donation, or, \n●\ta statement that goods or services provided by the charity consisted entirely of \nintangible religious benefits, if that was the case. \nNote: If the acknowledgment does not contain all required information, the deduction may not \nexceed $500. \nGross Proceeds Limit Applies — Generally, if the charity sells your vehicle, your deduction \nis limited to the gross proceeds the charity receives from its sale. In addition to the information \nindicated above, the contemporaneous written acknowledgment must contain: \n■ a statement certifying that the vehicle was sold in an arm’s length transaction between \nunrelated parties, \n■ the date the vehicle was sold, \n■ the gross proceeds received from the sale, and ,\n■ a statement that your deduction may not exceed the gross proceeds from the sale. \n",
"4\nExceptions to Gross Proceeds Limit — Generally, if one of the following applies, you may be \neligible to deduct your vehicle’s fair market value on the date you donated it. \n■ The acknowledgment contains a statement certifying that the charity intends to make a signif\nicant intervening use of the vehicle, a detailed description of the intended use, the duration of \nthat use, and a certification that the vehicle will not be sold before completion of the use. \n■ The acknowledgment contains a statement certifying that the charity intends to make a material \nimprovement to the vehicle, a detailed description of the intended material improvement and a \ncertification that the vehicle will not be sold before completion of the improvement. \n■ The acknowledgment contains a statement certifying that the charity intends to give or sell \nthe vehicle to a needy individual at a price significantly below fair market value and that the \ngift or sale is in direct furtherance of the charity’s charitable purpose of relieving the poor and \ndistressed or the underprivileged who are in need of a means of transportation. This exception \nwill not apply if the charity merely applies the proceeds from the sale of the vehicle to a needy \nindividual for any charitable purpose. \n■ A special rule applies if the acknowledgment indicates that the donated vehicle sold for $500 \nor less. In this case, you may claim a deduction for the lesser of the vehicle’s fair market value \non the date of the contribution, or $500, provided you get a written acknowledgment from the \ncharity that complies with the requirements described under Written Acknowledgment for a \nVehicle Contribution Deduction of $500 or Less, page 5. \nEXAMPLE 1: On April 1, you donated your car to the local food bank. When you donated \nthe car, you had determined that the fair market value was $4,300. On November 10, the charity \nsold your car (to someone other than a needy individual), without any significant intervening \nuse or material improvement, and received gross proceeds of $3,700. Your deduction may \nnot exceed $3,700. \nEXAMPLE 2: The charity certifies in an acknowledgment that it will make significant intervening \nuse of the vehicle by using it daily for at least a year to deliver food to needy individuals. Your \ndeduction may not exceed the fair market value of your car, $4,300. \nEXAMPLE 3: The facts are the same as in Example 1 except the charity only received gross \nproceeds of $400 from the sale. Your deduction may not exceed $500. \nTime and Manner of Providing Acknowledgment — You must obtain the written \nacknowledgment from the charity within 30 days from the date of the vehicle’s sale, \nor if an exception applies, within 30 days of the date of the donation. \nThe charity may use Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, as \nacknowledgment or provide its own statement containing the information described above. Be \n",
"5\nsure to attach the acknowledgment and Form 8283, Noncash Charitable Contributions (see \nbelow), to your return. \nWritten Acknowledgment for a Vehicle Contribution Deduction of $500 or Less,\nIf you are claiming at least $250 but not more than $500 as the value of your vehicle, the acknowl\nedgment must include the name of the charity, a description (but not value) of your vehicle, and \none of the following: \n■ a statement that no goods or services were provided by the charity in return for the donation, if \nthat was the case, \n■ a description and good faith estimate of the value of goods or services, if any, that the charity \nprovided in return for the donation, or ,\n■ a statement that goods or services provided by the charity consisted entirely of \nintangible religious benefits, if that was the case. \nTime and Manner of Providing Acknowledgment — You must obtain the written acknowledgment \non or before the earlier of the date you file your return for the year you donated the vehicle, or the \ndue date, including extensions, for filing the return. A charity can provide you with a paper copy \nof the acknowledgment, or it can provide the acknowledgment electronically, such as via an email \naddressed to you. Do not attach the acknowledgment to your income tax return; instead, retain it \nwith your records to substantiate your donation. \nDetermining the Fair Market Value of Your Vehicle,\nIf an exception to the gross proceeds limit applies to your deduction or if you are claiming a \ndeduction of $500 or less, you will need to determine your vehicle’s fair market value as of the \ndate of the contribution. Generally, fair market value is the price a willing buyer would pay and a \nwilling seller would accept for the vehicle, when neither party is compelled to buy or sell, and \nboth parties have reasonable knowledge of the relevant facts. \nIf you use a vehicle pricing guide to determine fair market value, be sure that the sales price \nlisted is for a vehicle that is the same make, model, and year, sold in the same condition, and \nwith the same or substantially similar options or accessories, as your vehicle. Moreover, the \nfair market value of a vehicle cannot exceed the price listed for a private-party sale. \nEXAMPLE: You donate your car to a local charity that provides you with an acknowledgment \ncertifying that it intends to make a significant intervening use of the car. Your credit union \nrepresentative told you that the price listed for a private-party sale in a vehicle pricing guide \ncould be as high as $1,600. However, your car needs extensive repairs, and after some checking, \nyou find that you could only sell your car for $750. $750 is the fair market value of the car. \nFor more information on determining the value of your vehicle, see Publication 561, Determining the \nValue of Donated Property.\n",
"6\nRecordkeeping and Filing Requirements,\nYou must attach to your return the written acknowledgment received from the charity if you \nare deducting more than $500. Depending on the amount you are claiming as a charitable \ncontribution deduction, you may need to get and keep certain records and file an additional \nform or statement to substantiate your charitable contributions. See the chart Recordkeeping \nand Filing Requirements on page 7. \nForm 8283, Noncash Charitable Contributions,\nIf the deduction you are claiming for a donated vehicle is greater than $500, but not more \nthan $5,000, you must complete Section A of Form 8283 and attach it to your Form 1040. \nIf the deduction you are claiming is greater than $5,000, you must complete Section B of Form \n8283, which must include the signature of an authorized official of the charity, and attach it to your \nreturn. In addition, if the deduction is over $5,000 and not limited to the gross proceeds from the \nsale of your vehicle, you must get a written appraisal of your vehicle (see Written Appraisal, below). \nWritten Appraisal,\nYour written appraisal must be from a qualified appraiser. See Publication 561, Determining \nthe Value of Donated Property. The appraisal must be made no more than 60 days before you \ndonate the vehicle. You must receive the appraisal before the due date (including extensions) of \nthe return on which you first claim a deduction for the vehicle. For a deduction first claimed on \nan amended return, the appraisal must be received before the date the amended return is filed. \nWhen you file your income tax return (Form 1040 or Form 1040X), you will need to complete \nSection B of Form 8283, and attach it to your return. \nIf Section B is required and the charity sells or otherwise disposes of a vehicle within three years \nafter the date of receipt, the charity must file Form 8282, Donee Information Return, with the IRS. \nOn Form 8282, the charity reports information identifying the donor and itself, and the amount it \nreceived upon sale or other disposition of the vehicle. The charity must provide you with a copy \nof the form. \nThe chart on page 7 lists recordkeeping and filing requirements, based on the amount you claim \nas a deduction.\nDefinitions,\nBelow are definitions of material improvement and significant intervening use as they apply to \nvehicle donations. \n■ Material improvement includes a major repair or improvement that results in a significant \nincrease in the vehicle’s value. Cleaning, minor repairs, and routine maintenance are not \nmaterial improvements. In addition, a material improvement to the vehicle will not qualify if \nthe donor funded the improvement by giving the charity an additional payment. \n■ Significant intervening use means that a charity must actually use the vehicle to substantially \nfurther its regularly conducted activities, and the use must be considerable. There is no signifi\ncant intervening use if the charity’s use is incidental or not intended at the time of the donation.\n",
"7\n\t\t\nDeductions \nof $250 or \nMore, But \nNot More \nThan $500,\nDeductions \nGreater Than \n$500, But Not \nMore Than \n$5,000 , \n \nDeductions \nGreater\nThan \n \n$5,000 ,\n \nRecordkeeping Requirements,\nn name/address of charity, \nn date of donation, \nn place where you \ndonated vehicle, \nn description of vehicle, \nn contemporaneous written \nacknowledgment from charity*, \n \nFiling Requirements,\nn written acknowledgment*,\nn Form 8283, Section A,\nn Form 8283, Section B,\nn written appraisal — if deduction \nis not limited to gross proceeds,\nX \nX \nX \nX \nX \nX \nX \nX\n \nX \nX \nX \nX\nX \nX \nX \nX\n \n \nX \nX \nX\n \n \n \n \nX \nX\n \n \nX\n \n \n \nX\n \nX\n \n \n \n* For information on what the acknowledgment must contain, see Determining the Amount You Can Deduct, page 3.\nState Law Rules on Liability \n— \nVehicle Title,\nGenerally, state charity officials recommend that the donor take responsibility for transfer of title \nto ensure termination of liability for the vehicle. In most states, this involves filing a form with the \nstate motor vehicle department which states that the vehicle has been donated. Before donating \nthe vehicle, you should remove the license plates, unless state law requires otherwise. This may \nhelp you avoid any liability problems after the vehicle is transferred.\n",
"8\nAssistance Through the Charity, Through \nState Officials, and Through the IRS,\nCharity Assistance,\nA charity must make available for public inspection its application for tax exemption, its \ndetermination letter, and its most recent annual information returns (Forms 990). A charity \nalso must provide copies of these documents upon request (unless it makes the documents \nwidely available). A charity may not charge you for inspecting the documents, but it may \ncharge a reasonable fee for copying and mailing the documents. \nNote: Certain charities, including churches, synagogues, and mosques, are not required to file \nexemption applications and annual information returns. \nState Charity Official Assistance,\nMany states require charities that solicit contributions to register and file certain documents with \na state charity regulator, such as the state attorney general or the secretary of state. Most charities \nmust file in their state of incorporation and in other states where they have activities. Many of the \nstate charity officials provide useful information about charities and fundraisers on Web sites and \nin brochures and publications. \nA listing of state charity offices is available through the National Association of State Charity \nOfficials at www.nasconet.org. A listing of state attorneys general is available through the \nNational Association of Attorneys General at www.naag.org. \nContact your state charity official if you have a concern or complaint that a charity or fundraiser \nis not complying with state laws. \nIRS Assistance,\nThe IRS can answer your tax questions and can provide tax forms, publications, and other \nreading materials for further assistance. IRS materials are accessible through the Internet at \nwww.irs.gov, through telephone ordering at (800) 829-3676, and at IRS walk-in offices in many \nareas across the country. The IRS also must make available the charity’s application for tax \nexemption, determination letter, and Form 990. \nIf you have a concern or complaint about a charity, write to: \nIRS Examination Division ,\nAttn: T:EO:E, MC 4910 DAL ,\n1100 Commerce Street ,\nDallas, TX 75242,\n",
"Specialized Assistance on Tax-Exempt Organizations \nThrough the Exempt Organization (EO) Division of the IRS, \nwww.irs.gov/Charities-&-Non-Profits,\nCustomer Account Services, \n(877) 829-5500 (toll-free), \nInternal Revenue Service,\nTE/GE, \nP.O. Box 2508,\nCincinnati, OH 45201,\nIRS tax forms and publications useful to donors are available on the EO Web site above and \nthrough the IRS services noted under General IRS Assistance below. \nForm 1040, U.S. Individual Income Tax Return ,\nForm 1040, Schedule A, Itemized Deductions ,\nForm 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes ,\nForm 8282, Donee Information Return ,\nForm 8283, Noncash Charitable Contributions ,\nPublication 526, Charitable Contributions ,\nPublication 557, Tax-Exempt Status for Your Organization ,\nPublication 561, Determining the Value of Donated Property,\nPublication 1771, Charitable Contributions – Substantiation and Disclosure Requirements ,\nPublication 4302, A Charity’s Guide to Vehicle Donations,\nGeneral IRS Assistance on the latest tax laws, \nforms and publications, and filing information:\nwww.irs.gov,\nFederal tax questions,\t\n(800) 829-1040,\nSmall business federal tax questions,\t\n(800) 829-4933,\nIRS tax forms and publications,\t\n(800) 829-3676,\nPublication 4303 (Rev. \n1-2015) Catalog Number 38162P Department of the Treasury Internal Revenue Service www.irs.gov\n"
] |
p4302.pdf
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0115 Publ 4302 (PDF)
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https://www.irs.gov/pub/irs-pdf/p4302.pdf
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[
"A \nCharity’s\nGuide to\n \nVehicle \nDonation,\nT Y P E S O F V E H I C L E D O N A T I O N \nP R O G R A M S A N D T H E I R I M P A C T \nO N TA X - E X E M P T S TA T U S , \nTA X A B L E I N C O M E , A N D \nD E D U C T I B L E C O N T R I B U T I O N S\nTax Exempt and Government Entities\nEXEMPT ORGANIZATIONS\n",
"1\n \nA \nCharity’s\nGuide to\n \n \nVehicle \n \nDonation,\n \nC\nharities described in section 501(c)(3) of the Internal Revenue\n Code need funds to operate their charitable, educational, \nor other tax-exempt programs. These charities may choose \nfrom a number of fundraising activities for financial support. A popular \nfundraising program is the sale of donated vehicles. \nThrough this Publication 4302, the Internal Revenue Service (IRS) and \nstate charity officials provide general guidelines for charities operating \nvehicle donation programs. \nThe information in this publication applies to the most common types \nof section 501(c)(3) organizations, commonly referred to as “charities.” \nA companion brochure, Publication 4303, A Donor’s Guide to Vehicle Donations, \nprovides guidelines for individuals who donate vehicles.\n",
"2\nVehicle Donation Programs \nand Tax-Exempt Status,\nA charity must be organized and operated exclusively for one or more exempt purposes \ndescribed in section 501(c)(3). If a charity operates a vehicle donation program in a manner that \nconfers improper benefits on private parties, the charity’s exemption may be adversely affected. \nIf the charity loses its exemption, its income is subject to tax, and it must file the appropriate \nfederal income tax return (generally, Form 1120 for corporations or Form 1041 for trusts). \nVehicle donation programs generally fit one of the \nfollowing descriptions:\nCharity Operates Vehicle Donation Program*\nGenerally, there should not be an adverse impact on a \ncharity’s tax-exempt status if it does any of the following \nwith donated vehicles: \n■ sells the donated vehicles and uses the proceeds \nexclusively to fund its charitable programs, \n■ regularly uses the vehicles for a significant period of \ntime to conduct activities that substantially further its \ncharitable programs, \n■ sells the vehicles after it makes a material improvement \nto the vehicles and then uses the proceeds to exclusively \n\nfurther its charitable programs, or,\n■ distributes the vehicles at a price significantly below fair \nmarket value to needy individuals in direct furtherance \nof its charitable purpose of relieving the poor and \ndistressed or the underprivileged who are in need of \na means of transportation. \nCharity Hires Agent to Operate Vehicle Donation Program*,\nIf the charity hires a private, for-profit entity as an agent to operate its vehicle donation program, \nthe charity and the for-profit entity must establish an agency relationship that is valid under the \napplicable state law. Generally, an agency relationship will be established where the parties agree \nthat the for-profit entity will act on the charity’s behalf and that the for-profit entity’s activities \ncovered by the agreement are subject to the charity’s oversight. Accordingly, the charity should \nactively monitor program operations and have the right to review all contracts, establish rules of \nconduct, choose or change program operators, approve of or change all advertising, and examine \nthe program’s books and records. If the charity follows these guidelines, the program should not \njeopardize the charity’s tax-exempt status. \n \n \n* \nA charity must operate exclusively to \nfurther the charity’s exempt purposes. \nA charity must not operate a vehicle \ndonation program in a manner that \nimproperly benefits private parties. \nFor example, a charity should not sell \nvehicles on favorable terms to individ\nuals who are not part of a charitable \nclass, such as board members. Fees \nthe charity pays an agent to operate the \nprogram must not exceed a reasonable \namount. Activities such as these may \nhave adverse tax consequences for \nboth the charity and related parties. \n",
"3\nFor-Profit Entity Receives and Sells Vehicles Using Charity’s Name,\nIn this program, the charity grants a for-profit entity the right to use the charity’s name for the \npurpose of soliciting donations of used vehicles. The charity receives either a flat fee or a \npercentage of the proceeds from the sale of the vehicles to support its charitable programs. \nThe charity has no control over the for-profit entity’s activities. \nUnlike the preceding program, the charity has not established an agency relationship with the \nfor-profit entity that is valid under applicable state law; therefore, this program is not the charity’s \nprogram. Because the for-profit entity is not an agent of the charity, the donors’ contributions \n(transfers) are made to the for-profit entity, not the charity. A charity cannot license its right \nto receive tax-deductible contributions. The for-profit entity and the charity must not mislead \nthe public by stating that contributions may be deductible (for example, by providing a written \nacknowledgment that the “contribution” is deductible). Misleading the public in this regard may \nexpose the for-profit entity and the charity to adverse tax consequences.\nWritten Acknowledgment of Donation,\nDonors contribute vehicles in order to support charity and benefit from the federal income tax \ndeduction. A donor cannot deduct any single charitable contribution valued at $250 or more \nunless the charity provides the donor with a contemporaneous written acknowledgment of the \ncontribution. The information the charity must provide in the written acknowledgment depends \nupon what it does with the vehicle and on the claimed value of the vehicle. \nWritten Acknowledgment for Vehicle Contribution Deduction of More Than $500,\nIf a donor contributes a vehicle and claims the value of the vehicle is more than $500, the charity \nis required to provide a contemporaneous written acknowledgment to the donor, such as Form \n1098-C, Contributions of Motor Vehicles, Boats, and Airplanes. All acknowledgments must include \nthe following information, plus information on what the charity did or intends to do with the vehicle:\nn\tthe donor’s name and taxpayer identification number,\nn\tthe vehicle identification number, \nn\tthe date of the contribution, and one of the following:\n●\ta statement that no goods or services were provided by the charity in return for the \t\n\t\ndonation, if that was the case,\n●\ta description and good faith estimate of the value of goods or services, if any, that the \t\ncharity provided in return for the donation, or ,\n●\ta statement that goods or services provided by the charity consisted entirely of \nintangible religious benefits, if that was the case.\n",
"4\nCharity Sells the Vehicle — If the charity sells the \nvehicle for more than $500, in addition to the information \nrequired for all acknowledgments, the contemporaneous \nwritten acknowledgment must include: \n■ a statement certifying that the vehicle was sold in an \narm’s length transaction between unrelated parties, \n■ the date the vehicle was sold, \n■ the gross proceeds received from the sale, and, \n■ a statement that the donor’s deduction may not exceed \nthe gross proceeds from the sale. \nHowever, if the gross proceeds from the sale are $500 \nor less, the charity should not provide a written acknowl\nedgment based on these rules. Instead see Written \nAcknowledgment for Vehicle Contribution Deduction \nof $500 or Less on page 7.\nCAUTION, \nA donor cannot claim a deduction for \nmore than $500 if the acknowledgment \nprovided by the charity does not con\ntain the donor’s taxpayer identification \nnumber. If a donor fails to provide his \nor her taxpayer identification number \nto the charity, follow the rules under \nWritten Acknowledgment for Vehicle \nContribution Deduction of $500 or \nLess, page 7. \nCharity Intends a Significant Intervening Use of the Vehicle — If the charity intends to make a \nsignificant intervening use (defined below) of the vehicle, in addition to the information required \nfor all acknowledgments, the contemporaneous written acknowledgment must include: \n■ a statement certifying that the charity intends to make a significant intervening use of the \ndonated vehicle, \n■ a detailed statement of the intended use, \n■ a detailed statement of the duration of that use, and, \n■ a certification that the vehicle will not be sold before completion of the use. \nSignificant Intervening Use – To qualify as significant intervening use, the charity must actually \nuse the vehicle to substantially further its regularly conducted activities, and the use must be con\nsiderable. There is no significant intervening use if the charity’s use is incidental or not intended \nat the time of the contribution. In addition, significant intervening use does not include use of the \nvehicle to provide training in general business skills, such as marketing and sales. Whether a use \nqualifies as significant intervening use depends on its nature, extent, frequency, and duration. \nEXAMPLE 1: An individual donates a used van to a charity that delivers meals to needy \nindividuals. The charity only uses the vehicle a few times to deliver meals and then sells \nthe vehicle. Because the charity’s use was infrequent and incidental, it does not qualify as \nsignificant intervening use. \nEXAMPLE 2: The facts are the same as in Example 1, except that the charity uses the van to \ndeliver meals every day for one year. This use qualifies because it is significant and substantially \nfurthers the charity’s regularly conducted activity of delivering meals to needy individuals. \n",
"5\nEXAMPLE 3: The facts are the same as in Example 1, except that the charity drives the van \na total of 10,000 miles over a 1-year period to deliver meals to needy individuals. This use qualifies \nbecause it is significant and substantially furthers the charity’s regularly conducted activity of \ndelivering meals to needy individuals. \nCharity Intends to Make a Material Improvement to the Vehicle — If the charity intends to make a \nmaterial improvement (defined below) to the vehicle, in addition to the information required for all \nacknowledgments, the contemporaneous written acknowledgment must include: \n■ a statement that the charity intends to make a material improvement to the donated vehicle, \n■ a detailed description of the intended material improvement, and, \n■ a certification that the vehicle will not be sold before completion of the improvement. \nMaterial Improvement – A material improvement includes a major repair or improvement that \nresults in a significant increase in the vehicle’s value. Cleaning, minor repairs, and routine \nmaintenance are not material improvements. In addition, a material improvement to the vehicle \nwill not qualify if the improvement was funded by an additional payment from the donor. \nMaterial improvements do not include: \n■ application of paint or other types of finishes (such as rustproofing or wax), \n■ removal of dents and scratches, \n■ cleaning or repair of upholstery, and ,\n■ installation of theft deterrent devices. \nCharity Intends to Give or Sell the Vehicle to a Needy Individual — If a charity, whose purpose \nis relieving the poor and distressed or the underprivileged who are in need of a means of \ntransportation intends to give or sell the vehicle to a needy individual at a price significantly \nbelow fair market value, in addition to the information required for all acknowledgments, the \nacknowledgment must certify: \n■ that the charity intends to give or sell the vehicle to a needy individual at a price significantly \nbelow fair market value, and, \n■ that the gift or sale is in direct furtherance of the charity’s charitable purpose of relieving the \npoor and distressed or the underprivileged who are in need of a means of transportation. \nHowever, if the charity merely applies the proceeds from the sale of the vehicle to a needy indi\nvidual for any charitable purpose, the sale is not in direct furtherance of the charity’s charitable \npurpose. In addition, the sale of a donated vehicle at auction does not qualify as a sale to a needy \nindividual at a price significantly below fair market value; instead the rules above under Charity \nSells the Vehicle, page 4, apply. \n",
"6\nTime and Manner of Providing Acknowledgment to the Donor — The charity must provide the \nwritten acknowledgment to the donor within 30 days from the date of the vehicle’s sale. This \ndoes not mean the charity must sell the vehicle in the year it receives it. For example, if a charity \nreceives a donated vehicle on December 31, Year 1, and sells the vehicle on January 15, Year 2, \nthe acknowledgment is due by February 14, Year 2. If the charity intends to make a significant \nintervening use of or material improvement to the vehicle, or if it intends to sell or give the vehicle \nto a needy individual at a price significantly below fair market value, the acknowledgment is due \nwithin 30 days from the date of the contribution. The charity may use Form 1098-C, Contributions \nof Motor Vehicles, Boats, and Airplanes, as acknowledgment or provide its own statement \ncontaining the information described above. \nTime and Manner of Providing Acknowledgment to the IRS — A charity must report the infor\nmation contained in the contemporaneous written acknowledgment to the IRS on Form 1098-C. \nForm 1098-C is due by February 28 (March 31 if filing electronically) of the year following the year \nin which the charity provides the acknowledgment to the donor. \nPenalties — For a written acknowledgment of a vehicle contribution deduction of more than $500, \na penalty applies if a charity knowingly furnishes the donor with a false or fraudulent acknowledg\nment, or knowingly fails to furnish an acknowledgment with the required information. In the case \nof an acknowledgment related to the sale of a vehicle, the penalty is either the gross proceeds \nfrom the sale or the product of the highest tax rate (currently 35 percent) and the sales price stat\ned on the acknowledgment, whichever amount is greater. In the case of an acknowledgment that \nis not based on gross proceeds, the penalty is either $5,000 or the product of the highest tax rate \n(currently 35 percent) and the claimed value of the vehicle, whichever amount is greater.\nEXAMPLE 1: A charity that delivers food and other needed goods to the rural poor in remote \nlocations receives a donation of a subcompact car that has been driven more than 100,000 miles. \nThe charity needs three large vehicles suitable for delivering heavy loads across rugged terrain. \nThe subcompact is not suitable for the charity’s use. The charity provides an acknowledgment \nto the donor falsely certifying that it intends to make significant intervening use of the car. \nBased on this acknowledgment, the donor claims a deduction of $2,300, the fair market value \nof the car. The charity is subject to a penalty for knowingly furnishing a false or fraudulent \nacknowledgment to the donor. The amount of the penalty is $5,000, because that amount is \ngreater than $805, the product of the claimed value ($2,300) and 35 percent. \nEXAMPLE 2: The charity receives a donation of a qualified vehicle and sells it without any \nsignificant intervening use or material improvement. The gross proceeds from the sale are $300, \nbut the charity provides the donor with an acknowledgment that states that the gross proceeds \nwere $1,000. The charity is subject to a penalty for knowingly furnishing a false or fraudulent \nacknowledgment to the donor. The amount of the penalty is $350, the product of the sales price \nstated in the acknowledgment ($1,000) and 35 percent, because that amount is greater than the \ngross proceeds from the sale of the vehicle ($300). \n",
"7\nWritten Acknowledgment for Vehicle Contribution Deduction of $500 or Less\nIf a donor is claiming a charitable contribution deduction of at least $250 but not more than \n$500 for the vehicle, the acknowledgment must include the name of the charity, a description \n(but not value) of the vehicle, and one of the following: \n■ a statement that no goods or services were provided by the charity in return for the donation, \nif that was the case, \n■ a description and good faith estimate of the value of goods or services, if any, that the charity \nprovided in return for the donation, or ,\n■ a statement that goods or services provided by the charity consisted entirely of intangible \nreligious benefits, if that was the case. \nTime and Manner of Providing Acknowledgment to the Donor — For the written acknowledgment \nto be considered contemporaneous, a donor must receive the acknowledgment by the earlier \nof: the date on which the donor files his or her individual federal income tax return for the year \nof the contribution; or the due date (including extensions) of the return. A charity may use Form \n1098-C as the acknowledgment or provide its own statement that includes the information described \nabove. If the charity uses Form 1098-C, only provide Copy C to the donor and be sure to check \nthe box that states that the donor may not claim a deduction of more than $500. The charity \nshould not file Copy A with the IRS. A charity can provide either a paper copy of the acknowledg\nment to the donor, or an electronic acknowledgment, such as an email addressed to the donor. \nFiling and Disclosure Requirements,\nForm 990 Series (Annual Information Return) \nand the e-Postcard (Annual Electronic Notice),\nMost charities must file an annual information return in the Form 990 series (990, 990-EZ, or \n990-PF, with required schedules), disclosing information about the charity’s revenue, expenses, \nactivities, and financial position. Most small charities that are not required to file Form 990 or \n990-EZ, must file an annual electronic notice known as the e-Postcard or Form 990N. See IRS \nPublication 557, Tax Exempt Status for Your Organization, the instructions to the annual informa\ntion returns and the Charities and Non-Profits page of IRS.gov for further information. \nForm 1098-C,\nThe charity must file Copy A of Form 1098-C with the IRS to report the information contained in \na contemporaneous written acknowledgment for a vehicle contribution with a claimed value of \nmore than $500. Form 1098-C is due by February 28 (March 31 if filing electronically) of the year \nfollowing the year in which the charity provides the acknowledgment to the donor. \n",
"8\nFiling Form 1098-C does not relieve the charity of its obligation to report information about the \ndisposition of a donated vehicle on Form 8282, Donee Information Return. For more information, \nsee Forms 8282 and 8283 below. \nIf the charity uses Form 1098-C as the acknowledgment for a vehicle contribution deduction \nof $500 or less, only provide Copy C to the donor and be sure to check the box that states that \nthe donor may not claim a deduction of more than $500. The charity should not file Copy A \nwith the IRS. \nForms 8282 and 8283,\nA donor must file Form 8283, Noncash Charitable Contributions, to report information about \nnoncash charitable contributions if deductions for all noncash gifts during the year exceed $500. \nIf the contribution deduction is over $5,000, the donor must complete Section B of Form 8283, \nand an authorized official of the charity must complete a portion of the form and sign it. The \ndonor must give the charity a copy of Section B. A charity required to sign Form 8283 for receipt \nof a vehicle must file Form 8282, Donee Information Return, if it sells or otherwise disposes of the \nvehicle within three years after the date it received the vehicle. This form must be filed within 125 \ndays after the charity disposes of the vehicle. This form requires the charity to identify the donor, \nthe charity, and the amount the charity received upon disposition of the vehicle. The charity must \ngive the donor a copy of the completed Form 8282. \nWritten Statements Disclosing Quid Pro Quo Contributions,\nIf a charity provides goods or services in exchange for property valued at over $75, it must \nprovide the donor a written statement. See Publication 1771, Charitable Contributions – \nSubstantiation and Disclosure Requirements, for more information about written statements \ndisclosing quid pro quo contributions. \nState Law Requirements – Vehicle Title,\nCharities and their fundraisers are subject to state law requirements relating to titling of vehicles \nand transfers of title. Generally, state charity officials recommend that the donor take responsibil\nity for transfer of title to ensure termination of liability for the vehicle. In most states, this involves \nfiling a form with the state motor vehicle department, which states that the vehicle has been \ndonated. Before donating the vehicle, the donor should remove the license plates, unless state \nlaw requires otherwise. This will help avoid any liability problems after the vehicle is transferred. \n",
",,\nAssistance Through State \nOfficials and Through the IRS,\nState Charity Official Assistance,\nBefore starting a vehicle donation program, check out your state requirements. Charities that \nsolicit contributions are often required to register with state officials, such as the state attorney \ngeneral or the secretary of state. Some state charity officials provide information about paid \nfundraisers on their Web site. Contact your state charity official if you have a concern or complaint \nthat a charity is not complying with state laws. \nA listing of state charity offices is available through the National Association of State Charity \nOfficials at www.nasconet.org. A listing of state attorneys general is available through the National \nAssociation of Attorneys General at www.naag.org. \nIRS Assistance,\nThe IRS offers help that is accessible online, via mail, by telephone, and at IRS walk-in offices in \nmany areas of the country. IRS forms and publications can be downloaded from the Internet and \nordered by telephone. \nSpecialized Assistance for Tax-Exempt Organizations,\nwww.irs.gov/Charities-&-Non-Profits,\nSubscribe to the EO Update, an electronic newsletter \nwith information for tax-exempt organizations and tax \npractitioners who represent them.\nwww.stayexempt.irs.gov,\nWeb based training ,\nEO Customer Service,\n(877) 829-5500 (toll-free), \nInternal Revenue Service,\nTE/GE, \nP.O. Box 2508,\nCincinnati, OH 45201,\nIRS tax forms and publications related to donations include: \nForm 1098-C, Contributions of Motor Vehicles, Boats, \nand Airplanes, ,\nForm 8282, Donee Information Return, ,\nForm 8283, Noncash Charitable Contributions, ,\nPublication 526, Charitable Contributions,, \nPublication 561, Determining the Value of Donated Property, \nPublication 1771, Charitable Contributions – Substantiation \nand Disclosure Requirements,, \nPublication 4303, A Donor’s Guide to Vehicle Donations,\nGeneral IRS Assistance on the \nlatest tax laws, forms and publi-\ncations, and filing information:\nwww.irs.gov,\nFederal tax questions, \t(800) 829-1040,\nSmall business \nfederal tax questions, \t (800) 829-4933,\nIRS tax forms and \npublications, \t\n(800) 829-3676,\nPublication 4302 (Rev. \n1-2015) Catalog Number 38161E Department of the Treasury Internal Revenue Service www.irs.gov\n"
] |
p5195.pdf
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0115 Publ 5195 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5195.pdf
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[
" \n \n \n \n \n \n \n \n \n \n \n \nThe Premium Tax Credit and \nYour Tax Return \n…what you need to know.\nAffordable Care Act \nIndividuals and Families \nIf you purchased insurance through the Health Insurance Marketplace, you may be eligible to claim the premium tax credit when \nyou file your federal income tax return. When purchasing coverage, you had an option to get advance payments of the premium tax \ncredit paid directly to your insurer. If you chose this option, you must file a tax return to reconcile the advance credit payments with the \namount of the credit you are allowed to claim on your return. If you did not choose to have advance credit payments made on your \nbehalf, you will get all of the benefit of the credit when you file your tax return. Either way, you must file a tax return to claim the premium \ntax credit. \nForm 1095-A, Health Insurance Marketplace Statement \nFor coverage purchased through the Marketplace, you will receive one or more Forms 1095-A, Health Insurance Marketplace \nStatement, by the end of January. Form 1095-A provides a summary of coverage purchased through the Marketplace and the total of \nany advance payments of the premium tax credit made on your behalf. The information on Form 1095-A will help you complete your \nfederal income tax return. If you have questions about your Form 1095-A, contact your Marketplace. \nForm 8962, Premium Tax Credit \nYou must file IRS Form 8962, Premium T\nax Credit (PTC), with your tax return to claim the credit.You also use the form to reconcile, or \ncompare, your advance credit payments to the amount of the credit you are allowed to claim on your return. If the advance credit pay\nments are more than the allowed credit, you will have to increase your tax liability by some or all of the excess. This will either increase \nyour balance due or reduce your refund. If the advance credit payments are less than the credit you are allowed, the difference (called \nthe net premium tax credit) will either increase your refund or reduce your balance due. \nReporting the Credit on Your Tax Return \nYou will file Form 8962 with your tax return and report the net premium tax credit or excess advance credit payments on your Form \n1040, Form 1040A, or Form 1040NR. You cannot claim the premium tax credit or reconcile advance credit payments with your premium \ntax credit on Form 1040EZ. \nYou can electronically file Form 8962, Premium T\nax Credit (PTC), along with your federal income tax return. Filing electronically is the \neasiest way to file a complete and accurate tax return. \nTo find out more about the premium tax credit, visit IRS.gov/aca. \nPublication 5195 (1-2015) Catalog Number 67463H Department of the Treasury Internal Revenue Service www.irs.gov \n"
] |
p5193.pdf
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0115 Publ 5193 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5193.pdf
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[
" \n \n \n \n \n \n \n \n \n \n \n \nPreparing your Federal Tax Return: \nClaiming and Reporting Health \nCoverage Exemptions \n…what you need to know.\nAffordable Care Act \nIndividuals and Families \nUnder the Affordable Care Act, you and everyone on your tax return must have qualifying health coverage throughout the year, qualify \nfor a coverage exemption, or make an individual shared responsibility payment with your tax return. \nCoverage Exemptions \nYou or your dependents may qualify for an exemption for any month in which you: \n•\nDid not have access to coverage that is considered affordable.\n•\nWere without coverage for less than three consecutive months.\n•\nExperienced a hardship that prevented you from obtaining coverage.\n•\nWere a member of a group explicitly exempt from the coverage requirement.\nHow you get an exemption depends on the type of exemption.You can obtain some exemptions only from the Health Insurance \nMarketplace in the area where you live while others only may be claimed on your tax return. Some exemptions may be obtained from \nthe Marketplace or claimed on your tax return. \nFor those exemptions that do not require Marketplace approval, all you need to do is claim the exemption when you file your federal tax \nreturn – you do not need to call or obtain it in advance. \nClaiming and Reporting an Exemption \nComplete Form 8965, Health Coverage Exemptions, and submit it with your tax return to claim an exemption or report an exemption \ngranted by the Marketplace. If you were granted an exemption by the Marketplace you will enter your exemption certificate number on \nthe form. \nYou can electronically file Form 8965, Health Coverage Exemptions. Filing electronically is the best way to file a complete and accurate \nreturn. \nTo find out more about exemptions and how to obtain one, visit IRS.gov/aca. \nPublication 5193 (1-2015) Catalog Number 67460A Department of the Treasury Internal Revenue Service www.irs.gov \n"
] |
iss8pr.pdf
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1214 Inst SS-8 (PR) (PDF)
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https://www.irs.gov/pub/irs-pdf/iss8pr.pdf
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[
"Instrucciones para el \nFormulario SS-8PR\n(Rev. diciembre de 2014)\nDeterminación del Estado de Empleo de un Trabajador para Propósitos de las \nContribuciones Federales Sobre el Empleo\nDepartment of the Treasury\nInternal Revenue Service\nLas secciones a las cuales se hace referencia abajo \ncorresponden al Código Federal de Impuestos Internos a menos \nque se indique de otra manera.\nAcontecimientos Futuros\nPara obtener la información más reciente sobre los \nacontecimientos relacionados al Formulario SS-8PR y sus \nInstrucciones, como legislación promulgada después de que \ndichos documentos se hayan publicado, por favor, visite \nwww.irs.gov/ss8pr.\nInstrucciones Generales\nPropósito de este Formulario\nLas empresas y los trabajadores radican el Formulario SS-8PR \npara obtener una determinación sobre si un trabajador es un \nempleado conforme a las reglas de derecho común para \npropósitos de las contribuciones federales sobre el empleo. \nNormalmente, según las reglas de derecho común, un \ntrabajador es un empleado si la empresa tiene el derecho de \ncontrolar qué funciones se van a llevar a cabo y cómo éstas se \nvan a llevar a cabo. Vea la Publicación 179 (Circular PR), Guía \nContributiva Federal para Patronos Puertorriqueños, para más \ninformación sobre cómo determinar si un trabajador que lleva a \ncabo servicios es un empleado o contratista independiente.\nSe puede solicitar una determinación a través del Formulario \nSS-8PR únicamente para resolver asuntos relacionados con las \ncontribuciones federales. Si se presenta un Formulario SS-8PR \npara un año contributivo por el cual se ha vencido el plazo de \nprescripción, no se le emitirá una carta de determinación.\nEl Servicio Federal de Rentas Internas (IRS, por sus siglas en \ninglés) no emite cartas de determinación sobre asuntos \npropuestos, sobre situaciones hipotéticas, ni por otras razones \nque no sean para la administración efectiva de las rentas \ninternas. Sin embargo, podemos emitir una carta informativa \ncuando lo consideramos apropiado.\nDefinición\nEmpresa. A todos los efectos de este formulario, la palabra \n“empresa” significa un individuo, empresa comercial, \norganización, estado u otra entidad por la cual un trabajador \nhaya prestado servicios. Es posible que la empresa haya \npagado o no haya pagado directamente al trabajador por tales \nservicios.\nSi la empresa no fue responsable de pagarle al \ntrabajador por sus servicios, anote el nombre del \npagador en la primera página del Formulario SS-8PR \ndebajo de la información de identificación para la empresa y el \ntrabajador.\nNota: Los trabajadores para los gobiernos estatales y locales \ny/o las dependencias (instrumentalidades) interestatales quizás \npodrían estar cubiertos por un acuerdo conforme a la sección \n218 de la Ley del Seguro Social. Un acuerdo conforme a la \nsección 218 es un acuerdo escrito voluntario entre el \nPRECAUCION\n´\n!\nAdmistrador Estatal del Seguro Social y la Administración del \nSeguro Social. En todos los 50 estados de los Estados Unidos, \nPuerto Rico, las Islas Vírgenes Estadounidenses y \naproximadamente 60 dependencias interestatales tienen \nacuerdos conforme a la sección 218 en donde se amplía la \ncobertura al Seguro Social a ciertos empleados. Los \ntrabajadores que estén cubiertos bajo un acuerdo conforme a la \nsección 218 están sujetos a las contribuciones al Seguro Social \ny al Medicare independientemente de cualquier determinación \nque se haya llevado a cabo siguiendo las reglas de derecho \ncomún.\nEl hecho de que un trabajador de un gobierno estatal o local \nesté sujeto a las contribuciones al Seguro Social y al Medicare \ndepende de cuáles de las siguientes tres categorías le \ncorresponde al trabajador:\n1.\nEstá sujeto al Seguro Social según un acuerdo conforme \na la sección 218, o\n2.\nEstá sujeto al Seguro Social conforme a disposiciones de \ncobertura obligatoria, o\n3.\nEstá excluido del Seguro Social porque no hay un \nacuerdo conforme a la sección 218 y el empleado está cubierto \nbajo un plan de retiro calificado.\nSi el trabajador no está seguro si un acuerdo conforme a la \nsección 218 cubre la entidad gubernamental estatal o local, él o \nella debe comunicarse con la entidad antes de radicar el \nFormulario SS-8PR. Si la entidad no está segura si un acuerdo \nconforme a la sección 218 cubre la posición en cuestión, dicha \nentidad debe comunicarse con el Administrador Estatal del \nSeguro Social para el estado en el cual ésta opera.\nProceso de Determinación de un \nFormulario SS-8PR\nEl IRS tiene que acusar recibo de su Formulario SS-8PR. Ya \nque normalmente hay dos (o más) partes que pueden ser \nafectadas por una determinación del estado de un trabajador, el \nIRS trata de solicitarles información a todas las partes en \ncuestión emitiéndoles unos Formularios SS-8PR en blanco que \ntienen que ser completados por dichas partes. Alguna o toda la \ninformación provista en este Formulario SS-8PR podría ser \ncompartida con las otras partes indicadas en la página 1. Su \ncaso será asignado a un experto técnico y éste examinará todos \nlos hechos, aplicará la ley al caso y llegará a una decisión. El \nexperto podría pedirle más información al solicitante, a otros \ngrupos involucrados o a terceros que pudieran aclarar la \nrelación laboral antes de darle una decisión. Por regla general, \nel IRS le emitirá una determinación formal a la empresa o \npagador (si éste es distinto a la empresa); una copia de la \nmisma será enviada al trabajador. Una carta de determinación \ncorresponde sólo al trabajador (o clase de trabajadores) que la \nsolicita y el IRS está obligado a aceptarla, si no hay cambio en \nlos hechos o la ley que establece la base para la decisión. En \nalgunos casos, no se le emitirá una determinación formal. En su \nlugar, se le emitirá una carta informativa. Aunque la carta \ninformativa es de naturaleza consultiva y no le obliga al IRS \naceptarla formalmente, se puede utilizar para ayudarle al \ntrabajador cumplir con sus obligaciones contributivas federales. \nDec 22, 2014\nCat. No. 66278U\n",
"En otras circunstancias limitadas, el IRS podría emitir una carta \nde cortesia que el trabajador podría utilizar para cumplir sus \nobligaciones sobre las contribuciones federales.\nNi los procedimientos para solicitar una determinación en el \nFormulario SS-8PR ni la inspección de cualesquier documentos \nrelacionados con tal determinación constituyen una revisión de \nuna planilla para la declaración de contribución federal. Si los \nperíodos contributivos en cuestión ya han sido revisados, el \nproceso de determinación correspondiente al Formulario \nSS-8PR no constituirá una revisión adicional de una revisión \npreviamente hecha de acuerdo con los procedimientos del IRS \npara reconsiderar un caso. Debido a que esto no es una revisión \no inspección (auditoría) de una planilla de impuestos federales, \nlos derechos de apelación relacionados con una revisión no \ncorresponden a una determinación efectuada a base del \nFormulario SS-8PR. Si usted no está de acuerdo con la \ndeterminación, puede identificar hechos que fueron parte de la \npresentación original que piensa que no se consideraron \ntotalmente. Si tiene información adicional sobre la relación \nlaboral que no fue parte de la presentación original, puede \npresentar la información adicional y solicitar que la oficina del \nIRS reconsidere la determinación.\nCómo Completar el Formulario \nSS-8PR\nConteste todas las preguntas lo más completamente posible. \nAdjunte hojas adicionales si necesita más espacio. Incluya \ninformación en el Formulario SS-8PR para todos los años \ndurante los cuales el trabajador prestó servicios para la \nempresa. Se basan las determinaciones en la totalidad de la \nrelación que existe entre la empresa y el trabajador. También \nindique si hubo cambios significativos en la relación laboral \ndurante el tiempo en que se prestaron servicios.\nSi no provee toda la información solicitada en el \nFormulario SS-8PR, se le devolverá el formulario a la \npersona quién lo envió.\nSe pueden obtener copias adicionales de este formulario en \nel sitio del IRS en Internet: www.irs.gov/espanol o llamando al \n1-800-829-3676.\nCargos\nNo tiene que pagar al solicitar una carta de determinación en el \nFormulario SS-8PR.\nRequisito de Firma\nEl contribuyente tiene que firmar y fechar el Formulario SS-8PR. \nNo se permite usar una firma estampada.\nLa persona que firma por una corporación tiene que ser un \noficial o ejecutivo de la misma. Esta persona debe tener un \nconocimiento profundo de los hechos. Si la corporación es \nmiembro de un conjunto de negocios afiliados que radican una \nplanilla consolidada, el formulario tiene que ser firmado y \npresentado por un oficial o ejecutivo de la corporación matriz del \nconjunto.\nLa persona que firma por un fideicomiso, sociedad colectiva \no compañía de responsabilidad limitada tiene que ser, \nrespectivamente, un fiduciario, socio general o socio-gerente \nque tiene conocimiento personal de todos los hechos.\nSi el contribuyente no firma ni fecha el Formulario SS-8PR \ndebidamente, éste no se podrá tramitar y se le devolverá.\nAdónde se Radica el Formulario\nPara las empresas localizadas en Puerto Rico (y en las Islas \nVírgenes), por favor envíe el Formulario SS-8PR debidamente \ncompletado y firmado a la siguiente dirección.\nPRECAUCION\n´\n!\n \nInternal Revenue Service\nForm SS-8 Determinations\nP.O. Box 630\nStop 631\nHoltsville, NY 11742-0630\nNo se aceptarán las versiones del Formulario SS-8PR \nenviadas por fax, fotocopiadas o versiones electrónicas de una \nsolicitud inicial para obtener una determinación mediante el \nFormulario SS-8PR. No envíe el Formulario SS-8PR con su \nplanilla de contribución porque esto causaría un retraso \nen el trámite.\nInstrucciones para los Trabajadores\nSi solicita una determinación para más de una empresa, llene un \nFormulario SS-8PR por separado para cada empresa en \ncuestión.\nEl Formulario SS-8PR no es una reclamación para un \nreembolso de las contribuciones al Seguro Social y al \nMedicare.\nSi el IRS determina que usted es un empleado, usted mismo \nserá responsable de radicar una planilla enmendada para hacer \ncualesquier correcciones relativas a esta determinación. \nAdemás, una determinación de que un individuo es un \nempleado no necesariamente reducirá una deuda contributiva \nactual o previa. Llame al 1-800-829-1040 para más información.\nPlazo para radicar una reclamación de reembolso. Por \nregla general, usted tiene que radicar una reclamación de \ncrédito o de reembolso dentro de 3 años a partir de la fecha en \nque radicó su planilla original o dentro de 2 años a partir de la \nfecha en que pagó la contribución, lo que ocurra más tarde.\nLa radicación de un Formulario SS-8PR no impide el \nvencimiento del plazo durante el cual se tiene que radicar \nuna reclamación de reembolso. Si le preocupa el estado de \nsu reembolso y el período de prescripción para radicar una \nreclamación de reembolso para el año en cuestión todavía no se \nha vencido, usted deberá radicar el Formulario 1040X, \nAmended U.S. Individual Income Tax Return (Planilla \nenmendada para la declaración de las contribuciones federales \nestadounidenses sobre los ingresos para personas físicas), en \ninglés, para proteger su plazo de prescripción. Radique un \nFormulario 1040X para cada año en cuestión.\nEn el Formulario 1040X, deje las líneas 1 a la 23 en blanco. \nEscriba “Protective Claim” (Reclamación Precautoria) en la parte \nsuperior del formulario, fírmelo y féchelo. Además, anote las \npalabras siguientes en la Parte III: “Filed Form SS-8PR with the \nIRS office in Holtsville, NY. By filing this protective claim, I \nreserve the right to file a claim for any refund that may be due \nafter a determination of my employment tax status has been \ncompleted” (Radiqué el Formulario SS-8PR ante la oficina del \nIRS en Holtsville, NY. Al radicar esta reclamación precautoria, \nreservo el derecho de radicar una reclamación de cualquier \nreembolso que pueda resultar después de que se haya llegado \na una determinación de mi estado de trabajador con respecto a \nlas contribuciones sobre la nómina).\nLa radicación de un Formulario SS-8PR no afecta el \nrequisito de radicar oportunamente una planilla de \ncontribución. No demore en radicar su planilla de contribución \nmientras espera una respuesta a la solicitud que hizo mediante \nel Formulario SS-8PR. Además, si le corresponde, no demore \nen responder si el IRS le solicita un pago mientras espera tal \ndeterminación.\nInstrucciones para Empresas\nSi un trabajador ha solicitado una determinación de su estado \nde trabajador mientras trabajaba para usted, usted recibirá una \nPRECAUCION\n´\n!\n-2-\n",
"petición del IRS para que complete un Formulario SS-8PR. En \ncasos como éste, el IRS suele otorgar a cada parte en cuestión \nla oportunidad para presentar una declaración de los hechos ya \nque nuestra decisión afectará el estado de trabajo para fines \ncontributivos de cada una de las partes en cuestión. El no \nresponder a esta solicitud no impedirá que el IRS le emita una \ncarta de determinación al trabajador basada en toda la \ninformación que se le haya facilitado al IRS, a fin de satisfacer \nsus obligaciones contributivas federales. Sin embargo, la \ninformación que usted provea es de un valor inestimable en la \ndeterminación del estado de trabajador.\nSi usted está llenando el formulario para una clase particular \nde trabajador, complételo para un individuo que represente la \nclase de trabajadores cuyo estado está en cuestión. Si usted \ndesea una determinación escrita para más de una clase de \ntrabajadores, llene un Formulario SS-8PR por separado para un \ntrabajador de cada clase cuyo estado sea típico de esa clase. \nUna determinación por escrito sobre el estado de cualquier \ntrabajador le corresponderá a cada trabajador de la misma \nclase, si los hechos no difieren sustancialmente de los del \ntrabajador que representa dicha clase. Por favor, incluya una \nlista de los nombres y direcciones de todos los trabajadores que \npodrían ser afectados por esta determinación, para que el IRS \nse pueda comunicar con ellos para solicitarles información.\nSi tiene una base razonable para no tratar a un trabajador \nsuyo como empleado, usted puede ser exonerado de la \nobligación de pagar las contribuciones sobre la nómina \ncorrespondientes a ese trabajador según se estipula en la \nsección 530 de la Revenue Act of 1978 (Ley Contributiva de \n1978). No obstante esto, dichas estipulaciones no corresponden \na una determinación solicitada en el Formulario SS-8PR ya que \nla misma no es una revisión o inspección (auditoría) de su \nplanilla de contribución. Para más información sobre la sección \n530 de la Ley Contributiva de 1978 y para ver si usted reúne los \nrequisitos para un alivio contributivo conforme a dicha sección, \nvisite www.IRS.gov/espanol.\nCómo Obtener Ayuda\nSi desea obtener formularios e instrucciones del IRS, acceda a \nwww.IRS.gov o llame al 1-800-829-3676 (1-800-TAX-FORM).\nEl Servicio del Defensor del Contribuyente está \naquí para ayudarlo a usted\nEl Servicio del Defensor del Contribuyente (TAS, por sus \nsiglas en inglés) es su voz ante el IRS. Nuestro deber es \nasegurar que a cada contribuyente se le trate de forma justa, y \nque usted conozca y entienda sus derechos.\n¿Qué puede hacer TAS por usted? Le ofrecemos ayuda \ngratuita para ayudarle a resolver problemas con el IRS que no \nha podido resolver usted mismo. Sabemos que este proceso \npuede ser confuso, pero, ¡lo peor que se puede hacer es no \nhacer nada! TAS le puede ayudar si usted no puede resolver su \nproblema contributivo con el IRS y ademas:\nSu problema le causa problemas financieros a usted, su \nfamilia o su negocio.\nUsted (o su negocio) está enfrentando la amenaza de acción \nadversa inmediata.\nUsted ha intentado, en repetidas ocaciones, de comunicarse \ncon el IRS, pero nadie le ha respondido, o el IRS no le ha \nrespondido para la fecha prometida.\nSi usted reúne los requisitos para recibir nuestra ayuda, se le \nasignará un defensor, quien estará a su lado en cada paso del \nproceso y quien hará lo posible para resolver su problema. \nNosotros le podemos ayudar porque:\nTAS es una organización independiente dentro del IRS.\nNuestros defensores saben cómo trabajar con el IRS.\nNuestros servicios son gratuitos y se modifican para \nsatisfacer las necesidades de usted.\nTenemos oficinas en cada estado, el Distrito de Columbia y \nPuerto Rico.\n¿Cómo se puede comunicar con nosotros? Si usted cree \nque TAS le puede ayudar, llame a su defensor local, cuyo \nnúmero telefónico se encuentra en su directorio telefónico y en \nel sitio www.irs.gov/advocate, disponible en inglés. También, \nnos puede llamar libre de cargos al 1-877-777-4778.\n¿De qué otras maneras ayuda TAS a los contribuyentes? \nTAS también se ocupa de resolver problemas de gran escala o \nproblemas sistémicos que afectan a muchos contribuyentes. Si \nusted tiene conocimiento alguno de estos asuntos, favor de \ninformarnos del mismo utilizando el Systemic Advocacy \nManagement System (Sistema de Administración de la Defensa \nSistémica), en inglés, en el sitio www.irs.gov/sams.\nSi desea más información sobre TAS, visite \nwww.taxpayeradvocate.irs.gov en inglés, o vea la Publicación \n1546(SP), Servicio del Defensor del Contribuyente –Su Voz ante \nel IRS.\nTalleres para Contribuyentes de Bajos Ingresos \n(LITC)\nLos Talleres para Contribuyentes de Bajos Ingresos (LITC, por \nsus siglas en inglés) sirven a las personas cuyos ingresos estén \npor debajo de cierto nivel y que necesitan resolver un problema \ntributario, tal como auditorías, apelaciones y litigios de cobro de \nimpuestos. Algunos talleres pueden proveer información sobre \nlos derechos y responsabilidades del contribuyente en \ndiferentes idiomas para aquellas personas que hablan inglés \ncomo segundo idioma. Visite el sitio www.irs.gov/litc, en inglés, \no vea la Publicación 4134(SP), Lista de Talleres para \nContribuyentes de Bajos Ingresos.\nRepresentación\nUsted tiene derecho de representarse a sí mismo, o con la \ndebida autorización escrita, a que otra persona lo represente. \nSu representante deberá ser una persona que tenga permiso \npara representarlo ante el IRS, tal como un abogado, contador \npúblico autorizado, o agente registrado (una persona inscrita \npara ejercer ante el IRS). Use el Formulario 2848(SP), Poder \nLegal y Declaración del Representante, si desea autorizar a otra \npersona que lo represente a usted ante el IRS. \nAviso sobre la Ley de \nConfidencialidad de Información y la \nLey de Reducción de Trámites\nSolicitamos la información contenida en el Formulario SS-8PR \npara cumplir con las leyes que regulan la recaudación de las \nrentas internas de los Estados Unidos. Se usará esta \ninformación para determinar el estado de empleo del (de los) \ntrabajador(es) descrito(s) en este formulario. El Subtítulo C, \nContribuciones por Razón del Empleo, del Código Federal de \nRentas Internas, impone tales contribuciones sobre los sueldos \ny salarios del empleado. Las secciones 3121(d), 3306(a) y \n3401(c) y (d) y su reglamentación respectiva definen a \n“empleado” y “patrono” para propósitos de las contribuciones \nsobre la nómina impuestas de acuerdo con el Subtítulo C. La \nsección 6001 le autoriza al IRS para solicitar información a fin de \ndeterminar si un(os) trabajador(es) o una empresa está(n) o no \nestá(n) sujeta(s) a tales contribuciones. La sección 6109 del \nCódigo le requiere que nos provea su número de identificación. \nNo se le obliga ni al trabajador ni a la empresa que solicite una \ndeterminación de su estado de empleo, pero si usted elige \nhacerlo, tiene que proveer la información solicitada en este \nformulario. El no proveer la información solicitada puede impedir \n-3-\n",
"que hagamos una determinación del estado de empleo. Si un \ntrabajador o empresa solicita una determinación del estado de \nempleo y se le pide a usted que provea información para ayudar \nen la determinación de tal estado, no está obligado a proveerla. \nSin embargo, el no proveer dicha información le impedirá al IRS \nconsiderarla al hacer la determinación del estado de empleo. El \nproveer información falsa o fraudulenta puede hacerle sujeto a \npenalidades. Por regla general, las planillas de contribución y \ntoda información pertinente son confidenciales, como lo \nrequiere la sección 6103 del Código. Sin embargo, la sección \n6103 permite, o requiere, que el IRS divulgue o provea la \ninformación contenida en este formulario a ciertas personas tal \ncomo se estipula en el Código. El uso normal de esta \ninformación incluye proveerla al Departamento de Justicia para \nuso en litigio civil y penal, a la Administración del Seguro Social \npara la administración de programas del Seguro Social y a las \nciudades, estados, Distrito de Columbia y los estados libres \nasociados con los EE.UU. o territorios estadounidenses a fin de \nayudarlos a aplicar sus leyes contributivas. También podemos \ndivulgar esta información a otros gobiernos extranjeros \nconforme a los tratados contributivos que tengan con los \nEstados Unidos, a agencias federales y estatales para hacer \ncumplir las leyes federales penales que no tienen que ver con la \ncontribución o a agencias federales encargadas de hacer \ncumplir las leyes y a agencias federales de inteligencia para \ncombatir el terrorismo. Podríamos proporcionarle(s) al (a los) \ntrabajador(es), a la(s) empresa(s) o al pagador en cuestión esta \ninformación como parte del proceso para determinar su estado \nde empleo.\nUsted no está obligado a proveer la información solicitada en \nun formulario sujeto a la Ley de Reducción de Trámites a menos \nque el mismo muestre un número de control válido de la Office \nof Management and Budget (Oficina de Administración y \nPresupuesto u OMB, por sus siglas en inglés). Los libros o \nregistros relativos a este formulario o sus instrucciones tienen \nque ser conservados mientras su contenido pueda ser utilizado \nen la administración de la ley contributiva federal. Sin embargo, \nla sección 6103 permite, o requiere que el IRS divulgue o provea \nla información contenida en su planilla de contribución a ciertas \npersonas tal como se estipula en el Código.\nEl tiempo que se necesita para completar y radicar este \nFormulario SS-8PR variará, dependiendo de las circunstancias \nindividuales. El promedio de tiempo que se estima para \ncompletar este formulario es: Mantener los récords, 24 h, 9 \nmin; Aprender acerca de la ley o del Formulario, 1h, 48 min; \nPreparar el Formulario, 5 h, 4 min; y Enviar el Formulario al \nIRS, 48 min. Si usted desea hacer algún comentario acerca de \nla exactitud de estos estimados o alguna sugerencia para hacer \nque este formulario sea más sencillo, por favor, envíenos los \nmismos. Usted puede enviar sus comentarios a través del sitio \ndel IRS en inglés, www.irs.gov.formspubs. Pulse sobre el enlace \n“More Information” (Más información) y luego sobre el enlace \n“Give us feedback” (Déjenos sus comentarios). O puede enviar \nsus comentarios al: Internal Revenue Service, Tax Forms and \nPublications, 1111 Constitution Ave. NW, IR-6526, Washington, \nDC 20224. No envíe este formulario a esta dirección. En vez de \neso, vea Adónde se Radica el Formulario, anteriormente.\n-4-\n"
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fss8pr.pdf
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1214 Form SS-8 (PR) (PDF)
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https://www.irs.gov/pub/irs-pdf/fss8pr.pdf
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[
"Formulario SS-8PR\n(Rev. diciembre de 2014) \nDepartment of the Treasury \nInternal Revenue Service \nDeterminación del Estado de Empleo de un Trabajador \npara Propósitos de las Contribuciones \nFederales Sobre el Empleo \n \n \n ▶ Información sobre el Formulario SS-8PR y sus instrucciones separadas están \ndisponibles en www.irs.gov/ss8pr. \nOMB No. 1545-0004 \nPara Uso Exclusivo del IRS: \nNúmero de Caso: \nPrimera Fecha de \nRecibimiento:\nNombre de la empresa (o individuo) para quien el trabajador prestó los servicios \nDirección postal de la empresa (incluya la dirección completa, núm. de apto. u oficina, \nciudad o pueblo y código postal (ZIP)) \nNombre comercial (o nombre usado al \noperar su negocio) \n Correo electrónico de la empresa \nNúmero de fax de la empresa\nSitio web de la empresa\nNúmero de teléfono de la empresa (incluya \ncódigo de área) \nNúmero de identificación patronal de la \nempresa \nNombre del trabajador \nDirección postal del trabajador (incluya la dirección completa, núm. de apto. u oficina, \nciudad o pueblo y código postal (ZIP)) \nNúmero de teléfono del trabajador \ndurante el día \nCorreo electrónico del trabajador\nNúmero de teléfono alterno del trabajador Número de fax del trabajador\nNúmero de Seguro Social del trabajador \nNúmero de identificación patronal del \ntrabajador (si lo tiene) \nNota: Si el trabajador es compensado por estos servicios por una empresa que no sea la empresa indicada en este formulario, \nescriba el nombre, dirección y número de identificación patronal del pagador. ▶\nDivulgación de la Información \nLa información provista en el Formulario SS-8PR puede ser divulgada a la empresa, trabajador o pagador nombrado anteriormente para ayudarle al \nIRS en el proceso de determinación. Por ejemplo, si usted es un trabajador, podríamos divulgar la información que usted provee en el Formulario \nSS-8PR a la empresa o al pagador nombrado anteriormente. La información sólo puede ser divulgada para ayudar con el proceso de determinación. \nSi usted provee información incompleta, quizás no podamos tramitar su solicitud. Vea el Aviso sobre la Ley de Confidencialidad de Información y \nla Ley de Reducción de Trámites, en las instrucciones separadas, para más información. Si usted no quiere que esta información se divulgue a \notros, no radique el Formulario SS-8PR. \nPartes I-V. Todos los que radican el Formulario SS-8PR tienen que completar todas las preguntas en las Partes I-IV. La Parte V tiene que ser \ncompletada si el trabajador presta servicios directamente a clientes o si es un vendedor. Si usted no puede contestar una pregunta, escriba \n“Desconozco” o “No corresponde”. Si necesita más espacio para contestar una pregunta, adjunte otra hoja en donde claramente identifica la parte y \nel número de la pregunta. Escriba el nombre de su empresa (o nombre del trabajador) y el número de identificación patronal (o número de Seguro \nSocial) en la parte superior de cada página que adjunte a este formulario. \nParte I \nInformación General \n1 \nEstá completando este formulario:\nLa empresa \nEl trabajador; por servicios prestados del \n(fecha de inicio) \nal \n(fecha final) \n. \n2 \nExplique el(los) motivo(s) por el(los) cual(es) usted radica este formulario (por ejemplo, recibió una factura del IRS, cree haber \nrecibido un Formulario 1099, Formulario 499R-2/W-2PR o Formulario W-2 erróneamente, no puede obtener beneficios de la \ncompensación del seguro obrero-patronal, si se le auditó o está siendo auditado por el IRS): \n3 \nNúmero total de trabajadores que han prestado o están prestando los mismos o servicios similares: \n4 \n¿Cómo obtuvo el empleo el trabajador? \nSolicitud \nPropuesta \nAgencia de empleos \nOtro (especifique)\n5 \nAdjunte copias de todos los documentos comprobantes (por ejemplo, contratos, facturas, notas, Formularios 499R-2/W-2PR, \nFormularios W-2 o Formularios 1099-MISC emitidos o recibidos, acuerdos de cierre del IRS o decisiones del IRS). Además, \npor favor, infórmenos de todo litigio en el pasado o presente que concierne el estado de empleo del trabajador. Si el trabajador no \nrecibió ningún formulario de constancia de ingresos (Formulario 1099-MISC, Formulario W-2 o Formulario 499R-2/W-2PR), anote la \ncantidad de ingresos devengados para el(los) año(s) en cuestión: $ \n. Si tanto el Formulario 499R-2/W-2PR\n(o Formulario W-2) como el Formulario 1099-MISC fueron emitidos o recibidos, explique el motivo:\n6 \nDescriba la ocupación principal de la empresa: \nPara el Aviso sobre la Ley de Confidencialidad de Información y la Ley de \nReducción de Trámites, vea las instrucciones separadas. \nCat. No. 23365E \nFormulario SS-8PR (Rev. 12-2014) \n",
"Formulario SS-8PR (Rev. 12-2014) \nPágina 2 \nParte I \nInformación General (continuación)\n7 \nSi el trabajador recibió paga de más de una entidad debido a un evento (cambio) causado por la venta, fusión, adquisición o \nreorganización de la empresa para la cual se llevan a cabo los servicios, proporcione lo siguiente:\nNombre del dueño anterior de la empresa:\nNúmero de identificación patronal (EIN) del dueño anterior:\nEl cambio fue:\nVenta\nFusión\nAdquisición\nReorganización\nOtro (especifique)\nDescripción del evento (cambio):\nFecha del evento (cambio (día/mes/año)):\n8 \nDescriba los deberes o tareas del trabajador y el cargo que éste lleva:\n9 \nExplique por qué usted cree que el trabajador es empleado o es contratista independiente: \n10 \n¿Prestó el trabajador servicios para la empresa en cualquier capacidad antes de proveer los servicios que son el tema de esta \nsolicitud de determinación? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \nNo corresponde\nSi marcó “Sí”, anote las fechas de su servicio anterior en esa posición \nSi marcó “Sí”, explique las diferencias en los servicios provistos, si alguna, entre su antiguo puesto y el que tiene ahora: \n11\nSi el trabajo se hace conforme a un acuerdo por escrito entre la empresa y el trabajador, adjunte una copia (firmada por los \ndos contratantes, si es posible). Describa los términos y condiciones del arreglo de trabajo: \nParte II \nControl de las Actividades/Funciones del Trabajador (Provea los nombres y los cargos de las personas \nespecíficas, si es aplicable).\n1 \n¿Qué capacitación y/o instrucciones específicas recibe el trabajador de la empresa? \n2 \n¿Cómo recibe el trabajador sus tareas relacionadas con el trabajo? \n3 \n¿Quién determina los métodos que usa el trabajador al desempeñar sus tareas? \n4 \n¿Con quién se comunica el trabajador si surgen quejas o problemas y quién es responsable de resolverlos? \n5 \n¿Qué clases de informes o reportes se requieren del trabajador? Incluya unos ejemplos. \n6 \nDescriba la práctica diaria del trabajador (por ejemplo, tareas desempeñadas dentro de su horario normal o sus horas de\ntrabajo): \n7 \n¿En qué localidad(es) presta los servicios el trabajador (por ejemplo, establecimiento de la empresa, su propia oficina o tienda, \nresidencia o establecimiento del cliente)? Indique el porcentaje de tiempo apropiado que el trabajador pasa en cada lugar, si \nhay más de uno: \n8 \nDescriba cualesquier reuniones a las que el trabajador tiene que asistir y las sanciones por no asistir (por ejemplo, reuniones\nde vendedores, reuniones mensuales o reuniones del personal): \n9 \n¿Se requiere que el trabajador preste los servicios en persona? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \n10 \nSi se necesita un sustituto o ayudante, ¿quién lo contrata? \n11 \nSi el trabajador contrata al sustituto o ayudante, ¿está éste sujeto a aprobación? .\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \nSi marcó “Sí”, ¿de quién? \n12 \n¿Quién paga al sustituto o ayudante? \n13 \n¿Recibe un reembolso el trabajador si éste paga al sustituto o ayudante? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \nSi marcó “Sí”, ¿de quién? \nFormulario SS-8PR (Rev. 12-2014) \n",
"Formulario SS-8PR (Rev. 12-2014) \nPágina 3 \nParte III Control Financiero (Provea los nombres y los cargos de las personas específicas, si es aplicable).\n1 \nAnote aquí los suministros, equipo, materiales y propiedades provistas por cada parte: \nLa empresa: \nEl trabajador: \nOtra parte: \n2 \n¿Arrienda el trabajador equipo, espacio o un establecimiento? \nSí \nNo Si marcó “Sí”, ¿cuáles son las condiciones del \ncontrato de arriendo? (Adjunte una copia o una explicación). \n3 \n¿En qué gastos incurre el trabajador al desempeñar sus servicios para la empresa? \n4 \nEspecifique cuáles son los gastos (si los hay) reembolsados al trabajador por: \nLa empresa: \nOtra parte: \n5 \nTipo de paga que recibe el trabajador: \nSueldo \nComisiones \nSalario por hora \nSalario por ajuste (destajo) \nEn suma global \nOtro (especifique) \nSi su tipo de paga es a base de comisiones y la empresa garantiza una cantidad mínima de remuneración, especifique dicha \ncantidad: $ \n6 \n¿Permite la empresa al trabajador una cuenta de adelantos? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \nSi marcó “Sí”, ¿con qué frecuencia puede usarla? \nEspecifique cualesquier restricciones: \n7 \n¿A quién paga el cliente? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nA la empresa \nAl trabajador \nSi es al trabajador, ¿remite éste la cantidad total que recibe a la empresa? \nSí \nNo \nSi marcó “No”, explique la razón: \n8 \n¿Paga la empresa un seguro para la compensación del seguro obrero-patronal para el trabajador? .\n.\n.\nSí \nNo \n9 \n¿Qué tipo de pérdida económica o riesgo financiero puede sufrir el trabajador, si hubiese alguno, además de la pérdida usual \nde su sueldo o salario (por ejemplo, pérdida o daño a su equipo o materiales)? \n10\n¿Establece el trabajador el nivel de pago necesario para los servicios proporcionados o los productos vendidos?\nSí \nNo \nSi marcó “No”, explique quién lo establece.\nParte IV Relación entre las Partes (Trabajador y Empresa)\n1 \nPor favor, seleccione los beneficios a la disposición del trabajador:\nVacaciones pagadas\nCompensación por enfermedad\nDías feriados pagados\nDías personales\nPensiones\nBeneficios de un seguro\nBonificaciones\nOtros (especifique)\n2 \n¿Puede terminar la relación cualquiera de las dos partes sin incurrir en una responsabilidad o sanción? \nSí \nNo \nSi marcó “No”, explique por qué: \n3 \n¿Prestó el trabajador servicios similares para otros durante el período de tiempo anotado en la línea 1 de la Parte I? \n.\nSí \nNo \nSi marcó “Sí”, ¿el trabajador tiene que obtener de la empresa primero su aprobación? .\n.\n.\n.\n.\n.\n.\nSí \nNo \n4 \nDescriba cualesquier acuerdos entre el trabajador y la empresa que prohíben al trabajador competir con la empresa durante su\nperíodo de servicio con la empresa o después. Incluya cualquier documentación comprobante: \n5 \n¿Pertenece el trabajador a un sindicato o unión? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \n6 \n¿Qué tipo de publicidad (si alguna) hace el trabajador (por ejemplo, anuncio en el directorio de negocios o tarjeta de\npresentación)? Provea copias si le corresponde: \n7 \nSi el trabajador arma, ensambla o procesa un producto en casa, ¿quién provee los materiales, instrucciones y/o modelos? \n8 \n¿Qué hace el trabajador con el producto final (por ejemplo, se lo devuelve a la empresa, se lo provee a otra entidad o se vende)? \n9 \n¿Cómo representa la empresa al trabajador ante sus clientes (por ejemplo, como empleado, socio, representante o \ncontratista) y bajo qué nombre comercial el trabajador lleva a cabo estos servicios?\n10 \nSi el trabajador ya no desempeña servicios para la empresa, ¿cómo se acabó la relación entre los dos \n(por ejemplo, el empleado renunció o fue despedido, acabó el trabajo, venció el contrato, el empleado o la empresa cesó sus\nactividades comerciales)? \nFormulario SS-8PR (Rev. 12-2014) \n",
"Formulario SS-8PR (Rev. 12-2014) \nPágina 4 \nParte V \nPara los Proveedores de Servicios o los Vendedores. Complete esta parte si el trabajador prestó \nservicios directamente a los clientes o si es vendedor. \n1 \n¿Cuál es la responsabilidad del trabajador al obtener clientes nuevos? \n2 \n¿Quién provee información al trabajador sobre clientes potenciales? \n3 \nDescriba cualesquier requisitos de reportación sobre dicha información acerca de clientes potenciales: \n4 \n¿Cuáles son los términos y condiciones de venta (si los hay) establecidos por la empresa? \n5 \n¿Hay que entregar los pedidos o encargos a la empresa para que ésta los apruebe? .\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \n6 \n¿Quién determina la ruta específica del trabajador? \n7 \n¿Pagó el trabajador por el privilegio de servir a los clientes en la ruta o territorio? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \nSi marcó “Sí”, ¿a quién le pagó el trabajador? \nSi marcó “Si”, ¿cuánto pagó el trabajador? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n$ \n8 \n¿Dónde vende el trabajador su producto (por ejemplo, en una residencia o negocio al detal)? \n9 \nEnumere los productos y/o servicios distribuidos por el trabajador (tales como carnes, vegetales, frutas, productos de\nrepostería, bebidas o servicios de lavado de ropa a máquina o en seco). Si se distribuye más de un tipo de producto o \nservicio, especifique el principal: \n10 \n¿Vende el trabajador seguros de vida a tiempo completo? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \n11 \n¿Vende el trabajador otro(s) tipo(s) de seguros para la empresa? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSí \nNo \nSi contestó “Sí”, indique el porcentaje de sus horas de trabajo que el trabajador pasó en vender esos otros \ntipos de seguros .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n% \n12 \nSi el trabajador solicita pedidos de mayoristas, detallistas, contratistas u operadores de hoteles, restaurantes \no cualquier otro establecimiento similar, especifique el porcentaje de tiempo que el trabajador pasó \nsolicitando pedidos \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n% \n13 \n¿Compran las mercancías los clientes para reventa o para uso en sus operaciones comerciales? .\n.\n.\n.\nSí \nNo \nDescriba las mercancías e indique si se trata de equipo instalado en el local de negocio de los clientes: \nFirme \nAquí \nBajo pena de perjurio, declaro haber examinado esta solicitud, incluyendo todo documento adjunto y, según mi leal saber y entender, los \nhechos presentados aquí son verídicos, correctos y completos. \n▶\nCargo ▶\nFecha ▶\nEscriba a maquinilla o con letra de molde su nombre ▶\nFormulario SS-8PR (Rev. 12-2014) \n"
] |
f4669.pdf
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1214 Form 4669 (PDF)
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https://www.irs.gov/pub/irs-pdf/f4669.pdf
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[
"Catalog Number 41877Z\nwww.irs.gov\nForm 4669 (Rev. 12-2014)\nForm 4669 \n(December 2014)\nDepartment of the Treasury - Internal Revenue Service\nStatement of Payments Received\nOMB Number \n1545-0364\nPart 1 - Tell us about the payments that were made (To be completed by payor)\n1. Name and address of payee\n2. Payee's Taxpayer Identification Number\n3. Calendar year\n4. Name and address of payor\n5. Payor's Taxpayer Identification Number\n6. Amount of payments\na. Payments subject to Income Tax Withholding \n$\nb. Payments subject to Backup Withholding \n$\nc. Payments to Foreign Persons subject to Withholding Tax \n$\nd. Payments subject to Additional Medicare Tax Withholding \n$\nPart 2 - Tell us where the payments were reported and that the taxes were paid (To be completed by payee)\n7. Name(s) and address as shown on the payee's tax return\n8. The payments shown above on line 6a, 6b, or 6c are reported on my return and the taxes due have been paid in full as shown on\na. Line\non my Form\nreturn for tax year\nb. Schedule\non my Form\nreturn for tax year\n9. The payments shown above on line 6d are either\na.\nReported on my return on Line\n on Form 8959 attached to my Form 1040 return for tax year\n.\nThe taxes due on the return have been paid in full.\nOR\nb.\nI was not liable for Additional Medicare Tax for tax year\n because I filed a joint tax return with my spouse and\ndid not have total Medicare wages and tips and self-employment income of more than $250,000 or total railroad retirement \n(RRTA) compensation of more than $250,000. \nPart 3 - Sign here (To be completed by payee)\nUnder penalties of perjury, I declare that I have examined this form and, to the best of my knowledge and belief it is true, correct, and \ncomplete.\nPayee name (print)\nPayee title (print)\nBest daytime telephone number\nPayee signature\nDate (MM-DD-YYYY)\n",
"Page 2\nCatalog Number 41877Z\nwww.irs.gov\nForm 4669 (Rev. 12-2014)\nInstructions for Form 4669, Statement of Payments Received\nForm 4669, Statement of Payments Received \nSection and chapter references are to the Internal Revenue Code \nunless otherwise noted. \nForm 4669 is subject to review by the IRS. \nGeneral Information \nIf a payor withholds less than the correct amount of tax, it is liable for \nthe correct amount that it was required to withhold. \nSection 3402 requires employers to withhold income tax on payments \nof wages, including reclassified wages and fringe benefits subject to \nfederal income tax withholding. Employers are also responsible under \nsections 3102 and 3202 for withholding a 0.9% Additional Medicare \nTax from wages or compensation paid to an employee in excess of \n$200,000 in a calendar year. For more information on income tax \nwithholding or Additional Medicare Tax, see Publication 15 (Circular \nE), Employer’s Tax Guide, the Instructions for Form 8959, or visit \nwww.irs.gov. \nUnder section 3406, in the case of a reportable payment a payor is \nrequired to withhold a tax equal to the applicable percentage of the \nreportable payment in certain cases (e.g., if the payee fails to furnish \nthe payee’s taxpayer identification number in the manner required). \nThis withholding is referred to as “backup withholding.” For more \ninformation on “backup withholding” see Publication 1281, Backup \nWithholding for Missing and Incorrect Name/TIN(s), or visit www.irs.\ngov and enter the term “backup withholding” in the search box. \nPayors may also be required to withhold tax on certain payments \nmade to a foreign person (individual or entity) subject to withholding \ntax under chapters 3 and 4. For more information see Publication \n515, Withholding of Tax on Nonresident Aliens and Foreign Entities. \nPurpose of form \nA payor who fails to withhold the required tax from a payee, may be \nentitled to relief, under sections 3402(d), 3102(f)(3), 1463 or \nRegulations section 1.1474-4, if the payor can show that the payee \nreported the payments and paid the corresponding tax. Form 4669 is \nused by a payor to show that it is entitled to such relief. \nA separate, completed Form 4669 must be obtained by the payor \nfrom each payee for each year relief is requested. After the payor \nobtains Forms 4669 for a specific year, the Form 4670, Request for \nRelief from Payment of Withholding Tax, is used to transmit the \nForms 4669 for each tax year. A payor should retain a copy of this \ninformation for its files. \nSpecific Instructions \nInstructions for the Payor \nPart 1 \nLine 1: Enter the payee’s name and address in the space provided. \nLine 2: Enter the payee’s taxpayer identification number. This is a \nsocial security number (SSN), an employer identification \nnumber, or an individual taxpayer identification number (ITIN).\nLine 3: Enter the calendar year in which the payor made the \npayments. \nLine 4: Enter the payor’s name and address in the space provided. \nGenerally, enter the business (legal) name used when the \npayor applied for an EIN on Form SS-4, Application for \nEmployer Identification Number. \nLine 5: Enter the payor’s Employer Identification Number. Do not use \nthe payor’s SSN or ITIN.\nLine 6a: Enter the amount of payments subject to income tax \nwithholding. \nLine 6b: Enter the amount of payments subject to backup withholding. \nLine 6c: Enter the amount of payments made to a foreign person \n(individual or entity) subject to withholding tax. \nLine 6d: Enter the amount of payments subject to Additional Medicare \nTax withholding. \nInstructions for the Payee \nPart 1 \nReview the entries in Part 1 provided by the payor. If any of the \ninformation is incorrect, cross out the incorrect information and enter \nthe correct information. Ask the payor to correct its records. \nPart 2 \nAny reference to Form 1040 includes any return in the Form 1040 \nseries (e.g., Form 1040, Form 1040NR, Form 1040-SS, Form 1040-\nPR, Form 1040A, 1040EZ, or 1040NR-EZ). \nLine 7: Enter the payee’s name(s) and address exactly as it appears \non the payee’s tax return. \nFor payments subject to income tax withholding, payments subject to \nbackup withholding, or payments to a foreign person (individual or \nentity) subject to withholding tax, complete either line 8a or 8b as \nappropriate. \nLines 8a and 8b: Specify the form on which the payments were \nreported and the line or schedule of the return. Enter \nthe tax year of the return. \nFor payments subject to Additional Medicare Tax, complete either 9a \nor 9b, as appropriate. \nLine 9a: Check the box in line 9a if the payee reported the payments \non Form 8959, attached to Form 1040. Specify the line on \nForm 8959 on which the payments were reported. Enter the \ntax year of the return. \nLine 9b: Check the box in line 9b if the payee filed using married filing \njointly status on Form 1040 and did not have total Medicare \nwages and tips and self-employment income of more than \n$250,000 or total railroad retirement (RRTA) compensation \nof more than $250,000. The payee was not liable for \nAdditional Medicare Tax. \nPart 3. Payee Signature \nThe payee must sign the Form 4669 under penalties of perjury. Be \nsure to date Form 4669, and print the payee’s name and title (if \napplicable). Providing a daytime phone number may help speed \nprocessing. Return the signed form to the payor. \n",
"Page 3\nCatalog Number 41877Z\nwww.irs.gov\nForm 4669 (Rev. 12-2014)\nPrivacy Act and Paperwork Reduction Act Notice\nWe ask for the information on this form to carry out the Internal Revenue laws of the United States. Subtitle C, Employment Taxes, of the \nInternal Revenue Code requires tax withholding on wages and railroad retirement (RRTA) compensation. Additionally, section 3406 requires \nbackup withholding on certain payments, and chapters 3 and 4 require tax withholding on certain payments to foreign persons. This form is \nused to determine whether the payor is eligible for relief from payment of tax withholding based on payments made to you. You are not required \nto provide this information to the payor. Not providing this information, or providing incomplete information, may delay or prevent the payor’s \nrequest for relief. If you choose to provide this information, providing false or fraudulent information may subject you to penalties. \nGenerally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to \ndisclose or give the information to others as described in the Code. We may disclose your tax information to the Department of Justice for civil \nand criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths and possessions to administer their tax laws. We \nmay also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or \nto federal law enforcement and intelligence agencies to combat terrorism. \nYou are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a \nvalid OMB control number. Books or records relating to a form or instructions must be retained as long as their contents may become material \nin the administration of any Internal Revenue law. The time needed to complete and file this form will vary depending on individual \ncircumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0364 and is included \nin the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is \nshown below. \nRecordkeeping: 5 min. \nLearning about the law or the form: 4 min. \nPreparing the form: 4 min. \nCopying, assembling, and sending the form: 2 min. \nIf you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear \nfrom you. You can send your comments to www.irs.gov/formspubs Click on “More Information” and then click on “Give us feedback on forms \nand publications”. Or you can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. \nNW, IR-6526, Washington, DC 20224. Do not send Form 4669 to this address. Instead, give Form 4669 to the payor.\n"
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p3833.pdf
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1214 Publ 3833 (PDF)
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https://www.irs.gov/pub/irs-pdf/p3833.pdf
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[
"Tax Exempt and Government Entities\nEXEMPT ORGANIZATIONS\nD I S A S T E RRelief\n,\nP R O V I D I N G \n\nA S S I S T A N C E \n\nT H R O U G H \n\nC H A R I T A B L E \n\nO R G A N I Z A T I O N S\n,\n",
"ii\nT A B L E o f\n,\nContents\nHelping Through an Existing Charitable Organization, . . . . . . . . . . . . . . . . . . . . 3,\nFederal Tax Law, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,\nState Law Considerations, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,\nEstablishing a New Charitable Organization, \n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,\nApplying for Tax-Exempt Status, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,\nEmployee Identification Number (EIN), \n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,\nExpedited Processing of Applications for Exemption, \n. . . . . . . . . . . . . . . . . . . . . . . . . . 5,\nPublic Charity vs. Private Foundation, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,\nHow Charitable Organizations Help Victims, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,\nAid to Individuals, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,\nAid to Businesses, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,\nCharitable Class, \n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,\nNeedy or Distressed Test, \n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,\nNo Automatic Right to Charity Aid,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,\nShort-Term and Long-Term Assistance, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,\nDocumentation, \n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,\nDocumentation of Short-Term Emergency Aid, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,\nReporting, \n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,\nIncome Tax Treatment of Qualified Disaster Payments, . . . . . . . . . . . . . . . . . . . . . . 14,\nEmployer-Sponsored Assistance Programs, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,\nEmployer-Sponsored Public Charities, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,\nEmployer-Sponsored Donor Advised Funds, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,\nEmployer-Sponsored Private Foundations, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,\n",
"iii\nSpecial Tax Rules for Recipients of Disaster Relief Assistance, \n. . . . . . . 20,\nCharitable Organizations, \n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,\nFederal and State Government, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,\nDirect Assistance from Employers and Other Sources, . . . . . . . . . . . . . . . . . . . . . . . 21,\nGifts and Charitable Contribution Rules, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,\nCharitable Contributions, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,\nForeign Contributions, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,\nGifts, \n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,\nAdditional Help on Disaster-Related Topics, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,\nForms and Publications, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,\nTelephone Assistance, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,\n",
"1\nD I S A S T E RRelief\n,\nP R O V I D I N G A S S I S T A N C E \n \nT H R O U G H C H A R I T A B L E O R G A N I Z A T I O N S ,\nThis publication is for people interested in assisting victims of disasters or those in \nemergency hardship situations through tax-exempt charities. Charitable organizations \nhave traditionally been involved in assisting victims of disasters such as floods, fires, riots, \nstorms or similar large-scale events. Charities also play an important role in helping those \nin need because of a sudden illness, death, accident, violent crime or other emergency \nhardship. This publication includes:\nn advice about helping to provide relief through an existing charitable organization,\nn information about establishing a new charitable organization,\nn guidance about how charitable organizations can help victims,\nn documentation and reporting requirements,\nn guidance about employer-sponsored assistance programs,\nn information about tax treatment of disaster relief payments,\nn information about gifts and charitable contribution rules, and\nn reference materials and taxpayer assistance resources.\nBy using this publication as you begin to plan your relief efforts, you will be able to ensure \nthat your program will assist victims in ways that are consistent with the federal tax rules \nthat apply to charities.\n",
"2\nProviding aid to relieve human suffering caused by a natural or civil disaster or an emergency \nhardship is charity in its most basic form. Charitable organizations, including churches, are \nfrequently able to administer relief programs more efficiently than individuals acting on their \nown. Charitable organizations can continue to offer assistance over long periods. Even if the \ncharity later dissolves, its remaining assets are permanently dedicated to accomplishing charita-\nble purposes and cannot be divided among the organization’s members, directors or employees.\nOf course, there are tax advantages when a tax-exempt charitable organization provides relief. \nIf an organization is exempt from federal income tax, it can use more of its resources to further \nits mission. Contributors to qualified charitable organizations may be eligible to claim tax \ndeductions for their donations, and the value of these contributions is not subject to gift tax, \nregardless of the amount. Also, individuals receiving assistance are not generally subject to \nfederal tax on the value of assistance they receive from a charity to meet their personal needs.\n",
"3\nH E L P I N G T H R O U G H A N E X I S T I N G \nC H A R I T A B L E O R G A N I Z A T I O N ,\nWhen a tragic event occurs there is often an overwhelming desire on the part of the community \nto come to the aid of the victims. In the immediate aftermath of a disaster or emergency, those \nwho wish to provide help may overlook existing charities and spend precious time and resources \nestablishing a new charitable organization and applying for tax-exempt status.\nAs an alternative, it may be more practical to combine resources with an existing charity to \nprovide immediate relief, or see whether an existing charity operating in a related area may be \ninterested in establishing a special program to address a particular disaster or emergency hard\nship situation. For instance, a community fund like the United Way, a religious organization like \nthe Salvation Army, or a relief organization like the Red Cross are all existing organizations \nwhich have provided targeted disaster relief and emergency hardship assistance in response to \nnatural and civil disasters and other unforeseen emergencies. Community-based organizations \nand charities with a local presence often know best what assistance is needed and understand \nthe social and cultural context of a disaster. Working with and supporting these existing \norganizations may prove to be a more efficient use of disaster relief resources.\nFurthermore, even if a charity was not specifically organized to provide disaster relief and such \nactivities were not specified in its application for exemption, an existing recognized charity may \nengage in disaster relief activities without obtaining prior permission from the IRS. However, \nit must report this new activity on its annual return and may wish to report a change in its \nactivities to the IRS Exempt Organizations Determinations Office.\nF E D E R A L TA X L A W ,\nUnder federal law, an existing qualified charity generally must be given full control and \nauthority over the use of donated funds, and contributors may not earmark funds for the \nbenefit of a particular individual or family. Contributions to qualified charities may, however, \nbe earmarked for flood relief, hurricane relief or other disaster relief.\nS TAT E L A W C O N S I D E R AT I O N S ,\nSome contributors are reluctant to contribute to an existing umbrella organization with many \nprograms. They are concerned that their donations will not be spent directly to serve the \nvictims of the particular emergency they wish to help, and instead, will be applied to other \norganizational expenses.\nTo address these concerns, many state and local authorities that regulate charitable solicitation \nrules have imposed regulations that provide that, if a charity represents that funds will be used \nfor the relief of the victims of a particular disaster, the funds may not be used for other programs \nof the organization. Charitable organizations and contributors should be aware of the solicitation \nrules that may apply in their particular jurisdiction.\n",
"4\nE S T A B L I S H I N G A N E W \nC H A R I T A B L E O R G A N I Z A T I O N ,\nWhen no existing charity appears to have the capability to carry out an effective disaster relief \nor emergency hardship program, or when the potential organizers of the charity have long-term \ngoals extending beyond the immediate crisis, it may be appropriate to consider establishing a \nnew charitable organization. An organization qualifies as an exempt charitable organization if it \nis organized and operated exclusively for charitable purposes, serves public rather than private \ninterests, and refrains from participating or intervening in any political campaign or engaging in \nsubstantial amounts of lobbying activity.\nA P P LY I N G F O R TA X - E X E M P T S TAT U S ,\nGenerally, a new charitable organization with actual or anticipated annual gross receipts in \nexcess of $5,000 must submit an application for exemption and be recognized as tax exempt by \nthe IRS. There are exceptions to this general rule. Churches, synagogues, temples, and mosques \nmay, but are not required to, apply for tax-exempt status from the IRS.\nYou may wish to consult the IRS website at www.irs.gov and review the following IRS resources \nwhen establishing a charitable organization:\nLife Cycle of a Public Charity/Private Foundation,\nThese life cycles, which can be accessed at www.irs.gov/charities, contain links to helpful infor\nmation about points of intersection between disaster relief organizations and the IRS, including \naccess to explanatory information and forms that organizations may need to file with the IRS.\nPublication 4220, Applying for 501(c)(3) Tax-Exempt Status,\nThis publication provides information about eligibility for section 501(c)(3) status, how to apply \nfor tax-exempt status, and the responsibilities of section 501(c)(3) organizations.\nForm 1023, Application for Recognition of Exemption \nUnder Section 501(c)(3) of the Internal Revenue Code,\nApplicants for tax-exempt status under section 501(c)(3) generally must file Form 1023.\nForm 1023-EZ, Streamlined Application for Recognition of Exemption \nUnder Section 501(c)(3) of the Internal Revenue Code ,\nOrganizations with annual revenues of $50,000 or less and assets of $200,000 or less may \nfile the interactive Form 1023-EZ. It’s three pages and must be filed online. An organization \nnot eligible to file Form 1023-EZ must use Form 1023. \nPublication 557, Tax-Exempt Status for Your Organization,\nThis publication describes basic requirements to qualify as a tax-exempt charitable organization \nand the application process.\n",
"5\nE M P L O Y E E I D E N T I F I C AT I O N N U M B E R ( E I N ) ,\nAn organization must obtain an employer identification number before it applies for tax-exempt \nstatus. An EIN is an organization’s account number with the IRS. It should be used on all corre\nspondence with the IRS and must be entered on application forms as well as annual information \nand tax returns.\nYou can apply for an EIN:\nn Online by clicking on the Employer ID Numbers link at Tax Information For Businesses. \nThe EIN is issued immediately once the application information is validated. (Certain \norganizations, including those with a foreign address and certain limited liability companies \nmay not file online.) This is the preferred application method.\nn By telephone at (800) 829-4933. International applicants must call (267) 941-1099. An assistor \nwill provide the number to an authorized party by phone.\nn By faxing or mailing a completed Form SS-4, Application for Employer Identification Number, \nto the fax numbers or address specified in the form instructions. The form and instructions are \navailable on www.irs.gov or by calling (800) 829-3676.\nIf you have already applied for an EIN and have not yet received it, or you are not sure \nwhether you have an EIN, call our toll-free customer account services number, (877) 829-5500, \nfor assistance.\nE X P E D I T E D P R O C E S S I N G O F \nA P P L I C AT I O N S F O R E X E M P T I O N , \nNormally, a Form 1023 is processed in order based upon the date it is received; however, a \nnew disaster relief or emergency hardship organization may request expedited handling of its \napplication. An organization should only request expedited handling of its application if there is \na compelling reason for the IRS to approve such a request. An application will not be expedited \nsimply because the organization may serve disaster victims. The organization must demonstrate \nthat it is meeting an immediate need of disaster relief or emergency hardship victims and that \nits ability to provide immediate assistance to such victims will be adversely impacted in a \nmaterial way if the application is not reviewed expeditiously. Requests for expedited handling \nare infrequently approved, and even if consideration of the application is expedited, there is \nno guarantee that tax-exempt status will be granted.\nThe request for expedited processing should accompany the application and user fee, \nand should include:\nn a compelling reason to process the application ahead of others,\nn a brief description of the disaster and details of how the organization will provide relief,\nn an explanation of the immediate need for the specific disaster relief services the \norganization provides,\n",
"6\nn a description of any pending grants, including information about the grantor and the \namount or property to be received,\nn an explanation of how the loss of the grant(s) might impact the organization’s ability \nto operate and provide relief,\nn a description of any significant business emergency (such as an impending deadline \nimposed by a court or government agency) demonstrating that the business emergency \nwill significantly impact the applicant’s ability to operate and explaining how expediting \nthe application will enable the applicant to avoid the emergency,\nn a statement explaining any other anticipated consequences should the expedited\n processing be denied, and ,\nn the date an exemption letter is required, if applicable.\nThe following examples demonstrate the types of situations in which a request for the \nexpeditious handling of an application for exemption would be appropriate or inappropriate.\nE X A M P L E,\nAn organization has a matching grant pending that would double the \nfunds it has available to provide immediate counseling for children \ndirectly affected by an earthquake. The organization can only receive the \nfunds if it can prove that it is exempt under section 501(c)(3). Expediting \nthe processing of the application under these circumstances is appropri\nate because the organization would otherwise lose this significant grant \nmoney that is to be used to provide counseling to children at a time \nwhen they most need it.\nE X A M P L E,\nAn organization plans to raise funds to be used to erect a monument to \nvictims of a plane crash. Certain businesses and members of the general \npublic have expressed interest in contributing to the project; however, \nthere are no firm commitments for funding. While the organization intends \nto honor disaster victims, it is not providing disaster relief. Furthermore, \nthere is no evidence that there are any significant grants pending or \nany other business reason to expedite consideration of the application. \nExpedited treatment of the application would not be appropriate.\n",
"7\nP U B L I C C H A R I T Y V S . P R I V A T E F O U N D A T I O N ,\nEvery exempt charitable organization is classified as either a public charity or a private \nfoundation. Generally, organizations that are classified as public charities are those that:\nn are churches, hospitals, schools, and qualified medical research organizations affiliated with \nhospitals, schools, colleges and universities;\nn have an active fundraising program and normally receive a substantial part of their support in \nthe form of contributions from publicly supported organizations, governmental units, and/or \nfrom the general public;\nn normally receive not more than one-third of their support from the sum of gross investment \nincome and the excess (if any) of unrelated business taxable income over the tax imposed on \nthat income; and normally receive more than one-third of their support from contributions, \nmembership fees, and gross receipts from activities related to their exempt functions; and\nn support other public charities.\nBecause public charities typically solicit funds from the general public and are generally \nsubject to more public scrutiny and oversight in their daily operations, they are less restricted \nin the type of disaster assistance and emergency hardship relief they may provide than private \nfoundations. See Employer-Sponsored Assistance Programs, page 15. \nPrivate foundations, in contrast, typically have a single major source of funding (usually gifts \nfrom one family or corporation), rather than funding from many sources. Many have as their \nprimary activity the making of grants to other charitable organizations and individuals, rather \nthan the direct operation of a charitable program.\nClassification as a public charity or private foundation is important because different tax rules \napply to the operations of each. Deductibility of contributions to a private foundation is more \nlimited than deductibility of contributions to a public charity. In addition, private foundations \nare subject to excise taxes, including taxes on acts of self-dealing. For example, it is self-dealing \nif the income or assets of a private foundation are used by or for the benefit of a substantial \ncontributor to the foundation or a person in control of the foundation, and the benefit is not \nincidental or tenuous.\nPublication 557, Tax-Exempt Status for Your Organization, explains some of the distinctions \nbetween public charities and private foundations. See also the Life Cycle of a Public Charity \nand the Life Cycle of a Private Foundation at www.irs.gov/charities. \n",
"8\nH O W C H A R I T A B L E O R G A N I Z A T I O N S \nH E L P V I C T I M S ,\nCharitable organizations can serve disaster victims and those facing emergency hardship \nsituations in a variety of ways.\nA I D T O I N D I V I D U A L S , \nOrganizations may provide assistance in the form of funds, services, or goods to ensure \nthat victims have the basic necessities, such as food, clothing, housing (including repairs), \ntransportation, and medical assistance (including psychological counseling). The type of aid \nthat is appropriate depends on the individual’s needs and resources. Disaster relief organiza-\ntions are generally in the best position to determine the type of assistance that is appropriate.\nFor example, immediately following a devastating flood, a family may be in need of food, \nclothing, and shelter, regardless of their financial resources. However, they may not require \nlong-term assistance if they have adequate financial resources. Individuals who are financially \nneedy or otherwise distressed are appropriate recipients of charity. Financial need and/or \ndistress may arise through a variety of circumstances. Examples include individuals who are:\nn temporarily in need of food or shelter when stranded, injured, or lost because of a disaster;\nn temporarily unable to be self-sufficient as a result of a sudden and severe personal or family \ncrisis, such as victims of violent crimes or physical abuse;\nn in need of long-term assistance with housing, childcare, or educational expenses because of a \ndisaster; and,\nn in need of counseling because of trauma experienced as a result of a disaster or a violent crime.\nA I D T O B U S I N E S S E S ,\nDisaster assistance may also be provided to businesses to achieve the following charitable \npurposes:\nn to aid individual business owners who are financially needy or otherwise distressed, \nn to combat community deterioration, and,\nn to lessen the burdens of government.\nAn exempt charity can accomplish a charitable purpose by providing disaster assistance to \na business if:\nn the assistance is a reasonable means of accomplishing a charitable purpose, and,\nn any benefit to a private interest is incidental to the accomplishment of a charitable purpose.\n",
"9\nOnce a damaged business has been restored to viability or a newly attracted business is \nself-supporting, further assistance from a charity is no longer appropriate. Charities that aid \nbusinesses should have criteria and procedures in place to determine when aid should be \noffered and discontinued.\nE X A M P L E,\nAs a result of a tornado, the central business district of a community is \nseverely damaged. Because of the devastation, the area has become \nblighted. No single business wants to begin restoration efforts until \nit can be assured that the whole business district will be restored. A \ncharity may provide funds to begin rebuilding the infrastructure of the \ndistrict, such as roads, sidewalks, parks, sewers and power lines. This \ntype of assistance would accomplish a charitable purpose by combating \ncommunity deterioration. Any benefit to the business is incidental to the \npublic purpose accomplished by the charity’s program of assistance to \nthe community.\nC H A R I TA B L E C L A S S ,\nThe group of individuals that may properly receive assistance from a tax-exempt charitable \norganization is called a “charitable class.”\nA charitable class must be large enough or sufficiently indefinite that the community as a \nwhole, rather than a pre-selected group of people, benefits when a charity provides assistance. \nFor example, a charitable class could consist of all the individuals in a city, county or state. \nThis charitable class is large enough that the potential beneficiaries cannot be individually \nidentified and providing benefits to this group would benefit the entire community.\nIf the group of eligible beneficiaries is limited to a smaller group, such as the employees of \na particular employer, the group of persons eligible for assistance must be indefinite. To be \nconsidered to benefit an indefinite class, the proposed relief program must be open-ended and \ninclude employees affected by the current disaster and those who may be affected by a future \ndisaster. Accordingly, if a charity follows a policy of assisting employees who are victims of all \ndisasters, present or future, it would be providing assistance to an indefinite charitable class. If \nthe facts and circumstances indicate that a newly established disaster relief program is intend\ned to benefit only victims of a current disaster without any intention to provide for victims of \nfuture disasters, the organization would not be considered to be benefiting a charitable class.\n",
"10\nBecause of the requirement that exempt organizations must serve a charitable class, a tax-\nexempt disaster relief or emergency hardship organization cannot target and limit its assistance \nto specific individuals, such as a few persons injured in a particular fire. Similarly, donors \ncannot earmark contributions to a charitable organization for a particular individual or family.\nE X A M P L E,\nLinda’s baby, Todd, suffers severe burns in a fire requiring costly \ntreatment that Linda cannot afford. Linda’s friends and co-workers \nform the Todd Foundation to raise funds from fellow workers, family \nmembers, and the general public to meet Todd’s expenses. Because \nthe organization is formed to assist a particular individual, it would \nnot qualify as a charitable organization.\nConsider this alternative case: Linda’s friends and co-workers form an \norganization to raise funds to meet the expenses of an open-ended \ngroup consisting of all children in the community injured by disasters \nwhere financial help is needed. Neither Linda nor members of Linda’s \nfamily control the charitable organization. The organization controls \nthe selection of aid recipients and determines whether any assistance \nshould be provided to Todd. Potential donors are advised that, while \nfunds may be used to assist Todd, their contributions might well be \nused for other children who have similar needs. The organization \ndoes not accept contributions specifically earmarked for Todd or any \nother individual. The organization, formed and operated to assist an \nindefinite number of current and future disaster victims, qualifies as \na charitable organization.\nSee the example in the section on Gifts and Charitable Contribution \nRules, page 24, for a situation where providing disaster assistance \napart from a qualified charity is desirable.\nE X A M P L E,\nA hurricane causes widespread damage to property and loss of life in \nseveral counties of a coastal state. Over 100,000 homes are damaged or \ndestroyed by high winds and flooding. The group of people affected by \nthe disaster is large enough that providing aid to this group benefits the \npublic as a whole. Therefore, a charitable organization can be formed \nto assist persons in this group since the eligible recipients comprise a \ncharitable class.\n",
"11\nE X A M P L E,\nA hurricane causes widespread damage to property and loss of life in \nseveral counties of a coastal state. In one of the affected counties, an \nexisting charitable organization has an ongoing program that provides \nemergency assistance to residents of the county. A small number of \nresidents of this county suffered significant injury or property damage \nas a result of the storm. The organization provided assistance to some \nof these individuals. The organization’s assistance was provided to a \ncharitable class because the group of potential recipients is indefinite \nin that it is open-ended to include other victims of future disasters in \nthe county.\nN E E D Y O R D I S T R E S S E D T E S T,\nGenerally, a disaster relief or emergency hardship organization must make a specific \nassessment that a recipient of aid is financially or otherwise in need. Individuals do not \nhave to be totally destitute to be financially needy; they may merely lack the resources to \nobtain basic necessities. Under established rules, charitable funds cannot be distributed to \nindividuals merely because they are victims of a disaster. Therefore, an organization’s \ndecision about how its funds will be distributed must be based on an objective evaluation \nof the victims’ needs at the time the grant is made. The scope of the assessment required \nto support the need for assistance may vary depending upon the circumstances.\nA charity may provide crisis counseling, rescue services, or emergency aid such as blankets \nor hot meals in the immediate aftermath of a disaster without a showing of financial need. \nProviding such services to the distressed in the immediate aftermath of a disaster serves a \ncharitable purpose regardless of the financial condition of the recipients. However, as time \ngoes on and people are able to call upon their individual resources, it may become increasingly \nappropriate for charities to conduct individual financial needs assessments. For example, if a \ncharity intends to provide three to six months of financial assistance to families to pay for \nbasic housing because of a disaster or emergency hardship, it would be required to make \nan assessment of financial need before disbursing aid. While those who may not have the \nresources to meet basic living needs may be entitled to such assistance, those who do not \nneed continued assistance should not use charitable resources.\nN O A U T O M AT I C R I G H T T O C H A R I T Y A I D ,\nAn individual who is eligible for assistance because the individual is a victim of a disaster \nor emergency hardship has no automatic right to a charity’s funds. For example, a charitable \n",
"12\norganization that provides disaster or emergency hardship relief does not have to make an \nindividual whole, such as by rebuilding the individual’s uninsured home destroyed by a flood, \nor replacing an individual’s income after the person becomes unemployed as the result of a \ncivil disturbance. This issue is especially relevant when the volume of contributions received \nin response to appeals exceeds the immediate needs. A charitable organization is responsible \nfor taking into account the charitable purposes for which it was formed, the public benefit of \nits activities, and the specific needs and resources of each victim when using its discretion \nto distribute its funds.\nS H O R T - T E R M A N D L O N G - T E R M A S S I S TA N C E ,\nOften charitable organizations (or programs of existing charities) are established as a result \nof a particular disaster where both short-term and long-term assistance might be required. \nThe following types of assistance, if based on individual need, would be consistent with \ncharitable purposes:\nn assistance to allow a surviving spouse with young children to remain at home with the \nchildren to maintain the psychological well-being of the family,\nn assistance with elementary and secondary school tuition and higher education costs to \npermit a child to attend school,\nn assistance with rent, mortgage payments or car loans to prevent loss of a primary home or \ntransportation that would cause additional trauma to families already suffering, and,\nn travel costs for family members to attend funerals and to provide comfort to survivors.\nE X A M P L E,\nA group of individuals is killed in a fire in a large office complex. A \ncharitable organization was previously formed to assist needy individuals \nin the surrounding region. The charity determines that some victims’ \nspouses and dependents lack adequate resources to meet immediate \nbasic needs; others have resources to meet these needs, but will likely \nhave a continuing need for counseling, medical, housing, childcare and \neducation expenses. In this circumstance, the organization can grant \nfunds to assist in meeting current and continuing needs. The organiza\ntion can also set aside funds for possible future needs. However, when \npayments are made out of the set-aside funds, they must be based on \nneeds of victims’ families that exist at the time the payments are made.\n",
"13\nD O C U M E N T A T I O N ,\nAn organization must maintain adequate records to show that the organization’s payments \nfurther the organization’s charitable purposes and that the victims served are needy or \ndistressed. Charities must also maintain appropriate records to show that they have made \ndistributions to individuals after making appropriate needs assessments based on the \nrecipients’ financial resources and their physical, mental, and emotional well-being. \nGenerally, documentation should include:\nn a complete description of the assistance provided,\nn costs associated with providing the assistance,\nn the purpose for which the aid was given,\nn the charity’s objective criteria for disbursing assistance under each program,\nn how the recipients were selected,\nn the name, address, and amount distributed to each recipient,\nn any relationship between a recipient and officers, directors, or key employees of, or \nsubstantial contributors to, the charitable organization, and,\nn the composition of the selection committee approving the assistance.\nD O C U M E N TAT I O N O F S H O R T - T E R M E M E R G E N C Y A I D ,\nA charitable organization that is distributing short-term emergency assistance would only be \nexpected to maintain records showing the type of assistance provided, criteria for disbursing \nassistance, date, place, estimated number of victims assisted (individual names and address\nes are not required), charitable purpose intended to be accomplished, and the cost of the aid. \nExamples of such short-term emergency aid would include the distribution of blankets, hot \nmeals, electric fans, or coats, hats and gloves. An organization that is distributing longer-term \naid should keep the more-detailed type of records described above.\n",
"14\nR E P O R T I N G ,\nMost public charities and all private foundations are required to file an annual return. Public \ncharities file Form 990, Return of Organization Exempt from Income Tax; Form 990-EZ, Short \nForm Return of Organization Exempt from Income Tax; or Form 990-N, Electronic Notice \n(e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-PF. \nPrivate foundations file Form 990-PF, Return of Private Foundation or Section 4947(a)(1) \nTrust Treated as a Private Foundation.\nIf a public charity carries on disaster relief activities as one of its three largest programs, it \nmust describe the services provided in the Statement of Program Service Accomplishments \non Form 990 or Form 990-EZ. See the form instructions for additional information about \nreporting obligations of public charities with respect to grants or other types of disbursements \nto individuals in connection with disaster relief programs. A public charity also may be required \nto complete Schedule F if it carries out foreign operations, or Schedule I for grants or other \nassistance to individuals.\nSimilarly, if a private foundation carries on disaster relief activities as one of its four largest \nprograms, it must describe the services provided in its summary of direct charitable activities \non Form 990-PF. See the Form 990-PF instructions for further information about reporting \ndisaster relief activities of private foundations such as grants or other types of disbursements \nto individuals.\nFor additional information about the reporting requirements of public charities and private \nfoundations, see the Life Cycle of a Public Charity and the Life Cycle of a Private Foundation \nat www.irs.gov/charities, as well as Publication 4221-PC, Compliance Guide for 501(c)(3) Public \nCharities, and Publication 4221-PF, Compliance Guide for 501(c)(3) Private Foundations.\nI N C O M E TA X T R E AT M E N T O F Q U A L I F I E D D I S A S T E R PAY M E N T S ,\nInternal Revenue Code section 139 provides that qualified disaster relief payments from any \nsource, including employers, reimbursing or paying individuals’ specified expenses in connection \nwith qualified disasters are not taxable as income and are not subject to employment taxes \nor withholding.\n",
"15\nA qualified disaster is defined in section 139 as a disaster that:\nn results from terrorist or military actions,\nn results from an accident involving a common carrier,\nn is a Presidentially declared disaster, or,\nn is an event that the Secretary of the Treasury determines is catastrophic.\nQualified disaster relief payments within the meaning of section 139 include payments \nreceived (regardless of the source) for the following expenses:\nn reasonable and necessary personal, family, living, or funeral expenses incurred as a result \nof a qualified disaster,\nn reasonable and necessary expenses incurred for the repair or rehabilitation of a personal \nresidence due to a qualified disaster (a personal residence can be a rented residence or one \nyou own), and,\nn reasonable and necessary expenses incurred for the repair or replacement of the contents of \na personal residence due to a qualified declared disaster.\nPayments by a federal, state, or local government, or their agencies or instrumentalities, to \npersons affected by a qualified disaster in order to promote general welfare are also considered \nto be qualified disaster relief payments. For purposes of such payments by federal, state, or \nlocal governments, a qualified disaster includes the events listed above, as well as a disaster \ndetermined by a federal, state or local authority to warrant governmental assistance.\nQualified disaster relief payments do not include:\nn payments for expenses otherwise paid for by insurance or other reimbursements, or,\nn income replacement payments, such as payments of lost wages, lost business income, or \nunemployment compensation\nE M P L O Y E R - S P O N S O R E D \nA S S I S T A N C E P R O G R A M S ,\nFrequently, employers fund relief programs through charitable organizations aimed at helping \ntheir employees cope with the consequences of a disaster or personal hardship. As noted above, \nall charitable organizations, including those that provide disaster relief, must demonstrate \nthat they serve a public rather than a private interest and serve a charitable class. In the past, \nemployer-sponsored organizations were considered to enhance employee recruitment and reten\ntion, resulting in private benefit to sponsoring employers. In addition, there were concerns that \n",
"16\nemployers could exercise undue influence over the selection of recipients. For these reasons, \nspecial rules apply to employer-sponsored charities.\nEmployer-sponsored charities sometimes establish emergency hardship funds to help \nemployees who have been the victims of crime or a personal loss such as a fire or a sudden \ndeath in the family.\nNot all employer-sponsored charitable organizations are permitted to provide assistance \nto employees and their families in any type of emergency hardship situations. The types \nof benefits a charitable organization can provide through an employer-sponsored assistance \nprogram depend on whether the employer-sponsored organization is a public charity, a donor \nadvised fund or a private foundation. When an employer-sponsored organization provides \nassistance to employees, certain limitations apply that help to ensure that such aid does not \nresult in impermissible private benefit to the employer.\nE M P L O Y E R - S P O N S O R E D P U B L I C C H A R I T I E S ,\nBecause public charities typically receive broad financial support from the general public, \ntheir operations are generally more transparent and are subject to greater public scrutiny. \nAccordingly, public charities may provide a broader range of assistance to employees than \ncan be provided by donor advised funds or private foundations. An employer can establish an \nemployer-sponsored public charity to provide assistance programs to respond to any type of \ndisaster or employee emergency hardship situations, as long as the related employer does not \nexercise excessive control over the organization. Generally, employees contribute to the public \ncharity and rank and file employees constitute a significant portion of the board of directors.\nTo ensure the program is not impermissibly serving the related employer, the following \nrequirements must be met:\nn the class of beneficiaries must be large or indefinite (a “charitable class”),\nn the recipients must be selected based on an objective determination of need, and,\nn the recipients must be selected by an independent selection committee or adequate substitute \nprocedures must be in place to ensure that any benefit to the employer is incidental and ten\nuous. The charity’s selection committee is independent if a majority of the members of the \ncommittee consists of persons who are not in a position to exercise substantial influence over \nthe affairs of the employer.\nIf these requirements are met, the public charity’s payments to the employer-sponsor’s \nemployees and their family members in response to a disaster or emergency hardship are \npresumed: (1) to be made for charitable purposes, and (2) not to result in taxable compensation \nto the employees.\n",
"17\nE M P L O Y E R - S P O N S O R E D D O N O R A D V I S E D F U N D S ,\nCertain community foundations and other public charities maintain separate funds or accounts \nto receive contributions from individual donors. These individual donors then receive advisory \nprivileges over investment or distribution of the donated funds.\nIn general, these organizations, known as donor advised funds, can make grants to 501(c)(3) \npublic charities and, under certain conditions, to other organizations for charitable purposes, \nbut cannot make grants to individual persons. However, there is an exception for certain \nemployer-related funds or accounts established to benefit employees and their family members \nwho are victims of a qualified disaster.\nA donor advised fund or account can make grants to employees and their family members in \nthe following circumstances:\nn the fund serves the single identified purpose of providing relief from one or more qualified \ndisasters as defined on page 14 in the discussion of section 139 of the Internal Revenue Code,\nn the fund serves a charitable class,\nn recipients of grants are selected based upon an objective determination of need,\nn the selection of recipients of grants is made using either an independent selection committee \nor adequate substitute procedures to ensure that any benefit to the employer is incidental \nand tenuous (the selection committee is considered independent if a majority of its members \nconsists of persons who are not in a position to exercise substantial influence over the \nemployer’s affairs),\nn no payment is made from the fund to or for the benefit of any director, officer, or trustee of \nthe sponsoring community foundation or public charity, or members of the fund’s selection \ncommittee, and,\nn the fund maintains adequate records to demonstrate the recipients’ need for the disaster \nassistance provided.\nFor a description of the types of records a fund must retain, see the previous section, \nDocumentation, on page 13.\nE M P L O Y E R - S P O N S O R E D P R I V AT E F O U N D AT I O N S ,\nLike public charities, private foundations can make need-based distributions to victims of \ndisasters or to the poor or distressed. However, several issues arise when an employer-sponsored \nprivate foundation provides aid that favors the employees of the sponsoring employer. The IRS \nhas previously ruled that, because the availability of the disaster relief programs aided employ\ners in recruiting and retaining a stable workforce, such programs conferred a significant private \nbenefit on the sponsoring companies. However, after the September 11 attacks, Congress took \nthe position that employer-sponsored private foundations should be able to provide assistance to \nemployees in certain situations.\n",
"18\nAccordingly, employer-sponsored private foundations may provide assistance to employees or \nfamily members affected by a qualified disaster, as defined in section 139 of the Code, as long \nas certain safeguards are in place to ensure that such assistance is serving charitable purposes, \nrather than the business purposes of the employer. Employer-sponsored private foundations can \nonly make payments to employees or their family members affected by qualified disasters, not \nin non-qualified disasters or in emergency hardship situations.\nThe IRS will presume that payments in response to a qualified disaster, as defined above, made \nby a private foundation to employees (or family members of employees) of an employer that is a \ndisqualified person (such as a company that is a substantial contributor) are consistent with the \nfoundation’s charitable purposes if:\nn the class of beneficiaries is large or indefinite (a “charitable class”),\nn the recipients are selected based on an objective determination of need or, and,\nn the selection is made using either an independent selection committee or adequate \nsubstitute procedures to ensure that any benefit to the employer is incidental and tenuous. \nThe foundation’s selection committee is independent if a majority of the members of the \ncommittee consists of persons who are not in a position to exercise substantial influence \nover the affairs of the employer.\nIf the requirements of this presumption are met, the private foundation’s payments in response \nto a qualified disaster are treated as made for charitable purposes; do not result in prohibited \nself-dealing merely because the recipient is an employee (or family member of an employee) of \nthe employer-sponsor; and do not result in taxable compensation to the employees.\nThe presumption described above does not apply to payments that would otherwise constitute \nself-dealing and subject the organization to excise taxes. For example, the presumption does \nnot apply to payments made to (or for the benefit of) individuals who are directors, officers, or \ntrustees of the private foundation or members of the private foundation’s selection committee.\nWhile a private foundation may fail to meet all of the requirements of the presumption, other \nprocedures and standards may be considered to constitute adequate substitutes to ensure that \nany benefit to the employer is incidental and tenuous, when all the facts and circumstances \nare taken into account. Conversely, even though a private foundation meets the presumption, \nthe IRS may still review the facts and circumstances to ensure that any benefit to the employer \nis tenuous and incidental. For example, a program may not be used to induce employees to \nfollow a course of action sought by the employer or designed to relieve the employer of a \nlegal obligation for employee benefits.\n",
"19\n \nE X A M P L E, \nA for-profit company is located in an area of the country designated a \nPresidentially-declared disaster because of hurricane devastation. A \nprivate foundation funded by the company establishes a new program \nto provide assistance to the company’s employees and their immediate \nfamily members who are victims of the current disaster and any future \nqualified disasters. The private foundation’s committee that selects \nrecipients for assistance consists of a majority of members who are \nnot in a position to exercise substantial influence over the affairs of the \ncompany. The foundation provides assistance to the employees and \ntheir families based on an objective determination of need.\nThe foundation’s program does not relieve the company of any legal \nobligation, such as an obligation under a collective bargaining agreement \nor written plan that provides insurance benefits. The company does not \nuse the program to recruit employees to continue their employment, or \nto otherwise follow a course of action sought by the company.\nBecause the foundation serves a charitable class, provides assistance \nbased on an objective determination of need, and has an independent \nselection committee, the IRS will presume that it is carrying out a \ncharitable program. Distributions are neither self-dealing transactions \nbetween the foundation and the employer nor taxable compensation \nto its employees under the program.\nSee the Life Cycle of a Private Foundation at www.irs.gov/charities for information about \nfoundation excise taxes, self-dealing, and disqualified persons.\nFor a description of the types of records a private foundation must retain, see the previous \nsection, Documentation, on page 13.\n",
"20\nS P E C I A L T A X R U L E S F O R R E C I P I E N T S \nO F D I S A S T E R R E L I E F A S S I S T A N C E ,\nThis part of the publication discusses special tax rules that apply to individuals who receive \nassistance from public charities, private foundations, employer-related charitable organizations, \ngovernment entities and other sources in disaster situations.\nGross income, for federal income tax purposes, generally includes all income from whatever \nsource derived, unless a specific exception applies. Whether a payment to a disaster victim \nconstitutes gross income for income tax purposes or compensation subject to employment tax \ndepends, in part, on the source of the payment.\nC H A R I TA B L E O R G A N I Z AT I O N S ,\nPayments that individuals receive under a charitable organization’s program as a result of a \ndisaster or emergency hardship are considered to be gifts and are excluded from gross income of \nrecipients under section 102 of the Code. Payments from an employer-sponsored public charity \nor private foundation are also exempt from gross income as gifts so long as the requirements \ndescribed in Employer-Sponsored Assistance Programs, page 15, are met.\nAn examination of the facts and circumstances surrounding a charity’s payment to a for-profit \nbusiness will govern whether the business can exclude the amount paid from gross income as \na gift under section 102 of the Code. The IRS will evaluate whether the charity intended the \npayment to be a gift, and was motivated by charitable impulses. If the payment was made out \nof a moral or legal obligation, an anticipated economic benefit or in return for services, the \npayment will not be excluded from income as a gift.\nF E D E R A L A N D S TAT E G O V E R N M E N T,\nGenerally, payments that individual disaster victims receive from governmental units under \nsocial programs for the promotion of the general welfare (i.e. based on need) are not included \nin the gross income of the recipients of the payments. In addition, certain payments that indi-\nviduals receive from a state, federal or local government (or agency thereof), in connection \nwith a qualified disaster, as described on page 14, are excluded from the gross income of the \nrecipient under section 139 of the Code. See Direct Assistance from Employers and Other \nSources, page 21, for additional information about the types of payments excluded from \nincome and employment taxes under section 139.\nEX AM\n",
" \n \nE X A M P L E, \nAn area within a state was affected by a hurricane that was a \nPresidentially-declared disaster. The state enacted emergency \nlegislation to provide grants to pay or reimburse medical, temporary \nhousing, and transportation expenses incurred by individuals as a \nresult of the flood that are not compensated by insurance or otherwise. \nPayments received under the state’s grant program are excluded from \nincome under the general welfare exclusion as well as under section \n139 of the Code.\nD I R E C T A S S I S TA N C E F R O M E M P L O Y E R S A N D O T H E R S O U R C E S ,\nIn some instances a corporation or other non-exempt entity may choose to provide direct assis\ntance to disaster victims rather than funneling its assistance through a charity or governmental \nentity. In addition, sometimes an employer may provide assistance through a non-exempt fund \nestablished to receive contributions from the employer as well as employees. In certain circum\nstances, payments from such sources may receive favorable tax treatment as well. As noted on \npage 14, section 139 of the Code provides for special tax treatment of qualified disaster relief \npayments made to victims of a qualified disaster, regardless of the source. Qualified disaster \nrelief payments are not included in the income of recipients to the extent that any expenses cov\nered by these payments are not otherwise compensated by insurance or other reimbursements. \nQualifying payments are not subject to income tax, self-employment tax, or employment taxes \n(Social Security, Medicare, and federal unemployment taxes) even if the payments are made \ndirectly from an employer.\nE X A M P L E, \nA for-profit corporation makes grants to its employees who are \naffected by a flood that was a Presidentially-declared qualified \ndisaster. The grants will pay or reimburse employees for medical, \ntemporary housing, and transportation expenses they incur as a \nresult of the flood that are not compensated by insurance or \notherwise. The corporation will not require individuals to provide \nproof of actual expenses to receive a grant payment. The \ncorporation’s program, however, contains requirements (which\n are described in the program documents) to ensure that the grant \namounts are reasonably expected to be commensurate with the \namount of unreimbursed reasonable and necessary medical, \n21\n",
"22\ntemporary housing, and transportation expenses the corporation’s \nemployees incur as a result of the flood. The grants are not intended \nto indemnify all flood-related losses or to reimburse the cost of non-\nessential, luxury, or decorative items and services. The grants are \navailable to all employees regardless of length or type of service \nwith the corporation.\nThe grants made by the employer are qualified disaster relief payments \nexpected to be commensurate with the unreimbursed reasonable and \nnecessary personal, living or family expenses of the employees not \ncompensated by insurance or otherwise. The grants are excluded from \nthe employees’ gross income under section 139.\nG I F T S A N D C H A R I T A B L E \nC O N T R I B U T I O N R U L E S ,\nThis part of the publication discusses the tax rules that apply to individuals who want to claim \na tax deduction for their contributions to a qualified charitable organization. It also discusses \nthe potential liability of donors for gift tax.\nC H A R I TA B L E C O N T R I B U T I O N S ,\nContributors to qualified domestic charitable organizations may be eligible to claim federal \nincome tax deductions for their contributions if they file itemized tax returns. Qualified \norganizations include charitable organizations that the IRS has determined are exempt \nfrom federal income tax. Churches, synagogues, temples and mosques are also qualified \ncharitable organizations. \nDomestic charitable organizations are those created under the laws of the United States or its \npossessions. For charitable contribution purposes, United States possessions include Puerto \nRico, the U.S. Virgin Islands, Guam, American Samoa and the Commonwealth of Northern \nMariana Islands.\nSee Publication 526, Charitable Contributions, for a complete description of qualified \norganizations.\n",
"23\nBefore making a contribution to an organization for disaster relief, a contributor may want to \nverify whether the contribution would be tax-deductible. A contributor may use the following \nresources to determine if the organization is qualified to accept tax-deductible contributions:\nn Go to EO Select Check on the Charities and Nonprofits home page on the IRS website, \nwww.irs.gov, to access an online database of qualified charitable organizations, or, \nn Call IRS Exempt Organizations Customer Service at (877) 829-5500.\nPotential contributors, like other interested members of the public, may obtain a copy of an \norganization’s exemption application or its recent annual information returns (Form 990, \n990-EZ, 990-PF or 990-N).\nContributors can contact the organization directly or submit Form 4506-A, Request for Public \nInspection or Copy of Exempt Organization IRS Form, to the IRS to receive copies of the \ncompleted forms. Some organizations also post the forms on their website. An organization’s \nForm 990-N may be accessed on the IRS website using EO Select Check.\nA contributor cannot claim a tax deduction for any cash, check, or other monetary contribution \nto a qualified charitable organization made on or after January 1, 2007, unless the donor \nmaintains a record of the contribution in the form of either a bank record (such as a canceled \ncheck) or a written communication from the charity (such as a receipt or a letter) showing the \nname of the charity, the date of the contribution, and the amount of the contribution. For more \ninformation about contributions, see Publication 526, Charitable Contributions.\nIn addition, a donor cannot claim a tax deduction for any single contribution of $250 or more \nunless the donor obtains a contemporaneous acknowledgment of the contribution from the recip\nient organization. For detailed information on what a charity is required to include in written \nacknowledgment statements given to donors, see Publication 1771, Charitable Contributions—\nSubstantiation and Disclosure Requirements.\nF O R E I G N C O N T R I B U T I O N S ,\nContributions to qualified domestic charitable organizations that provide assistance to individuals \nin foreign countries qualify as tax-deductible contributions for federal income tax purposes, \nprovided the U.S. organization has full control and discretion over the uses of such funds. \nIf the contributor is a corporation, its contributions for use in a foreign country are not deductible \nunless the domestic charity is itself organized as a corporation for federal tax purposes.\nContributions to foreign organizations are generally not tax-deductible, unless permitted by a \ntax treaty. The United States currently has tax treaties with Canada, Mexico, and Israel. See \nPublication 526, Charitable Contributions, for limitations that apply pursuant to these treaties.\n.\n",
"24\n \nG I F T S ,\nIndividuals can also help victims of disaster or hardship by making gifts directly to victims. \nThis type of assistance does not qualify as a tax-deductible contribution since a qualified \ncharitable organization is not the recipient. However, individual recipients of gifts are generally \nnot subject to federal income tax on the value of the gift. If you make a gift directly to an \nindividual, you are not subject to federal gift tax unless the total gifts made in a year exceed \nthe annual exclusion amount.\nSometimes providing financial assistance apart from a qualified charity is desirable.\nE X A M P L E, \nJim, a college student and a counselor at a summer camp, accidentally \nrolls his old truck into a lake. The other counselors collect several \nhundred dollars and give the monies directly to Jim to help with the \ndown payment for another truck. Since the counselors are making gifts \nto a particular individual, the use of a qualified charitable organization \nwould not be appropriate. The counselors cannot claim tax deductions \nfor their gifts to Jim. However, Jim is not subject to federal income tax \non the gift amount. The other counselors would not be subject to federal \ngift tax if the total gifts made by each counselor to Jim during the year \ndid not exceed the annual exclusion amount.\nFor more information about the taxability of gifts, see Publication 559, Survivors, Executors, \nand Administrators.\n",
"A D D I T I O N A L H E L P O N \nD I S A S T E R - R E L A T E D T O P I C S ,\nThe IRS has a number of forms and publications on disaster relief and tax exemption \nthat may be helpful to your organization.\nF O R M S A N D P U B L I C AT I O N S ,\nTo order free IRS publications and forms, call the IRS at (800) 829-3676. \nDownload IRS publications and forms at www.irs.gov.\nForm 1023, Application for Recognition of Exemption under Section 501(c)(3) \nof the Internal Revenue Code,\nForm 1023-EZ, Streamlined Application for Recognition of Exemption under \nSection 501(c)(3) of the Internal Revenue Code,\nPublication 526, Charitable Contributions,\nPublication 547, Casualties, Disasters, and Thefts,\nPublication 557, Tax-Exempt Status for Your Organization,\nPublication 559, Survivors, Executors, and Administrators,\nPublication 561, Determining the Value of Donated Property,\nPublication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property),\nPublication 584-B, Business Casualty, Disaster, and Theft Loss Workbook,\nPublication 1771, Charitable Contributions—Substantiation and Disclosure Requirements,\nPublication 2194, Disaster Resource Guide for Individuals and Businesses,\nT E L E P H O N E A S S I S TA N C E ,\nThe following telephone numbers will connect you to IRS customer service.\n(877) 829-5500,\t\nIRS Exempt Organizations Customer Account Services,\n\t\nfor tax information specific to exempt organizations,\n(215) 516-2000,\t\nIRS International Customer Service,\n\t\nfor tax information specific to foreign tax issues,\n(800) 829-1040,\t\nIRS Customer Service,\n\t\nfor general tax information,\nPublication 3833 (Rev. \n12-2014) Catalog Number 32168V Department of the Treasury Internal Revenue Service www.irs.gov\n"
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p4716esp.pdf
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1014 Publ 4716 (EN-SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/p4716esp.pdf
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[
"Publication 4716 (EN/SP) (Rev. 10-2014) Catalog Number 52123A\nDepartment of the Treasury Internal Revenue Service www.irs.gov\nBe Prepared To Get \nThe EITC You Earned\nLife’s a little easier with\n",
"IF \nyou plan to use a preparer to help you file \na return and claim the EITC or EIC, Earned \nIncome Tax Credit, go prepared with:\n• Valid driver's license or other photo ID card (for you \nand your spouse, if filing a joint return\n• Social Security cards or a Social Security number \nverification letter for all persons listed on the return\n• Birth dates for all persons listed on the return\n• All income statements: Forms W-2 and 1099, Social \nSecurity, unemployment, other statements, such \nas, pensions, stocks, interest and any documents \nshowing taxes withheld. If self-employed or you \nown a business, bring records of all your income\n• All records of expenses, such as, tuition, mortgage \ninterest or real estate taxes. If self-employed or \nyou own a business, bring records of all your \nexpenses\n• Dependent child care information: name and \naddress of who you paid and either the caregiver’s \nSSN or other tax ID number\n• Bank routing numbers and account numbers to \ndirect deposit any refund\n• Copy of last year’s Federal and state tax return if you \nhave them\n• Both spouses to sign forms to e-file your joint tax \nreturn\nYour preparer, whether paid or volunteer, is required to \nask you multiple questions to determine your correct \nincome, expenses, deductions, and credits. Avoid an \naudit, additional tax, penalties or interest by giving your \npreparer all the needed information and answering all \nquestions. Also, your preparer must sign your tax returns \nand use a PTIN, Preparer tax identification number.\nEarned Income Tax Credit\nYOU are responsible for what is on your tax \nreturn. Being ready, with the right documents \nto prepare your return, saves you time and \nreduces the chance of mistakes.\nErrors can delay the EITC part of your refund until it’s fixed. If the \nIRS audits your return and finds the EITC claim incorrect, you must \npay back the amount of EITC you received in error plus interest \nand penalties. You may also have to file Form 8862 for future \nclaims. And, if the IRS finds your incorrect claim was intentional or \nfraudulent, we may ban you from claiming EITC for 2 or 10 years.\n",
"La vida es mejor con el\nPasos que necesita \nseguir para reclamar el \nCrédito Tributario por \nIngreso del Trabajo\nPublication 4716 (EN/SP) (Rev. 10-2014) Catalog Number 52123A\nDepartment of the Treasury Internal Revenue Service www.irs.gov\n",
"Si \npiensa utilizar a un preparador para que éste le ayude a \npresentar una declaración y reclamar el Crédito Tributario \npor Ingreso del Trabajo (EITC o EIC, por sus siglas en inglés), \nnecesita traer ciertos documentos. Estos documentos incluyen:\n• Licencia de conducir o identificación con foto válida (la suya y la \nde su cónyuge, si presentan una declaración conjunta)\n• Tarjetas Seguro Social, o una carta verificando el número de \nSeguro Social de todas las personas anotadas en la declaración\n• Fechas de nacimiento de todas las personas anotadas en la \ndeclaración\n• Todos los informes de ingresos: Formularios W-2, Formularios \n1099, informes de beneficios de seguro social, desempleo, \notros informes, tales como informes sobre pensiones, acciones, \nintereses y todo documento que muestre impuestos retenidos. Si \ntrabaja por cuenta propia o si es dueño de un negocio, traiga \nlos registros relacionados con todos sus ingresos.\n• Todos los registros relacionados con gastos, tales como, gastos \npor matrícula, intereses hipotecarios o impuestos sobre bienes \nraíces. Si trabaja por cuenta propia o si es dueño de un \nnegocio, traiga los registros relacionados con todos sus gastos.\n• Información sobre el cuidado de hijos dependientes: nombre, \ndirección y número de seguro social (SSN, por sus siglas en \ninglés) o número de identificación de contribuyente (TIN, por sus \nsiglas en inglés) de la persona a quien usted pagó\n• Sus números de ruta y de cuenta bancaria para poder efectuar el \ndepósito directo de cualquier reembolso\n• Una copia de la declaración de impuestos federales y estatales \ndel año anterior, si las tiene disponibles\n• Ambos cónyuges deben estar presentes para firmar los \nformularios y presentar su declaración conjunta electrónicamente\nA su preparador de impuestos, ya sea remunerado o voluntario, \nse le requiere que le haga varias preguntas a usted para así poder \ndeterminar cuáles son sus ingresos, gastos, deducciones y créditos \ncorrectos. Evite una auditoría, impuestos adicionales, multas o \nintereses proporcionándole a su preparador toda la información \nnecesaria y contestándole todas las preguntas que le hagan. Además, \nse le requiere al preparador firmar sus declaraciones de impuestos, y \na anotar su número de identificación del preparador, o PTIN, por sus \nsiglas en inglés.\nCrédito Tributario por Ingreso del Trabajo\nUSTED es responsable por la información que aparece \nen su declaración de impuestos. El tener listo los \ndocumentos correctos para preparar su declaración, le \nahorrará tiempo y disminuirá la probabilidad de cometer \nerrores.\nSi hay errores, la parte de su reembolso que corresponde al EITC \npodría ser demorada hasta que corrija dichos errores. Si el IRS le \naudita la declaración y encuentra que la reclamación del EITC es \nincorrecta, usted tendrá que reintegrarles la cantidad que recibió \ndel EITC por el error, más multas e intereses. Puede que también \nle obliguen a presentar el Formulario 8862 cuando reclame este \ncredito en el futuro. Además, si el IRS encuentra que su reclamación \nincorrecta fue hecha de manera intencional o fraudulenta, podríamos \nprohibirle de reclamar el EITC durante 2 a 10 años.\n"
] |
p4808.pdf
|
1014 Publ 4808 (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4808.pdf
|
[
"Disability and EITC\nMany persons with disabilities or persons having \nchildren with disabilities qualify for the Earned \nIncome Tax Credit, EITC or EIC.\nFour out of five persons eligible for EITC apply for and \nget the credit. Be one of the four who get it. Learn \nmore about EITC to find out if you qualify for this \nimportant financial boost. And, remember you must \nfile a tax return even if you owe no tax to claim EITC.\nFind out if you qualify for EITC.\nwww.irs.gov/eitc\nLife’s a little easier with\nEITC and other Public Benefits\nRefunds received from Earned Income Tax \nCredit (EITC or EIC), Child Tax Credit (CTC) \nor any other tax credit are not considered \nincome for any federal or federally funded \npublic benefit program. This includes food \nstamps, most TANF (Temporary Assistance \nfor Needy Families)payments, Medicaid, \nSSI (Supplemental Security Income), low \nincome housing and other Federal and \nstate assistance programs.\nIf you save your tax refund or credit \nfor more than 12 months, contact your \nstate, tribal or local government benefit \ncoordinator to find out if your benefits \ncount as assets.\nPublication 4808 (Rev. 10-2014) Catalog Number 53829F\nDepartment of the Treasury Internal Revenue Service www.irs.gov\nFind out if you qualify for \nEITC, ask your tax return \npreparer or visit\nwww.irs.gov/eitc\n",
"Find out if you qualify for EITC, ask your tax return preparer or visit www.irs.gov/eitc\nDid you know?\nIf you have disability retirement benefits and have \nnot reached your minimum retirement age, your \nbenefits may count as earned income for EITC. \nYou may qualify for EITC if you meet all other \nrequirements. Minimum retirement age is the \nearliest age you could have received a pension or \nannuity if you were not disabled.\nYou may claim a relative of any age as your \nqualifying child if the person is totally and \npermanently disabled and your relative and you \nmeet all other EITC requirements.\nThe tax law definition of totally and permanently \ndisabled is:\nThe person cannot engage in any substantial \ngainful activity because of a physical or mental \ncondition.\nA doctor determines the condition has lasted or \nthe doctor expects it to last continuously for at \nleast a year or lead to death.\nWhat does this mean to you?\nYou retired last year because of a disability and \nreceived $12,000 in retirement benefits. You are \n42 years old and worked for your company for \n15 years. The earliest age your company pays \nretirement benefits is 55 years old with 30 years of \nservice. If you meet all the other EITC requirements, \nyou can use your disability retirement benefits \nas earned income and claim EITC. Find out if you \nqualify!\nYou have a relative with a disability who is 35 years \nold who earned $3,200 working in a supported \nemployment program. Your relative who was never \nmarried was born with a developmental disability \nand lived with you in the United States for the full \nyear. This relative could be your qualifying child for \nEITC. Find out if you qualify!\nFor Example:\nDavid wants to claim his son Charlie for EITC. David earned $14,500 and had no other income. Charlie is 35 years \nold, was never married and his father says he is disabled. Charlie lived with his father in the U.S. for the full year \nand no one else lived in the home. Charlie’s mother is deceased. Both have Social Security numbers valid for \nemployment. Charlie worked for part of the year and earned $5,200.\nWhat do we need to know to find out if David qualifies for EITC?\nIs Charlie able to work?\nHas a doctor determined Charlie is disabled?\nDid the doctor say how long Charlie’s disability will last?\nCan David get a statement from Charlie’s doctor about his disability?\nWe find out Charlie had an accident last May and sustained a disability from his injuries. His doctor said \nhe is totally and permanently disabled, not able to work and the doctor does not expect Charlie to recover.\nDavid can claim EITC using Charlie as his qualifying child because his doctor determined he \ncannot work because of his disability and his disability will last longer than a year.\nWe find out Charlie had an accident last May and sustained a disability from his injuries. Charlie’s recovery \nis good and his doctor expects him to return to work this coming March.\nCharlie is not David’s qualifying child because his disability is not expected to last a full year.\nTake 1\nTake 2\n"
] |
p4003.pdf
|
1114 Publ 4003 (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4003.pdf
|
[
"Designed to keep Tax Professionals informed of issues and events \nalmost the very moment they occur… 24/7.\n \nQuickAlerts\nMessaging System,\nHow Do You Receive Messages? \nOnce you have subscribed to the QuickAlerts \nMessaging System, you will begin to receive \nQuickAlerts email in the categories you have \nchosen.\nWhat are the Benefits?\nThis is a FREE SERVICE with options and \nconvenience all rolled into one single package. \nIt provides important information, year round, \nuntil you unsubscribe.\nFive QuickAlerts message categories provide \nthe information that is certain to enhance your \nfiling season. \nAlerts – Processing delays, programming \nproblems, changes to any filing season \nprocedures, Error Reject Code and Business \nRules information. \nTechnical – Schema information and ATS \nsoftware testing\nAIR General – Affordable Care Act Infor-\nmation Return (AIR) Messages – Electronic \nspecifications, publications, and system \ninformation needed for Issuers/Payers, \nTransmitters and Software Developers to \ntransmit Forms 1094-B, 1095-B, 1094-C, and \n1095-C to IRS.\nGeneral Notifications – Seminars, \nconferences, e-file publication changes. \nGeneral IRS e-file Service Center \nMessages – IRS e-file program updates, \ngeneral information, Service Center mainte-\nnance schedules, IRS e-file Help Desk \nphone numbers and more.\nChoose the categories that suit your needs, \nthen sit back, relax and let the filing season \nnews come to you through the convenience \nof email. Never miss another important event. \nBe informed of what you need to know… \nwhen you need to know it!\nQuickAlerts is a free online \nmessaging system that sends email, \nwithin seconds, to all subscribers. \nThese messages will keep you up to \ndate on events that affect Authorized \nIRS e-file Providers, as well as Issuers/\nPayers, Transmitters and Software \nDevelopers that will electronically \nfile Affordable Care Act Information \nReturns (AIR). QuickAlerts are \ndesigned to keep Tax Professionals \ninformed on e-file issues, AIR issues \nand events almost the very moment \nthey occur… 24/7.\nNOTE – During the height of the filing season \n(mid January–mid April) responses to email \nsent to [email protected] may be delayed.\nAnother benefit is the QuickAlerts Library. \nThe library stores previously posted \nmessages. So, if you’ve missed any filing \nseason messages, they are easy to retrieve. \nSimply go to www.irs.gov and type the words \n“Quick Alerts Library” into the SEARCH \nbox in the upper right hand corner.\nHow to Subscribe to QuickAlerts,\nThe QuickAlerts subscription process \ncould not be simpler. To subscribe, select \nthis link https://public.govdelivery.com/\naccounts/USIRS/subscriber/new. Just enter \nyour email address and follow the prompts \nuntil you’re able to select the “QuickAlerts” \nsubscription. If you already have an e-News \nfor Tax Professionals subscription, just access \nyour account, select “QuickAlerts” and then \nchoose the categories you want to receive.\nUpdating your \nQuickAlerts Subscription, \nYou may find it necessary to update your \nemail address, the type of alerts you receive, \nor cancel your subscription. At the bottom of \neach QuickAlerts message you receive, you \nwill find a Subscribers Preference Page link. \nSelecting this link will allow you to make any \nnecessary modifications to your QuickAlerts \nsubscription.\nProblems or Questions,\nIssues regarding your receipt of QuickAlerts \nmessages (subscription issues) should be \nreported to [email protected]. If \nyou have other issues you wish to bring to \nour attention, you may send us an email at \[email protected].\nPublication 4003 (Rev. \n11-2014) Catalog Number 34091D Department of the Treasury Internal Revenue Service www.irs.gov\n"
] |
p5176.pdf
|
1114 Publ 5176 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5176.pdf
|
[
"Volunteer Income Tax Assistance (VITA) \n& Tax Counseling for the Elderly (TCE)\nTemplate Toolkit\nThumbnails & Instructions\nVolunteer\nFree Tax Preparation\nP 5176-B\nTax Preparation VITA/TCE\nP 5176\nThumbnails and Instructions\nP 5176-A\nVolunteer\nP 5176-C\nTax Preparation Self-Help\nP 5176-D\nTax Preparation VITA & Self-Help\nVolunteer Income Tax Assistance (VITA) \n& Tax Counseling for the Elderly (TCE)\nTemplate Toolkit\nThumbnails & Instructions\nVolunteer\nFree Tax Preparation\nP 5176-B\nTax Preparation VITA/TCE\nP 5176\nThumbnails and Instructions\nP 5176-A\nVolunteer\nP 5176-C\nTax Preparation Self-Help\nP 5176-D\nTax Preparation VITA & Self-Help\nVolunteer Income Tax Assistance (VITA) \n& Tax Counseling for the Elderly (TCE)\nTemplate Toolkit\nThumbnails & Instructions\nVolunteer\nFree Tax Preparation\nP 5176-B\nTax Preparation VITA/TCE\nP 5176\nThumbnails and Instructions\nP 5176-A\nVolunteer\nP 5176-C\nTax Preparation Self-Help\nP 5176-D\nTax Preparation VITA & Self-Help\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\nTemplate Toolkit\nVolunteer\nFree Tax Preparation\nP 5176-B\nTax Preparation VITA/TCE\nP 5176-A\nVolunteer\nInstructions\nP 5176\nP 5176-C\nTax Preparation Self-Help\nP 5176-E\nTax Preparation VITA & Self-Help\nVolunteer\nLearn valuable skills, then share those skills with your community while \nvolunteering a few hours a week to help prepare tax returns\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nYour help is needed! Make a difference while learning \nand volunteering \nThe Volunteer Income Tax Assistance (VITA) and Tax \nCounseling for the Elderly (TCE) programs are looking for \nvolunteers who are interested in sharing their skills, talent \nand knowledge along with thousands of other Americans \ngiving back to their communities while volunteering to \nprepare tax returns.\nAs a volunteer, you will interact with people who need \nhelp preparing their tax returns at no cost to them. We \nneed volunteers to serve as Instructors, Site Coordinators \nand Tax Preparers. If preparing taxes is not your ideal \nvolunteer assignment we still have a place for you. We \nalso need Greeter/Screeners, Computer specialist and \nInterpreters. \nYou tell us:\nHow much time you can give\nYour current computer skills \nYour current tax law knowledge\nYour desired volunteer position \nWe will provide:\nFree tax law training \nE-file Software training\nAdministrative support\nA great volunteer experience\nIRS Partner\nInterested? Contact us today! Find more details on becoming a VITA/TCE \nVolunteer at: http://www.irs.gov/Individuals/IRS-Tax-Volunteers\nVolunteer\nLearn valuable skills, then share those skills with your community while \nvolunteering a few hours a week to help prepare tax returns\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nYour help is needed! Make a difference while learning \nand volunteering \nThe Volunteer Income Tax Assistance (VITA) and Tax \nCounseling for the Elderly (TCE) programs are looking for \nvolunteers who are interested in sharing their skills, talent \nand knowledge along with thousands of other Americans \ngiving back to their communities while volunteering to \nprepare tax returns.\nAs a volunteer, you will interact with people who need \nhelp preparing their tax returns at no cost to them. We \nneed volunteers to serve as Instructors, Site Coordinators \nand Tax Preparers. If preparing taxes is not your ideal \nvolunteer assignment we still have a place for you. We \nalso need Greeter/Screeners, Computer specialist and \nInterpreters. \nYou tell us:\nHow much time you can give\nYour current computer skills \nYour current tax law knowledge\nYour desired volunteer position \nWe will provide:\nFree tax law training \nE-file Software training\nAdministrative support\nA great volunteer experience\nIRS Partner\nInterested? Contact us today! Find more details on becoming a VITA/TCE \nVolunteer at: http://www.irs.gov/Individuals/IRS-Tax-Volunteers\nFree tax help may be closer than you think\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nVITA/TCE\nOne-on-one Tax Return Preparation \nServices (VITA/TCE)\nEach year the Volunteer Income Tax Assistance \n(VITA) and the Tax Counseling for the Elderly (TCE) \nprograms offers free face-to-face tax help to \npeople with low-to-moderate income. IRS-certified \nvolunteers provide this free service with electronic \nfiling to all people who qualify. All you have to do is \nbring your documentation and we’ll do the rest. \nPlan to come see us now. We will be glad to assist \nyou with your tax preparation needs. You may also \nget more details from IRS on the VITA and TCE \nprograms by going to www.irs.gov and typing the \nword VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n Before visiting a VITA or TCE site, see \nPublication 3676-B for services provided. \nIRS Partner\nWhat to Bring Check List\nProof of identification (photo ID) \n \nSocial Security cards or Individual Taxpayer \nIndentification notices/cards for you, your \nspouse, and/or dependents \n \nProof of foreign status, if applying for an ITIN \nBirth dates for all on the tax return \n \nFor married filing joint, both spouses must be \npresent\nAll Forms W-2 and 1099s\n \nInterest and dividend statements from banks \n(Forms 1099) \n \nA copy of last year’s federal and state returns\n \nProof of financial account numbers for direct \ndeposit of refund (e.g. voided check) \n \nTotal paid to daycare provider and their tax ID \nFree tax help may be closer than you think\nlogo\nlogo\nlogo\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\nlogo\ninsert \nlogo\nVITA/TCE\nOne-on-one Tax Return Preparation \nServices (VITA/TCE)\nEach year the Volunteer Income Tax Assistance \n(VITA) and the Tax Counseling for the Elderly (TCE) \nprograms offers free face-to-face tax help to \npeople with low-to-moderate income. IRS-certified \nvolunteers provide this free service with electronic \nfiling to all people who qualify. All you have to do is \nbring your documentation and we’ll do the rest. \nPlan to come see us now. We will be glad to assist \nyou with your tax preparation needs. You may also \nget more details from IRS on the VITA and TCE \nprograms by going to www.irs.gov and typing the \nword VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n Before visiting a VITA or TCE site, see \nPublication 3676-B for services provided. \nIRS Partner\nWhat to Bring Check List\nProof of identification (photo ID) \n \nSocial Security cards or Individual Taxpayer \nIndentification notices/cards for you, your \nspouse, and/or dependents \n \nProof of foreign status, if applying for an ITIN \nBirth dates for all on the tax return \n \nFor married filing joint, both spouses must be \npresent\nAll Forms W-2 and 1099s\n \nInterest and dividend statements from banks \n(Forms 1099) \n \nA copy of last year’s federal and state returns\n \nProof of financial account numbers for direct \ndeposit of refund (e.g. voided check) \n \nTotal paid to daycare provider and their tax ID \nFree tax help may be closer than you think\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nVITA/TCE\nOne-on-one Tax Return Preparation \nServices (VITA/TCE)\nEach year the Volunteer Income Tax Assistance \n(VITA) and the Tax Counseling for the Elderly (TCE) \nprograms offers free face-to-face tax help to \npeople with low-to-moderate income. IRS-certified \nvolunteers provide this free service with electronic \nfiling to all people who qualify. All you have to do is \nbring your documentation and we’ll do the rest. \nPlan to come see us now. We will be glad to assist \nyou with your tax preparation needs. You may also \nget more details from IRS on the VITA and TCE \nprograms by going to www.irs.gov and typing the \nword VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n Before visiting a VITA or TCE site, see \nPublication 3676-B for services provided. \nIRS Partner\nWhat to Bring Check List\nProof of identification (photo ID) \n \nSocial Security cards or Individual Taxpayer \nIndentification notices/cards for you, your \nspouse, and/or dependents \n \nProof of foreign status, if applying for an ITIN \nBirth dates for all on the tax return \n \nFor married filing joint, both spouses must be \npresent\nAll Forms W-2 and 1099s\n \nInterest and dividend statements from banks \n(Forms 1099) \n \nA copy of last year’s federal and state returns\n \nProof of financial account numbers for direct \ndeposit of refund (e.g. voided check) \n \nTotal paid to daycare provider and their tax ID \nA chance to e-file your tax return yourself for Free\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nSelf-Help (Facilitated Self Assistance)\nFile your taxes Yourself for Free\nIf you are a low-to-moderate income taxpayer with a simple tax return and just need \na little help or you do not have access to a computer, we can offer an IRS-certified \nvolunteer to guide you through the process and provide access to a computer.\nAll you have to do is bring your documentation into a FREE tax preparation site \nand we’ll get you started, answer your questions and help you file your own tax \nreturn. You’ll have access to free tax software that will help build your confidence in \npreparing your own return.\nCheck out the benefits of preparing your own return:\n \nFree tax preparation and e-filing of federal and state return\n \nUse of brand-name interview-based software for accurate filing\nGet to use your existing computer skills\n \nAssistance from IRS-certified volunteers as needed\nReduced wait time for face-face tax prep\n \nIncreased education and understanding about your tax return\nBuilds your confidence to file without assistance\nIRS Partner\nWhat to Bring Check List\nProof of identification (photo ID) \n \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n \nProof of foreign status, if \napplying for an ITIN \n \nBirth dates for all on the tax \nreturn \n \nFor married filing joint, both \nspouses must be present\nAll Forms W-2 and 1099s\n \nInterest and dividend \nstatements from banks (Forms \n1099) \n \nA copy of last year’s federal and \nstate returns\n \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n \nTotal paid to daycare provider \nand their tax ID \nSo, come and give us a visit, we will be glad to assist you with your tax preparation \nneeds. You may also get more details on the VITA and TCE programs by going to \nwww.irs.gov and typing the word VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for \nservices provided. \nA chance to e-file your tax return yourself for Free\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nSelf-Help (Facilitated Self Assistance)\nIRS Partner\nFile your taxes Yourself for Free\nIf you are a low-to-moderate income taxpayer with a simple tax return and just need \na little help or you do not have access to a computer, we can offer an IRS-certified \nvolunteer to guide you through the process and provide access to a computer.\nAll you have to do is bring your documentation into a FREE tax preparation site \nand we’ll get you started, answer your questions and help you file your own tax \nreturn. You’ll have access to free tax software that will help build your confidence in \npreparing your own return.\nCheck out the benefits of preparing your own return:\n \nFree tax preparation and e-filing of federal and state return\n \nUse of brand-name interview-based software for accurate filing\nGet to use your existing computer skills\n \nAssistance from IRS-certified volunteers as needed\nReduced wait time for face-face tax prep\n \nIncreased education and understanding about your tax return\nBuilds your confidence to file without assistance\nWhat to Bring Check List\nProof of identification (photo ID) \n \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n \nProof of foreign status, if \napplying for an ITIN \n \nBirth dates for all on the tax \nreturn \n \nFor married filing joint, both \nspouses must be present\nAll Forms W-2 and 1099s\n \nInterest and dividend \nstatements from banks (Forms \n1099) \n \nA copy of last year’s federal and \nstate returns\n \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n \nTotal paid to daycare provider \nand their tax ID \nSo, come and give us a visit, we will be glad to assist you with your tax preparation \nneeds. You may also get more details on the VITA and TCE programs by going to \nwww.irs.gov and typing the word VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n \nFree Tax help options now available \nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nVITA/TCE & Self-Help (Facilitated Self Assistance)\nYou choose: \nOne-on-one Tax Return Preparation or Self-Help \nServices\nEach year the Volunteer Income Tax Assistance (VITA) and the Tax Counseling for \nthe Elderly (TCE) programs offers free tax help to people with low-to-moderate \nincome. You can now choose if you want one-on-one assistance or if you want to \ndo it yourself with available assistance near by to help you if needed. \nNo matter which service you choose an IRS-certified volunteer will be available \nto provide this free service with electronic filing to all people who qualify. If you \nchoose: \n \nFace-to-face, all you have to do is bring your documentation and we’ll do \nthe rest. \n \nDo it yourself, all you have to do is bring your documentation and we’ll get \nyou started, answer your questions and help you file your own tax return. \nYou’ll have access to free tax software that will build your confidence in \npreparing your own return.\nIRS Partner\nWhat to Bring Check List\nProof of identification (photo ID) \n \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n \nProof of foreign status, if \napplying for an ITIN \n \nBirth dates for all on the tax \nreturn \n \nFor married filing joint, both \nspouses must be present\nAll Forms W-2 and 1099s\n \nInterest and dividend \nstatements from banks (Forms \n1099) \n \nA copy of last year’s federal and \nstate returns\n \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n \nTotal paid to daycare provider \nand their tax ID \nSo, come and give us a visit, we will be glad to assist you with your tax \npreparation needs. You may also get more details on the VITA and TCE programs \nby going to www.irs.gov and typing the word VITA in the search engine and \nclicking on “Free tax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for \nservices provided. \nA chance to e-file your tax return yourself for Free\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nVITA/TCE & Self-Help (Facilitated Self Assistance)\nIRS Partner\nYou choose: \nOne-on-one Tax Return Preparation or Self-Help \nServices\nEach year the Volunteer Income Tax Assistance (VITA) and the Tax Counseling for \nthe Elderly (TCE) programs offers free tax help to people with low-to-moderate \nincome. You can now choose if you want one-on-one assistance or if you want to \ndo it yourself with available assistance near by to help you if needed. \nNo matter which service you choose an IRS-certified volunteer will be available \nto provide this free service with electronic filing to all people who qualify. If you \nchoose: \n \nFace-to-face, all you have to do is bring your documentation and we’ll do \nthe rest. \n \nDo it yourself, all you have to do is bring your documentation and we’ll get \nyou started, answer your questions and help you file your own tax return. \nYou’ll have access to free tax software that will build your confidence in \npreparing your own return.\nWhat to Bring Check List\nProof of identification (photo ID) \n \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n \nProof of foreign status, if \napplying for an ITIN \n \nBirth dates for all on the tax \nreturn \n \nFor married filing joint, both \nspouses must be present\nAll Forms W-2 and 1099s\n \nInterest and dividend \nstatements from banks (Forms \n1099) \n \nA copy of last year’s federal and \nstate returns\n \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n \nTotal paid to daycare provider \nand their tax ID \nSo, come and give us a visit, we will be glad to assist you with your tax \npreparation needs. You may also get more details on the VITA and TCE programs \nby going to www.irs.gov and typing the word VITA in the search engine and \nclicking on “Free tax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for \nservices provided. \nPArTnEr\nDRAFT\nVolunteer\nLearn valuable skills, then share those skills with your community while \nvolunteering a few hours a week to help prepare tax returns\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nPublication 5176-A (7-2014) Catalog Number 67009A Department of the Treasury Internal Revenue Service www.irs.gov\nYour help is needed! Make a difference while learning \nand volunteering \nThe Volunteer Income Tax Assistance (VITA) and Tax \nCounseling for the Elderly (TCE) programs are looking for \nvolunteers who are interested in sharing their skills, talent \nand knowledge along with thousands of other Americans \ngiving back to their communities while volunteering to \nprepare tax returns.\nAs a volunteer, you will interact with people who need \nhelp preparing their tax returns at no cost to them. We \nneed volunteers to serve as Instructors, Site Coordinators \nand Tax Preparers. If preparing taxes is not your ideal \nvolunteer assignment we still have a place for you. We \nalso need Greeter/Screeners, Computer specialist and \nInterpreters. \nYou tell us:\n■\n■How much time you can give\n■\n■Your current computer skills \n■\n■Your current tax law knowledge\n■\n■Your desired volunteer position \nWe will provide:\n■\n■Free tax law training \n■\n■E-file Software training\n■\n■Administrative support\n■\n■A great volunteer experience\nIRS Partner\nInterested? Contact us today! Find more details on becoming a VITA/TCE \nVolunteer at: http://www.irs.gov/Individuals/IRS-Tax-Volunteers\nFree tax help may be closer than you think\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nVITA/TCE\nOne-on-one Tax Return Preparation \nServices (VITA/TCE)\nEach year the Volunteer Income Tax Assistance \n(VITA) and the Tax Counseling for the Elderly (TCE) \nprograms offers free face-to-face tax help to \npeople with low-to-moderate income. IRS-certified \nvolunteers provide this free service with electronic \nfiling to all people who qualify. All you have to do is \nbring your documentation and we’ll do the rest. \nPlan to come see us now. We will be glad to assist \nyou with your tax preparation needs. You may also \nget more details from IRS on the VITA and TCE \nprograms by going to www.irs.gov and typing the \nword VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n Before visiting a VITA or TCE site, see \nPublication 3676-B for services provided. \nIRS Partner\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards or Individual Taxpayer \nIndentification notices/cards for you, your \nspouse, and/or dependents \n■\n■ \nProof of foreign status, if applying for an ITIN \n■\n■Birth dates for all on the tax return \n■\n■ \nFor married filing joint, both spouses must be \npresent\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend statements from banks \n(Forms 1099) \n■\n■ \nA copy of last year’s federal and state returns\n■\n■ \nProof of financial account numbers for direct \ndeposit of refund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider and their tax ID \nPublication 5176-B (7-2014) Catalog Number 67010Q Department of the Treasury Internal Revenue Service www.irs.gov\nFree tax help may be closer than you think\nlogo\nlogo\nlogo\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\nlogo\ninsert \nlogo\nVITA/TCE\nOne-on-one Tax Return Preparation \nServices (VITA/TCE)\nEach year the Volunteer Income Tax Assistance \n(VITA) and the Tax Counseling for the Elderly (TCE) \nprograms offers free face-to-face tax help to \npeople with low-to-moderate income. IRS-certified \nvolunteers provide this free service with electronic \nfiling to all people who qualify. All you have to do is \nbring your documentation and we’ll do the rest. \nPlan to come see us now. We will be glad to assist \nyou with your tax preparation needs. You may also \nget more details from IRS on the VITA and TCE \nprograms by going to www.irs.gov and typing the \nword VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n Before visiting a VITA or TCE site, see \nPublication 3676-B for services provided. \nIRS Partner\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards or Individual Taxpayer \nIndentification notices/cards for you, your \nspouse, and/or dependents \n■\n■ \nProof of foreign status, if applying for an ITIN \n■\n■Birth dates for all on the tax return \n■\n■ \nFor married filing joint, both spouses must be \npresent\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend statements from banks \n(Forms 1099) \n■\n■ \nA copy of last year’s federal and state returns\n■\n■ \nProof of financial account numbers for direct \ndeposit of refund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider and their tax ID \nPublication 5176-B (7-2014) Catalog Number 67010Q Department of the Treasury Internal Revenue Service www.irs.gov\nA chance to e-file your tax return yourself for Free\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nSelf-Help (Facilitated Self Assistance)\nFile your taxes Yourself for Free\nIf you are a low-to-moderate income taxpayer with a simple tax return and just need \na little help or you do not have access to a computer, we can offer an IRS-certified \nvolunteer to guide you through the process and provide access to a computer.\nAll you have to do is bring your documentation into a FREE tax preparation site \nand we’ll get you started, answer your questions and help you file your own tax \nreturn. You’ll have access to free tax software that will help build your confidence in \npreparing your own return.\nCheck out the benefits of preparing your own return:\n■\n■ \nFree tax preparation and e-filing of federal and state return\n■\n■ \nUse of brand-name interview-based software for accurate filing\n■\n■Get to use your existing computer skills\n■\n■ \nAssistance from IRS-certified volunteers as needed\n■\n■Reduced wait time for face-face tax prep\n■\n■ \nIncreased education and understanding about your tax return\n■\n■Builds your confidence to file without assistance\nIRS Partner\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n■\n■ \nProof of foreign status, if \napplying for an ITIN \n■\n■ \nBirth dates for all on the tax \nreturn \n■\n■ \nFor married filing joint, both \nspouses must be present\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend \nstatements from banks (Forms \n1099) \n■\n■ \nA copy of last year’s federal and \nstate returns\n■\n■ \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider \nand their tax ID \nPublication 5176-C (7-2014) Catalog Number 67011B Department of the Treasury Internal Revenue Service www.irs.gov\nSo, come and give us a visit, we will be glad to assist you with your tax preparation \nneeds. You may also get more details on the VITA and TCE programs by going to \nwww.irs.gov and typing the word VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for \nservices provided. \nA chance to e-file your tax return yourself for Free\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\nlogo\nlogo\nlogo\nlogo\ninsert \nlogo\nSelf-Help (Facilitated Self Assistance)\nIRS Partner\nFile your taxes Yourself for Free\nIf you are a low-to-moderate income taxpayer with a simple tax return and just need \na little help or you do not have access to a computer, we can offer an IRS-certified \nvolunteer to guide you through the process and provide access to a computer.\nAll you have to do is bring your documentation into a FREE tax preparation site \nand we’ll get you started, answer your questions and help you file your own tax \nreturn. You’ll have access to free tax software that will help build your confidence in \npreparing your own return.\nCheck out the benefits of preparing your own return:\n■\n■ \nFree tax preparation and e-filing of federal and state return\n■\n■ \nUse of brand-name interview-based software for accurate filing\n■\n■Get to use your existing computer skills\n■\n■ \nAssistance from IRS-certified volunteers as needed\n■\n■Reduced wait time for face-face tax prep\n■\n■ \nIncreased education and understanding about your tax return\n■\n■Builds your confidence to file without assistance\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n■\n■ \nProof of foreign status, if \napplying for an ITIN \n■\n■ \nBirth dates for all on the tax \nreturn \n■\n■ \nFor married filing joint, both \nspouses must be present\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend \nstatements from banks (Forms \n1099) \n■\n■ \nA copy of last year’s federal and \nstate returns\n■\n■ \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider \nand their tax ID \nSo, come and give us a visit, we will be glad to assist you with your tax preparation \nneeds. You may also get more details on the VITA and TCE programs by going to \nwww.irs.gov and typing the word VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for services provided. \nPublication 5176-C (7-2014) Catalog Number 67011B Department of the Treasury Internal Revenue Service www.irs.gov\nPArTnEr\nDRAFT\nThe templates in this toolkit have been created for official partners of the IRS to use as part of their outreach products, in support of IRS \ntax return preparation assistance. To keep IRS information consistent and official we ask that you use these templates as part of your \nmarketing of the VITA and TCE programs. The customizable templates can be used to assist with recruiting volunteers for sites and bring \nawareness to the availability of the services in the community.\nTemplate Instructions\nPArTnEr\nVolunteer Income Tax Assistance (VITA) \n& Tax Counseling for the Elderly (TCE)\nHow to use these templates\nVITA/TCE Template Approval Process\nEach template used must be reviewed and approved by the \nIRS. To acquire theses templates, the partner must contact \ntheir SPEC relationship manager (RM). Once the partner \ninformation is inserted into the template, the template must \nbe returned to the RM for approval. The RM will ensure \nthe information goes through the IRS approval process as \nquickly as possible. Once approved, any additional changes \nto the template must be returned to the RM for additional \napproval. \nVITA/TCE Microsoft Word \nTemplate Usage\nFont Styles and Format\n \n❯ \nPlease do not alter the font family, font sizes, or font \nstyles. Use them as set up in the template pre-sets \nstyles.\n \n❯ \nUse the font Helvetica as set up in the template pre-set \nstyles. If Helvetica is not on your system Arial should be \nthe substitute. \n \n❯ \nEach template contains styles for your use in format-\nting the text according to the design. The included text \nstyles should be used for hierarchy within the docu-\nment. To locate available text formats, use the “Format-\nting Palette” and use styles named with “IRS Template”. \nColors (If color printing is available)\n \n❯ \nAll colors used are approved IRS colors established in \nthe IRS Design Standards and Guidelines. Please do \nnot alter or add new colors.\n \n❯ \nAll external products should utilize the primary IRS blue \ncolor pairing of PMS 301C and Process Cyan. \nProduct ID\nFor each new use or change in content please update the date in \nthe product id at the bottom of the template to the current month \nand year of the revision. For example: 9-2014 for the first edition \nand for revisions: Rev. 9-2015\nInserting Logos\nTriple click the text in the area for adding new logos. Go to the \nMenu under Insert > Photo from file and navigate to your logo. \nWhen placed, the logo should be no larger that the IRS logo.\nCopy & Paste\nWhen copying and pasting previously formatted text into the \ntemplates over the placeholder text, please use the Paste Special \ncommand on the menu under Edit>Paste Special and choose \n“unformatted text”. This will allow the placed text to reflect the \ntext styles present within the template.\n \nSaving - MS Word\nMake sure to uncheck Save with Picture Preview option under \nPreferences or Document Options - this prevents the file from \nbloating when you add your content\nPrinting - MS Word\nSome templates may show an error message regarding margins \nwhen sending to print. Click ok and proceed to print. The tem-\nplates have been created to allow for most printer margins.\nFor other information on VITA/TCE support go to: \nhttp://www.irs.gov/Individuals/Partner-and-Volunteer-Resource-Center\nDRAFT\nPublication xxxx (x-2014) Catalog Number xxxxxx Department of the Treasury Internal Revenue Service www.irs.gov\nVolunteer\nLearn valuable skills, then share those skills with your community while \nvolunteering a few hours a week to help prepare tax returns\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nPublication 5176-A (7-2014) Catalog Number 67009A Department of the Treasury Internal Revenue Service www.irs.gov\nYour help is needed! Make a difference while learning \nand volunteering \nThe Volunteer Income Tax Assistance (VITA) and Tax \nCounseling for the Elderly (TCE) programs are looking for \nvolunteers who are interested in sharing their skills, talent \nand knowledge along with thousands of other Americans \ngiving back to their communities while volunteering to \nprepare tax returns.\nAs a volunteer, you will interact with people who need \nhelp preparing their tax returns at no cost to them. We \nneed volunteers to serve as Instructors, Site Coordinators \nand Tax Preparers. If preparing taxes is not your ideal \nvolunteer assignment we still have a place for you. We \nalso need Greeter/Screeners, Computer specialist and \nInterpreters. \nYou tell us:\n■\n■How much time you can give\n■\n■Your current computer skills \n■\n■Your current tax law knowledge\n■\n■Your desired volunteer position \nWe will provide:\n■\n■Free tax law training \n■\n■E-file Software training\n■\n■Administrative support\n■\n■A great volunteer experience\nIRS Partner\nInterested? Contact us today! Find more details on becoming a VITA/TCE \nVolunteer at: http://www.irs.gov/Individuals/IRS-Tax-Volunteers\nFree tax help may be closer than you think\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nVITA/TCE\nOne-on-one Tax Return Preparation \nServices (VITA/TCE)\nEach year the Volunteer Income Tax Assistance \n(VITA) and the Tax Counseling for the Elderly (TCE) \nprograms offers free face-to-face tax help to \npeople with low-to-moderate income. IRS-certified \nvolunteers provide this free service with electronic \nfiling to all people who qualify. All you have to do is \nbring your documentation and we’ll do the rest. \nPlan to come see us now. We will be glad to assist \nyou with your tax preparation needs. You may also \nget more details from IRS on the VITA and TCE \nprograms by going to www.irs.gov and typing the \nword VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n Before visiting a VITA or TCE site, see \nPublication 3676-B for services provided. \nIRS Partner\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards or Individual Taxpayer \nIndentification notices/cards for you, your \nspouse, and/or dependents \n■\n■ \nProof of foreign status, if applying for an ITIN \n■\n■Birth dates for all on the tax return \n■\n■ \nFor married filing joint, both spouses must be \npresent\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend statements from banks \n(Forms 1099) \n■\n■ \nA copy of last year’s federal and state returns\n■\n■ \nProof of financial account numbers for direct \ndeposit of refund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider and their tax ID \nPublication 5176-B (7-2014) Catalog Number 67010Q Department of the Treasury Internal Revenue Service www.irs.gov\nFree tax help may be closer than you think\nlogo\nlogo\nlogo\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\nlogo\ninsert \nlogo\nVITA/TCE\nOne-on-one Tax Return Preparation \nServices (VITA/TCE)\nEach year the Volunteer Income Tax Assistance \n(VITA) and the Tax Counseling for the Elderly (TCE) \nprograms offers free face-to-face tax help to \npeople with low-to-moderate income. IRS-certified \nvolunteers provide this free service with electronic \nfiling to all people who qualify. All you have to do is \nbring your documentation and we’ll do the rest. \nPlan to come see us now. We will be glad to assist \nyou with your tax preparation needs. You may also \nget more details from IRS on the VITA and TCE \nprograms by going to www.irs.gov and typing the \nword VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n Before visiting a VITA or TCE site, see \nPublication 3676-B for services provided. \nIRS Partner\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards or Individual Taxpayer \nIndentification notices/cards for you, your \nspouse, and/or dependents \n■\n■ \nProof of foreign status, if applying for an ITIN \n■\n■Birth dates for all on the tax return \n■\n■ \nFor married filing joint, both spouses must be \npresent\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend statements from banks \n(Forms 1099) \n■\n■ \nA copy of last year’s federal and state returns\n■\n■ \nProof of financial account numbers for direct \ndeposit of refund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider and their tax ID \nPublication 5176-B (7-2014) Catalog Number 67010Q Department of the Treasury Internal Revenue Service www.irs.gov\nA chance to e-file your tax return yourself for Free\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nSelf-Help (Facilitated Self Assistance)\nFile your taxes Yourself for Free\nIf you are a low-to-moderate income taxpayer with a simple tax return and just need \na little help or you do not have access to a computer, we can offer an IRS-certified \nvolunteer to guide you through the process and provide access to a computer.\nAll you have to do is bring your documentation into a FREE tax preparation site \nand we’ll get you started, answer your questions and help you file your own tax \nreturn. You’ll have access to free tax software that will help build your confidence in \npreparing your own return.\nCheck out the benefits of preparing your own return:\n■\n■ \nFree tax preparation and e-filing of federal and state return\n■\n■ \nUse of brand-name interview-based software for accurate filing\n■\n■Get to use your existing computer skills\n■\n■ \nAssistance from IRS-certified volunteers as needed\n■\n■Reduced wait time for face-face tax prep\n■\n■ \nIncreased education and understanding about your tax return\n■\n■Builds your confidence to file without assistance\nIRS Partner\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n■\n■ \nProof of foreign status, if \napplying for an ITIN \n■\n■ \nBirth dates for all on the tax \nreturn \n■\n■ \nFor married filing joint, both \nspouses must be present\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend \nstatements from banks (Forms \n1099) \n■\n■ \nA copy of last year’s federal and \nstate returns\n■\n■ \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider \nand their tax ID \nPublication 5176-C (7-2014) Catalog Number 67011B Department of the Treasury Internal Revenue Service www.irs.gov\nSo, come and give us a visit, we will be glad to assist you with your tax preparation \nneeds. You may also get more details on the VITA and TCE programs by going to \nwww.irs.gov and typing the word VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for \nservices provided. \nA chance to e-file your tax return yourself for Free\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\nlogo\nlogo\nlogo\nlogo\ninsert \nlogo\nSelf-Help (Facilitated Self Assistance)\nIRS Partner\nFile your taxes Yourself for Free\nIf you are a low-to-moderate income taxpayer with a simple tax return and just need \na little help or you do not have access to a computer, we can offer an IRS-certified \nvolunteer to guide you through the process and provide access to a computer.\nAll you have to do is bring your documentation into a FREE tax preparation site \nand we’ll get you started, answer your questions and help you file your own tax \nreturn. You’ll have access to free tax software that will help build your confidence in \npreparing your own return.\nCheck out the benefits of preparing your own return:\n■\n■ \nFree tax preparation and e-filing of federal and state return\n■\n■ \nUse of brand-name interview-based software for accurate filing\n■\n■Get to use your existing computer skills\n■\n■ \nAssistance from IRS-certified volunteers as needed\n■\n■Reduced wait time for face-face tax prep\n■\n■ \nIncreased education and understanding about your tax return\n■\n■Builds your confidence to file without assistance\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n■\n■ \nProof of foreign status, if \napplying for an ITIN \n■\n■ \nBirth dates for all on the tax \nreturn \n■\n■ \nFor married filing joint, both \nspouses must be present\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend \nstatements from banks (Forms \n1099) \n■\n■ \nA copy of last year’s federal and \nstate returns\n■\n■ \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider \nand their tax ID \nSo, come and give us a visit, we will be glad to assist you with your tax preparation \nneeds. You may also get more details on the VITA and TCE programs by going to \nwww.irs.gov and typing the word VITA in the search engine and clicking on “Free \ntax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for services provided. \nPublication 5176-C (7-2014) Catalog Number 67011B Department of the Treasury Internal Revenue Service www.irs.gov\nFree Tax help options now available \nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\ninsert \nlogo\nVITA/TCE & Self-Help (Facilitated Self Assistance)\nYou choose: \nOne-on-one Tax Return Preparation or Self-Help \nServices\nEach year the Volunteer Income Tax Assistance (VITA) and the Tax Counseling for \nthe Elderly (TCE) programs offers free tax help to people with low-to-moderate \nincome. You can now choose if you want one-on-one assistance or if you want to \ndo it yourself with available assistance near by to help you if needed. \nNo matter which service you choose an IRS-certified volunteer will be available \nto provide this free service with electronic filing to all people who qualify. If you \nchoose: \n■\n■ \nFace-to-face, all you have to do is bring your documentation and we’ll do \nthe rest. \n■\n■ \nDo it yourself, all you have to do is bring your documentation and we’ll get \nyou started, answer your questions and help you file your own tax return. \nYou’ll have access to free tax software that will build your confidence in \npreparing your own return.\nIRS Partner\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n■\n■ \nProof of foreign status, if \napplying for an ITIN \n■\n■ \nBirth dates for all on the tax \nreturn \n■\n■ \nFor married filing joint, both \nspouses must be present\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend \nstatements from banks (Forms \n1099) \n■\n■ \nA copy of last year’s federal and \nstate returns\n■\n■ \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider \nand their tax ID \nPublication 5176-E (7-2014) Catalog Number 67013X Department of the Treasury Internal Revenue Service www.irs.gov\nSo, come and give us a visit, we will be glad to assist you with your tax \npreparation needs. You may also get more details on the VITA and TCE programs \nby going to www.irs.gov and typing the word VITA in the search engine and \nclicking on “Free tax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for \nservices provided. \nA chance to e-file your tax return yourself for Free\nFree \nTax\nPreparation\nVolunteer Income Tax Assitance (VITA) & \nTax Counseling for the Elderly (TCE)\nlogo\nlogo\nlogo\nlogo\ninsert \nlogo\nVITA/TCE & Self-Help (Facilitated Self Assistance)\nIRS Partner\nPublication 5176-E (7-2014) Catalog Number 67013X Department of the Treasury Internal Revenue Service www.irs.gov\nYou choose: \nOne-on-one Tax Return Preparation or Self-Help \nServices\nEach year the Volunteer Income Tax Assistance (VITA) and the Tax Counseling for \nthe Elderly (TCE) programs offers free tax help to people with low-to-moderate \nincome. You can now choose if you want one-on-one assistance or if you want to \ndo it yourself with available assistance near by to help you if needed. \nNo matter which service you choose an IRS-certified volunteer will be available \nto provide this free service with electronic filing to all people who qualify. If you \nchoose: \n■\n■ \nFace-to-face, all you have to do is bring your documentation and we’ll do \nthe rest. \n■\n■ \nDo it yourself, all you have to do is bring your documentation and we’ll get \nyou started, answer your questions and help you file your own tax return. \nYou’ll have access to free tax software that will build your confidence in \npreparing your own return.\nWhat to Bring Check List\n■\n■Proof of identification (photo ID) \n■\n■ \nSocial Security cards \nor Individual Taxpayer \nIndentification notices/cards \nfor you, your spouse, and/or \ndependents \n■\n■ \nProof of foreign status, if \napplying for an ITIN \n■\n■ \nBirth dates for all on the tax \nreturn \n■\n■ \nFor married filing joint, both \nspouses must be present\n■\n■All Forms W-2 and 1099s\n■\n■ \nInterest and dividend \nstatements from banks (Forms \n1099) \n■\n■ \nA copy of last year’s federal and \nstate returns\n■\n■ \nProof of financial account \nnumbers for direct deposit of \nrefund (e.g. voided check) \n■\n■ \nTotal paid to daycare provider \nand their tax ID \nSo, come and give us a visit, we will be glad to assist you with your tax \npreparation needs. You may also get more details on the VITA and TCE programs \nby going to www.irs.gov and typing the word VITA in the search engine and \nclicking on “Free tax return preparation for you by volunteers.” \n \nBefore visiting a VITA or TCE site, see Publication 3676-B for \nservices provided. \nPARTNER\nDRAFT\nThe templates in this toolkit have been created for official partners of the IRS to use as part of their outreach products, in support of IRS \ntax return preparation assistance. To keep IRS information consistent and official, we ask that you use these templates as part of your \nmarketing of the VITA and TCE programs. The customizable templates can be used to assist with recruiting volunteers for sites and bring \nawareness to the availability of the services in the community.\nTemplate Instructions\nPARTNER\nVolunteer Income Tax Assistance (VITA) \n& Tax Counseling for the Elderly (TCE)\nHow to use these templates\nFont Styles and Format\n \n❯ \nPlease do not alter the font family, font sizes or font \nstyles. Use them as set up in the template pre-sets \nstyles.\n \n❯ \nUse the font Helvetica as set up in the template pre-set \nstyles. If Helvetica is not on your system, Arial should be \nthe substitute. \n \n❯ \nEach template contains styles for your use in format-\nting the text according to the design. The included text \nstyles should be used for hierarchy within the document. \nTo locate available text formats, use the “Formatting \nPalette” and use styles named with “IRS Template”. \nColors (If color printing is available)\n \n❯ \nAll colors used are approved IRS colors established in \nthe IRS Design Standards and Guidelines. Please do not \nalter or add new colors.\n \n❯ \nAll IRS products should use the pairing of PMS 301C and \nProcess Cyan (included in the template). \nProduct ID\nFor each new use or change in content, please update the \ndate in the product ID (at the bottom of the template) to the \ncurrent month and year of the revision. For example: 9-2014 for \nthe first edition and for all revisions: Rev. 9-2015\nInserting Logos\nTriple click the text in the area for adding new logos. Go to the \nMenu under Insert > Photo from file and navigate to your logo. \nWhen placed, the logo should be no larger than the IRS logo.\nCopy & Paste\nWhen copying and pasting previously formatted text into \nthe template placeholder text, please use the Paste Special \ncommand on the menu under Edit>Paste Special and choose \nunformatted text. This will allow the placed text to reflect the text \nstyles present within the template.\n \nSaving - MS Word\nMake sure to uncheck Save with Picture Preview option under \nPreferences or Document Options - this prevents the file from \nbloating when you add your content.\nPrinting - MS Word\nSome templates may show an error message regarding margins \nwhen sending to print. Click OK and proceed to print. The \ntemplates have been created to allow for most printer margins.\nFor other information on VITA/TCE support go to: \nhttp://www.irs.gov/Individuals/Partner-and-Volunteer-Resource-Center\nDRAFT\nPublication 5176 (11-2014) Catalog Number 67008E Department of the Treasury Internal Revenue Service www.irs.gov\nAny use of these materials listed on this toolkit, including reproduction, modification, distribution or republication without the prior \nwritten consent of IRS is strictly prohibited (Approval through your IRS contact fills this requirement).\nThe materials in this toolkit are supplied by the IRS for the marketing of the VITA and TCE programs. IRS must review and provide a \nwritten approval of all customized products using the IRS logo and these templates.\nVITA/TCE Template Approval Process\nEach template used must be reviewed and approved by the IRS. To acquire theses templates, the partner must contact their SPEC \nrelationship manager (RM). Once the partner information is inserted into the template, the template must be returned to the RM for \napproval. The RM will ensure the information goes through the IRS approval process as quickly as possible. Once approved, any \nadditional changes to the template must be returned to the RM for additional approval. This process must be completed each filing \nseason to ensure you are using the most up to date product(s).\nVITA/TCE Microsoft Word Template Usage\n \n \n1\nCustomize this section to add: \nOrganization or contact name, site address, \nhours of operation, phone number \nTriple click this \ntext to insert logo \n(or delete) \n \n2\nOther information or directions \nPublication 5176-A (10-2014) Catalog Number 67009A Department of the Treasury Internal Revenue Service www.irs.gov \n \n(Please use the text below to show the volunteer roles needed \nat your site. If your needs differ from what is shown, please \nmake the appropriate changes. (Delete these instructions) \nWe need volunteers to serve as instructors, Site/Local \nCoordinator and Tax Preparers. If preparing taxes is not your \nideal volunteer assignment we still have a place for you. We \nalso need Greeters/Screeners, Computer Specialists and \nInterpreters. \nTo explore these available volunteer roles/positions, visit \nhttp://www.irs.gov/Individuals/Choose-Your-Tax-\nVolunteer-Role. \n \n\t\r \n\t\r \nCustomize this section to add: \nOrganization or contact name, site \naddress, hours of operation, phone \nnumber \nSelect this text to \ninsert logo (or \ndelete) \n\t\r \nPublication 5176-B (11-2014) Catalog Number 67010Q Department of the Treasury Internal Revenue Service www.irs.gov \n\t\r \n1\nCustomize this section to add: \nOrganization or contact name, site address, hours of \noperation, phone number \n2\nOther information or \ndirections \n\t\r \n\t\r \nCustomize this section to add: \nOrganization or contact name, site \naddress, hours of operation, phone \nnumber \nSelect this text to \ninsert logo (or \ndelete) \n\t\r \nPublication 5176-B (11-2014) Catalog Number 67010Q Department of the Treasury Internal Revenue Service www.irs.gov \n\t\r \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \n\t\r \n\t\r \nSelect this text to \ninsert logo (or \ndelete) \n\t\r \nPublication 5176-C (11-2014) Catalog Number 67011B Department of the Treasury Internal Revenue Service www.irs.gov \n\t\r \n1\nCustomize this section to add: \nOrganization or contact name, site address, hours of \noperation, phone number \n2\nOther information or \ndirections \n\t\r \n\t\r \nCustomize this section to add: \nOrganization or contact name, site address, hours of operation, \nphone number \nSelect this text to \ninsert logo (or \ndelete) \n\t\r \nPublication 5176-C (11-2014) Catalog Number 67011B Department of the Treasury Internal Revenue Service www.irs.gov \n\t\r \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \n\t\r \n\t\r \nSelect this text to \ninsert logo (or \ndelete) \n\t\r \nPublication 5176-D (11-2014) Catalog Number 67012M Department of the Treasury Internal Revenue Service www.irs.gov \n\t\r \n1\nCustomize this section to add: \nOrganization or contact name, site address, hours of \noperation, phone number \n2\nOther information or \ndirections \n\t\r \n\t\r \nCustomize this section to add: \nOrganization or contact name, site address, hours of \noperation, phone number \nSelect this text to \ninsert logo (or \ndelete) \n\t\r \nPublication 5176-D (11-2014) Catalog Number 67012M Department of the Treasury Internal Revenue Service www.irs.gov \n\t\r \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \nSelect \ntext and \ninsert \nlogo \nPartner\nThe templates in this toolkit have been created for official partners of the IRS to use as part of their outreach products, in support of IRS \ntax return preparation assistance. To keep IRS information consistent and official, we ask that you use these templates as part of your \nmarketing of the VITA and TCE programs. The customizable templates can be used to assist with recruiting volunteers for sites and bring \nawareness to the availability of the services in the community.\n",
"Template Instructions\nPartner\nVolunteer Income Tax Assistance (VITA) \n& Tax Counseling for the Elderly (TCE)\nHow to use these templates\nFont Styles and Format\n❯\n❯\u0007\nPlease do not alter the font family, font sizes or font \nstyles. Use them as set up in the template pre-sets \nstyles.\n❯\n❯\u0007\nUse the font Helvetica as set up in the template pre-set \nstyles. If Helvetica is not on your system, Arial should be \nthe substitute. \n❯\n❯\u0007\nEach template contains styles for your use in format-\nting the text according to the design. The included text \nstyles should be used for hierarchy within the document. \nTo locate available text formats, use the “Formatting \nPalette” and use styles named with “IRS Template”. \nColors (If color printing is available)\n❯\n❯\u0007\nAll colors used are approved IRS colors established in \nthe IRS Design Standards and Guidelines. Please do not \nalter or add new colors.\n❯\n❯\u0007\nAll IRS products should use the pairing of PMS 301C and \nProcess Cyan (included in the template). \nProduct ID\nFor each new use or change in content, please update the \ndate in the product ID (at the bottom of the template) to the \ncurrent month and year of the revision. For example: 9-2014 for \nthe first edition and for all revisions: Rev. 9-2015\nInserting Logos\nTriple click the text (select) in the area for adding new logos. Go \nto the Menu under Insert > Photo from file and navigate to your \nlogo. When placed, the logo should be no larger than the IRS logo.\nCopy & Paste\nWhen copying and pasting previously formatted text into \nthe template placeholder text, please use the Paste Special \ncommand on the menu under Edit>Paste Special and choose \nunformatted text. This will allow the placed text to reflect the text \nstyles present within the template.\n\u0007\nSaving - MS Word\nMake sure to uncheck Save with Picture Preview option under \nPreferences or Document Options - this prevents the file from \nbloating when you add your content.\nPrinting - MS Word\nSome templates may show an error message regarding margins \nwhen sending to print. Click OK and proceed to print. The \ntemplates have been created to allow for most printer margins.\nFor other information on VITA/TCE support go to: \nhttp://www.irs.gov/Individuals/Partner-and-Volunteer-Resource-Center\nPublication 5176 (11-2014) Catalog Number 67008E Department of the Treasury Internal Revenue Service www.irs.gov\nAny use of these materials listed on this toolkit, including reproduction, modification, distribution or republication without the prior \nwritten consent of IRS is strictly prohibited (Approval through your IRS contact fills this requirement).\nThe materials in this toolkit are supplied by the IRS for the marketing of the VITA and TCE programs. IRS must review and provide a \nwritten approval of all customized products using the IRS logo and these templates.\nVITA/TCE Template Approval Process\nEach template used must be reviewed and approved by the IRS. To acquire theses templates, the partner must contact their SPEC \nrelationship manager (RM). Once the partner information is inserted into the template, the template must be returned to the RM for \napproval. The RM will ensure the information goes through the IRS approval process as quickly as possible. Once approved, any \nadditional changes to the template must be returned to the RM for additional approval. This process must be completed each filing \nseason to ensure you are using the most up to date product(s).\nVITA/TCE Microsoft Word Template Usage\n"
] |
i1065sc.pdf
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1214 Inst 1065 (Schedule C) (PDF)
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https://www.irs.gov/pub/irs-pdf/i1065sc.pdf
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[
"Instructions for Schedule C \n(Form 1065)\n(Rev. December 2014)\nAdditional Information for Schedule M-3 Filers\nDepartment of the Treasury\nInternal Revenue Service\nSection references are to the Internal Revenue Code \nunless otherwise noted.\nGeneral Instructions\nFuture Developments\nFor the latest information about developments related to \nSchedule C (Form 1065) and its instructions, such as \nlegislation enacted after they were published, go to \nwww.irs.gov/form1065.\nWhat's New\nSome filers of Form 1065, U.S. Return of Partnership \nIncome, that file Schedule M-3 (Form 1065), Net Income \n(Loss) Reconciliation for Certain Partnerships, with tax \nyears ending on December 31, 2014 or later are not \nrequired to file Schedule C (Form 1065). See Who Must \nFile, later.\nPurpose of Form\nUse Schedule C (Form 1065) to provide answers to \nadditional questions for some filers of Schedule M-3 \n(Form 1065), Net Income (Loss) Reconciliation for Certain \nPartnerships.\nWho Must File\nGenerally, filers of Form 1065, U.S. Return of Partnership \nIncome, that file Schedule M-3 (Form 1065), Net Income \n(Loss) Reconciliation for Certain Partnerships, must \ncomplete and file Schedule C (Form 1065) and attach it to \ntheir return. However, for tax years ending on December \n31, 2014 or later, partnerships that (a) are required to file \nSchedule M-3 and have less than $50 million in total \nassets at the end of the tax year or (b) are not required to \nfile Schedule M-3 and voluntarily file Schedule M-3, are \nnot required to file Schedule C (Form 1065). For more \ninformation, visit IRS.gov and enter “Schedule M-3 for \nLarge Business International (LBI)” in the Search box. \nAlso see the Instructions for Schedule M-3 (Form 1065) \nfor more information.\nSpecific Instructions\nQuestion 1. For certain transfers that are presumed to \nbe sales, the partnership or the partners must comply with \nthe disclosure requirements in Regulations section \n1.707-8. Generally, disclosure is required when:\n1. Certain transfers to a partner are made within two \nyears of a transfer of property by the partner to the \npartnership;\n2. Certain debt is incurred by a partner within two \nyears of the earlier of:\nA written agreement to transfer or\nA transfer of the property that secures the debt, if the \ndebt, nevertheless, is treated as a qualified liability; or\n3. Transfers from a partnership to a partner occur \nwhich are the equivalent to those listed in 1 or 2 above.\nThe disclosure must be made on the transferor \npartner's return using Form 8275, Disclosure Statement, \nor on an attached statement providing the same \ninformation. When more than one partner transfers \nproperty to a partnership under a plan, the disclosure may \nbe made by the partnership rather than by each partner.\nQuestion 2. Answer “Yes” if this partnership is a partner \nin another partnership and has received special \nallocations of income, gain, loss, deduction, or credit from \nthat partnership. For more information on special \nallocations, see Special Allocations, in the Instructions for \nForm 1065.\nExample. P, a partnership, joins with B, an individual, \nin forming the PB partnership. P and B each contribute \n$50,000 cash to PB partnership. Profits and losses are \nsplit 50/50, with the exception of depreciation, which is \nallocated 99% to P and 1% to B. P answers “Yes” to \nquestion 2 because its 99% allocation of depreciation \ndeductions from PB partnership is disproportionate to its \nratio of sharing other items from PB partnership.\nQuestion 5. The term “change in accounting principle” \nmeans a change from one generally accepted accounting \nprinciple to another generally accepted accounting \nprinciple as described in “Statement of Financial \nAccounting Standards No. 154–Accounting Changes and \nError Corrections.”\nFor purposes of this question, answer “Yes” if such a \nchange in accounting principle occurred during the tax \nyear and such change resulted in, or is expected to result \nin, an effect on the amount of income reported for financial \nstatement purposes.\nQuestion 6. File Form 3115, Application for Change in \nAccounting Method, to request a change in a method of \naccounting. See the Instructions for Form 3115 for \ninformation on requesting a change in accounting method.\nApr 01, 2014\nCat. No. 51534B\n"
] |
f1065sc.pdf
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1214 Form 1065 (Schedule C) (PDF) 1
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https://www.irs.gov/pub/irs-pdf/f1065sc.pdf
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[
"SCHEDULE C \n(Form 1065)\n(Rev. December 2014) \nDepartment of the Treasury \nInternal Revenue Service \nAdditional Information for Schedule M-3 Filers\n▶ Attach to Form 1065. See separate instructions.\n▶ Information about Schedule C (Form 1065) and its instructions is at www.irs.gov/form1065.\nOMB No. 1545-0123\nName of partnership\nEmployer identification number\nYes\nNo\n1\nAt any time during the tax year, were there any transfers between the partnership and its partners subject to the \ndisclosure requirements of Regulations section 1.707-8? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2\nDoes any amount reported on Schedule M-3, Part II, lines 7 or 8, column (d), reflect allocations to this partnership \nfrom another partnership of income, gain, loss, deduction, or credit that are disproportionate to this partnership’s \nshare of capital in that partnership or its ratio for sharing other items of that partnership? \n.\n.\n.\n.\n.\n.\n.\n.\n3\nAt any time during the tax year, did the partnership sell, exchange, or transfer any interest in an intangible asset to \na related person as defined in sections 267(b) and 707(b)(1)? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4\nAt any time during the tax year, did the partnership acquire any interest in an intangible asset from a related\nperson as defined in sections 267(b) and 707(b)(1)? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\nAt any time during the tax year, did the partnership make any change in accounting principle for financial\naccounting purposes? See instructions for a definition of change in accounting principle \n.\n.\n.\n.\n.\n.\n.\n.\n6\nAt any time during the tax year, did the partnership make any change in a method of accounting for U.S. income\ntax purposes? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nFor Paperwork Reduction Act Notice, see the Instructions for Form 1065.\nCat. No. 49945S\nSchedule C (Form 1065) (Rev. 12-2014)\n"
] |
p5144sp.pdf
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0914 Publ 5144 (SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/p5144sp.pdf
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[
"Publication 5144 (SP) (9-2014) Catalog Number 67227N Department of the Treasury Internal Revenue \nService www.irs.gov\nTrabajadores Agrícolas Extranjeros con un Visado H-2A\nP1. ¿Necesita el trabajador agrícola con un visado H-2A un Número de Seguro Social de los \nEstados Unidos?\nR1. Sí. Usted necesitará un Número de Seguro Social (SSN, por sus siglas en inglés), para de\nclarar sus ingresos. Cuando comience a trabajar, provéale a su empleador una copia de su SSN. \nSi usted no tiene un SSN cuando comience a trabajar, provéale a su empleador una copia del SSN \ntan pronto usted lo obtenga. \nP2. ¿Cómo puedo obtener un Número de Seguro Social estadounidense?\nR2. Usted necesitará ponerse en contacto con la Administración del Seguro Social (SSA, por sus \nsiglas en inglés), para obtener un SSN. Usted tiene que visitar la oficina de la SSA y traer con \nusted sus documentos de inmigración estadounidenses. \nP3. ¿Están los salarios que yo gano como trabajador agrícola con un visado H-2A, sujetos al \nimpuesto federal estadounidense sobre los ingresos? \nR3. Sí. Los salarios que usted gana como trabajador agrícola con un visado H-2A, están sujetos al \nimpuesto federal estadounidense sobre los ingresos.\nCONSEJO: Usted debe recibir el Formulario W-2, Wage and Tax Statement (Comprobante \nde Salarios e Impuestos), en inglés, de su empleador para cada año que usted trabaje. Usted \nnecesitará presentar el Formulario W-2 con su Declaración del Impuesto Federal sobre el Ingreso \nPersonal en los Estados Unidos.\nP4. ¿Están los salarios que yo gano como trabajador agrícola con un visado H-2A, sujetos a los \nimpuestos estadounidenses de Seguro Social y de Medicare? \nR4. No. Los salarios que usted gana como trabajador agrícola con un visado H-2A, no están suje\ntos a los impuestos estadounidenses de Seguro Social y de Medicare. \nP5. ¿Estoy yo obligado a presentar una declaración del impuesto Federal Estadounidense sobre \nel ingreso personal?\nR5. Sí. Usted está obligado a presentar una declaración del impuesto Federal Estadounidense \nsobre el ingreso personal, si usted reúne los siguientes requisitos: Extranjeros no residentes, \npuede encontrar la información relacionada con los requisitos y condiciones especiales en las \nInstrucciones del Formulario 1040NR, U.S., Nonresident Alien Income Tax Return (Declaración \ndel impuesto estadounidense sobre los ingresos del extranjero no residente), o el Formulario \n1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents (De\nclaración del impuesto estadounidense sobre los ingresos para ciertos extranjeros no residentes \nsin dependientes), ambos en inglés. Para los extranjeros residentes, puede referirse a las instruc\nciones del Formulario 1040, U.S. Individual Income Tax Return (Declaración del impuesto sobre \nel ingreso Personal en los Estados Unidos), o el Formulario 1040A, U.S. Individual Income Tax \nReturn (Declaracion del impuesto sobre el ingreso Personal en los Estados Unidos), o el Formu\nlario 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents (Declaración \ndel impuesto sobre el ingreso para Solteros y Declarantes Conjuntos sin Dependientes), todos \nen inglés. Para determinar si usted es un extranjero residente o un extranjero no residente, vea el \nCapítulo 1 de la Publicación 519, U.S. Tax Guide for Aliens, (Guía tributaria estadounidense para \nextranjeros), en inglés.\nP6. ¿Cómo puedo pagar cualquier impuesto federal estadounidense sobre los ingresos que \nadeude?\nR6. Usted puede: Tener retención voluntaria del impuesto federal estadounidense sobre los in\ngresos, SOLAMENTE si ambos, su empleador y usted, están de acuerdo. \nHacer pagos estimados al Servicio de Impuestos Internos de los Estados Unidos con el Formular\nio 1040-ES (si es un extranjero residente) o en el Formulario 1040-ES(NR)(si es un extranjero no \nresidente). Pagar todo saldo de impuestos adeudado, para la fecha de vencimiento de la declara\nción de impuestos. \nEl Impuesto Federal sobre los Ingresos y la Retención del Impuesto de \nla Ley de Contribución al Seguro Social (FICA, por sus siglas en inglés) \npara Trabajadores Agrícolas Extranjeros con un Visado H–2A\nSabía usted que \n❙\n❙Los empleadores pueden estar exentos \nde retener los impuestos Federales, pero \nno están exentos de reportar los sueldos \npagados a los empleados \nagrícolas extranjeros con un visado H-2A. \n❙\n❙ Los trabajadores con un visado H-2A, \ntienen que tener un Número de Seguro \nSocial (SSN, por sus siglas en inglés) \nestadounidense. \nRecursos Adicionales\n❙\n❙Publicación 515 del IRS, \nWithholding of Tax on Nonresident Aliens \nand Foreign Entities (Retención de im\npuestos a los extrajeros no residentes y a \nentidades extranjeras), en inglés.\n❙\n❙Publicación 519 del IRS, U.S. Tax Guide \nfor Aliens (Guía tributaria estadounidense \npara extranjeros), (Información para deter\nminar el estatus de extranjero residente o \nno residente), en inglés. \n❙\n❙Publicación 901 del IRS, Tax Treaties \n(Tratados tributarios), en inglés.\n❙\n❙Formulario W-4(SP), Certificado de \nExención de Retenciones del Empleado.\n❙\n❙Información para Trabajadores Agrícolas \nExtranjeros en IRS.gov\n❙\n❙En inglés: http://www.irs.gov/Individuals/\nInternational-Taxpayers/Foreign-Agricultur\nal-Workers\n❙\n❙En español: http://www.irs.gov/Spanish/\nTrabajadores-agr%C3%ADcolas-extranje\nros-con-visas-H-2A\n",
" \nP1. ¿Están los trabajadores agrícolas extranjeros exentos de la retención de los impuestos \nfederales estadounidenses sobre los ingresos y de los impuestos de la Ley de Contribución al \nSeguro Social (FICA, por sus siglas en inglés)?\nR1. Sí. Los trabajadores agrícolas extranjeros admitidos en los Estados Unidos con un visado \nH-2A, están exentos de la retención del impuesto federal estadounidense sobre los ingresos, Y \nlos impuestos estadounidenses de Seguro Social y de Medicare (FICA), en los salarios pagados \na ellos por los servicios realizados en conexión con los visados H-2A.\nP2. ¿Aunque a un empleador no se le requiera retener los Impuestos federales en los salarios \npagados a los trabajadores con un visado H-2A, todavía tengo yo que reportar los salarios al \nIRS?\nR2. Sí\nP3. ¿Cuáles formularios debo utilizar como un empleador, para reportar los salarios pagados \na un trabajador con un visado H-2A?\nR3. Si el trabajador le ha proporcionado a usted el Número de Seguro Social (SSN) estadoun\nidense, declare los salarios de $600 o más pagados al trabajador, con el Formulario W-2, Wage \nand Tax Statement (Comprobante de Salarios e Impuestos) (NO con el Formulario 1099-MISC, \nMiscellaneous Income (Ingresos Misceláneos), como se requería en años anteriores). También \ndeclare los sueldos en el Formulario 943, Employer’s Annual Federal Tax Return for Agricul\ntural Employees, (Declaración Anual del Empleador de Empleados Agrícolas), en inglés.\nFormulario W-2: Declare la cantidad en el encasillado 1 Sueldos, propinas y otra compen\nsación). NO debe declarar ninguna cantidad en el encasillado 3(salarios de Seguro Social) ni en \nel encasillado 5 (salarios de Medicare). NO marque el encasillado 13 “Empleado Estatutario”. \nLos empleados agrícolas con visados H-2A no son “Empleados Estatutarios”. \nFormulario 943: Declare los salarios en la Línea 1. NO declare salarios en la Línea 2 (Salarios \nsujetos al impuesto de Seguro Social) y en la Línea 4 (Salarios sujetos el impuesto de Medi\ncare).\nP4. ¿Están los trabajadores agrícolas con un visado H-2A sujetos a una retención adicional de \nimpuestos?\nR4. Sí. Como un empleador, usted tiene que retener el 28 por ciento de retención adicional del \nimpuesto sobre los salarios de los trabajadores, si: un trabajador agrícola con un visado H-2A \nno ha proporcionado al empleador, un Número de Seguro Social estadounidense o un Número \nde Identificación Personal del Contribuyente (ITIN, por sus siglas en inglés) emitido por el IRS, \nY si el total anual de salarios pagados a un trabajador agrícola con un visado H-2A es de $600 o \nmás.\nCONSEJO: Los empleadores son responsables por la cantidad de impuestos que no retuvieron \ny debían retener.\nP5. ¿Cómo puedo declarar la Retención Adicional de Impuestos?\nR5. Como un empleador, usted tiene que declarar los salarios sujetos a la Retención Adicional \ny los impuestos retenidos en: el Formulario 1099-MISC, Y Formulario 945, Annual Return \nof Withheld Federal Income Tax (Declaración anual del impuesto federal retenido sobre los \ningresos), ambos en inglés.\nCONSEJO: NO declare la retención adicional de impuestos en el Formulario W-2 y el Formu\nlario 943.\nP6. ¿Puede el trabajador agrícola con un visado H-2A solicitar la retención voluntaria del \nimpuesto federal sobre los ingresos? \nR6. Sí. Como un empleador, usted puede retener voluntariamente el impuesto federal sobre el \ningreso, pero SOLAMENTE si ambos, el trabajador agrícola con un visado H-2A y usted, están \nde acuerdo con la retención. Si el trabajador agrícola con un visado H-2A es un extranjero no \nresidente, debe seguir las reglas para la retención publicadas en el Capítulo 9 de la Publicación \n15, (Circular E) Employer’s Tax Guide (Guía tributaria para empleadores), en inglés. Si el \ntrabajador agrícola con un visado H-2A es un extranjero residente, debe seguir las reglas para \nla retención publicadas en la Publicación 51 (Circular A) Agricultural Employer’s Tax Guide, \n(Guía tributaria para el empleador agrícola), en inglés.\nAyuda Aicional \n❙\n❙Para ordenar formularios, instrucciones \ny publicaciones del año en curso, llame \nal 1-800-TAX-FORM (1-800-829-3676).\n❙\n❙Para obtener ayuda de la Línea de \nImpuestos Especiales y Negocios del \nIRS, llame al 1-800-829-4933.\n❙\n❙Para localizar su oficina local del Centro \nde Asistencia al Contribuyente, visite \nIRS.gov/localcontacts (en inglés).\n❙\n❙Si usted hace uso del equipo TDD/\nTTY, llame al 1-800-829-4059. O en \nGSA.gov/fedrelay para el Federal Relay \nService (Servicio Federal de Transmis\nión), en inglés.\n❙\n❙Para escuchar mensajes grabados \nsobre diferentes temas de impuestos, \nllame al 1-800-829-4477. \n❙\n❙Para información sobre la Adminis\ntración del Seguro Social, visite http://\nwww.ssa.gov/espanol/. \n❙\n❙Para hacer un pago: http://www.irs.gov/\nSpanish/Haga-un-Pago\n❙\n❙Para preguntas internacionales, llame al \n267-941-1000 (en inglés).\n❙\n❙Para enviar correos electrónicos con \npreguntas internacionales, visite http://\nwww.irs.gov/uac/Help-With-Tax-\nQuestions---International-Taxpayers (en \ninglés).\n❙\n❙Para la oficina del Defensor del Con\ntribuyente, llame al 1-877-777-4778 \n(TTY/TTD: 1-800-829-4059) (en inglés).\n❙\n❙Para más información sobre la Asis\ntencia Voluntaria al Contribuyente (del \nimpuesto sobre el ingreso) de Free File \ny la auto-preparación, envíe un correo \nelectrónico a: [email protected] (en \ninglés).\nEmpleadores de Trabajadores Agrícolas Extranjeros con un Visado \n"
] |
f8872.pdf
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1014 Form 8872 (PDF)
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https://www.irs.gov/pub/irs-pdf/f8872.pdf
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[
"Form 8872\n(Rev. October 2014)\nDepartment of the Treasury \nInternal Revenue Service\nPolitical Organization \nReport of Contributions and Expenditures\n▶ Information about Form 8872 and its instructions is available at www.irs.gov/form8872. \n▶ Do not enter social security numbers on this form or any attachments to it as they may be made public. \nOMB No. 1545-0123\nOpen to Public \nInspection\nA\nFor the period beginning\n, 20\nand ending\n, 20\nB\nCheck applicable boxes:\nInitial report\nChange of address\nAmended report\nFinal report\n1\nName of organization \nEmployer identification number \n2\nMailing address (P.O. Box or number, street, and room or suite number)\nCity or town, state or province, country, and ZIP or foreign postal code\n3\nEmail address of organization\n4 Date organization was formed\n5a\nName of custodian of records\n5b Custodian's address\n6a\nName of contact person\n6b Contact person's address\n7\nBusiness address of organization (if different from mailing address shown above). Number, street, and room or suite number\nCity or town, state or province, country, and ZIP or foreign postal code\n8\nType of report (check only one box)\na\nFirst quarterly report (due by April 15)\nb\nSecond quarterly report (due by July 15)\nc\nThird quarterly report (due by October 15)\nd\nYear-end report (due by January 31)\ne\nMid-year report (Non-election year only–due by July 31)\nf\nMonthly report for the month of: \n(due by the 20th day following the month shown above, except the \nDecember report, which is due by January 31)\ng\nPre-election report (due by the 12th or 15th day before the \nelection)\n(1)\nType of election:\n(2)\nDate of election:\n(3)\nFor the state of:\nh\nPost-general election report (due by the 30th day after general \nelection)\n(1)\nDate of election:\n(2)\nFor the state of:\n9\nTotal amount of reported contributions (total from all attached Schedules A)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n9\n10\nTotal amount of reported expenditures (total from all attached Schedules B)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n10\nSign \nHere \nUnder penalties of perjury, I declare that I have examined this report, including accompanying schedules and statements, and to the best of my knowledge and \nbelief, it is true, correct, and complete. \n▲\nSignature of authorized official\n▲\nDate \nFor Paperwork Reduction Act Notice, see separate instructions.\nCat. No. 30406G\nForm 8872 (Rev. 10-2014) \n",
"Form 8872 (Rev. 10-2014)\nSchedule A\nItemized Contributions (DO NOT enter social security numbers on this schedule.)\nSchedule A page \n of \nName of organization \nEmployer identification number \nContributor's name, mailing address and ZIP code\nName of contributor's employer\nContributor's occupation\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nContributor's name, mailing address and ZIP code\nName of contributor's employer\nContributor's occupation\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nContributor's name, mailing address and ZIP code\nName of contributor's employer\nContributor's occupation\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nContributor's name, mailing address and ZIP code\nName of contributor's employer\nContributor's occupation\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nContributor's name, mailing address and ZIP code\nContributor's occupation\nName of contributor's employer\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nContributor's name, mailing address and ZIP code\nName of contributor's employer\nContributor's occupation\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nContributor's name, mailing address and ZIP code\nName of contributor's employer\nContributor's occupation\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nContributor's name, mailing address and ZIP code\nName of contributor's employer\nContributor's occupation\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nContributor's name, mailing address and ZIP code\nName of contributor's employer\nContributor's occupation\nAggregate contributions \nyear-to-date .\n.\n.\n.\n.\n ▶ $\nAmount of contribution\n$\nDate of contribution\nSubtotal of contributions reported on this page only. Enter here and also include this amount in the total on line 9 of \nForm 8872\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n▶ $\nForm 8872 (Rev. 10-2014)\nOpen to Public Inspection\n",
"Form 8872 (Rev. 10-2014)\nSchedule B\nItemized Expenditures (DO NOT enter social security numbers on this schedule.)\nSchedule B page \n of \nName of organization \nEmployer identification number \nRecipient's name, mailing address and ZIP code\nName of recipient's employer\nRecipient's occupation\nAmount of expenditure\n$\nDate of expenditure\nPurpose of expenditure \nRecipient's name, mailing address and ZIP code\nName of recipient's employer\nRecipient's occupation\nAmount of expenditure\n$\nDate of expenditure\nPurpose of expenditure \nRecipient's name, mailing address and ZIP code\nName of recipient's employer\nRecipient's occupation\nAmount of expenditure\n$\nDate of expenditure\nPurpose of expenditure \nRecipient's name, mailing address and ZIP code\nName of recipient's employer\nRecipient's occupation\nAmount of expenditure\n$\nDate of expenditure\nPurpose of expenditure \nRecipient's name, mailing address and ZIP code\nName of recipient's employer\nRecipient's occupation\nAmount of expenditure\n$\nDate of expenditure\nPurpose of expenditure \nRecipient's name, mailing address and ZIP code\nName of recipient's employer\nRecipient's occupation\nAmount of expenditure\n$\nDate of expenditure\nPurpose of expenditure \nSubtotal of expenditures reported on this page only. Enter here and also include this amount in the total on line 10 of \nForm 8872\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n▶ $\nForm 8872 (Rev. 10-2014)\nOpen to Public Inspection\n"
] |
f8281.pdf
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0914 Form 8281 (PDF) 1
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https://www.irs.gov/pub/irs-pdf/f8281.pdf
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[
"Form 8281\n(Rev. September 2014)\nDepartment of the Treasury \nInternal Revenue Service \nInformation Return for Publicly Offered \nOriginal Issue Discount Instruments\n▶ Information about Form 8281 and its instructions is at www.irs.gov/form8281.\nOMB No. 1545-0887\nPart I\nIssuer Information\n1a Issuer’s name\n2 Issuer’s taxpayer identification number\n1b Present address (number, street, apt. or suite no., or P.O. box)\n1c City\n1d State\n1e ZIP code\n3a Name of representative (see instructions)\n3b Telephone number\n3c Present address (if different from issuer’s)\n3d City\n3e State\n3f ZIP code\nPart II\nDebt Instrument Information\n4 CUSIP number\n5a Issue date\n5b SEC registration date\n6 Maturity date\n7 Type of instrument (see instructions)\nFixed rate\nVariable rate\nInflation-indexed\nContingent payment\n8 Issue price (percent of principal amount)\n9a Stated interest rate (see instructions)\n9b \nVariable\n9c \nContingent\n10 Interest payment dates\n11 Amount of OID for entire issue\n12 Yield to maturity\n13 Stated redemption price at maturity of the entire issue. If the redemption price \nof each debt instrument within the issue is other than $1,000, indicate the \nstated redemption price of each debt instrument.\n14 Description of debt instruments\n15 Attach a schedule of OID per $1,000 principal amount for the life of the instrument. If the principal amount is other than $1,000, indicate the actual OID per principal \namount per year. The schedule must be based on a 6-month accrual period. It must show the daily portion of OID for each accrual period and the total OID for each \ncalendar year. For additional requirements, see the instructions.\nPart III\nSignature. Within 30 days after the date of issuance of an OID debt instrument or, if registered with the \nSEC after the date of issuance, within 30 days after the date the OID debt instrument is registered with \nthe SEC, send two copies of Form 8281 and any attachments to: Department of the Treasury, Internal \nRevenue Service, Ogden, UT 84201-0209.\nPlease \nSign \nHere\nUnder penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge\nand belief, it is true, correct, and complete.\n▲\nSignature \nTitle\n▲\nDate\nFor Paperwork Reduction Act Notice, see instructions.\nCat. No. 62024G\nwww.irs.gov/form8281\nForm 8281 (Rev. 9-2014)\n",
"Form 8281 (Rev. 9-2014)\nPage 2 \n[This page left blank intentionally]\n",
"Form 8281 (Rev. 9-2014)\nPage 3 \nGeneral Instructions\nSection references are to the Internal Revenue Code unless \notherwise noted.\nFuture Developments\nFor the latest information about developments related to Form \n8281, such as legislation enacted after this form and \ninstructions were published, go to www.irs.gov/form8281.\nPurpose of Form\nIf you are the issuer of publicly offered debt instruments having \noriginal issue discount (OID), file Form 8281 to provide the \ninformation required by section 1275(c). The reporting \nrequirements of section 1275(c) were designed to facilitate the \nIRS’s collection and publication of the OID information needed \nby brokers and middlemen in order for them to provide \ninformation returns to holders of OID debt instruments. Since \n1984, the IRS has compiled the OID information reported by the \nissuer on Form 8281 and made that information available to the \npublic in the OID tables, which can be found at \nwww.irs.gov/pub1212 by clicking the link under Recent \nDevelopments. \nUse and Availability of Information on This \nForm\nFor each year a debt instrument is outstanding, the following \ninformation reported on Form 8281 will be published in the OID \ntables, which can be found at www.irs.gov/pub1212 by clicking \nthe link under Recent Developments. \n1. The issuer’s name.\n2. The CUSIP number.\n3. The issue date.\n4. The maturity date.\n5. The issue price.\n6. The annual stated interest rate.\n7. The yield to maturity.\n8. The daily OID per $1,000 of maturity value for each accrual \nperiod.\n9. The OID per $1,000 of maturity value for each calendar \nyear.\n10. The total OID as of the beginning of the calendar year.\nWho Must File\nAn issuer of a publicly offered debt instrument (obligation) \nhaving OID, such as a bond, debenture, or note, must file Form \n8281. Publicly offered debt instruments also may include:\n1. Serial obligations.\n2. Debt instruments issued in exchange for other debt \ninstruments or for stock.\n3. A debt instrument sold together with options or warrants \n(an investment unit).\n4. Sinking fund instruments.\n5. Convertible instruments.\nAn obligation registered with the Securities and Exchange \nCommission (SEC) is a publicly offered debt instrument. An \nobligation exempt from SEC registration may be publicly \noffered. See Regulations section 1.1275-1(h).\nExceptions. Do not file this form for the following:\n1. Regular interests of a real estate mortgage investment \nconduit (REMIC) or collateralized debt obligations (CDOs). \nREMICs and issuers of CDOs must file Form 8811, Information \nReturn for Real Estate Mortgage Investment Conduits (REMICs) \nand Issuers of Collateralized Debt Obligations.\n2. Instruments on which OID is de minimis, as defined in \nsection 1273(a)(3) and Regulations section 1.1273-1(d).\n3. Tax-exempt obligations (interest on them is not taxable).\n4. Short-term obligations (those that mature in 1 year or less \nfrom their issue date).\n5. Certificates of deposit (CDs) issued by banks or other \nfinancial institutions.\n6. CDs that are sold by brokers or other middlemen.\n7. A public offering of stripped bonds or stripped coupons, \nincluding instruments issued under the Department of the \nTreasury’s STRIPS program and instruments that constitute \nownership interests in U.S. Treasury securities.\nWhen To File\nFile two Forms 8281 and any attachments within 30 days after \nthe date of issuance of an OID debt instrument or, if registered \nwith the SEC after the date of issuance, within 30 days after the \ndate the OID debt instrument is registered with the SEC. File a \nseparate Form 8281 for each issue.\nDefinitions\nOriginal issue discount means the excess of the stated \nredemption price at maturity over the issue price.\nStated redemption price at maturity means the sum of all \npayments provided by the debt instrument other than qualified \nstated interest payments. Generally, qualified stated interest is \nstated interest unconditionally payable in cash at least annually \nat a single fixed rate.\nIssue price, in the case of publicly offered instruments not \nissued for property, means the first price at which a substantial \namount of such instruments was sold to the public (excluding \nbond houses and brokers).\nFor more information about OID instruments and the OID \nreporting requirements, see Pub. 1212, Guide to Original Issue \nDiscount (OID) Instruments.\nPenalty\nAn issuer who fails to timely file Form 8281 will be subject to a \npenalty of 1% of the aggregate issue price of the debt \ninstruments, unless such failure is due to reasonable cause and \nnot to willful neglect. The maximum penalty with respect to any \nissue is $50,000.\nSpecific Instructions\nPart I. Issuer Information\nFor serial obligations, complete boxes 1 through 3 and attach a \nlist showing the information for boxes 4 through 15 for each \nobligation within the series. For all other obligations, complete \nall boxes.\nTo revise a form, write “Revised” across the top of this form \nand staple a copy of the previously filed form to this form. \nComplete all boxes on this form.\nBoxes 3a-3f. Enter the name, address, and telephone number \nof an official or representative of the issuing company who has \npersonal knowledge of this offering and who can be contacted if \nadditional information is needed.\nPart II. Debt Instrument Information\nBox 4. Enter the Committee on Uniform Security Identification \nProcedures (CUSIP) number assigned to the instruments.\nBox 5a. Enter the date the issue was first sold to the public at \nthe issue price.\nBox 5b. Enter the date the issue was registered with the SEC \nfor OID debt instruments not registered at the time of issuance.\n",
"Form 8281 (Rev. 9-2014)\nPage 4 \nBox 7. Check the appropriate box for type of instrument.\n• A fixed rate debt instrument (including a zero coupon debt \ninstrument),\n• A variable rate debt instrument,\n• A contingent payment debt instrument, or\n• An inflation-indexed debt instrument.\nBox 8. Enter the issue price as a percentage of the principal \namount. For example, XYZ bonds were first offered to the public \nat $900 with a principal amount of $1,000. The issue price of \n$900 expressed as a percentage of principal is 90. If the \npercentage is 100 or more, explain in box 14.\nIf the instrument is part of an investment unit or exchange \noffering, attach a description of the method used to determine \nthe issue price.\nBox 9. Enter the annual stated interest rate or coupon rate. If \nzero, enter “0.” If the interest rate is variable or contingent, \ncheck the appropriate box and explain in box 15 how the rate \nwill be determined.\nBox 10. Enter the interest payment dates. Attach additional \ninformation as necessary.\nBox 11. Enter the amount of OID for the entire issue. For \nexample, if the issue price for the entire issue totals $890,000, \nand the stated redemption price at maturity totals $1 million, the \nOID for the entire issue is $110,000.\nBox 12. Enter the yield to maturity as a percentage rounded to \ntwo decimal points. For example, if the yield to maturity is \n9.5784%, enter 9.58%. The yield to maturity should be based \non semiannual compounding. If the debt instrument is a variable \nrate debt instrument, enter the yield to maturity of the equivalent \nfixed rate debt instrument. If the debt instrument is a contingent \npayment debt instrument, enter the comparable yield.\nBox 14. Provide a complete description of the instrument, \nincluding any terms and conditions (for example, put or call \noptions) that could affect the stated payment schedule of the \ninstrument. For a contingent payment debt instrument, provide \nthe projected payment schedule. In addition, indicate whether \nthe instrument is:\n• Part of an investment unit,\n• Issued in an exchange offering described in section 368(a), or\n• Part of a serial issue.\nYou may provide two copies of the prospectus or offering \ncircular instead of the required description.\nBox 15. You must attach two copies of the schedule of OID per \n$1,000 principal amount for the life of the instrument. However, \nif the principal amount is other than $1,000, indicate the actual \nOID per principal amount per year and specify the actual \nprincipal amount. The schedule must be based on a 6-month \naccrual period. It must show the daily portion of OID for each \naccrual period and the total OID for each calendar year. Also, if \nyou checked box 9b (Variable) or box 9c (Contingent), explain \nhow the interest rate will be determined.\nTo compute the OID allocable to a short accrual period for a \ndebt instrument, you may use any reasonable method. Indicate \nwhat method you used.\nPaperwork Reduction Act Notice. We ask for the information \non this form to carry out the Internal Revenue laws of the United \nStates. You are required to give us the information. We need it \nto ensure that you are complying with these laws and to allow \nus to figure and collect the right amount of tax.\nYou are not required to provide the information requested on \na form that is subject to the Paperwork Reduction Act unless \nthe form displays a valid OMB control number. Books or \nrecords relating to a form or its instructions must be retained as \nlong as their contents may become material in the \nadministration of any Internal Revenue law. Generally, tax \nreturns and return information are confidential, as required by \nsection 6103.\nThe time needed to complete and file this form will vary \ndepending on individual circumstances. The estimated average \ntime is:\nRecordkeeping \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. 5 hr., 15 min.\nLearning about the \nlaw or the form \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. 30 min.\nPreparing, copying, \nassembling, and \nsending the form to the IRS .\n.\n.\n.\n.\n.\n.\n.\n. 37 min.\nIf you have comments concerning the accuracy of these time \nestimates or suggestions for making this form simpler, we would \nbe happy to hear from you. You can send us comments from \nwww.irs.gov/formspubs/. Click on “More Information” and then \non “Give us feedback.” Or you can write to Internal Revenue \nService, Tax Forms and Publications Division, \nSE:W:CAR:MP:TFP, 1111 Constitution Ave., NW, IR-6526, \nWashington, DC 20224. Do not send this form to this address. \nInstead, send Form 8281 to the address shown on the form.\n"
] |
f843.pdf
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0811 Form 843 (PDF)
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https://www.irs.gov/pub/irs-pdf/f843.pdf
|
[
"Form 843 \n(Rev. August 2011) \nDepartment of the Treasury \nInternal Revenue Service \nClaim for Refund and Request for Abatement \n▶ See separate instructions.\nOMB No. 1545-0024 \nUse Form 843 if your claim or request involves: \n(a) \na refund of one of the taxes (other than income taxes or an employer’s claim for FICA tax, RRTA tax, or income tax \nwithholding) or a fee, shown on line 3, \n(b) \nan abatement of FUTA tax or certain excise taxes, or \n(c) \na refund or abatement of interest, penalties, or additions to tax for one of the reasons shown on line 5a. \nDo not use Form 843 if your claim or request involves: \n(a) \nan overpayment of income taxes or an employer’s claim for FICA tax, RRTA tax, or income tax withholding (use the \nappropriate amended tax return), \n(b) \na refund of excise taxes based on the nontaxable use or sale of fuels, or \n(c) \nan overpayment of excise taxes reported on Form(s) 11-C, 720, 730, or 2290. \nName(s) \nYour social security number \nAddress (number, street, and room or suite no.) \nSpouse’s social security number \nCity or town, state, and ZIP code \nEmployer identification number (EIN) \nName and address shown on return if different from above \nDaytime telephone number \n1 \nPeriod. Prepare a separate Form 843 for each tax period or fee year.\nFrom \nto \n2 Amount to be refunded or abated:\n$ \n3 \nType of tax or fee. Indicate the type of tax or fee to be refunded or abated or to which the interest, penalty, or addition to tax \nis related. \nEmployment \nEstate \nGift \nExcise \nIncome \nFee\n4 \nType of penalty. If the claim or request involves a penalty, enter the Internal Revenue Code section on which the penalty is \nbased (see instructions). IRC section: \n5 \na\nInterest, penalties, and additions to tax. Check the box that indicates your reason for the request for refund or abatement. (If\nnone apply, go to line 6.) \nInterest was assessed as a result of IRS errors or delays. \nA penalty or addition to tax was the result of erroneous written advice from the IRS. \nReasonable cause or other reason allowed under the law (other than erroneous written advice) can be shown for not \nassessing a penalty or addition to tax. \nb Date(s) of payment(s) ▶\n6 \nOriginal return. Indicate the type of fee or return, if any, filed to which the tax, interest, penalty, or addition to tax relates. \n706 \n709 \n940 \n941 \n943 \n945 \n990-PF \n1040 \n1120 \n4720 \nOther (specify) ▶\n7 \nExplanation. Explain why you believe this claim or request should be allowed and show the computation of the amount shown \non line 2. If you need more space, attach additional sheets. \nSignature. If you are filing Form 843 to request a refund or abatement relating to a joint return, both you and your spouse must sign the claim. \nClaims filed by corporations must be signed by a corporate officer authorized to sign, and the officer’s title must be shown. \nUnder penalties of perjury, I declare that I have examined this claim, including accompanying schedules and statements, and, to the best of my knowledge and belief, it is \ntrue, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. \nSignature (Title, if applicable. Claims by corporations must be signed by an officer.) \nDate\nSignature (spouse, if joint return) \nDate\nFor Privacy Act and Paperwork Reduction Act Notice, see separate instructions.\nCat. No. 10180R \nForm 843 (Rev. 8-2011)\nPaid \nPreparer \nUse Only\nPrint/Type preparer’s name\nPreparer's signature\nDate\nCheck if \nself-employed\nPTIN\nFirm’s name ▶\nFirm's EIN ▶\nFirm's address ▶\nPhone no.\n"
] |
p5170.pdf
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0714 Publ 5170 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5170.pdf
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[
"T A X P A Y E R\nB I L L o f R I G H T S\nLearn more at taxpayeradvocate.irs.gov/taxpayer-rights\nThe Right to be Informed \nTaxpayers have the right to know what they need to do to comply \nwith the tax laws. They are entitled to clear explanations of the \nlaws and IRS procedures in all tax forms, instructions, publications, \nnotices, and correspondence. They have the right to be informed \nof IRS decisions about their tax accounts and to receive clear \nexplanations of the outcomes.\nThe Right to Quality Service \nTaxpayers have the right to receive prompt, courteous, and \nprofessional assistance in their dealings with the IRS, to be spoken \nto in a way they can easily understand, to receive clear and easily \nunderstandable communications from the IRS, and to speak to a \nsupervisor about inadequate service.\nThe Right to Pay No More than \nthe Correct Amount of Tax\nTaxpayers have the right to pay only the amount of tax legally due, \nincluding interest and penalties, and to have the IRS apply all tax \npayments properly.\nThe Right to Challenge the IRS’s Position \nand Be Heard\nTaxpayers have the right to raise objections and provide additional \ndocumentation in response to formal IRS actions or proposed \nactions, to expect that the IRS will consider their timely objections \nand documentation promptly and fairly, and to receive a response if \nthe IRS does not agree with their position. \nThe Right to Appeal an IRS Decision in an \nIndependent Forum\nTaxpayers are entitled to a fair and impartial administrative appeal of \nmost IRS decisions, including many penalties, and have the right\nto receive a written response regarding the Office of Appeals’ decision. \nTaxpayers generally have the right to take their cases to court. \nThe Right to Finality\nTaxpayers have the right to know the maximum amount of time \nthey have to challenge the IRS’s position as well as the maximum \namount of time the IRS has to audit a particular tax year or collect \na tax debt. Taxpayers have the right to know when the IRS has \nfinished an audit. \nThe Right to Privacy\nTaxpayers have the right to expect that any IRS inquiry, \nexamination, or enforcement action will comply with the law \nand be no more intrusive than necessary, and will respect all due \nprocess rights, including search and seizure protections and will \nprovide, where applicable, a collection due process hearing.\nThe Right to Confidentiality\nTaxpayers have the right to expect that any information they \nprovide to the IRS will not be disclosed unless authorized by the \ntaxpayer or by law. Taxpayers have the right to expect appropriate \naction will be taken against employees, return preparers, and others \nwho wrongfully use or disclose taxpayer return information.\nThe Right to Retain Representation\nTaxpayers have the right to retain an authorized representative \nof their choice to represent them in their dealings with the IRS. \nTaxpayers have the right to seek assistance from a Low Income \nTaxpayer Clinic if they cannot afford representation.\nThe Right to a Fair and Just Tax System\nTaxpayers have the right to expect the tax system to consider facts \nand circumstances that might affect their underlying liabilities, \nability to pay, or ability to provide information timely. Taxpayers \nhave the right to receive assistance from the Taxpayer Advocate \nService if they are experiencing financial difficulty or if the IRS \nhas not resolved their tax issues properly and timely through its \nnormal channels.\nWhat is the Taxpayer Advocate Service?\nThe Taxpayer Advocate Service (TAS) is your voice at the IRS. An independent organization within the IRS, TAS is here to ensure that every \ntaxpayer is treated fairly and that you know and understand your rights. TAS can offer you free help if you have a tax problem that you haven’t \nbeen able to resolve with the IRS. If you qualify, you’ll be assigned to one advocate who will do everything possible to resolve your problem.\nFor more information, including how to contact us, visit taxpayeradvocate.irs.gov or call 1-877-777-4778.\n“\nAt their core, taxpayer rights are human rights.\n” - National Taxpayer Advocate Nina E. Olson \nPublication 5170 (7-2014) Catalog Number 66849X\nDepartment of the Treasury Internal Revenue Service www.irs.gov\n",
"¿Qué es el Servicio del Defensor del Contribuyente? \nEl Servicio del Defensor del Contribuyente (TAS, por sus siglas en inglés) es su voz ante el IRS. Aunque es una organización independiente \ndentro del IRS, TAS está aquí para asegurar que cada contribuyente se trate justamente y que usted conozca y entienda sus derechos. TAS \npuede ofrecerle ayuda gratuita si usted tiene problemas tributarios que no ha podido resolver con el IRS. Si usted reúne los requisitos, se le \nasignará un defensor que hará todo lo posible para resolver su problema. \nPara más información, incluyendo cómo contactarnos, visite taxpayeradvocate.irs.gov o llame al 1-877-777-4778.\nLA CARTA de DERECHOS \ndel CONTRIBUYENTE\nEl Derecho de Estar Informado\nLos contribuyentes tienen el derecho de conocer qué ellos tienen \nque hacer para cumplir con las leyes relacionadas con los impuestos. \nEllos tienen el derecho de recibir explicaciones claras sobre las leyes \ny los procedimientos del IRS en todos los formularios, instrucciones, \npublicaciones, avisos y correspondencia tributaria. Ellos tienen el \nderecho de estar informados sobre las decisiones que el IRS lleva a \ncabo sobre sus cuentas tributarias y de recibir explicaciones claras \nsobre los resultados de dichas decisiones.\nEl Derecho de Recibir Servicio de Calidad\nLos contribuyentes tienen el derecho de recibir ayuda de manera \noportuna, cortés y profesional al tratar con el IRS. Dicha asistencia se \ndebe llevar a cabo de una manera clara para que sea fácil de entender. \nAdemás, también los contribuyentes tienen el derecho de recibir \ncomunicaciones claras y fáciles de entender de parte del IRS y de poder \ncomunicarse con un supervisor para noticar sobre servicio inadecuado. \nEl Derecho de Pagar No Más de la Cantidad \nCorrecta de Impuestos\nLos contribuyentes tienen el derecho de pagar sólo la cantidad de \nimpuestos que se adeuda conforme a la ley, incluyendo intereses y multas; \nademás de que el IRS acredite correctamente los pagos de impuestos.\nEl Derecho de Cuestionar la Posición del IRS y \nde ser Escuchado\nLos contribuyentes tienen el derecho de presentar objeciones \ny proveer documentación adicional como respuesta a acciones \npropuestas o acciones finales llevadas a cabo por el IRS y esperar \nque el IRS considere sus objeciones y documentación presentada a \ntiempo de manera oportuna y justa. Si el IRS no está de acuerdo con \nla posición del contribuyente, los contribuyentes tienen el derecho de \nrecibir una respuesta de parte del IRS. \nEl Derecho de Apelar una Decisión del IRS en \nun Foro Autónomo\nLos contribuyentes tienen el derecho de presentar y recibir una \naudiencia de apelación administrativa justa e imparcial de la mayoría \nde las acciones tomadas por el IRS, incluyendo la determinación de \nmuchas multas, y tienen el derecho de recibir una respuesta escrita \nque explique la decisión de la Oficina de Apelaciones del IRS. \nNormalmente, los contribuyentes tienen el derecho de presentar sus \ncasos ante el foro judicial apropiado. \nEl Derecho de Llegar a una Resolución\nLos contribuyentes tienen el derecho de conocer cuál es la cantidad \nmáxima de tiempo que ellos tienen para cuestionar la posición del \nIRS además de la cantidad máxima de tiempo que el IRS tiene para \nrevisar un año tributario específico o cobrar una deuda de impuestos. \nLos contribuyentes tienen el derecho de conocer cuándo el IRS ha \nterminado una revisión (auditoría). \nEl Derecho de Privacidad\nLos contribuyentes tienen el derecho de esperar que toda pregunta, \ntoda revisión o toda acción de cumplimiento de la ley de parte del \nIRS cumplirá con las leyes y que el IRS no investigará sus asuntos \nmás de lo necesario; además de que el IRS respetará todos los \nderechos al debido proceso, incluyendo la protección en búsquedas e \nincautaciones y proveerá una audiencia de proceso debido del cobro \nen donde corresponda. \nEl Derecho de Confidencialidad\nLos contribuyentes tienen el derecho de esperar que toda \ninformación que ellos le proveen al IRS no se divulgará, a menos \nque el contribuyente lo autorice o se lleve a cabo conforme a la ley. \nLos contribuyentes tienen el derecho de esperar que se tome la acción \napropiada en contra de empleados, preparadores de declaraciones de \nimpuestos y otras personas quienes usan o divulgan información de las \ndeclaraciones de los contribuyentes de manera inescrupulosa. \nEl Derecho de Contratar a un Representante\nLos contribuyentes tienen el derecho de escoger y contratar a un \nrepresentante autorizado para que éste los represente en sus gestiones \ncon el IRS. Los contribuyentes tienen el derecho de recibir ayuda de \nparte de un Centro (Clínica) para Contribuyentes de Bajos Ingresos \nsi no pueden pagar a una persona que los represente. \nEl Derecho de Tener un Sistema de Impuestos \nque sea Justo y Adecuado\nLos contribuyentes tienen el derecho de esperar que el sistema de \nimpuestos considere los hechos y circunstancias que podrían afectar \nla causa de sus obligaciones, capacidad para pagar o para proveer \ninformación de manera oportuna. Los contribuyentes tienen el \nderecho de recibir ayuda de parte del Servicio del Defensor del \nContribuyente si están enfrentando una dicultad financiera o si \nel IRS no ha resuelto sus asuntos tributarios apropiada y \noportunamente a través de las vías normales. \n “En su esencia, los derechos de los contribuyentes son derechos humanos.\n” \n- Nina E. Olson, Defensora Nacional del Contribuyente\nObtenga más información sobre sus derechos en taxpayeradvocate.irs.gov/taxpayer-rights\nPublication 5170 (7-2014) Catalog Number 66849X\nDepartment of the Treasury Internal Revenue Service www.irs.gov\n"
] |
f8849s6.pdf
|
0813 Form 8849 (Schedule 6) (PDF)
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https://www.irs.gov/pub/irs-pdf/f8849s6.pdf
|
[
"Schedule 6 \n(Form 8849)\n(Rev. August 2013)\nDepartment of the Treasury \nInternal Revenue Service \nOther Claims\n▶ Attach to Form 8849. \n▶ Information about Schedule 6 (Form 8849) and its instructions, is at www.irs.gov/form8849. \nOMB No. 1545-1420\nName as shown on Form 8849 \nEIN or SSN \nTotal refund (total of lines 1–5) \n$ \nEnter the earliest and latest dates of the events included in this claim. Enter in MMDDYYYY format. \nEarliest date ▶\nLatest date ▶\nTax \nAmount of refund \nCRN \n1 \n$ \n2 \n3 \n4 \n5 \nUse the space below for an explanation of each tax claimed. \nFor claims under section 6416(b)(2) relating to certain uses and resales of certain articles subject to manufacturers or retailers \ntaxes, claimant certifies that it sold the article at a tax-excluded price, repaid the amount of tax to the ultimate vendor, or has \nobtained the written consent of the ultimate vendor to make the claim; and has the required supporting evidence. \nFor Privacy Act and Paperwork Reduction Act Notice, see Form 8849 instructions.\nCat. No. 27454M\nSchedule 6 (Form 8849) (Rev. 8-2013)\n"
] |
p1544.pdf
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0914 Publ 1544 (PDF)
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https://www.irs.gov/pub/irs-pdf/p1544.pdf
|
[
"Future Developments\nFor the latest information about developments \nrelated to Publication 1544, such as legislation \nenacted \nafter \nit \nwas \npublished, \ngo \nto \nwww.irs.gov/pub1544.\nWhat's New\nElectronic filing. You may be able to file Form \n8300 by using FinCEN's Bank Secrecy Act \n(BSA) Electronic Filing (E-Filing) System. See \nWhen, Where, and What To File, later.\nIntroduction\nIf, in a 12-month period, you receive more than \n$10,000 in cash from one buyer as a result of a \ntransaction in your trade or business, you must \nreport it to the Internal Revenue Service (IRS) \nand the Financial Crimes Enforcement Network \n(FinCEN) on Form 8300, Report of Cash Pay\nments Over $10,000 Received in a Trade or \nBusiness.\nThis publication explains why, when, and \nwhere to report these cash payments. It also \ndiscusses the substantial penalties for not re-\nporting them.\nSome organizations do not have to file Form \n8300, including financial institutions and casi-\nnos who must file FinCEN Report 112, BSA \nCurrency Transaction Report (BCTR). They are \nnot discussed in this publication.\nThis publication explains key issues and \nterms related to Form 8300. You should also \nread the instructions attached to the form. They \nexplain what to enter on each line.\nWhy Report These \nPayments?\nDrug dealers and smugglers often use large \ncash payments to “launder” money from illegal \nactivities. Laundering means converting “dirty” \nor illegally-gained money to “clean” money.\nThe government can often trace this laun-\ndered money through the payments you report. \nLaws passed by Congress require you to report \nthese payments. Your compliance with these \nlaws provides valuable information that can \nstop those who evade taxes and those who \nprofit from the drug trade and other criminal ac-\ntivities.\nThe USA PATRIOT Act of 2001 increased \nthe scope of these laws to help trace funds \nused for terrorism.\nWho Must File Form \n8300?\nGenerally, any person in a trade or business \nwho receives more than $10,000 in cash in a \nsingle transaction or in related transactions \nmust file Form 8300.\nFor example, you may have to file Form \n8300 if you are a dealer in jewelry, furniture, \nboats, aircraft, or automobiles; a pawnbroker; \nan attorney; a real estate broker; an insurance \ncompany; or a travel agency. Special rules for \nDepartment \nof the \nTreasury\nInternal \nRevenue \nService\nPublication 1544\n(Rev. September 2014)\nCat. No. 12696A\nReporting Cash \nPayments of \nOver $10,000\n(Received in a Trade or \nBusiness)\nGet forms and other information\nfaster and easier at IRS.gov\nSep 11, 2014\n",
"clerks of federal or state courts are discussed \nlater under Bail received by court clerks.\nHowever, you do not have to file Form 8300 \nif the transaction is not related to your trade or \nbusiness. For example, if you own a jewelry \nstore and sell your personal automobile for \nmore than $10,000 in cash, you would not sub-\nmit a Form 8300 for that transaction.\nTransaction defined. A “transaction” occurs \nwhen:\nGoods, services, or property are sold;\nProperty is rented;\nCash is exchanged for other cash;\nA contribution is made to a trust or escrow \naccount;\nA loan is made or repaid; or\nCash is converted to a negotiable instru-\nment, such as a check or a bond.\nPerson defined. A “person” includes an indi-\nvidual, a company, a corporation, a partnership, \nan association, a trust, or an estate.\nExempt organizations, including employee \nplans, are also “persons.” However, exempt or-\nganizations do not have to file Form 8300 for a \nmore-than-$10,000 charitable cash contribution \nthey receive since it is not received in the \ncourse of a trade or business.\nForeign transactions. You do not have to file \nForm 8300 if the entire transaction (including \nthe receipt of cash) takes place outside of:\nThe 50 states,\nThe District of Columbia,\nPuerto Rico, or\nA possession or territory of the United \nStates.\nHowever, you must file Form 8300 if any part of \nthe transaction (including the receipt of cash) \noccurs in Puerto Rico or a possession or terri-\ntory of the United States and you are subject to \nthe Internal Revenue Code.\nBail received by court clerks. Any clerk of a \nfederal or state court who receives more than \n$10,000 in cash as bail for an individual \ncharged with any of the following criminal offen-\nses must file Form 8300:\n1. Any federal offense involving a controlled \nsubstance,\n2. Racketeering,\n3. Money laundering, and\n4. Any state offense substantially similar to \n(1), (2), or (3) above.\nFor more information about the rules that apply \nto court clerks, see Section 1.6050I-2 of the In-\ncome Tax Regulations.\nWhat Payments Must Be \nReported?\nYou must file Form 8300 to report cash paid to \nyou if it is:\n1. Over $10,000,\n2. Received as:\na. One lump sum of over $10,000,\nb. Installment payments that cause the \ntotal cash received within 1 year of the \ninitial payment to total more than \n$10,000, or\nc. Other previously unreportable pay-\nments that cause the total cash re-\nceived within a 12-month period to to-\ntal more than $10,000,\n3. Received in the course of your trade or \nbusiness,\n4. Received from the same buyer (or agent), \nand\n5. Received in a single transaction or in rela-\nted transactions (defined later).\nWhat Is Cash?\nCash is:\n1. The coins and currency of the United \nStates (and any other country), and\n2. A cashier's check, bank draft, traveler's \ncheck, or money order you receive, if it \nhas a face amount of $10,000 or less and \nyou receive it in:\na. A designated reporting transaction \n(defined later), or\nb. Any transaction in which you know the \npayer is trying to avoid the reporting of \nthe transaction on Form 8300.\nCash may include a cashier's check \neven if it is called a “treasurer's check” \nor “bank check.”\nCash does not include a check drawn on an \nindividual's personal account.\nA cashier's check, bank draft, traveler's \ncheck, or money order with a face amount of \nmore than $10,000 is not treated as cash. \nThese items are not defined as cash and you \ndo not have to file Form 8300 when you receive \nthem because, if they were bought with cur-\nrency, the bank or other financial institution that \nissued them must file a report on FinCEN Re-\nport 112.\nExample 1. You are a coin dealer. Bob \nGreen buys gold coins from you for $13,200. \nHe pays for them with $6,200 in U.S. currency \nand a cashier's check having a face amount of \n$7,000. The cashier's check is treated as cash. \nYou have received more than $10,000 cash \nand must file Form 8300 for this transaction.\nExample 2. You are a retail jeweler. Mary \nNorth buys an item of jewelry from you for \n$12,000. She pays for it with a personal check \npayable to you in the amount of $9,600 and \ntraveler's checks totaling $2,400. Because the \npersonal check is not treated as cash, you have \nnot received more than $10,000 cash in the \ntransaction. You do not have to file Form 8300.\nExample 3. You are a boat dealer. Emily \nJones buys a boat from you for $16,500. She \npays for it with a cashier's check payable to you \nin the amount of $16,500. The cashier's check \nis not treated as cash because its face amount \nis more than $10,000. You do not have to file \nForm 8300 for this transaction.\nDesignated Reporting Transaction\nA designated reporting transaction is the retail \nsale of any of the following:\nCAUTION\n!\n1. A consumer durable, such as an automo-\nbile or boat. A consumer durable is prop-\nerty, other than land or buildings, that:\na. Is suitable for personal use,\nb. Can reasonably be expected to last at \nleast 1 year under ordinary use,\nc. Has a sales price of more than \n$10,000, and\nd. Can be seen or touched (tangible \nproperty).\nFor example, a $20,000 car is a con-\nsumer durable, but a $20,000 dump truck \nor factory machine is not. The car is a con-\nsumer durable even if you sell it to a buyer \nwho will use it in a business.\n2. A collectible (for example, a work of art, \nrug, antique, metal, gem, stamp, or coin).\n3. Travel or entertainment, if the total sales \nprice of all items sold for the same trip or \nentertainment event in one transaction (or \nrelated transactions) is more than \n$10,000.\nTo figure the total sales price of all items \nsold for a trip or entertainment event, you in-\nclude the sales price of items such as airfare, \nhotel rooms, and admission tickets.\nExample. You are a travel agent. Ed John-\nson asks you to charter a passenger airplane to \ntake a group to a sports event in another city. \nHe also asks you to book hotel rooms and ad-\nmission tickets for the group. In payment, he \ngives you two money orders, each for $6,000. \nYou have received more than $10,000 cash in \nthis designated reporting transaction. You must \nfile Form 8300.\nRetail sale. The term “retail sale” means any \nsale made in the course of a trade or business \nthat consists mainly of making sales to ultimate \nconsumers.\nThus, if your business consists mainly of \nmaking sales to ultimate consumers, all sales \nyou make in the course of that business are re-\ntail sales. This includes any sales of items that \nwill be resold.\nBroker or intermediary. A designated report-\ning transaction includes the retail sale of items \n(1), (2), or (3) of the preceding list, even if the \nfunds are received by a broker or other interme-\ndiary, rather than directly by the seller.\nExceptions to Definition of Cash\nA cashier's check, bank draft, traveler's check, \nor money order you received in a designated re-\nporting transaction is not treated as cash if one \nof the following exceptions applies.\nException for certain bank loans. A cash-\nier's check, bank draft, traveler's check, or \nmoney order is not treated as cash if it is the \nproceeds from a bank loan. As proof that it is \nfrom a bank loan, you may rely on a copy of the \nloan document, a written statement or lien in-\nstruction from the bank, or similar proof.\nExample. You are a car dealer. Mandy \nWhite buys a new car from you for $11,500. \nShe pays you with $2,000 of U.S. currency and \na cashier's check for $9,500 payable to you and \nPage 2 \nPublication 1544 (September 2014)\n",
"her. You can tell that the cashier's check is the \nproceeds of a bank loan because it includes in-\nstructions to you to have a lien put on the car as \nsecurity for the loan. For this reason, the cash-\nier's check is not treated as cash. You do not \nhave to file Form 8300 for the transaction.\nException for certain installment sales. A \ncashier's check, bank draft, traveler's check, or \nmoney order is not treated as cash if it is re-\nceived in payment on a promissory note or an \ninstallment sales contract (including a lease that \nis considered a sale for federal tax purposes). \nHowever, this exception applies only if:\n1. You use similar notes or contracts in other \nsales to ultimate consumers in the ordi-\nnary course of your trade or business, and\n2. The total payments for the sale that you \nreceive on or before the 60th day after the \nsale are 50% or less of the purchase price.\nException for certain down payment plans. \nA cashier's check, bank draft, traveler's check, \nor money order is not treated as cash if you re-\nceived it in payment for a consumer durable or \ncollectible, and all three of the following state-\nments are true.\n1. You receive it under a payment plan re-\nquiring:\na. One or more down payments, and\nb. Payment of the rest of the purchase \nprice by the date of sale.\n2. You receive it more than 60 days before \nthe date of sale.\n3. You use payment plans with the same or \nsubstantially similar terms when selling to \nultimate consumers in the ordinary course \nof your trade or business.\nException for travel and entertainment. A \ncashier's check, bank draft, traveler's check, or \nmoney order received for travel or entertain-\nment is not treated as cash if all three of the fol-\nlowing statements are true.\n1. You receive it under a payment plan re-\nquiring:\na. One or more down payments, and\nb. Payment of the rest of the purchase \nprice by the earliest date that any \ntravel or entertainment item (such as \nairfare) is furnished for the trip or en-\ntertainment event.\n2. You receive it more than 60 days before \nthe date on which the final payment is due.\n3. You use payment plans with the same or \nsubstantially similar terms when selling to \nultimate consumers in the ordinary course \nof your trade or business.\nTaxpayer Identification \nNumber (TIN)\nYou must furnish the correct TIN of the person \nor persons from whom you receive the cash. If \nthe transaction is conducted on the behalf of \nanother person or persons, you must furnish the \nTIN of that person or persons. If you do not \nknow a person's TIN, you have to ask for it. You \nmay be subject to penalties for an incorrect or \nmissing TIN.\nThere are three types of TINs.\n1. The TIN for an individual, including a sole \nproprietor, is the individual's social secur-\nity number (SSN).\n2. The TIN for a nonresident alien individual \nwho needs a TIN but is not eligible to get \nan SSN is an IRS individual taxpayer iden-\ntification number (ITIN). An ITIN has nine \ndigits, similar to an SSN.\n3. The TIN for other persons, including cor-\nporations, partnerships, and estates, is the \nemployer identification number (EIN).\nException. You are not required to provide the \nTIN of a person who is a nonresident alien indi-\nvidual or a foreign organization if that person or \nforeign organization:\n1. Does not have income effectively connec-\nted with the conduct of a U.S. trade or \nbusiness;\n2. Does not have an office or place of busi-\nness, or a fiscal or paying agent in the Uni-\nted States;\n3. Does not file a federal tax return;\n4. Does not furnish a withholding certificate \ndescribed in §1.1441-1(e)(2) or (3) or \n1.1441-5(c)(2)(iv) or (3)(iii) to the extent \nrequired under 1.1441-1(e)(4)(vii);\n5. Does not have to furnish a TIN on any re-\nturn, statement, or other document as re-\nquired by the income tax regulations under \nsection 897 or 1445; or\n6. In the case of a nonresident alien individ-\nual, the individual has not chosen to file a \njoint federal income tax return with a \nspouse who is a U.S. citizen or resident.\nWhat Is a Related \nTransaction?\nAny transactions between a buyer (or an agent \nof the buyer) and a seller that occur within a \n24-hour period are related transactions. If you \nreceive over $10,000 in cash during two or \nmore transactions with one buyer in a 24-hour \nperiod, you must treat the transactions as one \ntransaction and report the payments on Form \n8300.\nFor example, if you sell two products for \n$6,000 each to the same customer in 1 day and \nthe customer pays you in cash, these are rela-\nted transactions. Because they total $12,000 \n(more than $10,000), you must file Form 8300.\nMore than 24 hours between transactions. \nTransactions are related even if they are more \nthan 24 hours apart if you know, or have reason \nto know, that each is one of a series of connec-\nted transactions.\nFor example, you are a travel agent. A client \npays you $8,000 in cash for a trip. Two days \nlater, the same client pays you $3,000 more in \ncash to include another person on the trip. \nThese are related transactions, and you must \nfile Form 8300 to report them.\nWhat About Suspicious \nTransactions?\nIf you receive $10,000 or less in cash, you may \nvoluntarily file Form 8300 if the transaction ap-\npears to be suspicious.\nA transaction is suspicious if it appears that \na person is trying to cause you not to file Form \n8300 or is trying to cause you to file a false or \nincomplete Form 8300, or if there is a sign of \npossible illegal activity.\nIf you are suspicious, you are encouraged to \ncall the local IRS Criminal Investigation Division \nas soon as possible. Or, you can call the Fin-\nCEN Financial Institution Hotline toll free at \n1-866-556-3974.\nWhen, Where, and What \nTo File\nThe amount you receive and when you receive \nit determine when you must file. Generally, you \nmust file Form 8300 within 15 days after receiv-\ning a payment. If the Form 8300 due date (the \n15th or last day you can timely file the form) falls \non a Saturday, Sunday, or legal holiday, it is de-\nlayed until the next day that is not a Saturday, \nSunday, or legal holiday.\nMore than one payment. In some transac-\ntions, the buyer may arrange to pay you in cash \ninstallment payments. If the first payment is \nmore than $10,000, you must file Form 8300 \nwithin 15 days. If the first payment is not more \nthan $10,000, you must add the first payment \nand any later payments made within 1 year of \nthe first payment. When the total cash pay-\nments are more than $10,000, you must file \nForm 8300 within 15 days.\nAfter you file Form 8300, you must start a \nnew count of cash payments received from that \nbuyer. If you receive more than $10,000 in addi-\ntional cash payments from that buyer within a \n12-month period, you must file another Form \n8300. You must file the form within 15 days of \nthe payment that causes the additional pay-\nments to total more than $10,000.\nIf you are already required to file Form 8300 \nand you receive additional payments within the \n15 days before you must file, you can report all \nthe payments on one form.\nExample. On January 10, you receive a \ncash payment of $11,000. You receive addi-\ntional cash payments on the same transaction \nof $4,000 on February 15, $5,000 on March 20, \nand $6,000 on May 12. By January 25, you \nmust file a Form 8300 for the $11,000 payment. \nBy May 27, you must file an additional Form \n8300 for the additional payments that total \n$15,000.\nAmending a Report? If you are amending a \nreport, check box 1a at the top of Form 8300. \nComplete the form in its entirety (Parts I-IV) and \ninclude the amended information. Do not attach \na copy of the original report.\nWhere to file. Mail the form to the address \ngiven in the Form 8300 instructions.\nYou may file the form electronically by using \nFinCEN's BSA E-Filing System. To get more in-\nformation, visit bsaefiling.fincen.treas.gov.\nPublication 1544 (September 2014)\n Page 3\n",
"Required statement to buyer. You must give \na written or electronic statement to each person \nnamed on any Form 8300 you must file. You \ncan give the statement electronically only if the \nrecipient agrees to receive it in that format. The \nstatement must show the name and address of \nyour business, the name and phone number of \na contact person, and the total amount of re-\nportable cash you received from the person \nduring the year. It must state that you are also \nreporting this information to the IRS.\nYou must send this statement to the buyer \nby January 31 of the year after the year in which \nyou received the cash that caused you to file \nthe form.\nYou must keep a copy of every Form \n8300 you file for 5 years.\nExamples\nExample 1. Pat Brown is the sales man-\nager for Small Town Cars. On January 6, 2015, \nJane Smith buys a new car from Pat and pays \n$18,000 in cash. Pat asks for identification from \nJane to get the necessary information to com-\nplete Form 8300. A filled-in form is shown in this \npublication.\nPat must mail the form to the address shown \nin the form's instructions or file the form elec-\ntronically using FinCen's BSA E-Filing System \nby January 21, 2015. He must also send a \nstatement to Jane by January 31, 2016.\nExample 2. Using the same facts given in \nExample 1, suppose Jane had arranged to \nmake cash payments of $6,000 each on Janu-\nary 6, February 6, and March 6. Pat would have \nto file a Form 8300 by February 23 (17 days af-\nter receiving total cash payments within 1 year \nover $10,000 because February 21, 2015, is a \nSaturday). Pat would not have to report the re-\nmaining $6,000 cash payment because it is not \nmore than $10,000. However, he could report it \nif he felt it was a suspicious transaction.\nPenalties\nThere are civil penalties for failure to:\nFile a correct Form 8300 by the date it is \ndue, and\nProvide the required statement to those \nnamed in the Form 8300.\nIf you intentionally disregard the requirement \nto file a correct Form 8300 by the date it is due, \nthe penalty is the greater of:\n1. $25,000, or\n2. The amount of cash you received and \nwere required to report (up to $100,000).\nThere are criminal penalties for:\nWillful failure to file Form 8300,\nWillfully filing a false or fraudulent Form \n8300,\nStopping or trying to stop Form 8300 from \nbeing filed, and\nSetting up, helping to set up, or trying to \nset up a transaction in a way that would \nmake it seem unnecessary to file Form \n8300.\nIf you willfully fail to file Form 8300, you can \nbe fined up to $250,000 for individuals \nRECORDS\n($500,000 for corporations) or sentenced to up \nto 5 years in prison, or both. These dollar \namounts are based on Section 3571 of Title 18 \nof the U.S. Code.\nThe penalties for failure to file may also ap-\nply to any person (including a payer) who at-\ntempts to interfere with or prevent the seller (or \nbusiness) from filing a correct Form 8300. This \nincludes any attempt to structure the transac-\ntion in a way that would make it seem unneces-\nsary to file Form 8300. Structuring means \nbreaking up a large cash transaction into small \ncash transactions.\nHow To Get Tax Help\nWhether it's help with a tax issue, preparing \nyour tax return or a need for a free publication \nor form, get the help you need the way you want \nit: online, use a smart phone, call or walk in to \nan IRS office or volunteer site near you.\nFree help with your tax return. You can get \nfree help preparing your return nationwide from \nIRS-certified volunteers. The Volunteer Income \nTax \nAssistance \n(VITA) \nprogram \nhelps \nlow-to-moderate income, elderly, people with \ndisabilities, and limited English proficient tax-\npayers. The Tax Counseling for the Elderly \n(TCE) program helps taxpayers age 60 and \nolder with their tax returns. Most VITA and TCE \nsites offer free electronic filing and all volun-\nteers will let you know about credits and deduc-\ntions you may be entitled to claim. In addition, \nsome VITA and TCE sites provide taxpayers \nthe opportunity to prepare their own return with \nhelp from an IRS-certified volunteer. To find the \nnearest VITA or TCE site, you can use the VITA \nLocator Tool on IRS.gov, download the IRS2Go \napp, or call 1-800-906-9887.\nAs part of the TCE program, AARP offers \nthe Tax-Aide counseling program. To find the \nnearest AARP Tax-Aide site, visit AARP's web-\nsite at www.aarp.org/money/taxaide or call \n1-888-227-7669. For more information on these \nprograms, go to IRS.gov and enter “VITA” in the \nsearch box.\nInternet. IRS.gov and IRS2Go are ready \nwhen you are —24 hours a day, 7 days a week.\nDownload the free IRS2Go app from the \niTunes app store or from Google Play. Use \nit to check your refund status, order tran-\nscripts of your tax returns or tax account, \nwatch the IRS YouTube channel, get IRS \nnews as soon as it's released to the public, \nsubscribe to filing season updates or daily \ntax tips, and follow the IRS Twitter news \nfeed, @IRSnews, to get the latest federal \ntax news, including information about tax \nlaw changes and important IRS programs.\nCheck the status of your 2013 refund with \nthe Where's My Refund? application on \nIRS.gov or download the IRS2Go app and \nselect the Refund Status option. The IRS \nissues more than 9 out of 10 refunds in \nless than 21 days. Using these applica-\ntions, you can start checking on the status \nof your return within 24 hours after we re-\nceive your e-filed return or 4 weeks after \nyou mail a paper return. You will also be \ngiven a personalized refund date as soon \nas the IRS processes your tax return and \napproves your refund. The IRS updates \nWhere's My Refund? every 24 hours, usu-\nally overnight, so you only need to check \nonce a day.\nUse the Interactive Tax Assistant (ITA) to \nresearch your tax questions. No need to \nwait on the phone or stand in line. The ITA \nis available 24 hours a day, 7 days a week, \nand provides you with a variety of tax infor-\nmation related to general filing topics, de-\nductions, credits, and income. When you \nreach the response screen, you can print \nthe entire interview and the final response \nfor your records. New subject areas are \nadded on a regular basis.\nAnswers not provided through ITA may be \nfound in Tax Trails, one of the Tax Topics \non IRS.gov which contain general individ-\nual and business tax information or by \nsearching the IRS Tax Map, which in-\ncludes an international subject index. \nYou can use the IRS Tax Map, to search \npublications and instructions by topic or \nkeyword. The IRS Tax Map integrates \nforms and publications into one research \ntool and provides single-point access to \ntax law information by subject. When the \nuser searches the IRS Tax Map, they will \nbe provided with links to related content in \nexisting IRS publications, forms and in-\nstructions, questions and answers, and \nTax Topics.\nComing this filing season, you can immedi-\nately view and print for free all 5 types of \nindividual federal tax transcripts (tax re-\nturns, tax account, record of account, \nwage and income statement, and certifica-\ntion of non-filing) using Get Transcript. \nYou can also ask the IRS to mail a return \nor an account transcript to you. Only the \nmail option is available by choosing the \nTax Records option on the IRS2Go app by \nselecting Mail Transcript on IRS.gov or by \ncalling 1-800-908-9946. Tax return and tax \naccount transcripts are generally available \nfor the current year and the past three \nyears.\nDetermine if you are eligible for the EITC \nand estimate the amount of the credit with \nthe Earned Income Tax Credit (EITC) \nAssistant.\nVisit Understanding Your IRS Notice or \nLetter to get answers to questions about a \nnotice or letter you received from the IRS.\nIf you received the First Time Homebuyer \nCredit, you can use the First Time \nHomebuyer Credit Account Lookup tool \nfor information on your repayments and ac-\ncount balance.\nCheck the status of your amended return \nusing Where's My Amended Return? Go to \nIRS.gov and enter Where's My Amended \nReturn? in the search box. You can gener-\nally expect your amended return to be pro-\ncessed up to 12 weeks from the date we \nreceive it. It can take up to 3 weeks from \nthe date you mailed it to show up in our \nsystem.\nMake a payment using one of several safe \nand convenient electronic payment options \navailable on IRS.gov. Select the Payment \ntab on the front page of IRS.gov for more \ninformation.\nDetermine if you are eligible and apply for \nan online payment agreement, if you owe \nmore tax than you can pay today.\nFigure your income tax withholding with \nthe IRS Withholding Calculator on IRS.gov. \nUse it if you've had too much or too little \nwithheld, your personal situation has \nPage 4 \nPublication 1544 (September 2014)\n",
"changed, you're starting a new job or you \njust want to see if you're having the right \namount withheld.\nDetermine if you might be subject to the Al-\nternative Minimum Tax by using the \nAlternative Minimum Tax Assistant on \nIRS.gov.\nRequest an Electronic Filing PIN by go-\ning to IRS.gov and entering Electronic Fil\ning PIN in the search box.\nDownload forms, instructions and publica-\ntions, including accessible versions for \npeople with disabilities.\nLocate the nearest Taxpayer Assistance \nCenter (TAC) using the Office Locator tool \non IRS.gov, or choose the Contact Us op-\ntion on the IRS2Go app and search Local \nOffices. An employee can answer ques-\ntions about your tax account or help you \nset up a payment plan. Before you visit, \ncheck the Office Locator on IRS.gov, or \nLocal Offices under Contact Us on IRS2Go \nto confirm the address, phone number, \ndays and hours of operation, and the serv-\nices provided. If you have a special need, \nsuch as a disability, you can request an ap-\npointment. Call the local number listed in \nthe Office Locator, or look in the phone \nbook under United States Government, In-\nternal Revenue Service.\nApply for an Employer Identification \nNumber (EIN). Go to IRS.gov and enter \nApply for an EIN in the search box.\nRead the Internal Revenue Code, regula-\ntions, or other official guidance.\nRead Internal Revenue Bulletins.\nSign up to receive local and national tax \nnews and more by email. Just click on \n“subscriptions” above the search box on \nIRS.gov and choose from a variety of op-\ntions.\nPhone. You can call the IRS, or you can carry \nit in your pocket with the IRS2Go app on your \nsmart phone or tablet. Download the free \nIRS2Go app from the iTunes app store or from \nGoogle Play.\nCall to locate the nearest volunteer help \nsite, 1-800-906-9887 or you can use the \nVITA Locator Tool on IRS.gov, or down-\nload the IRS2Go app. Low-to-moderate in-\ncome, elderly, people with disabilities, and \nlimited English proficient taxpayers can get \nfree help with their tax return from the na-\ntionwide Volunteer Income Tax Assistance \n(VITA) program. The Tax Counseling for \nthe Elderly (TCE) program helps taxpayers \nage 60 and older with their tax returns. \nMost VITA and TCE sites offer free elec-\ntronic filing. Some VITA and TCE sites pro-\nvide IRS-certified volunteers who can help \nprepare your tax return. Through the TCE \nprogram, AARP offers the Tax-Aide coun-\nseling program; call 1-888-227-7669 to \nfind the nearest Tax-Aide location.\nCall the automated Where's My Refund? \ninformation hotline to check the status of \nyour 2013 refund 24 hours a day, 7 days a \nweek at 1-800-829-1954. If you e-file, you \ncan start checking on the status of your re-\nturn within 24 hours after the IRS receives \nyour tax return or 4 weeks after you've \nmailed a paper return. The IRS issues \nmore than 9 out of 10 refunds in less than \n21 days. Where's My Refund? will give you \na personalized refund date as soon as the \nIRS processes your tax return and ap-\nproves your refund. Before you call this au-\ntomated hotline, have your 2013 tax return \nhandy so you can enter your social secur-\nity number, your filing status, and the exact \nwhole dollar amount of your refund. The \nIRS updates Where's My Refund? every \n24 hours, usually overnight, so you only \nneed to check once a day. Note, the above \ninformation is for our automated hotline. \nOur live phone and walk-in assistors can \nresearch the status of your refund only if \nit's been 21 days or more since you filed \nelectronically or more than 6 weeks since \nyou mailed your paper return.\nCall the Amended Return Hotline, \n1-866-464-2050, to check the status of \nyour amended return. You can generally \nexpect your amended return to be pro-\ncessed up to 12 weeks from the date we \nreceive it. It can take up to 3 weeks from \nthe date you mailed it to show up in our \nsystem.\nCall 1-800-TAX-FORM (1-800-829-3676) \nto order current-year forms, instructions, \npublications, and prior-year forms and in-\nstructions (limited to 5 years). You should \nreceive your order within 10 business \ndays.\nCall TeleTax, 1-800-829-4477, to listen to \npre-recorded messages covering general \nand business tax information. If, between \nJanuary and April 15, you still have ques-\ntions about the Form 1040, 1040A, or \n1040EZ (like filing requirements, depend-\nents, credits, Schedule D, pensions and \nIRAs or self-employment taxes), call \n1-800-829-1040.\nCall using TTY/TDD equipment, \n1-800-829-4059 to ask tax questions or or-\nder forms and publications. The TTY/TDD \ntelephone number is for people who are \ndeaf, hard of hearing, or have a speech \ndisability. These individuals can also con-\ntact the IRS through relay services such as \nthe Federal Relay Service.\nWalk-in. You can find a selection of forms, \npublications and services — in-person.\nProducts. You can walk in to some post of-\nfices, libraries, and IRS offices to pick up \ncertain forms, instructions, and publica-\ntions. Some IRS offices, libraries, and city \nand county government offices have a col-\nlection of products available to photocopy \nfrom reproducible proofs.\nServices. You can walk in to your local \nTAC for face-to-face tax help. An em-\nployee can answer questions about your \ntax account or help you set up a payment \nplan. Before visiting, use the Office Locator \ntool on IRS.gov, or choose the Contact Us \noption on the IRS2Go app and search Lo\ncal Offices for days and hours of operation, \nand services provided.\nMail. You can send your order for forms, in-\nstructions, and publications to the address be-\nlow. You should receive a response within 10 \nbusiness days after your request is received.\nInternal Revenue Service\n1201 N. Mitsubishi Motorway\nBloomington, IL 61705-6613\n \nThe Taxpayer Advocate Service Is Here to Help \nYou. The Taxpayer Advocate Service (TAS) \nis your voice at the IRS. Our job is to ensure \nthat every taxpayer is treated fairly and that you \nknow and understand your rights.\n \nWhat can TAS do for you? We can offer you \nfree help with IRS problems that you can't re-\nsolve on your own. We know this process can \nbe confusing, but the worst thing you can do is \nnothing at all! TAS can help if you can't resolve \nyour tax problem and:\nYour problem is causing financial difficul-\nties for you, your family, or your business.\nYou face (or your business is facing) an \nimmediate threat of adverse action.\nYou've tried repeatedly to contact the IRS \nbut no one has responded, or the IRS \nhasn't responded by the date promised.\n \nIf you qualify for our help, you'll be assigned to \none advocate who'll be with you at every turn \nand will do everything possible to resolve your \nproblem. Here's why we can help:\nTAS is an independent organization within \nthe IRS.\nOur advocates know how to work with the \nIRS.\nOur services are free and tailored to meet \nyour needs.\nWe have offices in every state, the District \nof Columbia, and Puerto Rico.\n \nHow can you reach us? If you think TAS can \nhelp you, call your local advocate, whose num-\nber is in your local directory and at Taxpayer \nAdvocate, or call us toll-free at 1-877-777-4778.\n \nHow else does TAS help taxpayers?\n \nTAS also works to resolve large-scale, systemic \nproblems that affect many taxpayers. If you \nknow of one of these broad issues, please re-\nport it to us through our Systemic Advocacy \nManagement System.\nLow Income Taxpayer Clinics. Low Income \nTaxpayer Clinics (LITCs) serve individuals \nwhose income is below a certain level and need \nto resolve tax problems such as audits, appeals \nand tax collection disputes. Some clinics can \nprovide information about taxpayer rights and \nresponsibilities in different languages for indi-\nviduals who speak English as a second lan-\nguage. Visit Taxpayer Advocate or see IRS \nPublication 4134, Low Income Taxpayer Clinic \nList.\nPublication 1544 (September 2014)\n Page 5\n",
"IRS \nForm 8300\n(Rev. August 2014)\nDepartment of the Treasury \nInternal Revenue Service \nReport of Cash Payments Over $10,000 \nReceived in a Trade or Business\na See instructions for definition of cash. \na Use this form for transactions occurring after August 29, 2014. Do not use prior versions after this date. \nFor Privacy Act and Paperwork Reduction Act Notice, see the last page. \nFinCEN \nForm 8300\n(Rev. August 2014) \nOMB No. 1506-0018 \nDepartment of the Treasury \nFinancial Crimes \nEnforcement Network \n1 \nCheck appropriate box(es) if: \na \nAmends prior report; \nb \nSuspicious transaction. \nPart I \nIdentity of Individual From Whom the Cash Was Received \n2 \nIf more than one individual is involved, check here and see instructions .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. a\n3 Last name \n4 First name \n5 M.I. \n6 Taxpayer identification number \n7 Address (number, street, and apt. or suite no.) \n8 Date of birth .\n.\n. a \n(see instructions) \nM M D D Y Y Y Y\n9 City \n10 State \n11 ZIP code \n12 Country (if not U.S.) \n13 Occupation, profession, or business \n14 Identifying \ndocument (ID) \na Describe ID a\nb Issued by a\nc Number a\nPart II \nPerson on Whose Behalf This Transaction Was Conducted \n15 \nIf this transaction was conducted on behalf of more than one person, check here and see instructions .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. a\n16 Individual’s last name or organization’s name \n17 First name \n18 M.I. \n19 Taxpayer identification number \n20 Doing business as (DBA) name (see instructions) \nEmployer identification number \n21 Address (number, street, and apt. or suite no.) \n22 Occupation, profession, or business \n23 City \n24 State \n25 ZIP code \n26 Country (if not U.S.) \n27 Alien \nidentification (ID) \na Describe ID a\nb Issued by a\nc Number a\nPart III \nDescription of Transaction and Method of Payment \n28 \nDate cash received \nM M D D Y Y Y Y\n29 Total cash received \n$ \n.00 \n30 \nIf cash was received in \nmore than one payment, \ncheck here .\n.\n. a\n31 Total price if different from \nitem 29 \n$ \n.00 \n32 \nAmount of cash received (in U.S. dollar equivalent) (must equal item 29) (see instructions): \na \nU.S. currency \n$\n.00 \n(Amount in $100 bills or higher $ \n.00 ) \nb \nForeign currency \n$\n.00 \n(Country a\n) \nc \nCashier’s check(s) \n$\n.00 \nd \nMoney order(s) \n$\n.00 \ne \nBank draft(s) \n$\n.00 \nf \nTraveler’s check(s) \n$\n.00 \n}\nIssuer’s name(s) and serial number(s) of the monetary instrument(s) a\n33 \nType of transaction \na \nPersonal property purchased \nb \nReal property purchased \nc \nPersonal services provided \nd \nBusiness services provided \ne \nIntangible property purchased \nf \nDebt obligations paid \ng \nExchange of cash \nh \nEscrow or trust funds \ni \nBail received by court clerks \nj \nOther (specify in item 34) a\n34 Specific description of property or service shown in \n33. Give serial or registration number, address, docket \nnumber, etc. a\nPart IV \nBusiness That Received Cash \n35 Name of business that received cash \n36 Employer identification number \n37 Address (number, street, and apt. or suite no.) \nSocial security number \n38 City \n39 State \n40 ZIP code \n41 Nature of your business \n42 \nUnder penalties of perjury, I declare that to the best of my knowledge the information I have furnished above is true, correct, \nand complete. \nSignature \nF\nAuthorized official \nTitle\nF\n43 Date of \nsignature \nM M D D Y Y Y Y\n44 Type or print name of contact person\n45 Contact telephone number\nIRS Form 8300 (Rev. 8-2014) \nCat. No. 62133S \nFinCEN Form 8300 (Rev. 8-2014) \nSmith\nJane\nA\n3\n3\n0\n0\n3\n3\n3 3\n3\n100 Main Street\nHometown\n1\n0\n0\n6 1 9 6\n3\nP\nA\n10101\nCosmetic Distributor\nDriver’s License\n333-00-3333\nPA\n0\n1\n0\n6 2 0 1\n5\n18,000\n18,000\n√\nGo - Fast\n4 - door sedan serial no xx -\nABCDEFG - 1234567\nSmall Town Cars\n5000 Industrial Avenue\nHometown\nP\nA\n10101\nCar Dealership\n1\n0\n1\n2\n3 4\n5\n6\n7\nPat Brown\nSales Manager\n0\n1\n0\n6 2 0 1\n5\nPat Brown\n999-555-0555\nPage 6 \nPublication 1544 (September 2014)\n"
] |
f8875.pdf
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0914 Form 8875 (PDF)
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https://www.irs.gov/pub/irs-pdf/f8875.pdf
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[
"Form 8875\n(Rev. September 2014)\nDepartment of the Treasury \nInternal Revenue Service \nTaxable REIT Subsidiary Election \n(Under section 856(I)(1) of the Internal Revenue Code) \n▶ Information about Form 8875 and its instructions is at www.irs.gov/form8875. \nOMB No. 1545-0123\nPart I\nTaxable REIT Subsidiary Making the Election\n1 Name of taxable REIT subsidiary\nNumber, street, and room or suite no. (If a P.O. box, see instructions.)\nCity or town, state, and ZIP code\n2 Employer identification number (EIN)\n3 Date incorporated or organized\n4 State or country of incorporation or organization\nPart II\nElecting REIT That Owns Stock in the Taxable REIT Subsidiary\n5 Name of electing REIT\nNumber, street, and room or suite no. (If a P.O. box, see instructions.)\nCity or town, state, and ZIP code\n6 Employer identification number (EIN)\n7 Date incorporated or organized\n8 State of incorporation or organization\n9 Name of officer of electing REIT or legal representative whom the IRS may contact for more information\n10 Telephone number of officer or legal representative\nPart III\nInformation on the Election\n11\nDate election is to take effect (month, day, year) (see instructions) ▶\n12\nDid the subsidiary previously file a federal income tax return? If “Yes,” complete lines 13a and 13b \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n ▶\nYes\nNo\n13a Tax year ending date of last return (month, day, year) .\n.\n.\n ▶ \n13b Check type of return filed:\nForm 1120\nOther ▶\n14\nWas the subsidiary’s last return filed as part of a consolidated return (for which the subsidiary was not the common parent)? If “Yes,” complete \nlines 15a and 15b .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n ▶ \nYes\nNo\n15a Name of subsidiary’s common parent\n15b EIN of subsidiary’s common parent\n16\nDoes this taxable REIT subsidiary own 35% of the total voting power or value of securities of another lower tier corporation (other than a \nREIT)? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n ▶\nYes\nNo\nIf “Yes,” see instructions for required attachment.\nUnder penalties of perjury, I declare that I have examined this election, including accompanying schedules and statements, and to the best of my knowledge and belief, it is \ntrue, correct, and complete.\nSignature of officer \nof taxable REIT subsidiary ▶ \n(Title)\n(Date signed)\nSignature of officer \nof electing REIT \n.\n.\n. ▶\n(Title)\n(Date signed)\nGeneral Instructions\nSection references are to the Internal \nRevenue Code unless otherwise noted.\nPurpose of Form\nA corporation (other than a REIT or an \nineligible corporation) and a REIT use \nForm 8875 to jointly elect to have the \ncorporation treated as a taxable REIT \nsubsidiary (TRS) under section 856(l).\nThe corporation and the REIT can \nmake this election if the REIT directly or \nindirectly owns stock in the corporation. \nThe election does not require IRS \nconsent.\nA corporation is ineligible to be treated \nas a taxable REIT subsidiary if it directly \nor indirectly:\n• Operates or manages a lodging facility \nor a health care facility, or\n• Provides to any other person (under a \nfranchise, license, or otherwise) rights to \nany brand name under which any \nlodging facility or health care facility is \noperated.\nException. A corporation is eligible to \nbe treated as a taxable REIT subsidiary \nif:\n1. The rights are provided to an \neligible independent contractor (as \ndefined in section 856(d)(9)) to operate or \nmanage a lodging facility or a health care \nfacility,\n2. The rights are held by the \ncorporation as a franchisee, licensee, or \nin a similar capacity, and\n3. The lodging facility or health care \nfacility is either owned by the \ncorporation or leased by the electing \nREIT to the corporation.\nFor Paperwork Reduction Act Notice, see page 2. \nCat. No. 31145M\nForm 8875 (Rev. 9-2014) \n",
"Form 8875 (Rev. 9-2014)\nPage 2 \nWhen To Make the Election\nThe corporation and the REIT can make \nthis election at any time during the tax \nyear. However, the effective date of the \nelection depends upon when Form 8875 \nis filed. See the instructions for line 11.\nWhere To File\nFile Form 8875 with the: \nDepartment of the Treasury \nInternal Revenue Service \nOgden, UT 84201 \nDo not attach it to the corporation’s or \nREIT’s tax returns.\nRevocation of Election\nOnce the TRS election is made, it is \nirrevocable unless both the corporation \nand the REIT consent to the revocation. \nNotify the IRS of the revocation by jointly \nfiling a new Form 8875, and writing the \nword “REVOCATION” across the top of \nthe form. Complete Parts I and II and \nprovide both signatures. This revocation \ndoes not require IRS consent. The \nrevocation is effective on the date the \nnew Form 8875 is filed.\nIf the employer identification number \n(EIN) of the TRS changes as a result of a \nchange in status (for example, a merger), \nthe election is automatically terminated. \nA new election must be made using the \nnew EIN.\nSpecific Instructions\nAddress\nInclude the suite, room, or other unit \nnumber after the street address. If the \nPost Office does not deliver to the street \naddress and the corporation has a P.O. \nbox, show the box number instead of the \nstreet address.\nIf the electing REIT has the same \naddress as the TRS, enter “Same as \ncorporation” in Part II.\nIf either the TRS or the electing REIT \nchanges its mailing address or \nresponsible party after the election is \nfiled, it should notify the IRS by filing \nForm 8822-B, Change of Address or \nResponsible Party—Business.\nEmployer Identification \nNumber (EIN)\nEnter the TRS’s EIN. If the TRS does not \nhave an EIN, it must apply for one. An \nEIN can be applied for:\n• Online—Click on the Employer ID \nNumbers link at www.irs.gov/businesses. \nThe EIN is issued immediately once the \napplication information is validated.\n• By mailing or faxing Form SS-4, \nApplication for Employer Identification \nNumber.\nIf the TRS has not received its EIN by \nthe time the return is due, enter “Applied \nfor” in the space for the EIN. For more \ndetails, see Pub. 583.\nIf the securities of a corporation are \nowned directly or indirectly by more than \none electing REIT, each electing REIT \nseeking to treat the corporation as a \ntaxable REIT subsidiary must file a \nseparate Form 8875.\nLine 11\nThe effective date of the TRS election \nentered on line 11 cannot be more than:\n1. Two months and 15 days prior to \nthe date of filing the election or\n2. Twelve months after the date of \nfiling the election.\n If the election specifies a date earlier \nthan the date in 1 above, it will be \ntreated as being effective 2 months and \n15 days prior to the date of filing the \nelection. If the election specifies a date \nlater than the date in 2 above, it will be \ntreated as being effective 12 months \nafter the date of filing the election.\nIf no date is specified, the election is \neffective on the date Form 8875 is filed.\nLine 16\nA TRS that directly or indirectly owns \n35% of the total voting power or value of \nthe outstanding securities of a \ncorporation (other than a REIT) must \nattach a statement to Form 8875 with \nthe name and EIN of that corporation. \nUnder section 856(l), this corporation \nalso will be treated as a TRS of the REIT \nnamed in Part II.\nIf at the time that an election is filed on \nForm 8875, the TRS named in Part I \ndirectly or indirectly owns less than 35% \nof the total voting power or value of the \noutstanding securities of another \ncorporation and subsequently acquires \nsecurities in that corporation that will \nresult in an ownership interest of 35% or \nmore, the TRS and REIT that filed Form \n8875 must file a copy of Form 8875 \nmarked “Automatic Taxable REIT \nSubsidiary” at the top of the form and \nattach a statement including the name \nand EIN of the new lower tier TRS. The \nnew Form 8875 must be filed in the \nsame manner as the original Form 8875 \nwithin 30 days of the end of the quarter \nof the REIT’s tax year in which the lower \ntier corporation became a TRS.\n If the 35% interest is not the result of \nan acquisition, no filing is necessary.\nExample. REIT and Corporation X \njointly filed Form 8875 on January 15, \n2014, with an effective date of January \n1, 2014. On the date that Form 8875 \nwas filed, Corporation X owned 30% of \nthe outstanding voting securities of \nCorporation Y. On March 15, 2014, \nCorporation X acquired an additional \n10% of the outstanding voting securities \nof Corporation Y. Under section 856(l)(2), \nCorporation Y will be treated as a TRS of \nthe REIT effective March 15, 2014. The \nREIT and Corporation X must jointly file a \ncopy of their previously filed Form 8875 \nmarked “Automatic Taxable REIT \nSubsidiary” at the top and attach a \nstatement including the name and EIN of \nCorporation Y within 30 days of the end \nof the quarter of the REIT’s tax year in \nwhich Corporation Y became a TRS.\nSignature\nForm 8875 must be signed by persons \nauthorized to sign the tax returns of the \nTRS and the electing REIT.\nPaperwork Reduction Act Notice. We \nask for the information on this form to \ncarry out the Internal Revenue laws of \nthe United States. You are required to \ngive us the information. We need it to \nensure that you are complying with these \nlaws.\nYou are not required to provide the \ninformation requested on a form that is \nsubject to the Paperwork Reduction Act \nunless the form displays a valid OMB \ncontrol number. Books or records \nrelating to a form or its instructions must \nbe retained as long as their contents \nmay become material in the \nadministration of any Internal Revenue \nlaw. Generally, tax returns and return \ninformation are confidential, as required \nby section 6103.\nThe time needed to complete and file \nthis form will vary depending on \nindividual circumstances. The estimated \naverage time is:\nRecordkeeping .\n.\n.\n. 6 hr., 56 min.\nLearning about the \nlaw or the form .\n.\n.\n.\n.\n. 18 min.\nPreparing, copying, and \nsending the form to \nthe IRS \n.\n.\n.\n.\n.\n.\n.\n. 25 min.\nIf you have comments concerning the \naccuracy of these time estimates or \nsuggestions for making this form \nsimpler, we would be happy to hear from \nyou. You can write to the Internal \nRevenue Service, Tax Forms and \nPublications Division, 1111 Constitution \nAve., NW, IR-6526, Washington, DC \n20224.\nDo not send the form to this address. \nInstead, see Where To File above.\n"
] |
p3920.pdf
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0914 Publ 3920 (PDF)
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https://www.irs.gov/pub/irs-pdf/p3920.pdf
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[
"Department of the Treasury\nInternal Revenue Service\nPublication 3920\n(Rev. September 2014)\nCat. No. 32806E\nTax Relief for \nVictims of \nTerrorist \nAttacks\nGet forms and other information\nfaster and easier at IRS.gov\nContents\nFuture Developments . . . . . . . . . . . . . . . . . . . . . . . 1\nIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1\nPayments to Survivors . . . . . . . . . . . . . . . . . . . . . . 2\nSeptember 11th Victim Compensation Fund \nof 2001\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2\nDisability Payments\n. . . . . . . . . . . . . . . . . . . . . . 2\nQualified Disaster Relief Payments\n. . . . . . . . . . . 3\nDeath Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . 4\nPayments to Survivors of Public Safety \nOfficers\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4\nTax Forgiveness for People Who Died . . . . . . . . . . 4\nYears Eligible for Tax Forgiveness . . . . . . . . . . . . 4\nAmount of Tax Forgiven\n. . . . . . . . . . . . . . . . . . . 5\nRefund of Taxes Paid\n. . . . . . . . . . . . . . . . . . . . 11\nHow To Claim Tax Forgiveness . . . . . . . . . . . . . 11\nEstate Tax Reduction . . . . . . . . . . . . . . . . . . . . . . 13\nStructured Settlement Factoring \nTransactions\n. . . . . . . . . . . . . . . . . . . . . . . . . 13\nIllustrated Worksheets B and C\n. . . . . . . . . . . . . . 13\nAdditional Worksheets . . . . . . . . . . . . . . . . . . . . . 16\nHow To Get Tax Help\n. . . . . . . . . . . . . . . . . . . . . . 19\nIndex\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22\nFuture Developments\nFor the latest information about developments related to \nPublication 3920, such as legislation enacted after it was \npublished, go to www.irs.gov/pub3920.\nIntroduction\nThis publication explains some of the provisions of the \nVictims of Terrorism Tax Relief Act of 2001. Under this \nAct, the following amounts are not included in income. \n(See Payments to Survivors, later, for details about the fol-\nlowing amounts.)\nCertain disability payments received in tax years end-\ning after September 10, 2001, for injuries sustained in \na terrorist attack.\nPayments from the September 11th Victim Compen-\nsation Fund of 2001.\nQualified disaster relief payments made after Septem-\nber 10, 2001, to cover personal, family, living, or fu-\nneral expenses incurred because of a terrorist attack.\nDeath benefits paid by an employer to the survivor of \nan employee if the benefits are paid because the em-\nployee died as a result of a terrorist attack.\nSep 09, 2014\n",
"The Act also provides that the federal income tax liabil-\nity of those who died as a result of the following attacks is \nforgiven for certain tax years.\nThe September 11, 2001, attacks on the World Trade \nCenter, the Pentagon, and United Airlines Flight 93 in \nSomerset County, Pennsylvania (September 11 at\ntacks).\nTerrorist attacks involving anthrax occurring after Sep-\ntember 10, 2001, and before January 1, 2002 (an\nthrax attacks).\nThe April 19, 1995, attack on the Alfred P. Murrah \nFederal Building (Oklahoma City attack).\nFor details, see Tax Forgiveness for People Who Died, \nlater.\nComments and suggestions. We welcome your com-\nments about this publication and your suggestions for fu-\nture editions.\nYou can write to us at the following address.\nInternal Revenue Service\nTax Forms and Publications Division\n1111 Constitution Ave. NW, IR-6526\nWashington, DC 20224\nWe respond to many letters by telephone. Therefore, it \nwould be helpful if you would include your daytime phone \nnumber, including the area code, in your correspondence.\nYou can send your comments from www.irs.gov/\nformspubs/. Click on “More Information” and then on “Give \nus feedback.”\nAlthough we cannot respond individually to each com-\nment received, we do appreciate your feedback and will \nconsider your comments as we revise our tax products.\nOrdering forms and publications. Visit www.irs.gov/\nformspubs/ to download forms and publications, call \n1-800-TAX-FORM (1-800-829-3676), or write to the ad-\ndress below and receive a response within 10 days after \nyour request is received.\nInternal Revenue Service\n1201 N. Mitsubishi Motorway\nBloomington, IL 61705-6613\nQuestions about Publication 3920. If you have \nquestions about the topics covered in this publication, call \nthe IRS at 18665625227 Monday through Friday during \nthe following times.\nIn English–7 a.m. to 7 p.m. local time.\nIn Spanish–7 a.m. to 7 p.m. local time.\nOther tax questions. If you have tax questions about \ntopics not covered in this publication, check the informa-\ntion available on IRS.gov or call 1-800-829-1040.\nWe cannot answer tax questions sent to either of \nthe above addresses.\nCAUTION\n!\nUseful Items\nYou may want to see:\nPublication\nExamination of Returns, Appeal Rights, and \nClaims for Refund\nSurvivors, Executors, and Administrators\nForm (and Instructions)\nUnited States Estate (and Generation-Skipping \nTransfer) Tax Return\nU.S. Individual Income Tax Return\nU.S. Nonresident Alien Income Tax Return\nAmended U.S. Individual Income Tax Return\nU.S. Income Tax Return for Estates and Trusts\nStatement of Person Claiming Refund Due a \nDeceased Taxpayer\nRequest for Copy of Tax Return\nPayments to Survivors\nThe following section discusses the tax treatment of cer-\ntain amounts received by survivors of the attacks and sur-\nvivors of people who died as a result of the attacks.\nSeptember 11th Victim Compensation \nFund of 2001\nPayments from the September 11th Victim Compensation \nFund of 2001 are not included in income.\nDisability Payments\nFor tax years ending after September 10, 2001, disability \npayments (including Social Security Disability Insurance \n(SSDI) payments) are not included in income if they are \nfor injuries incurred as a direct result of a terrorist attack \n(including the September 11 attacks, anthrax attacks, and \nOklahoma City attack) directed against the United States \n(or its allies). However, you must include in your income \nany disability payments you received or you would have \nreceived in retirement had you not become disabled as a \nresult of a terrorist attack.\nDisability payments you receive for injuries not \nincurred as a direct result of a terrorist attack or \nfor illnesses or diseases not resulting from an injury incur\nred as a direct result of a terrorist attack cannot be exclu\nded from your income under this provision but may be ex\ncludable for other reasons. For details, see Publication \n907, Tax Highlights for Persons with Disabilities.\nExample. Dan, a firefighter, was disabled as a direct \nresult of the September 11 terrorist attack on the World \nTrade Center. He began receiving Social Security \n 556\n 559\n 706\n 1040\n 1040NR\n 1040X\n 1041\n 1310\n 4506\nCAUTION\n!\nPage 2 \nPublication 3920 (September 2014)\n",
"Disability Insurance (SSDI) benefits at age 54. Dan's full \nretirement age for social security retirement benefits is \nage 66. Dan's birthday is April 25. In the year Dan turned \n66, Dan received $1,500 per month in benefits from the \nSocial Security Administration. Because Dan became eli-\ngible for a full retirement benefit in May, the month after he \nturned 66, he can exclude only four months of his annual \nbenefit from his income ($6,000). Dan must report the re-\nmaining $12,000 on Form 1040, line 20a, or Form 1040A, \nline 14a. He also must complete the Social Security Bene-\nfits Worksheet in his tax return instructions to find out if \nany part of the $12,000 is taxable.\nWhen nontaxable payments are reported as taxable.\nContact the company or agency making the disability pay-\nments if it incorrectly reported payments you received in \nthe prior year as taxable income to the IRS on Form W-2, \nWage and Tax Statement, or on Form 1099-R, Distribu-\ntions From Pensions, Annuities, Retirement or Profit-Shar-\ning Plans, IRAs, Insurance Contracts, etc. Ask the com-\npany or agency to issue a corrected form to report some \nor all of these payments as nontaxable income in box 12 \n(under code J) on Form W-2 or in box 1 but not in box 2a \non Form 1099-R.\nFile Form 1040X to correct disability payments that \nwere incorrectly reported as taxable income on your previ-\nously filed tax returns. Attach copies of the corrected \nForm W-2 or Form 1099-R. In Part III of Form 1040X, \nmention this publication or Internal Revenue Code section \n104(a)(5). If you are unable to obtain a corrected Form \nW-2 or Form 1099-R, mention this fact in Part III of Form \n1040X and attach documents that support your claim that \nyou received the disability payments due to injuries you \nsustained as a direct result of a terrorist attack. Follow the \nsame procedures when filing Form 1040 or Form \n1040NR, except that you should explain on a separate \nsheet of paper your inability to get a corrected Form W-2 \nor Form 1099-R and attach it to the return.\nIf you are correcting disability payments for a decedent \nwho is eligible for tax forgiveness (discussed later), con-\nsider whether to request only forgiveness for all income \ntax liabilities for all eligible years on Form 1040X or also \nstate a separate claim for refund on the same Form 1040X \nfor the disability payments incorrectly reported as taxable \nincome. The income tax forgiveness available for the de-\ncedent includes a minimum amount of relief of $10,000. \nAccordingly, you may receive a greater total refund by \ncorrecting the prior reporting of disability payments sepa-\nrately from any request for tax forgiveness when the total \ntax forgiveness benefit other than for disability payments \nfor all eligible years is less than $10,000.\nRefunds of disability payments that were incor\nrectly reported as taxable income are subject to \nthe statute of limitations rules for refunds dis\ncussed later under Period for filing a claim for credit or re-\nfund.\nExample. A policeman is disabled as a direct result of \ninjuries sustained in the September 11 attack on the \nWorld Trade Center. He timely filed his Form 1040 income \ntax returns for 2012 and 2013. In 2014, he received \nTIP\ncorrected Forms 1099-R from his employer showing \n$12,000 of the payments he received in 2012 and $5,000 \nof those received in 2013, which had been reported as \ntaxable, should have been classified as nontaxable disa-\nbility payments. The policeman files a Form 1040X for \n2012 and a separate one for 2013 asking the IRS to re-\nclassify the payments as nontaxable. He attaches the cor-\nrected Form 1099-R to each Form 1040X. He writes “Pub-\nlication 3920” in Part III of each Form 1040X.\nWhen taxes are incorrectly withheld. If you receive \nSSDI payments for injuries you incurred as a direct result \nof a terrorist attack, you may submit Form W-4V, Volun-\ntary Withholding Request, to your local Social Security \nAdministration office by mail or in person to stop the with-\nholding of income taxes from the SSDI excluded from your \nincome.\nIf income taxes are being incorrectly withheld from any \nother disability payments, you may submit Form W-4, Em-\nployee's Withholding Allowance Certificate, to the com-\npany or agency to stop the withholding of income taxes \nfrom payments reported on Form W-2. You may submit \nForm W-4P, Withholding Certificate for Pension or Annuity \nPayments, to stop the withholding of income taxes from \npayments reported on Form 1099-R.\nQualified Disaster Relief Payments\nQualified disaster relief payments are not included in in-\ncome. These payments are not subject to income tax, \nself-employment tax, or employment taxes (social secur-\nity, Medicare, and federal unemployment taxes). No with-\nholding applies to these payments.\nQualified disaster relief payments include payments \nyou receive (regardless of the source) after September \n10, 2001, for the following expenses.\nReasonable and necessary personal, family, living, or \nfuneral expenses incurred as a result of a terrorist at-\ntack.\nReasonable and necessary expenses incurred for the \nrepair or rehabilitation of a personal residence due to \na terrorist attack. (A personal residence can be a ren-\nted residence or one you own.)\nReasonable and necessary expenses incurred for the \nrepair or replacement of the contents of a personal \nresidence due to a terrorist attack.\nQualified disaster relief payments also include the fol-\nlowing.\nPayments made by common carriers (for example, \nAmerican Airlines and United Airlines regarding the \nSeptember 11 attacks) because of death or physical \ninjury incurred as a result of a terrorist attack.\nAmounts paid by a federal, state, or local government \nin connection with a terrorist attack to individuals af-\nfected by the attack.\nPublication 3920 (September 2014)\n Page 3\n",
"Qualified disaster relief payments do not include:\nPayments for expenses otherwise paid for by insur\nance or other reimbursements, or\nIncome replacement payments, such as payments of \nlost wages, lost business income, or unemployment \ncompensation.\nDeath Benefits\nPayments received by an individual or the estate of a de-\ncedent from the employer of an employee who died as a \nresult of the Oklahoma City or September 11 terrorist at-\ntacks, or as a result of the anthrax attacks, are not inclu-\nded in income. Only the amount that exceeds the benefits \nthat would have been payable if the death had occurred \nfor a reason other than a terrorist or anthrax attack is ex-\ncludable. However, the exclusion does apply to incidental \ndeath benefits paid under a qualified retirement plan even \nif these amounts would have been payable if the death \nhad occurred for a reason other than a terrorist or anthrax \nattack.\nIf you included death benefits in income on a pre\nviously filed return and they are now excludable \nunder the above rule, file Form 1040X to amend \nthat return. For information on the period for filing Form \n1040X, see Period for filing a claim for credit or refund, \nlater, under Years Eligible for Tax Forgiveness.\nPayments to Survivors of Public \nSafety Officers\nIf you are a survivor of a public safety officer who died in \nthe line of duty, certain amounts you receive are not inclu-\nded in income.\nBureau of Justice Assistance payments. If you are a \nsurviving dependent of a public safety officer (law en-\nforcement officer or firefighter) who died in the line of duty, \ndo not include in your income the death benefit paid to \nyou by the Bureau of Justice Assistance.\nGovernment plan annuity. If you receive a survivor an-\nnuity as the child or spouse (or former spouse) of a public \nsafety officer who was killed in the line of duty, you gener-\nally do not have to include it in income. This exclusion ap-\nplies to the amount of the annuity based on the officer's \nservice as a public safety officer.\nFor this purpose, the term public safety officer in-\ncludes police and law enforcement officers, firefighters, \nand rescue squad and ambulance crews.\nMore information. For more information, see Publication \n559.\nCAUTION\n!\nTIP\nTax Forgiveness for People \nWho Died\nThe IRS will forgive the federal income tax liabilities of de-\ncedents who died as a result of wounds or injury sus-\ntained in the Oklahoma City or September 11 attacks or \nfrom illnesses or diseases arising from wounds or injuries \nsustained in these attacks. The IRS will also forgive the \nfederal income tax liabilities of decedents who died as a \nresult of illness incurred as a result of the anthrax attacks. \nIncome tax is forgiven for these decedents whether they \nwere killed in an attack or died later as a result of an at-\ntack or participating in rescue or recovery operations. Any \nforgiven tax liability owed to the IRS will not have to be \npaid. Any forgiven tax liability that has already been paid \nwill be refunded if a claim is filed within the open refund \nperiod. (See Period for filing a claim for credit or refund, \nlater.) To determine the amount of tax to be forgiven, read \nYears Eligible for Tax Forgiveness first. Then read \nAmount of Tax Forgiven.\nDecedents whose total tax forgiveness benefit for \nall eligible years is less than $10,000 are entitled \nto $10,000 minimum relief. Even decedents who \nwere not required to file tax returns for the eligible tax \nyears are entitled to $10,000 minimum relief. See Mini-\nmum Amount of Relief, later, under Amount of Tax For-\ngiven. \nYears Eligible for Tax Forgiveness\nThe following paragraphs explain which years are eligible \nfor tax forgiveness.\nSeptember 11 attacks and anthrax attacks. For those \nwho died as a result of these attacks, income tax is for-\ngiven for 2000 and all later years up to and including the \nyear of death. However, the law allows the IRS to refund \ntaxes only for certain years. See Period for filing a claim \nfor credit or refund below.\nOklahoma City attack. For those who died from this at-\ntack, income tax is forgiven for 1994 and all later years up \nto and including the year of death. However, the law al-\nlows the IRS to refund taxes only for certain years. See \nPeriod for filing a claim for credit or refund next.\nPeriod for filing a claim for credit or refund. Although \nincome tax forgiveness applies back to 2000 for the Sep-\ntember 11 and anthrax attacks and to 1994 for the Okla-\nhoma City attack, the law allows the IRS to refund taxes \nonly for certain years.\nTo obtain a credit or refund for a year for which the de-\ncedent did not file an income tax return, you must file an \nincome tax return (Form 1040 or Form 1040NR) within 3 \nyears after the due date of the return (including exten-\nsions) or within 2 years after the date the decedent paid \nthe tax, whichever is later.\nTIP\nPage 4 \nPublication 3920 (September 2014)\n",
"To obtain a credit or refund on a previously filed income \ntax return (an original return), you must file an amended \nreturn (Form 1040X or amended Form 1041) within 3 \nyears (including extensions) from the time the return was \nfiled or within 2 years after the time the tax was paid, \nwhichever is later. If an original return was filed, the \namount of the refund claimed on the amended return will \nbe limited to the amount of tax paid within the 3 years pre-\nceding the date on which the amended return is filed. \nThese rules reflect the statute of limitations for refunds, \nand are referred to throughout this publication as the open \nrefund period.\nIf the original return was filed early (for example, on \nMarch 1 for a calendar year return), the return is consid-\nered filed on the due date (generally April 15). However, if \nthe decedent had an extension to file (for example, until \nOctober 15) but filed the return earlier and the IRS re-\nceived it July 1, the return is considered filed on July 1.\nNote. The statute of limitations for refunds can be sus-\npended for certain people who live in a federally declared \ndisaster area or are physically or mentally unable to man-\nage their financial affairs. For details, see Publication 556.\nExample 1. Paul, a U.S. citizen, died in August 2014 \nas a result of wounds he sustained as a result of the Sep-\ntember 11 attacks. He had income tax liabilities of \n$17,500 for 2011, $18,025 for 2012, and $7,000 for 2013. \nPrior to his death, Paul filed his tax returns and paid his \ntax due on or before April 15 each year since the Septem-\nber 11 attacks. The total, $42,525, plus any income tax li-\nability for 2014, is eligible for tax forgiveness. His personal \nrepresentative must request tax forgiveness by the follow-\ning dates to claim a refund of the income tax liabilities \nPaul paid for each tax year.\n2011 tax year – April 15, 2015.\n2012 tax year – April 18, 2016.\n2013 tax year – April 18, 2017.\n2014 tax year – April 17, 2018.\nAlthough the personal representative may request income \ntax forgiveness after these dates, no refund can be paid \nbecause 3 years will have passed from the date the origi-\nnal return was filed and no payments will have been made \nwithin the open refund period.\nExample 2. A child wounded in the September 11 at-\ntacks died in 2012 as a result of those wounds and never \nhad any income tax liability. She qualifies for the minimum \nrelief of $10,000 as explained later under Minimum \nAmount of Relief. The $10,000 is treated as a tax payment \nfor 2012 and will be refunded if tax forgiveness is reques-\nted by April 18, 2016.\nAmount of Tax Forgiven\nThe IRS will forgive the decedent's income tax liability as \ndiscussed earlier under Years Eligible for Tax Forgive\nness. On a joint return, only the decedent's part of the joint \nincome tax liability is eligible for forgiveness.\nTo figure the tax to be forgiven, use the following work-\nsheets.\nUse Worksheet A for any eligible year the decedent \nfiled a return as single, married filing separately, head \nof household, or qualifying widow(er).\nUse Worksheet B for any eligible year the decedent \nfiled a joint return. Also see the illustrated Worksheet \nB near the end of this publication for a comprehensive \nexample.\nDo not complete Worksheet A or B if the dece\ndent was not required to file tax returns for the eli\ngible tax years. Instead, complete Worksheet C \nand file a return for the decedent's last tax year. See Mini-\nmum Amount of Relief, later.\nBoth spouses died. If both spouses died as a result of a \nterrorist attack and they filed a joint return for an eligible \ntax year, fill out Worksheet B for each spouse for that \nyear. Do this to determine if each spouse qualifies for the \nminimum relief of $10,000 (discussed later under Mini\nmum Amount of Relief). If you are certain that neither \nspouse's total forgiven tax liability for all eligible years is \nless than $10,000, skip Worksheet B. However, attach a \ncomputation of the forgiven tax liability to the final income \ntax return or amended tax return for each eligible year. \nThe forgiven tax liability is the total tax shown on the joint \nreturn minus the taxes listed in the instructions for line 4 of \nWorksheet B.\nResidents of community property states. If the dece-\ndent was domiciled in a community property state and the \nspouse reported half the community income on a separate \nreturn, the surviving spouse can get a refund of taxes paid \non his or her share of the decedent's income for the eligi-\nble years. Also, all of the decedent's income taxes paid for \nthe eligible years will be refunded to either the executor or \nadministrator of the estate, or to the surviving spouse if \nthere is no legal representative.\nTIP\nPublication 3920 (September 2014)\n Page 5\n",
"Figuring the Tax To Be Forgiven\nKeep for Your Records\n(For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or \nQualifying Widow(er))\n(A) \nFirst \nEligible \nYear\n(B) \nSecond \nEligible \nYear\n(C) \nThird \nEligible \nYear\n(D) \nFourth \nEligible \nYear\n1\nEnter the years eligible for tax forgiveness. . . . . . . . .\n1\n2\nEnter the total tax from the decedent's income tax \nreturn. See Table 1, later, for the line number. . . . . . .\n2\n3\nEnter the following taxes, if any, shown on the \ndecedent's income tax return. (These taxes are not \neligible for forgiveness.)\na Self-employment tax. . . . . . . . . . . . . . . . . . . . . . . . . .\n3a\nb Unreported social security and Medicare tax from \nForms 4137 and 8919. . . . . . . . . . . . . . . . . . . . . . . . .\n3b\nc Tax on excess contributions to IRAs, Coverdell \neducation savings accounts (ESAs), Archer \nMSAs, or health savings accounts (HSAs). . . . . . .\n3c\nd Tax on excess accumulation in qualified \nretirement plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n3d\ne Household employment taxes. . . . . . . . . . . . . . . . . .\n3e\nf Uncollected social security and Medicare or RRTA \ntax on tips or group-term life insurance. . . . . . . . . .\n3f\ng Tax on golden parachute payments. . . . . . . . . . . . .\n3g\nh Health care: individual responsibility. . . . . . . . . . . .\n3h\ni\nAdditional Medicare Tax.\n. . . . . . . . . . . . . . . . . . . . .\n3i\nj\nNet Investment Income Tax. . . . . . . . . . . . . . . . . . . .\n3j\nk Excise tax on insider stock compensation from an \nexpatriated corporation.\n. . . . . . . . . . . . . . . . . . . . . .\n3k\n4\nAdd lines 3a through 3k. . . . . . . . . . . . . . . . . . . . . . . . .\n4\n5\nTax adjustment to be reported with tax return. \nSubtract line 4 from line 2. . . . . . . . . . . . . . . . . . . . . . . .\n5\n6\nTax forgiveness benefit provided. Enter the \namount from line 5 if filing your claim within 3 years \nfrom the due date of the return (including \nextensions). Otherwise, enter only the part of the tax \nfrom line 5 that is currently owed (not including \ninterest and penalties) plus any payments made \nwithin the open refund period.\n. . . . . . . . . . . . . . . . . . .\n6\nNote. If the total of columns (A), (B), (C), and (D) of line 6 (including any amounts shown on line 16 of Worksheet B) is less \nthan $10,000, also complete Worksheet C. \nAttach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or \namended tax return (Form 1040X) for each year listed on line 1.\nIf filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of the “Total tax” \nline as a decrease in tax. The IRS will determine the amount to be refunded.\nWorksheet A. \nPage 6 \nPublication 3920 (September 2014)\n",
"Figuring the Tax To Be Forgiven\nKeep for Your Records\n(For Decedents Who Filed a Joint Return)\n(A) \nFirst \nEligible \nYear\n(B) \nSecond \nEligible \nYear\n(C) \nThird \nEligible \nYear\n(D) \nFourth\nEligible \nYear\n1 Enter the years eligible for forgiveness. . . . . . . . . . . . . . . . . . .\n1\n2 Enter the decedent's taxable income. Figure taxable income \nas if a separate return had been filed. See Lines 2 and 6 in \nthe Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . .\n2\n3 Enter the decedent's total tax. See Lines 3 and 7 in the \nWorksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n3\n4 Enter the total, if any, of the decedent's taxes not eligible for \nforgiveness. See Line 4 in the Worksheet B \ninstructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n4\n5 Subtract line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n5\n6 Enter the surviving spouse's taxable income. Figure taxable \nincome as if a separate return had been filed. See Lines 2 \nand 6 in the Worksheet B instructions. . . . . . . . . . . . . . . . . . . .\n6\n7 Enter the surviving spouse's total tax. See Lines 3 and 7 in \nthe Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . .\n7\n8 Enter the total, if any, of the surviving spouse's taxes listed \nunder Line 4 in the Worksheet B instructions. . . . . . . . . . . . . .\n8\n9 Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n9\n10 Add lines 5 and 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n10\n11 Enter the total tax from the joint return. See Table 1, later, \nfor the line number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n11\n12 Add lines 4 and 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n12\n13 Subtract line 12 from line 11.\n. . . . . . . . . . . . . . . . . . . . . . . . . . .\n13\n14 Divide line 5 by line 10. Enter the result as a decimal. . . . . . .\n14\n15 Tax adjustment to be reported with tax return. Multiply \nline 13 by line 14 and enter the result. . . . . . . . . . . . . . . . . . . . .\n15\n16 Tax forgiveness benefit provided. Enter the amount from \nline 15 if filing your claim within 3 years from the due date of \nthe return (including extensions). Otherwise, enter only the \npart of the tax from line 15 that is currently owed (not \nincluding interest and penalties) plus any payments made \nwithin the open refund period.\n. . . . . . . . . . . . . . . . . . . . . . . . . .\n16\nNote. If the total of columns (A), (B), (C), and (D) of line 16 (including any amounts shown on line 6 of Worksheet A) is less \nthan $10,000, also complete Worksheet C. \nAttach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or \namended tax return (Form 1040X) for each year listed on line 1.\nIf filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of the “Total \ntax” line as a decrease in tax. The IRS will determine the amount to be refunded.\nWorksheet B.\nPublication 3920 (September 2014)\n Page 7\n",
"Instructions for Worksheet B\nLines 2 and 6. Allocate income and deductions in the \nsame manner they would have been allocated if the spou-\nses had filed separate returns.\nIncome. Allocate wages and salaries to the spouse \nwho performed the services and received the Form W-2. \nBusiness and investment income (including capital gains) \nare generally allocated to the spouse who owned the busi-\nness or investment that produced the income. If both \nspouses owned an interest in the business or investment, \nallocate the income in proportion to each spouse’s owner-\nship interest. Income from a jointly owned business or in-\nvestment should be allocated equally between the spou-\nses unless there is evidence that shows a different \nallocation is appropriate.\nIf the income (such as taxable social security benefits) \nis subject to special limits on a separate return, use the in-\ncome shown on the joint return and allocate it between the \nspouses.\nDeductions. Allocate personal deductions (such as \nitemized deductions for mortgage interest and taxes) \nequally between the spouses unless there is evidence \nthat shows a different allocation is appropriate. Allocate \ndeductions related to a business or investment according \nto the same allocation rules discussed above that apply to \nincome.\nIf a deduction would not be allowed if separate returns \nwere filed, use the deduction shown on the joint return \nand allocate that amount between the spouses. A similar \nrule applies to deductions (such as the IRA deduction) \nthat are subject to special limits on a separate return. Use \nthe deductions shown on the joint return and allocate \nthem between the spouses.\nLines 3 and 7. Figure the total tax as if a separate return \nhad been filed. The total tax is the tax that would have \nbeen entered on the tax return line shown in Table 1 if a \nseparate return had been filed. When figuring the tax us-\ning the Tax Table or Tax Computation Worksheet, use the \n“Married filing separately” column in the Tax Table or Sec-\ntion C of the Tax Computation Worksheet.\nWhen figuring the total tax, allocate credits and other \ntaxes, if any, in the same manner as they would have \nbeen allocated if the spouses had filed separate returns. If \na credit would not have been allowed on a separate \nreturn, allocate the credit shown on the joint return be-\ntween the spouses. Examples of credits generally not al-\nlowed on a separate return are the child and dependent \ncare credit, credit for the elderly, adoption credit, educa-\ntion credits, and earned income credit.\nLine 4. Enter the total, if any, of the following taxes.\nSelf-employment tax.\nUnreported social security and Medicare tax from \nForms 4137 and 8919.\nTax on excess contributions to IRAs, Coverdell edu-\ncation savings accounts (ESAs), Archer MSAs, or \nhealth savings accounts (HSAs).\nTax on excess accumulation in qualified retirement \nplans.\nHousehold employment taxes.\nUncollected social security and Medicare or RRTA tax \non tips or group-term life insurance.\nTax on golden parachute payments.\nHealth care: individual responsibility.\nAdditional Medicare Tax.\nNet Investment Income Tax.\nExcise tax on insider stock compensation from an ex-\npatriated corporation.\nMinimum Amount of Relief\nThe minimum amount of relief is $10,000. If the dece-\ndent’s total tax forgiveness benefit for all eligible years is \nless than $10,000, the difference between $10,000 and \nthe total tax forgiveness benefit provided will be treated as \na tax payment for the decedent's last tax year. The IRS \nwill refund the difference if the claim is filed within the \nopen refund period for the decedent’s last tax year as ex-\nplained earlier under Period for filing a claim for credit or \nrefund. Use Worksheet C to figure the additional tax pay-\nment. But first complete Worksheet A or B if the decedent \nwas required to file tax returns for any eligible tax years for \nwhich a tax liability is still owed to the IRS or for which the \nIRS will pay a refund of an amount already paid to the IRS.\nTotal Tax Line on Decedent's Return\nNote: Use this table to find the total tax line on the decedent's income tax return. Enter the total tax on \nWorksheet A, line 2, or Worksheet B, line 11.\nForm\n2011\n2012\n2013\n2014\n1040\nLine 61 \nLine 61\nLine 61\nLine 63\n1040A\nLine 35\nLine 35\nLine 35\nFile Form 1040\n1040EZ\nLine 10\nLine 10\nLine 10\nFile Form 1040\n1040NR\nLine 60\nLine 60\nLine 60\nLine 61\n1040NR-EZ\nLine 17\nLine 17\nLine 17\nFile Form 1040NR\nTable 1. \nPage 8 \nPublication 3920 (September 2014)\n",
"Example 1. An individual who died in January 2014 as \na result of wounds sustained in the September 11 attacks \nhad an income tax liability of -0- for 2011, 2012, and 2013, \nand $6,400 for 2014. The personal representative appoin-\nted after his death claims forgiveness for the $6,400 with \nthe IRS in 2015. The IRS will forgive the income tax liabili-\nties for 2014 and treat the difference between $10,000 \nand the $6,400 benefit provided ($3,600) as a tax pay-\nment for 2014.\nExample 2. An individual who died in May 2014 as a \nresult of wounds sustained in the September 11 attacks \nhad an income tax liability of -0- for 2011, 2012, and 2013, \nand $6,400 for 2014. The individual also had an outstand-\ning income tax liability at the time of death of $3,000 for \n2006, not counting interest or penalties. The personal rep-\nresentative appointed after death claims forgiveness for \nthe $3,000 and $6,400 ($9,400) with the IRS in 2015. The \nIRS will forgive the income tax liabilities for 2006 and 2014 \nand treat the difference between $10,000 and the $9,400 \nbenefit provided ($600) as a tax payment for 2014.\nExample 3. A child who died in August 2014 as a re-\nsult of wounds sustained in the September 11 attacks had \nno (-0-) income tax liability for 2011, 2012, 2013, or 2014. \nThe IRS will treat $10,000 as a tax payment for 2014 and \nwill refund $10,000 if a claim is filed within the open refund \nperiod.\nExample 4. An individual who died in August 2014 as \na result of wounds sustained in the September 11 attacks \nhad income tax liabilities of $17,500 for 2011, $18,025 for \n2012, and $7,000 for 2013. Prior to his death, he filed his \ntax returns and paid his tax due on or before April 15 each \nyear since the September 11 attacks. The personal repre-\nsentative appointed after his death filed no income tax re-\nturns or claims for him until July 2017 when she filed the \ndecedent’s 2014 income tax return showing $4,800 in tax \nliability. The IRS will forgive the income tax liabilities for \n2014. Because the open refund period for all tax years \nprior to 2014 expired on April 18, 2017, the IRS will treat \nthe difference between $10,000 and the $4,800 benefit \nprovided ($5,200) as a tax payment for 2014.\nIncome received after date of death. Generally, in-\ncome of the decedent received after the date of death \nmust be reported on Form 1041 if the estate has gross in-\ncome for the tax year of $600 or more. Examples are the \nfinal paycheck or dividends on stock owned by the dece-\ndent. However, this income is exempt from income tax \nand is not included on Form 1041 if it is received:\nAfter the date of the decedent's death, and\nBefore the end of the decedent's tax year (determined \nwithout regard to death).\nNonqualifying income. The following income is not \nexempt from tax. The tax on it is not eligible for forgive-\nness.\nDeferred compensation that would have been payable \nif the death had occurred because of an event other \nthan these attacks.\nAmounts that would not have been payable but for an \naction taken after September 11, 2001.\nThe following are examples of nonqualifying income.\nAmounts payable from a qualified retirement plan or \nIRA to the beneficiary or estate of the decedent.\nAmounts payable only as death or survivor's benefits \nfrom pre-existing arrangements that would have been \npaid if the death had occurred for another reason.\nIncome received as a result of adjustments made by \nthe decedent's employer to a plan or arrangement to \naccelerate the vesting of restricted property or the \npayment of nonqualified deferred compensation after \nthe date of the attack.\nInterest on savings bonds cashed by the beneficiary \nof the decedent.\nIf you are responsible for the estate of a dece\ndent, see Publication 559. Publication 559 dis\ncusses how to complete and file federal income \ntax returns and explains your responsibility to pay any \ntaxes due.\nTIP\nPublication 3920 (September 2014)\n Page 9\n",
"Instructions for lines 2–9 of Worksheet C. The tax \nthat would have been payable on the exempt income (dis-\ncussed earlier) must be considered when determining \nwhether a decedent is entitled to the $10,000 minimum re-\nlief. To figure the tax that would have been payable, you \ncan use lines 2 through 9 of Worksheet C. Or, if special \nrequirements are met, you can use the alternative compu-\ntation instead. See Alternative computation, later.\nYou have to use lines 2–9 (or the alternative computa-\ntion) to figure the tax that would have been payable even if \nForm 1041 was not required to be filed. Use Form 1041 to \nfigure what the taxable income would be without including \nthe exempt income. Then enter that taxable income (even \nif a negative number) on line 2 of Worksheet C (or line 1 of \nWorksheet D. Alternative Computation of Tax on Exempt \nIncome (Line 9 of Worksheet C)).\nWorksheet C. Amount Treated as Tax Payment for \nDecedent's Last Tax Year\nKeep for Your Records\nCaution: The decedent is entitled to minimum relief of $10,000. Complete this worksheet only if the total tax forgiveness \nbenefit provided for all eligible years is less than $10,000.\n1 Minimum relief amount. \nNote: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C.\n. . . . . . . . . . . . . .\n1 $10,000\n2 Enter the taxable income from Form 1041, line 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n2 \n3 Enter the distribution deduction from Form 1041, line 18. . . . . . . . . . . . . . . . . . . . . . . . .\n3 \n4 Add lines 2 and 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n4 \n5 Enter exempt income received after death minus expenses allocable to exempt \nincome. (See Income received after date of death, earlier.) . . . . . . . . . . . . . . . . . . . . . .\n5 \n6 Add lines 4 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n6 \n7 Figure the tax on line 6 using Form 1041, Schedule G. . . . . . . . . . . . . . . . . . . . . . . . . . .\n7 \n8 Figure the tax on line 4 using Form 1041, Schedule G. . . . . . . . . . . . . . . . . . . . . . . . . . .\n8 \n9 Tax on exempt income. Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n9 \n10 Enter the total of columns (A)–(D) from line 6 of Worksheet A or line 16 of \nWorksheet B. If the decedent was not required to file tax returns for the eligible tax \nyears, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 \n11 Add lines 9 and 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 \n12 Additional payment allowed. If line 11 is $10,000 or more, enter -0- and stop here. No additional \namount is allowed as a tax payment. Otherwise, subtract line 11 from line 1 and enter the \nresult. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12\n \nNote. The amount on line 12 is allowed as a tax payment for the decedent's last tax year. \nAttach the computation of the additional payment allowed or a copy of this worksheet to the original or amended \nincome tax return for the decedent's last tax year. If filing Form 1040, include the amount from line 12 above on the \n“Credits from Form” line in the “Payments” section of Form 1040, page 2. Write “Sec. 692(d)(2) Payment” and the \namount to the right of the entry space. Also indicate whether a Form 1041 is being filed for the decedent's estate.\nIf filing Form 1040X, include the amount from line 12 above on Form 1040X on the “Refundable credits from” line, \ncolumns (B) and (C). Check the box next to “other (specify)” and write “Sec. 692(d)(2) Payment” on the blank line.\nPage 10 \nPublication 3920 (September 2014)\n",
"Alternative computation. Instead of using lines 2–8 \nof Worksheet C to figure the tax on exempt income (line 9 \nof Worksheet C), you may be able to use Worksheet D. \nYou can use Worksheet D to figure the tax on the exempt \nincome payable by the estate and its beneficiaries only if \nboth of the following requirements are met.\n1. The estate claimed an income distribution deduction \non Form 1041, line 18.\n2. Each beneficiary submits the information necessary \nto refigure the income tax payable on the exempt in-\ncome received from the decedent's estate.\nIf requirement (2) is met but requirement (1) is not, you \ncan still use Worksheet D if:\nForm 1041 was not required because exempt income \nwas received, and\nThe estate would have claimed an income distribution \ndeduction if the exempt income were taxable.\nIf you use this alternative computation, skip lines 2–8 of \nWorksheet C and enter the amount from line 8 of Work-\nsheet D on line 9 of Worksheet C. Complete the rest of \nWorksheet C to determine the additional payment al-\nlowed.\nRefund of Taxes Paid\nThe IRS will refund the following amounts.\n1. Forgiven income tax liabilities that have been paid \nduring the open refund period for the decedent’s last \ntax year. See Period for filing a claim for credit or re\nfund, earlier.\n2. The excess of $10,000 over the total tax forgiveness \nbenefit provided for all eligible years if a claim is filed \nwithin the open refund period for the decedent’s last \ntax year. See Minimum Amount of Relief, earlier.\nExample 1. A first responder who died in August 2014 \nfrom a cancer on the List of World Trade Center \n(WTC)-Related Health Conditions covered in the WTC \nHealth Program had an income tax liability of $17,500 for \n2011, $18,025 for 2012, $7,000 for 2013, and $4,800 for \n2014. The total, $47,325, is eligible for tax forgiveness. \nHowever, he paid only $38,100 of that amount. The IRS \nwill refund no more than the $38,100 paid.\nExample 2. A child who died in 2014 as a result of \nwounds sustained in the September 11 attacks never had \nany income tax liability. The child qualifies for the mini-\nmum relief of $10,000. The IRS will treat $10,000 as a tax \npayment for 2014 and will refund $10,000 if a claim is filed \nwithin the open refund period.\nThe law allows the IRS to refund taxes only for \ncertain years. See Years Eligible for Tax Forgive-\nness, earlier.\nHow To Claim Tax Forgiveness\nUse the following procedures to claim income tax forgive-\nness.\nWhich Form To Use\nThe form you use depends on whether an income tax re-\nturn for the eligible year was already filed for the dece-\ndent.\nReturn required but not yet filed. File a paper Form \n1040 if the decedent was a U.S. citizen or resident. File a \npaper Form 1040NR if the decedent was a nonresident \nalien. A nonresident alien is someone who is not a U.S. \ncitizen or resident.\nReturn required and already filed. File a separate pa-\nper Form 1040X for each year you are claiming tax relief.\nReturn not required and not filed. File a paper Form \n1040 only for the year of death if the decedent was a U.S. \ncitizen or resident. File a paper Form 1040NR if the dece-\ndent was a nonresident alien.\nReturn not required but already filed. File a paper \nForm 1040X only for the year of death.\nCAUTION\n!\nAlternative Computation of Tax on Exempt \nIncome (Line 9 of Worksheet C)\nWorksheet D. \nKeep for Your Records\n1\nEnter the taxable income from Form 1041, line 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n1\n \n2\nEnter exempt income received after death minus expenses allocable to exempt \nincome. (See Income received after date of death, earlier.) . . . . . . . . . . . . . . . . . . . . . .\n2\n \n3\nAdd lines 1 and 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n3\n \n4\nFigure the tax on line 3 using Form 1041, Schedule G.\n. . . . . . . . . . . . . . . . . . . . . . . . . .\n4\n \n5\nFigure the tax on line 1 using Form 1041, Schedule G.\n. . . . . . . . . . . . . . . . . . . . . . . . . .\n5\n \n6\nEstate's tax on exempt income. Subtract line 5 from line 4. . . . . . . . . . . . . . . . . . . . .\n6\n \n7\nBeneficiaries' tax on exempt income. Figure the total tax that would have been \npayable by all beneficiaries. Do this by including in each beneficiary's gross income \nthe exempt income received from the decedent's estate and refiguring the income \ntax. Add the amounts by which each beneficiary's income tax is increased. . . . . . . . .\n7\n \n8\nAdd lines 6 and 7. Enter this amount on line 9 of Worksheet C. . . . . . . . . . . . . . . . . . . .\n8\n \nPublication 3920 (September 2014)\n Page 11\n",
"How to complete the returns. Fill out Form 1040 or \n1040NR according to its instructions but do not reduce \nthe decedent's tax liability by any taxes that will be for-\ngiven. Attach to each return a computation of the income \ntax to be forgiven or a copy of Worksheet A or B. If filing \nForm 1040 or Form 1040NR, also attach any Forms W-2. \nIf the total tax forgiveness benefit provided for all eligible \nyears is less than $10,000, attach to the decedent's final \nreturn a computation of the additional tax payment al-\nlowed or a copy of Worksheet C.\nAlso, please write one of the following across the top of \npage 1 of each return.\nKITA—Oklahoma City\nKITA—9/11\nKITA—Anthrax\n“KITA” means “killed in terrorist attack.”\nNeed a copy of a previously filed return? You will \nfind it easier to prepare Form 1040X if you have a copy of \nthe decedent's previously filed tax return. If you need a \ncopy, use Form 4506. The IRS will provide a free copy of \nthe tax return if you write “DISASTER” in the top margin of \nForm 4506. Attach Letters Testamentary or other evi-\ndence to establish that you are authorized to act for the \ndecedent's estate. Send Form 4506 to the address shown \nin the form instructions.\nTaxpayer identification number. A taxpayer identifica-\ntion number must be furnished on the decedent's returns. \nThis is usually the decedent's social security number \n(SSN). However, a nonresident alien who is not eligible to \nget an SSN should have an individual taxpayer identifica-\ntion number (ITIN). If the decedent was a nonresident \nalien, had neither an SSN nor an ITIN, and was not re-\nquired to file a U.S. income tax return for any tax year, do \nnot apply for an ITIN. You may claim a refund by filing \nForm 1040NR without an SSN or ITIN.\nNecessary Documents\nPlease attach the following documents to the return or \namended return.\nProof of death. Attach a copy of the death certificate. \nAlso attach proof that the death was caused by wounds or \ninjury sustained in the Oklahoma City or September 11 at-\ntacks or their rescue or recovery operations or by an ill-\nness or disease arising from wounds or injury sustained \nduring one of these attacks or their rescue or recovery op-\nerations or by an illness incurred as a result of the anthrax \nattacks. You may show the cause of death from the death \ncertificate (if stated) or by attaching a letter from the treat-\ning physician, medical examiner, or hospital that explains \nthe cause of death. If the Department of Defense issued \nDD Form 1300, Report of Casualty, you can attach that \nform instead of the death certificate.\nForm 1310. You must send Form 1310 with all returns \nand claims for refund, unless either of the following ap-\nplies.\nYou are a surviving spouse filing an original or amen-\nded joint return with the decedent.\nYou are a personal representative filing an original \nForm 1040 or Form 1040NR for the decedent and a \ncourt certificate showing your appointment is attached \nto the return.\nA personal representative is an executor or administrator \nof a decedent's estate, as certified or appointed by the \ncourt. A copy of the decedent's will cannot be accepted as \nevidence that you are the personal representative.\nIf you have proof of death but do not have \nenough tax information to file a timely claim for a \nrefund, file Form 1040X with Form 1310. Include \na statement saying an amended return will be filed as \nsoon as the necessary tax information is available.\nWhere To File\nThe IRS has set up a special office for processing returns \nand claims for tax forgiveness.\nFile these returns and claims at the following address.\nInternal Revenue Service\n333 W. Pershing, Stop 6503, P5\nKansas City, MO 64108\nDo not send these returns or claims to any of the \naddresses shown in the tax form instructions.\nPrivate delivery services. Instead of using U.S. mail, \nyou can use certain private delivery services designated \nby the IRS to meet the “timely mailing as timely filing/\npaying” rule for tax returns and payments. These private \ndelivery services include only the following.\nDHL Express (DHL): DHL “Same Day” Service.\nFederal Express (FedEx): FedEx Priority Overnight, \nFedEx Standard Overnight, FedEx 2Day, FedEx Inter-\nnational Priority, and FedEx International First.\nUnited Parcel Service (UPS): UPS Next Day Air, UPS \nNext Day Air Saver, UPS 2nd Day Air, UPS 2nd Day \nAir A.M., UPS Worldwide Express Plus, and UPS \nWorldwide Express.\nThe private delivery service can tell you how to get written \nproof of the mailing date.\nFor updates to the list of designated private delivery \nservices, go to IRS.gov and enter “private delivery serv-\nice” in the search box.\nTIP\nCAUTION\n!\nPage 12 \nPublication 3920 (September 2014)\n",
"Estate Tax Reduction\nThe federal estate tax is reduced for taxable estates of in-\ndividuals who died as a result of the Oklahoma City at-\ntack, the September 11 attacks, and the anthrax attacks. \nThe estate tax is figured using the rate schedule on \npage 25 of the November 2001 revision of the Instructions \nfor Form 706. The estate tax is reduced by credits against \nthe estate tax, including the unified credit and the state \ndeath tax credit. These credits may reduce or eliminate \nthe estate tax due.\nRecovery from the September 11th Victim Compen\nsation Fund. The value of claims for a decedent's pain \nand suffering is normally included in the gross estate. \nHowever, if the estate chooses to seek recovery from this \nfund, the IRS has determined that, in view of the unique \ncircumstances of this situation and the high likelihood that \nsuch claims will be valued at a nominal or zero amount, \nthe claims will be valued at zero for estate tax purposes. \nThus, there are no federal estate tax consequences if an \nestate or beneficiary receives a recovery from this fund.\nWhich estates must file a return. For decedents dying \nin 2014, Form 706 must be filed by the executor for the \nestate of every U.S. citizen or resident whose gross es-\ntate, plus adjusted taxable gifts and specific exemption, is \nmore than $5,340,000; or whose executor elects to trans-\nfer the Deceased Spousal Unused Exclusion (DSUE) \namount to the surviving spouse, regardless of the size of \nthe decedent's gross estate. Form 706 must be filed within \n9 months after the date of decedent's death unless you re-\nceive an extension of time to file. Use Form 4768, Applica-\ntion for Extension of Time To File a Return and/or Pay \nU.S. Estate (and Generation-Skipping Transfer) Taxes, to \napply for an extension.\nWhere to file. Returns on which the special rate sched-\nule on page 25 of the November 2001 revision of the In-\nstructions for Form 706 is used should be sent to the fol-\nlowing address.\nDepartment of the Treasury\nInternal Revenue Service Center\nCincinnati, OH 45999\nMore information. For more information on the federal \nestate tax, see the Instructions for Form 706.\nStructured Settlement \nFactoring Transactions\nA person who acquires payment rights in a structured set-\ntlement arrangement after February 21, 2002, may be \nsubject to a 40% excise tax unless the transfer of the pay-\nment rights was approved in advance in a qualified order. \nThe excise tax is figured on the excess of the undiscoun-\nted amount of the payments being acquired over the total \namount actually paid to acquire them. However, this tax \nwill not apply to transactions entered into from February \n22, 2002, to July 1, 2002, if certain requirements are met. \nFor information about these requirements, see Internal \nRevenue Code section 5891.\nIllustrated Worksheets B and C\nSarah's husband Clifton died in June 2014 as a result of \ninjuries sustained in the September 11 attack on the \nWorld Trade Center. They filed joint returns and paid the \ntax due on or before April 15 each year since the Septem-\nber 11 attacks until Clifton’s death. Sarah chose to file a \njoint return as a surviving spouse for 2014. The returns for \n2011, 2012, 2013, and 2014 showed the following in-\ncome, deductions, and tax liabilities.\n2011\n2012\n2013\n2014\nWages (Sarah) . . . . . . . .\n$40,000\n$40,500\n$40,500\n$41,000\nNet profit from Schedule C, \nProfit or Loss From \nBusiness (Clifton) . . . . . .\n 25,000\n 25,200\n26,000\n26,000\nInterest income (joint \naccount) . . . . . . . . . . . .\n500\n550\n650\n650\nDeductible portion of \nself-employment tax \n(Clifton) . . . . . . . . . . . . .\n (1,766)\n (1,780)\n (1,837)\n (1,837)\nStandard deduction . . . . .\n \n(11,600) (11,900)\n \n(12,200)\n (12,400)\nPersonal exemptions (2) . .\n(7,400)\n (7,600)\n(7,800)\n (7,900)\nTaxable income\n. . . . . .\n$44,734\n$44,970 $45,313\n$45,513\nJoint income tax liability . . .\n$5,859\n$5,876\n$5,906\n$5,921\nPlus: Self-employment tax \n(Clifton) . . . . . . . . . . . . .\n 3,071\n3,095 \n3,674 \n3,674 \nTotal tax liability . . . . . .\n$8,930\n$8,971\n$9,580\n$9,595\nAfter Clifton died, his estate received income of $4,000. \nOf that amount, $1,000 is net profit from Schedule C re-\nceived before the end of 2014. This net profit is exempt \nfrom income tax as explained earlier under Income re\nceived after date of death. Sarah files Form 1041 because \nthe gross income of the estate for the tax year ($3,000) is \n$600 or more.\nTo determine how much of Clifton's tax liability for \n2011, 2012, 2013, and 2014 is to be forgiven, Sarah com-\npletes Worksheet B. She also completes Worksheet C be-\ncause the forgiven tax liabilities for 2011, 2012, 2013, and \n2014 (line 16 of Worksheet B) total less than $10,000.\nTo claim tax relief for 2011, 2012, and 2013, Sarah files \nForm 1040X and attaches a copy of Worksheet B. To \nclaim tax relief for 2014, she files Form 1040 and attaches \ncopies of Worksheets B and C.\nPublication 3920 (September 2014)\n Page 13\n",
"Figuring the Tax To Be Forgiven\nKeep for Your Records\n(For Decedents Who Filed a Joint Return)\n(A) \nFirst \nEligible \nYear\n(B) \nSecond \nEligible \nYear\n(C) \nThird \nEligible \nYear \n(D) \nFourth\nEligible \nYear \n1 Enter the years eligible for forgiveness. . . . . . . . . . . . . . . . . .\n1\n2011\n2012\n2013\n2014\n2 Enter the decedent's taxable income. Figure taxable \nincome as if a separate return had been filed. See Lines 2 \nand 6 in the Worksheet B instructions. . . . . . . . . . . . . . . . . . .\n2\n$13,984\n$13,945\n$14,488\n$14,338\n3 Enter the decedent's total tax. See Lines 3 and 7 in the \nWorksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n3\n4,742\n4,749\n5,399\n5,369\n4 Enter the total, if any, of the decedent's taxes not eligible for \nforgiveness. See Line 4 in the Worksheet B \ninstructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n4\n3,071\n3,095\n3,674\n3,674\n5 Subtract line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n5\n1,671\n1,654\n1,725\n1,695\n6 Enter the surviving spouse's taxable income. Figure taxable \nincome as if a separate return had been filed. See Lines 2 \nand 6 in the Worksheet B instructions. . . . . . . . . . . . . . . . . . .\n6\n30,750\n31,025\n30,825\n31,175\n7 Enter the surviving spouse's total tax. See Lines 3 and 7 in \nthe Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . .\n7\n4,191\n4,219\n4,178\n4,223\n8 Enter the total, if any, of the surviving spouse's taxes listed \nunder Line 4 in the Worksheet B instructions. . . . . . . . . . . . .\n8\n-0-\n-0-\n-0-\n-0-\n9 Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n9\n4,191\n4,219\n4,178\n4,223\n10 Add lines 5 and 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10\n5,862\n5,873\n5,903\n5,918\n11 Enter the total tax from the joint return. See Table 1, \nearlier, for the line number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11\n8,930\n8,971\n9,580\n9,595\n12 Add lines 4 and 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12\n3,071\n3,095\n3,674\n3,674\n13 Subtract line 12 from line 11.\n. . . . . . . . . . . . . . . . . . . . . . . . . . 13\n5,859\n5,876\n5,906\n5,921\n14 Divide line 5 by line 10. Enter the result as a decimal. . . . . . 14\n.285\n.282\n.292\n.286\n15 Tax adjustment to be reported with tax return. Multiply \nline 13 by line 14 and enter the result. . . . . . . . . . . . . . . . . . . . 15\n$1,670\n$1,657\n$1,725\n$1,693\n16 Tax forgiveness benefit provided. Enter the amount from \nline 15 if filing your claim within 3 years from the due date of \nthe return (including extensions). Otherwise, enter only the \npart of the tax from line 15 that is currently owed (not \nincluding interest and penalties) plus any payments made \nwithin the open refund period.\n. . . . . . . . . . . . . . . . . . . . . . . . . 16\n$1,670\n$1,657\n$1,725\n$1,693\nNote. If the total of columns (A), (B), (C), and (D) of line 16 (including any amounts shown on line 6 of Worksheet A) is less \nthan $10,000, also complete Worksheet C. \nAttach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or \namended tax return (Form 1040X) for each year listed on line 1.\nIf filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of the “Total \ntax” line as a decrease in tax. The IRS will determine the amount to be refunded.\nWorksheet B Illustrated. \nPage 14 \nPublication 3920 (September 2014)\n",
"Amount Treated as Tax Payment for \nDecedent's Last Tax Year\nWorksheet C Illustrated. \nKeep for Your Records\nCaution: The decedent is entitled to minimum relief of $10,000. Complete this worksheet only if the total tax forgiveness \nbenefit provided for all eligible years is less than $10,000.\n1 Minimum relief amount. \nNote: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C.\n. . . . . . . . . . . . . .\n1\n $10,000\n2 Enter the taxable income from Form 1041, line 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n2\n2,400\n3 Enter the distribution deduction from Form 1041, line 18. . . . . . . . . . . . . . . . . . . . . . . .\n3\n-0-\n4 Add lines 2 and 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n4\n2,400\n5 Enter exempt income received after death minus expenses allocable to exempt \nincome. (See Income received after date of death, earlier.) . . . . . . . . . . . . . . . . . . . . .\n5\n1,000\n6 Add lines 4 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n6\n3,400\n7 Figure the tax on line 6 using Form 1041, Schedule G. . . . . . . . . . . . . . . . . . . . . . . . . .\n7\n600\n8 Figure the tax on line 4 using Form 1041, Schedule G. . . . . . . . . . . . . . . . . . . . . . . . . .\n8\n360\n9 Tax on exempt income. Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . .\n9\n240\n10 Enter the total of columns (A)–(D) from line 6 of Worksheet A or line 16 of \nWorksheet B. If the decedent was not required to file tax returns for the eligible tax \nyears, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10\n6,745\n11 Add lines 9 and 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11\n$6,985\n12 Additional payment allowed. If line 11 is $10,000 or more, enter -0- and stop here. No \nadditional amount is allowed as a tax payment. Otherwise, subtract line 11 from line 1 and enter \nthe result.\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12\n$3,015\nNote. The amount on line 12 is allowed as a tax payment for the decedent's last tax year. \nAttach the computation of the additional payment allowed or a copy of this worksheet to the original or amended \nincome tax return for the decedent's last tax year. If filing Form 1040, include the amount from line 12 above on the \n“Credits from Form” line in the “Payments” section of Form 1040, page 2. Write “Sec. 692(d)(2) Payment” and the \namount to the right of the entry space. Also indicate whether a Form 1041 is being filed for the decedent's estate.\nIf filing Form 1040X, include the amount from line 12 above on Form 1040X on the “Refundable credits from” line, \ncolumns (B) and (C). Check the box next to “other (specify)” and write “Sec. 692(d)(2) Payment” on the blank line.\nPublication 3920 (September 2014)\n Page 15\n",
"Additional Worksheets\nThe following additional worksheets are provided for your \nconvenience.\nFiguring the Tax To Be Forgiven\nWorksheet A. \nKeep for Your Records\n(For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying \nWidow(er))\n(A) \nFirst \nEligible \nYear\n(B) \nSecond \nEligible \nYear\n(C) \nThird \nEligible \nYear\n(D)\nFourth\nEligible \nYear\n1\nEnter the years eligible for tax forgiveness. . . . . . . . . . .\n1\n2\nEnter the total tax from the decedent's income tax \nreturn. See Table 1, earlier, for the line number. . . . . . .\n2\n3\nEnter the following taxes, if any, shown on the \ndecedent's income tax return. (These taxes are not \neligible for forgiveness.)\na Self-employment tax. . . . . . . . . . . . . . . . . . . . . . . . . . .\n3a\nb Unreported social security and Medicare tax from \nForms 4137 and 8919. . . . . . . . . . . . . . . . . . . . . . . . . .\n3b\nc Tax on excess contributions to IRAs, Coverdell \neducation savings accounts (ESAs), Archer MSAs, \nor health savings accounts (HSAs). . . . . . . . . . . . . . .\n3c\nd Tax on excess accumulation in qualified retirement \nplans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n3d\ne Household employment taxes. . . . . . . . . . . . . . . . . . .\n3e\nf\nUncollected social security and Medicare or RRTA \ntax on tips or group-term life insurance. . . . . . . . . . . .\n3f\ng Tax on golden parachute payments.\n. . . . . . . . . . . . .\n3g\nh Health care: individual responsibility. . . . . . . . . . . . . .\n3h\ni\nAdditional Medicare Tax. . . . . . . . . . . . . . . . . . . . . . . .\n3i\nj\nNet Investment Income Tax. . . . . . . . . . . . . . . . . . . . .\n3j\nk Excise tax on insider stock compensation from an \nexpatriated corporation. . . . . . . . . . . . . . . . . . . . . . . . .\n3k\n4\nAdd lines 3a through 3k.\n. . . . . . . . . . . . . . . . . . . . . . . . .\n4\n5\nTax adjustment to be reported with tax return. \nSubtract line 4 from line 2. . . . . . . . . . . . . . . . . . . . . . . . .\n5\n6\nTax forgiveness benefit provided. Enter the amount \nfrom line 5 if filing your claim within 3 years from the due \ndate of the return (including extensions). Otherwise, \nenter only the part of the tax from line 5 that is currently \nowed (not including interest and penalties) plus any \npayments made within the open refund period. . . . . . . .\n6\nNote. If the total of columns (A), (B), (C), and (D) of line 6 (including any amounts shown on line 16 of Worksheet \nB) is less than $10,000, also complete Worksheet C. \nAttach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax \nreturn or amended tax return (Form 1040X) for each year listed on line 1.\nIf filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of the \n“Total tax” line as a decrease in tax. The IRS will determine the amount to be refunded.\nPage 16 \nPublication 3920 (September 2014)\n",
"Figuring the Tax To Be Forgiven\nKeep for Your Records\n(For Decedents Who Filed a Joint Return)\n(A) \nFirst \nEligible \nYear\n(B) \nSecond \nEligible \nYear\n(C) \nThird \nEligible \nYear \n(D) \nFourth \nEligible \nYear\n1 Enter the years eligible for forgiveness. . . . . . . . . . . . . . . . . . .\n1\n2 Enter the decedent's taxable income. Figure taxable income \nas if a separate return had been filed. See Lines 2 and 6 in \nthe Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . .\n2\n3 Enter the decedent's total tax. See Lines 3 and 7 in the \nWorksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n3\n4 Enter the total, if any, of the decedent's taxes not eligible for \nforgiveness. See Line 4 in the Worksheet B \ninstructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n4\n5 Subtract line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n5\n6 Enter the surviving spouse's taxable income. Figure taxable \nincome as if a separate return had been filed. See Lines 2 \nand 6 in the Worksheet B instructions. . . . . . . . . . . . . . . . . . . .\n6\n7 Enter the surviving spouse's total tax. See Lines 3 and 7 in \nthe Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . .\n7\n8 Enter the total, if any, of the surviving spouse's taxes listed \nunder Line 4 in the Worksheet B instructions. . . . . . . . . . . . . .\n8\n9 Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n9\n10 Add lines 5 and 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10\n11 Enter the total tax from the joint return. See Table 1, earlier, \nfor the line number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11\n12 Add lines 4 and 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12\n13 Subtract line 12 from line 11.\n. . . . . . . . . . . . . . . . . . . . . . . . . . . 13\n14 Divide line 5 by line 10. Enter the result as a decimal. . . . . . . 14\n15 Tax adjustment to be reported with tax return. Multiply \nline 13 by line 14 and enter the result. . . . . . . . . . . . . . . . . . . . . 15\n16 Tax forgiveness benefit provided. Enter the amount from \nline 15 if filing your claim within 3 years from the due date of \nthe return (including extensions). Otherwise, enter only the \npart of the tax from line 15 that is currently owed (not \nincluding interest and penalties) plus any payments made \nwithin the open refund period.\n. . . . . . . . . . . . . . . . . . . . . . . . . . 16\nNote. If the total of columns (A), (B), (C), and (D) of line 16 (including any amounts shown on line 6 of Worksheet A) is less \nthan $10,000, also complete Worksheet C. \nAttach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or \namended tax return (Form 1040X) for each year listed on line 1.\nIf filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of the “Total \ntax” line as a decrease in tax. The IRS will determine the amount to be refunded.\nWorksheet B. \nPublication 3920 (September 2014)\n Page 17\n",
"Amount Treated as Tax Payment for \nDecedent's Last Tax Year\nWorksheet C. \nKeep for Your Records\nCaution: The decedent is entitled to minimum relief of $10,000. Complete this worksheet only if the total tax forgiveness \nbenefit provided for all eligible years is less than $10,000.\n1 Minimum relief amount. \nNote: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C.\n. . . . . . . . . . . . . .\n1 $10,000\n2 Enter the taxable income from Form 1041, line 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n2 \n3 Enter the distribution deduction from Form 1041, line 18. . . . . . . . . . . . . . . . . . . . . . . . .\n3 \n4 Add lines 2 and 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n4 \n5 Enter exempt income received after death minus expenses allocable to exempt \nincome. (See Income received after date of death, earlier.) . . . . . . . . . . . . . . . . . . . . . .\n5 \n6 Add lines 4 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n6 \n7 Figure the tax on line 6 using Form 1041, Schedule G. . . . . . . . . . . . . . . . . . . . . . . . . . .\n7 \n8 Figure the tax on line 4 using Form 1041, Schedule G. . . . . . . . . . . . . . . . . . . . . . . . . . .\n8 \n9 Tax on exempt income. Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n9 \n10 Enter the total of columns (A)–(D) from line 6 of Worksheet A or line 16 of \nWorksheet B. If the decedent was not required to file tax returns for the eligible tax \nyears, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 \n11 Add lines 9 and 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 \n12 Additional payment allowed. If line 11 is $10,000 or more, enter -0- and stop here. No additional \namount is allowed as a tax payment. Otherwise, subtract line 11 from line 1 and enter the \nresult. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12\n \nNote. The amount on line 12 is allowed as a tax payment for the decedent's last tax year. \nAttach the computation of the additional payment allowed or a copy of this worksheet to the original or amended \nincome tax return for the decedent's last tax year. If filing Form 1040, include the amount from line 12 above on the \n“Credits from Form” line in the “Payments” section of Form 1040, page 2. Write “Sec. 692(d)(2) Payment” and the \namount to the right of the entry space. Also indicate whether a Form 1041 is being filed for the decedent's estate.\nIf filing Form 1040X, include the amount from line 12 above on Form 1040X on the “Refundable credits from” line, \ncolumns (B) and (C). Check the box next to “other (specify)” and write “Sec. 692(d)(2) Payment” on the blank line.\nPage 18 \nPublication 3920 (September 2014)\n",
"How To Get Tax Help\nSpecial IRS assistance. The IRS is providing special \nhelp for those affected by the terrorist attacks, as well as \nsurvivors and personal representatives of the victims. We \nhave set up a special toll-free number for people who may \nhave trouble filing or paying their taxes because they were \naffected by the terrorist attacks, or who have other tax is-\nsues related to the attacks.\nCall 18665625227\nMonday through Friday\nIn English–7 a.m. to 7 p.m. local time\nIn Spanish–7 a.m. to 7 p.m. local time\nThe IRS web site at www.irs.gov has notices and other \ntax relief information. Check it periodically for any new \nguidance or to see if Congress has enacted new legisla-\ntion.\nFor current information on federally declared disaster \nareas, check the Federal Emergency Management \nAgency Web site at www.fema.gov.\nWhether it's help with a tax issue, preparing your tax re-\nturn or a need for a free publication or form, get the help \nyou need the way you want it: online, use a smart phone, \ncall or walk in to an IRS office or volunteer site near you.\nFree help with your tax return. You can get free help \npreparing your return nationwide from IRS-certified volun-\nteers. The Volunteer Income Tax Assistance (VITA) pro-\ngram helps low-to-moderate income, elderly, people with \ndisabilities, and limited English proficient taxpayers. The \nTax Counseling for the Elderly (TCE) program helps tax-\npayers age 60 and older with their tax returns. Most VITA \nand TCE sites offer free electronic filing and all volunteers \nwill let you know about credits and deductions you may be \nentitled to claim. In addition, some VITA and TCE sites \nprovide taxpayers the opportunity to prepare their own re-\nturn with help from an IRS-certified volunteer. To find the \nnearest VITA or TCE site, you can use the VITA Locator \nTool on IRS.gov, download the IRS2Go app, or call \n1-800-906-9887.\nAs part of the TCE program, AARP offers the Tax-Aide \ncounseling program. To find the nearest AARP Tax-Aide \nsite, visit AARP's website at www.aarp.org/money/taxaide \nor call 1-888-227-7669. For more information on these \nprograms, go to IRS.gov and enter “VITA” in the search \nbox.\nInternet. IRS.gov and IRS2Go are ready when you \nare —24 hours a day, 7 days a week.\nDownload the free IRS2Go app from the iTunes app \nstore or from Google Play. Use it to check your refund \nstatus, order transcripts of your tax returns or tax ac-\ncount, watch the IRS YouTube channel, get IRS news \nas soon as it's released to the public, subscribe to fil-\ning season updates or daily tax tips, and follow the \nIRS Twitter news feed, @IRSnews, to get the latest \nfederal tax news, including information about tax law \nchanges and important IRS programs.\nCheck the status of your 2014 refund with the Where's \nMy Refund? application on IRS.gov or download the \nIRS2Go app and select the Refund Status option. The \nIRS issues more than 9 out of 10 refunds in less than \n21 days. Using these applications, you can start \nchecking on the status of your return within 24 hours \nafter we receive your e-filed return or 4 weeks after \nyou mail a paper return. You will also be given a per-\nsonalized refund date as soon as the IRS processes \nyour tax return and approves your refund. The IRS up-\ndates Where's My Refund? every 24 hours, usually \novernight, so you only need to check once a day.\nUse the Interactive Tax Assistant (ITA) to research \nyour tax questions. No need to wait on the phone or \nstand in line. The ITA is available 24 hours a day, 7 \ndays a week, and provides you with a variety of tax in-\nformation related to general filing topics, deductions, \ncredits, and income. When you reach the response \nscreen, you can print the entire interview and the final \nresponse for your records. New subject areas are \nadded on a regular basis.\nAnswers not provided through ITA may be found in \nTax Trails, one of the Tax Topics on IRS.gov which \ncontain general individual and business tax informa-\ntion or by searching the IRS Tax Map, which includes \nan international subject index. You can use the IRS \nTax Map, to search publications and instructions by \ntopic or keyword. The IRS Tax Map integrates forms \nand publications into one research tool and provides \nsingle-point access to tax law information by subject. \nWhen the user searches the IRS Tax Map, they will be \nprovided with links to related content in existing IRS \npublications, forms and instructions, questions and \nanswers, and Tax Topics.\nYou can immediately view and print for free all 5 types \nof individual federal tax transcripts (tax returns, tax ac-\ncount, record of account, wage and income state-\nment, and certification of non-filing) using Get Tran\nscript. You can also ask the IRS to mail a return or an \naccount transcript to you. Only the mail option is avail-\nable by choosing the Tax Records option on the \nIRS2Go app by selecting Mail Transcript on IRS.gov \nor by calling 1-800-908-9946. Tax return and tax ac-\ncount transcripts are generally available for the current \nyear and the past three years.\nDetermine if you are eligible for the EITC and estimate \nthe amount of the credit with the Earned Income Tax \nCredit (EITC) Assistant.\nVisit Understanding Your IRS Notice or Letter to get \nanswers to questions about a notice or letter you re-\nceived from the IRS.\nIf you received the First Time Homebuyer Credit, you \ncan use the First Time Homebuyer Credit Account \nLookup tool for information on your repayments and \naccount balance.\nPublication 3920 (September 2014)\n Page 19\n",
"Check the status of your amended return using \nWhere's My Amended Return? Go to IRS.gov and en-\nter Where's My Amended Return? in the search box. \nYou can generally expect your amended return to be \nprocessed up to 12 weeks from the date we receive it. \nIt can take up to 3 weeks from the date you mailed it to \nshow up in our system.\nMake a payment using one of several safe and con-\nvenient electronic payment options available on \nIRS.gov. Select the Payment tab on the front page of \nIRS.gov for more information.\nDetermine if you are eligible and apply for an online \npayment agreement, if you owe more tax than you can \npay today.\nFigure your income tax withholding with the IRS \nWithholding Calculator on IRS.gov. Use it if you've \nhad too much or too little withheld, your personal sit-\nuation has changed, you're starting a new job or you \njust want to see if you're having the right amount with-\nheld.\nDetermine if you might be subject to the Alternative \nMinimum Tax by using the Alternative Minimum Tax \nAssistant on IRS.gov.\nRequest an Electronic Filing PIN by going to \nIRS.gov and entering Electronic Filing PIN in the \nsearch box.\nDownload forms, instructions and publications, includ-\ning accessible versions for people with disabilities.\nLocate the nearest Taxpayer Assistance Center \n(TAC) using the Office Locator tool on IRS.gov, or \nchoose the Contact Us option on the IRS2Go app and \nsearch Local Offices. An employee can answer ques-\ntions about your tax account or help you set up a pay-\nment plan. Before you visit, check the Office Locator \non IRS.gov, or Local Offices under Contact Us on \nIRS2Go to confirm the address, phone number, days \nand hours of operation, and the services provided. If \nyou have a special need, such as a disability, you can \nrequest an appointment. Call the local number listed \nin the Office Locator, or look in the phone book under \nUnited States Government, Internal Revenue Service.\nApply for an Employer Identification Number (EIN). \nGo to IRS.gov and enter Apply for an EIN in the \nsearch box.\nRead the Internal Revenue Code, regulations, or other \nofficial guidance.\nRead Internal Revenue Bulletins.\nSign up to receive local and national tax news and \nmore by email. Just click on “subscriptions” above the \nsearch box on IRS.gov and choose from a variety of \noptions.\nPhone. You can call the IRS, or you can carry it in your \npocket with the IRS2Go app on your smart phone or tab-\nlet. Download the free IRS2Go app from the iTunes app \nstore or from Google Play.\nCall to locate the nearest volunteer help site, \n1-800-906-9887 or you can use the VITA Locator Tool \non IRS.gov, or download the IRS2Go app. \nLow-to-moderate income, elderly, people with disabili-\nties, and limited English proficient taxpayers can get \nfree help with their tax return from the nationwide Vol-\nunteer Income Tax Assistance (VITA) program. The \nTax Counseling for the Elderly (TCE) program helps \ntaxpayers age 60 and older with their tax returns. Most \nVITA and TCE sites offer free electronic filing. Some \nVITA and TCE sites provide IRS-certified volunteers \nwho can help prepare your tax return. Through the \nTCE program, AARP offers the Tax-Aide counseling \nprogram; call 1-888-227-7669 to find the nearest \nTax-Aide location.\nCall the automated Where's My Refund? information \nhotline to check the status of your 2014 refund 24 \nhours a day, 7 days a week at 1-800-829-1954. If you \ne-file, you can start checking on the status of your re-\nturn within 24 hours after the IRS receives your tax re-\nturn or 4 weeks after you've mailed a paper return. \nThe IRS issues more than 9 out of 10 refunds in less \nthan 21 days. Where's My Refund? will give you a per-\nsonalized refund date as soon as the IRS processes \nyour tax return and approves your refund. Before you \ncall this automated hotline, have your 2014 tax return \nhandy so you can enter your social security number, \nyour filing status, and the exact whole dollar amount of \nyour refund. The IRS updates Where's My Refund? \nevery 24 hours, usually overnight, so you only need to \ncheck once a day. Note, the above information is for \nour automated hotline. Our live phone and walk-in as-\nsistors can research the status of your refund only if \nit's been 21 days or more since you filed electronically \nor more than 6 weeks since you mailed your paper re-\nturn.\nCall the Amended Return Hotline, 1-866-464-2050, to \ncheck the status of your amended return. You can \ngenerally expect your amended return to be pro-\ncessed up to 12 weeks from the date we receive it. It \ncan take up to 3 weeks from the date you mailed it to \nshow up in our system.\nCall 1-800-TAX-FORM (1-800-829-3676) to order cur-\nrent-year forms, instructions, publications, and \nprior-year forms and instructions (limited to 5 years). \nYou should receive your order within 10 business \ndays.\nCall TeleTax, 1-800-829-4477, to listen to pre-recor-\nded messages covering general and business tax in-\nformation. If, between January and April 15, you still \nhave questions about the Form 1040, 1040A, or \n1040EZ (like filing requirements, dependents, credits, \nSchedule D, pensions and IRAs or self-employment \ntaxes), call 1-800-829-1040.\nCall using TTY/TDD equipment, 1-800-829-4059 to \nask tax questions or order forms and publications. The \nPage 20 \nPublication 3920 (September 2014)\n",
"TTY/TDD telephone number is for people who are \ndeaf, hard of hearing, or have a speech disability. \nThese individuals can also contact the IRS through re-\nlay services such as the Federal Relay Service.\nWalkin. You can find a selection of forms, publications \nand services — in-person.\nProducts. You can walk in to some post offices, libra-\nries, and IRS offices to pick up certain forms, instruc-\ntions, and publications. Some IRS offices, libraries, \nand city and county government offices have a collec-\ntion of products available to photocopy from reprodu-\ncible proofs.\nServices. You can walk in to your local TAC for \nface-to-face tax help. An employee can answer ques-\ntions about your tax account or help you set up a pay-\nment plan. Before visiting, use the Office Locator tool \non IRS.gov, or choose the Contact Us option on the \nIRS2Go app and search Local Offices for days and \nhours of operation, and services provided.\nMail. You can send your order for forms, instructions, and \npublications to the address below. You should receive a \nresponse within 10 business days after your request is re-\nceived.\nInternal Revenue Service\n1201 N. Mitsubishi Motorway\nBloomington, IL 61705-6613\n \nThe Taxpayer Advocate Service Is Here to Help You. The \nTaxpayer Advocate Service (TAS) is your voice at the \nIRS. Our job is to ensure that every taxpayer is treated \nfairly and that you know and understand your rights.\n \nWhat can TAS do for you? We can offer you free help with \nIRS problems that you can't resolve on your own. We \nknow this process can be confusing, but the worst thing \nyou can do is nothing at all! TAS can help if you can't re-\nsolve your tax problem and:\nYour problem is causing financial difficulties for you, \nyour family, or your business.\nYou face (or your business is facing) an immediate \nthreat of adverse action.\nYou've tried repeatedly to contact the IRS but no one \nhas responded, or the IRS hasn't responded by the \ndate promised.\n \nIf you qualify for our help, you'll be assigned to one advo-\ncate who'll be with you at every turn and will do everything \npossible to resolve your problem. Here's why we can help:\nTAS is an independent organization within the IRS.\nOur advocates know how to work with the IRS.\nOur services are free and tailored to meet your needs.\nWe have offices in every state, the District of Colum-\nbia, and Puerto Rico.\n \nHow can you reach us? If you think TAS can help you, call \nyour local advocate, whose number is in your local direc-\ntory and at Taxpayer Advocate, or call us toll-free at \n1-877-777-4778.\n \nHow else does TAS help taxpayers?\n \nTAS also works to resolve large-scale, systemic problems \nthat affect many taxpayers. If you know of one of these \nbroad issues, please report it to us through our Systemic \nAdvocacy Management System.\nLow Income Taxpayer Clinics\nLow Income Taxpayer Clinics (LITCs) serve individuals \nwhose income is below a certain level and need to resolve \ntax problems such as audits, appeals and tax collection \ndisputes. Some clinics can provide information about tax-\npayer rights and responsibilities in different languages for \nindividuals who speak English as a second language. Visit \nTaxpayer Advocate or see IRS Publication 4134, Low In-\ncome Taxpayer Clinic List.\nPublication 3920 (September 2014)\n Page 21\n",
"To help us develop a more useful index, please let us know if you have ideas for index entries.\nSee “Comments and Suggestions” in the “Introduction” for the ways you can reach us.\nIndex\n \n$10,000 minimum relief:\nTax forgiveness 8\nA\nAmended returns 11\nDisability payments 3\nTax forgiveness 11\nAnthrax attacks:\n (See also Tax forgiveness)\nYears eligible for tax forgiveness 4\nAssistance 19\n (See also Tax help)\nHours 2\nPhone number 2\nTopics not covered in this \npublication 2\nB\nBureau of Justice Assistance 4\nC\nComments and suggestions 2\nD\nDeath benefits 4\nPublic safety officers:\nBureau of Justice Assistance 4\nGovernment plan annuity 4\nSurvivors of 4\nDecedents (See Tax forgiveness)\nDisability payments 2\nExamples 2, 3\nNontaxable payments reported as \ntaxable 3\nWhich form to use 3\nPayments not covered 2\nSSDI 2, 3\nTaxes incorrectly withheld 3\nWhich form to use:\nForm 1040 3\nForm 1040NR 3\nNonresident alien 3\nE\nEstate tax reduction 13\nForm 706:\nWhen to file 13\nWhere to file 13\nWho must file 13\nSeptember 11th Victim \nCompensation Fund of 2001 13\nExamples:\nDisability payments 2, 3\nTax forgiveness:\nMinimum amount of relief 9\nRefund of taxes paid 11\nSeptember 11 attacks 5\nF\nFiling deadline:\nTax forgiveness:\nCredit for taxes paid 4\nRefund of taxes paid 4\nForgiveness, Tax (See Tax \nforgiveness)\nForm 1040:\nDisability payments 3\nTax forgiveness 11\nForm 1040NR:\nDisability payments 3\nTax forgiveness 11\nForm 1040X:\nDisability payments 3\nExample 3\nTax forgiveness 4, 11\nForm 1041:\nIncome received after death 9\nTax forgiveness 4\nForm 706 13\nFree tax services 19\nG\nGovernment plan annuity 4\nH\nHead of household:\n (See also Tax forgiveness)\nFiguring tax forgiveness 5, 6, 16\nHelp (See Tax help)\nI\nIncome received after death:\nTax forgiveness 9\nInstructions:\nWorksheet B 8\nWorksheet C 10\nWorksheet D 11\nJ\nJoint returns:\n (See also Tax forgiveness)\nFiguring tax forgiveness 5, 7, 13, \n14, 17\nM\nMarried filing separately:\n (See also Tax forgiveness)\nFiguring tax forgiveness 5, 6, 16\nO\nOklahoma City attack:\n (See also Tax forgiveness)\nYears eligible for tax forgiveness 4\nOrdering:\nForms 2\nPublications 2\nOrdering a filed tax return 12\nP\nPrivate delivery services 12\nPublications (See Tax help)\nPublic safety officers:\nSurvivors of 4\nQ\nQualified disaster relief \npayments 3\nQualifying widow(er):\n (See also Tax forgiveness)\nFiguring tax forgiveness 5, 6, 16\nR\nRefund of taxes paid 4\nS\nSeptember 11 attacks:\n (See also Tax forgiveness)\nYears eligible for tax forgiveness 4\nSeptember 11th Victim \nCompensation Fund of 2001:\nPayments to survivors 2\nReduction of estate tax 13\nSingle filing status:\n (See also Tax forgiveness)\nFiguring tax forgiveness 5, 6, 16\nStructured settlement factoring \ntransactions 13\nSurvivors, Payments to 2\nSurvivors, Payments to:\nDeath benefits 4\nDisability payments (See Disability \npayments)\nPublic safety officers 4\nQualified disaster relief payments 3\nPage 22\nPublication 3920 (September 2014)\n",
"September 11th Victim \nCompensation Fund of 2001 2\nSurvivors:\nOf the attacks (See Survivors, \nPayments to)\nOf victims of the \nattacks (See Survivors, \nPayments to)\nT\nTable 1: Total tax line 8\nTax forgiveness 4\n$10,000 minimum relief 8, 10, 11, \n13, 15, 18\nWorksheet A 8\nWorksheet B 8\nWorksheet C 8, 10, 13, 15, 18\nWorksheet D 11\nCredit for taxes paid 4\nDeadline for filing 4\nExamples:\nSeptember 11 attacks 5\nFiguring the amount 5, 8\nBoth spouses died 5\nCommunity property states 5\nHead of household 5, 6, 16\nIncome received after death 9\nJoint returns 5, 7, 13, 14, 17\nMarried filing separately 5, 6, 16\nMinimum amount of relief 8\nQualifying widow(er) 5, 6, 16\nSingle filing status 5, 6, 16\nTax not eligible for forgiveness 9\nWorksheet A 5, 6, 8, 16\nWorksheet B 5, 7, 8, 13, 14, 17\nFilling out the tax return 12\nHow to claim 11, 12\nForm 1310, When required 12\nNecessary documents 12\nOrdering a filed tax return 12\nPrivate delivery services, \nUsing 12\nProof of death, What qualifies \nas 12\nTaxpayer identification number \n(TIN) requirement 12\nWhere to file 12\nNonresident alien:\nTaxpayer identification number \n(TIN) requirement 12\nWhich form to use 11\nRefund of taxes paid 4, 11\nExamples 11\nTax not eligible for forgiveness 9\nWhich form to use:\nAmended returns 11\nForm 1040 11\nForm 1040NR 11\nForm 1040X 11\nForm 1041 9\nNonresident alien 11\nYears eligible 4\nAnthrax attacks 4\nOklahoma City attack 4\nSeptember 11 attacks 4\nTax help 19\nTax return:\nOrdering a filed return 12\nW\nWhere to file, Special rules for:\nEstate tax reduction 13\nTax forgiveness 12\nWorksheet A 5\nBlank 6, 16\nLine 2, total tax 8\nWorksheet B 5\nBlank 7, 17\nIllustrated 13, 14\nInstructions 8\nLine 11, total tax 8\nWorksheet C:\nBlank 10, 18\nIllustrated 13, 15\nInstructions 10\nWorksheet D:\nBlank 11\nInstructions 11\nPublication 3920 (September 2014)\nPage 23\n"
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p4221nc.pdf
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0914 Publ 4221-NC (PDF)
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https://www.irs.gov/pub/irs-pdf/p4221nc.pdf
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[
"i\nTax Exempt and Government Entities\nEXEMPT ORGANIZATIONS\n501\n(a)\nCompliance Guide \nfor Tax-Exempt \nOrganizations\n,,,\n(Other than 501(c)(3) Public \nCharities and Private Foundations),\nInside:\nActivities that may jeopardize \nexempt status,,\nFederal information, tax returns \nor notices that must be filed,,\nRecordkeeping—why, what, when,,\nChanges to be reported to the IRS,,\nRequired public disclosures,,\nResources for tax-exempt organizations,,\n",
"1\nContents,\nWhat Activities May Jeopardize an Organization’s Tax-Exempt Status? . . . . . . . . . . . . . . . . . . . . . . 4,\nPrivate Benefit and Inurement, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,\nPolitical Campaign Activities, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,\nLegislative Activities, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,\nWhat Federal Information Returns, Tax Returns and Notices Must Be Filed? . . . . . . . . . . . . . . . . 7\n,\nForm 990, Return of Organization Exempt From Income Tax, Form 990-EZ, \nShort Form Return of Organization Exempt From Income Tax and Form 990-N, \nElectronic Notice (e-Postcard) for Tax-Exempt Organizations not Required \nTo File Form 990 or 990-EZ, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7\n,\nForm 990-T, Exempt Organization Business Income Tax Return, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,\nEmployment Tax Returns, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,\nWhy Keep Records? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,\nEvaluate Programs, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,\nMonitor Budgetary Results, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,\nPrepare Financial Statements, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,\nPrepare Annual Information and Tax Returns, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,\nIdentify Sources of Receipts, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,\nSubstantiate Revenues, Expenses and Deductions for Unrelated Business \nIncome Tax (UBIT) Purposes, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,\nWhat Records Should Be Kept? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,\nAccounting Periods and Methods, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,\nSupporting Documents, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17\n,\nHow Long Should Records Be Kept? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17\n,\nRecord Retention Periods, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17\n,\n",
"2\nContents (cont’d),\nHow Should Changes Be Reported to the IRS? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,\nReporting Changes on the Annual Information Return, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,\nDetermination Letters and Private Letter Ruling Requests, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,\nWhat Disclosures Are Required? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,\nPublic Inspection of Exemption Applications and Annual Returns, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,\nSale of Free Government Information, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,\nSolicitation Notice, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,\nNondeductible Lobbying and Political Expenditures, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,\nCharitable Contributions, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,\nHow Do You Get IRS Assistance and Information?, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,\nSpecialized Assistance for Tax-Exempt Organizations, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,\nTax Publications for Exempt Organizations, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,\nForms for Exempt Organizations, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,\nGeneral IRS Assistance, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,\nTax-Exempt Organization Reference Chart, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,\n",
"3\n501\n(c)(3)\nCompliance Guide for Tax-Exempt Organizations\n(Other than 501(c)(3) Public Charities and Private Foundations),\nF\nederal tax law provides tax benefits to nonprofit organizations recognized as exempt \n \nfrom federal income tax under section 501(a) of the Internal Revenue Code (the Code). \nThe Code requires that tax-exempt organizations comply with federal tax law to maintain \ntax-exempt status and avoid penalties.\nIn this publication, the IRS focuses on organizations that have been granted tax exemption \nunder section 501(a) of the Code other than section 501(c)(3) public charities and private \nfoundations and section 527 political organizations. For information on the compliance \nrequirements of 501(c)(3) public charities and private foundations, see Publications 4221-PC, \nCompliance Guide for 501(c)(3) Public Charities, and 4221-PF, Compliance Guide for 501(c)(3) \nPrivate Foundations. For information on 527 political organizations, see www.irs.gov/polorgs.\nThis publication addresses activities that could jeopardize a tax-exempt organization’s \nexempt status and identifies general compliance requirements on recordkeeping, reporting, \nand disclosure for exempt organizations (EOs). Content includes references to the statute, \nTreasury regulations, IRS publications and IRS forms with instructions. This publication is \nneither comprehensive nor intended to address every situation.\nTo learn more about compliance rules and procedures that apply to organizations that are \nexempt from federal income tax, see IRS Publication 557, Tax-Exempt Status for Your \nOrganization, as well as the Life Cycles of Sections 501(c)(3), (4), (5) and (6) Organizations \nand Information for Other Non-profit Organizations on www.irs.gov/eo. Stay abreast of new \nEO information, also on this Web site, by signing up for the EO Update, a free e-newsletter \nfor tax-exempt organizations and practitioners who represent them. For further assistance, \nconsult a tax adviser.\n",
"4\nWhat Activities May Jeopardize an \nOrganization’s Tax-Exempt Status?\n \nOnce a non-profit organization has completed the application process and has \nestablished that it is exempt from federal income tax, the organization’s officers, \ndirectors, trustees and employees still have ongoing responsibilities. They must \nensure that the organization maintains its tax-exempt status and meets its ongoing \ncompliance responsibilities.\nA tax-exempt organization that does not restrict its participation in certain activities \nand does not absolutely refrain from others, risks failing the operational require\nments for exemption from income tax and jeopardizing its tax-exempt status. The \nfollowing summarizes certain limitations on the activities of some common types \nof tax-exempt organizations.\nPrivate Benefit and Inurement,\nMany types of non-501(c)(3) tax-exempt organizations including social welfare \norganizations, business leagues and trade associations, social clubs, voluntary \nemployees’ beneficiary associations, cemetery companies, and veterans’ organ\nizations, among others, are prohibited, by statute, from allowing inurement of net \nearnings or assets of the organization to benefit any insider. An insider is a person \nwho has a personal or private interest in the activities of the organization such \nas an officer, director, or a key employee. An example of prohibited inurement \nwould include payment of unreasonable compensation to an insider. \nThe types of activities that may be considered to constitute prohibited inurement \nof earnings may differ from one Code section to another depending on the \nspecified exempt purposes of the organization. Accordingly, an activity that will be \nconsidered to result in inurement of earnings to a member of a labor organization \nmay not result in inurement of earnings to a member of an agricultural organization \nor a social welfare organization because the organizations are organized and \noperated for different exempt purposes. Go to the Life Cycles of 501(c)(4), (5) and (6) \nOrganizations at www.irs.gov/eo for further information about the inurement prohi\nbition and providing benefits to members. In any case, inurement may jeopardize \nan organization’s exempt status.\n501(c)(4) Social Welfare Organizations,\nIn cases where a 501(c)(4) organization provides an excess economic benefit to \na person who is in a position to exercise substantial influence over its affairs, the \norganization has engaged in an excess benefit transaction (see Reporting Excess \n",
"5\nBenefit Transactions on page 8) that subjects the person to possible excise taxes. \nGo to the Life Cycle of a 501(c)(4) Organization at www.irs.gov/eo for details about \ninurement, private benefit, and excess benefit transactions.\nPolitical Campaign Activities,\nSection 501(c)(4), (5) and (6) organizations may engage in political campaign \nactivities on behalf of or in opposition to candidates for public office. Political \ncampaign activities are those that influence or attempt to influence the selection, \nnomination, election or appointment of an individual to a federal, state, or local \npublic office. In order to retain its tax-exempt status under section 501(c)(4), (5) \nor (6), an organization must ensure that its political campaign activities do not \nconstitute the organization’s primary activity.\nWhen a 501(c)(4), (5) or (6) organization’s communication explicitly advocates the \nelection or defeat of an individual to public office, the communication is considered \npolitical campaign activity. A tax-exempt organization that makes expenditures for \npolitical campaign activities shall be subject to tax in an amount equal to its net \ninvestment income for the year or the aggregate amount expended on political \ncampaign activities during the year, whichever is less.\nSometimes a 501(c)(4), (5) or (6) organization takes positions on public policy \nissues that divide candidates in an election for public office. In these situations, \nthe organization needs to consider all the facts and circumstances of the commu\nnication in order to determine whether the expenditure is directed toward \ncampaign intervention or is merely issue advocacy related to the organization’s \nexempt purpose.\nThe IRS considers the following factors that tend to show an advocacy communi\ncation is political campaign activity when evaluating a communication on a public \npolicy issue:\nn The communication identifies a candidate for public office;\nn The timing of the communication coincides with an electoral campaign;\nn The communication targets voters in a particular election;\nn The communication identifies the candidate’s position on the public policy \nissue that is the subject of the communication;\nn The position of the candidate on the public policy issue has been raised \nas distinguishing the candidate from others in the campaign, either in the \ncommunication itself or in other public communications; and,\nn The communication is not part of an ongoing series of substantially similar \nadvocacy communications by the organization on the same issue.\n",
"6\nFactors that tend to show that an advocacy communication on a public policy \nissue is not political campaign activity include the following:\nn The absence of any one or more of the factors listed above;\nn The communication identifies specific legislation, or a specific event outside \nthe control of the organization, that the organization hopes to influence;\nn The timing of the communication coincides with a specific event outside the \ncontrol of the organization that the organization hopes to influence, such as a \nlegislative vote or other major legislative action (for example, a hearing before \na legislative committee on the issue that is the subject of the communication);\nn The communication identifies the candidate solely as a government official who \nis in a position to act on the public policy issue in connection with the specific \nevent (such as a legislator who is eligible to vote on the legislation); and,\nn The communication identifies the candidate solely in the list of key or principal \nsponsors of the legislation that is the subject of the communication.\nIn lieu of using its own funds, a 501(c)(4), (5) or (6) organization may establish a \nsection 527 political organization, called a separate segregated fund, to engage \nin political campaign activities. Separate segregated funds must give notice to the \nIRS in order to be tax exempt unless the fund is required to report to the Federal \nElection Commission as a political committee, it reasonably anticipates that it will \nalways have less than $25,000 in gross receipts for any taxable year or meets one \nof the other exceptions. Access www.irs.gov/polorgs for additional information \nabout political organizations.\nLegislative Activities,\nIn general, section 501(c)(4), 501(c)(5) or 501(c)(6) tax-exempt organizations may \nengage in an unlimited amount of lobbying (i.e., attempting to influence legisla\ntion), provided that the lobbying is related to the organization’s exempt purpose. \nAn organization will be regarded as attempting to influence legislation if it con\ntacts, or urges the public to contact, members or employees of a legislative body \nfor purposes of proposing, supporting or opposing legislation, or if the organiza\ntion advocates the adoption or rejection of legislation.\nThere are non-tax related restrictions on lobbying that tax-exempt organizations \nshould be aware of as well. Section 18 of the Lobbying Disclosure Act of 1995, \nP.L.104-65, prohibits section 501(c)(4) organizations from receiving federal grants, \nloans, or other awards if they engage in lobbying activities, even if they conduct \nthe lobbying with their own funds.\nReview the Life Cycles of 501(c)(4), 501(c)(5) and 501(c)(6) Organizations at \nwww.irs.gov/eo for information about the rules prohibiting substantial unrelated \nlobbying activities as well as the notice and reporting requirements applicable to \ncertain organizations that incur nondeductible lobbying and political expenses.\n",
"7\nWhat Federal Information Returns, \nTax Returns and Notices Must Be Filed?\nMost tax-exempt organizations have annual information reporting obligations \nunder the Code to ensure that they continue to be recognized as tax-exempt. \nAnd, although they are exempt from federal income tax, they may be liable for \nemployment taxes, unrelated business income tax, excise taxes, and certain \nstate and local taxes, which could result in additional filing requirements.\nForm 990, Return of Organization Exempt From Income Tax, \nForm 990-EZ, Short Form Return of Organization Exempt From \nIncome Tax and Form 990-N, Electronic Notice (e-Postcard) for \nTax-Exempt Organizations Not Required To File Form 990 or 990-EZ,\nTax-exempt organizations generally must file either a:\nn Form 990, Return of Organization Exempt from Income Tax, \nn Form 990-EZ, Short Form Return of Organization Exempt from Income Tax, or,\nn Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not \nRequired To File Form 990 or 990-EZ,\nThe type of form or notice required generally is determined by the amount of the \nexempt organization’s gross receipts or total assets. \nFiling Thresholds,\nAn organization’s requirement to file the Form 990 is determined by the amount \nof its gross receipts or total assets. The chart below explains which Form 990 a \ntax-exempt organization is required to file.\nFiling Dates,\nForms 990, 990-EZ and 990-N must be filed by the 15th day of the fifth month \nafter the end of the organization’s annual accounting period. For example, if an \norganization’s tax period ends on December 31, the form is due May 15 of the \nfollowing year.\n\t\nForm\n to File,,\nGross receipts normally ≤ $50,000,, \n 990-N,,\nGross receipts > $50,000 and < $200,000, \nand Total assets < $500,000,, \n 990-EZ \n or 990,,\nGross receipts ≥ $200,000, or \nTotal assets ≥ $500,000,,\n 990,, \n \n \n",
"8\nThe due date for Form 990 and 990-EZ may be extended automatically for three \nmonths by filing Form 8868, Application for Extension of Time To File an Exempt \nOrganization Return, before the due date. An additional three-month extension may \nbe requested on Form 8868 if the organization shows reasonable cause why the \nreturn cannot be filed by the extended due date.\n \nAn organization cannot request an extension for filing the Form 990-N; however, \nthere is no penalty for filing it late. See Filing Penalties and Revocation of Tax-\nExempt Status on page 9.\nForm 990 and Form 990-EZ,\nThe Forms 990 and 990-EZ consist of a core form and schedules. Each organi-\nzation that files the form must complete the entire core form. Form 990 filers will \ndetermine which schedules, if any, they must complete by answering the questions \nin Part IV, Checklist of Required Schedules. Form 990-EZ filers may be required \nto file schedules as well, as noted in the form instructions.\nFiling Exceptions,\nTax-exempt organizations not required to file Forms 990 or 990-EZ include:\nn Certain organizations affiliated with governmental units;\nn Organizations included in a group return;\nn Black Lung Benefit Trusts, which file the Form 990-BL; \nn Farmers Cooperative Associations, which file Form 1120-C; and,\nn Organizations whose annual gross receipts are normally $50,000 or less. \nSee Form 990-N on the following page.\nIf a tax-exempt organization’s gross receipts are normally $50,000 or less, and \nthe organization elects to file the Form 990 or Form 990-EZ, it must complete \nthe entire return; otherwise, it must file the Form 990-N. An organization that only \ncompletes those items of information on the Form 990 or Form 990-EZ that are \nrequired to be provided on an electronic Form 990-N will not be deemed to have \nmet its electronic notice requirement.\nReporting Excess Benefit Transactions,\nIf a 501(c)(4) social welfare organization believes it provided an excess benefit to a \nperson who is in a position to exercise substantial influence over the organization’s \naffairs, it must report the transaction on Form 990 or Form 990-EZ. Excess benefit \ntransactions are governed by section 4958 of the Code. Additional information can \nbe found in the Form 990 and Form 990-EZ instructions. \n",
"9\nForm 990-N (e-Postcard),\nAn organization with gross receipts normally $50,000 or less is not required to file \nForm 990 (or Form 990-EZ). Instead, the organization is required to electronically \nsubmit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations \nNot Required To File Form 990 or 990-EZ. \nAn organization is required to provide the following information on Form 990-N:\nn the organization’s legal name;\nn any other names the organization uses;\nn the organization’s mailing address;\nn the organization’s Web site address (if applicable);\nn the organization’s taxpayer identification number (TIN);\nn name and address of a principal officer of the organization; \nn the organization’s tax year;\nn a statement that the organization’s annual gross receipts are normally \n$50,000 or less; and,\nn if applicable, a statement that the organization has terminated or is \nterminating (going out of business).\nBy submitting the electronic notice on Form 990-N, an organization acknowledges \nthat it is not required to file a Form 990 or 990-EZ because its gross receipts are \nnormally $50,000 or less. In order to make this determination, the organization \nmust keep records that enable it to calculate its gross receipts.\nFilers may access the user-friendly filing system to file a Form 990-N at www.\nirs.gov/eo or by going directly to the filing system Web site at http://epostcard.\nform990.org. Read Filing Penalties and Revocation of Tax-Exempt Status, below, \nfor consequences for failure to file this annual electronic notice, and www.irs.gov/eo \nfor information about the Form 990-N.\nFILING PENALTIES AND REVOCATION OF TAX-EXEMPT STATUS,\nIf a Form 990 or Form 990-EZ is not filed by its due date, the IRS may assess penalties on the organization \nof $20 per day until it is filed. This penalty also applies when the filer fails to include required information \nor to show correct information. The penalty for failure to file a return or a complete return may not exceed \nthe lesser of $10,000 or 5 percent of the organization’s gross receipts. For an organization that has gross \nreceipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000. The IRS may \nimpose penalties on organization managers who do not comply with a written demand that the information \nbe filed. There is no penalty for filing Form 990-N late.\nSection 6033(j) of the Code provides that failure to file Form 990, Form 990-EZ, or Form 990-N for three \nconsecutive years results in revocation of tax-exempt status as of the filing due date for the third return. \nAn organization whose exemption is revoked under this section must apply for reinstatement by filing \na Form 1024 and paying a user fee, whether or not the organization was originally required to file for \nexemption. Reinstatement of exemption may be retroactive if the organization shows that the failure to file \nwas for reasonable cause. Information with respect to the implementation of section 6033(j) is available at \nwww.irs.gov/eo.\n",
"10\ne-Filing Requirements,\nCertain tax-exempt organizations are required to electronically file with the IRS, \nbased on their financial activity.\nTax-exempt organizations with $10 million or more in total assets and that also file \nat least 250 returns in a calendar year (including income, excise, employment tax, \nand information returns such as Forms W-2 and 1099) are required to electronically \nfile Form 990.\nTax-exempt organizations required to file Form 990-N must do so electronically. \nThere is no paper form.\nOther filers may elect to file Form 990 electronically. Click on the “IRS e-file” logo \non the IRS Web site to get the facts on e-filing.\nForm 990-T, Exempt Organization Business Income Tax Return,\nEven if a tax-exempt organization is not required to file a Form 990 or Form 990-EZ, \n\nit must file a Form 990-T, Exempt Organization Business Income Tax Return, if it has\n$1,000 or more of gross income from an unrelated trade or business during the \nyear. Gross income is gross receipts minus cost of goods sold. Net income from \nincome-producing activities is taxable if the activities: \nn constitute a trade or business; \nn are regularly carried on; and,\nn are not substantially related to the organization’s exempt purpose.\nSpecial rules for organizations exempt under sections 501(c)(7), (9), (17), and (19) \nare described in Publication 598, Tax on Unrelated Business Income of Exempt \nOrganizations.\nA tax-exempt organization must pay quarterly estimated tax on unrelated business \nincome if it expects its tax for the year to be $500 or more. Form 990-W, Estimated \nTax on Unrelated Business Taxable Income for Tax-Exempt Organizations, is a \nworksheet to determine the amount of estimated tax payments required. \nExceptions and Special Rules,\nIncome from certain business activities is excepted from the definition of unrelated \nbusiness income. Earnings from these sources are not subject to the unrelated \nbusiness income tax. Exceptions generally include business income from:\nn activities, including fundraisers, that are conducted by \nvolunteer workers, or where donated merchandise is sold; \nn qualified conventions and trade shows;\nn qualified sponsorship payments; and, \nn qualified bingo games.\n",
"11\nIncome from investments and certain “passive” activities is usually excluded from \nthe calculation of unrelated business activity. Examples of this type of income \ninclude earnings from routine investments such as certificates of deposit, savings \naccounts, or stock dividends, royalties, certain rents from real property, and \ncertain gains or losses from the sale of property.\nSpecial rules apply to income derived from real estate or other investments \npurchased with borrowed funds. Such income is called “debt-financed” income. \nDebt-financed income generally is subject to the unrelated business income tax.\nSee also Publication 598, Tax on Unrelated Business Income of Exempt \nOrganizations for special rules for organizations exempt under sections 501(c)(7), \n(9), and (17).\nPatient Protection and Affordable Care Act (ACA) Small \nBusiness Health Care Tax Credit Reported on Form 990-T,\nFor the years 2010 to 2013, many small tax-exempt organizations that provide \nhealth insurance coverage to their employees may qualify for a special tax credit. \nA small tax-exempt employer may be entitled to a maximum credit of 25% of \nthe employer’s health insurance premium expenses. Eligible small tax-exempt \nemployers described in Code section 501(c) may claim the refundable credit by \nfiling a Form 990-T with an attached Form 8941 showing the calculation of the \nclaimed credit. A tax-exempt employer is not eligible to claim the credit unless \nit is an organization described in Code section 501(c) that is exempt from tax \nunder Code section 501(a). (An enhanced version of this credit goes into effect \non January 1, 2014. The maximum credit will increase from 25% to 35%. See \nwww.irs.gov for more information.)\nProxy Tax Reported on Form 990-T,\nThe Code imposes reporting and notice requirements on certain tax-exempt \norganizations described in sections 501(c)(4) (other than veterans’ organizations), \n501(c)(5) (other than labor organizations), and 501(c)(6) that incur nondeductible \nlobbying and political expenses. See also Nondeductible Lobbying and Political \nExpenditures on page 21. \nFORM 990-T FILING PENALTIES,\nAn organization may be subject to interest and penalty charges if it files a late return, fails to pay tax when \ndue, or fails to pay estimated tax, if required, even if it did not expect its tax for the year to be $500 or more. \n",
"12\nOrganizations that do not provide notices of amounts of membership dues alloca\nble to nondeductible lobbying and political campaign expenditures are subject to \ntax (commonly called a proxy tax) under Code section 6033(e)(2) on the amount \nof the expenditures. An organization must report the tax on Form 990-T, Exempt \nOrganization Business Income Tax Return (and proxy tax under section 6033(e)), \nat line 37. For information on computing the tax, please see the Form 990-T \ninstructions.\nTo learn about unrelated business income, refer to Publication 598, Tax on \nUnrelated Business Income of Exempt Organizations, Form 990-T instructions, \nand Form 990-W instructions at www.irs.gov.\nEmployment Tax Returns,\nLike other employers, all tax-exempt organizations that pay wages to employees \nmust withhold, deposit, and pay employment tax, including federal income tax \nwithholding and social security and Medicare (FICA) taxes. A tax-exempt organiza\ntion must withhold federal income and FICA taxes from employee wages and pay \nFICA on each employee paid more than $100 in wages during a calendar year. To \nknow how much income tax to withhold, an organization should have a Form W-4, \nEmployee’s Withholding Allowance Certificate, on file for each employee. Employ-\nment taxes are reported on Form 941, Employer’s Quarterly Federal Tax Return. \nIf a small employer (one who has withheld employment taxes of $1,000 or less \nduring the year) has been instructed by IRS to file Form 944, Employer’s Annual \nFederal Tax Return, instead of Form 941, the employer must do so. The employer \nmust file Form 944 even if there is no tax due or if the taxes exceed $1,000 unless \nIRS tells it to file Form 941 (or it is filing a final return). See the instructions to Form \n944 for information on how to have the filing requirement changed from Form 944 \nto Form 941.\nAny organization that fails to withhold and pay employment tax may be subject to \npenalties. In addition, if an individual responsible for collecting and paying over \nemployment taxes willfully fails to so do, that person may be found personally liable \nfor the trust fund taxes (employees’ withholding and their part of the FICA taxes).\nTax-exempt organizations (other than those described in section 501(c)(3)) are also \n\nliable for tax under the Federal Unemployment Tax Act (FUTA) for each employee \nwhose wages are $50 or more during a calendar quarter if, during the current or \npreceding tax year, the organization had one or more employees at any time in \neach of 20 calendar weeks or the organization paid wages of $1,500 or more in \nany calendar quarter.\n",
"13\nTax-exempt organizations do not generally have to withhold or pay employment \ntax on payments to independent contractors, but they may have information \nreporting requirements. If an organization incorrectly classifies an employee as an \nindependent contractor, it may be held liable for employment taxes for that worker.\nThe requirements for withholding, depositing, reporting and paying employment \ntaxes are explained in Publication 15, Circular E, Employer’s Tax Guide. For help in \ndetermining if workers are employees or independent contractors, see Publication \n15-A, Employer’s Supplemental Tax Guide. Publication 557, Tax-Exempt Status for \nYour Organization, covers the employment tax responsibilities of public charities. \nThese IRS publications can be downloaded at www.irs.gov.\nWhy Keep Records?\nIn general, a tax-exempt organization must maintain books and records to \nshow that it complies with tax rules. The organization must be able to docu\nment the sources of receipts and expenditures reported on Form 990, Return \nof Organization Exempt From Income Tax or Form 990-EZ, Short Form Return of \nOrganization Exempt From Income Tax, and Form 990-T, Exempt Organization \nBusiness Income Tax Return. See Prepare Annual Information and Tax Returns \non the following page.\n \nIf an organization does not keep required records, it may not be able to show \nthat it qualifies for tax-exempt status. Thus, the organization may lose its tax-\nexempt status. In addition, a tax-exempt organization may not be able to complete \nits returns accurately and may be subject to penalties described under Filing \nPenalties and Revocation of Tax-Exempt Status on page 9. When good record\nkeeping systems are in place, a tax-exempt organization can evaluate the success \nof its programs, monitor its budget, and prepare its financial statements and returns.\nEvaluate Programs,\nA tax-exempt organization can use records to evaluate the success of its programs \nand determine whether it is achieving desired results. Good records can also help \nan organization identify problem areas and determine what changes it may need \nto make to improve performance.\nMonitor Budgetary Results,\nWithout proper financial records, it is difficult for a tax-exempt organization to \nassess whether it has been successful in adhering to budgetary guidelines. The \nability to monitor income and expenses and ensure that the organization is operating \nwithin its budget is crucial to successful stewardship of a tax-exempt organization. \n \n",
"14\nPrepare Financial Statements,\nIt is important to maintain sufficient financial information in order to prepare \naccurate and timely annual financial statements. A tax-exempt organization \nmay need these statements when it is working with banks, creditors, contributors, \nand funding organizations. Some states require tax-exempt organizations to \nmake audited financial statements publicly available.\nPrepare Annual Information and Tax Returns,\nRecords must support income, expenses, and credits reported on Form 990 \nseries and other tax returns. Generally, these are the same records used to \nevaluate programs and prepare financial statements. Books and records of \ntax-exempt organizations must be available for inspection by the IRS. If the \nIRS examines a tax-exempt organization’s returns, the organization must have \nrecords to explain items reported. Having a complete set of records will speed \nup the examination.\nIdentify Sources of Receipts,\nTax-exempt organizations may receive money or property from many sources. \nWith thorough recordkeeping, an organization can identify the sources of \nreceipts. Organizations need this information to separate program from non-\nprogram receipts, taxable from non-taxable income and to complete appropriate \nschedules of Form 990.\nSubstantiate Revenues, Expenses and Deductions \nfor Unrelated Business Income Tax (UBIT) Purposes,\nA tax-exempt organization may need records to substantiate the amount, if \nany, of unrelated business taxable income. An organization must appropriately \ntrack the financial revenues and expenses subject to UBIT reporting in order \nto prepare its unrelated business income tax return, Form 990-T, Exempt \nOrganization Business Income Tax Return.\nIn addition to maintaining required records relating to unrelated business \ntaxable income, section 501(c)(9) organizations (VEBAs) must also maintain \nrecords indicating the amount contributed by each member and contributing \nemployer, and the amount and type of benefits paid by the organization for \neach member.\n",
"15\nWhat Records Should Be Kept?\nExcept in a few cases, the law does not require a special kind of record. A \ntax-exempt organization can choose any recordkeeping system, suited to its \nactivities, that clearly shows the organization’s income and expenses. The types \nof activities a tax-exempt organization conducts determine the type of records \nthat should be kept for federal tax purposes. A tax-exempt organization should \nset up a recordkeeping system using an accounting method that is appropriate \nfor proper monitoring and reporting of its financial activities for the tax year. If a \ntax-exempt organization has more than one program, it should ensure that the \nrecords appropriately identify the income and expense items that are attributable \nto each program.\nA recordkeeping system should generally include a summary of transactions. \nThis summary is ordinarily written in the tax-exempt organization’s books (for \nexample, accounting journals and ledgers). The books must show gross receipts, \npurchases, expenses (other than purchases), employment taxes, and assets. For \nmost small organizations, the checkbook might be the main source for entries \nin the books while larger organizations would need more sophisticated ledgers \nand records. A tax-exempt organization must keep documentation that supports \nentries in the books.\nAccounting Periods and Methods,\nTax-exempt organizations must keep their financial records based on an annual \naccounting period, called a tax year, in order to comply with annual reporting \nrequirements.\nAccounting Periods — A tax year is usually 12 consecutive months. There are \ntwo kinds of tax years.\nCALENDAR TAX YEAR – \nThis is a period of 12 consecutive months beginning \nJanuary 1 and ending December 31.\nFISCAL TAX YEAR – \nThis is a period of 12 consecutive months ending on the last \nday of any month except December.\nAccounting Method — An accounting method is a set of rules used to \ndetermine when income and expenses are reported. A tax-exempt organization \nchooses an accounting method when it files its first annual return. There are two \nbasic accounting methods:\nCASH METHOD – \nUnder the cash method, a tax-exempt organization reports \nincome in the tax year received. It usually deducts expenses in the year paid.\nACCRUAL METHOD – Under an accrual method, a tax-exempt organization \ngenerally records income in the tax year earned (i.e., in the tax year in which a \npledge is received, even though it may receive payment in a later year). It records \nexpenses in the tax year incurred, whether or not it pays the expenses that year.\nFor more information about accounting periods and methods, see Publication 538, \nAccounting Periods and Methods, and the instructions to Form 990 and Form 990-EZ.\n",
"16\nRECORDS MANAGEMENT,,\nGROSS RECEIPTS,,\nGross receipts are the amounts received from all sources, including contributions. A tax-exempt \norganization should keep supporting documents that show the amounts and sources of its gross receipts. \nDocuments that show gross receipts include: donor correspondence, pledge documents, cash register \ntapes, bank deposit slips, receipt books, invoices, credit card charge slips, and Forms 1099-MISC, \nMiscellaneous Income.\nPURCHASES, INCLUDING ACCOUNTING FOR INVENTORY,,\nPurchases are items bought, including any items resold to customers. If an organization produces items, it \nmust account for any items resold to customers. Thus, for example, the organization must account for the \ncost of all raw materials or parts purchased for manufacture into finished products. Supporting documents \nshould show the amount paid, and that the amount was for purchases. Documents for purchases include: \ncanceled checks, cash register tape receipts, credit card sales slips, and invoices. These records will help \nan organization determine the value of its inventory at the end of the year. See Publication 538, Accounting \nPeriods and Methods, for general information on methods for valuing inventory.\nEXPENSES,\nExpenses are the costs a tax-exempt organization incurs (other than purchases) to carry on its program. \nSupporting documents should show the amount paid and the purpose of the expense. Documents for \nexpenses include: canceled checks, cash register tapes, contracts, account statements, credit card sales \nslips, invoices, and petty-cash slips for small cash payments.\nEMPLOYMENT TAXES ,\nOrganizations that have employees must keep records of compensation and specific employment tax \nrecords. Information related to independent contractors should also be maintained. See Publication 15, \nCircular E, Employer’s Tax Guide, for details.\nASSETS & LIABILITIES,,\nAssets are the property (such as investments, buildings, and furniture) an organization owns and uses in \nits activities. Liabilities reflect the financial obligations of the organization. A tax-exempt organization must \nkeep records to verify certain information about its assets and liabilities. Records should show:\nn when and how the asset was acquired,,\nn whether any debt was used to acquire the asset,,,\nn documents that support mortgages, notes, loans ,\nor other forms of debt,\nn purchase price,,\nn cost of any improvements,,\nn deductions taken for depreciation, if any,,\nn deductions taken for casualty losses, if any, \nsuch as losses resulting from fires or storms,,\nn how the asset was used,,\nn when and how the asset was disposed of,,,\nn selling price,,\nn expenses of sale,,\nDocuments that may show the above information include: purchase and sales invoices, real estate closing \nstatements, canceled checks, and financing documents. If a tax-exempt organization does not have \ncanceled checks, it may be able to show payment with certain financial account statements prepared by \nfinancial institutions. These include account statements prepared for the financial institution by a third \nparty. All information, including account statements, must be legible. The following defines acceptable \naccount statements.\nIF payment is by: \nTHEN statement must show:\ncheck,, \n \ncheck number, amount, payee’s name, and date the check amount was posted \nto the account by the financial institution,,\nelectronic\nfunds transfer,\n\t\namount transferred, payee’s name, and date the transfer was posted to the \n, \t\naccount by the financial institution,,\ncredit card,,\t\namount charged, payee’s name, and transaction date,,\n",
"17\nSupporting Documents,\nOrganization transactions such as contributions, purchases, sales, and payroll \nwill generate supporting documents. These documents—grant applications and \nawards, sales slips, paid bills, invoices, receipts, deposit slips, and canceled \nchecks—contain information to be recorded in accounting records. It is important \nto keep these documents because they support the entries in books and the \nentries on tax and information returns. Tax-exempt organizations should keep \nsupporting documents organized by year and type of receipt or expense. Also, \nkeep records in a safe place.\nHow Long Should Records Be Kept?\nTax-exempt organizations must keep records for federal tax purposes for as \nlong as they may be needed to document evidence of compliance with provi-\nsions of the Code. Generally, this means the organization must keep records that \nsupport an item of income or deduction on a return until the statute of limitations \nfor that return runs. The statute of limitations has run when the organization can \nno longer amend its return and the IRS can no longer assess additional tax. \nGenerally, the statute of limitations runs three years after the date the return is \ndue or filed, whichever is later. An organization may be required to retain records \nlonger for other legal purposes, including state or local tax purposes.\nRecord Retention Periods,\nRecord retention periods vary depending on the types of records and returns.\nPermanent Records – Some records should be kept permanently. These \ninclude the application for recognition of tax-exempt status, the determination \nletter recognizing tax-exempt status, and organizing documents, such as articles \nof incorporation and by-laws, with amendments, as well as board minutes.\nEmployment Tax Records – If an organization has employees, it must keep \nemployment tax records for at least four years after the date the tax becomes \ndue or is paid, whichever is later.\nRecords for Non-Tax Purposes – When records are no longer needed for tax \npurposes, an organization should keep them until they are no longer needed for \nnon-tax purposes. For example, a grantor, insurance company, creditor, or state \nagency may require that records be kept longer than the IRS requires.\n",
"18\nHow Should Changes Be Reported to the IRS?\nReporting Changes on the Annual Information Return,\nA tax-exempt organization that is required to file Form 990 or Form 990-EZ must \nreport name, address, structural and operational changes on its annual return. \nRegardless of whether a tax-exempt organization files an annual information \nreturn, it may report these changes to the EO Determinations Office at the mailing \naddress set out in How Do You Get IRS Assistance and Information? at the end of \n\nthis publication; however, such reporting does not relieve the organization from \nreporting the changes on its annual return.\nTip: Attach copies of any signed or state certified articles of incorporation, or \nassociation, constitution or trust instrument or other organizational document, \nor the by-laws or other governing document showing changes to your return. \nIf signed or state certified copies of a governing document are not available, an \nauthorized officer may certify that the governing document provided is a complete \nand accurate copy of the original document.\nDetermination Letters and Private Letter Ruling Requests,\nA tax-exempt organization may request a copy of a lost exemption letter or an \nupdated exemption letter that reflects a name or address change from the EO \nDeterminations office. See How Do You Get IRS Assistance and Information?, \npage 23, for the appropriate address for the EO Determinations office.\nAn organization may request a determination letter regarding the effect of \ncertain changes to its tax-exempt status in certain specific situations set out in \nRevenue Procedure 2014-4, updated annually. However, the IRS will not make \nany determination regarding any completed transaction. \nIf a tax-exempt organization is unsure about whether a proposed change in its \npurposes or activities is consistent with its status as an exempt organization, it \nmay want to request a private letter ruling.\nThe IRS issues private letter rulings on proposed transactions and on completed \ntransactions if the request is submitted before the return is filed for the year in \nwhich the transaction was completed. The IRS generally does not issue rulings \nto tax-exempt organizations on completed transactions. The IRS will issue letter \nrulings to a tax-exempt organization on matters involving an organization’s exempt \nstatus, as well as other matters including issues under sections 501 through 514, \n4958, 6033, 6104, 6113 and 6115. However, the Service may decline to issue a \nruling on certain matters.\n",
"19\nConsult www.irs.gov/eo for the appropriate procedures for preparing and submit\nting requests for private letter rulings, determination letters, a replacement exemp\ntion letter or a letter reflecting a new name and address. For general information \nabout reporting changes, you may contact EO customer service at (877) 829-5500.\nWhat Disclosures Are Required?\nThere are a number of disclosure requirements for tax-exempt organizations. \nDetailed information on federal tax law disclosure requirements for tax-ex\nempt organizations can be found in Publication 557, Tax-Exempt Status for Your \nOrganization, on the IRS Charities and Non-Profits Web site at www.irs.gov/eo. \nInformation about disclosure requirements for 501(c)(3) organizations may be \nfound in Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities \nand Publication 4221-PF, Compliance Guide for 501(c)(3) Private Foundations.\nPublic Inspection of Exemption Applications and Annual Returns,\nA tax-exempt organization must make the following documents available for public \ninspection and copying upon request and without charge (except for a reasonable \nfee for copying). The IRS also makes these documents available for public inspection \n\nand copying. Because certain forms by law must be made publicly available by \nthe IRS and the filer, do not include any personal identifying information, such as \nsocial security numbers not required by the IRS, on these forms.\nExemption Application – A non-501(c)(3) tax-exempt organization must make \navailable for public inspection its exemption application, Form 1024, Application \nfor Recognition of Exemption Under Section 501(a), along with each of the \nfollowing documents:\nn all documents submitted with Form 1024;\nn all documents the IRS requires the organization to submit in support \nof its application; and,\nn the exemption ruling letter issued by the IRS.\nAnnual Information Return – A tax-exempt organization must disclose its annual \ninformation return (Form 990 series) with schedules, attachments, and supporting \ndocuments filed with the IRS. The organization may not disclose the names and \naddresses of contributors listed on Schedule B of Form 990. However, other infor\nmation on Schedule B is open for public inspection unless it clearly identifies the \ncontributor. Returns need to be available for public inspection for only three years \nafter the due date or filing date of the return (or the filing date of an amended return).\n",
"20\nDisclosure Procedures – A tax-exempt organization may place reasonable \nrestrictions on the time, place, and manner of in-person inspection and copying, \nand may charge a reasonable fee for providing copies. It can charge no more \nfor the copies than the per page rate the IRS charges for providing copies. See \nhttp://www.irs.gov/uac/Freedom-of-Information-Act-(FOIA)-Guidelines#Fees for \ncurrent IRS copying fees. Although the IRS charges no fee for the first 100 pages, \nthe organization can charge a fee for all copies. The organization can also charge \nthe actual postage costs it pays to provide copies. A tax-exempt organization \ndoes not have to comply with individual requests for copies if it makes the docu\nments widely available. This can be done by posting the documents on a readily \naccessible Web site. For details on disclosure rules and procedures for non-501(c)\n(3) tax-exempt organizations, see the Life Cycles of Section 501(c)(4), (5) and (6) \nOrganizations and the instructions to Forms 990 and 1024 at www.irs.gov/eo.\nAll publicly available information may be obtained from the IRS for a fee by \nusing Form 4506-A, Request for Public Inspection or Copy of Exempt or Political \nOrganization IRS Form. An organization may obtain a complete copy of its own \napplication by filing Form 4506, Request for Copy of Tax Return.\nSale of Free Government Information,\nIf a tax-exempt organization offers to sell, or solicits money for, goods, information \nor services that are available free from the federal government, the organization \nmust make an express statement at the time of solicitation about the free service. \nAn organization that intentionally disregards this requirement is subject to a penalty.\nSolicitation Notice,\nCertain tax-exempt organizations that are not eligible to receive tax-deductible \ncontributions must disclose, in any fundraising solicitation, in an express \nstatement (in a conspicuous and easily recognizable format), that contributions \nto the organization are not deductible for federal income tax purposes. This \napplies to organizations that are not eligible to receive deductible charitable \ncontributions and are described in sections 501(c), 501(d) and 527. Safe harbors \nfor meeting these requirements are set out in Notice 88-120, 1988-2 C.B. 454.\nPENALTIES,,\nPenalties apply to responsible persons of a tax-exempt organization who fail to provide the documents as \nrequired. A penalty of $20 per day may apply for as long as the failure continues. A $10,000 maximum penalty \n\napplies to a failure to provide an information return; no maximum penalty applies to application requests.\n",
"21\nThis disclosure requirement applies to a fundraising solicitation: if the organization \nsoliciting the funds normally has gross receipts over $100,000 per year, the \nsolicitation is part of a coordinated fundraising campaign that is soliciting more \nthan ten persons during the year, and the solicitation is made in written or printed \nform, by television or radio, or by telephone.\nNote: If an organization fails to include the required disclosure of the non-\ndeductibility of contributions in fundraising solicitations, a penalty of $1,000 for \neach day on which such a failure occurs, up to a maximum annual penalty of \n$10,000, may be imposed. No penalty will be imposed if the failure is due to \nreasonable cause. In cases where the failure to make the required disclosure is \ndue to intentional disregard of the law, the $10,000 per year limitation does not \napply and more severe penalties based on up to 50 percent of the aggregate \ncost of the solicitations are applicable.\nNondeductible Lobbying and Political Expenditures,\nA tax-exempt organization must notify anyone paying dues that any portion used \nfor lobbying or political activities is not deductible. An organization must provide \nthe notice if it is one of the following:\nn a social welfare organization described in section 501(c)(4) that is not a veterans \norganization;\nn an agricultural or horticultural organization described in section 501(c)(5); or,\nn a business league, chamber of commerce, real estate board, or other organization \n\ndescribed in section 501(c)(6).\nNondeductible lobbying and political expenditures include expenditures paid \nor incurred in connection with influencing legislation, participating or intervening \nin any political campaign on behalf of (or in opposition to) any candidate for \npublic office, attempting to influence the general public with respect to elections, \nlegislative matters, or referendums, and any direct communication with a covered \nexecutive branch official in an attempt to influence the person’s official actions \nor positions.\nIf an organization is subject to the reporting and notice requirement it has \nseveral options:\nn It may provide a notice to its members when they pay dues that contains \na reasonable estimate of the amount allocable to lobbying and political \nexpenditures;\nn If it does not give notification, it must pay a proxy tax at the highest corporate \nrate imposed by the Code (currently 35%) on its lobbying and political campaign \nexpenditures up to the amount of dues and similar payments received by the \norganization during the tax year; or,\n",
"22\nn If the organization does provide notices to its members but underestimates \nthe actual amount of lobbying and political campaign expenditures, it is subject \nto the proxy tax on the excess lobbying expenditures paid during the tax year \nthat were not included in the notices. However this tax may be waived if the \norganization agrees to include the excess lobbying and political campaign \nexpenditures in the following year’s notices.\nAn organization described above does not have to provide the notice if it establishes \nthat substantially all the dues paid to it are not deductible (regardless of whether \nthose dues are used for lobbying or political activities) anyway or if certain other \nconditions are met.\nIf an organization elects the proxy tax option, it must report the tax on Form 990-T, \nas described on page 11, in Proxy Tax Reported on Form 990-T.\nCharitable Contributions,\nIn general, contributions to 501(c) organizations other than organizations described \nin section 501(c)(3) of the Code are NOT deductible as charitable contributions for \nfederal income tax purposes. Donations to certain non-501(c)(3) organizations are \ndeductible as charitable contributions. \nThese include donations to: \nn 501(c)(4) fire companies (for public purposes), \nn cemetery companies which are not earmarked for the care of a particular \nlot or crypt,\nn fraternal organizations for certain 501(c)(3) purposes, and,\nn veterans’ organizations, if 90% or more of the organization’s members are \nwar veterans.\nIn addition, a non-501(c)(3) tax-exempt organization may establish a charitable \nfund, contributions to which are deductible. However, such a fund itself must \nmeet the requirements of section 501(c)(3) and the related notice requirements \nof section 508(a). \nIf the contributions are deductible as charitable contributions, substantiation \nand disclosure requirements may apply. Read Publication 1771, Charitable \nContributions—Substantiation and Disclosure Requirements, and Publication 526, \nCharitable Contributions, for details on the federal tax law for organizations that \nmay receive tax-deductible charitable contributions and for taxpayers who make \ncontributions.\n",
"23\nHow Do You Get IRS Assistance and Information?\nThe IRS offers help that is accessible online, via mail, by telephone, and \nat IRS walk-in offices in many areas across the country. IRS forms and \npublications can be downloaded from the Internet and ordered by telephone.\nSpecialized Assistance for Tax-Exempt Organizations,\nGet help with questions about applying for tax-exempt status, annual filing \nrequirements, and information about exempt organizations from the IRS Exempt \nOrganizations (EO) pages on the IRS website, at www.irs.gov/eo.\nEO Web Site, \t\nwww.irs.gov/eo,\nHighlights:\nn The Life Cycle of an Exempt Organization describes the compliance obligations \nof section 501(c)(3), (4), (5) and (6) organizations.\nn Information on Other Non-Profits,\nn Subscribe to the EO Update, an electronic newsletter with information for \ntax-exempt organizations and tax practitioners who represent them.\nEO Web-based Training, \t\nwww.stayexempt.irs.gov,\nEO Customer Service, \t\n(877) 829-5500,\nEO Determinations Office Mailing Address,\nInternal Revenue Service,\nTE/GE, EO Determinations Office,\nP.O. Box 2508,\nCincinnati, OH 45201,\n",
"24\nTax Publications for Exempt Organizations,\nGet publications via the Internet or by calling the IRS at (800) 829-3676.\nPub 15, Circular E, Employer’s Tax Guide,\nPub 15-A, Employer’s Supplemental Tax Guide,\nPub 463, Travel, Entertainment, Gift, and Car Expenses,\nPub 517, Social Security and Other Information for Members of the Clergy \nand Religious Workers,\nPub 538, Accounting Periods and Methods,\nPub 557, Tax-Exempt Status for Your Organization,\nPub 583, Starting a Business and Keeping Records, \nPub 598, Tax on Unrelated Business Income of Exempt Organizations,\nPub 1771, Charitable Contributions—Substantiation and Disclosure Requirements,\nPub 1828, Tax Guide for Churches and Religious Organizations,\nPub 3079, Tax-Exempt Organizations and Gaming,\nPub 3833, Disaster Relief, Providing Assistance Through Charitable Organizations,\nPub 4220, Applying for 501(c)(3) Tax-Exempt Status,\nPub 4221-PC, Compliance Guide for 501(c)(3) Public Charities,\nPub 4302, A Charity’s Guide to Vehicle Donations,\nPub 4303, A Donor’s Guide to Vehicle Donations,\nPub 4573, Group Exemptions,\nPub 4630, Exempt Organizations Products and Services Catalog,\nForms for Exempt Organizations,\nGet forms via the Internet or by calling the IRS at (800) 829-3676.\nForm 941, Employer’s Quarterly Federal Tax Return,\nForm 944, Employer’s Annual Federal Tax Return,\nForm 990, Return of Organization Exempt From Income Tax,\nForm 990-EZ, Short Form Return of Organization Exempt From Income Tax,\nForm 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt \nCharitable Trust Treated as a Private Foundation,\n",
"25\nForm 990-N, Electronic Notice (e-Postcard) For Tax-Exempt Organizations Not \nRequired to File Form 990 or 990-EZ (available electronically only),\nForm 990-T, Exempt Organization Business Income Tax Return,\nForm 990-W, Estimated Tax on Unrelated Business Taxable Income for \nExempt Organizations,\nForm 1023, Application for Recognition of Exemption Under Section 501(c)(3) \nof the Internal Revenue Code,\nForm 1024, Application for Recognition of Exemption Under Section 501(a),\nForm 1041, U.S. Income Tax Return for Estates and Trusts,\nForm 4506, Request for Copy of Tax Return,\nForm 4506-A, Request for Public Inspection or Copy of Exempt Organization \nor Political Organization IRS Form,\nForm 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the \nInternal Revenue Code,\nForm 5578, Annual Certification of Racial Non-Discrimination for a Private School \nExempt from Federal Income Tax,\nForm 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) \nOrganization to Make Expenditures to Influence Legislation,\nForm 8282, Donee Information Return,\nForm 8283, Noncash Charitable Contributions,\nForm 8868, Application for Extension of Time to File an Exempt \nOrganization Return,\nGeneral IRS Assistance,\nGet materials on the latest tax laws, assistance with forms and publications, and \nfiling information.\nIRS Web site, \nwww.irs.gov\n,\nFederal tax questions, \t\n(800) 829-4933,\nEmployment tax questions, \t\n(800) 829-4933,\nOrder IRS forms and publications, \t\n(800) 829-3676, \n",
"26\n Tax-Exempt Organization Reference Chart,\nCode\n Section,\nType of\n Organization,\nType of\n Activities,\nAnnual Filing\n Requirement,\nContributions\n Deductible,\n501(c)(1),\nInstrumentalities of the \nUnited States,\nCorporate instrumentalities \nof the United States \norganized under an Act \nof Congress,\nnone,\nYes, if for \npublic \npurposes,\n501(c)(2), \nTitle Holding Corporation \nfor Exempt Organizations,\nHolds title to exempt \norganization property. \nCollects and pays income \nfrom property to exempt \norganization.\n990, 990-EZ, \n990-N,\nNo,\n501(c)(3,)\nReligious, Educational, \nCharitable, Literary, \nTesting for Public Safety, \nto Foster National or \nInternational Amateur Sports \nCompetition, or Prevention \nof Cruelty to Children or \nAnimals Organizations,\nActivities of nature implied \nby description of class of \norganizations,\n990, 990-EZ, \n990-N, \n990-PF,\nYes, generally \n(testing for \npublic safety \nexcluded),\n501(c)(4),\nCivic Leagues, Social \nWelfare Organizations,\nPromotion of community \nwelfare; charitable, \neducational or recreational,\n990, 990-EZ, \n990-N,\nNo, generally,\n501(c)(5),\nLabor, Agricultural and \nHorticultural Organizations,\nEducational or instructive, \nthe purpose being to \nimprove conditions of work \nand improve products or \nefficiency,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(6),\nBusiness Leagues, \nChambers of Commerce, \nReal Estate Boards,\nImprovement of business \nconditions of one or more \nlines of business,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(7),\nSocial and Recreational \nClubs,\nPleasure, recreation, social \nactivities,\n990, 990-EZ, \n990-N ,\nNo,\n501(c)(8),\nFraternal Beneficiary \nSocieties, Orders or \nAssociations,\nProvides for payment of life, \nsickness, accident or other \nbenefits to members,\n990, 990-EZ, \n990-N,\nYes, if for \ncertain (c)(3) \npurposes,\n501(c)(9),\nVoluntary Employees’ \nBeneficiary \nAssociations(VEBA),\nProvides for payment of \nlife, sickness, accident or \nother benefits to members, \ndependents or beneficiaries,\n990, 990-EZ, \n990-N,\nNo,\n",
"27\n Tax-Exempt Organization Reference Chart (cont’d),\nCode\n Section,\nType of\n Organization,\nType of\n Activities,\nAnnual Filing\n Requirement,\nContributions\n Deductible,\n501(c)(10),\nDomestic Fraternal \nSocieties, Orders or \nAssociations, \nLodge devoting its net \nearnings to charitable, \nfraternal or other specified \npurposes. No life, sickness or \naccident benefits to members,\n990, 990-EZ, \n990-N,\nYes, if for \ncertain (c)(3) \npurposes,\n501(c)(11),\nTeachers’ Retirement Funds,\nLocal teachers’ association \nfor payment of retirement \nbenefits funded from specific \nsources,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(12),\nLocal Benevolent Life \nInsurance Associations, \nMutual Ditch or Irrigation \nCompanies, Mutual or \nCooperative Electric or \nTelephone Companies, and \nLike Organizations,\nConducts activities of a \nmutually beneficial nature \nsimilar to those implied by \nthe description of the class \nof organization,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(13),\nCemetery Companies,\nProvides burial and incidental \nservices,\n990, 990-EZ, \n990-N,\nYes, generally,\n501(c)(14), \nState Chartered Credit \nUnions,\nOperates without profit for \nmutual benefit of its members,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(15), \nSmall Insurance Companies \nor Associations,\nProvides insurance to \nmembers substantially at cost,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(16), \nCooperative Organizations to \nFinance Crop Operations,\nFinances crop operations \nin conjunction with activities \nof a section 521 marketing \nor purchasing association,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(17), \nSupplemental Unemployment \nBenefit Trusts,\nProvides for payment of \nsupplemental unemployment \ncompensation benefits as \npart of a plan,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(18),\nEmployee Funded Pension \nTrusts (created before 1959),\nPayment of pension or retire-\nment benefits under a plan \nfunded only by employees,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(19),\nWar Veterans Organizations,\nActivities implied by nature \nof organization,\n990, 990-EZ, \n990-N,\nNo, generally,\n",
"28\n Tax-Exempt Organization Reference Chart (cont’d),\nCode\n Section,\nType of\n Organization,\nType of\n Activities,\nAnnual Filing\n Requirement,\nContributions\n Deductible,\n501(c)(21), \nBlack Lung Benefit Trusts,\nIrrevocable domestic \ntrust funded by coal mine \noperators to satisfy their \nliability for disability or death \ndue to black lung diseases,\n990-BL,\nNo,\n501(c)(22),\nWithdrawal Liability \nPayment Fund,\nProvides funds to meet \nthe liability or employers \nwithdrawing from a \nmultiemployer pension fund,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(23), \nVeterans Organizations \n(created before 1880),\nProvides insurance and \nother benefits to veterans,\n990, 990-EZ, \n990-N,\nNo, generally,\n501(c)(25),\nTitle Holding Corporations \nor Trusts with Multiple \nParents,\nHolds title and pays over \nincome from real property \nto 35 or fewer shareholders \nor beneficiaries,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(26),\nState-Sponsored \nOrganization Providing \nHealth Coverage for \nHigh-Risk Individuals,\nProvides health care \ncoverage to high risk \nindividuals,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(27),\nState-Sponsored Worker’s \nCompensation Reinsurance \nOrganization,\nReimburses members for \nlosses under local workers’ \ncompensation acts,\n990, 990-EZ, \n990-N,\nNo,\n501(c)(28),\nNational Railroad Retirement \nInvestment Trust,\nManages and invests the \nassets of the Railroad \nRetirement Account,\nNot determined,\nNo,\n501(d),\nReligious & Apostolic \nOrganizations,\n \nCommunal religious \ncommunity,\n1065,\nNo,\n501(e),\nCooperative Hospital \nService Organizations,\nPerforms specific activities \nfor hospitals on a centralized \nbasis,\n990, 990-EZ, \n990-N,\nYes,\n501((f),\nCooperative Service \nOrganizations of Operating \nEducational Organizations,\nPerforms collective \ninvestment services for \neducational organizations,\n990, 990-EZ, \n990-N,\nYes,\n",
"29\n Tax-Exempt Organization Reference Chart (cont’d),\nCode\n Section,\nType of\n Organization,\nType of\n Activities,\nAnnual Filing\n Requirement,\nContributions\n Deductible,\n501(k), \nChild Care Organizations,\nProvides care for children \nof working parents. Open \nto public,\n990, 990-EZ, \n990-N,\nYes,\n501(n),\nCharitable Risk Pools,\nPools certain insurance \nrisks of 501(c)(3)s,\n990, 990-EZ, \n990-N,\nYes,\n521(a), \nFarmers’ Cooperative \nOrganizations,\nCooperative marketing and \npurchasing for agricultural \nprocedures,\n1120-C,\nNo,\n527,\nPolitical Organizations,\nA party, committee, fund, \nassociation, etc., that \ndirectly or indirectly accepts \ncontributions or makes \nexpenditures for \npolitical campaigns,\n1120-POL, \n990 or 990EZ,\nNo,\nNote that neither this chart nor this publication is intended to be a comprehensive \nsource of information about the compliance responsibilities of all tax-exempt \norganizations. Also, an organization exempt under a subsection of Section 501 \nother than section 501(c)(3) may establish a separate charitable fund, contributions \n\nto which are deductible. Such a fund must meet the requirements of section \n501(c)(3) and the related notice requirements of section 508(a). See Publication \n4220, Applying for 501(c)(3) Tax-Exempt Status and Publication 557, Tax-Exempt \nStatus for Your Organization.\n Publication 4221-NC (Rev. 9 -2014) Catalog Number 52447N,\n Department of the Treasury Internal Revenue Service,\nwww.irs.gov,\n"
] |
f8849.pdf
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0814 Form 8849 (PDF)
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https://www.irs.gov/pub/irs-pdf/f8849.pdf
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[
"Form 8849\n(Rev. August 2014)\nDepartment of the Treasury \nInternal Revenue Service \nClaim for Refund of Excise Taxes\n▶ Information about Form 8849 and its instructions is at www.irs.gov/form8849. \nOMB No. 1545-1420\nPrint clearly. Leave a blank box between words. \nName of claimant \nEmployer identification number (EIN) \nAddress (number, street, room or suite no.) \nSocial security number (SSN) \nCity or town, and state or province. If you have a foreign address, see instructions. \nZIP or foreign postal code \nForeign country, if applicable. Do not abbreviate. \nMonth claimant’s income tax year ends \nDaytime telephone number (optional)\nCaution. Do not use Form 8849 to make adjustments to liability reported on Forms 720 for prior quarters or to claim any amounts \nthat were or will be claimed on Form 720, Schedule C; Form 4136, Credit for Federal Tax Paid on Fuels; Form 2290, Heavy Highway \nVehicle Use Tax Return; or Form 730, Monthly Tax Return for Wagers. \nSchedules Attached \nCheck (✓) the appropriate box(es) for the schedule(s) you attach to Form 8849. Only attach the schedules on which you are claiming \na refund. Schedules 2, 3, 5, and 8 cannot be filed with any other schedules on Form 8849. File each of these schedules with a \nseparate Form 8849. \nSchedule 1 \nNontaxable Use of Fuels \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSchedule 2 \nSales by Registered Ultimate Vendors .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSchedule 3 \nCertain Fuel Mixtures and the Alternative Fuel Credit \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSchedule 5 \nSection 4081(e) Claims .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSchedule 6 \nOther Claims \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSchedule 8 \nRegistered Credit Card Issuers \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nSign \nHere\nUnder penalties of perjury, I declare (1) that I have examined this claim, including accompanying schedules and statements, and to the best of my \nknowledge and belief, it is true, correct, and complete, and (2) that amounts claimed on this form have not been, and will not be, claimed on any \nother form. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. \nSignature and title (if applicable)\nDate \nType or print your name below signature. \nPaid \nPreparer \nUse Only\nPrint/Type preparer’s name\nPreparer’s signature\nDate\nCheck if \nself-employed\nPTIN\nFirm’s name ▶\nFirm’s EIN ▶\nFirm’s address ▶\nPhone no.\nFor Privacy Act and Paperwork Reduction Act Notice, see instructions. \nCat. No. 20027J \nForm 8849 (Rev. 8-2014) \n",
"Form 8849 (Rev. 8-2014) \nPage 2 \nSection references are to the Internal Revenue Code. \nFuture Developments\nFor the latest information about developments related to \nForm 8849 and its instructions or separate schedules, \nsuch as legislation enacted after they were published, go \nto www.irs.gov/form8849.\nWhat’s New \nChanges are discussed under What’s New in the \ninstructions for each schedule. \nReminders \n• You can electronically file Form 8849 through any \nelectronic return originator (ERO), transmitter, and/or \nintermediate service provider (ISP) participating in the \nIRS e-file program for excise taxes. For more information \non e-file and its availability, visit the IRS website at \nwww.irs.gov/efile. \n• Qualified subchapter S subsidiaries (QSubs) and \neligible single-owner disregarded entities are treated as \nseparate entities for certain excise tax and reporting \npurposes. QSubs and eligible single-owner disregarded \nentities must pay and report certain excise taxes (other \nthan IRS Nos. 31, 51, and 117), register for certain excise \ntax activities, and claim certain refunds, credits, and \npayments under the entity’s employer identification \nnumber (EIN). These actions cannot take place under the \nowner’s taxpayer identification number (TIN). Some \nQSubs and disregarded entities may already have an \nEIN. However, if you are unsure, call the IRS business \nand specialty tax line at 1-800-829-4933. \nGenerally, QSubs and eligible single-owner disregarded \nentities will continue to be treated as disregarded entities \nfor other federal tax purposes (other than employment \ntaxes). Thus, taxpayers filing Form 4136, Credit for \nFederal Tax Paid on Fuels, with Form 1040, Individual \nIncome Tax Return, can use the owner’s TIN. For specific \ninformation, see Treasury Decision (T.D.) 9356. You can \nfind T.D. 9356 on page 675 of Internal Revenue Bulletin \n2007-39 at www.irs.gov/pub/irs-irbs/irb07-39.pdf. \nGeneral Instructions \nPurpose of Form \nUse Form 8849 to claim a refund of excise taxes. Attach \nSchedules 1, 2, 3, 5, and 8 to claim certain fuel related \nrefunds such as nontaxable uses (or sales) of fuels. \nAttach Schedule 6 for claims not reportable on \nSchedules 1, 2, 3, 5, and 8, including refunds of excise \ntaxes reported on: \n• Form 720, Quarterly Federal Excise Tax Return; \n• Form 730, Monthly Tax Return for Wagers; \n• Form 11-C, Occupational Tax and Registration Return \nfor Wagering; and \n• Form 2290, Heavy Highway Vehicle Use Tax Return. \nFilers only need to complete and attach to Form 8849 the \napplicable schedules. \nDo not use Form 8849: \n• To make adjustments to liability reported on Forms \n720 filed for prior quarters; instead, use Form 720X, \nAmended Quarterly Federal Excise Tax Return. \n• To claim amounts that you took or will take as a credit \non Form 720, Schedule C; Form 730; Form 2290; or Form \n4136. \nAdditional Information \nPub. 510, Excise Taxes, has information on fuel tax \ncredits, refunds, nontaxable uses, and the definitions of \nterms such as ultimate vendor.\nPub. 225, Farmer’s Tax Guide, has information on \ncredits and refunds for the federal excise tax on fuels \napplicable to farmers. \nYou may also call the IRS business and specialty tax \nline at 1-800-829-4933 with your excise tax questions. \nWhere To File \n• For Schedules 1 and 6, send Form 8849 to: \nDepartment of the Treasury \nInternal Revenue Service \nCincinnati, OH 45999-0002 \n• For Schedules 2, 3, 5, and 8, send Form 8849 to: \nInternal Revenue Service \nP.O. Box 312 \nCovington, KY 41012-0312 \nCaution. Private delivery services designated by the IRS \ncannot deliver items to P.O. boxes. You must use the \nU.S. Postal Service to mail any item to an IRS P.O. box \naddress. For details on designated private delivery \nservices, see Pub. 509, Tax Calendars. \nIncluding the Refund in Income \nInclude any refund of excise taxes in your gross income if \nyou claimed the amount of the tax as an expense \ndeduction that reduced your income tax liability. \nCash method. If you use the cash method and file a \nclaim for refund, include the refund amount in your gross \nincome for the tax year in which you receive the refund. \nAccrual method. If you use an accrual method, include \nthe amount of refund in gross income for the tax year in \nwhich you used the fuels or sold the fuels if you are a \nregistered ultimate vendor or registered credit card issuer.\n",
"Form 8849 (Rev. 8-2014) \nPage 3 \nSpecific Instructions \nName and Address \nPrint the information in the spaces provided. Begin \nprinting in the first box on the left. Leave a blank box \nbetween each name and word. If there are not enough \nboxes, print as many letters as there are boxes. Use \nhyphens for compound names; use one box for each \nhyphen. \nP.O. box. If your post office does not deliver mail to your \nstreet address and you have a P.O. box, show your box \nnumber instead of your street address. \nForeign address. Follow the country’s practice for \nentering the postal code. \nEIN and SSN\nEnter your EIN in the boxes provided. If you are not \nrequired to have an EIN, enter your SSN. An incorrect or \nmissing number will delay processing your claim. \nMonth Income Tax Year Ends \nEnter the month your income tax year ends. For \nexample, if your income tax year ends in December, \nenter “12” in the boxes. If your year ends in March, enter \n“03.” \nSignature \nForm 8849 must be signed by a person with authority to \nsign this form for the claimant. \nNote. Your refund will be delayed or Form 8849 will be \nreturned to you if you do not follow the required \nprocedures or do not provide all the required information. \nSee the instructions for each schedule. \nComplete each schedule and attach all information \nrequested for each claim you make, generally including \nthe following: \n• EIN (or SSN) on each attached schedule, \n• Period of the claim, \n• Item number (when requested) from the Type of Use \nTable below, \n• Rate (as needed; see the separate schedule \ninstructions), \n• Number of gallons, and \n• Amount of refund. \nIf you need more space for any line on a schedule (for \nexample, you have more than one type of use) prepare a \nseparate sheet with the same information. Include your \nname and EIN (or SSN) on each sheet you attach. \nType of Use Table \nThe following table lists the nontaxable uses of fuels. You \nmust enter the number from the table in the Type of Use \ncolumn as required on Schedules 1 and 2. \nNo. \nType of Use \n1 \nOn a farm for farming purposes \n2 \nOff-highway business use (for business use other than in \na highway vehicle registered or required to be registered \nfor highway use) (other than use in mobile machinery) \n3 \nExport \n4 \nIn a boat engaged in commercial fishing \n5 \nIn certain intercity and local buses \n6 \nIn a qualified local bus \n7 \nIn a bus transporting students and employees of \nschools (school buses)\n8 \nFor diesel fuel and kerosene (other than kerosene used \nin aviation) used other than as a fuel in the propulsion \nengine of a train or diesel-powered highway vehicle \n(but not off-highway business use) \n9 \nIn foreign trade \n10 \nCertain helicopter and fixed-wing aircraft uses \n11 \nExclusive use by a qualified blood collector \norganization \n12 \nIn a highway vehicle owned by the United States that \nis not used on a highway \n13 \nExclusive use by a nonprofit educational \norganization \n14 \nExclusive use by a state, political subdivision of a \nstate, or the District of Columbia \n15 \nIn an aircraft or vehicle owned by an aircraft \nmuseum \n16 \nIn military aircraft \nTypes of Use 13 and 14. Generally, claims for sales of \ndiesel fuel, kerosene, kerosene for use in aviation, \ngasoline, or aviation gasoline for the exclusive use of a \nstate or local government (and nonprofit educational \norganization for gasoline or aviation gasoline) must be \nmade following the order below. \n1. By the registered credit card issuer if the state or \nlocal government (or nonprofit educational organization if \napplicable) used a credit card and the credit card issuer \nmeets the requirements discussed in the Schedule 8 \n(Form 8849) instructions. \n2. By the registered ultimate vendor if the ultimate \npurchaser did not use a credit card and the ultimate \nvendor meets the requirements discussed in the \nSchedule 2 (Form 8849) instructions. \n3. By the ultimate purchaser if the ultimate purchaser \nused a credit card and neither the registered credit card \nissuer nor the registered ultimate vendor is eligible to \nmake the claim. \nFor additional requirements, see Pub. 510. \n",
"Form 8849 (Rev. 8-2014) \nPage 4 \nAdditional Information for Schedules 1, 2, \nand 3 \nAnnual Claims \nIf a claim was not made for any gallons during the \nincome tax year on Form 8849, an annual claim may be \nmade. Generally, an annual claim is made on Form 4136 \nfor the income tax year during which the fuel was: \n• Used by the ultimate purchaser; \n• Sold by the registered ultimate vendor; \n• Purchased with a credit card issued by a registered \ncredit card issuer (except for gasoline and aviation \ngasoline); \n• Used to produce biodiesel or renewable diesel \nmixtures, and alternative fuel mixtures; or \n• Used in mobile machinery. \nThe following claimants must use Form 8849 (Schedule \n1) for annual claims. \n1. The United States. \n2. A state, political subdivision of a state, or the District \nof Columbia (but see Types of Use 13 and 14, earlier). \n3. Organizations exempt from income tax under section \n501(a) (provided that the organization is not required to \nfile Form 990-T, Exempt Organization Business Income \nTax Return, for that taxable year). \nFor claimants included in 1–3 above, the annual Form \n8849 for fuel used during the taxable year must be filed \nwithin the 3 years following the close of the taxable year. \nFor these claimants, the taxable year is based on the \ncalendar year or fiscal year it regularly uses to keep its \nbooks. \nAlthough not an annual claim, the above claimants \nshould use Schedule 3 (Form 8849) to claim the \nalternative fuel credit. \nNote. Gasoline used by the above claimants on a farm \nfor farming purposes (type of use 1) is an allowable use \non Schedule 1 (Form 8849), line 1. \nPaid Preparer Use Only\nA paid preparer must sign Form 8849 and provide the \ninformation in the Paid Preparer Use Only section at the \nend of the form if the preparer was paid to prepare the \nform and is not an employee of the filing entity. The \npreparer must give you a copy of the form in addition to \nthe copy to be filed with the IRS.\nIf you are a paid preparer, enter your Preparer Tax \nIdentification Number (PTIN) in the space provided. \nInclude your complete address. If you work for a firm, you \nalso must enter the firm's name and the EIN of the firm. \nHowever, you cannot use the PTIN of the tax preparation \nfirm in place of your PTIN.\nYou can apply for a PTIN online or by filing Form W-12, \nIRS Paid Preparer Tax Identification Number (PTIN) \nApplication and Renewal. For more information about \napplying for a PTIN online, visit the IRS website at \nwww.irs.gov/ptin.\nPrivacy Act and Paperwork Reduction Act Notice. We \nask for the information on the form and schedules to carry \nout the Internal Revenue laws of the United States. We need \nit to figure and collect the right amount of tax. Subtitle F, \nProcedure and Administration, of the Internal Revenue Code \nallows refunds of taxes imposed under Subtitle D, \nMiscellaneous Excise Taxes. The form and schedules are \nused to determine the amount of the refund that is due to \nyou. Section 6109 requires you to provide your taxpayer \nidentification number (SSN or EIN). Routine uses of tax \ninformation include giving it to the Department of Justice for \ncivil and criminal litigation, and cities, states, and the District \nof Columbia for use in administering their tax laws. We may \nalso disclose this information to other countries under a tax \ntreaty, to federal and state agencies to enforce federal \nnontax criminal laws, or to federal law enforcement \nagencies and intelligence agencies to combat terrorism. \nYou are not required to claim a refund; however, if you \ndo so you must provide the information requested on this \nform. If you fail to provide all requested information in a \ntimely manner, we may be unable to process this claim. If \nyou provide false or fraudulent information, you may be \nliable for penalties. \nYou are not required to provide the information \nrequested on a form that is subject to the Paperwork \nReduction Act unless the form displays a valid OMB \ncontrol number. Books or records relating to a form or its \ninstructions must be retained as long as their contents \nmay become material in the administration of any Internal \nRevenue law. Generally, tax returns and return \ninformation are confidential, as required by section 6103. \nThe time needed to complete and file the form and \nschedules will vary depending on individual \ncircumstances. The estimated average times are: \nRecord- \nkeeping \nLearning \nabout the law \nor the form \nPreparing, copying, \nassembling, and \nsending the form \nto the IRS \nForm 8849 \n3 hr., 21 min. \n24 min. \n28 min. \nSchedule 1 \n20 hr., 19 min. \n6 min. \n25 min. \nSchedule 2 \n11 hr., 43 min. \n11 min. \nSchedule 3 \n7 hr., 10 min. \n6 min. \n13 min. \nSchedule 5 \n3 hr., 35 min. \n6 min. \n9 min. \nSchedule 6 \n2 hr., 9 min. \n24 min. \n27 min. \nSchedule 8 \n5 hr., 15 min. \n5 min. \nIf you have comments concerning the accuracy of \nthese time estimates or suggestions for making the form \nand schedules simpler, we would be happy to hear from \nyou. You can send your comments from \nwww.irs.gov/formspubs. Click on “More Information” and \nthen on “Give us feedback.” You can also write to:\nInternal Revenue Service \nTax Forms and Publications \n1111 Constitution Ave. NW, IR-6526 \nWashington, DC 20224 \nDo not send Form 8849 to this address. Instead, see \nWhere To File, earlier.\n"
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p5144.pdf
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0614 Publ 5144 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5144.pdf
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[
"Federal Income Tax and FICA Withholding for \nForeign \nAgricultural \nWorkers \nwith \nan \nH-2A \nVisa\nH-2A Foreign Agricultural Workers\nQ1. Do H-2A workers need a U.S. Social Security Number?\nA1. Yes. You will need an SSN to report your wages. Give your employer a \ncopy of your SSN when you start work. If you do not have your SSN when you \nstart work, give a copy of your SSN to your employer as soon as you get it.\nQ2. How do I get a U.S. SSN?\nA2. You will need to contact the Social Security Administration (SSA) to get \nan SSN.\nYou must visit an SSA office and bring your U.S. Immigration documents with \nyou.\nQ3. Are the wages I earn as an H-2A worker subject to U.S. federal income \ntax?\nA3. Yes. Wages you earn as an H-2A worker are subject to U.S. federal income \ntax.\nTIP: You should receive a Form W-2, Wage and Tax Statement, from your \nemployer for each year you work. You will need the W-2 to file with your U.S. \nfederal income tax return.\nQ4. Are the wages I earn as an H-2A worker subject to U.S. Social Security \nand Medicare taxes?\nA4. No. Wages you earn as an H-2A worker are not subject to U.S. social secu\nrity and Medicare taxes.\nQ5. Am I required to file a U.S. federal income tax return?\nA5. Yes. You are required to file a U.S. federal income tax return if you meet \nthe filing requirements as follows: Nonresident aliens should refer to the \nInstructions for Form 1040NR, U.S. Nonresident Alien Income Tax Return or \nForm 1040NR-EZ, U.S. Income Tax Return for Certain Non-resident Aliens \nWith No Dependents for information regarding filing requirements and special \nconditions. Resident aliens should refer to the instructions for Form 1040, U.S. \nIndividual Income Tax Return, or Form 1040A, U.S. Individual Income Tax \nReturn, or Form 1040-EZ, Income Tax Return for Single and Joint Filers With \nNo Dependents, for more information regarding filing requirements and special \nconditions.\nTo determine if you are a resident alien or a nonresident alien, see Chapter 1 of \nPublication 519, U.S. Tax Guide for Aliens.\nQ6. How do I pay any U.S. federal income tax I owe?\nA6. You may: Have U.S. federal income tax voluntarily withheld from your \nwages, but ONLY if both you and your employer agree to withhold. \nMake estimated payments to the U.S. Internal Revenue Service on Form 1040-\nES (if a resident alien), or on Form 1040-ES (NR) (if a nonresident alien). \nPay any remaining tax due by the due date of the tax return.\nDid You Know ...\n❙\n❙Employers may be \nexempt from withholding \nof federal taxes, but not \nexempt from reporting of \nwages paid to foreign \nagricultural employees on \nH-2A visas.\n❙\n❙H-2A workers must have a \nU. S. Social Security Number \n(SSN).\nAdditional Resources\n❙\n❙IRS Publication 515, \nWithholding of Tax on Non\nresident Aliens and Foreign \nEntities \n❙\n❙Publication 519, U.S. Tax \nGuide for Aliens (Information \non determining resident or \nnon-resident alien status) \n❙\n❙IRS Publication 901, Tax \nTreaties \n❙\n❙Form W-4, Employees With\nholding Allowance Certificate \n❙\n❙Foreign Agricultural informa\ntion on IRS.gov \n❙\n❙English: http://www.irs.\ngov/Individuals/Interna\ntional-Taxpayers/Foreign-\nAgricultural-Workers \n❙\n❙Spanish: http://www.irs.\ngov/Spanish/Trabajadores-\nagrícolas-extranjeros\nPublication 5144 (6-2014) Catalog Number 66381S \nDepartment of the Treasury Internal Revenue Service www.irs.gov\n",
"Employers of H2-A Foreign Agricultural Workers\nQ1. Are Foreign Agricultural workers exempt from withholding of U.S. federal \nincome tax and FICA taxes?\nA1. Yes. Foreign agricultural workers admitted into the United States on H-2A \nvisas are exempt from federal income tax withholding, AND U.S. Social Secu\nrity and Medicare taxes (FICA) on wages paid to them for services performed \nin connection with their H-2A visa.\nQ2. Even though employers do not have to withhold federal taxes on wages \npaid to H-2A workers, do I still have to report the wages to the IRS?\nA2. Yes\nQ3. As an employer, what forms do I use to report wages paid to an H-2A \nworker?\nA3. If the H-2A worker has provided you with his U.S. Social Security Number \n(SSN), report wages of $600 or more paid to him on Form W-2, Wage and Tax \nStatement, (NOT on Form 1099-MISC, Miscellaneous Income, as required in \nprevious years). Also, report the wages on Form 943, Employer’s Annual Fed\neral Tax Return for Agricultural Employees.\nForm W-2: Report the wages in Box 1 (Wages, tips and other compensation). \nDo NOT report the amount in Box 3 (Social Security wages) or Box 5 (Medi\ncare wages). Do NOT check Box 13 “Statutory Employee.” H-2A agricultural \nworkers are not “Statutory Employees.”\nForm 943: Report wages on Line 1. Do NOT report the wages on Line 2 (Wag\nes subject to Social Security tax) and Line 4 (Wages subject to Medicare tax).\nQ4. Are H-2A workers subject to backup withholding?\nA4. Yes. As an employer, you must withhold 28 percent backup withholding tax \nfrom your worker’s wages if: The H-2A worker has not furnished a U.S. Social \nSecurity Number or an IRS issued Individual Taxpayer Identification Number \n(ITIN) to their employer, AND the total annual wages paid to the H-2A worker \nis at least $600.\nTIP: Employers are liable for the amount of tax that should have been with\nheld but was not.\nQ5. How do I report Backup Withholding?\nA5. As an employer, you must report the wages subject to Backup Withholding \nand the tax withheld on: Form 1099-MISC, AND Form 945, Annual Return of \nWithheld Federal Income Tax\nTIP: Do NOT report backup withholding on Form W-2 and Form 943.\nQ6. Can the H-2A worker request voluntary federal income tax withholding?\nA6. Yes. As an employer, you can withhold voluntary federal income tax, but \nONLY if the H-2A agricultural worker and you both agree to withhold. If the \nH-2A worker is a nonresident alien, then follow the withholding procedures in \nChapter 9 of Publication 15 (Circular E) Employer’s Tax Guide. If the H-2A \nworker is a resident alien, then follow the withholding procedures in Publica\ntion 51 (Circular A), Agricultural Employer’s Tax Guide.\nAdditional Help\n❙\n❙Call 1-800-TAX-FORM (1-\n800-829-3676) to order \ncurrent-year forms, instruc\ntions and publications. \n❙\n❙Call 1-800-829-4933 to get \nhelp from the IRS Business \nand Specialty Tax Line. \n❙\n❙Visit IRS.gov/localcontacts \nto locate your local Taxpay\ner Assistance Center. \n❙\n❙Call 1-800-829-4059 if you \nare calling using TDD/TTY \nequipment. Or GSA.gov/fe\ndrelay for the Federal Relay \nService. \n❙\n❙Call 1-800-829-4477 to \nlisten to pre-recorded mes\nsages covering various tax \ntopics. \n❙\n❙Visit http://www.ssa.gov/ \nfor Social Security Adminis\ntration information. \n❙\n❙Make a payment: http://\nwww.irs.gov/Payments/\nMake-a-Payment \n❙\n❙Call 267-941-1000 if you \nhave international ques\ntions. \n❙\n❙Visit http://www.irs.gov/\nuac/Help-With-Tax-Ques\ntions---International-Tax\npayers to email an interna\ntional questions. \n❙\n❙Call 1-877-777-4778 (TTY/\nTTD: 1-800-829-4059) for \nthe Taxpayer Advocate \nService. \n❙\n❙Email [email protected] \nfor more information on \nVolunteer Income Tax As\nsistance’s Free File and self-\npreparation.\n"
] |
f1023ez.pdf
|
0614 Form 1023-EZ (PDF)
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https://www.irs.gov/pub/irs-pdf/f1023ez.pdf
|
[
"Form 1023-EZ\n(June 2014)\nStreamlined Application for Recognition of Exemption \nUnder Section 501(c)(3) of the Internal Revenue Code\na Do not enter social security numbers on this form as it may be made public.\na Information about Form 1023-EZ and its separate instructions is at www.irs.gov/form1023.\nDepartment of the Treasury \nInternal Revenue Service\nOMB No. 1545-0056\nNote: If exempt status is \napproved, this application will \nbe open for public inspection.\nCheck this box to attest that you have completed the Form 1023-EZ Eligibility Worksheet in the current instructions, are eligible to apply \nfor exemption using Form 1023-EZ, and have read and understand the requirements to be exempt under section 501(c)(3).\nPart I \nIdentification of Applicant \n1a Full Name of Organization\nb Address (number, street, and room/suite). If a P.O. box, see instructions.\nc City\nd State\ne Zip Code + 4\n2 Employer Identification Number\n3 Month Tax Year Ends (MM)\n4 Person to Contact if More Information is Needed\n5 Contact Telephone Number\n6 Fax Number (optional)\n7 User Fee Submitted\n8 List the names, titles, and mailing addresses of your officers, directors, and/or trustees. (If you have more than five, see instructions.)\nFirst Name:\nLast Name:\nTitle:\nStreet Address:\nCity:\nState:\nZip Code + 4:\nFirst Name:\nLast Name:\nTitle:\nStreet Address:\nCity:\nState:\nZip Code + 4:\nFirst Name:\nLast Name:\nTitle:\nStreet Address:\nCity:\nState:\nZip Code + 4:\nFirst Name:\nLast Name:\nTitle:\nStreet Address:\nCity:\nState:\nZip Code + 4:\nFirst Name:\nLast Name:\nTitle:\nStreet Address:\nCity:\nState:\nZip Code + 4:\n9 a Organization's Website (if available):\n b Organization's Email (optional):\nPart II \nOrganizational Structure \n1\nTo file this form, you must be a corporation, an unincorporated association, or a trust. Check the box for the type of organization.\nCorporation\nUnincorporated association\nTrust\n2\nCheck this box to attest that you have the organizing document necessary for the organizational structure indicated above.\n(See the instructions for an explanation of necessary organizing documents.)\n3\nDate incorporated if a corporation, or formed if other than a corporation (MMDDYYYY):\n4\nState of incorporation or other formation:\n5\nSection 501(c)(3) requires that your organizing document must limit your purposes to one or more exempt purposes within section 501(c)(3).\nCheck this box to attest that your organizing document contains this limitation.\n6\nSection 501(c)(3) requires that your organizing document must not expressly empower you to engage, otherwise than as an insubstantial part of \nyour activities, in activities that in themselves are not in furtherance of one or more exempt purposes.\nCheck this box to attest that your organizing document does not expressly empower you to engage, otherwise than as an insubstantial \npart of your activities, in activities that in themselves are not in furtherance of one or more exempt purposes.\n7\nSection 501(c)(3) requires that your organizing document must provide that upon dissolution, your remaining assets be used exclusively for \nsection 501(c)(3) exempt purposes. Depending on your entity type and the state in which you are formed, this requirement may be satisfied by \noperation of state law.\nCheck this box to attest that your organizing document contains the dissolution provision required under section 501(c)(3) or that you do \nnot need an express dissolution provision in your organizing document because you rely on the operation of state law in the state in which \nyou are formed for your dissolution provision.\nFor Paperwork Reduction Act Notice, see the instructions.\nCatalog No. 66267N\nForm 1023-EZ (6-2014) \nForm 1023-EZ is filed electronically only on Pay.gov. \nYou must complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ to \ndetermine if you are eligible to file this form. Form 1023-EZ is filed electronically only on Pay.gov. \nGo to www.irs.gov/form1023ez for additional filing information. \n \n",
"Form 1023-EZ (6-2014)\nPage 2\nPart III \nYour Specific Activities\n1\nEnter the appropriate 3-character NTEE Code that best describes your activities (See the instructions):\n2 To qualify for exemption as a section 501(c)(3) organization, you must be organized and operated exclusively to further one or more of the \nfollowing purposes. By checking the box or boxes below, you attest that you are organized and operated exclusively to further the purposes \nindicated. Check all that apply.\nCharitable\nReligious\nEducational \nScientific \nLiterary\nTesting for public safety \nTo foster national or international amateur sports competition \nPrevention of cruelty to children or animals\n3\nTo qualify for exemption as a section 501(c)(3) organization, you must:\n• Refrain from supporting or opposing candidates in political campaigns in any way.\n• Ensure that your net earnings do not inure in whole or in part to the benefit of private shareholders or individuals (that is, board members, \nofficers, key management employees, or other insiders).\n• Not further non-exempt purposes (such as purposes that benefit private interests) more than insubstantially.\n• Not be organized or operated for the primary purpose of conducting a trade or business that is not related to your exempt purpose(s).\n• Not devote more than an insubstantial part of your activities attempting to influence legislation or, if you made a section 501(h) election, not \nnormally make expenditures in excess of expenditure limitations outlined in section 501(h).\n• Not provide commercial-type insurance as a substantial part of your activities.\nCheck this box to attest that you have not conducted and will not conduct activities that violate these prohibitions and restrictions.\n4\nDo you or will you attempt to influence legislation? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n(If yes, consider filing Form 5768. See the instructions for more details.)\nYes\nNo\n5\nDo you or will you pay compensation to any of your officers, directors, or trustees?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n(Refer to the instructions for a definition of compensation.)\nYes\nNo\n6\nDo you or will you donate funds to or pay expenses for individual(s)?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\n7\nDo you or will you conduct activities or provide grants or other assistance to individual(s) or organization(s) outside the \nUnited States?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\n8\nDo you or will you engage in financial transactions (for example, loans, payments, rents, etc.) with any of your officers, \ndirectors, or trustees, or any entities they own or control? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\n9\nDo you or will you have unrelated business gross income of $1,000 or more during a tax year? .\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\n10 Do you or will you operate bingo or other gaming activities? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \nYes\nNo\n11\nDo you or will you provide disaster relief? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\nPart IV \nFoundation Classification \nPart IV is designed to classify you as an organization that is either a private foundation or a public charity. Public charity \nstatus is a more favorable tax status than private foundation status.\n1 If you qualify for public charity status, check the appropriate box (1a – 1c below) and skip to Part V below.\na\nCheck this box to attest that you normally receive at least one-third of your support from public sources or you normally receive at least 10 \npercent of your support from public sources and you have other characteristics of a publicly supported organization. Sections 509(a)(1) and \n170(b)(1)(A)(vi).\nb\nCheck this box to attest that you normally receive more than one-third of your support from a combination of gifts, grants, contributions, \nmembership fees, and gross receipts (from permitted sources) from activities related to your exempt functions and normally receive not more \nthan one-third of your support from investment income and unrelated business taxable income. Section 509(a)(2).\nc\nCheck this box to attest that you are operated for the benefit of a college or university that is owned or operated by a governmental unit. \nSections 509(a)(1) and 170(b)(1)(A)(iv).\n2 If you are not described in items 1a – 1c above, you are a private foundation. As a private foundation, you are required by section 508(e) to have \nspecific provisions in your organizing document, unless you rely on the operation of state law in the state in which you were formed to meet \nthese requirements. These specific provisions require that you operate to avoid liability for private foundation excise taxes under sections \n4941-4945.\nCheck this box to attest that your organizing document contains the provisions required by section 508(e) or that your organizing document \ndoes not need to include the provisions required by section 508(e) because you rely on the operation of state law in your particular state to \nmeet the requirements of section 508(e). (See the instructions for explanation of the section 508(e) requirements.)\nForm 1023-EZ (6-2014)\nForm 1023-EZ is filed electronically only on Pay.gov. \nYou must complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ to \ndetermine if you are eligible to file this form. Form 1023-EZ is filed electronically only on Pay.gov. \nGo to www.irs.gov/form1023ez for additional filing information. \n \n",
"Form 1023-EZ (6-2014)\nPage 3\nPart V\nReinstatement After Automatic Revocation\nComplete this section only if you are applying for reinstatement of exemption after being automatically revoked for failure to \nfile required annual returns or notices for three consecutive years, and you are applying for reinstatement under section 4 or 7 \nof Revenue Procedure 2014-11. (Check only one box.)\n1\nCheck this box if you are seeking retroactive reinstatement under section 4 of Revenue Procedure 2014-11. By checking this box, you attest \nthat you meet the specified requirements of section 4, that your failure to file was not intentional, and that you have put in place procedures \nto file required returns or notices in the future. (See the instructions for requirements.) \n2 \nCheck this box if you are seeking reinstatement under section 7 of Revenue Procedure 2014-11, effective the date you are filling this \napplication.\nPart VI\nSignature\nI declare under the penalties of perjury that I am authorized to sign this application on behalf of the above organization \nand that I have examined this application, and to the best of my knowledge it is true, correct, and complete.\nPLEASE \nSIGN \nHERE\n(Type name of signer)\n(Type title or authority of signer)\nF\n(Signature of Officer, Director, Trustee, or other authorized official)\nF\n(Date)\nForm 1023-EZ (6-2014)\nPrinted on recycled paper\nForm 1023-EZ is filed electronically only on Pay.gov. \nYou must complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ to \ndetermine if you are eligible to file this form. Form 1023-EZ is filed electronically only on Pay.gov. \nGo to www.irs.gov/form1023ez for additional filing information. \n \n"
] |
p4418.pdf
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0614 Publ 4418 (PDF)
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https://www.irs.gov/pub/irs-pdf/p4418.pdf
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[
"KNOW\nto\nWhen should I seek help from \nthe Taxpayer Advocate Service?\nBefore seeking help from the Taxpayer Advocate \nService (TAS), you or your representative should \nfirst try to resolve your problem by working directly \nwith the IRS. \nIf you’re having financial difficulties or the IRS is unresponsive, \ntaking too long to resolve your problem, or is threatening \naction that will harm you or your family, TAS may be able \nto help. You can contact TAS by calling our toll-free number \nat 1-877-ASK-TAS1 (1-877-275-8271).\nNEED\nWHAT YOU\nThe Federal Levy Payment Program\nas it applies to your Social Security benefits\nCONSUMER TAX TIP\nDepartment of the Treasury Internal Revenue Service www.irs.gov \nPublication 4418 (Rev. 6-2014) Catalog Number 39183C\n@YourVoiceatIRS\n/YourVoiceatIRS\n/TASNTA\nIRS\nCan anyone else help me?\nDepending on your income, you may be eligible for help from a \nLow Income Taxpayer Clinic (LITC). These clinics are independent \nfrom the IRS. Some provide professional representation before the \nIRS or in court on collection disputes and other issues \nfor free or for a small fee. \nTo get more information or find a clinic near you, \nvisit www.irs.gov/litc or IRS Publication 4134, \nLow Income Taxpayer Clinic List. You can get this publication at \nwww.irs.gov, at your local IRS office, or by calling 1-800-829-3676.\n1\nwww\nFor more information on the programs and options in \nthis brochure, visit www.taxpayeradvocate.irs.gov/\nIndividuals/Federal-Payment-Levy-Program \nfor videos, publications, and other resources.\nWhere can I get more information?\nwww.TaxpayerAdvocate.irs.gov\nThe Taxpayer Advocate Service (TAS) is your voice at the IRS. \nOur job is to ensure that every taxpayer is treated fairly \nand that you know and understand your rights. \n",
"If you are a guardian or conservator, you will need a Power of \nAttorney before the IRS can talk to you about tax problems and make \nany payment arrangements. A Power of Attorney can be obtained \nby completing Form 2848, Power of Attorney and Declaration \nof Representative. If the taxpayer is incapacitated, you may still \ncomplete a Form 2848; however, you will need to attach the legal \ndocumentation that allows you to act on the taxpayer’s behalf.\nThe first step is to determine if you owe the tax. Some \npossibilities for relief from your federal tax debt include:\nAudit Reconsideration\nYou may not have responded to an earlier IRS notice \nand the IRS may have assessed the liability based \non certain assumptions. You may be able to ask the \nIRS to reconsider the assessment. (see Publication 3598, \nWhat You Should Know About the Audit Reconsideration Process)\nInnocent Spouse Relief \nGenerally, both you and your spouse are each \nresponsible for paying the full amount of any tax, \ninterest, and penalties due on your joint return. \nHowever, if you qualify for innocent spouse relief, you \nmay be relieved of those amounts of your spouse (or \nformer spouse) that were incorrectly reported on the \njoint return. (see Publication 971, Innocent Spouse Relief)\nWhat should I do if I’m subject to a levy?\nThe worst thing you \ncan do is nothing at all.\nWhat is a levy on Social Security benefits?\nAll taxpayers with outstanding tax debts are subject to a levy on \nassets and income sources, including Social Security benefits. \nThere are two ways the IRS may levy upon your Social Security \nbenefits – via the automated Federal Payment Levy Program (FPLP) \nor by a manual (non-FPLP) levy. \nUnder the FPLP, the IRS is able to levy up to 15 percent of your Social \nSecurity benefits each month; there is no similar restriction on how \nmuch the IRS can receive from manual levies. There is an exemption \namount, however, for reasonable living expenses. Once a levy is in \nplace, the IRS may withhold monies from the federal payments you \nreceive. This levy may continue until the entire amount of your federal \ntax debt is repaid or other payment arrangements are made, or the \ndebt becomes unenforceable by law.\nWhat if I can’t pay the amount I owe in full?\nIf you are subject to the levy, you will receive a notice from the IRS. \nIf you do not pay the tax or contact the IRS within 30 days of the \ndate of the notice, the IRS is allowed to levy on your Social Security \nbenefits. Once your payments are levied, you will receive a notice \nindicating the amount of the levy. If you have an outstanding tax liability, \nyou can take steps now to prevent having your payments levied.\nThe next step is to determine if you are able to pay all or part of \nthe tax you owe. It is important that you call the IRS immediately. \nIf the IRS determines that you cannot pay any of your tax debt \ndue to an economic hardship, the IRS may temporarily delay \ncollection until your financial condition improves. Please be \nprepared to provide your monthly income and expenses so the \nIRS can help you resolve your tax matter. \nIf you are unable to pay your liability in full, you may want \nto consider one of the following collection alternatives:\n\t •\tEnter into a monthly installment agreement;\n\t •\tEnter into an Offer in Compromise; or\n\t •\tRequest to be classified as currently not collectible. Being \t\n\t\n\t \t currently not collectible does not mean the debt goes away. \n\t \t It means that the IRS has determined you cannot afford to \n\t \t pay the debt at this time. Penalties and interest will continue \n \n\t \t to be added to the debt.\nFor more information on these collection alternatives, refer to \nPublication 594, The IRS Collection Process.\nWhat if you are a guardian or conservator \nfor a taxpayer?\nSocial Security payments \nthe IRS levies\nSocial Security payments \nthe IRS does not levy\n• Retirement\n• Survivors\n• Disability Insurance\n• Children’s benefits\n• Supplemental Security Income\n• Lump sum death benefits\nWill I be subject to a levy?\n"
] |
f4219.pdf
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0514 Form 4219 (PDF)
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https://www.irs.gov/pub/irs-pdf/f4219.pdf
|
[
"Form 4219 (Rev. 5-2014)\nCatalog Number 41456S\nwww.irs.gov\nDepartment of the Treasury—Internal Revenue Service\n \nForm 4219 \n(Rev. May 2014)\nStatement of Liability of Lender, Surety, or \nOther Person for Withholding Taxes \nUnder Section 3505 of the Internal Revenue Code \n(Please file this form in duplicate)\nInformation relating to Employer (Borrower) for whom wages paid or to whom funds supplied\n1. Name of employer (as used on employment tax return)\n2. Employer identification number\n3. Trade name, if other than above\n4. Date quarter ended (See item 4 of \ninstructions)\n5. Address (Number, street, city, State, ZIP code)\nInformation about the person making the wage payments for, or supplying funds to, the above Employer (Borrower)\n6. Name\n7. Address (Number, street, city, State, ZIP code)\n8. Identification of project(s), contract(s), etc., for which wages paid or funds supplied\nComputation of \nLiability for \nWithholding Taxes \non Wages Paid \nDirectly to \nEmployees of \nBorrower\n 9. Amount of employees taxes required to be \nwithheld by employer\na. Income tax\nb. FICA tax\nc. Railroad retirement tax\n10. Total taxes required to be withheld by employer (Sum of Items 9a, b, and c)\n11. Portion of Item 10 paid by employer\n12. Liability for withholding taxes (Item 10 minus Item 11. Enter here and in Item 19.)\nComputation of \nLiability for \nWithholding Taxes \non Funds Supplied \nfor Specific \nPurpose of Paying \nWages\n13. Amount supplied to employer for paying wages\n$\n14. Amount of employee taxes required to be \nwithheld by employer\na. Income tax\nb. FICA tax\nc. Railroad retirement tax\n15. Total taxes required to be withheld by employer (Sum of Items 14a, b, and c)\n16. Portion of Item 15 paid by employer\n17. Balance of Item 15 not paid by employer (Item 15 minus Item 16)\n18. Liability for withholding taxes (The lesser of Item 17 or 25 percent of Item 13. Enter here \nand in Item 20.)\nTotal \nLiability\n19. Liability where wages paid directly to employees (Item 12)\n20. Liability where funds supplied for payment of wages (Item 18)\n21. Total liability for withholding taxes (Sum of Items 19 and 20)\n22. Interest liability\n23. Total liability (Sum of Items 21 and 22)\nUnder the penalties of perjury, I declare that I have examined this statement, and to the best of my knowledge and belief, it is true, correct, \nand complete. Declaration of preparer (other than taxpayer) is based on all information of which he/she has any knowledge.\nSignature of lender, surety, or other person\nTitle\nDate\nSignature of preparer, if other than above\nTitle\nDate\nOMB Number \n1545-2254\n",
"Form 4219 (Rev. 5-2014)\nCatalog Number 41456S\nwww.irs.gov\nDepartment of the Treasury—Internal Revenue Service\nForm 4219 (Rev. 5-2014)\nPage 2\nGeneral Instructions\nWho must file Form 4219—File this form if you are a lender, surety, or \nother person who, by reason of having paid wages directly to employees \nof another employer, or having supplied funds for the purpose of paying \nwages to employees of another employer, has incurred liability under \nsection 3505 of the Internal Revenue Code for taxes required to be \nwithheld. If you are an employer within the meaning of code section 3401\n(d)(1) or (d)(2) and the related regulations, do not use Form 4219 to \nreport income tax withholding.\nInternal Revenue Code—Section 3505(a) provides that if a lender, \nsurety, or other person pays wages directly to employees of another \nemployer, or to an agent of such employees, the lender, surety, or other \nperson is liable for payment to the United States of a sum equal to the \nfollowing taxes (and interest) required to be withheld from such wages by \nthe other employer:\n(a) FICA tax required to be withheld under section 3102;\n(b) Railroad retirement tax required to be withheld under section \n3202; and \n(c) Income tax required to be withheld under section 3402.\nSection 3505(b) provides that if a lender, surety, or other person supplies \nfunds to or for the account of another employer for the specific purpose \nof paying wages of the employees of the other employer, with actual \nnotice or knowledge that the employer does not intend, or will not be \nable, to make timely payment or deposit of the above taxes required to \nbe withheld by the employer, the lender, surety, or other person is liable \nfor payment to the United States of a sum equal to the taxes, plus any \ninterest, that are not paid by the employer. However, the liability under \nsection 3505(b) cannot exceed 25% of the amount supplied specifically \nfor the purpose of paying of wages. Section 3505(b) does not apply to \nordinary working capital loans to employers, even though it is known that \npart of the funds advanced will be used to pay wages.\nFor purposes of section 3505(b), an organization is deemed to have \nactual notice or knowledge of any fact relating to a transaction from the \ntime that fact is brought to the attention of the individual conducting the \ntransaction, and in any event from the time that fact would have been \nbrought to the individual's attention if the organization had exercised due \ndiligence, as defined in Code section 6323(i)(1).\nThe liability under section 3505 does not extend to the portion of the \nemployer's taxes imposed under the Federal Insurance Contributions Act \nor the Railroad Retirement Tax Act. Under Section 3505, the employer \nremains liable for withholding taxes not paid by the lender, surety, or \nother person, and is required to file an employment tax return for such \nwages paid by the employer, a lender, surety, or other person, and \nfurnish statements to employees of taxes withheld.\nSeparate Form 4219 for each employer and each calendar quarter—\nA separate Form 4219 should be submitted, in duplicate, for each \nemployer and for each calendar quarter for which liability under section \n3505 is incurred. \nWhere to file—File Form 4219 with the office of the Internal Revenue \nService where the employer for whom wages were paid or funds were \nsupplied files Federal employment tax returns.\nPayment—Include with each Form 4219 a remittance (check or money \norder) for the amount shown in item 23, payable to the United States \nTreasury. Payment of the withholding taxes shown on Form 4219 by \neither the employer or the lender, surety, or other person satisfies the \nliability. If neither the employer nor the lender, surety, or other person \npays these taxes, the U.S. Government may collect the unpaid amount \nby appropriate civil action. To avoid the accumulation of interest, make \nthe payment on or before the due date of the employer's (borrower's) \nFederal employment tax return.\nSpecific Instructions\nItem 4. Enter the last day of the calendar quarter during which the wages \nwere actually paid to the employees of another employer. If funds were \nsupplied to the employer for payment of wages, show the last day of the \ncalendar quarter during which the wages were actually paid by the \nemployer.\nItem 9. Enter in items 9a, b, and c the amounts of employee taxes \nrequired to be withheld as if the wages were paid by the employer.\nItem 13. Enter the gross amount (without reduction for withholding taxes) \nsupplied to the employer for the specific purpose of paying wages which \nwere actually paid during this quarter. \nItem 14. Enter in items 14a, b, and c the amounts of employee taxes \nrequired to be withheld by the employer from wages paid during this \nquarter with funds supplied for that specific purpose.\nItem 22. If the liability is paid after the due dates of the employer's \nFederal employment tax return, interest will be charged at the annual \nrate established under Internal Revenue Code section 6621(a) subject to \nadjustments as provided in section 6621(b).\nPrivacy Act and Paperwork Reduction Act Notice\nWe ask for the information on Form 4219 to carry out the Internal Revenue laws \nof the United States. We need it to figure and collect the right amount of tax. \nSubtitle C, Employment Taxes, of the Internal Revenue Code imposes employment \ntaxes on wages, including income tax withholding. Form 4219 is used to determine \nif you as a lender, surety or other person who paid wages directly to employees of \nanother employer, has incurred liability under section 3505 for taxes required to be \nwithheld. Section 6011 requires you to provide the requested information if the tax \nis applicable to you. Section 6109 requires you to provide your identification \nnumber. If you fail to provide this information in a timely manner, or provide false or \nfraudulent information, you may be subject to penalties. \nYou are not required to provide the information requested on a form that is \nsubject to the Paperwork Reduction Act unless the form displays a valid OMB \ncontrol number. Books and records relating to a form or its instructions must be \nretained as long as their contents may become material in the administration of any \nInternal Revenue law. \nGenerally, tax returns and return information are confidential, as required by \nsection 6103. However, section 6103 allows or requires the IRS to disclose or give \nthe information shown on your tax return to others as described in the Code. For\nexample, we may disclose your tax information to the Department of Justice for civil \nand criminal litigation, and to cities, states, the District of Columbia, and U.S. \ncommonwealths and possessions for use in administering their tax laws. We may \nalso disclose this information to other countries under a tax treaty, to federal and \nstate agencies to enforce federal nontax criminal laws, or to federal law \nenforcement and intelligence agencies to combat terrorism.\nThe time needed to complete and file Form 4219 will vary depending on \nindividual circumstances. The estimated average time is: Recordkeeping, 11 hr.; \nLearning about the law or the form, 50 min.; Preparing, copying, assembling, \nand sending the form to the IRS, 1 hr.\nIf you have comments concerning the accuracy of these time estimates or \nsuggestions for making Form 4219 simpler, we would be happy to hear from you. \nYou can email us at [email protected]. Enter “Form 4219” on the subject line. Or \nwrite to: Internal Revnue Service, Tax Products Coordinating Committee, SE:W:\nCAR:MP:T:M:S, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do \nnot send Form 4219 to this address. Instead, see Where to File? in the instructions \nfor Form 4219.\n"
] |
n609s.pdf
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1013 Notc 609 (SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/n609s.pdf
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[
"Aviso 609(SP)\n(Rev. octubre de 2013)\nAviso sobre la Ley de \nConfidencialidad de Información \nDepartment of the Treasury\nInternal Revenue Service\nCat. No. 15314L\n Aviso 609(SP) (10-2013)\nLa Ley de Confdencialidad de Información (Privacy \nAct) de 1974 establece que cuando le solicitemos a \nusted información, primero tenemos que explicarle la \nautorización legal que nos da el derecho de pedir la \ninformación, los motivos por los cuales la estamos \nsolicitando y los usos que se harán de ella. También \ntenemos que explicarle las consecuencias que usted \ntendría al no cumplir con nuestro pedido e informarle \nsi usted está obligado o no bajo la ley a cumplir con \nnuestra solicitud. \nEste aviso corresponde a las declaraciones de \nimpuestos y cualesquier documentos anexos a las \ndeclaraciones. Asimismo corresponde a cualquier \npregunta que necesitemos hacerle con el objeto de \ncompletar, corregir o tramitar su declaración; calcular \nsu impuesto; y recaudar (cobrar) impuestos, \nintereses o multas. Solicitamos información sobre las \ndeclaraciones de impuestos para cumplir con las \nleyes que regulan los impuestos de los Estados \nUnidos. La necesitamos para calcular y cobrar \ncorrectamente el impuesto.\nLa autorización legal que nos permite solicitar \ninformación se encuentra en las secciones 6001, \n6011 y 6012 del Código de Impuestos Internos y en \nsu reglamentación correspondiente. Éstas establecen \nque usted tiene que presentar una declaración o \ninforme por cualquier impuesto al que usted esté \nsujeto. De acuerdo a estas secciones usted está \nobligado a responder a nuestra solicitud. Las \nsecciones 7601 a 7613 nos autorizan revisar los \nlibros y registros además de hacer preguntas para \nobtener información que necesitemos. La sección \n6109 del Código y su reglamentación establecen que \nusted tiene que proveer su número de identifcación \nen todo documento que presente. Los preparadores \nremunerados y los inciadores de declaraciones \nelectrónicas también tienen que proveer sus números \nde identifcación.\n",
"La ley nos autoriza a divulgar la información al \nDepartamento de Justicia para hacer cumplir toda ley \ntributaria federal civil y penal y a otras agencias \nfederales. Además, podemos divulgarla a las \nciudades, a los estados, al Distrito de Columbia y a \nlos estados libres asociados de los Estados Unidos o \nsus posesiones para que éstos hagan cumplir sus \nrespectivas leyes de impuestos. También la ley nos \nautoriza a facilitarle la información a algunos \ngobiernos extranjeros conforme a los tratados \ntributarios que tengan con los Estados Unidos. \nPodemos también divulgar la información contenida \nen este formulario a las agencias del gobierno federal \no estatal para hacer cumplir las leyes penales \nfederales no tributarias o a agencias federales \nencargadas de la ejecución de la ley o de inteligencia \npara combatir el terrorismo.\nSi usted no presenta una declaración, la ley \nestipula que usted puede estar sujeto a multas e \nintereses, y en algunos casos, podría estar sujeto a \nenjuiciamiento criminal. Si usted se niega a darnos la \ninformación solicitada o facilita información \nfraudulenta, la ley estipula que le podemos denegar \nexenciones, exclusiones, créditos, deducciones o \najustes reclamados en su declaración de impuestos. \nEsto podría aumentar su impuesto o retrasar \ncualquier reembolso. También puede estar sujeto a \nun interés adicional, multas por impuestos o \nenjuiciamiento criminal.\nPor favor mantenga este aviso en sus archivos. \nPudiera serle útil si le solicitamos otra información en \nel futuro. Si desea hacer alguna pregunta relacionada \ncon las reglas para presentar una declaración de \nimpuestos y divulgar información, por favor visite \nnuestro sitio web www.irs.gov/espanol, o llame o \nvisite cualquier ofcina del Servicio de Impuestos \nInternos (IRS, por sus siglas en inglés).\n"
] |
p4019.pdf
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0414 Publ 4019 (PDF)
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https://www.irs.gov/pub/irs-pdf/p4019.pdf
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[
"Third Party Authorization,\nLevels of Authority\nOgden Campus\nAccounts Management\nCAF Team\n1973 No. Rulon White Blvd.\nMail Stop 6737\nOgden, UT 84404 \nFax: (855) 214-7522\nMemphis Campus\nAccounts Management\nCAF Team\n5333 Getwell Road\nMail Stop 8423\nMemphis, TN 38118 \nFax: (855) 214-7519\nPhiladelphia Campus\nAccounts Management\nInternational CAF Team\n2970 Market Street\nMail Stop 3-E08.123\nPhiladelphia, PA 19104\nWithin U.S. Fax: (855) 772-3156 \nOutside U.S. Fax: (267) 941-1017\nCheckbox authority applies to Form 1040X, Amended U.S. Individual Income Tax Return, if filed within \nthe one-year period following the original due date of the related Form 1040 (with no extensions).\nPublication 4019 (Rev. 4-2014) Catalog Number 34253R Department of the Treasury - Internal Revenue Service www.irs.gov\n",
"THIRD PARTY AUTHORIZATIONS FOR RESOLVING A TAX ISSUE\nThere are various methods by which third parties may be granted authority to assist taxpayers in resolving tax issues. This chart identifies products available for addressing taxpayer needs and the means of \nsubmitting the authorization. These products all allow for the exchange of information with the IRS for purposes of resolving a tax issue, although the power of attorney is the only product that allows the third party to \nrepresent the taxpayer before the IRS.\n(1) Features\n(a) Power of Attorney (POA)\n(b) (c) (d) Tax Information Authorization (TIA)\n(e) (f) Limited Tax Information Authorization\n(2) Purpose\n(a) Allows third party to \nrepresent taxpayer before the \nIRS\n(b) (c) (d) (f) Allows a third party to receive or inspect written and/or oral tax account information, subject to product limitations\n(3) How is authority \ngranted\n(a) Form 2848, Power of \nAttorney and Declaration of \nRepresentative, Form 706, US \nEstate Tax Return, or written \nequivalent\n(b) Form 8821, Tax Information \nAuthorization, or written \nequivalent\n(c) Oral Tax Information Authorization\ngranted by taxpayer calling 1-800-829-1040 \nfor Individuals or 1-800-829-4933 for Business \nEntities\n(d) Third Party Designee or \nCheckbox Authorization is \ngranted directly on tax return \n(Forms in 1040 and 94X series, \nForms 720, 1041, 1120, 2290 \nand CT-1\n(e) Oral Disclosure Con-sent \ngranted by taxpayer calling \n1-800-829-1040, BMF Number \n1-800-829-4933, providing the \nname of the designee for \nspecific notice issue\n(f) Form 8655, Reporting Agent \nAuthorization\n(4) Who can exercise \nthis authority\n(a) Attorneys, CPAs, enrolled \nagents/actuaries, immediate \nfamily, full-time employees, \ngeneral partners, officer, \nunenrolled return preparer \n(limited practice) and certain \nothers\n(b) Any individual or a business, \ne.g. legal, accounting, tax \npreparation firm. Authority \nextends to employees of a \nbusiness appointee\n(c) Any individual or a business, e.g. legal, \naccounting, tax preparation firm. Authority \nextends to employees of a business appointee\n(d) Any individual or a \nbusiness, e.g. legal, \naccounting, tax preparation \nfirm. Authority extends to \nemployees of a business \nappointee\n(e) Any individual\n(f) Companies (Reporting Agents, \nbatch and bulk filers) approved \nunder Revenue Procedure \n2007-38 and 96-18. Authority \nextends to employees of agent\n(5) Entitled to written \nand oral information\n(a) Yes\n(b) Yes\n(c) Yes\n(d) Yes\n(e) No. Oral information only.\n(f) Yes, but only on returns filed \nand payments made by the agent\n(6) Can receive \ncopies of notice and \ncorrespondence\n(a) Yes. Taxpayer must check \nbox on Line 2 of Form 2848 for \nrepresentative to receive copies \nof systems’ generated notices \nand correspondence.\n(b) Yes. Taxpayer must check \nbox for appointee to receive \ncopies of systems’ generated \nnotices and correspondence.\n(c) Yes, if the taxpayer makes known at time \nof establishing OTIA that the appointee should \nreceive copies of notices and \ncommunications. Note: Unless the OTIA \nrecorded on the CAF at the taxpayer’s \nrequest, an appointee established through an \nOTIA will not receive copies of systems’ \ngenerated notices and communications.\n(d) No\n(e) No\n(f) Yes. If taxpayer checks the \nappropriate blocks on Form 8655\n(7) Submission and \nprocessing time\n(a) CAF receipts are processed \nfirst in first out (FIFO) within 5 \nbusiness days. \n(b) CAF receipts are processed \nfirst in first out (FIFO) within 5 \nbusiness days. \n(c) Submitted telephonically and recorded \nimmediately on tax module. If OTIA is to be \nrecorded on the CAF at the taxpayer’s \nrequest, the OTIA is processed first in first out \n(FIFO) within 5 business days.\n(d) Up to 3 weeks to record a \ndesignation made on an e-filed \ntax return on the tax module. \nProcessing time is 4-6 for \npaper returns.\n(e) Submitted telephonically \nand recorded immediately on \ntax module.\n(f) Submitted by mail or fax. \nProcessing time is 10 to 30 days.\n(8) Where is record \nmaintained and how is \nit retrieved?\n(a) Recorded on CAF. Available \non Master File and IDRS CFINK\n(b) Recorded on CAF.Available \non Master File and IDRS CFINK\n(c) Recorded on CAF. Available on Master \nFile and IDRS CFINK\n(d) Recorded on tax module \nAvailable on Master File IDRS \nTXMOD/IMFOLR and \nBMFOLR\n(e) Recorded on tax module \nAvailable on Master File IDRS \nTXMOD\n(f) Recorded on Reporting \nAgents File (RAF) Available on \nMaster File IDRS RFINK\n(9) Must have CAF/\nRAF number\n(a) No. If CAF # not already \nestablished, one will be issued \nwith first recorded submission\n(b) No. If CAF # not already \nestablished, one will be issued \nwith first recorded submission\n(c) No. If CAF # not already established, one \nwill be issued with first recorded submission\n(d) No. Must have shared \nsecret PIN, recorded directly \non account\n(e) No. Only name of \nauthorized individual recorded \ndirectly on account\n(f) No. Reported on RAF under \nRA’s EIN.\n(10) Expiration of \nauthority\n(a) Taxpayer revokes or \nrepresentative withdraws. New \nPOA supersedes existing POA \nunless otherwise specified on \nForm 2848, Line 6. May co-exist \nwith a TIA\n(b) Taxpayer revokes or \nappointee withdraws. New TIA \nsupersedes existing TIA unless \notherwise specified on Form \n8821, Line 6. May co-exist with \na POA\n(c) Taxpayer revokes or appointee withdraws. \nNew TIA supersedes existing TIA unless \notherwise specified. May co-exist with a POA\n(d) Checkbox authority will \nexpire one year from the due \ndate of the return regardless of \nany extension dates. \nCheckbox authority may co-\nexist with a POA\n(e) Authority coincides with the \nresolution of the specific notice \nissue from which the \nauthorization arose. May co-\nexist with a POA\n(f) Taxpayer revokes or agent \nwithdraws. New Form 8655 may \ncoexist with existing Form 8655 \nbut only for non- overlapping \nperiods covered by authorization. \nMay co- exist with a POA or TIA\n"
] |
p4991.pdf
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0214 Publ 4991 (PDF)
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https://www.irs.gov/pub/irs-pdf/p4991.pdf
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[
"Most tax-exempt organizations other than churches and \ncertain church-related organizations are required to file \nan annual information return or notice with the IRS.\nOrganizations that do not file for three consecutive years \nautomatically lose their tax-exempt status. An automatic \nrevocation is effective on the original filing due date of the \nthird annual return or notice.\nThe List of Automatically Revoked \nOrganizations is Posted on the IRS Website\nThe IRS publishes on its website the list of organizations \nwhose tax-exempt status was automatically revoked \nbecause of failure to file a required Form 990, 990-\nEZ, 990-PF or Form 990-N (e-Postcard) for three \nconsecutive years.\nThe list (the Revocation List) gives the name, employer \nidentification number (EIN), organization type, last \nknown address the organization provided to the IRS, \neffective date of revocation and the date the organization \nwas added to the list. IRS updates the Revocation List \nmonthly. The IRS also sends a letter (CP-120A) to each \norganization, at its last known address, stating that its \nexempt status has been automatically revoked because \nit has not filed a required annual return or notice for \nthree consecutive years.\nReinstating Tax-Exempt Status\nAn automatically revoked organization must apply to \nhave its status reinstated, even if the organization was \nnot originally required to file an application for exemption. \nIn Revenue Procedure 2014-11, the IRS explains the four \nways to do this:\nStreamlined Retroactive Reinstatement\nOrganizations that were eligible to file 990-EZ or 990-N \n(ePostcard) for the three years that caused their revocation \nmay have their tax-exempt status retroactively reinstated \nto the date of revocation if they:\n• \u0007\nHave not previously had their tax-exempt status \nautomatically revoked. \n• \u0007\nComplete and submit Form 1023 or Form 1024 with the \nappropriate user fee not later than 15 months after the \nlater of the date of the organization’s revocation letter \n(CP-120A), or the date the organization appeared on \nthe Revocation List on the IRS website. \nThese organizations should write on the top of the Form \n1023 or Form 1024, “Revenue Procedure 2014-11, \nStreamlined Retroactive Reinstatement,” and mail the \napplication and user fee to:\nInternal Revenue Service\nP.O. Box 12192\nCovington, KY 41012-0192\nThe Service will not impose the Section 6652(c) penalty \nfor failure to file annual returns for the three consecutive \ntaxable years that caused the organization to be \nrevoked if the organization is retroactively reinstated \nunder this procedure and files properly completed \nand executed paper Forms 990-EZ for all such taxable \nyears. (For any year for which the organization was \neligible to file a Form 990-N, the organization is not \nrequired to file a prior year Form 990-N or Form 990-\nEZ to avoid penalties.) The organization should write \n“Retroactive Reinstatement” on the Forms 990-EZ and \nmail them to:\nDepartment of the Treasury\nInternal Revenue Service\nOgden, UT 84201-0027\nRetroactive Reinstatement Process (Within 15 Months)\nOrganizations that cannot use the Streamlined Retroactive \nReinstatement Process (such as those required to file \nForm 990 or Form 990-PF for any of the three years that \ncaused revocation, or those that were previously auto-\nrevoked) may have their tax-exempt status retroactively \nreinstated to the date of revocation if they:\n• \u0007\nComplete and submit Form 1023 or Form 1024 with the \nappropriate user fee not later than 15 months after the \nlater of the date of the organization’s revocation letter \n(CP-120A), or the date the organization appeared on the \nRevocation List on the IRS website. \n• \u0007\nInclude with the application a statement establishing \nthat the organization had reasonable cause for its \nfailure to file a required annual return for at least one \nof the three consecutive years for which it failed to file. \n• \u0007\nInclude with the application a statement confirming that \nit has filed required returns for those three years and for \nany other taxable years after that period and before the \npost-mark date of the application for which required \nreturns were due and not filed. \nPublication 4991 (Rev. 2-2014) Catalog Number 59459X Department of the Treasury Internal Revenue Service www.irs.gov\nAutomatic Revocation of \nTax-Exempt Status\n",
"• \u0007\nFile properly completed and executed paper annual \nreturns for the three consecutive years that caused the \nrevocation and for any following years. The organization \nshould write “Retroactive Reinstatement” on these \nreturns and mail them to: \nDepartment of the Treasury\nInternal Revenue Service Center\nOgden, UT 84201-0027\nThese organizations should write on the top of the Form \n1023 or Form 1024, “Revenue Procedure 2014-11, \nRetroactive Reinstatement,” and mail the application and \nuser fee to:\nInternal Revenue Service\nP.O. Box 12192\nCovington, KY 41012-0192\nIf the organization is retroactively reinstated under this \nprocedure, the IRS will not impose the Section 6652(c) \npenalty for failure to file annual returns for the three \nconsecutive taxable years that caused the organization \nto be revoked. \nRetroactive Reinstatement (After 15 Months)\nOrganizations that apply for reinstatement more than 15 \nmonths after the later of the date of the organization’s \nrevocation letter (CP-120A), or the date the organization \nappeared on the Revocation List on the IRS website may \nhave their tax-exempt status retroactively reinstated to \nthe date of revocation if they:\n• \u0007\nSatisfy all of the requirements described under the \n“Retroactive \nReinstatement \n(Within \n15 \nMonths)” \nprocedure EXCEPT that the reasonable cause statement \nthe organization includes with its application must \nestablish reasonable cause for its failure to file a required \nannual return for all three consecutive years for which it \nfailed to file. \nIf the organization is retroactively reinstated under this \nprocedure, the IRS will not impose the Section 6652(c) \npenalty for failure to file annual returns for the three \nconsecutive taxable years that caused the organization \nto be revoked.\nPost-Mark Date Reinstatement\nOrganizations may apply for reinstatement effective from \nthe post-mark date of their application if they:\n• \u0007\nComplete and submit Form 1023 or Form 1024 with the \nappropriate user fee. \nThese organizations should write on the top of the Form \n1023 or Form 1024, “Revenue Procedure 2014-11, \nReinstatement Post-Mark Date,” and mail the application \nand user fee to:\nInternal Revenue Service\nP.O. Box 12192\nCovington, KY 41012-0192\nThe Effect of Losing Tax-Exempt Status\nIf an organization’s tax-exempt status is automatically \nrevoked, it is no longer exempt from federal income \ntax. Consequently, it may be required to file one of the \nfollowing federal income tax returns and pay applicable \nincome taxes:\nForm 1120, U.S. Corporation Income Tax Return, due \nby the 15th day of the 3rd month after the end of the \norganization’s tax year, or Form 1041, U.S. Income Tax \nReturn for Estates and Trusts, due by the 15th day of the \n4th month after the end of your organization’s tax year.\nA Section 501(c)(3) organization that is automatically \nrevoked is not eligible to receive tax-deductible charitable \ncontributions and will be removed from the cumulative \nlist of tax-exempt organizations eligible to receive tax-\ndeductible charitable contributions, Exempt Organization \nSelect Check (Pub 78 database).\nDonors can deduct contributions made before an \norganization’s name appears on the Automatic Revocation \nList. Tax-deductible contributions may be made to an \norganization whose tax-exempt status is subsequently \nreinstated. \nState and local laws may affect an organization that loses \nits tax-exempt status as well.\nFor More Information\nCharities and Nonprofits web page www.IRS.gov/eo\nAutomatic Revocation of Exemption List \nThe Auto-Revocation List may be viewed and searched \non EO Select Check.\nFrequently Asked Questions - Automatic Revocation of \nTax-Exempt Status for Failure to File Annual Return or \nNotice\nLife Cycle: Explains how to establish and maintain an \nexempt organization. Select the “Life Cycle” link at \nwww.IRS.gov/eo\nToll-free Customer Account Services\nCall 877-829-5500\nPublication 4991 (Rev. 2-2014) Catalog Number 59459X Department of the Treasury Internal Revenue Service www.irs.gov\n"
] |
p4465asp.pdf
|
0314 Publ 4465-A (SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/p4465asp.pdf
|
[
"Cómo Proteger\nLa Información \nTributaria Federal Para \nContactos del IRS\nIRS Cybersecurity es responsable de revisar la manera en que los contratistas cumplen con los requisitos de protección \nde información. Esto se hace en conjunto con los Servicios Compartidos a Través de la Agencia (AWSS por sus siglas en \ninglés).\nRepresentante del Oficial de Contratistas del IRS (COR por sus siglas en inglés) es el coordinador principal \nresponsable del desempeño del contrato y de la comunicación con la contratista. \nDivulgación del IRS provee guía técnica y auxilio para preguntas y problemas relativos a la Divulgación de información. \nPublication 4465-A(SP) (Rev. 3-2014) Catalog Number 50372D Department of Treasury Internal Revenue Service www.irs.gov \nCONTRATISTAS\nEsta guía le provee información básica acerca de:\n+\n+\nLas disposiciones principales de la sección 6103, sobre la protección y \ndivulgación de información confidencial sobre las declaraciones del impuesto \nfederal y la información de las mismas \n+\n+\nLas leyes que aplican a la información protegida por la Ley de Privacidad\n+\n+\nLas leyes que aplican a información Protegida pero No Clasificada (SBU por \nsus siglas en inglés) \n+\n+\nCastigos criminales y civiles por acceder o divulgar la información de \ndeclaraciones del impuesto federal, o las declaraciones mismas sin \nautorización\nGuiá\nCuando se trata de información tributaria confidencial, recuerde:\n“Si tiene una duda, ¡Averigüe\nantes que divulgue!”\n",
"Es sumamente importante que se salvaguarde la información tributaria \nfederal y la demás información protegida por la Ley de Privacidad. Como \ncontratista con el Servicio de Impuestos Internos, usted y sus empleados \nson responsables de proteger las declaraciones del impuesto federal, y \ntoda la información referente a ellas, además de cualquier otra información \nencomendada a usted que esté protegida por la Ley de Privacidad. La \nSección 6103 del Código de Impuestos Internos establece los requisitos \nsobre cómo proteger y divulgar la información acerca de las declaraciones \nconfidenciales de impuestos; y la Ley de Privacidad del 1974 aplica a los \nrequisitos de proteger la información personal y otra información protegida \npor la misma. \nLa ley prohíbe que los contratistas divulguen las declaraciones del impuesto \nfederal, o información referente a las mismas a menos que un estatuto \nestatal lo permita. Usted y las personas que trabajan para usted están \nobligados a entender y aplicar las disposiciones de la ley relacionadas al \ndesempeño de su trabajo. \nUna Regla General – ¡La información \ntributaria es confidencial!\nLa Sección 6103 designa cada declaración de impuestos y la información de \nla misma como confidenciales. Ninguna persona puede acceder ni divulgar la \ninformación de una declaración ni la declaración misma, a menos que tenga \nautorización específica del Código de Impuestos Internos (IRC) para así hacerlo. \nUna excepción estatutaria, de la Sección 6103 (n), permite que el IRS divulgue \nlas declaraciones del impuesto federal e información de ellas a los contratistas \ny sus empleados, para propósitos tributarios administrativos. \nDefiniciones que Debe Saber:\nDeclaración – Una declaración es cualquier declaración de impuestos o su \ninformación, declaración del impuesto estimado o reclamación de un reembolso \n(incluyendo sus enmiendas, suplementos, anexos pertinentes, documentos \nadjuntos o listas) requerida por la ley y presentada al IRS. Ejemplos de las \ndeclaraciones incluyen los Formularios 1040, 941, 1099, 1120 y W-2. Estas \nInformación de la declaración – La definición de información de la \ndeclaración es bien amplia, y abarca, pero no se limita a:\n+\n+\nCualquier información, aparte de la declaración misma, que el IRS \nobtuvo de cualquier fuente, o averiguó a través de cualquier proceso, \nque se relaciona con la responsabilidad de la persona de pagar \nimpuestos, multas o intereses conforme al IRC. \n+\n+\nEl nombre, la dirección, número de identificación (Seguro Social o \nnúmero de identificación del empleador) del contribuyente, y cualquier \notra información de la declaración, inclusive de los nombres de \ndependientes o ubicación del negocio.\n+\n+\nInformación recaudada por el IRS referente a asuntos tributarios de \ncualquiera persona, aunque no incluya información que identifique al \ncontribuyente, como su nombre, dirección y número de identificación. \nSencillamente con quitar la información de identificación no significa \nque la información deja de ser información de la declaración. Sigue \nsiendo información de la declaración y debe ser protegida de acceso o \ndivulgación no autorizada. \n+\n+\nInformación acerca de transcripciones de cuentas.\n+\n+\nEl hecho que una declaración fue presentada, sujeto de una auditoría, \ninvestigación o acción de cobro, o \nDisposiciones importantes de la ley, de las \nregulaciones federales, y de su contrato: \nSección 6103(a) – prohíbe la divulgación de las declaraciones y de información \nde declaraciones a menos que la ley así lo permita. Esta disposición les aplica a \nlos contratistas en específico. \nSección 6103(b) – Define los términos utilizados en el estatuto, tales como \ndeclaración, información de la declaración y administración tributaria. \nSección 6103(n) – Permite la divulgación de declaraciones y de información \nde declaraciones a los contratistas y sus empleados, para propósitos tributarios \nadministrativos (la Regulación del Tesoro Sección 301.6103(n)-1 establece \nciertas limitaciones a la información divulgada a contratistas).\nSección 6103(p)(4) – establece los requisitos de cómo proteger las \ndeclaraciones del impuesto federal y la información de las mismas.\nSección 7513 – Autoriza a los contratistas a procesar y reproducir fotografías, \npelículas y documentos para propósitos tributarios (la Regulación del Tesoro \nSección 301.7513-1 establece los requisitos de cómo proteger las fotografías \ny películas para los contratistas que trabajan con ellos)\nSu contrato con el IRS también contiene información acerca de sus \nresponsabilidades legales de proteger información. \nMultas \nEs un delito para un contratista o el empleado del mismo divulgar, a sabiendas \ny a propósito, las declaraciones del impuesto federal o la información de las \nmismas a una persona que carece de la autorización para recibir o acceder a \nlos datos tributarios, a menos que tenga una necesidad de hacerlo como parte \nde su trabajo (también conocido como UNAX).\nMultas Criminales:\nConforme la Sección 7213, la divulgación intencional y no autorizada de \ndeclaraciones de impuesto o la información de las mismas por parte de un \ncontratista o ex contratista es un delito. La pena máxima es una multa de \n$5,000 y/o hasta cinco años de cárcel, más los gastos de corte. \n Conforme a la Sección 7213 A, acceso intencional no autorizado o inspección \n(UNAX) de documentos de contribuyentes por un contratista o empleado de un \ncontratista es considerado como un delito menor. La penalidad será una multa \nde hasta $1000 y/o un año en prisión.\nMultas Civiles:\nConforme la Sección 7431, cualquier contribuyente cuya declaración de \nimpuestos o la información de la misma fue divulgada o revisada por un \ncontratista o empleado de un contratista a propósito, o por su negligencia, así en \nviolación de la Sección 6103, puede entablar una demanda civil para recuperar \ndaños. \nLas multas pueden incluir\n+\n+\nDaños de $1,000 por cada instancia de divulgar o permitir acceso no \nautorizado, o los daños reales sufridos por el contribuyente, el que sea mayor \n+\n+\nDaños punitivos (cuando hubo negligencia intencional o negligencia grave)\n+\n+\nCostos de la demanda (que pueden incluir honorarios de abogados)\nConforme la Sección 7431, a la persona que haya divulgado la declaración o \ninformación de la declaración por mal interpretación de las disposiciones de la \nsección 6103, hecho en buena fe, no se le considera responsable. \nOtros Datos del IRS Protegidos\nAlgunos contratistas pueden tener acceso a registros del IRS que son protegidos \npor la Ley de Privacidad, o que se considera información Protegida pero No \nClasificada (SBU por sus siglas en inglés). La información SBU incluye aquella \nque antes era considerada para Uso Oficial Exclusivo (OUO por sus siglas en \ninglés), o Uso Oficial Limitado Exclusivo. Nuevas normas de clasificación están \npropuestas para el futuro, y cambiarán el nombre de la SBU a Información No \nClasificada Controlada (CUI por sus siglas en inglés). Independiente del nombre \nque lleva, la información SBU es protegida por la ley. La divulgación de la misma \nsin autorización puede exponerle a multas, conforme el Título 18 del Código de \nlos Estados Unidos, en las Secciones 641 y 3571. \nNo se puede divulgar información protegida por la Ley de Privacidad sin la \nautoridad para hacerlo. La disposición del Título 5 del Código del Estados Unidos \nen la Sección 552a(b)(3), para el uso rutinario de información protegida por la \nLey de Privacidad, permite su divulgación a contratistas. El aviso publicado en \nel sistema de registros deberá incluir lenguaje que estipula que los contratistas \npueden acceder a la información contenida en ese sistema. Las multas criminales \npor violar la Ley de Privacidad se encuentran en el Título 5 del Código de los \nEstados Unidos, Sección 552a(i).\nRecursos Auxiliares para Salvaguardar la \nInformación Tributaria\nLa Publicación 4812 – se considera “la guía para legos” al NIST SP 800-53, \ncuando se accede desde fuera de las instalaciones controladas por el IRS o \nfuera del control directo del Servicio de Impuestos Internos, a la información del \nIRS o a los registros de información del IRS como parte de los servicios que el \nIRS les contrató para hacer. \nManual de Servicios Internos, Sección 10.8.1 – Políticas y Guías para la \nseguridad de Tecnología de Informática – aplica cuando contratistas acceden a \nla información del IRS y registros de información del IRS dentro de instalaciones \ncontroladas por el gobierno. \nEvite la divulgación no autorizada – Sigua \nestas recomendaciones:\nProteja la información tributaria confidencial y los registros protegidos por la Ley \nde Privacidad, y cualquier información SBU, independiente del formato que tenga, \nsea electrónico (disco duro, casete, disco u otro aparato de almacenamiento \nportátil), grabado (video o audio), en bases de datos o en papel:\n+\n+\nSiga siempre las guías apropiadas de seguridad física e informática. \n+\n+\nCumpla con la política del escritorio limpio. No deje información \nconfidencial encima de su escritorio ni en las pantallas de su computadora \ncuando usted esté fuera. \n+\n+\nProteja sus computadoras portátiles y otros medios portátiles que \ncontengan información tributaria protegida. \n+\n+\nNo hable de asuntos confidenciales del impuesto federal con los demás, a \nmenos que necesiten la información para propósitos de la administración \nde impuestos. No hable de asuntos confidenciales durante sus \ndescansos, mientras toma café, en la casa o fuera de la oficina. \n+\n+\nPrepare toda su correspondencia con atención. Asegúrese de borrar \ntoda la información de cualquier carta modelo que use. Revise toda su \ncorrespondencia antes de enviarla, para asegurar que el texto y todos \nlos documentos adjuntos (informes, anexos y otros documentos) están \ndestinados a la persona correcta. \n+\n+\nEncierre en dos sobres la información tributaria confidencial que desea \nenviar por correo, o tome otra precaución para prevenir que nadie vea \nel contenido. \n+\n+\nAl enviar la información por correo o entregarla a mano, utilice un acuse \nde recibo para verificar que los materiales confidenciales se recibieron \ncorrectamente. \n+\n+\nDisponga de la información tributaria confidencial de forma apropiada, \nesté en papel o medios electrónicos. \nInforme de errores\n+\n+\nInforme al Oficial de Contratistas del IRS, o al Gerente del Proyecto del \nIRS de cualquier divulgación por error o accidente de la información \ntributaria inmediatamente. Dele informe de lo ocurrido dentro de una \nhora de darse cuenta del error. \n+\n+\nInforme a la oficina local de TIGTA inmediatamente de cualquier \ndivulgación intencional no autorizada, o llame a la línea de ayuda de \nTIGTA, al 1-800-366-4484. \n"
] |
f945x.pdf
|
0214 Form 945-X (PDF)
|
https://www.irs.gov/pub/irs-pdf/f945x.pdf
|
[
"Form 945-X:\n(Rev. February 2014)\nAdjusted Annual Return of Withheld Federal Income Tax or Claim for Refund\nDepartment of the Treasury — Internal Revenue Service\nOMB No. 1545-1430\nEmployer identification number \n(EIN)\n—\nName (not your trade name)\nTrade name (if any)\nAddress\nNumber Street Suite or room number\nCity\nState\nZIP code\nForeign country name\nForeign province/county\nForeign postal code\nReturn You Are Correcting ...\nEnter the calendar year of the return \nyou are correcting: \n(YYYY) \nEnter the date you discovered errors:\n(MM / DD / YYYY) \nRead the separate instructions before you complete this form. Use this form to correct administrative errors made on Form 945, \nAnnual Return of Withheld Federal Income Tax. Use a separate Form 945-X for each year that needs correction. Type or print within \nthe boxes. You MUST complete both pages. Do not attach this form to Form 945. \n Select ONLY one process. \nPart 1:\n1.\nAdjusted return of withheld federal income tax. Check this box if you underreported amounts. Also check this box if you overreported \namounts and you would like to use the adjustment process to correct the errors. You must check this box if you are correcting both \nunderreported and overreported amounts on this form. The amount shown on line 5, if less than zero, may only be applied as a credit to \nyour Form 945 for the tax period in which you are filing this form. \n2.\nClaim. Check this box if you overreported amounts only and you would like to use the claim process to ask for a refund or abatement of \nthe amount shown on line 5. Do not check this box if you are correcting ANY underreported amounts on this form. \nEnter the corrections for the calendar year you are correcting. If any line does not apply, leave it blank. \nPart 2:\nColumn 1 \nTotal corrected \namount \n(for ALL payees) \n— \nColumn 2 \nAmount originally \nreported or as \npreviously corrected \n(for ALL payees) \n= \nColumn 3 \nDifference \n(If this amount is a \nnegative number, use \na minus sign.) \n3.\nFederal income tax withheld \n(Form 945, line 1) \n.\n.\n.\n \n. \n— \n. \n= \n. \n4.\nBackup withholding \n(Form 945, line 2) \n.\n.\n.\n. \n— \n. \n= \n. \n5. Total. Combine the amounts in lines 3 and 4 of Column 3 .\n.\n.\n.\n.\n.\n.\n.\n. \nIf line 5 is less than zero: \n• If you checked line 1, this is the amount you want applied as a credit to your Form 945 for the tax period in which you are \n filing this form. \n• If you checked line 2, this is the amount you want refunded or abated. \nIf line 5 is more than zero, this is the amount you owe. Pay this amount when you file this return. For information on how to \npay, see Amount You Owe in the instructions for line 5. \nNext ■▶\nFor Paperwork Reduction Act Notice, see the separate instructions.\nCat. No. 20336X\nForm 945-X (Rev. 2-2014) \nIRS.gov/form945x\n",
"Name (not your trade name) \nEmployer identification number (EIN) \nCalendar Year (YYYY) \nExplain your corrections for the calendar year you are correcting. \nPart 3:\n6.\nCheck here if any corrections you entered on a line include both underreported and overreported amounts. \nExplain both your underreported and overreported amounts on line 7. \n7.\nYou must give us a detailed explanation of how you determined your corrections. See the separate instructions. \nSign here. You must complete both pages of this form and sign it. \nPart 4:\nUnder penalties of perjury, I declare that I have filed an original Form 945 and that I have examined this adjusted return or claim and any schedules or \nstatements that are attached, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than \ntaxpayer) is based on all information of which preparer has any knowledge. \n✗\nSign your \nname here\nDate\nPrint your \nname here\nPrint your \ntitle here\nBest daytime phone\nPaid Preparer Use Only \nCheck if you are self-employed \n.\n.\n.\n.\n.\n.\n.\n.\nPreparer’s name \nPreparer’s signature \nFirm’s name (or yours if \nself-employed) \nAddress \nCity \nState \nPTIN \nDate \nEIN \nPhone \nZIP code \nPage 2\nForm 945-X (Rev. 2-2014)\n"
] |
i945x.pdf
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0214 Inst 945-X (PDF)
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https://www.irs.gov/pub/irs-pdf/i945x.pdf
|
[
"Instructions for Form 945-X\n(February 2014)\nAdjusted Annual Return of Withheld Federal Income Tax or Claim for Refund\nDepartment of the Treasury\nInternal Revenue Service\nSection references are to the Internal Revenue Code \nunless otherwise noted.\nFuture Developments\nFor the latest information about developments related to \nForm 945-X and its instructions, such as legislation \nenacted after they were published, go to www.irs.gov/form \n945x.\nGeneral Instructions:\nUnderstanding Form 945-X\nWhat Is the Purpose of Form 945-X?\nUse Form 945-X to correct administrative errors only on a \npreviously filed Form 945. An administrative error occurs if \nthe federal income tax (including backup withholding) you \nreported on Form 945 is not the amount you actually \nwithheld from payees. For example, if the total federal \nincome tax you actually withheld was incorrectly reported \non Form 945 due to a mathematical or transposition error, \nthis would be an administrative error.\nUse Form 843, Claim for Refund and Request for \nAbatement, to request a refund or abatement of assessed \ninterest or penalties. Do not request abatement of \nassessed interest or penalties on Form 945 or Form \n945-X.\nWe use the terms “correct” and “corrections” on \nForm 945-X and in these instructions to include \ninterest-free adjustments under sections 6205 \nand 6413 and claims for refund and abatement under \nsections 6402, 6414, and 6404. See Rev. Rul. 2009-39 for \nexamples of how the interest-free adjustment and claim \nfor refund rules apply in 10 different situations. You can \nfind Rev. Rul. 2009-39, 2009–52 I.R.B. 951, at \nwww.irs.gov/irb/2009-52_IRB/ar14.html.\nWhen you discover an error on a previously filed Form \n945, you must:\nCorrect that error using Form 945-X,\nFile a separate Form 945-X for each Form 945 that you \nare correcting, and\nFile Form 945-X separately. Do not file Form 945-X \nwith Form 945.\nReport the correction of underreported and \noverreported amounts for the same year on a single Form \n945-X, unless you are requesting a refund or abatement. If \nyou are requesting a refund or abatement, file one Form \n945-X correcting the underreported amounts and a \nsecond Form 945-X correcting the overreported amounts.\nYou will use the adjustment process if you \nunderreported tax and are making a payment, or if you \noverreported tax and will be applying the credit to Form \n945 for the period during which you file Form 945-X. \nTIP\nHowever, see the Caution under Is There a Deadline for \nFiling Form 945-X, later, if you are correcting overreported \namounts during the last 90 days of a period of limitations. \nYou will use the claim process if you overreported tax and \nare requesting a refund or abatement of the overreported \namount. Follow the chart on page 8 for help in choosing \nwhether to use the adjustment process or the claim \nprocess.\nBe sure to give us a detailed explanation on line 7 for \neach correction that you show on Form 945-X.\nDo not use Form 945-X to correct Forms CT-1, \n941, 943, or 944. Instead, use the “X” form that \ncorresponds to those forms (Form CT-1 X, 941-X, \n943-X, or 944-X). If you did not file a Form 945 for one or \nmore years, do not use Form 945-X. Instead, file Form \n945 for each of those years.\nWhere Can You Get Help?\nFor help filing Form 945-X or for questions about withheld \nfederal income tax and tax corrections, you can:\nCall the IRS Business and Specialty Tax Line toll free at \n1-800-829-4933 or 1-800-829-4059 (TDD/TTY for \npersons who are deaf, hard of hearing, or have a speech \ndisability) Monday–Friday from 7:00 a.m.– 7:00 p.m. local \ntime (Alaska and Hawaii follow Pacific time),\nVisit the IRS website at www.irs.gov/businesses and \nclick on the Employment Taxes link under Businesses \nTopics, or\nSee Pub. 15 (Circular E), Employer's Tax Guide.\nSee also How Can You Order Forms, Instructions, and \nPublications from the IRS, later.\nWhen Should You File Form 945-X?\nFile Form 945-X when you discover an administrative \nerror on a previously filed Form 945.\nHowever, if your only errors on Form 945 relate to \nfederal tax liabilities reported on your Monthly Summary of \nFederal Tax Liability on Form 945 or on Form 945-A, \nAnnual Record of Federal Tax Liability, do not file Form \n945-X. For more information about correcting federal tax \nliabilities reported on your Monthly Summary of Federal \nTax Liability on Form 945 or on Form 945-A, see the Form \n945-A instructions.\nDue dates. The due date for filing Form 945-X depends \non when you discover an error and if you underreported or \noverreported tax. If you underreported tax, see \nUnderreported tax later. For overreported amounts, you \nmay choose to either make an interest-free adjustment or \nfile a claim for refund or abatement. If you are correcting \noverreported amounts, see Overreported tax—adjustment \nprocess and Overreported tax—claim process, later.\nIf any due date falls on a Saturday, Sunday, or legal \nholiday, you may file Form 945-X on the next business \nCAUTION\n!\nFeb 19, 2014\nCat. No. 20337I\n",
"day. If we receive Form 945-X after the due date, we will \ntreat Form 945-X as filed on time if the envelope \ncontaining Form 945-X is properly addressed, contains \nsufficient postage, and is postmarked by the U.S. Postal \nService on or before the due date, or sent by an \nIRS-designated private delivery service on or before the \ndue date. If you do not follow these guidelines, we will \nconsider Form 945-X filed when it is actually received. \nSee Pub. 15 (Circular E) for more information on legal \nholidays and IRS-designated private delivery services.\nUnderreported tax. If you are correcting underreported \ntax, you must file Form 945-X by the due date of the return \nfor the return period in which you discovered the error \n(January 31 of the following year) and pay the amount \nyou owe by the time you file. Doing so will generally \nensure that your correction is interest free and not subject \nto failure-to-pay or failure-to-deposit penalties. See What \nAbout Penalties and Interest, later.\nIf Form 945-X is filed late (after the due date of the \nreturn for the return period in which you discovered the \nerror), you must attach an amended Form 945-A. \nOtherwise, the IRS may assess an “averaged” \nfailure-to-deposit penalty. The total tax reported on line M \nof Form 945-A must match the corrected tax (Form 945, \nline 3, combined with any correction reported on Form \n945-X, line 5) for the year, less any previous abatements \nand interest-free tax assessments.\nExample—You owe tax. On February 6, 2013, you \ndiscovered that you underreported $10,000 of federal \nincome tax actually withheld on your 2012 Form 945 due \nto a mathematical error. File Form 945-X and pay the \namount you owe by January 31, 2014, because you \ndiscovered the error in 2013 and January 31, 2014, is the \ndue date for that year. If you file Form 945-X before \nJanuary 31, 2014, pay the amount you owe when you file.\nOverreported tax—adjustment process. If you \noverreported tax and choose to apply the credit to Form \n945, file an adjusted return on Form 945-X soon after you \ndiscovered the error but more than 90 days before the \nperiod of limitations on the credit or refund for correcting \nthe Form 945 expires. See Is There a Deadline for Filing \nForm 945-X, later.\nExample—You want your credit applied to Form \n945. On May 1, 2014, you discover that you overreported \n$9,000 in backup withholding tax on your 2013 Form 945 \ndue to a transposition error. You file Form 945-X on June \n2, 2014. The IRS treats your credit as a tax deposit made \non January 1, 2014. When you file your 2014 Form 945, \ninclude the amount from Form 945-X, line 5, on line 4 \n(“Total deposits”) of your 2014 Form 945.\nOverreported tax—claim process. If you overreported \ntax, you may choose to file a claim for refund or \nabatement on Form 945-X any time before the period of \nlimitations on the credit or refund expires. If you also need \nto correct any underreported amounts, you must file \nanother Form 945-X reporting only corrections to the \nunderreported amounts. See Is There a Deadline for Filing \nForm 945-X, later.\nIs There a Deadline for Filing Form \n945-X?\nGenerally, you may correct overreported taxes on a \npreviously filed Form 945 if you file Form 945-X within 3 \nyears of the date Form 945 was filed or 2 years from the \ndate you paid the tax reported on Form 945, whichever is \nlater. You may correct underreported taxes on a \npreviously filed Form 945 if you file Form 945-X within 3 \nyears of the date the Form 945 was filed. We call each of \nthese time frames a “period of limitations.” For purposes \nof the period of limitations, Form 945 is considered filed \non April 15 of the succeeding calendar year if filed before \nthat date.\nExample. You filed your 2010 Form 945 on January \n27, 2011, and payments were timely made. The IRS treats \nthe return as if it were filed on April 15, 2011. On January \n22, 2014, you discovered that you overreported federal \nincome tax withheld on that form by $10,000 due to a \nmathematical error. To correct the error, you must file \nForm 945-X by April 15, 2014, which is the end of the \nperiod of limitations, and use the claim process.\nIf you file Form 945-X to correct overreported \namounts in the last 90 days of a period of \nlimitations (after January 15, 2014, in the \nexample above), you must use the claim process. You \ncannot use the adjustment process. If you are also \ncorrecting underreported amounts, you must file another \nForm 945-X to correct the underreported amounts using \nthe adjustment process and pay any tax due.\nWhere Should You File Form 945-X?\nSend your completed Form 945-X to the Internal Revenue \nService Center shown below.\nIF you are in . . . \nTHEN use this address . . . \nSpecial filing addresses for exempt \norganizations; federal, state, and local \ngovernmental entities; and Indian tribal \ngovernmental entities; regardless of \nlocation\nDepartment of the Treasury \nInternal Revenue Service \nOgden, UT 84201-0042\nConnecticut, Delaware, District of \nColumbia, Florida, Georgia, Illinois, \nIndiana, Kentucky, Maine, Maryland, \nMassachusetts, Michigan, New \nHampshire, New Jersey, New York, \nNorth Carolina, Ohio, Pennsylvania, \nRhode Island, South Carolina, \nTennessee, Vermont, Virginia, West \nVirginia, Wisconsin\nDepartment of the Treasury\nInternal Revenue Service \nCincinnati, OH 45999-0042\nAlabama, Alaska, Arizona, Arkansas, \nCalifornia, Colorado, Hawaii, Idaho, \nIowa, Kansas, Louisiana, Minnesota, \nMississippi, Missouri, Montana, \nNebraska, Nevada, New Mexico, \nNorth Dakota, Oklahoma, Oregon, \nSouth Dakota, Texas, Utah, \nWashington, Wyoming\nDepartment of the Treasury\nInternal Revenue Service \nOgden, UT 84201-0042\nNo legal residence or principal place of \nbusiness in any state\nInternal Revenue Service \nP.O. Box 409101 \nOgden, UT 84409\nCAUTION\n!\n-2-\nInstructions for Form 945-X (Rev. 2-2014)\n",
"How Should You Complete Form \n945-X?\nUse One Form 945-X for Each Year You Are \nCorrecting\nUse a separate Form 945-X for each Form 945 that you \nare correcting. For example, if you found errors on your \nForms 945 for 2012 and 2013, file one Form 945-X to \ncorrect the 2012 Form 945. File a second Form 945-X to \ncorrect the 2013 Form 945.\nEIN, Name, and Address\nEnter your EIN, name, and address in the spaces \nprovided. Also enter your name and EIN on the top of \npage 2 and on any attachments. If your address has \nchanged since you filed your Form 945, enter the \ncorrected information and the IRS will update your \naddress of record.\nReturn You Are Correcting\nIn the box at the top of page 1 of Form 945-X, enter the \ncalendar year of the Form 945 you are correcting. Enter \nthe calendar year on page 2. Be sure to write your name, \nEIN, Form 945-X, and calendar year on the top of any \nattachments.\nEnter the Date You Discovered Errors\nYou must enter the date you discovered errors. You \ndiscover an error when you have enough information to be \nable to correct it. If you are reporting several errors you \ndiscovered at different times, enter the earliest date you \ndiscovered an error here. Report any subsequent dates \nand related errors on line 7.\nMust You Make an Entry on Each Line?\nYou must provide all of the information requested at the \ntop of page 1 of Form 945-X. You must check one box \n(but not both) in Part 1. In Part 2, if any line does not \napply, leave it blank. Complete Parts 3 and 4 as \ninstructed.\nHow Should You Report Negative Amounts?\nForm 945-X uses negative numbers to show reductions in \ntax (credits) and positive numbers to show additional tax \n(amounts you owe).\nWhen reporting a negative amount in column 3, use a \nminus sign instead of parentheses. For example, enter \n“-10.59” instead of “(10.59).” However, if you are \ncompleting the return on your computer and your software \nonly allows you to use parentheses to report negative \namounts, you may use them.\nHow Should You Make Entries on Form 945-X?\nYou can help the IRS process your Form 945-X timely and \naccurately if you follow these guidelines.\nType or print your entries.\nUse Courier font (if possible) for all typed or \ncomputer-generated entries.\nOmit dollar signs. You may use commas and decimal \npoints, if desired. Enter dollar amounts to the left of any \npreprinted decimal point and cents to the right of it.\nAlways show an amount for cents. Do not round entries \nto whole dollars.\nComplete both pages and sign Form 945-X on page 2.\nStaple multiple sheets in the upper-left corner.\nWhat About Penalties and Interest?\nGenerally, your correction of an underreported amount will \nnot be subject to a failure-to-pay penalty, \nfailure-to-deposit penalty, or interest if you:\nFile on time (by the due date of Form 945 for the year in \nwhich you discover the error),\nPay the amount shown on line 5 by the time you file \nForm 945-X,\nEnter the date you discovered the error, and\nExplain in detail the grounds and facts relied on to \nsupport the correction.\nNo correction will be eligible for interest-free treatment \nif any of the following apply.\nThe amounts underreported relate to an issue that was \nraised in an examination of a prior period.\nYou knowingly underreported your tax liability.\nYou received a notice and demand for payment.\nIf you receive a notice about a penalty after you file this \nreturn, reply to the notice with an explanation and we will \ndetermine if you meet reasonable-cause criteria. Do not \nattach an explanation when you file your return.\nOverview of the Process\nThe process to correct a previously filed Form 945 or file a \nclaim for refund is outlined below.\nIf you underreported the tax. If you underreported \nthe tax actually withheld on a previously filed Form 945, \ncheck the box on line 1 and pay any additional amount \nyou owe by the time you file Form 945-X. For details on \nhow to make a payment, see the instructions for line 5, \nlater.\nExample—You underreported withheld income \ntaxes. On June 20, 2013, you discovered an error that \nresults in additional tax on your 2012 Form 945. File Form \n945-X by January 31, 2014, and pay the amount you owe \nby the time you file. See When Should You File Form \n945-X, earlier. Do not attach Form 945-X to your 2013 \nForm 945.\nIf you overreported the tax. If you overreported the \ntax actually withheld on a previously filed Form 945, you \nmay choose one of the following options.\nUse the adjustment process. Check the box on line 1 to \napply any credit (negative amount) from line 5 to Form \n945 for the year during which you file Form 945-X.\nUse the claim process. Check the box on line 2 to file a \nclaim on Form 945-X requesting a refund or abatement of \nthe amount shown on line 5.\nTo ensure that the IRS has enough time to \nprocess a credit for an overreporting \nadjustment in the year during which you file \nForm 945-X, you are encouraged to file Form 945-X \ncorrecting the overreported amount in the first 11 months \nof a year. For example, if you discover an overreported \namount in December, you may want to file Form 945-X \nduring the first 11 months of the next year. This should \nensure that the IRS will have enough time to process \nTIP\nInstructions for Form 945-X (Rev. 2-2014)\n-3-\n",
"Form 945-X so the credit will be posted before you file \nForm 945, thus avoiding an erroneous balance due notice \nfrom the IRS. See the example below.\nExample—You want your overreported tax applied \nas a credit to Form 945. On December 18, 2014, you \ndiscover you overreported your tax on your 2013 Form \n945 and want to choose the adjustment process. To allow \nthe IRS enough time to process the credit, you file Form \n945-X on January 2, 2015, and take the credit on your \n2015 Form 945.\nSpecific Instructions:\nPart 1: Select ONLY One Process\nBecause Form 945-X may be used to file either an \nadjusted return of withheld federal income tax or a claim \nfor refund or abatement, you must check one box on \neither line 1 or line 2. Do not check both boxes.\n1. Adjusted Return of Withheld Federal Income \nTax\nCheck the box on line 1 if you are correcting \nunderreported amounts or overreported amounts and you \nwould like to use the adjustment process to correct the \nerrors.\nIf you are correcting both underreported amounts and \noverreported amounts on this form, you must check this \nbox. If you check this box, any negative amount shown on \nline 5 will be applied as a credit (tax deposit) to your Form \n945 for the year in which you are filing this form. See \nExample—You want your overreported tax applied as a \ncredit to Form 945 above.\nIf you owe tax. Pay the amount shown on line 5 by the \ntime you file Form 945-X. Generally, you will not be \ncharged interest if you file on time, pay on time, enter the \ndate you discovered the error, and explain the correction \non line 7.\nIf you have a credit. You overreported withheld federal \nincome tax (you have a negative amount on line 5) and \nwant the IRS to apply the credit to Form 945 for the year \nduring which you filed Form 945-X. The IRS will apply \nyour credit on the first day of that year. However, the \ncredit you show on line 5 of Form 945-X may not be fully \navailable on your Form 945 if the IRS corrects it during \nprocessing or you owe other taxes, penalties, or interest. \nThe IRS will notify you if your claimed credit changes or if \nthe amount available as a credit on Form 945 was \nreduced because of unpaid taxes, penalties, or interest.\nDo not check the box on line 1 if you are \ncorrecting overreported amounts and the period \nof limitations on credit or refund for Form 945 will \nexpire within 90 days of the date you file Form 945-X. \nInstead, check the box on line 2. See Is There a Deadline \nfor Filing Form 945-X, earlier.\n2. Claim\nCheck the box on line 2 to use the claim process if you are \ncorrecting overreported amounts only and you are \nclaiming a refund or abatement for the negative amount \nCAUTION\n!\n(credit) shown on line 5. Do not check this box if you are \ncorrecting any underreported amounts on this form.\nYou must check the box on line 2 if you have a credit \nand the period of limitations on credit or refund for Form \n945 will expire within 90 days of the date you file Form \n945-X. See Is There a Deadline for Filing Form 945-X, \nearlier.\nThe IRS usually processes claims shortly after they are \nfiled. IRS will notify you if your claim is denied, accepted \nas filed, or selected to be examined. See Pub. 556, \nExamination of Returns, Appeal Rights, and Claims for \nRefund, for more information.\nUnless the IRS corrects Form 945-X during processing \nor you owe other taxes, penalties, or interest, IRS will \nrefund the amount shown on line 5, plus any interest that \napplies.\nPart 2: Enter the Corrections for the \nCalendar Year You Are Correcting\nWhat Amounts Should You Report in Part 2?\nIn columns 1 and 2 of lines 3 and 4, show amounts for all \nof your payees, not just for those payees whose amounts \nyou are correcting.\nIf a correction that you report in column 3 includes both \nunderreported and overreported amounts (see the \ninstructions for line 6), give us details for each error on \nline 7.\nYou may correct federal income tax withholding errors \nfor prior years if the amounts shown on Form 945 do not \nagree with the amounts you actually withheld, that is, an \nadministrative error. See section 13 of Pub. 15 (Circular E) \nfor more information about administrative errors.\nIf you previously adjusted or amended Form 945 \nusing Form 945-X or because of an IRS \nexamination change, show amounts in column 2 \nthat include those previously reported corrections.\n3. Federal Income Tax Withheld\nIf you are correcting the federal income tax withheld you \nreported on Form 945, line 1, enter the total corrected \namount for all payees in column 1. In column 2, enter the \namount you originally reported or as previously corrected. \nIn column 3, enter the difference between columns 1 and \n2.\n line 3 (column 1)\n-line 3 (column 2)\n line 3 (column 3) \nIf the amount in column 2 is larger than the \namount in column 1, use a minus sign in \ncolumn 3.\nExample—Federal income tax withheld increased. \nYou reported $9,000 as federal income tax withheld on \nline 1 of your 2012 Form 945. In July of 2013, you \ndiscovered that you had overlooked $1,000 in federal \nincome tax actually withheld from one of your payees. To \ncorrect the error, figure the difference on Form 945-X as \nshown.\nCAUTION\n!\n-4-\nInstructions for Form 945-X (Rev. 2-2014)\n",
".\n.\nColumn 1 (corrected amount)\n10,000.00\nColumn 2 (Form 945, line 1)\n-\n 9,000.00\nColumn 3 (difference)\n1,000.00\nExample—Federal income tax withheld decreased. \nYou reported $9,600 as federal income tax withheld on \nline 1 of your 2012 Form 945. In December of 2013, you \ndiscovered that you actually withheld $6,900 but reported \nthe higher amount due to a typographical (administrative) \nerror. To correct the error, figure the difference on Form \n945-X as shown.\n.\n.\nColumn 1 (corrected amount)\n6,900.00\nColumn 2 (Form 945, line 1)\n- \n9,600.00\nColumn 3 (difference)\n-2,700.00\nExample—Failure to withhold income tax when \nrequired. You were required to withhold $400 of federal \nincome tax from a new payee in December of 2012 but \nwithheld nothing. You discovered the error on March 15, \n2013. You cannot file Form 945-X to correct your 2012 \nForm 945 because the error involves a previous year and \nthe amount previously reported for the new payee (zero) \nrepresents the actual amount withheld from the new \npayee during 2012.\nExample—Administrative error. You had three \npayees. In 2012, you withheld $1,000 of federal income \ntax from payee A, $2,000 from payee B, and $6,000 from \npayee C. The total amount of federal income tax you \nwithheld was $9,000. You mistakenly reported $6,000 on \nline 1 of your 2012 Form 945. You discovered the error on \nMarch 15, 2013. This is an example of an administrative \nerror that may be corrected in a later calendar year \nbecause the amount actually withheld from payees differs \nfrom the amount reported on Form 945. Use Form 945-X \nto correct the error. Enter $9,000 in column 1 of line 3 and \n$6,000 in column 2 of line 3. Subtract the amount in \ncolumn 2 from the amount in column 1.\n.\n.\nColumn 1 (corrected amount)\n 9,000.00\nColumn 2 (Form 945, line 1)\n -\n6,000.00\nColumn 3 (difference)\n 3,000.00\nBe sure to explain the reasons for this correction on \nline 7.\n4. Backup Withholding\nIf you are correcting the backup withholding of federal \nincome tax you reported on Form 945, line 2, enter the \ntotal corrected amount in column 1. In column 2, enter the \namount you originally reported or as previously corrected. \nIn column 3, enter the difference between columns 1 and \n2.\n line 4 (column 1)\n-line 4 (column 2)\n line 4 (column 3) \nIf the amount in column 2 is larger than the \namount in column 1, use a minus sign in \ncolumn 3.\nRead the instructions for line 3 for more \ninformation on completing line 4. For correction \npurposes, there is no distinction between federal \nincome tax withheld from pensions, annuities, IRAs, \ngambling winnings, etc. and backup withholding.\n5. Total\nCombine the amounts from lines 3 and 4 of column 3. \nEnter the result on line 5.\nYour credit. If the amount entered on line 5 is less than \nzero, for example, “-115.00,” you have a credit because \nyou overreported withheld federal income tax.\nIf you checked the box on line 1, include this amount \non line 4 (“Total deposits”) of Form 945 for the year during \nwhich you file Form 945-X. Do not make changes to your \nMonthly Summary of Federal Tax Liability on Form 945 or \non Form 945-A. The amounts reported on the record \nshould reflect your actual tax liability for the period.\nIf you checked the box on line 2, you are filing a claim \nfor refund or abatement of the amount shown.\nIf your credit is less than $1, we will send a refund or \napply it only if you ask us in writing to do so.\nAmount you owe. If the amount on line 5 is a positive \nnumber, you must pay the amount you owe by the time \nyou file Form 945-X. You may not use any credit that you \nshow on another Form 945-X to pay for the amount you \nowe, even if you filed for the amount you owe and the \ncredit at the same time.\nPayment Methods. You may pay the amount you owe \non line 5 electronically using the Electronic Federal Tax \nPayment System (EFTPS), by credit or debit card, or by \ncheck or money order.\nThe preferred method of payment is EFTPS. For \ninformation, visit www.eftps.gov, call EFTPS Customer \nService at 1-800-555-4477 or 1-800-733-4829 (TDD), or \nsee Pub. 966, Electronic Federal Tax Payment System: A \nGuide To Getting Started.\nFor more information on paying by credit or debit card, \nvisit the IRS website at www.irs.gov/e-pay.\nIf you pay by check or money order, make it payable to \n“United States Treasury.” On your check or money order, \nbe sure to write your EIN, “Form 945-X,” and the year \ncorrected.\nYou do not have to pay if the amount you owe is less \nthan $1.\nPreviously assessed FTD penalty. If line 5 reflects \noverreported tax and the IRS previously assessed a \nfailure-to-deposit (FTD) penalty, you may be able to \nreduce the penalty. For more information, see the Form \n945-A instructions.\nPart 3: Explain Your Corrections for \nthe Calendar Year You Are Correcting\n6. Correcting Both Underreported and \nOverreported Amounts\nCheck the box on line 6 if any corrections you entered on \nline 3 or line 4 in column 3 reflect both underreported and \noverreported amounts.\nTIP\nInstructions for Form 945-X (Rev. 2-2014)\n-5-\n",
"Example. If you had an increase to withheld income \ntax of $15,000 for payee A and a decrease to withheld \nincome tax of $5,000 for payee B, you would enter \n$10,000 on line 3, column 3. That $10,000 represents the \nnet change from corrections.\nOn line 7, you must explain the reason for both the \n$15,000 increase and the $5,000 decrease.\n7. Explain Your Corrections\nTreasury regulations require you to explain in detail the \ngrounds and facts relied upon to support each correction. \nOn line 7, describe in detail each correction you entered in \ncolumn 3 on lines 3 and 4. If you need more space, attach \nadditional sheets, but be sure to write your name, EIN, \nForm 945-X, and calendar year on the top of each sheet.\nYou must describe the events that caused the \nunderreported or overreported withheld income tax or \nbackup withholding. An explanation such as “withheld \nincome tax was overstated” is insufficient and may delay \nprocessing your Form 945-X because the IRS may need \nto ask for a more complete explanation.\nProvide the following information in your explanation for \neach error you are correcting.\nForm 945-X line number(s) affected.\nDate you discovered the error.\nDifference (amount of the error).\nCause of the error.\nYou may report the information in paragraph form. The \nfollowing paragraph is an example.\n“The $1,000 difference shown in column 3 of line 3 was \ndiscovered on May 13, 2013, during an internal audit. Due \nto a typographical error, we reported $11,000 as withheld \nincome tax on Form 945 instead of the $10,000 actually \nwithheld from payees. This correction removes the $1,000 \nthat was overreported.”\nPart 4: Sign Here\nYou must fill out both pages of Form 945-X and sign it on \npage 2. If you do not sign, processing of Form 945-X will \nbe delayed.\nWho must sign the Form 945-X? Form 945-X must be \nsigned by a person who is authorized to sign for the type \nof business entity.\nSole proprietorship—The individual who owns the \nbusiness.\nCorporation (including a limited liability company \n(LLC) treated as a corporation)—The president, vice \npresident, or other principal officer duly authorized to act.\nPartnership (including an LLC treated as a \npartnership) or unincorporated organization—A \nresponsible and duly authorized partner, member, or \nofficer having knowledge of its affairs.\nSingle member LLC treated as a disregarded entity \nfor federal income tax purposes—The owner of the \nLLC or principal officer duly authorized to act.\nTrust or estate—The fiduciary.\nA duly authorized agent of the taxpayer may also sign \nForm 945-X if a valid power of attorney has been filed.\nAlternative signature method. Corporate officers or \nduly authorized agents may sign Form 945-X by rubber \nstamp, mechanical device, or computer software \nprogram. For details and required documentation, see \nRev. Proc. 2005-39. You can find Rev. Proc. 2005-39, \n2005-28 I.R.B. 82, at www.irs.gov/irb/2005-28_IRB/\nar16.html.\nPaid Preparer Use Only\nA paid preparer must sign Form 945-X and enter the \ninformation requested in the Paid Preparer Use Only \nsection of Part 4 if the preparer was paid to prepare Form \n945-X and is not an employee of the filing entity. Paid \nPreparers must sign paper returns with a manual \nsignature. The preparer must give you a copy of the return \nin addition to the copy to be filed with the IRS.\nIf you are a paid preparer, enter your Preparer Tax \nIdentification Number (PTIN) in the space provided. \nInclude your complete address. If you work for a firm, \nenter the firm's name and the EIN of the firm. You can \napply for a PTIN online or by filing Form W-12, IRS Paid \nPreparer Tax Identification Number (PTIN) Application \nand Renewal. For more information about applying for a \nPTIN online, visit the IRS website at www.irs.gov/ptin. You \ncannot use your PTIN in place of the EIN of the tax \npreparation firm.\nGenerally, you are not required to complete this section \nif you are filing the return as a reporting agent and have a \nvalid Form 8655, Reporting Agent Authorization, on file \nwith the IRS. However, a reporting agent must complete \nthis section if the reporting agent offered legal advice, for \nexample, advising the client whether federal income tax \nwithholding is required on certain payments.\nHow Can You Order Forms, \nInstructions, and Publications from \nthe IRS?\nVisit the IRS website at www.irs.gov/formspubs.\nCall the IRS at 1-800-TAX-FORM \n(1-800-829-3676).\nAdditional Information\nYou may find the following products helpful when using \nForm 945-X.\nForm W-4P, Withholding Certificate for Pension or \nAnnuity Payments\nForm W-4V, Voluntary Withholding Request\nForm W-9, Request for Taxpayer Identification Number \nand Certification\nInstructions for Forms W-2G and 5754\nInstructions for Form 843\nInstructions for Form 945\nForm 945-A, Annual Record of Federal Tax Liability\nPub. 15 (Circular E), Employer's Tax Guide\nPub. 575, Pension and Annuity Income\nPub. 966, Electronic Federal Tax Payment System: A \nGuide To Getting Started\n-6-\nInstructions for Form 945-X (Rev. 2-2014)\n",
"Pub. 1281, Backup Withholding for Missing and \nIncorrect Name/TIN(s)\nPaperwork Reduction Act Notice. We ask for the \ninformation on Form 945-X to carry out the Internal \nRevenue laws of the United States. You are required to \ngive us the information. We need it to ensure that you are \ncomplying with these laws and to allow us to figure and \ncollect the right amount of tax.\nYou are not required to provide the information \nrequested on a form that is subject to the Paperwork \nReduction Act unless the form displays a valid OMB \ncontrol number. Books and records relating to a form or its \ninstructions must be retained as long as their contents \nmay become material in the administration of any Internal \nRevenue law. Generally, tax returns and return \ninformation are confidential, as required by section 6103.\nThe time needed to complete and file Form 945-X will \nvary depending on individual circumstances. The \nestimated average time is:\nRecordkeeping . . . . . . . . . . . . . . . . . . . . . . .\n5 hr., 44 min.\nLearning about the law or the form\n. . . . . . . . .\n40 min.\nPreparing and sending the form to the IRS . . . .\n1 hr., 59 min.\nIf you have comments concerning the accuracy of \nthese time estimates or suggestions for making this form \nsimpler, we would be happy to hear from you. You can \nsend us comments from www.irs.gov/formspubs. Click on \nMore Information and then click on Give us feedback. Or \nyou can send your comments to the Internal Revenue \nService, Tax Forms and Publications Division, 1111 \nConstitution Ave. NW, IR-6526, Washington, DC 20224. \nDo not send Form 945-X to this address. Instead, see \nWhere Should You File Form 945-X, earlier.\nInstructions for Form 945-X (Rev. 2-2014)\n-7-\n",
"Form 945-X: Which process should you use?\nType of errors you are \ncorrecting\nUnderreported \namounts ONLY\nUse the adjustment process to correct underreported amounts.\nCheck the box on line 1.\nPay the amount you owe from line 5 by the time you file Form 945-X.\nOverreported \namounts ONLY\nThe process you use \ndepends on when you \nfile Form 945-X.\nIf you are filing Form 945-X MORE \nTHAN 90 days before the period \nof limitations on credit or refund \nfor Form 945 expires\n. . . . . . .\nChoose either the adjustment process or the claim \nprocess to correct the overreported amounts.\nChoose the adjustment process if you want the \namount shown on line 5 credited to your Form 945 \nfor the period in which you file Form 945-X. Check \nthe box on line 1.\nOR\nChoose the claim process if you want the amount \nshown on line 5 refunded to you or abated. Check \nthe box on line 2.\nIf you are filing Form 945-X \nWITHIN 90 DAYS of the expiration \nof the period of limitations on \ncredit or refund for Form \n945 \n. . . . . . . . . . . . . . . . . . .\nYou must use the claim process to correct the \noverreported amounts. Check the box on line 2.\nBOTH underreported \nand overreported \namounts\nThe process you use \ndepends on when you \nfile Form 945-X.\nIf you are filing Form 945-X MORE \nTHAN 90 days before the period \nof limitations on credit or refund \nfor Form 945 expires \n. . . . . . .\nChoose either the adjustment process or both the \nadjustment process and the claim process when you \ncorrect both underreported and overreported \namounts.\nChoose the adjustment process if you want to \noffset your underreported amounts with your \noverreported amounts.\nFile one Form 945-X, and \nCheck the box on line 1 and follow the instructions \non line 5.\nOR\nChoose both the adjustment process and the \nclaim process if you want the overreported amount \nrefunded to you or abated.\n \nFile two separate forms.\n1. For the adjustment process, file one Form \n945-X to correct the underreported amounts. Check \nthe box on line 1. Pay the amount you owe from \nline 5 by the time you file Form 945-X.\n2. For the claim process, file a second Form 945-X \nto correct the overreported amounts. Check the box \non line 2.\nIf you are filing Form 945-X \nWITHIN 90 DAYS of the expiration \nof the period of limitations on \ncredit or refund for Form \n945 \n. . . . . . . . . . . . . . . . . . .\nYou must use both the adjustment process and \nthe claim process.\n \nFile two separate forms.\n1. For the adjustment process, file one Form 945-X \nto correct the underreported amounts. Check the box \non line 1. Pay the amount you owe from line 5 by the \ntime you file Form 945-X.\n2. For the claim process, file a second Form 945-X to \ncorrect the overreported amounts. Check the box on \nline 2.\n-8-\nInstructions for Form 945-X (Rev. 2-2014)\n"
] |
f14462.pdf
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0214 Form 14462 (PDF)
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https://www.irs.gov/pub/irs-pdf/f14462.pdf
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[
"Department of the Treasury - Internal Revenue Service\npublish.no.irs.gov\nCatalog Number 61672M\nForm 14462 (2-2014)\nAuthorization for Disclosure of Information - IRS Return Preparer Office \nDepartment of Health and Human Services, Federal Occupational Health (FOH) Services \nThe use of this form is voluntary. This form is used by FOH to obtain medical certification related to your Reasonable Accommodation request from your \nhealth care provider. By providing the information requested on this form, FOH will be able to obtain information from your medical provider. FOH will \nuse this medical information to develop a recommendation for your reasonable accommodation request. FOH will only share the necessary medical \ninformation required to make a decision on your request. All other medical documentation will be kept in your case file at FOH.\nSECTION 1 Testing Candidate's Information\nName of candidate (Last, First, Middle Initial)\nLast 4 digits of SSN\nGender\nMale\nFemale\nDate of birth (mm-dd-yyyy)\nCity\nState\nZIP code\nTelephone number (include area code)\nAddress (street address - no P.O. Boxes)\nSECTION 2 Treating Health Care Provider Contact Information\nName of health care provider\nMailing address (street address - no P.O. Boxes)\nCity\nState\nZIP code\nOffice telephone number (include area code)\nOffice FAX number (include area code)\nSECTION 3 Instructions for the Treating Health Care Provider\nYour patient is seeking a reasonable accommodation for testing accommodation for an examination administered by the Internal Revenue Service. FOH \nServices seeks your input as to condition, treatment, etc. Your response should be an assessment of your patient's request based upon your medical \nknowledge, experience, and examination of the patient. Be as specific as you can; terms such as “lifetime,” “unknown,” or “indeterminate” may not be \nsufficient to determine the type of reasonable accommodation this patient is seeking. Limit your responses to the condition for which the patient is \nrequesting reasonable accommodations for tax examination.\nYou are hereby authorized to furnish information from the record of the patient named below, which is in the record system of your facility, and release it \nto: Federal Occupational Health (FOH) Services, Bethesda, MD \nFAX number 301-594-3321\nName of patient\nAgency\nI authorize the disclosure of my medical information, related to to my reasonable accommodation request made on to FOH \nServices. I am allowing my doctor or primary health care provider to release medical information pertaining to my condition for which I am seeking \nreasonable accommodation and only for medical records dated:\nSECTION 4 Individual Signature\nName of patient\nPatient signature\nDate signed\nThis authorization expires one year from the date the patient signed this form in Section 4.\nThis authorization is subject to revocation by the individual at any time except to the extent that FOH has already taken action in reliance on it. If this \nauthorization has not been revoked in writing, it will expire with the terms of the duration statement provided above. Any person who knowingly and \nwillfully requests or obtains any record concerning an individual from a Federal agency under false pretenses shall be guilty of a misdemeanor and fined \nnot more than $5,000 (5 U.S.C 552a(i)(3)); in the case of alcohol and drug abuse patient records, a falsified authorization for disclosure is prohibited \nunder 42 CFR 2.31 and is punishable by a fine of not more than $500 for a first offense or a fine of not more than $5,000 for a subsequent offense, in \naccordance with 42 CFR 2.4. The release of information about a patient who is treated or referred for treatment for alcohol or drug abuse, or the medical \nresults of such abuse, is governed by the Confidentiality of Alcohol and Drug Abuse Patient Record Regulations, 42 CFR Part 2. \nEffective March 1, 1999, it is the policy of FOH that all medical confidential information will be handled in accordance with 5 CFR Part 293 (Personnel \nRecords), 5 CFR Part 297 (Privacy Provisions for Personnel Records), 5 USC 552a(b)(Conditions of Disclosure), OPM/GOVT-10 (Employee Medical \nFile System Records, including authorized “Routine Uses” for those records), and the Privacy Act of 1974 and subsequent amendments, as well as the \nguidance provided in 3.2 (above) by OSHA.\nPrivacy Act Notice\n"
] |
p5138.pdf
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0214 Publ 5138 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5138.pdf
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[
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nFebruary 2014 \nPublication 5138 (2-2014) Catalog Number 66217H Department of the Treasury Internal Revenue Service www.irs.gov \n \n",
" \n \n \n2 \nCONTENTS \nINTRODUCTION \n............................................................................. 3 \nCOMPENSATION ........................................................................... 3 \n \nSOCIAL SECURITY AND MEDICARE COVERAGE .................... 4 \nPUBLIC RETIREMENT SYSTEMS ................................................ 5 \nRETIREMENT PLANS \n.................................................................... 6 \nFEE-BASED PUBLIC OFFICIALS \n.................................................. 7 \nSPECIAL SITUATIONS FOR PUBLIC WORKERS \n....................... 7 \nFRINGE BENEFITS ........................................................................ 9 \nINFORMATION REPORTING ..................................................... 16 \nBACKUP WITHHOLDING \n............................................................. 19 \n \nREFERENCE INFORMATION \nKEY DATES – SECTION 218 \n....................................................... 21 \nSOCIAL SECURITY COVERAGE (FLOWCHART) \n..................... 22 \nMEDICARE COVERAGE (FLOWCHART) \n................................... 23 \nMORE INFORMATION ................................................................. 24 \n \nThis guide is intended to provide basic information on the subjects covered. It \nreflects the interpretation by the IRS of tax laws, regulations, and court decisions. \nThe explanations in the guide are intended for general guidance only, and are not \nintended to provide a specific legal determination with respect to a particular set of \ncircumstances. Additional research may be required before a determination may be \nmade on a particular issue. Citations to legal authority are included in the text. You \nmay contact the IRS for additional information. You may also want to consult a tax \nadvisor to address your situation. \n \n \n",
" \n \n \n3 \nINTRODUCTION \n \nThis guide is produced annually by the IRS office of Federal, State and Local Governments \n(FSLG). It is intended to provide a brief introduction to basic federal employment tax and reporting \ninformation issues for governmental employers. For more detailed information in these areas, see \nIRS Publication 963, Federal/State Reference Guide. For a general discussion of employment tax \nresponsibilities that apply to all employers, see Publication 15, Employer’s Tax Guide. These \npublications discuss the general rules for reporting wages on Form W-2, Wage and Tax \nStatement, and on Form 941, Employer’s Quarterly Employment Tax Return. They also address \nrequirements for withholding and depositing of taxes. This guide is intended to focus on the key \npoints facing public employers and to point to sources for further information. \n \nCOMPENSATION \n \nCompensation includes any property or services provided in exchange for services. This includes \nall cash and noncash remuneration for services performed by an employee for an employer, \nunless specifically excluded. Wages are subject to federal income tax, social security and \nMedicare tax, except where the law provides otherwise. \n \nGenerally, the medium in which the remuneration is paid is immaterial. Compensation may be \npaid in cash or, for example, services, bonds, inventory, or other forms of property. If services are \npaid for in a medium other than cash, the fair market value of the goods or services provided in \npayment is the amount to be included as wages. \n \nEmployees \n \nIn general, an employee is anyone who performs services subject to the will and control of the \nindividual or entity paying for the services. Payments to employees in the form of cash, property, \nservices or other benefits are taxable wages, unless excluded by a specific provision of the law. \nRegulation Section 31.3401(a)-1 indicates that wages include noncash property or services \nreceived in exchange for services provided. For a more detailed discussion of how to determine \nwhether a worker is an employee, see Publication 963 or Publication 15-A. \n \nEmployers report taxable wages on Form W-2, Wage and Tax Statement, which is furnished to \nthe employees and transmitted to the Social Security Administration using Form W -3, Transmittal \nof Wage and Tax Statements. \n \nIndependent Contractors \n \nAny person or business that performs services for compensation and does not meet the control \ntest for employees, discussed above, is an independent contractor. Generally, any payment of \n$600 or more during a calendar year to an independent contractor should be reported to the payer \non Form 1099-MISC, Miscellaneous Income, by January 31 of the following year. For purposes of \nan information return, an amount is deemed to have been paid when it is credited or set apart to a \nperson without any substantial limitation or restriction. Never use Form 1099-MISC to report \ncompensation or reimbursements to employees. Information reporting is discussed in greater \ndetail in the Information Reporting Section and the Instructions for Form 1099-MISC. \n",
" \n \n \n4 \nSOCIAL SECURITY AND MEDICARE COVERAGE \n \nPublic employers need to be aware of the rules that govern social security and Medicare (FICA) \ncoverage for their employees. Public employees fall into three different categories with respect to \nsocial security: \n \n Subject to social security tax withholding through mandatory coverage, \n Subject to social security through a Section 218 Agreement, or \n Exempt from mandatory social security because they are covered by a public retirement \nsystem (also called a “FICA replacement plan”). These employees may or may not also be \ncovered optionally for social security under a Section 218 Agreement. \n \nIn many cases, several issues must be considered to determine the correct social security and \nMedicare status of an individual worker. \n \n A Section 218 Agreement between the Social Security Administration and a state’s Social \nSecurity Administrator provides coverage for a group of state or local government employees. \nTo determine the coverage that applies in a given situation, it is first necessary to determine \nwhether a Section 218 Agreement covers services performed by the worker. If the Section 218 \nAgreement includes the position, any employee holding that position is covered under the \nAgreement, regardless of other factors. \n \nSee the Key Dates section, later, for more information about the history and application of Section \n218. \n \nIf you are not sure whether a worker’s position is covered, or have any questions about your \nSection 218 Agreement, please call your State Social Security Administrator. A list of state \nadministrators is available. \n \nIf a position is not covered by a Section 218 Agreement, you need to establish the date the worker \nin question was hired in order to determine the social security coverage for that worker. This is the \ndate the worker began his/her current employment. If a worker was terminated and re-hired, the \nre-hire date is the date you use to determine whether coverage applies. \n \nFor any period after July 1, 1991, any employees who are not participating in a qualifying \nretirement system made available through their employer MUST be covered by social security and \nMedicare (unless the services are specifically excluded from social security). \n \nIf the position is covered for social security, either by a Section 218 Agreement or under \nmandatory coverage, the worker in that position is subject to social security tax, and the employer \nis responsible for contributing an additional share of the tax. \n \nNote: Employees covered under a public retirement system may also be \ncovered for social security by a Section 218 Agreement. \n \n",
" \n \n \n5 \nAll state and local government employees hired after March 31, 1986, are subject to the Medicare \ntax. A worker hired prior to April 1, 1986, and not covered by a section 218 Agreement, may be \nexempt from Medicare if he or she was a bona fide employee on that date, and has been in \ncontinuous service since that date. Any worker hired after March 31, 1986, must be covered by \nMedicare, either by a section 218 Agreement or under mandatory coverage provisions. See \nRevenue Ruling 86-88 in Publication 963. \n \nNote: Any Section 218 Agreement in effect on April 20, 1983, cannot be terminated \nregardless of whether an additional retirement plan is later made available to \naffected employees. \n \nPUBLIC RETIREMENT SYSTEM \n \nAs stated above, employees are excluded from mandatory social security coverage if they are \ncovered by a public retirement system. The employee may be a member of any type of retirement \nsystem, including a nonqualified system (for example, a section 457(b) plan, discussed below), as \nlong as the plan provides a minimum level of benefits, as specified by law, under that system. A \n“public retirement system” is not required to be a qualified plan within the meaning of the \nEmployees’ Retirement Income Security Act of 1974 (ERISA). \n \nA public retirement system may take one of two forms: the defined benefit retirement system, \nwhich is based on a guaranteed minimum benefit, and the defined contribution retirement system, \nwhich is based on a required contribution from the employee. \n \nIn order for a defined benefit retirement system to be considered a public retirement system, it \nmust provide a benefit generally comparable to that provided by social security. The computation \nof the benefit that the plan provides is made based on various factors, including years of service \nrendered by the employee, compensation earned by the employee and the age of the employee at \nretirement. The Service issued Revenue Procedure 91-40 to clarify the minimum retirement \nbenefit tests, which must be met in the plan’s formula. This Revenue Procedure, and a general \ndiscussion, can be found in the Appendix of Publication 963. \n \nIn order for a defined contribution retirement system to be considered a qualified plan, the worker \nmust be covered in a plan in which, generally, at least 7.5% of his/her compensation is credited to \na retirement plan account on his or her behalf. This contribution can be any combination of \nemployer and employee contributions, but must total a minimum of 7.5% of pay, and cannot \ninclude any credited interest in the calculation. The system may include any plan described in \nsection 401(a), an annuity plan or contract under section 403(b) or a plan described in section \n457(b) or (f) of the Internal Revenue Code. \n \nAny person working for a public employer after July 1, 1991, who is not covered by a public \nretirement system that meets the requirements discussed above, or the defined benefit system \nsafe harbor rules of Revenue Procedure 91-40, must be covered by social security and Medicare, \nfor any service not specifically excluded, under the mandatory coverage provisions of Section 210 \nof the Social Security Act. \n \n \n",
" \n \n \n6 \nRETIREMENT PLANS \nVarious sections of the Code provide for favorable treatment of employee retirement plans. Under \nIRC section 401, employees may receive tax-deferred treatment of elective deferrals and \nemployer contributions to retirement plans. These are referred to as qualified plans. Employer \ncontributions are also exempt from social security and Medicare tax. In most cases, employee \ncontributions are subject to withholding for social security and Medicare. \n \nSection 403(b) Annuity Plans \n \nSection 403(b) provides for tax-sheltered annuities for employees of public schools or tax-exempt \norganizations. These plans may provide for elective, nonelective, or after-tax contributions, subject \nto annual limits, to an annuity or custodial account. See Publication 571 for more information on \nsection 403(b) plans. \n \nSection 457 (Nonqualified) Plans \n \nNonqualified, or section 457, deferred compensation plans, can be established only by state and \nlocal governments or tax-exempt organizations. These plans do not meet the requirements for \ntreatment under section 401, or a tax-sheltered annuity under section 403, but may still provide for \ndeferred compensation. If it meets the requirements of IRC section 457(b), a plan is an “eligible” \nplan; if not, it is considered “ineligible” and is governed by the rules of IRC section 457(f). \n \nThe section 457 plan can be used either as a primary retirement plan or as a deferred \ncompensation plan in addition to the employee’s retirement system and/or social security. \n \nGovernmental 457(b), or eligible, plans must be funded, with assets held in trust for the benefit of \nemployees. Plans eligible under 457(b) may defer amounts from income tax up to an annual limit \n($17,500 in 2014). In addition, “catch-up” contributions may be made to employees age 50 or \nolder. Social security and Medicare taxes generally apply to all employer and employee \ncontributions. For further information regarding social security and Medicare tax withholding and \nreporting on amounts deferred into eligible deferred compensation plans, see Section VI of Notice \n2003-20 and the IRS.gov Employee Plans site. \n \nFor a 457(b) plan, the government entity holds the funds in trust until the employee is eligible for a \ndistribution (usually at retirement) and withdraws the money. The employer can match the \nemployee’s contribution, but is not required to do so. Employer contributions generally vest \nimmediately. See IRS.gov Employee Plans site. \n \nNonqualified state or local government plans that do not meet the tests of 457(b) are ineligible, or \n457(f), plans. There is no limit on the annual deferrals on these plans, but in order to defer \ntaxation, all amounts must be subject to substantial risk of forfeiture. Distributions are generally \nsubject to social security and Medicare taxes at the later of the time 1) when the services giving \nrise to the related compensation are performed, or 2) when there is no substantial risk of forfeiture \nof the rights to the amounts. \n \n \n",
" \n \n \n7 \nFEE-BASED PUBLIC OFFICIALS \n \nIn general, if an individual performs services as an official of a governmental entity and the \nremuneration received is paid from governmental funds, the official is an employee and the wages \nare subject to federal employment taxes. Examples of public officials include, but are not limited \nto, the President, governor, mayor, county commissioner, judge, justice of the peace, sheriff, \nconstable, registrar of deeds, or building inspector. \n \nAn exception to this rule applies to a fee-based public official. A fee-based public official receives \nhis/her remuneration in the form of fees directly from the public with whom he/she conducts \nbusiness. However, if the fee service is covered by a Section 218 agreement, it is treated as \nemployment regardless of other factors. Section 218 coverage always supersedes other \nconsiderations. \n \nIf a public official receives remuneration or salary directly from or through a government fund on \nthe basis of a fixed percentage, and no portion of the monies collected belongs to or can be \nretained by him or her as compensation, then the remuneration is not a fee, but salary subject to \nall employment taxes. \n \nIf an individual performs services in more than one position, each position is treated separately for \npurposes of determining whether the compensation for the service constitutes payment of fees to \na fee-based official. \n \nFor detailed information on this subject, see Publication 963, Federal-State Reference Guide, and \nRevenue Ruling 74-608, 1974-2 C.B. 275. \n \nSPECIAL SITUATIONS FOR PUBLIC WORKERS \n \nSpecific statutory provisions apply to various categories of individuals who work for government \nentities. Some common categories of these workers are discussed below. \n \nElected and Appointed Officials \n \nWith the exception of fee-based officials, discussed in section 5, elected and appointed officials \nare generally employees for federal income tax withholding purposes. Under section 3401(c) of \nthe Internal Revenue Code, these officials are subject to income tax withholding. Generally, these \nindividuals are also common-law employees for social security and Medicare purposes under \nsection 3121(d)(2). Any individual covered under a Section 218 Agreement between the employer \nand the Social Security Administration is subject to social security and Medicare withholding under \nsection 3121(d)(4). For more information, see Publication 963. \n \nCasual Laborer \n \nFederal tax law does not contain any special provision for a “casual laborer.” There is no “grace \nperiod” or minimum amount before withholding of employment taxes applies; if a common-law \nemployee is performing covered services, you must withhold with the first dollar earned by the \n",
" \n \n \n8 \nworker. If, for example, you hire a student to clean up the town dump or a day laborer to cut trees, \nunder conditions of common-law employment, that worker is an employee and you must withhold, \nreport, and pay over income, social security and Medicare taxes. \n \nVolunteer Firefighters \n \nVolunteer firefighters are considered employees and their remuneration is generally subject to all \nwithholding taxes. However, if the payment is reimbursement for out-of-pocket expenses actually \nincurred in the course of work, and the payment conforms to the requirements of Reg. 1.62-2 \nregarding accountable plans, then the payment is excludable from the firefighter’s Form W -2. (See \nthe discussion of accountable plans under Fringe Benefits, later.) \n \nElection Workers and Officials \n \nPayments for services to individuals for election work are exempt from income tax withholding. \nThey may be subject to social security and Medicare tax either under the provisions of a Section \n218 Agreement, or by law, if the amount of compensation exceeds an annual threshold ($1,600 in \n2014). If payments are subject to income tax, social security, or Medicare withholding, Form W -2 \nshould be furnished to that individual. If the employee has non-election wages from the same \nemployer, the normal Form W-2 reporting rules apply to those wages. \n \nFor more information about the tax treatment of election workers, see Revenue Ruling 2000-6 and \nPublication 963. \n \nRoad Commissioners \n \nAn individual with the title of “road commissioner” is usually an elected or appointed official of the \ngovernmental entity, and therefore is subject to the supervision, direction and discipline \ncharacteristic of an employer. In this case, all remuneration that the road commissioner personally \nreceives is wages. \n \nThe relationship between the employing entity and the commissioner may also allow for a fair \nrental payment for the use of any large equipment owned by the commissioner. This rental fee for \nequipment used is not wages and should be agreed upon in advance, and reported to the \nindividual on Form 1099-MISC, box 7. Fair equipment rental rates should be determined and \ngovernmental units should be based on fair market value, which is generally what a private \ncompany would charge under normal circumstances. \n \nIn some situations, the road commissioner may hire a crew to perform certain services. In this \ncase, it may be necessary to review the facts and circumstances to determine whether the \nworkers are employees of the governmental entity or of the road commissioner. \n \nAnimal Control Officer \n \nIf an animal control officer holds an elected or appointed position, that is generally an indication of \nemployee status and the remuneration is considered wages. \n",
" \n \n \n9 \nOther Workers \n \nMost other types of workers in a local government entity, including moderators, civil emergency \ndirectors, bus drivers, harbormasters, correction officers, fire chiefs, fire and ambulance workers, \nairport managers, summer aides, and librarians are generally considered employees, but in each \ncase the common-law standards should be considered. \n \nFRINGE BENEFITS \n \nFringe benefits include any compensation other than cash wages. The general rule is that the \ncompensation is taxable; however, the Internal Revenue Code provides exclusions for numerous \nforms of noncash compensation provided to employees. Some of the common fringe benefit \nissues encountered by public employers are discussed below. For a more detailed discussion of \nfringe benefits, see Publication 15-B and Publication 5137, Fringe Benefit Guide. \n \nReimbursement for Expenses \n \nIn general, reimbursements or expenses paid by the employer on behalf of the employee, such as \ntravel expenses, are taxable unless they are provided for allowable excluded benefits or \nexpenses, and made under an accountable plan. For payments to be considered made under an \naccountable plan, the employees must: \n \n Incur the expenses in the performance of work; \n Adequately account for the expenses within a reasonable period of time; and \n Return any amounts in excess of expenses within a reasonable period of time. \n \nIf the accountable plan rules are met, no tax reporting is necessary. If they are not met, the \nreimbursements or advances are included in wages, and the employee may deduct allowable \nbusiness expenses on his or her Form 1040. \n \nDe Minimis Fringe Benefits \n \nDe minimis fringe benefits are excludable from wages. A de minimis benefit is any property or \nservice you provide to an employee that has so little value (taking into account how frequently you \nprovide similar benefits to your employees) that accounting for it would be unreasonable or \nadministratively impracticable. Cash or gift cards cannot be de minimis, except for occasional \nmeal money or transportation fare. Common examples include small holiday gifts, occasional use \nof photocopiers, tickets, or personal use of an employer-provided cell phone. \n \nFor more information, see the Fringe Benefit Guide. \n \nGovernment-Owned Vehicles \n \nThe personal use of a government-owned vehicle is generally a taxable fringe benefit. It may, \nhowever, be excludable as a de minimis benefit, discussed above. Personal use includes the \nvalue of commuting in a government-owned vehicle, even if the vehicle is taken home for the \n",
" \n \n \n10 \nconvenience of the employer (but see Commuting Valuation Rule, below). The value of the benefit \nmust be included in wages, but withholding of income tax on the value of vehicle use is at the \nemployer’s option. Social security and Medicare withholding is required. \n \nAll of your employee's use of a qualified nonpersonal use vehicle qualifies as a working condition \nfringe. You can exclude the value of that use from employee income. A qualified nonpersonal use \nvehicle is any vehicle the employee is not likely to use more than minimally for personal purposes \nbecause of its design. Qualified nonpersonal use vehicles include: \n \n Clearly marked police, fire, and public safety officer vehicles. The employee must be on-\ncall, required to commute in the vehicle, and be prohibited from personal travel outside the \njurisdiction. \n Unmarked vehicles used by law enforcement officers. The officer must be authorized to \ncarry a firearm, execute search warrants and make arrests. \n Qualified specialized utility repair truck \n An ambulance or hearse used for its specific purpose. \n Any vehicle designed to carry cargo with a loaded gross vehicle weight over 14,000 \npounds. \n Delivery trucks with seating for the driver only, or for the driver plus a folding jump seat. \n A passenger bus with a capacity of at least 20 passengers, used for its specific purpose. \n School buses. \n Tractors and other special purpose farm vehicles. \nAll Other Employer-Provided Vehicles \n \nIf you provide an employee with a vehicle that does meet the qualified nonpersonal use criteria, \nthe personal use of the vehicle is a taxable fringe benefit. It is the employer's responsibility to \ndetermine the actual value of this fringe benefit and to include the taxable portion in the \nemployee's income. \n \nExample: A town-owned pickup truck is marked with the town name. It is not a police, fire, or \npublic safety vehicle, or other qualified nonpersonal use vehicle. The employee is usually allowed \nto take the vehicle home because he is \"on call.\" The vehicle is not a qualified nonpersonal use \nvehicle, thus the commuting is a non-cash taxable fringe benefit. \n \nSpecial Valuation Rules \n \nThere are three methods to determine the value of the vehicle provided to the employee: \n \n1) Lease value rule \n2) Cents-per-mile rule \n3) Commuting valuation rule \n \n \n \n",
" \n \n \n11 \n1) Lease Value Rule \n \nThe lease value method may be used for any vehicle, and must be used if the conditions \nfor using rule (2) or (3) are not met. It calculates the value of the benefit by determining the \nannual lease value of the vehicle, as follows: \n \n Determine the fair market value of the vehicle when first made available. \n Determine the annual lease value (ALV) from the table in Publication 15-B, which is \n based on a four-year lease term. This value will generally stay the same for each \nyear. If the vehicle remains in service after four years, it must be revalued and the \nALV recomputed. \n Multiply the annual lease value by the percentage of personal miles out of the total \nmiles driven by the employee. This is the value of the taxable benefit. \n \n2) Cents-Per-Mile Rule \n \n \nTo use the vehicle cents-per-mile rule, one of the following tests must be met: \n \n The employer reasonably expects the vehicle to be regularly used in the trade or \nbusiness throughout the calendar year; or \n The mileage test is met. \n \nA vehicle is considered “regularly used in the business” if: \n \n At least 50% or more of the total annual mileage each year is in the employer's \nbusiness; or \n It is generally used each workday to transport at least three employees to and from \nwork, in an employer sponsored commuting vehicle pool. \n \nThe mileage test is met if the vehicle is driven by employees at least 10,000 miles \n(personal and business) per year and use of the vehicle is primarily by employees. \n \nThe value of the personal use of a vehicle may be figured at 56 cents per mile for 2014 if \nthe following conditions are met: \n \nIf you do not provide fuel, you can reduce the value of the personal use by up to 5.5 cents \nper mile. \n \nTo use the cents-per-mile rule, the vehicles cannot have a greater fair market value in the \nyear placed in service than a maximum amount determined by the IRS for each year (for \n2014, $16,000 for cars and $17,300 for trucks). \n \n \n \n \n",
" \n \n \n12 \n3) Commuting Valuation Rule \n \nUnder this rule, you determine the value of a vehicle you provide to an employee (other \nthan a qualified nonpersonal use vehicle, discussed earlier) for commuting by valuing \neach one-way commute (home to work or work to home) at $1.50. If more than one \nemployee commutes in the vehicle, this value applies to each employee. Unless the \nemployee reimburses this amount to the employer, the amount is included in the \nemployee’s wages. This rule may be used if all of the following apply: \n \n You own or lease the vehicle and provide it to an employee to use in your \nbusiness. \n For bona fide noncompensatory business reasons, you require the employee to \ncommute in the vehicle. \n You establish a written policy allowing no personal use other than commuting or de \nminimis personal use (such as a stop for personal errand). \n Your employee does not use the vehicle for personal purposes other than \ncommuting and de minimis personal use. \n The employee is not a government control employee. A government control \nemployee is either (i) an elected official, or (ii) an employee whose pay is at least \nFederal Government Executive Level V ($147,200 in 2014). \n \n \n \n \n \nExample: An employee takes a city vehicle home in order to avoid exposing it to harm. \nThe vehicle has a city seal on the door and policy prohibits noncommuting personal use. If \nthis is an infrequent occurrence (less than once a month) this may be excludable as a de \nminimis fringe benefit. If this is a frequent or regular occurrence, the commuting may be \nvalued using the commuting rule. If the vehicle is not a qualified nonpersonal use vehicle \nas discussed earlier, and the employee drives it home, there is a taxable commuting \nbenefit. \n \nTo conform to the accountable plan rules, employees using a vehicle for business purposes \n(regardless of which special valuation rule is used) should keep daily records of business miles by \nkeeping a log showing the date, mileage, destination, business purpose, and personal use \n(including commuting) mileage. \n \nClothing Provided by the Employer \n \nThe value of work clothing provided by the employer is not taxable to the employee if: \n \n The employee must wear the clothing as a condition of employment; and \n The clothes are not suitable for everyday wear. \n \nIt is not enough that the employee wear distinctive clothing; the employer must specifically require \nthe clothing as a working condition. Nor is the test met because the employee does not, in fact, \nwear the work clothes away from work. The clothing must not be suitable for taking the place of \nregular clothing However, a detective's suit jacket and related clothing, since they are suitable for \neveryday wear, do not qualify as a uniform and are taxable to the employee. \n \n",
" \n \n \n13 \nThe value and upkeep of work clothes provided to firefighters, health care workers, law \nenforcement officers or letter carriers is nontaxable to the employee. Similarly, the value of safety \nshoes or boots, safety glasses, hard hats and work gloves provided and maintained by the \nemployer are not taxable. Reimbursements to employees for their purchase of any of these are \nexcludable if the expenditures are substantiated under the accountable plan rules. \n \nClothing Allowances \n \nIf clothing provided does not qualify as a deductible expense (i.e. as a uniform), then the clothing, \nor reimbursement for the clothing, must be treated as a taxable fringe benefit and is subject to \nincome, social security and Medicare taxes. Thus, a clothing allowance, such as for a police \nofficer or firefighter uniform, qualifies for exclusion from income if it meets all the requirements of \nan accountable plan (qualified expense, substantiation, and return of excess). \nGroup-Term Life Insurance \n \nAn employer may exclude from income the cost of up to $50,000 of group-term life insurance from \nan employee’s wages. If the employee receives more than $50,000 insurance, as determined by a \ntable provided by IRS regulations, then the excess is includable as wages. The tables for \ndetermining the cost of the additional insurance to be used are included in Publication 15-B, \nEmployer’s Tax Guide to Fringe Benefits, and in Regulation 1.79-3(d)(2). \n \nIf the employee makes any payment toward the cost of the insurance, then the amount of \ncoverage attributable to that payment is not considered in determining the amount of insurance \nprovided by the employer. \n \nTaxable employer-provided group-term life insurance is treated as wages, but is not subject to \nincome tax withholding. It is subject to social security and Medicare tax withholding and must be \nincluded on Form W-2, in box 1, 3, 5 and 12 (code C). The taxable portion is included on Form \n941, Employer’s Quarterly Federal Tax Return, as part of wages, tips and other compensation, \nand on the lines for social security and Medicare wages. \n \nMeals \n \nReimbursement for meal expenses may be excludable if they are qualifying travel expenses paid \nunder an accountable plan, discussed earlier. You can exclude the value of meals you furnish to \nan employee from the employee’s wages if they meet the following tests: \n \n They are furnished on your business premises. \n They are furnished for your convenience. \n \nThis exclusion does not apply to additional compensation provided in lieu of meals, or to an \nallowance provided based on number of hours worked. \nIn addition to any exclusion allowable under the provisions above, you can also exclude, as de \nminimis fringe benefits, infrequent meals provided to employees if they have so little value that \naccounting for them would be unreasonable or administratively impracticable. Occasional meal \n",
" \n \n \n14 \nmoney to enable an employee to work overtime may also be excludable. For more information on \nde minimis benefits, see the FSLG Fringe Benefit Guide and Publication 15-B. \n \nLodging \n \nLodging provided or reimbursed under an accountable plan may be excludable as a travel \nexpense. You can exclude the value of lodging you furnish to an employee at the job location if \nthe following tests are met: \n \n It is furnished on your business premises. \n It is furnished for your convenience. \n The employee must accept the lodging as a condition of employment. \n \nIf the employee has a choice between lodging and additional wages, the value of the lodging \nprovided is taxable because it is not a condition of employment. \n \nLodging for Educational Institutions \n \nLodging is required as a condition of employment if the employer requires the employee to live on \nthe premises to be able to perform the job duties. Common examples may include park rangers, \nfirefighters or apartment managers. For the exclusion to apply, the employee must be required to \naccept lodging. Where lodging is provided as a condition of employment, meals, if provided, may \nqualify as excludable. \n \nSpecial rules apply to certain campus lodging that is furnished to an employee or family members \nof an educational institution or academic health center. \n \nQualified campus lodging is lodging furnished to the employee by an educational institution for use \nas a home. The benefit applies to employees of educational institution and their spouses and \ndependents. The lodging must be located on or near a campus of the educational institution or an \nacademic health center. \n \nThe amount of rent the employee pays for the year for qualified campus lodging is considered \nadequate if it is at least equal to the lesser of: \n \n 5% of the appraised value of the lodging \n The average of rentals paid by individuals (other than employees or students) for \ncomparable lodging held for rent by the educational institution \n \nThe appraised value is the value is determined as of the close of the calendar year and must be \nreviewed on an annual basis. If the employee pays annual rent that is less than the lesser of these \namounts, the difference is included in wages. \n \n \n \n",
" \n \n \n15 \nSUMMARY: TREATMENT OF NONCASH FRINGE BENEFITS \nThe following chart provides a quick reference to general rules for common types of fringe \nbenefits. For complete information, see the appropriate sources. These benefits are discussed in \nmore in Publication 15-B. \n \nBenefit or Program IR Code Section Income Tax Withholding \nSocial Security & Medicare \nAccident Insurance \n105, 106 \nExempt, except for certain \nlong-term care benefits. \nExempt \nAdoption Expenses \n137 \nExempt \nTaxable \nAthletic Facilities, on \nemployer premises \n132(j)(4) \nExempt if substantially all use is by employee, spouse or \ndependent children \n \nAchievement \nAwards \n \n74, 274 \nValue of noncash safety or length-of-service awards \nvalued up to $400 for nonqualified or $1,600 for qualified \nawards (see Pub. 15-B and Pub. 535) \nCafeteria Plan (see \nspecific benefit) \n125 \nExempt on same basis as specific benefit (see Pub. 15-B) \nClothing Provided \n \n162 \nExempt, if required and not suitable for nonbusiness use \n \nDependent Care \nAssistance \n129, 3121(a), \n3401(a) \nExempt up to $5,000 ($2,500 for married filing separate \nreturn) per year \nEducational \nAssistance \n127, 132(d) \nExempt for up to $5,250 of benefits per year; if work \nrelated, may also qualify as working condition fringe \nbenefit. \nGroup Term Life \nInsurance \n79 \nExempt \nExempt up to cost of \n$50,000 of insurance \nHealth Insurance or \nReimbursement \n105, 106 \nExempt, except for certain \nlong-term care benefits \nExempt \nLodging \n119 \nExempt if for employer’s convenience as a condition of \nemployment \nMeals \n119 \nExempt if furnished on employer’s premises for \nemployer’s convenience, or if qualifying as de minimis \nMembership Fees \nPaid \n132(a)(3) \nExempt if for professional and business-related \norganizations and reasonable business purpose \n",
" \n \n \n16 \nBenefit or Program IR Code Section Income Tax Withholding \nSocial Security & Medicare \nMoving Expenses \n217 \nExempt (up to limits) if expenses would be deductible if \nthe employee had paid them \nNo-additional-cost \nservices \n132(b) \nExempt for employees receiving benefits of goods and \nservices in line of business (see Pub. 15-B) \nSick Pay \n3121(a)(15), \n6051(f) \nTaxable to extent coverage paid by employer (see Pub. \n15-A) \nTuition Reduction \n(educational \ninstitution) \n117 \nExempt if for undergraduate education (or graduate \neducation if the employee performs teaching or research \nactivities). \nTravel Expenses \n162 \nExempt if paid under an accountable plan for necessary \nexpenses. (see Pub. 15-A) \nVehicle Provided by \nEmployer \n280F \nExempt to the extent of business use; generally, \ncommuting use taxable (see Pub. 15-B) \nWorking Condition \nFringe Benefit \n132(d) \nExempt if cost would be deductible to employee if paid by \nemployee (see Pub. 15-B) \n \nINFORMATION REPORTING \n \nEmployers report compensation and withholding for employees on Form W-2, and file \nForm 941 quarterly to report aggregate wage and withholding amounts. The requirements \nand procedures for employee reporting are discussed in detail in Publication 15, \nEmployer’s Tax Guide. Other information return reporting requirements are discussed in \nthe General Instructions for Certain Information Returns. \n \nAny entity, including a governmental organization, conducting a trade or business is \nrequired to file information returns for certain types of payments. In most cases, these \npayments are reported on Form 1099-MISC, Miscellaneous Income. IRC 6041(a) states \nthat all persons engaged in a trade or business and making payment in the course of the \ntrade or business to another person of rent, of $600 or more in any year must issue an \ninformation return indicating the amount of such income and the name and address of the \nrecipient of the payment. Governmental entities are “persons” for this purpose. \n \nAll payments of compensation to an employee should be reported on Forms W-2 and W-3; never \nuse Form 1099-MISC to report payments for services by an employee. \n \nThe recipient of the payment is required to furnish the entity’s name, address and identification \nnumber. You should obtain this information before payments are made. This identification number \nmust be included on the information return. \n",
" \n \n \n17 \nForm 1099 filing requirements may apply based on the type of payment or on the type of \npayee. See the exceptions below. \n \nCommon payments required to be reported (payments of $600 or more) include services, \nrents, income payments, awards and prizes, and medical and health care payments. \n \nPayees for whom payments must be reported include individuals, partnerships, estates, \ntrusts, and medical and legal service providers. \n \nExamples of Reportable Payments \n \nNonemployee compensation (Form 1099-MISC Box 7) \n Accounting services \n \n \n \n \n Advertising \n Appraisal services \n Attorney fees \n Auto repair \n Construction \n Consultant fees \n Custodial and maintenance services \n Engineering services \n Game officials and referees \n Landscapers \n Photographers and printing services \n Trash removal \n \nMedical and Health Care Services (1099-MISC Box 6) \n Ambulance services \n Doctors, dentists, and optometrists \n For-profit hospitals \n Lab services \n Private duty nurses \n Psychiatrists, psychologists \n Rehabilitation centers \n Therapists \n \nRents (Form 1099-MISC Box 1) \n Equipment \n Office space \n Parking lot space \n Vehicles \n Welfare rental assistance (to landlords) \n \n \n \n \n",
" \n \n \n18 \nExceptions to Reporting Requirements \n \nInformation returns are not required for: \n \n Generally, payments to exempt organizations, including units of government. \n Payments by a broker to his/her customer. \n Generally, payments to a corporation; but required for payments to a corporation for legal, \nmedical and health care services, federal executive agency payments, and certain other \nitems. \n Payments of bills for merchandise, telegrams, telephone, freight, storage and similar \ncharges. \n Payments of rent made to real estate agents. \n Salaries and profits paid or distributed by a partnership to the individual partners. \n Payments of commissions to general agents by fire insurance companies or other companies \ninsuring property. \n Payments made by merchant or credit card reportable by the payment settlement entity on \nForm 1099-K. \n \nPayments for services not specifically excluded are reportable on an information return. \n \nYou should obtain vendor information before any payments are made. Use Form W-9, \nRequest for Taxpayer Identification Number and Certification, or a substitute, to collect the \nowner's name (if sole proprietor), legal business name, mailing address, taxpayer \nidentification number. \n \nUnder the backup withholding provisions, if the vendor fails to supply an identification \nnumber, the payer must withhold 28% and report these amounts to the IRS on annual \nForm 945. The person or entity receiving the payment will claim the amount withheld as a \ncredit on its income tax return; the amounts are not returned by the payer. Backup \nwithholding is discussed in the next section. \n \nWhen and How To File \n \nPayers responsible for filing 250 or more information returns per year must file them \nelectronically. This requirement applies separately to each type (1099-MISC, 1099-INT, \netc.) Filers of less than 250 returns may file electronically or use paper forms. For each \ninformation return you are required to file, send copy B to the recipient by January 31 of \nthe following year. Send copy A to the IRS by the last day of February, or by March 31 if \nfiled electronically. \n \nBasic information about information return requirements is available in the General \nInstructions for Certain Information Returns, as well as in the individual form instructions, \nsuch as Instructions for Form 1099-MISC. These instructions are revised annually as new \nversions of the forms are produced. \n \n",
" \n \n \n19 \nInformation Reporting Customer Service Site \n \nThe IRS operates a centralized customer service site to answer questions about reporting \non Forms W-2, W-3, 1099, and other information returns. If you have questions about \nreporting on these forms, call 1-866-455-7438 (toll-free), Monday through Friday, 8:30 \na.m. to 4:30 p.m., Eastern time. \n \nBACKUP WITHHOLDING \nGovernment entities are subject to rules that require payers to withhold income tax of 28% from \ncertain payments if the payee is not exempt from backup withholding and fails to furnish correct \ntaxpayer identification number (TIN). The IRS may also notify a payer to begin backup withholding \nbecause of payee underreporting. \nFailure to follow the backup withholding rules can result in penalties to the payer for filing incorrect \ninformation returns. The payer may also become liable for any uncollected amounts. \nPayments subject to backup withholding include rents, nonemployee compensation for services, \nroyalties, and reportable gross proceeds paid to attorneys, and other fixed or determinable gains, \nprofits, or income payments that are reportable on Form 1099-MISC, Miscellaneous Income. The \ntotal backup withholding is shown in Form 1099-MISC, box 4. \nYou must make an initial solicitation for a TIN when the payee opens an account or when the \ntransaction occurs. Use Form W-9, Request for Taxpayer Identification Number, to request the \ntaxpayer identification number. \nNote: Authorized payers can register for electronic taxpayer identification matching, which \nprovides the opportunity to match Form 1099 payee information against IRS records prior to filing \ninformation returns. For more information, see Publication 2108A. \nBackup withholding may be required immediately if the payee fails to furnish a TIN. In other cases, \nthe payer is instructed to begin backup withholding through notification by the IRS. In general, in \nthe case of any reportable payment, if the payee fails to furnish his taxpayer identification number \nto the payer in the manner required, then the payer must deduct and withhold tax equal to 28% of \nthe payment. The tax collected from backup withholding is reported on Form 945, Annual Return \nof Withheld Income Tax, and is subject to deposit requirements. The deposit rules for backup \nwithholding and other nonpayroll withholding are the same as the rules for depositing employment \ntaxes; however, they are accrued and paid separately. \nThe payer is liable for the payment of the tax required to be deducted and withheld under the \nbackup withholding rules. If the payer fails to deduct and withhold tax at a rate of 28% from a \nreportable payment, and the payee fails to furnish the TIN, the payer is then liable for the payment \nof the tax. \n",
" \n \n \n20 \n\"B\" Notice \n \nIf the IRS sends you a CP2100 or CP2100A Notice indicating an incorrect payee TIN, you are \nrequired to send the “B” Notice to the payer within 15 days from the date you received it, or the \ndate of the CP2100/2100A, whichever is later. See Publication 1281 for details. Begin backup \nwithholding no later than 30 business days after the date of the CP2100 notice or the date you \nreceived it, whichever is later. Stop backup withholding no later than 30 days after the payee \nfurnishes a TIN and certifies that it is correct. \n“C” Notice \n \nIf the IRS sends you a “C” notice indicating notified payee underreporting, you must withhold on \nany reportable payment no later than 30 days after receipt. The IRS will notify you when to stop \nwithholding. \nPayments Exempt from Backup Withholding \nAs noted above, backup withholding does not apply to wages. In addition payments from pension \nor annuity plans, distributions from medical or health savings accounts, certain gambling winnings \nnot subject to other withholding, certain real estate transactions, and other payments are exempt \nfrom the backup withholding rules. See the General Instructions for Certain Information Returns. \nPayees Exempt from Backup Withholding \nGovernment entities are required to backup withhold. However, these entities themselves are not \nsubject to backup withholding by other payers. All of the following entities are exempt: \n An organization exempt from tax under section 501(a), any IRA, or a custodial account \nunder section 403(b)(7) if the account satisfies the requirements of section 401(f)(2). \n The United States or any of its agencies or instrumentalities. \n A state, the District of Columbia, a possession of the United States, or any of their political \nsubdivisions or instrumentalities. \n A foreign government or any of its political subdivisions, agencies, or instrumentalities. \n An international organization or any of its agencies or instrumentalities. \nFor more information, see Publication 1281, Backup Withholding for Missing and Incorrect \nName/TIN(s), and General Instructions for Certain Information Returns. \n \n \n \n \n \n \n \n",
" \n \n \n21 \nSECTION 218 OF THE SOCIAL SECURITY ACT - KEY DATES \n \n Before 1951 - No social security coverage for public employees \n \n 1951 - Section 218 Added to Social Security Act; coverage became available for \npositions not covered under public retirement systems \n \n 1955 – Governmental employers with retirement systems allowed to participate in \n218 coverage \n \n 1966 – Medicare coverage begins; employees covered by a Section 218 \nAgreement or mandatory social security are subject to Medicare tax \n \n Beginning April 20, 1983 - Termination of a Section 218 agreement is prohibited \n \n Beginning April 1, 1986 - Mandatory Medicare coverage applies to all new hires \n \n Beginning July 2, 1991 - Mandatory social security coverage applies unless \nemployees participate in a qualifying retirement system or are covered by a \nSection 218 Agreement \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n",
" \n \n \n22 \nSOCIAL SECURITY COVERAGE \n \nThis chart is meant as a guide only and is not a substitute for discussing difficult Section 218 coverage situations with \nyour State Social Security Administrator or taxation issues with your IRS FSLG agent. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 1Mandatory Exclusions from Social Security and Medicare (FICA) coverage \n Services performed: \n \nby individuals hired solely to be relieved from unemployment \n \nin a hospital, home or other institution by a patient or inmate \n \nby workers hired on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar \nemergency \n \nby non-resident aliens with F-1, J-1, M-1 & Q-1 visas \n \nin positions compensated solely by fees that are subject to SECA \n \n(NOTE: These services may be covered by a 218 Agreement and subject to FICA.) \n \nby students2 enrolled and regularly attending classes at the school where they are working \n \n(NOTE: These services may be covered by a 218 Agreement and subject to FICA.) \n \nby election workers3 paid less than the threshold amount mandated by law \n \n(NOTE: These services may be covered by a 218 Agreement and subject to FICA.) \n \nthat are excluded from definition of employment in Section 210 of the Social Security Act \n \n 4Qualifying Public Retirement System – See information under “Pension Coverage” in this booklet. \nFor more information and discussion of rehired annuitants, see Publication 963, Federal-State Reference Guide. \nAre the services covered by \na Section 218 Agreement? \nAre services mandatory \nexclusions1 from Social \nSecurity and Medicare \ncoverage? \nWithhold \nsocial security \nAND \nMedicare taxes. \nIs employee a member of \na qualifying4 public \nretirement system? \nDo not withhold \nsocial security taxes \n \nWithhold \nMedicare-only if hired after \nMarch 31, 1986. \nDo not withhold social \nsecurity \nOR \nMedicare taxes. \nYes \n \nNo \nYes \nNo \nNo \nYes \nIs employee a student2 \nOR \nan election worker3? \nNo \nYes \nDo not withhold \nsocial security \nOR \nMedicare taxes. \n",
" \n \n \n23 \nMEDICARE COVERAGE \n \nThis chart is meant as a guide only and is not a substitute for discussing difficult Section 218 \ncoverage situations with your State Social Security Administrator or taxation issues with your IRS \nFSLG agent. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1Mandatory Exclusions from Social Security and Medicare (FICA) coverage includes services performed: \n \nby individuals hired solely to be relieved from unemployment \n \nin a hospital, home or other institution by a patient or inmate \n \nby workers hired on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency \n \nby non-resident aliens with F-1, J-1, M-1 & Q-1 visas \nin positions compensated solely by fees that are subject to self-employment tax (SECA) \n2 Student enrolled and regularly attending classes at the school where services are performed \n3 Election worker paid less than the mandatory coverage threshold ($1,600 in 2014) \n4 Qualifies as a social security replacement plan. See section 4, Retirement Plans. \nAre the services covered for \nsocial security and Medicare \nunder a Section 218 Agreement? \nAre services mandatory \nexclusions1 from social \nsecurity and Medicare \ncoverage? \nWithhold \nsocial security \nAND \nMedicare taxes. \nIs employee a member of \na qualifying public \nretirement system? 4 \nWithhold \nMedicare tax only \nDo not withhold \nMedicare tax \n(or social security). \nYes \nHas the employee been in \ncontinuous employment with \nthe same State or local \ngovernment since before \nApril 1, 1986? \nIs the employee covered for \nMedicare-only under a Section \n218 Agreement? \nDo not withhold \nMedicare tax \n(or social security) \nNo \nYes \nIs employee a student2 \nOR \nan election worker3? \nYes \nYes \nNo \nYes \nNo \nYes \nNo \nNo \nNo \n",
" \n \n \n24 \nMORE INFORMATION\n \nOffice of Federal, State and Local Governments (FSLG) \n \nThe IRS office of Federal, State and Local Governments is responsible for ensuring federal tax \ncompliance by federal, quasi-governmental and state agencies; city, county and other units of \nlocal government; and American Samoa, Guam, Puerto Rico and the U.S. Virgin Islands. The \noffice coordinates activities with other IRS offices, such as Customer Account Services, Counsel, \nGovernment Liaison & Disclosure, and Employee Plans to better assist you. Additionally, FSLG \nworks with the Taxpayer Advocate Service to resolve tax problems. \n \nFor more information about FSLG’s outreach and compliance activities, tax law issues and \ndevelopments of interest to government entities, or to locate an FSLG Specialist in your area, visit \nthe FSLG website. \nCustomer Account Services \nYou can call the IRS toll-free at (877) 829-5500 for assistance with the following as they relate to \ngovernment entities: \n \nAccount-related questions \n \nRequest for affirmation letter of tax exemption \n \nRequest for a private letter ruling \n \nFSLG telephone numbers \nHelpful Publications \n \nPublication 15, Employer’s Tax Guide \nPublication 15-A, Employer’s Supplemental Tax Guide \nPublication 15-B, Employer’s Guide to Fringe Benefits \nPublication 963, Federal, State Reference Guide \nPublication 5137, FSLG Fringe Benefit Guide \n \nOther Useful Websites \n \nInternal Revenue Service home page \n \nSocial Security Administration \n \nSocial Security Administration site for state and local government employers \n \nNational Conference of State Social Security Administrators (NCSSSA) \n \n \n"
] |
fw13.pdf
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0114 Form W-13 (PDF)
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https://www.irs.gov/pub/irs-pdf/fw13.pdf
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[
"Form W-13\n(January 2014)\nExSTARS Reporting Information Request for \nEmployer Identification Number and Certification\n Information about Form W-13 and its instructions is at www.irs.gov/formw13.\n▶\nPrint or type\nName (as shown on your tax returns; see instructions)\nBusiness name/disregarded entity name, if different from above\nCheck appropriate box for federal tax classification: \nIndividual/sole proprietor\n C corporation\nS corporation\nPartnership\nTrust/estate\nLimited liability company (see instructions). Enter the tax classification (C=C corporation, S=S corporation, P=partnership) ▶ \nOther (see instructions) ▶ \nAddress (number, street, and apt. or suite no.)\nCity, state, and ZIP code\nRequester’s name and address \nPart I\nEmployer Identification Number (EIN)\nEnter your EIN in the appropriate box. The EIN provided must be for the ExSTARS transaction entity. \nReport the disregarded entity's EIN, not the owner's EIN, when applicable.\nSocial security numbers not permitted in \nExSTARS reporting.\nEmployer identification number \n–\nPart II\nCertification\nUnder penalties of perjury, I certify that the number shown on this form is my correct employer identification number.\nSign \nHere\nSignature of \nU.S. person ▶\nDate ▶\nType or write \nname and title ▶\nSection references are to the Internal Revenue Code unless otherwise noted.\nFuture Developments\nFor the latest information about developments related to Form W-13 \nand its instructions, such as legislation enacted after they were \npublished, go to www.irs.gov/formw13.\nGeneral Instructions\nPurpose of Form\nFilers should use this form to request a valid employer identification \nnumber (EIN) for purposes of Excise Summary Terminal Activity \nReporting System (ExSTARS) reporting.\nA person who is required to file an ExSTARS information return with \nthe IRS must obtain your correct EIN to report. For example, a truck \ncarrier making a delivery to a terminal must provide the carrier \ncompany's EIN to the terminal operator.\nThe receiving party returns the form to the requester after providing a \ncorrect EIN. \nUpdating Your Information\nYou must provide the requester with updated information if the name or \nEIN changes while still engaged in ExSTARS reporting activities.\nPenalties\nFailure to furnish EIN. If you fail to furnish your correct EIN to a \nrequester, you are subject to a penalty of $50 for each such failure \nunless your failure is due to reasonable cause and not to willful neglect.\nCivil penalty for false information with respect to withholding. If you \nmake a false statement with no reasonable basis that results in no \nbackup withholding, you are subject to a $500 penalty.\nCriminal penalty for falsifying information. Willfully falsifying \ncertifications or affirmations may subject you to criminal penalties \nincluding fines and/or imprisonment.\nMisuse of EINs. If the requester discloses or uses EINs in violation of \nfederal law, the requester may be subject to civil and criminal penalties.\nSpecific Instructions\nName\nSole proprietor. Enter your individual name as shown on your income \ntax return on the “Name” line. You may enter your business, trade, or \n“doing business as (DBA)” name on the “Business name/disregarded \nentity name” line.\nPartnership, C corporation, or S corporation. Enter the entity's name \non the “Name” line and any business, trade, or “doing business as \n(DBA) name” on the “Business name/disregarded entity name” line.\nLimited liability company (LLC). If the person identified on the “Name” \nline is an LLC, check the “Limited liability company” box only and enter \nthe appropriate code for the tax classification in the space provided. If \nyou are an LLC that is treated as a partnership for federal tax purposes, \nenter “P” for partnership.\nNote. If you are an LLC that has elected to be treated as a disregarded \nentity separate from its owner under Regulation section 301.7701-3, \ncheck the LLC box and select the appropriate classification of the \ndisregarded entity, not the owner listed in the “Name” line.\nDisregarded entity. Enter the owner's name on the “Name” line. The \nname of the entity entered on the “Name” line should never be a \ndisregarded entity. The name on the “Name” line must be the name \nshown on the income tax return on which the income will be reported. \nFor example, if a foreign LLC that is treated as a disregarded entity for \nU.S. federal tax purposes has a domestic owner, the domestic owner's \nname is required to be provided on the “Name” line. If the direct owner \nof the entity is also a disregarded entity, enter the first owner that is not \ndisregarded for federal tax purposes. Enter the disregarded entity's \nname on the “Business name/disregarded entity name” line. \nNote. Check the appropriate box for the federal tax classification of the \nperson whose name is entered on the “Name” line (Individual/sole \nproprietor, partnership, C corporation, S corporation, trust/estate).\nCat. No. 62958V\nForm W-13 (1-2014)\nDepartment of the Treasury \nInternal Revenue Service \n",
"Form W-13 (1-2014)\nPage 2 \nOther entities. Enter your business name as shown on required federal \ntax documents on the “Name” line. This name should match the name \nshown on the charter or other legal document creating the entity. You \nmay enter any business, trade, or DBA name on the “Business name/\ndisregarded entity name” line.\nPart I. Employer Identification Number (EIN)\nPersons engaging in ExSTARS activities must possess an employer \nidentification number (EIN). Social Security Numbers and “Applied For” \ntype designations are not valid. If you do not have an EIN, see How to \nget an EIN below.\nEnter your EIN in the appropriate box. Enter the EIN associated with \nthe ExSTARS activities.\nHow to get an EIN. If you do not have an EIN, apply for one \nimmediately. Use Form SS-4, Application for Employer Identification \nNumber, to apply for an EIN. You can apply for an EIN online by going \nto www.irs.gov/businesses and clicking on Employer Identification \nNumber (EIN) under Starting a Business. You can get Form SS-4 from \nthe IRS by visiting www.irs.gov/formspubs or by calling 1-800-TAX-\nFORM (1-800-829-3676).\nPart II. Certification\nSignature requirements. Signing Form W-13 certifies that the EIN you \nare providing is correct, and establishes the proper U.S entity engaging \nin ExSTARS activities.\nForm W-13 must be signed by an owner or principal officer. Complete \nthe signature requirement by typing or clearly writing the name and title \nof the signee.\nPrivacy Act Notice\nSection 6109 requires you to provide your correct EIN to persons \n(including federal agencies) who are required to file information returns \nwith the IRS. The person collecting this form uses the information on the \nform to file information returns with the IRS. Routine uses of this \ninformation include giving it to the Department of Justice for civil and \ncriminal litigation and to cities, states, the District of Columbia, and U.S. \ncommonwealths and possessions for use in administering their tax laws. \nThe information also may be disclosed to other countries under a treaty, \nto federal and state agencies to enforce civil and criminal laws, or to \nfederal law enforcement and intelligence agencies to combat terrorism. \nYou must provide your EIN whether or not you are required to file a tax \nreturn. Certain penalties may also apply for providing false or fraudulent \ninformation.\nIf you have comments concerning the accuracy of these time \nestimates or suggestions for making this form simpler, we would be \nhappy to hear from you. You can send your comments from \nwww.irs.gov/formspubs/. Click on \"More Information\" and then on \n\"Comment on Tax Forms and Publications.\" You can also write to:\nInternal Revenue Service \nTax Forms and Publications \n1111 Constitution Ave. NW, IR-6526 \nWashington, DC 20224\nDo not send the form to this address. Instead, see Purpose of Form.\nWe respond to many letters by telephone. Therefore, it would be \nhelpful if you would include your daytime phone number, including the \narea code, in your correspondence.\nAlthough we cannot respond individually to each comment received, \nwe do appreciate your feedback and will consider your comments as we \nrevise our tax products.\n"
] |
f8876.pdf
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1213 Form 8876 (PDF)
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https://www.irs.gov/pub/irs-pdf/f8876.pdf
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[
"Form 8876\n(Rev. December 2013)\nDepartment of the Treasury \nInternal Revenue Service \nExcise Tax on Structured \nSettlement Factoring Transactions\n▶ Information about Form 8876 and its instructions is at www.irs.gov/form8876.\nOMB No. 1545-1826\nDate of receipt of structured settlement payment rights .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶\nPlease \nType \nor \nPrint \nName \nIdentifying number \nNumber, street, and room or suite no. (If a P.O. box, see instructions.) \nCity or town, state or province, country, and ZIP or foreign postal code\n1 \nTotal undiscounted amount of structured settlement payments being acquired .\n.\n.\n.\n.\n.\n1 \n2 \nTotal amount paid for the above structured settlement payment rights .\n.\n.\n.\n.\n.\n.\n.\n.\n2 \n3 \nFactoring discount. Subtract line 2 from line 1 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3 \n4 \nTax. Multiply line 3 by 40% (.40) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4 \n5 \nLess: Tax paid with Form 7004 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5 \n6 \nTax due. Subtract line 5 from line 4. If zero or less, enter -0- .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n6 \n7 \nOverpayment. If line 5 is greater than line 4, subtract line 4 from line 5 \n.\n.\n.\n.\n.\n.\n.\n.\n7 \nSign \nHere \nUnder penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my \nknowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any \nknowledge.\n▲\nSignature\nDate\n▲\nTitle (if any)\nPaid \nPreparer \nUse Only\nPrint/Type preparer’s name\nPreparer's signature\nDate\nCheck if \nself-employed\nPTIN\nFirm’s name ▶\nFirm's EIN ▶\nFirm's address ▶\nPhone no.\nSection references are to the Internal \nRevenue Code unless otherwise noted. \nFuture Developments\nFor the latest information about developments \nrelated to Form 8876 and its instructions, \nsuch as legislation enacted after they were \npublished, go to www.irs.gov/form8876.\nGeneral Instructions \nPurpose of Form \nUse Form 8876 to report and pay the 40% \nexcise tax imposed under section 5891 on the \nfactoring discount of a structured settlement \nfactoring transaction. File a separate Form \n8876 for each date on which you received \nstructured settlement payment rights in one \nor more structured settlement factoring \ntransactions. \nDefinitions \nStructured settlement. A structured \nsettlement is an arrangement: \n• Established (a) by suit or agreement for the \nperiodic payment of damages excludable \nfrom the gross income of the recipient under \nsection 104(a)(2) or (b) by agreement for the \nperiodic payment of compensation under any \nworkers’ compensation law excludable from \nthe gross income of the recipient under \nsection 104(a)(1); and \n• Under which the periodic payments are (a) \nof the character described in section 130(c)(2)\n(A) and (B) and (b) payable by a person who is \na party to the suit or agreement or to the \nworkers’ compensation claim or by a person \nwho has assumed the liability for such \nperiodic payments under a qualified \nassignment in accordance with section 130. \nStructured settlement factoring \ntransaction. A structured settlement \nfactoring transaction is a transfer of \nstructured settlement payment rights \n(including portions of structured settlement \npayments) made for consideration by means \nof sale, assignment, pledge, or other form of \nencumbrance or alienation for consideration. \nThe following are not structured settlement \nfactoring transactions. \n• The creation or perfection of a security \ninterest in structured settlement payment \nrights under a blanket security agreement \nentered into with an insured depository \ninstitution in the absence of any action to \nredirect the structured settlement payments \nto that institution (or agent or successor \nthereof) or otherwise to enforce such blanket \nsecurity interest as against the structured \nsettlement payment rights. \n• A subsequent transfer of structured \nsettlement payment rights acquired in a \nstructured settlement factoring transaction. \nStructured settlement payment rights. \nStructured settlement payment rights are \nrights to receive payments under a structured \nsettlement.\nFactoring discount. The factoring discount is \nthe difference between the total undiscounted \namount of structured settlement payments \nbeing acquired (line 1) and the total amount \npaid by the acquirer to the person(s) from \nwhom the structured settlement payment \nrights are acquired (line 2).\nQualified order. A qualified order is a final \norder, judgment, or decree that:\nFor Privacy Act and Paperwork Reduction Act Notice, see instructions. \nCat. No. 33529K \nForm 8876 (Rev. 12-2013) \n",
"Form 8876 (Rev. 12-2013) \nPage 2 \n• Finds that the transfer of structured \nsettlement payment rights does not \ncontravene any federal or state statute or the \norder of any court or responsible \nadministrative authority, and is in the best \ninterest of the payee, taking into account the \nwelfare and support of the payee’s \ndependents; and\n• Is issued under the authority of an \napplicable state statute by an applicable state \ncourt, or by the responsible administrative \nauthority (if any) that has exclusive jurisdiction \nover the underlying action or proceeding that \nwas resolved by means of the structured \nsettlement. \nWho Must File \nGenerally, you must file Form 8876 if you \nacquire directly or indirectly structured \nsettlement payment rights in a structured \nsettlement factoring transaction entered into \nafter February 21, 2002. However, do not file \nForm 8876 if the transfer of structured \nsettlement payment rights was approved in \nadvance in a qualified order, as no excise tax \nis due. \nWhen To File \nFile Form 8876 by the 90th day following the \nreceipt of structured settlement payment \nrights in a structured settlement factoring \ntransaction. \nIf you need more time, file Form 7004, \nApplication for Automatic Extension of Time \nTo File Certain Business Income Tax, \nInformation, and Other Returns, by the due \ndate of Form 8876. Form 7004 does not \nextend the time for payment of tax. \nWhere To File \nSend Form 8876 to the following address:\nInternal Revenue Service Center \nCincinnati, OH 45999\nRounding Off to Whole Dollars \nYou can round off cents to whole dollars on \nyour return and schedules. If you do round to \nwhole dollars, you must round all amounts. To \nround, drop amounts under 50 cents and \nincrease amounts from 50 to 99 cents to the \nnext dollar. For example, $1.39 becomes $1 \nand $2.50 becomes $3. \nIf you have to add two or more amounts to \nfigure the amount to enter on a line, include \ncents when adding the amounts and round off \nonly the total. \nAmended Return \nTo amend a previously filed Form 8876, file a \ncorrected Form 8876 and write “Amended” at \nthe top of the form. \nInterest and Penalties \nInterest. Interest is charged on taxes not paid \nby the due date at a rate determined under \nsection 6621. \nLate filing of return. Generally, a penalty of \n5% a month or part of a month, up to a \nmaximum of 25%, is imposed on the net \namount due if Form 8876 is not filed when \ndue. This penalty will not be imposed if you \nhave reasonable cause for not filing on time. \nIf you do, attach an explanation. \nLate payment of tax. Generally, the penalty \nfor not paying tax when due is 1/2 of 1% of \nthe unpaid amount, up to a maximum of 25%, \nfor each month or part of a month the tax \nremains unpaid. The penalty is imposed on \nthe net amount due. This penalty will not be \nimposed if you have reasonable cause for not \npaying on time. \nAdditional Information \nFor more details, see section 5891 and \nRegulations section 157.5891-1. \nSpecific Instructions \nName and address. Enter the name shown \non your most recently filed federal income tax \nreturn. If the Post Office does not deliver mail \nto the street address and you have a P.O. \nbox, show the box number instead of the \nstreet address. \nForeign Address. Follow the country's \npractice for entering the postal code. In some \ncountries the postal code may come before \nthe city or town name. Enter the full name of \nthe country using uppercase letters in English. \nIdentifying number. If you are an individual, \nenter your social security number. Other filers \nshould enter their employer identification \nnumber. \nLine 5. Tax paid with Form 7004. If you filed \nForm 7004 for the payment rights received on \nthe date shown on the top of this Form 8876, \nenter the amount of tax paid, if any, when you \nfiled that extension application. \nLine 6. Tax due. Make your check or money \norder payable to “United States Treasury.” \nWrite your name, address, identifying number, \nand “Form 8876” on the check or money \norder. \nLine 7. Overpayment. The IRS will refund the \namount on line 7 (to the extent you owe no \nother taxes). \nSignature. For information on who must sign \nForm 8876, see the instructions for the \nsignature section of your federal income tax \nreturn. \nPaid Preparer Use Only\nA paid preparer must sign Form 8876 and \nprovide the information in the Paid Preparer \nUse Only section at the end of the form if the \npreparer was paid to prepare the form and is \nnot an employee of the filing entity. The \npreparer must give you a copy of the form in \naddition to the copy to be filed with the IRS.\nIf you are a paid preparer, enter your \nPreparer Tax Identification Number (PTIN) in \nthe space provided. If you work for a tax \npreparation firm, you must also enter the \nfirm's name, address, and EIN. However, you \ncannot use the PTIN of the tax preparation \nfirm in place of your PTIN.\nYou can apply for a PTIN online or by filing \nForm W-12, IRS Paid Preparer Tax \nIdentification Number (PTIN) Application and \nRenewal. For more information about applying \nfor a PTIN online, visit the IRS website at \nwww.irs.gov/ptin.\nPrivacy Act and Paperwork Reduction Act \nNotice. We ask for the information on this \nform to carry out the Internal Revenue laws of \nthe United States. We need it to figure and \ncollect the right amount of tax. If you do not \nfile a return, do not provide the information we \nask for, or provide fraudulent information, you \nmay be subject to penalties.\nOur legal right to ask for information is \nsections 6001, 6011, and 6012(a) and their \nregulations, which require you to file a return \nor statement with us for any tax for which you \nare liable. Your response is mandatory under \nthese sections. Section 6109 requires you to \nprovide your identifying number. You must fill \nin all parts of the form that apply to you. \nYou are not required to provide the \ninformation requested on a form that is \nsubject to the Paperwork Reduction Act \nunless the form displays a valid OMB control \nnumber. Books or records relating to a form \nor its instructions must be retained as long as \ntheir contents may become material in the \nadministration of any Internal Revenue law. \nWe ask for the information on this form to \ncarry out the tax laws of the United States. \nGenerally, tax returns and return \ninformation are confidential, as required by \nsection 6103. However, section 6103 allows \nor requires the IRS to disclose or give the \ninformation shown on your tax return to \nothers as described there. For example, we \nmay disclose your tax information to the \nDepartment of Justice to enforce the tax laws, \nboth civil and criminal, and to cities, states, \nthe District of Columbia, and U.S. \ncommonwealths or possessions to administer \ntheir tax laws. We may also disclose this \ninformation to other countries under a tax \ntreaty, to federal and state agencies to \nenforce federal nontax criminal laws, or to \nfederal law enforcement and intelligence \nagencies to combat terrorism. \nThe time needed to complete and file this \nform will vary depending on individual \ncircumstances. The estimated average time is:\nRecordkeeping \n.\n.\n.\n.\n 3 hr., 6 min. \nLearning about the law \nor the form \n.\n.\n.\n.\n.\n 1 hr., 12 min. \nPreparing, copying, \nassembling, and sending \nthe form to the IRS \n.\n.\n.\n1 hr., 17 min. \nIf you have comments concerning the \naccuracy of these time estimates or \nsuggestions for making this form simpler, we \nwould be happy to hear from you. You can \nsend your comments from www.irs.gov/\nformspubs/. Click on “More Information” and \nthen on “Comment on Tax Forms and \nPublications.” You can also write to: \nInternal Revenue Service \nTax Forms and Publications \n1111 Constitution Ave. NW \nIR-6526 \nWashington, DC 20224\nDo not send the tax form to this address. \nInstead, see Where To File, earlier. \n"
] |
f8809ex.pdf
|
0114 Form 8809-EX (PDF) 1
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https://www.irs.gov/pub/irs-pdf/f8809ex.pdf
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[
"Form 8809-EX\n(January 2014)\nDepartment of the Treasury \nInternal Revenue Service \nRequest for Extension of Time To \nFile an ExSTARS Information Return \n(For Form 720-TO or Form 720-CS)\n▶ Information about Form 8809-EX and its instructions is at www.irs.gov/form8809ex.\nOMB No. 1545-1733\nOFFICIAL USE ONLY\nDetermination Date\nApproved\nDenied\nPrint \nor \nType \n1. Filer information\nName\nAddress (number, street, and apt. or suite no.) \nCity\nState\nZIP code\nContact name\nTelephone number\nForm 637 registration number\n2. Employer identification number \n3. Filing period\n4. Type of extension request (check one)\nForm 720-TO\nForm 720-CS\nCombined filing\n5. Request type (check one)\nInitial \nAdditional\nNote. File this form by the required return due date.\n6.\nExtension request reason: Provide a brief but clear reason for the extension request. The IRS will automatically deny an application for an \nextension that is submitted without a reason(s). Use additional sheets if necessary and include your name and employer identification number on \neach page. For a combined filing, provide a reason for the extension request for each return. \nUnder penalties of perjury, I declare that I have examined this form, including any accompanying statements, and, to the best of my knowledge and belief, it is true, correct, and \ncomplete.\nSignature ▶\nTitle ▶\nDate ▶\nSection references are to the Internal Revenue Code unless \notherwise noted.\nFuture Developments\nFor the latest information about developments related to Form \n8809-EX and its instructions, such as legislation enacted after they \nwere published, go to www.irs.gov/form8809EX.\nGeneral Instructions\nPurpose of form. Use Form 8809-EX to request a 30-day extension \nof time to file an Excise Summary Terminal Activity Reporting \nSystem (ExSTARS) information report (Form 720-TO, Terminal \nOperator Report, or Form 720-CS, Carrier Summary Report).\nHow to file. All requests must include an extension reason. All initial \n30-day requests will be honored except for those without a reason.\nWhen to file. File this form with the IRS on or before the due date of \nthe return. If you are requesting an extension of time to file both \nForm 720-TO and Form 720-CS, you may use one Form 8809-EX.\nExtension period. The automatic extension is 30 days from the \noriginal due date. You may request one additional extension of not \nmore than 30 days by submitting a second Form 8809-EX before \nthe end of the first extension period (see Line 5, later). Requests for \nan additional extension of time to file information returns are not \nautomatically granted. Generally, the IRS will not grant additional \ntime except in cases of extreme hardship or catastrophic event.\nFor Privacy Act and Paperwork Reduction Act Notice, see instructions.\nCat. No. 62959G\nForm 8809-EX (1-2014)\n",
"Form 8809-EX (1-2014)\nPage 2\nIf we deny your request, we will send a letter to your address on \nrecord with an explanation for denial. Failure to update a change of \naddress may result in a late filing penalty. See Where To File, below, \nfor the address to send your change of address or any other \nExSTARS correspondence. If we do not send you a letter of denial, \nyou may consider your extension request to be approved.\nExtension denials. If we deny an application for extension of time \nto file, the information provider must file the return by the required \nfiling date or within 1 business day from the official denial date, \nwhichever is later. \nPenalty. If you file required information returns late and you have \nnot applied for and received an approved extension of time to file, \nyou may be subject to a late filing penalty. The amount of the \npenalty is based on when you file the correct information return.\nWhere to file. To request an extension, send Form 8809-EX to one \nof the following addresses. Also send your change of address or \nany other ExSTARS correspondence to these addresses.\nMail\nEmail\nInternal Revenue Service \nAttn: Excise Unit-Stop 5701G \nCincinnati, OH 45999\[email protected]\nSpecific Instructions\nLine 1. Filer Information, and Form 637 Registration \nNumber\nEnter the name and complete mailing address, including room or \nsuite number used to file your ExSTARS returns or the address on \nyour most recently submitted change of address.\nEnter the name of a person who is familiar with this request whom \nwe can contact if additional information is required. Please provide \nthat person's telephone number and email address. \nForm 637 registration number. Enter the assigned IRS \nregistration number. Regulations section 48.4101-1(c) requires \nterminal operators and bulk transport carriers to be registered by \nthe IRS. If you do not have a registration number, use Form 637, \nApplication for Registration (For Certain Excise Tax Activities), to \napply for one.\nLine 2. You must provide your employer identification number \n(EIN). Social Security Numbers and \"Applied For\" type designations \nare not valid. If you do not have an EIN, you may apply for one \nonline. Go to the IRS website at www.irs.gov/businesses/small and \nclick on the \"Employer ID Numbers (EINs)\" link. \nEnter the EIN associated with the ExSTARS activities.\n▲\n!\nCAUTION\nThe name and employer identification number (EIN) \nmust match the name and EIN used on your ExSTARS \nreturns. \nLine 3. Enter the filing period for which you are requesting an \nextension of time.\nLine 4. Check the box for the form for which an extension is \nrequested or the box marked “Combined filing,” if an extension for \nboth returns is requested. Check only one box. \nLine 5. Check the box marked “Initial” if this is your first request for \nan extension of time. Check the box marked \"Additional\" if you have \nalready received the initial 30-day extension, and you need an \nadditional extension for the same return(s). \nPrivacy Act and Paperwork Reduction Act Notice. We ask for the \ninformation on this form to carry out the Internal Revenue laws of \nthe United States. Form 8809-EX is provided by the IRS to request \nan extension of time to file information returns. Section 6081 and its \nregulations require you to provide the requested information if you \ndesire an extension of time for filing an information return. If you do \nnot provide the requested information, an extension of time for filing \nan information return may not be granted. Section 6109 requires \nyou to provide your EIN. Routine uses of this information include \ngiving it to the Department of Justice for civil and criminal litigation, \nand to cities, states, the District of Columbia, and U.S. \ncommonwealths and possessions for use in administering their tax \nlaws. We may also disclose this information to other countries under \na tax treaty, or to federal and state agencies to enforce federal \nnontax criminal laws, or to federal law enforcement and intelligence \nagencies to combat terrorism. \nYou are not required to provide the information requested on a \nform that is subject to the Paperwork Reduction Act unless the form \ndisplays a valid OMB control number. Books or records relating to a \nform or its instructions must be retained as long as their contents \nmay become material in the administration of any internal revenue \nlaw. Generally, tax returns and return information are confidential, \nas required by section 6103.\nThe time needed to complete and file this form will vary \ndepending on individual circumstances. The estimated average time \nis:\nRecordkeeping .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n0 hrs., 0 min.\nLearning about the law or the form \n.\n.\n.\n.\n.\n.\n.\n 7 min.\nPreparing and sending the form to the IRS .\n.\n.\n.\n. 20 min.\nIf you have comments concerning the accuracy of these time \nestimates or suggestions for making this form simpler, we would be \nhappy to hear from you. You can send your comments from \nwww.irs.gov/formspubs/. Click on \"More Information\" and then on \n\"Comment on Tax Forms and Publications.\" You can also write to: \nInternal Revenue Service \nTax Forms and Publications \n1111 Constitution Ave. NW, IR-6526 \nWashington, DC 20224\nDo not send the form to this address. Instead, see Where To File \nabove.\nWe respond to many letters by telephone. Therefore, it would be \nhelpful if you would include your daytime phone number, including \nthe area code, in your correspondence.\nAlthough we cannot respond individually to each comment \nreceived, we do appreciate your feedback and will consider your \ncomments as we revise our tax products.\n"
] |
p1468.pdf
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0114 Publ 1468 (PDF)
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https://www.irs.gov/pub/irs-pdf/p1468.pdf
|
[
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nDepartment of the Treasury \nINTERNAL REVENUE SERVICE \nGuidelines for Processing \nNotice of Federal Tax Lien Documents \nCONTENTS \nIRS Contact Information .......................................................................................... 2 \nCentralized Lien Operation ..................................................................................... 2 \nThe Federal Tax Lien Process ................................................................................ 3 \nProcedures for a Tax Lien Release and Request for Balance Due ........................ 7 \nInformation for Recording Lien Documents ............................................................. 9 \nSocial Security Number Redaction for Lien Documents........................................ 12 \nPayment Process for Recording Lien Documents ................................................ 13 \nAppendix A, Recording Office Notification to IRS ................................................. 15 \nAppendix B, Certificates Related to Notices of Federal Tax Lien ......................... 16 \nAppendix C, Researching Taxpayer Index ............................................................ 17 \nAppendix D, Additional Resources ....................................................................... 19 \nThis document is intended to provide information about the centralized IRS lien processes and to ensure \nthat federal tax lien documents are timely filed, properly recorded, and their filing fees promptly paid. Any \nnames used for examples or illustrations in this publication are fictional and do not represent any real \npersons or entities. \nUpdates have been made throughout this document. Notable changes since the last revision include: \nPg 3 \nRefiling a Notice of Federal Tax Lien \nPg 5 \nWithdrawal of Notice of Federal Tax Lien after Release \nPg 6 \nNotice of Federal Estate Tax Lien \nPg 10 “Lost” Notices of Federal Tax Lien \nPg 10 Archiving/Purging Federal Tax Lien Documents \nPg 14 Treasury Offset Program \nPg 17 Researching Taxpayer Index \n \n \nThis document is current through the publication date. Changes that may occur after the publication date \nwill be communicated to the impacted recording office(s) and will be included in the next revision of this \ndocument. The most current revision of this document can be found\n \n at www.irs.gov. \n \n \n \n \nNote: This document is NOT for recordation. \nInternal Revenue Service, Department of the Treasury \nwww.irs.gov \nPublication 1468 (01-2014), Catalog Number 26468Q \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nIRS CENTRALIZED LIEN OPERATION CONTACT INFORMATION \nPlease contact the Centralized Lien Operation with any questions or concerns regarding lien documents \nusing the following information: \nMailing address: \n \nInternal Revenue Service \nCentralized Lien Operation \nP.O. Box 145595 \nStop 8420G \nCincinnati, OH 45250-5595 \nToll free phone number for taxpayers: \n1-800-913-6050 \nToll free phone number for recording offices: \n1-800-913-4170 \nCENTRALIZED LIEN OPERATION \nThe Centralized Lien Processing Operation at the Cincinnati IRS Campus is part of the Small \nBusiness/Self-Employed (SB/SE) Campus Compliance Services Operations (CCSO) Division. \nEmployees in this department send out Notices of Federal Tax Lien to recording offices for filing. They \nalso process requests for all notices of lien and releases. Employees handle telephone inquiries and \ncorrespondence from taxpayers, their representatives and recording offices. They also assist IRS field \npersonnel with processing certain lien documents related to the Notice of Federal Tax Lien such as \namendments, withdrawals, refiles, and revocations. \nThe Centralized Lien Operation staff is authorized by the IRS to contact recording offices for the purpose \nof resolving problems concerning the filing of Notices of Federal Tax Lien, Notices of Federal Estate Tax \nLien, and related documents. They are authorized access to all federal tax information contained in, and \nrelated to, such notices of lien and related documents. Recording offices may disclose information \ncontained in such notices of lien and documents, to the extent necessary to resolve any problems, with \nand only with those employees. \n2 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nTHE FEDERAL TAX LIEN PROCESS \nDefinition of a Federal Tax Lien \nThe federal tax lien gives the IRS a legal claim to all of the taxpayer’s property for the amount of the tax \nliability. The federal tax lien arises when the tax liability has been assessed, a demand is made for its \npayment, and the taxpayer does not pay it. \nFiling a Notice of Federal Tax Lien \nA Notice of Federal Tax Lien is a document filed with the local recording office that identifies tax liabilities \nowed by the taxpayer. Each notice of lien document can reflect up to 15 different tax liabilities that have \nbeen assessed. \nFiling the Notice of Federal Tax Lien (or “notice of lien”) is necessary to establish priority rights against \ncertain other creditors. If the taxpayer owes money to other creditors, they may also hold liens or secured \nrights against a taxpayer’s assets. \nBy filing the Notice of Federal Tax Lien, other creditors are put on notice that the United States \ngovernment has a claim against all property, and any rights to property, of the taxpayer. This includes \nproperty owned at the time the notice of lien is filed or acquired thereafter. This notice is used by courts to \nestablish priority in many situations, including bankruptcy proceedings or sales of real estate. \nIt is critical that local recording offices ensure that Notices of Federal Tax Liens are promptly filed and \nproperly recorded. Failure to file and properly record the notice of lien in the local recording office may \nnegatively impact the United States, persons with an interest in the taxpayer’s property, creditors that rely \non the public record, and the taxpayer in general. Proper handling of the notice of lien is extremely \nimportant. \nRefiling a Notice of Federal Tax Lien \nGenerally the IRS can pursue collection of a tax liability up to 10 years from the date it was assessed. A \nNotice of Federal Tax Lien may be filed any time within that 10-year period. There are certain events that \nmay extend the time period for collection beyond 10 years. To continue its effectiveness, the notice of \nlien may be refiled with a Notice of Federal Tax Lien Refile. Timely refiling ensures the IRS retains its \npriority in relation to the taxpayer’s property. \nThe notice of lien contains a column titled “Last Day for Refiling” that shows when a refile must be filed for \neach liability listed. This date, which is established by law, is 10 years from the date the liability was \nassessed plus 30 days. Subsequent refile deadlines, if applicable, are 10 years after the expiration of the \nprevious refile period. \nThere may be instances of notices of lien being filed with showing “n/a” as the “Last Day for Refiling.” \nAlthough not specifically stated, the time period for refiling that notice of lien is the same as any other \nnotice of lien. \nReleasing a Lien \nThe IRS issues a Certificate of Release of the Federal Tax Lien no later than 30 days after: \n• \nthe taxpayer satisfies the tax liability (including tax, penalty, interest, and other additions) or the \nliability becomes legally unenforceable; or \n• \nthe IRS accepts a bond guaranteeing payment of the debt. \n3 \n",
"Guidelines for Processing Notice of Federal Tax Lien Documents \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nAfter a Notice of Federal Tax Lien is filed, the IRS cannot issue a Certificate of Release of Federal Tax \nLien until a condition for release, as noted above, is met. The taxpayer must also pay all fees that a \nrecording office charges to file and release the lien. \nSelf-Releasing Liens \nA federal tax lien usually releases automatically 10 years after a tax is assessed if the statutory period for \ncollection has not been extended and the IRS does not extend the effect of the Notice of Federal Tax Lien \nby refiling it. When a lien is self-released, the Notice of Federal Tax Lien itself is the release document. \nThe lien is self-released if: \n• \nthe date for refiling has passed, and \n• \nthe IRS has not refiled the Notice of Federal Tax Lien. \nTaxpayers should check the column titled “Last Day for Refiling” on the Notice of Federal Tax Lien to \ndetermine if the lien is self-released. The IRS recommends that recording offices provide the requestor \nwith a copy of the Notice of Federal Tax Lien and identify the self-releasing language, which is directly \nunder the name and address on the lien document. \nNote that since a notice of lien may include multiple liabilities, each will have its own self-release point. \nThe notice of lien will not be considered fully released until all the liabilities shown have been satisfied or \nself-released. \nPartial Releases \nMany Notices of Federal Tax Lien are filed showing more than one taxpayer. These are situations where \nthe tax liability is owed by more than one person. Occasionally, one of the persons shown on the notice \nof lien resolves all or part of their liability, but the other person(s) shown on the notice of lien still owes the \nliability. In these situations, a Certificate of Release of Federal Tax Lien annotated “Partial” may be \nissued. \nThe Partial release document removes only the person identified from the effects of the lien and only with \nrespect to the liability(s) specified. The lien remains in full effect against the other person(s) shown on the \nnotice of lien. \nSimilar to the above instance, many Notices of Federal Tax Lien show more than one tax liability because \nthe taxpayer owes multiple liabilities. Occasionally, some, but not all, of the liabilities shown on the notice \nof lien are satisfied, but the remainder of the liabilities are still owed. Although the IRS normally waits for \nall the liabilities on the notice of lien to be satisfied before releasing the lien, there are circumstances \nwhere a Certificate of Release of Federal Tax Lien annotated “Partial” may be issued only for the \nliabilities satisfied. Such a Partial release document only removes the effects of the lien relative to the tax \nliabilities specified. The lien otherwise remains in full effect. \nCare should be taken in recording a Partial release document so it is not confused with a full release of \nthe lien. \nRevocation of Release of Notice of Federal Tax Lien \nIf the IRS erroneously issues a Certificate of Release of Federal Tax Lien, issues a release in connection \nwith a collateral agreement associated with an offer-in-compromise that has been breached, or does not \ntimely refile the notice of lien thus allowing it to inadvertently self-release, the IRS may revoke the \nrelease. \n4 \n",
"Guidelines for Processing Notice of Federal Tax Lien Documents \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nA Revocation of Certificate of Release of Federal Tax Lien is filed with the recording office as part of the \nprocess to reinstate the federal tax lien. Usually a new Notice of Federal Tax Lien is then filed to again to \nput the public on notice of the IRS’ claim on the taxpayer’s property. \nWhen a lien release is revoked, the federal tax lien becomes effective as of the date it is reinstated, not \nthe date when the lien originally arose. Similarly, the Notice of Federal Tax Lien is effective as of the date \nwhen the new notice of lien is filed, not the original filing date. \nIn some situations, a Notice of Federal Tax Lien may be filed for the same tax liabilities in multiple \nrecording offices. For example, the taxpayer owns real property in multiple jurisdictions. If the lien is \nerroneously released in one location, it effectively extinguishes the lien in all locations. In these situations, \nthe IRS must file a Revocation of Certificate of Release of Federal Tax Lien in all the locations where a \nsimilar Notice of Federal Tax Lien was filed. Therefore, on occasion a recording office may receive a \nRevocation of Certificate of Release of Federal Tax Lien even though its records do not show the lien as \nreleased. When this occurs, the Revocation document must still be processed. \nWithdrawal of Notice of Federal Tax Lien \nThe IRS may withdraw a filed Notice of Federal Tax Lien if certain provisions found in the Internal \nRevenue Code are established \nThe IRS files the Withdrawal of Filed Notice of Federal Tax Lien with the applicable recording office, \nprovides a copy of the withdrawal certificate to the taxpayer, and, if the taxpayer sends a written request, \nsends a copy to any credit reporting agency, financial institution, or other creditor the taxpayer indicates. \nTaxpayers may apply for a withdrawal using IRS Form 12277, Application for Withdrawal of Filed Form \n668(Y), Notice of Federal Tax Lien. \nWithdrawal of Notice of Federal Tax Lien After Release \nThe IRS may withdraw a Notice of Federal Tax Lien after it has been released if the: \n• Notice was filed prematurely or not according to IRS procedures; or \n• Withdrawal would be in the best interest of the taxpayer and the government. \nThe IRS processes the withdrawal after release in the same manner that it does other withdrawals. \nCertificate of Discharge of Property from the Federal Tax Lien \nThe federal tax lien attaches to all the property of the taxpayer. At times it may be appropriate to remove \n(or discharge) a specific piece of the property from the effects of the federal tax lien. Most often this \noccurs when the taxpayer is transferring ownership of property subject to a Federal tax lien to a third \nparty purchaser and the interests of the United States are provided for in the transaction. \nWhen certain conditions are met, the IRS can issue a Certificate of Discharge of Property from the \nFederal Tax Lien. Each certificate of discharge specifies the property that is being removed from the \neffects of the federal tax lien. \nIt is important to note that a certificate of discharge does not affect the life of the Notice of Federal Tax \nLien. It does not extinguish the tax liability, it does not remove the federal tax lien from other affected \nproperty, nor does it preclude the IRS from determining additional tax or penalties. A certificate of \ndischarge only removes the specifically described property from the effects of the lien. \n5 \n",
"Guidelines for Processing Notice of Federal Tax Lien Documents \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nThe taxpayer may apply for a certificate of discharge following the instructions in IRS Publication 783, \nInstructions on How to Apply for a Certificate of Discharge of Property from the Federal Tax Lien. In \ncertain circumstances, a third party may also request a certificate of discharge. \nCertificate of Subordination of Federal Tax Lien \nCreditors may refuse to extend credit to the taxpayer unless they are assured their encumbrance will \nhave priority over the federal tax lien. For example, a taxpayer is trying to obtain a second mortgage but \nthere is a notice of lien against the taxpayer that would give the IRS a priority over the mortgage. \nSubordination is the process where a federal tax lien becomes secondary to another encumbrance with \nregard to specific property. \nWhen certain conditions are met, the IRS can issue a Certificate of Subordination from the Federal Tax \nLien. Each certificate of subordination specifies the encumbrance that is being given priority over the \nfederal tax lien and the property on which the IRS is subordinating its interest. \nTaxpayers may apply for a subordination following the instructions in IRS Publication 784, How to \nPrepare Application for Certificate of Subordination of Federal Tax Lien. \nCertificate of Nonattachment of Federal Tax Lien \nIf a third party believes a Notice of Federal Tax Lien incorrectly appears to have been filed against them, \nthe third party can request a Certificate of Nonattachment of Federal Tax Lien. This typically occurs when \nthe name of the third party is similar or identical to the name of the taxpayer shown on the Notice of \nFederal Tax Lien. \nThe certificate of nonattachment specifies the Notice of Federal Tax Lien involved, the impacted third \nparty, and normally the property believed to be attached by the federal tax lien. If it is later determined \nthat the federal tax lien did attach the property described, the certificate of nonattachment may be \nrevoked in the same manner that a certificate of release is revoked. \nThird parties may apply for a nonattachment following the instructions in IRS Publication 1024, How to \nPrepare an Application for Certificate of Nonattachment of Federal Tax Lien. \nNotice of Federal Tax Lien against a Nominee or Alter Ego \nOccasionally, the IRS finds that property of the taxpayer is being held in the name of a third party. When \nthe circumstances support the finding, the IRS may determine that a Notice of Federal Tax Lien should be \nfiled to encumber the property. \nA Nominee Notice of Federal Tax Lien is filed using the standard notice of lien form but is annotated to \nindicate the situation. The name line of the form reflects the third party’s name and identifies them as a \nnominee of the taxpayer. Also, the specific property being attached by the lien is normally identified in the \nbody of the form or on an attachment. \nAn Alter Ego Notice of Federal Tax Lien is likewise filed using the standard form. The name line reflects \nthe third party’s name and identifies them as an alter ego of the taxpayer. Alter ego notices of lien are not \nproperty specific so there is no identification of the property involved. \nNotice of Federal Estate Tax Lien \nA federal estate tax lien arises when an individual dies. It gives the IRS a claim on the assets that are \npart of the decedent’s gross estate that are required to be reported on the Estate Tax Return. Like the \nfederal tax lien described above, the federal estate tax lien is a statutory lien that does not need to be \nfiled to be effective. \n6 \n",
"Guidelines for Processing Notice of Federal Tax Lien Documents \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nThe Notice of Federal Estate Tax Lien is filed to protect the interests of the United States. Although \ngenerally filed in the same manner, this lien document differs significantly from the more common Notice \nof Federal Tax Lien. \nThe Notice of Federal Estate Tax Lien is a property specific lien and describes the property it attaches. \nThere is no designated time limit for the Notice of Federal Estate Tax Lien, so it does not expire after a \ncertain period of time. It often remains valid for more than 10 years from when it is filed. Also, the Notice \nof Federal Estate Tax Lien does not contain self-releasing language and it does not need to be refiled to \nremain valid. A Notice of Federal Estate Tax Lien is valid until a certificate of release is filed. \nCertificate of Discharge for Estate Tax Liens \nWhen an estate is transferring ownership of property subject to the recorded or unrecorded statutory \nestate tax lien, it may apply for a certificate of discharge. Provided certain conditions are met, the estate \nmay receive a Certificate Discharging Property Subject to Estate Tax Lien. In circumstances where the \nestate tax lien is unrecorded, the recording office may file this type of discharge as a stand alone \ndocument. \nPersons applying for a certificate of discharge in estate tax lien situations can follow the instructions on \nForm 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien. \nOther Lien Documents \nThe IRS may issue other lien documents to address specific situations. See Appendix B for a list of lien \ndocuments authorized by the IRS. \nDocuments such as Certificates of Release of Federal Tax Lien and Withdrawal of Filed Notice of Federal \nTax Lien are normally filed by the IRS. In certain cases, the IRS may provide originals of these \ndocuments to a taxpayer or third party representative for filing. Other documents such as Certificates of \nDischarge of Property from the Federal Tax Lien and Certificates of Subordination of Federal Tax Lien \nare normally filed by the taxpayer or third party with an interest in the situation. \nIf there are any concerns regarding the legitimacy of a lien document presented for filing, please contact \nthe Centralized Lien Operation for verification of the document. \n7 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \n PROCEDURES FOR A FEDERAL TAX LIEN RELEASE AND REQUEST FOR BALANCE DUE \nThe amount on the Notice of Federal Tax Lien is the assessed amount at the time of filing the document. \nThis amount will remain a matter of public record until the notice of lien is satisfied. An updated lien payoff \nor balance due amount may be requested from the Centralized Lien Operation. \nThe IRS will issue a payoff letter to taxpayers or to third parties such as taxpayer representatives, \nlenders, and escrow or title companies, requesting a balance due or payoff statement with the current \namount that must be paid before the IRS releases the lien. \nThird parties must submit their request in writing accompanied by a properly completed Form 8821, Tax \nInformation Authorization, signed by the taxpayer. Without a Form 8821, the IRS cannot disclose \ntaxpayer information to third parties. The Form 8821 must address each tax period on the notice of lien \nand be received by the IRS within 60 days after the taxpayer signs and dates it. When it is timely \nreceived, a properly completed Form 8821 remains valid until it is revoked by the taxpayer. \nPayoff requests can be made by: \n• \nPhone: 1-800-913-6050 \n• \nFax: \n1-859-669-3805 \n \n \n \n \n \n \n \n \n \n \n• \nMail: \nInternal Revenue Service \nCentralized Lien Operation \nP. O. Box 45595 \nStop 8420G \n \nCincinnati, OH 45250-5595 \nPayoff computations may take up to 14 calendar days to process. The successfully completed fax \ntransmission, or mailing certification, serves as the acknowledgement of the request. \nAll requests are worked in the order in which they are received. Requestors should allow 14 days before \nfollowing up on requests. \nTwo copies of all payoff letters are mailed to the requester. One copy of the payoff letter must be returned \nwith the payment to ensure proper application and timely release of the lien. To ensure expedited \nprocessing the payment must be sent to the address identified on the payoff letter. \nPayments should be made payable to the United States Treasury. \n8 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nINFORMATION FOR RECORDING LIEN DOCUMENTS \nThe Centralized Lien Operation toll free phone number for recording offices is 1-800-913-4170. \nThis telephone number is reserved for recording offices only. \nRecording offices should record all federal tax lien documents promptly. \nTaxpayers, the United States, and other creditors may be harmed when recording offices do not record \nlien documents in a timely manner. \nRecording offices sometimes return documents unrecorded or set them aside, which can negatively \nimpact the IRS and others with an interest in the taxpayer’s property. Recording offices should contact the \nCentralized Lien Operation at the phone number above to resolve recording issues. Lien documents \nshould not be returned to the IRS unrecorded. \nForm and Content \nInternal Revenue Code 6323(f) states in part: “The form and content of the [tax lien document] shall be \nprescribed by the Secretary. Such notice shall be valid notwithstanding any other provision of law \nregarding the form or content of a notice of lien.” \nTherefore, federal law requires that recording officials must accept lien documents as presented and \nrecord them in a timely manner, even if they are not in a locally prescribed format or do not conform to \nlocal regulations. \nRequiring changes to margins, paper size, blank spaces, label insertions, redactions of social security \nnumbers, etc., made by state or local regulation are contrary to this provision. \nCover Sheet \nIRC 6323(f) governs the form and content of federal tax lien documents. Recording officials cannot refuse \nto record federal tax lien documents because of local requirements such as cover sheets, document \nmargins, or additional space for recording data. \nState and local regulations cannot override this provision, and recording officials cannot refuse to record \ndocuments without cover sheets. \nOriginal or Facsimile Signature \nNeither the Internal Revenue Code nor the Treasury Regulations require affixing original or facsimile \nsignatures to federal tax lien documents. State and local law requirements for signatures do not apply. \nThe IRS under provisions of IRC 6323(f) has the authority to make signatory determinations. Recording \noffices must ensure lien documents are recorded with or without original signatures. \nTaxpayer Name Issues \nA Notice of Federal Tax Lien is valid if it contains the taxpayer's name as it appears in IRS records and a \nreasonable inspection of the recording index would reveal the existence of the lien. The taxpayer's name \nas it appears on the notice of lien need not match the name as it appears in the Secretary of State record. \nFor example, if the IRS files a Notice of Federal Tax Lien showing the taxpayer’s name as John Doe but \nlocal records list the taxpayer’s name as Jonathan Doe, the notice of lien should be filed as presented. \nThe recording office should not make modifications to the notice of lien unless directed to by the IRS. \n9 \n",
"Guidelines for Processing Notice of Federal Tax Lien Documents \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nThe manner in which the names on the Notice of Federal Tax Lien are shown in a recording office’s name \nindex is determined by the recording office. The IRS can only require that the names be indexed in such \na manner that the notice of lien may be readily found by a third party researching the taxpayer. \nSee Appendix C for examples of common name line situations on the Notice of Federal Tax Lien and how \nthird parties may research for them. \nSecond Copy of the Notice of Federal Tax Lien \nThe IRS generally provides recording officials with two copies of all Notice of Federal Tax Lien \ndocuments. Copies are clearly designated as “Recording Office” and “IRS.” One copy—the “Recording \nOffice” copy—is for recordation, retention or disposal by the recording office. It is important that only one \nrecording occur per set of documents sent. \nThe second copy—the “IRS” copy—is returned with the appropriate recording data to the Centralized Lien \nOperation. Please use the form Transmittal Sheet for Required IRS Action (See Appendix A of this \ndocument) and mail to the address listed. \nRecording offices that do not require a second copy for their records should contact the Centralized Lien \nOperation at 1-800-913-4170 to request removal of the second copy. \n“Lost” Notices of Federal Tax Lien \nAfter a new Notice of Federal Tax Lien is filed, the IRS updates its Automated Lien System with the \nrecording data received from the recording office. If no recording data has been input within a certain \ntime period, the system alerts the Centralized Lien Operation of the potential “lost” lien. \nAn IRS employee researches each “lost” lien to determine if the recording office received and recorded \nthe notice of lien or if the recording information was not returned to, or not updated by, the IRS. Generally, \nthe IRS researches the matter using available electronic tools, but occasionally it is necessary to contact \nthe recording office and ask for assistance. If it is found that a recording office did not receive or record \nthe notice of lien, an adjustment may be needed to the recording fees previously paid or a replacement \nNotice of Federal Tax Lien may be filed. \nIllegible Unrecorded Documents \nRecording offices are asked to promptly record all federal tax lien documents. If the documents \npresented for filing are illegible, contact the Centralized Lien Operation at 1-800-913-4170 for assistance. \nReleases with Insufficient Notice of Federal Tax Lien Recording Information \nCertificates of Release of Federal Tax Lien are filed showing information cross-referencing the original \nNotice of Federal Tax Lien. Occasionally, this cross-referencing information is insufficient for the \nrecording office to identify the original notice of lien. Prior to returning unrecorded certificates of release, \nthe recording office should contact the Centralized Lien Operation to try to resolve the issue. \nIf it cannot be immediately resolved, return the certificate of release using Appendix A for missing or \nincorrect liber/book and page number of the Notice of Federal Tax Lien. \nArchiving/Purging Electronic Databases of Released or Expired Documents \nLien documents filed by the IRS must be part of the public record for at least the period they are active. \nAfter a lien document has been released or otherwise expires, the retention of the document in the public \nrecord becomes subject to the archive/purge schedule of the individual recording office. \n10 \n",
" \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nGenerally, a Notice of Federal Tax Lien is active for ten years and thirty days from the date the tax liability \nis assessed. (See “Self-Releasing Liens” section on page 4 of this publication.) If the notice of lien is \nrefiled, it may remain active up to an additional 10 years. Any lien documents filed in association with that \nnotice of lien (for example, certificate of discharge, certificate of subordination, Amended Notice of \nFederal Tax Lien, etc.), remain active for the life of the notice of lien. \nA Notice of Federal Estate Tax Lien does not have the same expiration process nor does it require a \nrefiling to extend its life. The Notice of Federal Estate Tax Lien remains active until a certificate of release \nis filed for it. A Notice of Federal Estate Tax Lien should not be removed from the public record unless \nand until a certificate of release is filed. \nFiling Lien Documents after Archiving/Purging \nOccasionally the IRS may file a lien document that relates to a Notice of Federal Tax Lien that has \nalready been archived or purged. The IRS cannot mandate how the document is recorded; only that it is \nrecorded. Whether the recording office cross-references the document to the archive record, reactivates \nthe archive record, or just files it as a stand alone document is to the discretion of the recording office. \nElectronic Lien Filing System \nThe electronic lien filing (ELF) process enables the IRS and the local recording office to electronically \nprocess the Notice of Federal Tax Lien and lien release data in a more cost effective and timely manner. \nPresently there are only a few locations where electronic filing is available. Unfortunately, the IRS is not \nable to expand the process beyond those locations at this time. \n11 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nSOCIAL SECURITY NUMBER REDACTION FOR LIEN DOCUMENTS \nThe increasing problem of identity theft poses significant privacy concerns for public documents that \ninclude Social Security Number (SSN) information. This information has been used for many years on the \npublicly filed Notice of Federal Tax Lien. \nIn efforts to prevent identity theft and to protect personally identifiable information, the IRS initiated the \npractice of partially redacting SSN information on January 2, 2006. Notices of lien and certificates related \nto those notices filed since that time include redacted SSN information in the format XXX-XX-NNNN, \nwhere only the last four digits of the taxpayer’s SSN appear. \nThe last four digits may not be changed by the recording offices; however, in some instances, SSNs on \nlien documents on state and local websites have been fully redacted. This is generally because of state \nlegislative mandates, vendor recommendations, or the recording office’s interpretation of state policies on \nidentity theft. Full SSN redaction on lien documents by recording offices is not in compliance with the IRS \ndirective to record federal tax lien documents as presented (as required in IRC 6323(f)). \nFederal tax lien documents, as presented by the Internal Revenue Service, must be readily available to \nthe public. Recording officials must maintain, in some form, the lien documents filed with partially \nredacted SSNs. Maintaining these documents ensures the public is obtaining information on the correct \nperson and eliminates the need for recording offices to perform additional tasks related to lien documents \nas provided to their offices. \nThe following disclaimer should appear on any website or other system containing lien documents where \nthe information does not exactly correspond with the IRS’ document: \n “This website contains information on Notices of Federal Tax Lien and other lien documents that \nis not identical in content to documents presented to this office by IRS. Therefore, the results of a \nsearch of this indexing system cannot be relied upon in judicial or administrative proceedings \nrelated to title or transfer of property, including but not limited to searches relative to sales of \nproperty and foreclosure proceedings, in determining ownership interests in property on which a \nNotice of Federal Tax Lien attaches. \n For assistance in obtaining a copy of the required document as filed by IRS, please contact \n(name) of this office at (phone number). Copies of recorded documents may be obtained only \nfrom this office for which the search was conducted.” \nFor those offices that have fully redacted the SSN and the electronic website is the “official site,” every \neffort must be made to ensure that the public is able to obtain an official version of the recorded notice of \nlien. \n12 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nPAYMENT PROCESS FOR RECORDING LIEN DOCUMENTS \nThe Centralized Lien Operation requests that local recording offices provide to the IRS the recording \noffice contact name, street address, phone number, e-mail address, and the recording fee schedule. If \nthis information changes, please forward updated information thirty days prior to the change being \nimplemented using the form in Appendix A. \nMailing address: \n \nInternal Revenue Service \nCentralized Lien Operation \nP.O. Box 145595 \nStop 8420G \nCincinnati, OH 45250-5595 \nElectronic Transfer of Funds \nPayments for all lien documents mailed from the Centralized Lien Operation are made by electronic funds \ntransfer (EFT) to the recording office’s financial institution. \nThe recording office designates the financial institution to receive payment by completing Standard Form \n3881, ACH Vendor/Miscellaneous Payment Enrollment Form. This form can be obtained by calling the \nIRS Beckley Finance Center at (304) 254-3300. \nPlease ensure enrollment forms reflect current information. Changes to the forms can be faxed to \n(304) 254-3544 or mailed to: \n \nInternal Revenue Service \nBeckley Finance Center \nP. O. Box 9002 \nBeckley, WV 25802 \nSend questions concerning the EFT process to the IRS Beckley Finance Center via e-mail at \[email protected] or call (304) 254-3300 for additional help. \nInvoice Payment Procedures \nBilling for recording services is not necessary under the EFT process and it will not be used for \ndocuments mailed from the Centralized Lien Operation. \nLien filings by the IRS are normally done by mail. However, on occasion, a Notice of Federal Tax Lien or \nrelated document may be physically presented by an IRS employee to a recording office for immediate \nfiling. In such situations, the employee should provide official identification. The recording office may \nrequest the IRS employee pay the filing fee at that time or it may submit an invoice to the Centralized Lien \nOperation and have the fee paid via EFT. \nTo submit an invoice for documents that are physically presented, the recording office may use its own \ninvoice or Form 3982, Billing Support for Liens and Certificate Fees, as provided by the IRS employee. \nThe invoice should be immediately faxed to the Centralized Lien Operation at (859) 669-3805. \nInvoices should contain a number that the recording office can use to identify the payment. The IRS \nFinance Office will include this number on the EFT. \nUpon receipt, the Centralized Lien Operation will review and certify the document for payment and \ninclude it in the most current Billing Support Voucher to be sent to the IRS Beckley Finance Center. \n13 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nDocuments Not Presented by IRS \nGuidelines for Processing Notice of Federal Tax Lien Documents \nA taxpayer, financial institution, or other third party that presents a Federal tax lien document for filing is \nresponsible for paying any recording fees due. Should there be any concerns regarding the legitimacy of \nthe document presented for filing, the recording office should immediately contact the Centralized Lien \nOperation at 1-800-913-4170 for verification. \nRecording Office Fee Schedule Changes \nContact the Centralized Lien Operation with issues relating to problems or changes to recording fees. \nRecording offices should notify the Centralized Lien Operation of fee changes 30 days prior to \nimplementation. This helps the IRS to pay the proper fees in a timely manner. \nThe Centralized Lien Operation toll free phone number for recording offices is 1-800-913-4170. \nIf the IRS sends Notices of Federal Tax Lien for recording and inadvertently remits insufficient recording \nfees, please do not return the Notices of Federal Tax Lien without recording. Notify the Centralized Lien \nOperation. The balance due will be remitted with the next available EFT. \nTreasury Offset Program \nThe Treasury Offset Program (TOP) is a centralized offset program administered by the Bureau of \nFinancial Services, formerly known as Financial Management Service’s (FMS) Debt Management \nServices. The program collects delinquent debts owed to federal agencies and states. \nIf a local jurisdiction owes a delinquent debt to a government agency, that agency sends information \nabout the debt to FMS. When the IRS files lien documents and requests an EFT for the filing fees, the \nFMS database is searched to determine if a delinquent debt is registered for any agencies in that \njurisdiction. If so, FMS will reduce or withhold the EFT to satisfy the delinquent amount. When an offset is \nmade to a related agency’s debt, the filing fee is considered paid and the recording office must file the lien \ndocuments based on the credit offset. The recording office is responsible for recovering the filing fees \nfrom the related agency that received the credit. \nMore information regarding TOP can be found at www.fms.treas.gov/debt/top.html. \n14 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n_______________________________________ \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nAppendix A \nRecording Office Notification to the IRS \nPurpose of the Transmittal Sheet \nRecording offices should record all federal tax lien documents when received. \nContact the IRS immediately, using this transmittal, to resolve issues preventing the timely recording of \nfederal tax lien documents. You may also call the Centralized Lien Operation at 1-800-913-4170 with \nrecording questions. \nRecording offices can also use this transmittal to notify the IRS of any changes to the contact information \nor changes to recording fees on file. \nRecording Office Information \nRecording Office \nContact Person \nAddress \nCity/State/Zip \nPhone Number \nFax Number \nE-Mail Address \nInformation can be submitted via fax or mail. \n1. Fax requests to: (859) 669-3805 or \n2. Mail requests to: \nInternal Revenue Service \nCentralized Lien Operation \nAttn: Recorder Information Coordinator \nP.O. Box 145595, Stop 8420G \nCincinnati, OH 45250-5595 \nPlease check the appropriate box: \nUpdated contact information (use section above). \nRecording fee changes (attach updated fee schedule). \nRemit additional recording fees in the amount of $ \n(Attach copy of Billing Support Voucher to ensure prompt payment.) \nIllegible document(s) returned to the IRS unrecorded. \nUnrecorded Lien release returned to the IRS for missing or incorrect liber/book and page number \nor UCC number. Correction of filing information, if available: \n15 \n\n\n. \n\n\n\nOther\n \n",
" \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nAppendix B \nCertificates Related to Notices of Federal Tax Lien \nTITLE OF CERTIFICATE \nIRS FORM \nNUMBER \nGENERALLY \nFILED \nBY WHOM \nASSOCIATED \nDOCUMENTS THAT \nMAY BE FILED \nNotice of \nFederal Tax Lien \n668Y\nIRS\nn/a\nAmended (or Corrected) Notice of \nFederal Tax Lien \nAmended 668Y \nIRS \nn/a \nNotice of Federal Tax Lien \n(Nominee/Alter Ego Lien) \n668Y \n(Annotated) \nIRS \nA legal description \nof real property \nNotice of Federal Tax \nLien Refiling \n668F \nIRS \nn/a \nNotice of Federal \nEstate Tax Lien \n668H \n668J \nIRS \nA legal description \nof real property \nCertificate of Duplication \nof Federal Tax Lien \nLetter 2440 \nIRS* \nn/a \nCertificate of Release \nof Federal Tax Lien \n668Z\nIRS*\nn/a\nCertificate of Release \nof Federal Tax Lien \n(Erroneous Lien) \n668Z \n(with special \nwording) \nIRS* \nn/a \nPartial Release \nof Federal Tax Lien \nPartial \n668Z \nIRS*\nn/a\nCertificate of Release \nof Federal Estate Tax Lien \n668H \n668J \nIRS* \nn/a \nRevocation of Release \nof Federal Tax Lien \n12474 \n12474-A \nIRS \nA new Notice of \nFederal Tax Lien \nPartial Revocation of Release of \nFederal Tax Lien \nPartial 12474 \nPartial 12474-A \nIRS \nA new Notice of \nFederal Tax Lien \nWithdrawal of Filed \nNotice of Federal Tax Lien \n10916\nIRS*\nn/a\nPartial Withdrawal of Filed \nNotice of Federal Tax Lien \nPartial 10916 \nIRS* \nn/a \nWithdrawal of Filed Notice \nof Federal Tax Lien after Release \n10916-A\nIRS*\nn/a\nPartial Withdrawal of Filed Notice \nof Federal Tax Lien after Release \nPartial 10916-A\nIRS* \nn/a \nCertificate of Discharge \nof Property from \nFederal Tax Lien \n(various code sections) \n669A \n669B \n669C \n669G \n669H \nTaxpayer, Bank, \nTitle Company \nDeed transferring \nproperty \nCertificate of Subordination of \nFederal Tax Lien \n(various code sections) \n669D \n669E \n669F \nTaxpayer, Bank, \nTitle Company \nA new mortgage \ndocument \nCertificate of Discharge of Property \nfrom Federal Estate Tax Lien \n792 \nTaxpayer, Bank, \nTitle Company \nDeed transferring parcel \nof property \nCertificate of Subordination of \nFederal Estate Tax Lien \n669F \nTaxpayer, Bank, \nTitle Company \nA new mortgage \ndocument \nCertificate of Nonattachment of \nFederal Tax Lien \nLetter 1628 \nTaxpayer, Bank, \nTitle Company \nn/a \n* Infrequently, the document may be filed by the taxpayer, bank, title company, etc.\n16 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nAppendix C \nResearching Taxpayer Index \nThe following chart lists common name line situations on Notices of Federal Tax Lien and some variations \na third party may use in researching for the taxpayer(s). The IRS does not direct a recording office in how \nto index its records; however, an effective name indexing process should lead a third party searching \nvariations of the taxpayer’s name to the notice of lien. \nIf the notice of lien shows the name \nline as: \nThen a third party should find the notice of lien \nsearching for any of the following: \nJohn Q. and Mary J. Public \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \nor \n• Mary/Mary J./Mary Jane/M./M.J./M. Jane Public \n(individuals) \nMary J. Public \naka Mary J. Doe \n• Mary/Mary J./Mary Jane/M./M.J./M. Jane Public or \n• Mary/Mary J./Mary Jane/M./M.J./M. Jane Doe \n(individual) \nJohn Q. Public \ndba Public Domain* \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \n(individual) or \n• Public Domain (business name) \nPublic Domain, a partnership \nJohn Q. Public, a partner \nMary J. Public, a partner \n• Public Domain (business name) \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \nor \n• Mary/Mary J./Mary Jane/M./M.J./M. Jane Public \n(individuals) \nPublic Domain, Inc., a corporation \nt/a Public Place* \n• Public Domain/Public Domain Inc. or \n• Public Place (business names) \nPublic Domain, Inc., a corporation \n% John Public, President* \n• Public Domain/Public Domain Inc. \n(business name) \nPublic Domain LLC, a limited liability co. \n• Public Domain (business name) \nMary Jane Doe, as nominee of \nJohn Q. Public \n• Mary/Mary J./Mary Jane/M./M.J./M. Jane Doe or \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \n• (individuals) \nPublic Domain, Inc., as alter ego of \nJohn Q. Public \n• Public Domain/Public Domain, Inc. \n(business name) or \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \n(individual) \nMary Jane Doe, as transferee of \nJohn Q. Public \n• Mary/Mary J./Mary Jane/M./M.J./M. Jane Doe or \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \n(individuals) \nJQP Trust \n• JQP/John Q Public Trust \n(business name) \nJQP Trust \n% Mary J Doe, trustee* \n• JQP/John Q Public Trust \n(business name) \nJohn Q Public, deceased \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \n(individual) \n17 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nResearching Taxpayer Index (cont.) \nIf the notice of lien shows the name \nline as: \nThen a third party should find the notice of lien \nsearching for any of the following: \nEstate of John Q. Public \n• Estate of John/John Q./John Quinn/J./J.Q./J. \nQuinn Public or \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \nEstate (business names) \nEstate of John Q. Public \n% Mary J. Doe, representative/executor* \n• Estate of John/John Q./John Quinn/J./J.Q./J. \nQuinn Public or \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \nEstate (business names) \nBankruptcy Estate of John Q. Public \n%Mary Doe, Trustee* \n• Estate of John/John Q./John Quinn/J./J.Q./J. \nQuinn Public or \n• John/John Q./John Quinn/J./J.Q./J. Quinn Public \nEstate (business names) \n*Notes: \n• \nSecondary name lines for business names may or may not be prefaced with “dba” (doing \nbusiness as) or “t/a” (trading as). \n• \nSecondary name lines beginning with % (in care of) generally indicate a mailing address and \nnot a person to whom the lien attaches. \n18 \n",
" \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nGuidelines for Processing Notice of Federal Tax Lien Documents \nAppendix D \nADDITIONAL RESOURCES \nForms and publications are available on the IRS Web site at www.irs.gov, or by calling 800-TAXFORM \n(800-829-3676). \nFile a Notice of Federal Tax Lien \nwww.irs.gov/businesses/small/article/0,,id=108339,00.html \nPublication 594, The IRS Collection Process \nwww.irs.gov/pub/irs-pdf/p594.pdf \nPublication 783, Instructions on How to Apply for a Certificate of Discharge of Property \nfrom the Federal Tax Lien \nwww.irs.gov/pub/irs-pdf/p783.pdf \nPublication 784, Instructions on How to Apply for a Certificate of Subordination of \nFederal Tax Lien \nwww.irs.gov/pub/irs-pdf/p784.pdf \nPublication 1024, How to Prepare Application for Certificate of Nonattachment of \nFederal Tax Lien \nwww.irs.gov/pub/irs-pdf/p1024.pdf \nPublication 1075, Tax Information Security Guidelines for Federal, State, and Local \nAgencies and Entities \nwww.irs.gov/pub/irs-pdf/p1075.pdf \nPublication 1153, How to Apply for a Certificate of Subordination of Federal Estate Tax Lien Under \nSection 6325(d)(3) of the Internal Revenue Code \nwww.irs.gov/pub/irs-pdf/p1153.pdf \nPublication 1450, Instructions on How to Request a Certificate of Release of Federal Tax Lien \nwww.irs.gov/pub/irs-pdf/p1450.pdf \nPublication 4235, Collection Advisory Group Addresses \nwww.irs.gov/pub/irs-pdf/p4235.pdf \nForm 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien \nhttp://www.irs.gov/pub/irs-pdf/f4422.pdf \nForm 8821, Tax Information Authorization \nwww.irs.gov/pub/irs-pdf/f8821.pdf \nInternal Revenue Code section 6323, Validity of Priority Against Certain Persons \nhttp://uscodebeta.house.gov/view.xhtml?req=(title:26 section:6323 edition:prelim \nBureau of Financial Services \nwww.fms.treas.gov \nInternet Payment Platform \nhttps://IPP.gov \n19 \n"
] |
p4761.pdf
|
0913 Publ 4761 (PDF)
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https://www.irs.gov/pub/irs-pdf/p4761.pdf
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[
"Protecting \nFederal Tax Information for\nPublication 4761 (Rev. 9-2013) Catalog Number 53071T Department of Treasury Internal Revenue Service www.irs.gov \nGovernment \nEmployees\nThis guide provides you with basic information about:\n+\n+\nThe provisions of §6103 that protect tax returns and return information\n+\n+\nThe provisions of the Privacy Act and other statutes protect other federal data\n+\n+\nThe civil and criminal penalties for unauthorized accesses or disclosures\nGuide\nWhen it comes to confidential tax information, remember:\n“When In Doubt, Check It Out\nBefore You Give It Out!”\n",
"Safeguarding federal tax information is critically important. As the \nemployee of a federal, state or local agency who works with federal \ntax returns and return information, you are responsible for protecting \nthat information.\nInternal Revenue Code (the Code) Section (§) 6103 contains requirements \nfor both protecting and disclosing confidential returns and return \ninformation. These provisions also apply to state employees who work \nwith federal tax data.\n§6103 prohibits employees from disclosing federal returns or return \ninformation unless allowed by law. You need to understand and apply \nthe provisions of §6103 that relate to your job performance.\nSpecific Provisions of §6103\n§6103(a) - The general prohibition against disclosure. It specifically names \nstate employees among those who may not disclose returns and return \ninformation unless permitted by an exception in the statute.\nThe General Rule – Tax Information Is \nConfidential!\n§6103(a) provides that all returns and return information are confidential. \nNo current or former employee of the IRS, state or federal agency may \naccess or disclose returns or return information unless specifically \nauthorized under provisions of the Code.\n§6103 permits IRS to disclose federal returns and return information: \n+\n+\nTo state tax agencies for tax administration purposes,\n+\n+\nUnder ex parte court orders for use in federal non-tax criminal \ninvestigations and proceedings, and \n+\n+\nAs provided in other provisions of the law.\nCertain limitations are placed on these disclosures. The provisions of the \nlaw also require that agencies protect federal tax data by implementing \ncertain safeguards.\n§6103(b) - Defines returns, return information, disclosure, state, tax \nadministration and other terms used in §6103.\nDefinition of Return\nA return means any tax or information return, estimated tax declaration or \nrefund claim (including amendments, supplements, supporting schedules, \nattachments or lists) required by or permitted under the Code and filed \nwith the IRS by, on behalf of, or with respect to any person. Examples of \nreturns include forms filed on paper or electronically, such as Forms 1040, \n941, 1099, 1120 and W-2.\nDefinition of Return Information\nThe definition of return information is very broad. It includes, but is not \nlimited to:\n+\n+\nAny information, besides the return itself, that IRS obtained from any \nsource or developed through any means that relates to the potential \nliability of any person under the Code for any tax, penalty, interest, fine, \nforfeiture, or other imposition or offense.\n+\n+\nInformation extracted from a return, including names of dependents, or \nthe location of business.\n+\n+\nThe taxpayer’s name, address and identification number.\n+\n+\nInformation collected by the IRS about any person’s tax affairs, even if \nidentifiers like name, address and identification number are deleted.\n+\n+\n Whether a return was filed, is or will be examined or subject to other \ninvestigation or processing, including collection activities.\n+\n+\nInformation contained on transcripts of accounts.\n§6103(d) - is the statutory authority that allows disclosure of returns and \nreturn information to state tax agencies for tax administration purposes. \nRead more about safeguarding federal tax information and disclosure \nlimitations in Section 2.4 of Pub 1075.\n§6103(i) – is the statutory authority that allows disclosure of returns and \nreturn information as ordered by federal district courts upon application \nby the United States Attorney and in other circumstances. Safeguarding \nresponsibilities of federal law enforcement agencies are discussed in \nSection 5.12 of Pub 1075.\n§6103(p) - is the statutory authority that requires certain recordkeeping \nand safeguarding procedures for federal tax information.\nSafeguards\nCertain agencies receiving federal tax returns and return information must \nprotect them as explained in IRS Pub 1075. These agencies are identified \nin §6103(p)(4) as are their recordkeeping, reporting, and safeguarding \nrequirements.\nResources for Safeguarding Tax \nInformation\nIRS Publication 1075, Tax Information Security Guidelines For Federal, \nState, and Local Agencies, the book that we commonly call “Pub 1075,” is \nthe definitive source for safeguard standards and procedures required to \nprotect federal tax records.\nPub 1075 provides a convenient resource for the letter of the law. Selected \nsections of the statute and regulations are reprinted in Exhibits in the .pdf \nversion of the document, available online at www.IRS.gov.\nAdditional resources are available for Governmental Liaisons on IRS.gov. Use \nthe search term “governmental liaison.”\nPenalties\nBe aware that you cannot access or disclose confidential tax information \nunless a provision of the Code authorizes the access or disclosure.\nUnauthorized disclosure or access could subject you to criminal penalties \nunder §7213 and §7213A (UNAX). A taxpayer may also seek civil damages \nunder §7431.\nCriminal Penalties:\n§7213 specifies that willful unauthorized disclosure of returns or return \ninformation by an employee or former employee is a felony.\nThe penalty can be a fine of up to $5,000 or up to five (5) years in jail, or \nboth, plus costs of prosecution.\nUnder §7213A, willful unauthorized access or inspection (UNAX) of taxpayer \nrecords by an employee or former employee is a misdemeanor. This applies to \nboth paper documents and electronic information. \nViolators can be subject to a fine of up to $1,000 and/or sentenced to up to \none year in prison.\nCivil Penalties:\nA taxpayer whose return or return information has been knowingly or \nnegligently inspected or disclosed by an employee in violation of §6103 may \nseek civil damages. \n§7431 allows a taxpayer to institute action in district court for damages \nwhere there is unauthorized inspection or disclosure. If the court finds there \nhas been an unauthorized inspection or disclosure, the taxpayer may receive \ndamages of $1,000 for each unauthorized access or disclosure, or actual \ndamages, whichever is greater, plus punitive damages (in the case of willful \nor gross negligence), and costs of the action (which may include attorney’s \nfees).\nThere is no liability under §7431 if the disclosure was the result of a good \nfaith but erroneous interpretation of §6103.\nAvoid Unauthorized Disclosure – Follow \nThese Tips:\nProtect confidential tax information:\n+\n+\nFollow appropriate physical and information security guidelines at all times.\n+\n+\nDispose of confidential tax information appropriately, whether on paper \nor digital media. \n+\n+\nDo not leave confidential tax information on computer screens when you \nare away from the computer workstation.\n+\n+\nProtect laptop computers and removable media that contain confidential \ntax information.\n+\n+\nDo not commingle data. Keep federal tax information separate from other \ntypes of information. Where physical separation is impractical, the file \nshould be clearly labeled to indicate that the file contains federal tax \ninformation.\n+\n+\nDiscuss confidential federal tax matters only with those personnel who \nhave a need to know the information for a tax administration purpose. \nDo not discuss confidential tax matters on coffee breaks, at home or \noutside the office.\n+\n+\nObserve the clean desk policy. Do not leave confidential information \nunattended on your desk.\n+\n+\nPrepare all correspondence carefully. Be sure to completely over-write \nthe information added to any pattern letters you may be using. Review all \ncorrespondence before sending to ensure that the text and all enclosed \nmaterials (reports, attachments, schedules, and other inserts) are \nintended for the recipient.\n+\n+\nUse a document receipt to verify that confidential material has been \nproperly received when information is mailed or hand carried. Use double \nsealed envelopes when mailing confidential tax information or take other \nprecautions to prevent viewing of actual content.\n+\n+\nSensitive information, regardless of its form (electronic information in any \nform: e.g., on a hard drive, tape, disk, or other portable storage device, \npaper records, video or audio recordings of any type and databases must \nbe protected from unauthorized disclosure.\n+\n+\nImmediately report all unintentional or inadvertent unauthorized \ndisclosures of tax information to the IRS as directed by current procedures.\n+\n+\nImmediately report willful unauthorized accesses or disclosures by calling \nthe TIGTA Hotline at 1-800-366-4484.\nIRS Resources Available\n+\n+\nIRS Safeguards staff periodically reviews agencies for compliance with \nthese requirements and receives and approves certain reports required \nby law.\n+\n+\nIRS Governmental Liaison keeps the lines of communication and \ncooperation open and active with state tax and other agencies.\n+\n+\nIRS Disclosure answers disclosure questions and concerns and supports \nyour agency liaison in the delivery of your Disclosure Awareness program.\n"
] |
p5093.pdf
|
0713 Publ 5093 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5093.pdf
|
[
" \n \nPublication 5093 (Rev. 7-2013) Catalog Number 63920H Department of the Treasury Internal Revenue Service www.irs.gov \nHealth Care Law \nOnline Resources \nIndividuals and Families \nHealth Care Coverage through the Marketplace \nHealthCare.gov \nHealth Coverage and Your Taxes \nIRS.gov/aca \nConsumer Assistance for Employees \nAskebsa.dol.gov \nEmployers \nHealth Insurance Information \nHealthCare.gov \nTax Benefits and Responsibilities \nIRS.gov/aca \nSmall Business Resources \nSBA.gov/healthcare \nLegal Guidance – Labor Provisions \nDol.gov/ebsa/healthreform \nUS Govt. Business Portal \nBusiness.USA.gov/healthcare \n"
] |
p3966sp.pdf
|
1113 Publ 3966 (SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/p3966sp.pdf
|
[
"Podrá encontrar información más detallada sobre estos temas en la Publicación 907, Tax Highlights for Persons \nwith Disabilities (Temas tributarios sobresalientes para las personas incapacitadas), en inglés y en las demás \npublicaciones nombradas a continuación.\nViviendo y Trabajando \ncon Incapacidades\nEsta Publicación presenta información básica sobre los créditos y beneficios tributarios que ya existen \ny que podrían estar disponibles a los contribuyentes incapacitados, padres de niños con Incapacidades \ny negocios u otras entidades que desean acomodar a personas incapacitadas, si reúnen los requisitos\n\nBeneficios y Créditos tributarios\nUna serie de publicaciones informativas para \n-educar a los contribuyentes sobre el impacto\n-tributario de eventos significativos en la vida.\nCOMO PERSONA INCAPACIDTADA, usted podría reunir los \nrequisitos para algunas de las siguientes deducciones de impuestos, exclusiones \nde ingresos y créditos. Puede encontrar información más detallada en las \npublicaciones del IRS mencionadas mas adelante.\nDeducción Estándar: Si usted está legalmente ciego, podría tener derecho a una \ndeducción estándar mayor en su declaración de impuestos. \nVea la Publicación 501 del IRS\nIngresos Brutos: Hay ciertos pagos relacionados a la incapacidad que podría \nexcluir del ingreso bruto. Pagos por Incapacidad pagados por la Administración de \nVeteranos (VA) y beneficios Suplementarios del Seguro Social (SSI) no se incluyen \nen los ingresos brutos. \nVea la Publicación 525 del IRS\nGastos del Trabajo Relacionados con Incapacidad: Si usted es un empleado y \ntiene una incapacidad física o mental que le limita funcionalmente en cuestiones \nde trabajo, tal vez podría reclamar como gastos del negocio el costo de tener a un \nasistente con usted en su lugar de trabajo, y otros gastos relacionados con su lugar \ndel trabajo que son necesarios para que usted pueda trabajar. \nVea la Publicación 529 del IRS\nCrédito por Edad o Incapacidad: Usted podría reclamar este crédito si tiene 65 \naños de edad o más, o si tiene menos de 65 años y se jubiló por incapacidad total \ny permanente. \nVea la Publicación 524 del IRS\nGastos Médicos: son el costo de diagnosticar, curar, mitigar, tratar o prevenir una \nenfermedad, y los costos de los tratamientos que afectan cualquier parte o función \ndel cuerpo. Incluyen el costo de equipo, suministros y dispositivos de diagnósticos \nnecesarios para estos propósitos. También incluyen gastos dentales. \nVea la Publicación 502 del IRS\nCrédito por Ingreso del Trabajo (EITC por sus siglas en inglés): es un crédito \ntributario para ciertas personas que trabajan y tienen ingresos de trabajo bajos o \nmoderados. Un crédito tributario normalmente significa más dinero en su bolsillo. \nReduce la cantidad de impuesto que usted adeuda. El EITC también podría darle \nderecho a un reembolso. Muchas personas incapacitadas que trabajan pero no \ntienen hijos calificados, que tienen al menos 25 años de edad, pero no más de 65 \naños de edad, reúnen los requisitos para el EITC. Los ingresos, para propósitos \ndel EITC, pueden incluir los beneficios por incapacidad que usted recibe del plan \nde jubilación por incapacidad de su empleador, hasta que usted cumpla la edad \nmínima para la jubilación.\nReembolsos recibidos del Crédito por Ingreso del Trabajo y el Crédito Tributario \npor Hijos (CTC por sus siglas en inglés), o de otro crédito rembolsable, no se \nconsideran ingresos, y no cuentan como recurso suyo, por lo menos durante \n12 meses desde que lo recibe como beneficio o ayuda de cualquier programa \nFederal, o un programa Estatal o local financiado en parte o totalmente con fondos \nFederales. Siempre es mejor confirmar con su coordinador de beneficios locales si \nesta disposición aplica a sus beneficios. \nUsted debe presentar una declaración de impuestos para determinar su elegibilidad \npara reclamar el EITC. Muchas personas con incapacidades pierden el crédito por \nno presentar una declaración, ya que no adeudan ningún impuesto. \nVea la Publicación 596 del IRS\nCOMO PADRE O MADRE DE UN HIJO CON UNA \nINCAPACIDAD, usted podría tener derecho a algunas de las siguientes \nexenciones, deducciones y créditos. Hay información más detallada en las \npublicaciones del IRS aquí mencionadas. \nDependientes: Si su hijo es total y permanentemente incapacitado, usted podría \nreclamar a su hijo como dependiente sin tener en cuenta su edad.\nTotal y permanentemente incapacitado:\n• Él o ella no puede efectuar ninguna actividad lucrativa sustancial debido a una \ncondición física o mental.\n• Un médico determina que la condición ha durado o se puede esperar que dure \nun mínimo de un año seguido, o que puede llegar a ser fatal.\nDependiente con una incapacidad que trabaja en un Taller Protegido: Usted podría \ntener derecho a reclamar una exención de dependencia para un hijo o pariente que \nreúne los requisitos. Los ingresos brutos no incluyen ingresos de los servicios que \ndicha persona presta en un taller protegido, pero la persona todavía debe reunir los \ndemás requisitos de dependencia. \nVea la Publicación 501 del IRS\nCrédito por Adopción: Usted podría tener derecho a reclamar un crédito por \nadopción y excluir de sus ingresos los beneficios de adopción provistos por su \nempleador si adopta a un hijo con necesidades especiales. \nVea la Publicación 907 del IRS\nEITC para los padres de hijos con incapacidades: Si su hijo es total y \npermanentemente incapacitado, usted podría tener derecho a este crédito, sin \ntener en cuenta su edad, siempre que reúna los demás requisitos.\nVea la Publicación 596 del IRS\nCrédito para el Cuidado de un Hijo o Dependiente: Usted podría tener derecho a \neste crédito si usted paga a otra persona para que venga a su casa para cuidar \nde su dependiente o cónyuge, si éste no puede cuidar de si mismo, sin tener \nen cuenta la edad. Se considera que personas que no pueden vestirse, bañarse, \nni alimentarse a si mismos debido a problemas físicos o mentales, no pueden \ncuidar de si mismos. Además, se considera que personas que requieren atención \nconstante para prevenirles de hacerse daño a si mismo o a otras personas, no \npueden cuidar de si mismos.\nVea la Publicación 503 del IRS\n (continuación…) \n",
"Publication 3966(SP) (Rev. 11-2013) Catalog Number 39847R Department of the Treasury Internal Revenue Service www.irs.gov\nConferencias Médicas: Usted podría incluir gastos médicos que pagó para la \nadmisión y transporte a una conferencia médica si la misma trata de la enfermedad \ncrónica de que usted, su cónyuge o su dependiente padece. \nVea la Publicación 502 del IRS\nCOMO NEGOCIO QUE DESEA ACOMODAR A \nPERSONAS CON INCAPACIDADES, usted podría tener \nderecho a algunos de los siguientes créditos tributarios y deducciones. Hay \ninformación más detallada en las publicaciones del IRS aquí mencionadas. Crédito \npara que el Incapacitado tenga Acceso: Este es un crédito tributario para un negocio \npequeño elegible que paga o incurre en gastos para proveer acceso a personas con \nincapacidades. Los gastos deben ser para permitir que dicho negocio pequeño \nelegible cumpla con la Ley de Incapacidad Estadounidense del 1990 (Sección 44 \ndel Código de Impuestos Internos)\nVea la Publicación 535 del IRS y el Formulario 8826\nDeducción Tributaria por Eliminar Barreras: Los negocios podrían tener derecho \na reclamar una deducción anual por los gastos relacionados con remover las \nbarreras físicas, estructurales y de transporte para las personas con incapacidades. \nVea la Publicación 535 del IRS\nCrédito de Oportunidades de Empleo: Este crédito provee un incentivo a los \nempleadores para contratar a personas de ciertos grupos de la población que tiene \nun índice de desempleo más alto que él de otros grupos, o que tienen necesidades \nespeciales de empleo, tales como los recibidores de los Ingresos de Seguridad \nSuplementaria (SSI por sus siglas en inglés), la gente referida a Rehabilitación \nVocacional y los Veteranos con incapacidades. \nVea los Formularios 5882, 3800, y 8850 del IRS\nPARA SOLICITAR PUBLICACIONES\nTodos los siguientes formularios y publicaciones están disponibles electrónicamente \ndel Servicio de Impuestos Internos en www.irs.gov/espanol, las 24 horas del día, \nlos 7 días de la semana. \nPara solicitar una copia gratis en papel de cualquier formulario o publicación \naquí nombrado, llame al 1-800-829-3676 (1-800-TAX-FORM). Si tiene preguntas \nadicionales acerca de estos créditos y beneficios, puede llamar a 1-800-829-1040. \nSi usted es usuario del equipo TTY/TDD, llame a 1-800-829-4059 para solicitar \npublicaciones y hacer preguntas tributarias. \nEn inglés\n• Publicación 907, Tax Highlights for Persons with Disabilities \n(Temas tributarios sobresalientes para personas con incapacidades)\n• Publicación 501, Exemptions, Standard Deduction, and Filing Information \n(Exenciones, Deducción estándar, e información para presentar la \ndeclaración) \n• Publicación 535, Business Expenses \n(Gastos de Negocio)\n• Publicación 525, Taxable and Nontaxable Income\n(Ingresos tributables y no tributables)\n• Publicación 529, Miscellaneous Deductions\n(Deducciones misceláneas) \n• Publicación 524, Credit for the Elderly or the Disabled\n(Crédito para los ancianos e incapacitados)\n• Publicación 502, Medical and Dental Expenses\n(Gastos médicos y dentales)\n• Publicación 503, Child and Dependent Care Expenses\n(Gastos del cuidado de niños y dependientes)\n• Formulario 8826, Disabled Access Credit\n(Crédito para el acceso de incapacitados)\n• Formulario 3800, General Business Credit\n(Crédito general para negocios)\n• Formulario 5884, Work Opportunity Credit\n(Crédito por oportunidades de empleo)\nEn español\n• Publicación 596 (SP), Crédito por Ingreso del Trabajo\nCentro de Medios de Comunicación Alternativos del IRS – todos los documentos \ndel IRS les están disponibles a personas que usan tecnología de ayuda, inclusive \nsoftware que lee pantallas, pantallas refrescables de Braille, y software que \nreconoce la voz. \nSi desea más información acerca de productos y servicios que el IRS les provee a \nlos contribuyentes con incapacidades, visite las páginas que tratan de acceso en \nwww.irs.gov/espanol. Para solicitar copias impresas en Braille o letra grande, llame \nal IRS al 1-800-829-3676.\nVideos en Lenguaje de Señas Estadounidense (ASL) - Videos en Lenguaje de \nSeñas están disponibles en el canal de YouTube del IRS en www.youtube.com/\nIRSvideosASL. Usted tiene permiso para subir los videos a su propia página Web \ntambién. \nServicio del Defensor del Contribuyente (TAS) - El Servicio del Defensor del \nContribuyente, o TAS, por sus siglas en inglés, es una organización independiente \ndentro del IRS y ayuda a los contribuyentes para resolver problemas con el IRS y \nrecomienda cambios que podrían prevenir los problemas. \nPara más información acerca del TAS, visite www.irs.gov/advocate o llame al \n1-877-777-4778 libre de cargos.\nAYUDA GRATUITA CON LA PREPARACIÓN \nDE DECLARACIONES DE IMPUESTOS\nCentros de Asistencia Voluntaria para la Preparación de Impuestos (VITA por sus \nsiglas en inglés) ofrecen en sus oficinas ayuda gratuita con la preparación de la \ndeclaración de impuestos para personas cuyos ingresos son bajos o moderados. \nLlame a 1-800-906-9887 para buscar un sitio de VITA cerca de usted, o consulte la \nHerramienta para Ubicar sitios VITA en http://irs/treasury/gov/freetaxprep/.\nCOMUNÍQUESE CON EL IRS\nEl IRS utiliza herramientas de redes sociales para compartir la información más \nactualizada acerca de cambios, iniciativas, productos y servicios relacionados con \nlos impuestos. Comuníquese con el IRS a través de las siguientes herramientas de \nredes sociales en www.irs.gov/espanol. \nViviendo y Trabajando con \nIncapacidades (continuación…) \n"
] |
p4974sp.pdf
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1213 Publ 4974 (SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/p4974sp.pdf
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[
"¿Cómo funciona?\nTodo lo que tiene que hacer es traer su documentación a un sitio de preparación \nde impuestos GRATIS y le ayudaremos a empezar, responder a sus preguntas y \nayudarle a presentar su propia declaración de impuestos. Usted tendrá acceso al \nsoftware de impuestos gratuito que construirá su confianza en la preparación de \nsu propia declaración.\n¿Qué necesito para empezar?\n• Conocimientos informáticos básicos\n• Una dirección de correo electrónico\n• Documentación: Foto ID, tarjetas de Seguro Social para usted, su cónyuge y \ndependientes, información de ingresos – W-2, 1099, ingreso bruto ajustado \ndel año anterior, información de los números de ruta y cuenta bancaria\n¿A dónde voy?\nEncuentre el sitio que le puede ayudar a hacer sus propios impuestos o visite:\nPublication 4974 (SP) (12-2013) Catalog Number 66006Y Department of the Treasury Internal Revenue Service www.irs.gov\nSi usted tiene una declaración de impuestos \nsencilla y necesita un poco de ayuda o no \ntiene acceso a una computadora, usted puede \nvisitar uno de los sitios de asistencia tributaria \nparticipantes y un voluntario certificado por el \nIRS le dirigirá a través del proceso.\nPRESENTE SUS \nIMPUESTOS \nUSTED MISMO\nGRATIS\nTambién puede encontrar la lista de todos los sitios participantes en www.irs.gov y escriba la palabra \n“VITA” en el cuadro de búsqueda.\n"
] |
n609.pdf
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1013 Notc 609 (PDF)
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https://www.irs.gov/pub/irs-pdf/n609.pdf
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[
"Notice 609\n(Rev. October 2013)\nPrivacy Act Notice\nDepartment of the Treasury\nInternal Revenue Service\nCat. No. 45963A\nNotice 609 (10-2013)\nThe Privacy Act of 1974 says that when we ask \nyou for information about yourself, we must frst \ntell you our legal right to ask for the information, \nwhy we are asking for it, and how it will be used. \nWe must also tell you what could happen if you do \nnot provide it and whether or not you must \nrespond under the law. \nThis notice applies to tax returns and any \npapers fled with them. It also applies to any \nquestions we need to ask you so we can \ncomplete, correct, or process your return; fgure \nyour tax; and collect tax, interest, or penalties. We \nask for information to carry out the U.S. tax laws. \nWe need the information to fgure and collect the \nright amount of tax. \nOur legal right to ask for information is found in \nInternal Revenue Code sections 6001, 6011, and \n6012 and their regulations. They say that you must \nfle a return or statement with us for any tax you \nare liable for. Your response is mandatory under \nthese sections. Sections 7601–7613 authorize us \nto examine books and records and ask questions \nto obtain information we need. Section 6109 and \nits regulations say that you must provide your \nidentifcation number on what you fle. Paid tax \nreturn preparers and electronic return originators \nare also required to provide their identifying \nnumbers.\nWe may give the information to the Department \nof Justice to enforce the federal civil and criminal \ntax laws, and to other federal agencies as \nprovided by law. We may also give it to cities, \nstates, the District of Columbia, and to U.S. \ncommonwealths or possessions to carry out their \ntax laws. We may give it to certain foreign \ngovernments under tax treaties they have with the \nUnited States. We may also disclose this \n",
"information to federal and state agencies to \nenforce federal nontax criminal laws, or to federal \nlaw enforcement and intelligence agencies to \ncombat terrorism. \nIf you do not fle a return, the law says that you \nmay be subject to penalties and interest, and in \ncertain cases, criminal prosecution. If you do not \nprovide required information, or provide false or \nfraudulent information, the law says that we may \nhave to disallow the exemptions, exclusions, \ncredits, deductions, or adjustments shown on your \nreturn. This could make your tax higher or delay \nany refund. You may also be subject to additional \ninterest, penalties, or criminal prosecution. \nPlease keep this notice with your records. You \nmay want to refer to it if we ask you for other \ninformation. If you have questions about the rules \nfor fling and giving information, please visit our \nwebsite at IRS.gov, or call or visit any Internal \nRevenue Service offce. \n"
] |
f8621a.pdf
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1213 Form 8621-A (PDF)
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https://www.irs.gov/pub/irs-pdf/f8621a.pdf
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[
"Form 8621-A\n(December 2013) \nDepartment of the Treasury \nInternal Revenue Service \nReturn by a Shareholder Making Certain Late Elections To End \nTreatment as a Passive Foreign Investment Company \n▶ Information about Form 8621-A and its separate instructions is at www.irs.gov/form8621a. \n▶ File Form 8621-A separately from your income tax return. See separate instructions. \nOMB No. 1545-1950 \nAttachment \nSequence No. 69A\nName of shareholder \nIdentifying number (see instructions) \nNumber, street, and room or suite no. (If a P.O. box, see instructions.) \nCity or town, state, and ZIP code or country \nCheck type of shareholder filing the return: \nIndividual \nCorporation \nPartnership \nS Corporation \nNongrantor Trust \nEstate \nName of shareholder contact (see instructions) \nTelephone number of shareholder contact \nName of former passive foreign investment company (PFIC) or Section 1297(e) PFIC \nEmployer identification number (if any) \nAddress (Enter number, street, city or town, and country.) \nPart I \nElections (see instructions) \nA \nLate Deemed Dividend Election With Respect to a Former PFIC. I, a shareholder of a Former PFIC, within the meaning of\nRegulations section 1.1291-9(j)(2)(iv), elect to make a late deemed dividend election with respect to the Former PFIC. My \nholding period in the stock of the Former PFIC includes the termination date, as defined in Regulations section 1.1298-3(d). I \nam requesting consent to make this election before a representative of the Internal Revenue Service has raised upon audit \nthe PFIC status of the Former PFIC for any of its taxable years. Complete Part II, lines 1, 2, and 3, and Part IV. \nB \nLate Deemed Sale Election With Respect to a Former PFIC. I, a shareholder of a Former PFIC, within the meaning of \nRegulations section 1.1291-9(j)(2)(iv), elect to make a late deemed sale election with respect to the Former PFIC. My holding \nperiod in the stock of the Former PFIC includes the termination date, as defined in Regulations section 1.1298-3(d). I am \nrequesting consent to make this election before a representative of the Internal Revenue Service has raised upon audit the \nPFIC status of the Former PFIC for any of its taxable years. Complete Part II, lines 1, 2, and 4, and Part IV. \nC \nLate Deemed Dividend Election With Respect to a Section 1297(e) PFIC. I, a shareholder of a Section 1297(e) PFIC, within \nthe meaning of Regulations section 1.1291-9(j)(2)(v), elect to make a late deemed dividend election with respect to the Section \n1297(e) PFIC. My holding period in the stock of the Section 1297(e) PFIC includes the CFC qualification date, as defined in \nRegulations section 1.1297-3(d). I am requesting consent to make this election before a representative of the Internal Revenue \nService has raised upon audit the PFIC status of the Section1297(e) PFIC for any of its taxable years. Complete Part III, lines 5, \n6, and 7, and Part IV. \nD \nLate Deemed Sale Election With Respect to a Section 1297(e) PFIC. I, a shareholder of a Section 1297(e) PFIC, within the\nmeaning of Regulations section 1.1291-9(j)(2)(v), elect to make a late deemed sale election with respect to the Section\n1297(e) PFIC. My holding period in the stock of the Section 1297(e) PFIC includes the CFC qualification date, as defined in\nRegulations section 1.1297-3(d). I am requesting consent to make this election before a representative of the Internal\nRevenue Service has raised upon audit the PFIC status of the Section 1297(e) PFIC for any of its taxable years. Complete \nPart III, lines 5, 6, and 8, and Part IV. \nPart II \nInformation for Elections With Respect to Former PFICs \n1 \nThe termination date, as defined in Regulations section 1.1298-3(d), for the Former PFIC is \n, \n. \n2 \nThe taxable year of the shareholder in which the termination date falls is the taxable year beginning\n, \nand ending \n, \n (“election year”). \n3 \nThe shareholder’s pro rata share of the post-1986 earnings and profits of the Former PFIC that is treated as distributed to the \nshareholder on the termination date is \n$ \n . Attach a schedule that shows the calculation of this amount \nas required under Regulations section 1.1298-3(c)(5)(ii). In addition, if the shareholder filed a Form 5471 for the Former PFIC for \nthe election year, attach Schedule J (Form 5471). \n4 \nThe amount of gain the shareholder elects to recognize on the deemed sale of the shareholder’s interest in the Former PFIC is\n$ \n . Complete the balance sheet on page 4 for the Former PFIC for the election year. \nPart III \nInformation for Elections With Respect to Section 1297(e) PFICs \n5 \nThe CFC qualification date, as defined in Regulations section 1.1297-3(d), for the Section 1297(e) PFIC \nis \n, \n. \n6 \nThe taxable year of the shareholder in which the CFC qualification date falls is the taxable year beginning \n, \n and ending \n, \n (“election year”). \n7 \nThe shareholder’s pro rata share of the post-1986 earnings and profits of the Section 1297(e) PFIC that is treated as distributed\nto the shareholder on the CFC qualification date is\n$ \n . Attach a schedule that shows the calculation of this\namount as required under Regulations section 1.1297-3(c)(5)(ii). In addition, if the shareholder filed a Form 5471 for the Section \n1297(e) PFIC for the election year, attach Schedule J (Form 5471). \n8 \nThe amount of gain the shareholder elects to recognize on the deemed sale of the shareholder’s interest in the Section 1297(e) \nPFIC is $ \n . Complete the balance sheet on page 4 for the Section 1297(e) PFIC for the election year. \nFor Privacy Act and Paperwork Reduction Act Notice, see separate instructions. \nCat. No. 39480Y \nForm 8621-A (12-2013) \n",
"Form 8621-A (12-2013) \nPage 2 \nPart IV \nComputation of Tax and Interest Due \n9a\nExcess distribution. Enter amount from line 3 or 4 of Part II or line 7 or 8 of Part III \n.\n.\n.\n.\n9a \nb Attach a statement that (a) shows the shareholder’s holding period for each share of stock or \nblock of shares held, (b) allocates the amount on line 9a to each day in the shareholder’s holding \nperiod, and (c) aggregates all amounts that are allocated to the same taxable year.\n10 \nEnter the total of the amounts determined in line 9b that are allocable to the election year and to \ntaxable years before the foreign corporation became a PFIC (pre-PFIC years) \n.\n.\n.\n.\n.\n.\n10 \n11 \nEnter the shareholder’s income tax liability for the election year if the amount on line 10 above \nhad been included in gross income for such year .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n11 \n12 \nEnter the amount of the shareholder’s income tax liability (see instructions), as reported on its \noriginal or amended income tax return for the election year. .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n12 \n13 \nSubtract line 12 from line 11 \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n13 \n14 \nEnter the aggregate increases in tax (before credits) for each taxable year in the shareholder’s \nholding period (other than the election year and pre-PFIC years) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n14 \n15 \nForeign tax credit (see instructions) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n15 \n16 \nSubtract line 15 from line 14 \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n16 \n17 \nDetermine interest on each net increase in tax determined on line 16 above in the manner \ndescribed in the instructions. Enter the aggregate amount of interest here \n.\n.\n.\n.\n.\n.\n.\n17 \n18 \nAdd lines 13, 16, and 17 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n18 \n19 \nDetermine interest on the line 18 amount in the manner described in these instructions. Enter the \naggregate amount of interest here. See instructions .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n19 \n20 \nIf the shareholder received an excess distribution in a prior taxable year that was not reported on a \nForm 8621, the shareholder must determine the additional tax and interest due under section 1291 as a \nresult of such excess distribution (including the interest from the due date of the return for the taxable \nyear in which the excess distribution was received until the date this form is filed with the IRS). Attach a \ncompleted Form 8621 showing the computation of the amount and enter the amount here .\n.\n.\n.\n20 \n21 \nBalance due. Add lines 18 through 20 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n21 \nImportant: Attach to Form 8621-A a copy of the Form 8621 filed by the shareholder for any taxable year in which the shareholder received\nan excess distribution from the foreign corporation. \nSign \nHere \nUnder penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge\nand belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. \nSignature and Title (if any) \nDate \n▶\n▶\nPaid \nPreparer \nUse Only\nPrint/Type preparer’s name\nPreparer's signature\nDate\nCheck if \nself-employed\nPTIN\nFirm’s name ▶\nFirm's EIN ▶\nFirm's address ▶\nPhone no.\nForm 8621-A (12-2013) \n",
"Form 8621-A (12-2013) \nPage 3 \nClosing Agreement on Final Determination Covering Specific Matters \n▶ File this Closing Agreement in Duplicate (see instructions). \nName of shareholder \nIdentifying number (see instructions) \nName of passive foreign investment company \nEIN or identifying number (see instructions) \nUnder section 7121 of the Internal Revenue Code of 1986, as amended (“the Code”), the shareholder filing this Form 8621-A (“Shareholder”), \nand the Commissioner of Internal Revenue (“Commissioner”) hereby make the following closing agreement (“Closing Agreement”). \nWHEREAS, Shareholder is requesting consent to make the election specified in Part I of this Form 8621-A with respect to the PFIC \nspecified on page 1 of this Form 8621-A (“Corporation”). \nWHEREAS, Shareholder has completed ALL of the applicable information requested on pages 1 and 2 of this Form 8621-A, which \nis incorporated into this closing agreement by reference. \nWHEREAS, under Regulations section 1.1298-3(e)(1) and Regulations section 1.1297-3(e)(1), the Commissioner may grant consent \nto \nmake \na \nlate \npurging \nelection \nif \n(1) \nShareholder \nrequests \nconsent \nto \nmake \nsuch \nelection \nbefore \na representative of the Internal Revenue Service raises upon audit the PFIC status of the foreign corporation for any taxable year \nof Shareholder; (2) Shareholder has agreed in a closing agreement with the Commissioner to eliminate any prejudice to the interests \nof the U.S. Government as a consequence of Shareholder’s inability to file amended returns for the taxable year in which the CFC \nqualification date or termination date, as applicable, falls, or an earlier closed taxable year in which Shareholder has taken a position \nthat is inconsistent with the treatment of the Corporation as a PFIC; and (3) Shareholder satisfies the procedural requirements set \nforth in Regulations section 1.1298-3(e)(3) or Regulations section 1.1297-3(e)(3). \nWHEREAS, Regulations section 1.1298-3(e)(2) and Regulations section 1.1297-3(e)(2) provide that the interests of the U.S. \nGovernment are prejudiced if granting relief would result in Shareholder having a lower tax liability (other than \nby a de minimis amount), taking into account applicable interest charges, for the taxable year that includes the CFC qualification \ndate or termination date, as applicable (or a prior taxable year in which Shareholder took a position on a return that was inconsistent \nwith the treatment of the Corporation as a PFIC), than Shareholder would have had if Shareholder had properly made the section \n1298(b)(1) election in the time prescribed in Regulations sections 1.1298-3(b)(3) or (c)(4) or Regulations sections 1.1297-3(b)(3) or (c)(4) or \nhad not taken a position in a return for an earlier year that was inconsistent with the status of the Corporation as a PFIC. \nTHEREFORE, based on the material submitted by Shareholder in connection with this Closing Agreement, and in the absence of \nother material factual or legal circumstances concerning the events described above, it is determined and agreed for federal income \ntax purposes that— \n1. The Commissioner grants Shareholder permission to make the election specified in Part I of this Form 8621-A with respect to \nCorporation. \n2. If Shareholder had made a timely election for the Election Year for Corporation, it would have had an increase in tax for the \nElection Year in the amounts shown in Part IV of this Form 8621-A. Therefore, the payment of the amount shown on line 21 of this \nForm 8621-A is sufficient to eliminate any prejudice to the interest of the U.S. Government as a result of Taxpayer’s inability to file \na return for the Election Year, a closed taxable year. \n3. Shareholder’s basis in the stock of Corporation owned directly by the shareholder will be increased by the amount of the gain \nresulting from the deemed sale election shown on line 4 or line 8 of this Form 8621-A or the amount of the deemed dividend resulting \nfrom the deemed dividend election shown on line 3 or line 7 of this Form 8621-A. \n4. This Closing Agreement constitutes a resolution under the Code of the specific matters discussed herein. No inference shall \nbe made with respect to whether this resolution satisfies other federal law. \n5. Shareholder understands that Shareholder may have defenses to the collection of tax described in the preceding paragraphs. \nNevertheless, Shareholder voluntarily waives all defenses to the assessment and collection of tax, penalties, and interest described \nin the preceding paragraphs, including any defenses based on the expiration of the period of limitations on assessment or collection. \nNOW THIS CLOSING AGREEMENT WITNESSETH, that Shareholder and the Commissioner hereby mutually agree to the \ndeterminations set forth above and further mutually agree that those determinations shall be final and conclusive, subject, \nhowever, to reopening in the event of fraud, malfeasance, or misrepresentation of material fact, and provided that any \nchange or modification of applicable statutes or tax conventions shall render this Closing Agreement ineffective to the extent \nthat it is dependent upon such statutes or tax conventions. \nIN WITNESS WHEREOF, by signing the foregoing, the above parties signify that they have read and agreed to the terms of this \ndocument. \nBy: \nDate: \nTitle: \nCOMMISSIONER OF INTERNAL REVENUE \nBy: \nDate: \nTitle: \nForm 8621-A (12-2013) \n",
"Form 8621-A (12-2013) \nPage 4 \nBalance Sheet for Election Year \nComplete this balance sheet if the shareholder is making election B or D. \nImportant: Report all amounts in U.S. dollars prepared and translated in accordance with U.S. GAAP. See the \ninstructions for an exception for DASTM corporations. \nAssets \n(a) \nBeginning of annual \naccounting period \n(b) \nEnd of annual \naccounting period \n1 \nCash \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1 \n2a\nTrade notes and accounts receivable .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2a \nb Less allowance for bad debts .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2b ( ) ( )\n3 \nInventories \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3 \n4 \nOther current assets (attach schedule) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4 \n5 \nLoans to shareholders and other related persons .\n.\n.\n.\n.\n.\n.\n.\n.\n5 \n6 \nInvestment in subsidiaries (attach schedule) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n6 \n7 \nOther investments (attach schedule) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7 \n8 \na\nBuildings and other depreciable assets .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n8a \nb Less accumulated depreciation \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n8b ( ) ( )\n9 \na\nDepletable assets .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n9a \nb Less accumulated depletion \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n9b ( ) ( )\n10 \nLand (net of any amortization) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n10 \n11 \nIntangible assets (see instructions for required attachments): \na Goodwill .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n11a \nb Organization costs .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n11b \nc Patents, trademarks, and other intangible assets .\n.\n.\n.\n.\n.\n.\n.\n.\n11c \nd Less accumulated amortization for lines 11a, b, and c .\n.\n.\n.\n.\n.\n.\n11d ( ) ( )\n12 \nOther assets (attach schedule) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n12 \n13 \nTotal assets .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n13 \nLiabilities and Shareholders’ Equity \n14 \nAccounts payable .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n14 \n15 \nOther current liabilities (attach schedule) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n15 \n16 \nLoans from shareholders and other related persons .\n.\n.\n.\n.\n.\n.\n.\n16 \n17 \nOther liabilities (attach schedule) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n17 \n18 \nCapital stock: \na Preferred stock .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n18a \nb Common stock .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n18b \n19 \nPaid-in or capital surplus (attach reconciliation) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n19 \n20 \nRetained earnings .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n20 \n21 \nLess cost of treasury stock .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n21 ( ) ( )\n22 \nTotal liabilities and shareholders’ equity .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n22 \nForm 8621-A (12-2013) \n"
] |
f1117.pdf
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0181 Form 1117 (PDF)
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https://www.irs.gov/pub/irs-pdf/f1117.pdf
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[
"Form 1117 \n(Rev. 1-1981)\nDEPARTMENT OF THE TREASURY - INTERNAL REVENUE SERVICE \nINCOME TAX SURETY BOND \nFor Foreign Taxes Reported as Credit by an Individual or a Domestic \nCorporation Under Section 901 of the Internal Revenue Code \nFOR CALENDAR YEAR\nOR FISCAL YEAR (Specify month and year beginning and ending)\nThis bond is given by\nof\nas principal, and\n, as surety or sureties. As principal and surety, we are obligated to the United States of America in\nthe amount of\ndollars ($\n). We also jointly and severally obligate our\nheirs, executors, administrators, successors, and assigns for the payment of this amount.\nThis bond is given because - \n• the principal filed Form 1116 or 1118 for the tax year above, to support credits for income, war profits, or excess profits taxes \naccrued but not paid to foreign countries or to possessions of the United States; \n• the District Director may require the principal to give a bond in an amount specified, with satisfactory sureties, before allowing \nthese credits; \n• Internal Revenue Code section 905(c) provides that if the amount of tax reported as credits differs from the amount ultimately paid \n(or if any tax paid is refunded), the principal is required to notify the District Director who will redetermine the tax for the years \naffected; and \n• on notice and demand by the District Director, the principal is required to pay any tax due as a result of the redetermination. This \nbond is conditioned on the principal's payment of that tax, and on any further conditions the District Director may require. \nWhen the principal pays any additional tax due as a result of the redetermination, plus any interest as provided by law, and otherwise \nfollows the provisions of the Internal, Revenue Code and its regulations, this obligation will be null and void. Otherwise, the obligation \nremains in effect.\nWITNESS our signatures this\n20\nday of\nSigned in the presence of -\nBond approved this\nday of\n20\nPrincipal\nPrincipal\nSurety\nSurety\nSurety\nDistrict Director\nForm 1117 (Rev. 1-1981)\nCat. No. 17210M\n"
] |
f8283v.pdf
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0813 Form 8283-V (PDF)
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https://www.irs.gov/pub/irs-pdf/f8283v.pdf
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[
"Form 8283-V\n(August 2013) \nDepartment of the Treasury \nInternal Revenue Service \nPayment Voucher for Filing Fee Under \nSection 170(f)(13)\nOMB No. 1545-2069\nWhat Is Form 8283-V and Do You Have To \nUse It? \nIt is a statement you send with your check or money order to pay the \n$500 filing fee that is required if you claim a deduction of more than \n$10,000 for a charitable contribution of an easement on the exterior of a \nbuilding in a registered historic district.\nA separate $500 filing fee is required for each contribution of this type. If \nyou do not pay the fee, your deduction will not be allowed. You may \nchoose to pay the fee electronically. If you do, you do not need to send \nin Form 8283-V. To find out how to pay electronically, go to www.irs.gov \nand enter “electronic payment of user fees” in the search box. \nHow To Fill In Form 8283-V \nLine 1. Individuals must enter their social security number (SSN). All \nother filers must enter their employer identification number (EIN). \nLine 2. Enter the tax year when the contribution was made. Fiscal year \nfilers, enter the dates your fiscal year began and ended. \nLine 3. Enter the number of contributions made during the year for \nwhich you must pay the $500 filing fee. \nLine 4. Multiply the number on line 3 by $500 and enter the result. \nLine 5. Check the box for the type of return on which the charitable \ncontribution deduction is being claimed. \nLine 6. Enter your name and address as shown on your return. \nHow To Prepare Your Payment \nPay the amount shown on line 4. Make your check or money order \npayable to “United States Treasury.” Do not send cash. \nEnter “Form 8283-V,” the tax year, and your identifying number on \nyour check or money order. Make sure your name and address appear \non your payment. \nHow and When To Send In Your Filing Fee \nPayment and Form 8283-V \n• Detach Form 8283-V along the dotted line. \n• Do not staple or otherwise attach your payment or Form 8283-V to \neach other. Instead, just put them loose in an envelope. \n• Do not mail Form 8283-V with your return. Instead, mail Form 8283-V \nand your payment, at the same time you file your return, to: \nInternal Revenue Service \nP.O. Box 9002 \nBeckley, WV 25802-9002 \nPaperwork Reduction Act Notice. We ask for the information on Form \n8283-V to help us carry out the Internal Revenue laws of the United \nStates. We need it to ensure you are complying with these laws and to \nallow us to figure and collect the right amount of tax. Section 170(f)(13) \nof the Internal Revenue Code provides that no deduction is allowed for \nthe type of charitable contribution described in these instructions unless \na $500 filing fee is paid. \nYou are not required to provide the information requested on a form \nthat is subject to the Paperwork Reduction Act unless the form displays \na valid OMB control number. Books or records relating to a form or its \ninstructions must be retained as long as their contents may become \nmaterial in the administration of any Internal Revenue law. Generally, tax \nreturns and return information are confidential, as required by Internal \nRevenue Code section 6103. \nThe average time and expenses required to complete and file this \nform will vary depending on individual circumstances. The estimated \naverage time is: \nLearning about the law \nor the form \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. 23 min. \nPreparing the form .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. 12 min. \nIf you have comments concerning the accuracy of these time \nestimates or suggestions for making this form simpler, we would be \nhappy to hear from you. See the instructions for your income tax return. \nCat. No. 49169U\nForm 8283-V (8-2013) \n▼ Detach Here and Mail With Your Payment ▼\nForm 8283-V\n(August 2013) \nDepartment of the Treasury \nInternal Revenue Service \nPayment Voucher for Filing Fee Under \nSection 170(f)(13)\n▶ Make your check or money order payable to \"United States Treasury.\" \n▶ Do not staple or attach this voucher to your payment or return.\nOMB No. 1545-2069\nPrint or type \n1 Identifying number \n2 Tax Year \n3 Number of properties \n requiring fee \nX $500.00 = \n4 \nAmount you are paying by \n check or money order\nDollars \nCents\n5 Type of Return Filed \n1040 \n1065 \n1120 \n1120S \nOther ▶\n6 Name(s) shown on your return \nDaytime phone number \nAddress (number, street, and apt. no.) \nCity, town or post office, state, and ZIP code. (If a foreign address, enter city, province or state, postal code, and country.) \n"
] |
f14534.pdf
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1013 Form 14534 (PDF)
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https://www.irs.gov/pub/irs-pdf/f14534.pdf
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[
" \nVITA/TCE Programs \nVolunteer Training\nCertificate of Completion \nName of Attendee\nFor completion of\nIntake/Interview & Quality Review Training\nPresent this certificate to your Site Coordinator as proof that you have reviewed the Intake/Interview & Quality Review Training Powerpoint.\nDate of completion\nForm 14534 (10-2013)\nCatalog Number 65382T\nDepartment of the Treasury – Internal Revenue Service\npublish.no.irs.gov\n"
] |
f1120nd.pdf
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1013 Form 1120-ND (PDF)
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https://www.irs.gov/pub/irs-pdf/f1120nd.pdf
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[
"Form 1120-ND\n(Rev. October 2013)\nDepartment of the Treasury \nInternal Revenue Service \nReturn for Nuclear Decommissioning Funds and \nCertain Related Persons \n▶ Information about Form 1120-ND and its separate instructions is at www.irs.gov/form1120nd.\nOMB No. 1545-0954\nFor calendar year 20\n, or fiscal year beginning\n, 20\n, and ending\n, 20\nPlease Type or Print \nName of fund\nName of trustee or disqualified person (complete if filing to report section 4951 taxes)\nAddress of filer. Number, street, and room or suite no. If a P.O. box, see instructions.\nCity or town, state or province, country, ZIP or foreign postal code\nA Employer identification number of fund \n (see instructions)\nB Identifying number of trustee or \n disqualified person (see instructions)\nC Return filed for (see Specific Instructions, check applicable box): \nFund\nTrustee \nDisqualified person\nD Check applicable boxes: \n(1) \nFinal return \n(2) \nName change \n(3) \nAddress change \n(4) \nAmended return \nE The books are in care of ▶\nPhone no. ▶\nLocated at ▶\nPart I—Computation of Fund Income Tax \nIncome \n1 \nTaxable interest \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1 \n2 \nCapital gain net income (attach Schedule D (Form 1120)) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n2 \n3 \nOther income (attach schedule) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n3 \n4 \nGross income. Add lines 1 through 3 \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n4 \nDeductions \n5 \nTrustees fees \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n5 \n6 \nTaxes .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n6 \n7 \nAccounting and legal services .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n7 \n8 \nOther deductions (attach schedule) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n8 \n9 \nTotal deductions. Add lines 5 through 8 \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n9 \n10 \nModified gross income before net operating loss deduction. Subtract line 9 from line 4 .\n \n10 \n11 \nNet operating loss deduction (see instructions) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n11 \nTax and Payments \n12 \nModified gross income. Subtract line 11 from line 10 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n12 \n13 \nTotal tax. Multiply line 12 by 20% \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n13 \n14 \nPayments: \na Overpayment from prior year \nallowed as a credit \n.\n.\n. \n14a \nb Current year estimated tax \npayments \n.\n.\n.\n.\n.\n. \n14b \nc Refund applied for on Form \n4466 .\n.\n.\n.\n.\n.\n.\n. \n14c (\n)\nd Subtract line 14c from the total of lines 14a and 14b \n.\n.\n.\n \n14d \ne Tax deposited with Form 7004 \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n14e \nf \nTotal payments. Add lines 14d and 14e .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n14f \n15 \nEstimated tax penalty. Check if Form 2220 is attached .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n15 \n16 \nTax due. If line 14f is smaller than the total of lines 13 and 15, enter amount owed \n.\n.\n16 \n17 \nOverpayment. If line 14f is larger than the total of lines 13 and 15, enter amount overpaid \n17 \n18 \nEnter amount of line 17 you want: Credited to next year’s estimated tax ▶\nRefunded ▶\n18 \nSign \nHere\nUnder penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, \ncorrect, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.\n▲\nSignature of officer\nDate\n▲\nTitle\nMay the IRS discuss this return with \nthe preparer shown below (see \ninstructions)?\nYes\n No \nPaid \nPreparer \nUse Only\nPrint/Type preparer’s name\nPreparer’s signature\nDate\nCheck if \nself-employed \nPTIN\nFirm’s name ▶\nFirm’s address ▶\nFirm's EIN ▶\nPhone no. \nFor Paperwork Reduction and Privacy Act Notice, see separate instructions.\nCat. No. 11507K\nForm 1120-ND (Rev. 10-2013)\n",
"Form 1120-ND (Rev. 10-2013) \nPage 2 \nSchedule L \nBalance Sheets \n(a) Beginning of year \n(b) End of year \nAssets \n1 \nCash \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n1 \n2 \nCertificates of deposit .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2 \n3 \nU.S. government obligations \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3 \n4 \nState and local government obligations .\n.\n.\n.\n.\n.\n.\n.\n4 \n5 \nOther assets (attach schedule) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n5 \n6 \nTotal assets. Add lines 1 through 5 \n.\n.\n.\n.\n.\n.\n.\n.\n.\n6 \nLiabilities and Fund Balance \n7 \nLiabilities .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n7 \n8 \nFund balance \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n8 \n9 \nTotal liabilities and fund balance. Add lines 7 and 8 .\n.\n.\n. \n9 \nSchedule M \nOther Information \nYes No\n1a Enter name of the electing taxpayer ▶\nb Enter the employer identification number of the electing taxpayer ▶\n2 \na Enter the amount of contributions the fund received during the year under section 468A(a) . ▶\n$ \nb Enter the ruling amount for the tax year under section 468A(d)(2) \n.\n.\n.\n.\n.\n.\n. ▶\n$ \nc \nEnter the amount of distributions includible in income by the electing taxpayer under section 468A(c)(1) ▶\n$ \nd Enter the amount of tax-exempt interest received or accrued for the year .\n.\n.\n.\n. ▶\n$ \n3 \nDuring the year were any contributions received other than cash payments deductible by the electing taxpayer under section 468A? \n4 \nDuring the year were fund assets used for any purpose other than paying the fund’s administrative or incidental \nexpenses (including taxes), for making investments, or for direct or indirect payment of decommissioning costs of\na nuclear power plant owned or leased by the electing taxpayer? If “Yes,” attach an explanation .\n.\n.\n.\n.\n.\n5 \nSelf-dealing (see instructions): \na Has the fund engaged in any of the following acts during the year, either directly or indirectly, with one or more \ndisqualified persons? \n(i) Sale, exchange, or leasing of property \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n(ii) Borrowing or lending of money or other extension of credit .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n(iii) Furnishing of goods, services, or facilities \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n(iv) Payment of compensation (or payment or reimbursement of expenses) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n(v) Transfer to, or use by or for the benefit of, a disqualified person of any part of the fund’s income or assets .\nb If any of lines 5a(i) through 5a(v) are answered “Yes,” were all of the acts self-dealing exceptions? (see inst.) .\n. \nc If the answer to line 5b is “No,” attach a schedule listing the act; the date of the act; and the name, address, and \nidentifying number of each trustee and/or disqualified person who engaged in the act. \nd Has any self-dealer or trustee taken any action to “correct” any act of self-dealing? See instructions for the \ndefinition of “correct.” .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nIf “Yes,” attach complete details of the corrective action. Also explain any uncorrected acts. \nPart II—Initial Taxes on Self-Dealing (Section 4951) \n Section A.—Acts of Self-Dealing and Tax Computation \n(a) Act number \n(b) Date of act \n(c) Description of act \n1 \n2 \n(d) Names of disqualified persons liable for tax \n(e) Names of trustees liable for tax \n(f) Amount involved in act \n(g) Initial tax on self-dealing disqualified person (10% of column (f)) \n(h) Tax on trustee (if applicable) (21/2% of column (f)) \nTotal .\n.\n.\n.\n.\n.\n.\n. ▶\nSection B.—Summary of Initial Taxes \n1 \nEnter section 4951 tax on disqualified person (Section A, column (g)) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1 \n2 \nEnter section 4951 tax on trustee (Section A, column (h)) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n2 \n3 \nTotal section 4951 taxes (add lines 1 and 2) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3 \n4 \nTax paid with Form 7004 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n4 \n5 \nTax due. Enter the excess, if any, of line 3 over line 4. (Do not enter this amount in Part I.) Pay in\nfull with return. (Make check or money order payable to “United States Treasury.”) \n.\n.\n.\n.\n.\n5 \n6 \nOverpayment. Enter the excess, if any, of line 4 over line 3 \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n6 \nForm 1120-ND (Rev. 10-2013)\n"
] |
it.pdf
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1213 Inst T (Timber) (PDF)
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https://www.irs.gov/pub/irs-pdf/it.pdf
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[
"Instructions for Form T \n(Timber)\n(Rev. December 2013)\nForest Activities Schedule\nDepartment of the Treasury\nInternal Revenue Service\nSection references are to the Internal \nRevenue Code unless otherwise noted.\nFuture Developments\nFor the latest information about \ndevelopments related to Form T \n(Timber) and its separate instructions, \nsuch as legislation enacted after it is \npublished, go to www.irs.gov/timber.\nGeneral Instructions\nPurpose of Form\nUse Form T (Timber), Forest Activities \nSchedule, to provide information on \ntimber accounts when a sale or \ndeemed sale under sections 631(a), \n631(b), or other exchange has \noccurred during the tax year.\nFor additional information \nregarding federal income tax rules for \nreporting forest-related activities, see \nthe following publications:\nPub. 225, Farmer’s Tax Guide,\nPub. 535, Business Expenses, and\nPub. 544, Sales and Other \nDispositions of Assets.\nWho Must File\nComplete and attach Form T to your \nincome tax return only if you:\nClaim a deduction for depletion of \ntimber,\nElect under section 631(a) to treat \nthe cutting of timber as a sale or \nexchange, or\nMake an outright sale of timber \nunder section 631(b).\nComplete Form T in accordance \nwith sections 194, 611, 631, and \n1231, and the related regulations.\nExceptions. You are not required to \nfile Form T if you only have an \noccasional sale of timber (one or two \nsales every 3 or 4 years). However, \nyou must maintain adequate records \nof these transactions and other \ntimber-related activities during the \nyear, as discussed in Recordkeeping, \nbelow. These transactions may be \ntreated as an investment for tax \npurposes if your property is not held \nfor use in a trade or business.\nIf you are required to file \nForm T for the current tax \nyear (as discussed above \nunder Who Must File), complete all \nthe parts of the form that apply. \nHowever, if you are not required to file \nForm T but have other forest-related \nactivities (reportable in Part I \n(Acquisitions), Part IV (Reforestation \nand Timber Stand Activities), or Part V \n(Land Ownership), complete and \nattach the appropriate tax form (for \nexample, Form 4562 to claim \ndepreciation) or statement to your \nincome tax return to report these \nactivities. Also, maintain adequate \nrecords as discussed in \nRecordkeeping, below.\nRecordkeeping\nMaps. Do not attach maps of your \ntimber properties to Form T to \nsubstantiate any claimed deduction \nfor depletion of timber. Instead, you \nare required to retain records \nsufficient to substantiate your right to \nclaim the deduction, including a map \n(where necessary) to show clearly the \nlocation(s) of timber and land \nacquired, timber cut, and timber and \nland sold for as long as their contents \nmay become material in the \nadministration of any Internal \nRevenue law.\nOther business records. You must \nalso keep business records to support \nother items reported on your tax return \nsuch as expenses incurred during the \ntax year for road construction and for \nbuilding drainage structures.\nNote. Maintain separate cost \naccounts for road construction and \ndrainage structures, such as ditches \nand canals. For example, for roads \nconstructed for logging timber or to \nconduct management activities on fee \nland or land held under long-term \ncutting contracts, maintain records \nshowing the number of miles \nconstructed and how the total \nexpenditures were either (a) \nCAUTION\n!\ncapitalized, (b) amortized, or (c) \nclaimed as an ordinary expense.\nKeep separate records for each \nunique stand identifier, depletion \naccount, block, tract, or geographic \narea tributary to a mill or mill complex. \nAlso, keep records that verify the \nbasis in property for as long as they \nare needed to figure the basis of the \noriginal or replacement property.\nSpecific Instructions\nPart I. Acquisitions\nComplete this part if you acquired \ntimber, timber-cutting contracts, or \nforest land during the tax year, \nwhether the acquisition was by \npurchase, exchange, gift, or \ninheritance.\nHow to Report Acquisitions\nReport acquisitions during the tax \nyear (whether taxable or not) of \ntimber, timber-cutting contracts, or \nforest land. Report separately each \nacquisition of $10,000 or more.\nYou may combine acquisitions of \nless than $10,000 for each account \nand omit lines 2 and 3. For an \nacquisition by gift or inheritance, skip \nlines 4 through 7.\nFor an acquisition or lease of \ntimber-cutting rights on a pay-as-cut \nbasis, except for those under which all \ncutting is completed within the tax \nyear, do not complete lines 4 through \n8. Instead, list the provisions of the \npurchase or lease agreement, \nincluding the number of years from \nthe effective date to the expiration \ndate, annual minimum cut or payment, \nand the payment rates for different \nkinds of timber and forest products. \nFollow the format of lines 1 through 9 \non additional sheets if necessary.\nWhat Is Included in Each \nAccount\nYou must include your timber in one \nor more accounts. Generally, each \naccount must include all your timber \nJun 20, 2013\nCat. No. 39879B\n",
"that is located in one “block.” A block \nmay be:\n1. An operational unit that includes \nall timber that would logically go to a \nsingle point of manufacture,\n2. A logging unit that includes all \ntimber that would logically be \nremoved by a single logging \ndevelopment, or\n3. An area established by the \ngeographical or political boundaries of \nlogical management areas. Timber \nacquired under a cutting contract may \nnot be included in part of a block, but \nshould be kept in a separate account.\nFor exceptional cases, the timber in \na given block may be divided into two \nor more accounts. See Regulations \nsection 1.611-3(d) for more \ninformation.\nPart II. Timber Depletion\nComplete this part for each timber \naccount that has changed in quantity \nor dollar amount. A timber account \nmay change in quantity or dollar \namount as a result of acquisitions, \ndispositions, the cutting of timber, \ncapitalized expenditures, casualty or \ntheft losses, corrections, additions for \ngrowth, and transfers from other \naccounts. Use this part to figure \ndepletion for timber cut or the basis \nfor timber sold or lost during the tax \nyear. A depletion schedule is required \nto be maintained for all types of timber \nownership.\nLines 1 through 6\nProvide data for each timber account \nseparately. Account for any changes \nthat have occurred during the tax \nyear. Attach as many additional pages \nas needed. If you deplete on a block \nbasis, combine new purchases with \nthe opening balances and use the \naverage depletion rate shown on \nline 8, column (b), for all timber cut or \nsold, regardless of how long held.\nLine 14, column (b)\nThe casualty loss limitation is \ndetermined by the decrease in fair \nmarket value (FMV) of the Single \nIdentifiable Property (block) before \nand after the casualty event, not to \nexceed the basis in the affected block. \nKeep FMV appraisals in your records \nto support the claimed loss (see \nRecordkeeping, earlier).\nLine 18a\nIf you are making the 631(a) election, \nor have made the election in a prior \ntax year, check the “Yes” box on \nline 18a.\nNote. The 631(a) election cannot be \nmade on an amended return.\nYou must maintain the following \nrecords.\nAdjusted basis for depletion. \nMaintain records that show the \nadjusted basis for depletion, fair \nmarket value (FMV), and gain or loss \nfor each sale or exchange of standing \ntimber for which you have a section \n631(a) election. The records must \nshow the adjusted basis for depletion \nand the FMV of the timber as of the \nfirst day of the tax year in which timber \nwas cut. The records must show \nthese amounts by species and unit \nrates if these transactions are \nreported on a species basis. The gain \nor loss on standing timber is reported \non Form 4797, Sales of Business \nProperty.\nDate of acquisition. The records \nmust provide the date of acquisition of \ntimber that was cut in the tax year, if \nacquired after March 1, 1913; the \nquantity of timber remaining (adjusted \nfor growth, correction of estimates, \nchanges in use, and any change in \nthe log rule or other measure used); \nand the adjusted basis at the \nbeginning of the tax year. The records \nmust state the acreage cut, the \namount of timber cut from the \napplicable block during the tax year, \nand the log rule or other method used \nto determine the quantity of timber \ncut. If depletion accounts are kept by \nseparate tracts or purchases, give the \ninformation separately for each tract \nor timber purchase.\nIf an average depletion rate based \non the average value or cost of a \ntimber block was used in earlier years, \nthe adjusted basis referred to in \nsection 631(a) is the average basis \nshown on line 8, column (b), after \nadjustment.\nCharacteristics of the timber. The \nrecords must describe in detail the \ncharacteristics of the timber that affect \nits value, such as total quantity, \nspecies, quality, quantity per acre, \nsize of the average tree, logging \nconditions, and distance to markets.\nValuation evidence. The records \nmust provide evidence in the form of \nactual sales of comparable timber as \nof the valuation date, along with other \nvaluation evidence used. Include a \ncomputation showing the difference \nbetween the cost (excluding timber or \nstumpage cost) and value of the \nprimary wood product (logs or other \nroundwood, chips, etc.) at the mill or \nplant. Give detailed evidence that \npermits a comparison with the timber \non which you report a value.\nAdditional information. The records \nmust include the following additional \ninformation:\n1. Location of the sawmill, log \nmarket, or other point of delivery of \nthe logs or wood to the user or buyer.\n2. The total MBF, log scale, cords, \nor other units of timber cut, and the \nlength and diameter of the average \nlog or the average number of units per \ntree.\n3. The percentage of rough \nlumber grades, by species, \nmanufactured from the timber during \nthe year, or, if cut timber is sold as \nlogs, the percentage of log grades, by \nspecies.\nTimber owned or held under a con\ntract right to cut. Show the amount \nof timber owned, or held under a \ncontract right to cut, for a period of \nmore than 1 year. Show separately \nthe quantity of timber cut that was \nheld for less than 1 year. The scale of \nlogs purchased during the year must \nbe shown by species and quantity and \nexcluded from the quantity shown as \ncut under section 631(a) in Part II, \nline 17. Also show the number, cost, \nand point of delivery of purchased \nlogs by species and grade.\nLine 18b\nIf you are revoking your 631(a) \nelection, check the “Yes” box.\nIf you made a section 631(a) \nelection for any tax year ending before \nOctober 23, 2004, you can revoke that \nelection without the consent of the \nIRS for any tax year ending after \nOctober 22, 2004. The prior election \n(and revocation) is disregarded for \npurposes of making a subsequent \nelection. Unless this special rule \napplies, or the election was made for \na tax year beginning before 1987, you \ncan only revoke a section 631(a) \nelection with IRS consent.\n2\n",
"Part III. Profit or Loss From \nLand and Timber Sales\nComplete this part to report all \ndispositions of timber, timber-cutting \ncontracts, or forest land during the tax \nyear (whether taxable or not). Do not \nreport dispositions by gift or \ndistributions made by an estate or to a \nbeneficiary.\nReport each sale involving total \nconsideration of $10,000 or more. \nYou may combine sales of less than \n$10,000 for each timber or land \naccount and omit lines 2 and 3 for \neach combined small sale.\nOutright sales of timber. Certain \nrules under section 631(b) allow the \nlandowner to treat outright sales of \ntimber as capital gain. The rules \nextending capital gains treatment to \noutright sales of timber are similar to \ncertain disposals of timber under a \ncontract with a retained economic \ninterest. However, for outright sales, \nthe date of disposal is not deemed to \nbe the date timber is cut because the \nowner may elect to treat the payment \ndate as the date of disposal. For more \ninformation, see section 631(b) and \nPub. 544.\nTimbercutting contract. For a sale \nor lease of timber-cutting rights on a \npay-as-cut basis, that will be paid for \nat intervals during the cutting period \naccording to the number of units cut, \ncomplete lines 4, 7, and 8, only for \naccounts that must be reported on \nyour current year income tax return.\nInstead of completing lines 5a, 5b, \nand 6, briefly state the provisions of \nthe sale or lease agreement, including \nthe number of years from the effective \ndate to the expiration date, annual \nminimum cut or payment, and the \npayment rates for the different kinds \nof timber and forest products. You \nmay combine small sales or leases of \ntimber-cutting rights on a pay-as-cut \nbasis that were completed within the \ntax year. Follow the format of lines 1 \nthrough 8 on additional sheets if \nnecessary.\nPart IV. Reforestation and \nTimber Stand Activities\nSummarize your expenditures for \nreforestation and timber stand \nactivities during the tax year. Timber \nstand activities include all silvicultural \nprescriptions (such as burning, \nspraying, and thinning) applied to a \ntimber stand regardless of age.\nLine 4a. Reforestation \nExpenses\nBy entering an amount on this line, \nyou are indicating that you have \nelected to deduct qualifying \nreforestation expenses that were paid \nor incurred after October 22, 2004, for \neach qualified timber property under \nsection 194(b). You must complete \nline 1 of Part IV listing the following:\nThe account, block, tract, area or \nstand identification number for each \nqualified timber property (QTP);\nThe kind of activity (burning, \nchopping, spraying, planting, seeding, \nthinning, pruning, fertilizing, etc.);\nThe number of acres treated; and\nThe total expenditures.\nThe aggregate amount of \nreforestation expenses which can be \nclaimed on line 4a for any tax year \ncannot exceed $10,000 ($5,000 if \nyour filing status is married filing \nseparately) for each qualified timber \nproperty for any tax year. The \nremaining costs (line 4b) can be \namortized over an 84-month period \nusing the half-year convention under \nsection 194(a). For more information \non reforestation costs, see Pub. 535.\nIf you do not elect to deduct \nreforestation expenses under section \n194(b), all reforestation expenses will \nbe capitalized in a deferred timber \ndepletion account.\nReforestation expenses are direct \ncosts incurred for reforestation by \nplanting or artificial or natural seeding. \nThis includes costs for the preparation \nof the site, of seeds or seedlings, and \nfor labor and tools, including \ndepreciation of equipment such as \ntractors, trucks, tree planters, and \nsimilar machines used in planting or \nseeding.\nReimbursements under govern\nmental reforestation costsharing \nprograms. If you have been \nreimbursed under any governmental \nreforestation cost-sharing program, \nyou may not claim these expenses \nunless the amount reimbursed has \nbeen included in your income.\nQualified timber property (QTP). \nAny qualified timber property subject \nto section 194(b) may not be \ncombined with any other qualified \ntimber property account (depletion \nblock) for which depletion is allowed \nor for casualty losses (that is, lines 13 \nand 14 of Part II) or other purposes. \nThe qualified timber property account \nmust be maintained until after the \ntimber is disposed of through sale, \nharvest, or other transaction.\nFor each qualified timber property \n(QTP), keep detailed information to \nsupport reforestation costs, showing \ntreatments and dates of application. \nEach qualified timber property is \nrequired to have a unique stand \nidentifier. Retain this information for \nyour records. Report expenses such \nas supplies, labor, overhead, \ntransportation, tools, and depreciation \non equipment.\nSite preparation. Report all \nexpenses incurred during the tax year \nfor preparing the land for planting or \nseeding (including natural seeding). \nInclude expenses for clearing the land \nof brush and culling trees by burning, \ndisking, chopping, shearing and \npiling, spraying with herbicides, or \nother measures taken to aid \nsuccessful site reforestation. Report \nthis information separately for each \nunique stand identifier, depletion \naccount, block, tract, or operating \narea tributary to a mill or mill complex. \nReport contract work separately from \nyour employees' work.\nPlanting or seeding. Report the \nexpenses you incurred during the tax \nyear for planting seedlings or sowing \nseed to reforest the land. Report this \ninformation separately for each \nunique stand identifier, depletion \naccount, block, tract, or operating \narea tributary to a mill or mill complex. \nReport contract work separately from \nyour employees' work.\nOther silvicultural activities. \nReport all expenditures that must be \ncapitalized and items that you elect to \ncapitalize. Also, list on a separate \nattachment items that are treated as \ncurrent deductions (including, but not \nlimited to, weed control, pruning, \nfertilization, thinning, insect and \ndisease control). Report this \ninformation separately for each \nunique stand identifier, depletion \naccount, block, tract, or operating \narea tributary to a mill or mill complex. \nReport contract work separately from \nyour employees' work.\nFor more information, see section \n194 and Regulations section 1.194-3.\n3\n",
"Part V. Land Ownership\nComplete this part to show all \nchanges in your land account, \nincluding sales or exchanges, during \nthe tax year. Attach as many \nadditional sheets as needed, following \nthe format of lines 1 through 6.\nPaperwork Reduction Act Notice. \nWe ask for the information on this \nform to carry out the Internal Revenue \nlaws of the United States. You are \nrequired to give us the information. \nWe need it to ensure that you are \ncomplying with these laws and to \nallow us to figure and collect the right \namount of tax.\nYou are not required to provide the \ninformation requested on a form that \nis subject to the Paperwork Reduction \nAct unless the form displays a valid \nOMB control number. Books or \nrecords relating to a form or its \ninstructions must be retained as long \nas their contents may become \nmaterial in the administration of any \nInternal Revenue law. Generally, tax \nreturns and return information are \nconfidential, as required by section \n6103.\nThe time needed to complete and \nfile this form will vary depending on \nindividual circumstances. The \nestimated burden for individual \ntaxpayers filing this form is approved \nunder OMB control number \n1545-0074 and is included in the \nestimates shown in the instructions for \ntheir individual income tax return. The \nestimated burden for all other \ntaxpayers who file this form is shown \nbelow.\nRecordkeeping . . . . . . . .\n34 hr., 12 min.\nLearning about the law or \nthe form . . . . . . . . . . . . .\n 42 min.\nPreparing and sending \nthe form to the IRS\n. . . . . 1 hr., 17 min.\nIf you have comments concerning \nthe accuracy of these time estimates \nor suggestions for making this form \nsimpler, we would be happy to hear \nfrom you. See the instructions for the \ntax return with which this form is filed.\n4\n"
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ft.pdf
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1213 Form T (Timber) (PDF)
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https://www.irs.gov/pub/irs-pdf/ft.pdf
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"Form T (Timber)\n(Rev. December 2013) \nDepartment of the Treasury \nInternal Revenue Service\nForest Activities Schedule \n▶ Attach to your tax return. \n▶ Information about Form T (Timber) and its separate instructions is at www.irs.gov/timber.\nFor tax year ending \n, 20 \n. \nOMB No. 1545-0007\nAttachment \nSequence No. 117\nName(s) as shown on return \nIdentifying number \nPart I \nAcquisitions \n1 \nName of block and title of account \n2 \nLocation of property (by legal subdivisions or map surveys) \n3 \na Name and address of seller or person from whom property was acquired \nb Date acquired \n4 \nAmount paid: \na In cash .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nb In interest-bearing notes \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nc In non-interest-bearing notes .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5a Amount of other consideration .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nb Explain the nature of other consideration and how you determined the amount shown on line 5a. \n6 \nLegal expenses .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7 \nCruising, surveying, and other acquisition expenses .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n8 \nTotal cost or other basis of property. Add lines 4a through 7 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n9 \nAllocation of total cost or other basis on books: \nUnit \nNumber of units \nCost or other \nbasis per unit \nTotal cost or other basis \na Forested land \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nAcre \nb Other unimproved land \n.\n.\n.\n.\n.\n.\n.\nAcre \nc Improved land (describe) ▶\nAcre \n \nd Merchantable timber. Estimate the quantity \nof merchantable timber present on the \nacquisition date (see Regulations section \n1.611-3(e)). Details of the timber estimate, \nmade for purposes of the acquisition, should \nbe available if your return is examined. \n{\n \n \n \n \n \n \n \n \n \n \ne Premerchantable timber. Make an allocation \nhere only if it is a factor in the total cost or \nvalue of the land. \n{\n \n \n \n \n \n \nf \nImprovements (list separately) \n \n \n \n \n \ng Mineral rights \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nh Total cost or other basis (same amount as line 8). Add lines 9a through 9g \n.\n.\n.\n.\n.\n.\n.\n.\n.\nFor Paperwork Reduction Act Notice, see separate instructions. \nCat. No. 16717G \nForm T (Timber) (Rev. 12-2013) \n",
"Form T (Timber) (Rev. 12-2013)\nPage 2 \nPart II \nTimber Depletion (see instructions) \n1 \nName of block and title of account ▶\nIf you express timber quantity in thousand board feet (MBF), \nlog scale, name the log rule used. If another unit of measure is \nused, provide details ▶\n(a) \nQuantity \n (b) \nCost or \nother basis\n2 \nEstimated quantity of timber and cost or other basis returnable through depletion \nat end of the preceding tax year \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3 \nIncrease or decrease of quantity of timber required by way of correction .\n.\n.\n4 \na Addition for growth (number of years covered ▶\n) .\n.\n.\n.\n.\n.\nb Transfers from premerchantable timber account .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nc Transfers from deferred reforestation account .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5 \nTimber acquired during tax year \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n6 \nAddition to capital during tax year .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7 \nTotal at end of tax year, before depletion. Add lines 2 through 6 .\n.\n.\n.\n.\n.\n8 \nUnit rate returnable through depletion, or basis of sales or losses. Divide line 7, \ncolumn (b), by line 7, column (a) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n9 \nQuantity of timber cut during tax year \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n10 \nDepletion for the current tax year. Multiply line 8 by line 9 .\n.\n.\n.\n.\n.\n.\n.\n11 \nQuantity of standing timber sold or otherwise disposed of during tax year \n.\n.\n12 \nAllowable as basis of sale. Multiply line 8 by line 11 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n13 \nQuantity of standing timber lost by fire or other cause during tax year .\n.\n.\n.\n14 \nAllowable basis of loss plus any excess amount where decrease in FMV (before \nand after the casualty) exceeds the standard depletion amount, but not the block \nbasis (see instructions) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n15 \nTotal reductions during tax year: \na In column (a), add lines 9, 11, and 13 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nb In column (b), add lines 10, 12, and 14 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n16 \nNet quantity and value at end of tax year. In column (a), subtract line 15a from \nline 7. In column (b), subtract line 15b from line 7 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n17 \nQuantity of cut timber that was sold as logs or other rough products \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n18 \nSection 631(a): \na Are you electing, or have you made an election in a prior tax year that is in effect, to report gains or \nlosses from the cutting of timber under section 631(a)? (see instructions) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes \nNo \nb Are you revoking your section 631(a) election (see instructions)? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes \nNo \nEffective date ▶\nForm T (Timber) (Rev. 12-2013) \n",
"Form T (Timber) (Rev. 12-2013)\nPage 3 \nPart III \nProfit or Loss From Land and Timber Sales (see instructions) \n1 \nName of block and title of account \n2 \nLocation of property (by legal subdivisions or map surveys) \n3 \na Purchaser’s name and address \nb Date of sale \n4 \nAmount received: a In cash .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nb In interest-bearing notes .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nc In non-interest-bearing notes \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5a Amount of other consideration .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nb Explain the nature of other consideration and how you determined the amount shown on line 5a: \n6 \nTotal amount received for property. Add lines 4a, 4b, 4c, and 5a \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7 \nCost or other basis of property: \nUnit \nNumber of units \nCost or other \nbasis per unit \nTotal cost or other basis \na Forested land \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nAcre \nb Nonforested land .\n.\n.\n.\n.\n.\n.\n.\n.\nAcre \nc Improved land (describe) ▶\nAcre \nd Merchantable timber. Estimate in detail the \nquantity of merchantable timber on the date \nof sale or exchange. Include the quantity of \ntimber in each species of timber by \ndiameter at breast height (DBH) classes. \nState the log rule used if the unit of measure \nis thousand board feet (MBF), log scale. If \nanother unit of measure is used, provide \ndetails. ▶\n{\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \ne Premerchantable timber .\n.\n.\n.\n.\n.\n. {\n \n \n \n \n \n \n \n \nf \nImprovements (list separately) \n \n \n \n \ng Mineral rights \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nh Total cost or other basis. Add lines 7a through 7g \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\ni \nDirect sale expenses (cruising, marking, selling) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n8 \nProfit or loss. Subtract the sum of lines 7h and 7i from line 6 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nForm T (Timber) (Rev. 12-2013) \n",
"Form T (Timber) (Rev. 12-2013)\nPage 4 \nPart IV \nReforestation and Timber Stand Activities (see instructions) \nAccount, block, tract, area, or stand ID for each \nQualified Timber Property (QTP) \nKind of activity (burning, chopping, \nspraying, planting, seeding, thinning, \npruning, fertilizing, etc.) \nNumber of \nacres treated \nTotal \nexpenditures \n1 \n2 \nTotal \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3 \nTotal reforestation expenses \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4a Amount to be expensed under section 194(b). \n(See instructions for limitations) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nb Amount to be amortized under IRC 194(a), including remaining reforestation \nexpenditures not expensed under section 194(b) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nPart V \nLand Ownership \nShow all changes in land accounts. Attach as many additional sheets as needed, following the format of lines 1 through 6. \n1 \n \nName of block and title of account ▶\nAcres \nTotal cost \nor other basis. Give \namount of March 1, \n1913 appreciation, if \nincluded \nAverage rate \n per acre \n2\nBalance at beginning of year \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3\nAcquisitions during year .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4\nSales during year .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\nOther changes .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n6 \nBalance at end of year. Add lines 2 and 3, subtract line 4 and \nadd or subtract line 5 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nAdditional Information. \nForm T (Timber) (Rev. 12-2013) \n"
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p556.pdf
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0913 Publ 556 (PDF)
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https://www.irs.gov/pub/irs-pdf/p556.pdf
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"Department of the Treasury\nInternal Revenue Service\nPublication 556\n(Rev. September 2013)\nCat. No. 15104N\nExamination\nof Returns, \nAppeal Rights, \nand Claims for \nRefund\nGet forms and other Information\nfaster and easier by:\nInternet IRS.gov\nContents\nThe IRS Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . 1\nReminders\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1\nIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1\nExamination of Returns\n. . . . . . . . . . . . . . . . . . . . . 2\nAppeal Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8\nClaims for Refund\n. . . . . . . . . . . . . . . . . . . . . . . . 13\nHow To Get Tax Help\n. . . . . . . . . . . . . . . . . . . . . . 17\nIndex\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20\nThe IRS Mission\nProvide America's taxpayers top quality service by helping \nthem understand and meet their tax responsibilities and \nby applying the tax law with integrity and fairness to all.\nReminders\nPenalty for filing erroneous claim for refund or \ncredit. You may have to pay a penalty if you file an erro-\nneous claim for refund or credit. See Penalty for errone\nous claim for refund, later under Claims for Refund.\nInterest and penalties suspended if notice not mailed \nwithin 36 months. If you file your return timely (including \nextensions), interest and certain penalties will be suspen-\nded if the IRS does not mail a notice to you within 36 \nmonths. See Suspension of interest and penalties, later \nunder Examination of Returns.\nFast track mediation. The IRS offers fast track media-\ntion services to help taxpayers resolve many disputes re-\nsulting from:\nExaminations (audits),\nOffers in compromise,\nTrust fund recovery penalties, and\nOther collection actions.\nSee Fast track mediation under If You Do Not Agree.\nIntroduction\nThe Internal Revenue Service (IRS) accepts most federal \ntax returns as filed. However, the IRS examines (or audits) \nsome returns to determine if income, expenses, and cred-\nits are being reported accurately.\nIf your return is selected for examination, it does not \nsuggest that you made an error or are dishonest. Returns \nare chosen by computerized screening, by random sam-\nple, or by an income document matching program. See \nExamination selection criteria, later. You should also know \nSep 26, 2013\n",
"that many examinations result in a refund or acceptance \nof the tax return without change.\nThis publication discusses general rules and proce-\ndures that the IRS follows in examinations. It explains \nwhat happens during an examination and your appeal \nrights, both within the IRS and in the federal court system. \nIt also explains how to file a claim for refund of tax you al-\nready paid.\nAs a taxpayer, you have the right to be treated fairly, \nprofessionally, promptly, and courteously by IRS employ-\nees. Publication 1, Your Rights as a Taxpayer, explains \nyour rights when dealing with the IRS.\nComments and suggestions. We welcome your com-\nments about this publication and your suggestions for fu-\nture editions.\nYou can write to us at the following address:\nInternal Revenue Service\nTax Forms and Publications Division\n1111 Constitution Ave. NW, IR-6526\nWashington, DC 20224\nWe respond to many letters by telephone. Therefore, it \nwould be helpful if you would include your daytime phone \nnumber, including the area code, in your correspondence.\nYou can send your comments from www.irs.gov/\nformspubs/. Click on “More Information” and then on \n“Comment on Tax Forms and Publications.”\nAlthough we cannot respond individually to each com-\nment received, we do appreciate your feedback and will \nconsider your comments as we revise our tax products.\nOrdering forms and publications. Visit www.irs.gov/\nformspubs to download forms and publications, call \n1-800-TAX-FORM (1-800-829-3676), or write to the ad-\ndress below and receive a response within 10 days after \nyour request is received.\nInternal Revenue Service\n1201 N. Mitsubishi Motorway\nBloomington, IL 61704-6613\nTax questions. If you have a tax question, check the \ninformation \navailable \non \nwww.irs.gov \nor \ncall \n1-800-829-1040. We cannot answer tax questions sent to \neither of the above addresses.\nUseful Items\nYou may want to see:\nPublication\nYour Rights as a Taxpayer\nYour Appeal Rights and How To Prepare a \nProtest If You Don't Agree\nCasualties, Disasters, and Thefts\nThe IRS Collection Process\nGuide to Free Tax Services\nInnocent Spouse Relief\n 1\n 5\n 547\n 594\n 910\n 971\nTaxpayer Advocate Service–Your Voice at the \nIRS\nCollection Appeal Rights\nFast Track Mediation\nTax Relief for Victims of Terrorist Attacks\nLow Income Taxpayer Clinic List\nForm (and Instructions)\nClaim for Refund and Request for Abatement\nRequest for Taxpayer Advocate Service \nAssistance (and Application for Taxpayer \nAssistance Order)\nAmended U.S. Individual Income Tax Return\nPower of Attorney and Declaration of \nRepresentative\nRequest for Copy of Tax Return\nRequest for Transcript of Tax Return\nInjured Spouse Allocation\nRequest for Innocent Spouse Relief\nSee How To Get Tax Help, near the end of this publica-\ntion, for information about getting these publications and \nforms.\nExamination of Returns\nYour return may be examined for a variety of reasons, and \nthe examination may take place in any one of several \nways. After the examination, if any changes to your tax \nare proposed, you can either agree with those changes \nand pay any additional tax you may owe, or you can disa-\ngree with the changes and appeal the decision.\nExamination selection criteria. Your return may be se-\nlected for examination on the basis of computer scoring. A \ncomputer program called the Discriminant Inventory Func-\ntion System (DIF) assigns a numeric score to each individ-\nual and some corporate tax returns after they have been \nprocessed. If your return is selected because of a high \nscore under the DIF system, the potential is high that an \nexamination of your return will result in a change to your \nincome tax liability.\nYour return may also be selected for examination on \nthe basis of information received from third-party docu-\nmentation, such as Forms 1099 and W-2, that does not \nmatch the information reported on your return. Or, your re-\nturn may be selected to address both the questionable \ntreatment of an item and to study the behavior of similar \ntaxpayers (a market segment) in handling a tax issue.\nIn addition, your return may be selected as a result of \ninformation received from other sources on potential non-\ncompliance with the tax laws or inaccurate filing. This in-\nformation can come from a number of sources, including \n 1546\n 1660\n 3605\n 3920\n 4134\n 843\n 911\n 1040X\n 2848\n 4506\n 4506-T\n 8379\n 8857\nPage 2 \nPublication 556 (September 2013)\n",
"newspapers, public records, and individuals. The informa-\ntion is evaluated for reliability and accuracy before it is \nused as the basis of an examination or investigation.\nNotice of IRS contact of third parties. The IRS must \ngive you reasonable notice before contacting other per-\nsons about your tax matters. You must be given reasona-\nble notice in advance that, in examining or collecting your \ntax liability, the IRS may contact third parties such as your \nneighbors, banks, employers, or employees. The IRS \nmust also give you notice of specific contacts by providing \nyou with a record of persons contacted on both a periodic \nbasis and upon your request.\nThis provision does not apply:\nTo any pending criminal investigation,\nWhen providing notice would jeopardize collection of \nany tax liability,\nWhere providing notice may result in reprisal against \nany person, or\nWhen you authorized the contact.\nTaxpayer Advocate Service. The Taxpayer Advocate \nService is an independent organization within the IRS \nwhose goal is to help taxpayers resolve problems with the \nIRS. If you have an ongoing issue with the IRS that has \nnot been resolved through normal processes, or your \nproblems with the IRS are causing financial difficulty, con-\ntact the Taxpayer Advocate Service.\nBefore contacting the Taxpayer Advocate Serv\nice, you should first discuss any problem with a \nsupervisor. Your local Taxpayer Advocate will as\nsist you if you are unable to resolve the problem with the \nsupervisor.\nFor more information, see Publication 1546. See How \nTo Get Tax Help, near the end of this publication, for more \ninformation about contacting the Taxpayer Advocate \nService.\nComments from small business. The Small Business \nand Agricultural Regulatory Enforcement Ombudsman \nand 10 Regional Fairness Boards have been established \nto receive comments from small business about federal \nagency enforcement actions. The Ombudsman will annu-\nally evaluate the enforcement activities of each agency \nand rate their responsiveness to small business. If you \nwish to comment on the enforcement actions of the IRS, \nyou can take any of the following steps.\nFax your comments to 1-202-481-5719.\nWrite to the following address:\nOffice of the National Ombudsman\nU.S. Small Business Administration\n409 3rd Street, SW\nWashington, DC 20416\nCAUTION\n!\nTIP\nCall 1-888-734-3247.\nSend an email to [email protected].\nFile a comment or complaint online at www.sba.gov/\nombudsman.\nIf Your Return Is Examined\nSome examinations are handled entirely by mail. Exami-\nnations not handled by mail can take place in your home, \nyour place of business, an Internal Revenue office, or the \noffice of your authorized representative. If the time, place, \nor method is not convenient for you, the examiner will try \nto work out something more suitable. However, the IRS \nmakes the final determination of when, where, and how \nthe examination will take place.\nThroughout the examination, you can act on your own \nbehalf or have someone represent you or accompany \nyou. If you filed a joint return, either you or your spouse, or \nboth, can meet with the IRS. The person representing you \ncan be any federally authorized practitioner, including an \nattorney, a certified public accountant, an enrolled agent \n(a person enrolled to practice before the IRS), an enrolled \nactuary, or the person who prepared the return and signed \nit as the preparer.\nIf you want someone to represent you in your absence, \nyou must furnish that person with proper written authoriza-\ntion. You can use Form 2848 or any other properly written \nauthorization. If you want to consult with an attorney, a \ncertified public accountant, an enrolled agent, or any other \nperson permitted to represent a taxpayer during an inter-\nview for examining a tax return or collecting tax, you \nshould make arrangements with that person to be availa-\nble for the interview. In most cases, the IRS must suspend \nthe interview and reschedule it. The IRS cannot suspend \nthe interview if you are there because of an administrative \nsummons.\nThird party authorization. If you checked the box in \nthe signature area of your income tax return (Form 1040, \nForm 1040A, or Form 1040EZ) to allow the IRS to discuss \nyour return with another person (a third party designee), \nthis authorization does not replace Form 2848. The box \nyou checked on your return only authorizes the other per-\nson to receive information about the processing of your re-\nturn and the status of your refund during the period your \nreturn is being processed. For more information, see the \ninstructions for your return.\nConfidentiality privilege. Generally, the same confi-\ndentiality protection that you have with an attorney also \napplies to certain communications that you have with fed-\nerally authorized practitioners.\nConfidential communications are those that:\nAdvise you on tax matters within the scope of the \npractitioner's authority to practice before the IRS,\nWould be confidential between an attorney and you, \nand\nRelate to noncriminal tax matters before the IRS, or\nPublication 556 (September 2013)\n Page 3\n",
"Relate to noncriminal tax proceedings brought in fed-\neral court by or against the United States.\nIn the case of communications in connection with the \npromotion of a person's participation in a tax shelter, the \nconfidentiality privilege does not apply to written commu-\nnications between a federally authorized practitioner and \nthat person, any director, officer, employee, agent, or rep-\nresentative of that person, or any other person holding a \ncapital or profits interest in that person.\nA tax shelter is any entity, plan, or arrangement, a sig-\nnificant purpose of which is the avoidance or evasion of \nincome tax.\nRecordings. You can make an audio recording of the ex-\namination interview. Your request to record the interview \nshould be made in writing. You must notify the examiner \n10 days in advance and bring your own recording equip-\nment. The IRS also can record an interview. If the IRS ini-\ntiates the recording, you must be notified 10 days in ad-\nvance and you can get a copy of the recording at your \nexpense.\nTransfers to another area. Generally, your return is ex-\namined in the area where you live. But if your return can \nbe examined more quickly and conveniently in another \narea, such as where your books and records are located, \nyou can ask to have the case transferred to that area.\nRepeat examinations. The IRS tries to avoid repeat ex-\naminations of the same items, but sometimes this hap-\npens. If your tax return was examined for the same items \nin either of the 2 previous years and no change was pro-\nposed to your tax liability, please contact the IRS as soon \nas possible to see if the examination should be discontin-\nued.\nThe Examination\nAn examination usually begins when you are notified that \nyour return has been selected. The IRS will tell you which \nrecords you will need. The examination can proceed more \neasily if you gather your records before any interview.\nAny proposed changes to your return will be explained \nto you or your authorized representative. It is important \nthat you understand the reasons for any proposed \nchanges. You should not hesitate to ask about anything \nthat is unclear to you.\nThe IRS must follow the tax laws set forth by Congress \nin the Internal Revenue Code. The IRS also follows Treas-\nury Regulations, other rules, and procedures that were \nwritten to administer the tax laws and court decisions. \nHowever, the IRS can lose cases that involve taxpayers \nwith the same issue and still apply its interpretation of the \nlaw to your situation.\nMost taxpayers agree to changes proposed by examin-\ners, and the examinations are closed at this level. If you \ndo not agree, you can appeal any proposed change by \nfollowing the procedures provided to you by the IRS. A \nmore complete discussion of appeal rights is found later \nunder Appeal Rights.\nIf You Agree\nIf you agree with the proposed changes, you can sign an \nagreement form and pay any additional tax you may owe. \nYou must pay interest on any additional tax. If you pay \nwhen you sign the agreement, the interest is generally fig-\nured from the due date of your return (excluding any ex-\ntension of time to file) to the date of your payment.\nIf you do not pay the additional tax when you sign the \nagreement, you will receive a bill that includes interest. If \nyou pay the amount due within 10 business days of the \nbilling date, you will not have to pay more interest or pen-\nalties. This period is extended to 21 calendar days if the \namount due is less than $100,000.\nIf you are due a refund, you will receive it sooner if you \nsign the agreement form. You will be paid interest on the \nrefund.\nIf the IRS accepts your tax return as filed, you will re-\nceive a letter in a few weeks stating that the examiner pro-\nposed no changes to your return. You should keep this \nletter with your tax records.\nIf You Do Not Agree\nIf you do not agree with the proposed changes, the exam-\niner will explain your appeal rights. If your examination \ntakes place in an IRS office, you can request an immedi-\nate meeting with the examiner's supervisor to explain your \nposition. If an agreement is reached, your case will be \nclosed.\nIf you cannot reach an agreement with the supervisor at \nthis meeting, or if the examination took place outside of an \nIRS office, the examiner will write up your case explaining \nyour position and the IRS's position. The examiner will for-\nward your case for processing.\nFast track mediation. The IRS offers fast track media-\ntion services to help taxpayers resolve many disputes re-\nsulting from:\nExaminations (audits),\nOffers in compromise,\nTrust fund recovery penalties, and\nOther collection actions.\nMost cases that are not docketed in any court qualify \nfor fast track mediation. Mediation can take place at a \nconference you request with a supervisor, or later. The \nprocess involves an Appeals Officer who has been trained \nin mediation. You may represent yourself at the mediation \nsession, or someone else can act as your representative. \nFor more information, see Publication 3605.\nPage 4 \nPublication 556 (September 2013)\n",
"30-day letter and 90-day letter. Within a few weeks af-\nter your closing conference with the examiner and/or su-\npervisor, you will receive a package with:\nA letter (known as a 30-day letter) notifying you of \nyour right to appeal the proposed changes within 30 \ndays,\nA copy of the examination report explaining the exam-\niner's proposed changes,\nAn agreement or waiver form, and\nA copy of Publication 5.\nYou generally have 30 days from the date of the 30-day \nletter to tell the IRS whether you will accept or appeal the \nproposed changes. The letter will explain what steps you \nshould take, depending on which action you choose. Be \nsure to follow the instructions carefully. Appeal Rights are \nexplained later.\n90-day letter. If you do not respond to the 30-day let-\nter, or if you later do not reach an agreement with an Ap-\npeals Officer, the IRS will send you a 90-day letter, which \nis also known as a notice of deficiency.\nYou will have 90 days (150 days if it is addressed to \nyou outside the United States) from the date of this notice \nto file a petition with the Tax Court. Filing a petition with \nthe Tax Court is discussed later under Appeals to the \nCourts and Tax Court.\nThe notice will show the 90th (or 150th) day by \nwhich you must file your petition with the Tax \nCourt.\nSuspension of interest and penalties. Generally, the \nIRS has 3 years from the date you filed your return (or the \ndate the return was due, if later) to assess any additional \ntax. However, if you file your return timely (including ex-\ntensions), interest and certain penalties will be suspended \nif the IRS does not mail a notice to you, stating your liabil-\nity and the basis for that liability, within a 36-month period \nbeginning on the later of:\nThe date on which you filed your tax return, or\nThe due date (without extensions) of your tax return.\nIf the IRS mails a notice after the 36-month period, interest \nand certain penalties applicable to the suspension period \nwill be suspended.\nThe suspension period begins the day after the close of \nthe 36-month period and ends 21 days after the IRS mails \na notice to you stating your liability and the basis for that \nliability. Also, the suspension period applies separately to \neach notice stating your liability and the basis for that lia-\nbility received by you.\nThe suspension does not apply to a:\nFailuretopay penalty,\nTIP\nCAUTION\n!\nFraudulent tax return,\nPenalty, interest, addition to tax, or additional amount \nwith respect to any tax liability shown on your return or \nwith respect to any gross misstatement,\nPenalty, interest, addition to tax, or additional amount \nwith respect to any reportable transaction that is not \nadequately disclosed or any listed transaction, or\nCriminal penalty.\nSeeking relief from improperly assessed interest. \nYou can seek relief if interest is assessed for periods dur-\ning which interest should have been suspended because \nthe IRS did not mail a notice to you in a timely manner.\nIf you believe that interest was assessed with respect \nto a period during which interest should have been sus-\npended, submit Form 843, writing “Section 6404(g) Notifi-\ncation” at the top of the form, with the IRS Service Center \nwhere you filed your return. The IRS will review the Form \n843 and notify you whether interest will be abated. If the \nIRS does not abate interest, you can pay the disputed in-\nterest assessment and file a claim for refund. If your claim \nis denied or not acted upon within 6 months from the date \nyou filed it, you can file suit for a refund in your United \nStates District Court or in the United States Court of Fed-\neral Claims.\nIf you believe that an IRS officer or employee has made \nan unreasonable error or delay in performing a ministerial \nor managerial act (discussed later under Abatement of In\nterest Due to Error or Delay by the IRS), file Form 843 with \nthe IRS Service Center where you filed the tax return. If \nthe IRS denies your claim, the Tax Court may be able to \nreview that determination. See Tax Court can review fail\nure to abate interest later under Abatement of Interest Due \nto Error or Delay by the IRS.\nIf you later agree. If you agree with the examiner's \nchanges after receiving the examination report or the \n30-day letter, sign and return either the examination report \nor the waiver form. Keep a copy for your records. You can \npay any additional amount you owe without waiting for a \nbill. Include interest on the additional tax at the applicable \nrate. This interest rate is usually for the period from the \ndue date of the return (excluding any extension of time to \nfile) to the date of payment. The examiner can tell you the \ninterest rate(s) or help you figure the amount.\nYou must pay interest on penalties and additions to tax \nfor failing to file returns, for overstating valuations, for un-\nderstating valuations on estate and gift tax returns, and for \nsubstantially understating tax liability. Interest is generally \nfigured from the date (including extensions) the tax return \nis required to be filed to the date you pay the penalty \nand/or additions to tax.\nIf you pay the amount due within 10 business days after \nthe date of notice and demand for immediate payment, \nyou will not have to pay any additional penalties and inter-\nest. This period is extended to 21 calendar days if the \namount due is less than $100,000.\nPublication 556 (September 2013)\n Page 5\n",
"How To Stop Interest From Accruing\nIf you think that you will owe additional tax at the end of \nthe examination, you can stop the further accrual of inter-\nest by sending money to the IRS to cover all or part of the \namount you think you will owe. Interest on part or all of any \namount you owe will stop accruing on the date the IRS re-\nceives your money.\nYou can send an amount either in the form of a deposit \nin the nature of a cash bond or as a payment of tax. Both a \ndeposit and a payment stop any further accrual of interest. \nHowever, making a deposit or payment will stop the ac-\ncrual of interest on only the amount you sent. Because of \ncompounding rules, interest will continue to accrue on ac-\ncrued interest, even though you have paid the underlying \ntax.\nTo stop the accrual of interest on both tax and in\nterest, you must make a deposit or payment for \nboth the tax and interest that has accrued as of \nthe date of deposit or payment.\nPayment or Deposit\nDeposits differ from payments in two ways:\n1. You can have all or part of your deposit returned to \nyou without filing for a refund. However, if you request \nand receive your deposit and the IRS later assesses a \ndeficiency for that period and type of tax, interest will \nbe figured as if the funds were never on deposit. Also, \nyour deposit will not be returned if one of the following \nsituations applies:\na. The IRS assesses a tax liability.\nb. The IRS determines that, by returning the deposit, \nit may not be able to collect a future deficiency.\nc. The IRS determines that the deposit should be ap-\nplied against another tax liability.\n2. Deposits returned to you will include interest based \non the Federal short-term rate determined under sec-\ntion 6621(b).\nThe deposit returned will be treated as a tax payment to \nthe extent of the disputed tax. A disputed tax means the \namount of tax specified at the time of deposit as a reason-\nable estimate of the maximum amount of any tax owed by \nyou, such as the deficiency proposed in the 30-day letter.\nNotice not mailed. If you send money before the IRS \nmails you a notice of deficiency, you can ask the IRS to \ntreat it as a deposit. You must make your request in writ-\ning.\nIf, after being notified of a proposed liability but before \nthe IRS mails you a notice of deficiency, you send an \namount large enough to cover the proposed liability, it will \nbe considered a payment unless you request in writing \nthat it be treated as a deposit. Keep copies of all corre-\nspondence you send to the IRS.\nIf the amount you send is at least as much as the pro-\nposed liability and you do not request that it be treated as \nTIP\na deposit, the IRS will not send you a notice of deficiency. \nIf you do not receive a notice of deficiency, you cannot \ntake your case to the Tax Court. See Tax Court, later un-\nder Appeal Rights.\nNotice mailed. If, after the IRS mails the notice of defi-\nciency, you send money without written instructions, it will \nbe treated as a payment. You will still be able to petition \nthe Tax Court.\nIf you send money after receiving a notice of deficiency \nand you have specified in writing that it is a “deposit in the \nnature of a cash bond,” the IRS will treat it as a deposit if \nyou send it before either:\nThe close of the 90-day or 150-day period for filing a \npetition with the Tax Court to appeal the deficiency, or\nThe date the Tax Court decision is final, if you have \nfiled a petition.\nUsing a Deposit To Pay the Tax\nIf you agree with the examiner's proposed changes after \nthe examination, your deposit will be applied against any \namount you may owe. The IRS will not mail you a notice of \ndeficiency and you will not have the right to take your case \nto the Tax Court.\nIf you do not agree to the full amount of the deficiency \nafter the examination, the IRS will mail you a notice of de-\nficiency. Your deposit will be applied against the proposed \ndeficiency unless you write to the IRS before the end of \nthe 90-day or 150-day period stating that you still want the \nmoney to be treated as a deposit. You will still have the \nright to take your case to the Tax Court.\nInstallment Agreement Request\nYou can request a monthly installment plan if you cannot \npay the full amount you owe. To be valid, your request \nmust be approved by the IRS. However, if you owe \n$10,000 or less in tax and you meet certain other criteria, \nthe IRS must accept your request.\nBefore you request an installment agreement, \nyou should consider other less costly alterna\ntives, such as a bank loan. You will continue to be \ncharged interest and penalties on the amount you owe un\ntil it is paid in full.\nUnless your income is below a certain level, the fee for \nan approved installment agreement has increased to \n$105 ($52 if you make your payments by electronic funds \nwithdrawal). If your income is below a certain level, you \nmay qualify to pay a reduced fee of $43.\nFor more information about installment agreements, \nsee Form 9465, Installment Agreement Request.\nInterest Netting\nIf you owe interest to the IRS on an underpayment for the \nsame period the IRS owes you interest on an \nTIP\nPage 6 \nPublication 556 (September 2013)\n",
"overpayment, the IRS will figure interest on the underpay-\nment and overpayment at the same interest rate (up to the \namount of the overpayment). As a result, the net rate is \nzero for that period.\nAbatement of Interest Due to\nError or Delay by the IRS\nThe IRS may abate (reduce) the amount of interest you \nowe if the interest is due to an unreasonable error or delay \nby an IRS officer or employee in performing a ministerial \nor managerial act (discussed later). Only the amount of in-\nterest on income, estate, gift, generation-skipping, and \ncertain excise taxes can be reduced.\nThe amount of interest will not be reduced if you or any-\none related to you contributed significantly to the error or \ndelay. Also, the interest will be reduced only if the error or \ndelay happened after the IRS contacted you in writing \nabout the deficiency or payment on which the interest is \nbased. An audit notification letter is such a contact.\nThe IRS cannot reduce the amount of interest due to a \ngeneral administrative decision, such as a decision on \nhow to organize the processing of tax returns.\nMinisterial act. This is a procedural or mechanical act, \nnot involving the exercise of judgment or discretion, during \nthe processing of a case after all prerequisites (for exam-\nple, conferences and review by supervisors) have taken \nplace. A decision concerning the proper application of \nfederal tax law (or other federal or state law) is not a min-\nisterial act.\nExample 1. You move from one state to another be-\nfore the IRS selects your tax return for examination. A let-\nter stating that your return has been selected is sent to \nyour old address and then forwarded to your new ad-\ndress. When you get the letter, you respond with a re-\nquest that the examination be transferred to the area of-\nfice closest to your new address. The examination group \nmanager approves your request. After your request has \nbeen approved, the transfer is a ministerial act. The IRS \ncan reduce the interest because of any unreasonable de-\nlay in transferring the case.\nExample 2. An examination of your return reveals tax \ndue for which a notice of deficiency (90-day letter) will be \nissued. After you and the IRS discuss the issues, the no-\ntice is prepared and reviewed. After the review process, \nissuing the notice of deficiency is a ministerial act. If there \nis an unreasonable delay in sending the notice of defi-\nciency to you, the IRS can reduce the interest resulting \nfrom the delay.\nManagerial act. This is an administrative act during the \nprocessing of a case that involves the loss of records or \nthe exercise of judgment or discretion concerning the \nmanagement of personnel. A decision concerning the \nproper application of federal tax law (or other federal or \nstate law) is not a managerial act.\nExample. A revenue agent is examining your tax re-\nturn. During the middle of the examination, the agent is \nsent to an extended training course. The agent's supervi-\nsor decides not to reassign your case, so the work is un-\nreasonably delayed until the agent returns. Interest from \nthe unreasonable delay can be abated since both the de-\ncision to send the agent to the training class and not to re-\nassign the case are managerial acts.\nHow to request abatement of interest. You request an \nabatement (reduction) of interest on Form 843. You \nshould file the claim with the IRS Service Center where \nyou filed the tax return that was affected by the error or \ndelay.\nIf you have already paid the interest and you would like \na credit or refund of interest paid, you must file Form 843 \nwithin 3 years from the date you filed your original return \nor 2 years from the date you paid the interest, whichever \nis later. If you have not paid any of the interest, these time \nlimitations for filing Form 843 do not apply.\nGenerally, you should file a separate Form 843 for each \ntax period and each type of tax. However, complete only \none Form 843 if the interest is from an IRS error or delay \nthat affected your tax for more than one tax period or for \nmore than one type of tax (for example, where 2 or more \ntax years were being examined).\nIf your request for abatement of interest is denied, you \ncan appeal the decision to the IRS Appeals Office.\nTax Court can review failure to abate interest. The \nTax Court can review the IRS's refusal to abate (reduce) \ninterest if all of the following requirements are met:\nYou filed a request for abatement of interest (Form \n843) with the IRS after July 30,1996.\nThe IRS has mailed you a notice of final determination \nor a notice of disallowance.\nYou file a petition with the Tax Court within 180 days \nof the mailing of the notice of final determination or the \nnotice of disallowance.\nThe following requirements must also be met:\nFor individual and estate taxpayers — your net worth \nmust not exceed $2 million as of the filing date of your \npetition for review. For this purpose, individuals filing a \njoint return shall be treated as separate individuals.\nFor charities and certain cooperatives — you must not \nhave more than 500 employees as of the filing date of \nyour petition for review.\nFor all other taxpayers — your net worth must not ex-\nceed $7 million, and you must not have more than 500 \nemployees as of the filing date of your petition for re-\nview.\nPublication 556 (September 2013)\n Page 7\n",
"Abatement of Interest for\nIndividuals Affected by\nPresidentially Declared Disasters\nor Military or Terrorist Actions\nIf you are (or were) affected by a Presidentially declared \ndisaster occurring after 1996 or a terrorist or military ac-\ntion occurring after September 10, 2001, the IRS may \nabate (reduce) the amount of interest you owe on certain \ntaxes. The IRS may abate interest for the period of any \nadditional time to file or pay that the IRS provides on ac-\ncount of the disaster or the terrorist or military action. The \nIRS will issue a notice or news release indicating who are \naffected taxpayers and stating the period of relief.\nIf you are eligible for relief from interest, but were \ncharged interest for the period of relief, the IRS may retro-\nactively abate your interest. To the extent possible, the \nIRS can take the following actions:\nMake appropriate adjustments to your account.\nNotify you when the adjustments are made.\nRefund any interest paid by you where appropriate.\nFor more information on disaster area losses, see Dis\naster Area Losses in Publication 547. For more informa-\ntion on other tax relief for victims of terrorist attacks, see \nPublication 3920.\nOffer in Compromise\nIn certain circumstances, the IRS will allow you to pay less \nthan the full amount you owe. If you think you may qualify, \nyou should submit your offer by filing Form 656, Offer in \nCompromise. The IRS may accept your offer for any of the \nfollowing reasons:\nThere is doubt about the amount you owe (or whether \nyou owe it).\nThere is doubt as to whether you can pay the amount \nyou owe based on your financial situation.\nAn economic hardship would result if you had to pay \nthe full amount owed.\nYour case presents compelling reasons that the IRS \ndetermines are a sufficient basis for compromise.\nIf your offer is rejected, you have 30 days to ask the Ap-\npeals Office of the IRS to reconsider your offer.\nThe IRS offers fast track mediation services to \nhelp taxpayers resolve many issues including a \ndispute regarding an offer in compromise. For \nmore information, see Publication 3605.\nGenerally, if you submit an offer in compromise, the \nIRS will delay certain collection activities. The IRS usually \nwill not levy (take) your property to settle your tax bill dur-\ning the following periods:\nWhile the IRS is evaluating your offer in compromise.\nTIP\nThe 30 days immediately after the offer is rejected.\nWhile your timely-filed appeal is being considered by \nAppeals.\nAlso, if the IRS rejects your original offer and you submit a \nrevised offer within 30 days of the rejection, the IRS gen-\nerally will not levy your property while it considers your re-\nvised offer.\nFor more information about submitting an offer in com-\npromise, see Form 656.\nAppeal Rights\nBecause people sometimes disagree on tax matters, the \nIRS has an appeals system. Most differences can be set-\ntled within this system without expensive and time-con-\nsuming court trials.\nHowever, your reasons for disagreeing must come \nwithin the scope of the tax laws. For example, you cannot \nappeal your case based only on moral, religious, political, \nconstitutional, conscientious, or similar grounds.\nIn most instances, you may be eligible to take your \ncase to court if you do not reach an agreement at your ap-\npeals conference, or if you do not want to appeal your \ncase to the IRS Office of Appeals. See Appeals to the \nCourts, later, for more information.\nAppeal Within the IRS\nYou can appeal an IRS tax decision to a local Appeals Of-\nfice, which is separate from and independent of the IRS \noffice taking the action you disagree with. The Appeals \nOffice is the only level of appeal within the IRS. Conferen-\nces with Appeals Office personnel are held in an informal \nmanner by correspondence, by telephone, or at a per-\nsonal conference.\nIf you want an appeals conference, follow the instruc-\ntions in the letter you received. Your request will be sent to \nthe Appeals Office to arrange a conference at a conven-\nient time and place. You or your representative should be \nprepared to discuss all disputed issues at the conference. \nMost differences are settled at this level.\nIf agreement is not reached at your appeals confer-\nence, you may be eligible to take your case to court. See \nAppeals to the Courts, later.\nProtests and Small Case Requests\nWhen you request an Appeals conference, you may also \nneed to file either a formal written protest or a small case \nrequest with the office named in the letter you received. \nAlso, see the special appeal request procedures in Publi-\ncation 1660.\nPage 8 \nPublication 556 (September 2013)\n",
"Written protest. You need to file a written protest in the \nfollowing cases:\nAll employee plan and exempt organization cases \nwithout regard to the dollar amount at issue.\nAll partnership and S corporation cases without regard \nto the dollar amount at issue.\nAll other cases, unless you qualify for the small case \nrequest procedure, or other special appeal proce-\ndures such as requesting Appeals consideration of \nliens, levies, seizures, or installment agreements.\nIf you must submit a written protest, see the instructions \nin Publication 5 about the information you need to provide. \nThe IRS urges you to provide as much information as you \ncan, as it will help speed up your appeal. That will save \nyou both time and money.\nBe sure to send the protest within the time limit \nspecified in the letter you received.\nSmall case request. If the total amount for any tax pe-\nriod is not more than $25,000, you may make a small case \nrequest instead of filing a formal written protest. In figuring \nthe total amount, include a proposed increase or de-\ncrease in tax (including penalties), or claimed refund. If \nyou are making an offer in compromise, include total un-\npaid tax, penalty, and interest due. For a small case re-\nquest, follow the instructions in our letter to you by send-\ning a letter:\nRequesting Appeals consideration,\nIndicating the changes you do not agree with, and\nIndicating the reasons why you do not agree.\nRepresentation\nYou can represent yourself at your appeals conference, or \nyou can be represented by any federally authorized practi-\ntioner, including an attorney, a certified public accountant, \nan enrolled actuary, or an enrolled agent.\nIf your representative attends a conference without you, \nhe or she can receive or inspect confidential information \nonly if you have filed a power of attorney or a tax informa-\ntion authorization. You can use a Form 2848 or any other \nproperly written power of attorney or authorization.\nYou can also bring witnesses to support your position.\nConfidentiality privilege. Generally, the same confiden-\ntiality protection that you have with an attorney also ap-\nplies to certain communications that you have with feder-\nally authorized practitioners. See Confidentiality privilege \nunder If Your Return Is Examined, earlier.\nAppeals to the Courts\nIf you and the IRS still disagree after the appeals confer-\nence, you may be entitled to take your case to the United \nStates Tax Court, the United States Court of Federal \nCAUTION\n!\nClaims, or a United States District Court. These courts are \nindependent of the IRS.\nIf you elect to bypass the IRS's appeals system, you \nmay be able to take your case to one of the courts listed \nabove. However, a case petitioned to the United States \nTax Court will normally be considered for settlement by an \nAppeals Officer before the Tax Court hears the case.\nIf you unreasonably fail to pursue the IRS's ap\npeals system, or if your case is intended primarily \nto cause a delay, or your position is frivolous or \ngroundless, the Tax Court may impose a penalty of up to \n$25,000. See Appeal Within the IRS, earlier.\nProhibition on requests to taxpayers to give up \nrights to bring civil action. The Government cannot ask \nyou to waive your right to sue the United States or a Gov-\nernment officer or employee for any action taken in con-\nnection with the tax laws. However, your right to sue can \nbe waived if:\nYou knowingly and voluntarily waive that right,\nThe request to waive that right is made in writing to \nyour attorney or other federally authorized practitioner, \nor\nThe request is made in person and your attorney or \nother representative is present.\nBurden of proof. For court proceedings resulting from \nexaminations started after July 22, 1998, the IRS gener-\nally has the burden of proof for any factual issue if you \nhave met the following requirements:\nYou introduced credible evidence relating to the issue.\nYou complied with all substantiation requirements of \nthe Internal Revenue Code.\nYou maintained all records required by the Internal \nRevenue Code.\nYou cooperated with all reasonable requests by the \nIRS for information regarding the preparation and rela-\nted tax treatment of any item reported on your tax re-\nturn.\nYou had a net worth of $7 million or less and not more \nthan 500 employees at the time your tax liability is \ncontested in any court proceeding if your tax return is \nfor a corporation, partnership, or trust.\nThe burden of proof does not change on an issue \nwhen another provision of the tax laws requires a \nspecific burden of proof with respect to that issue.\nUse of statistical information. In the case of an indi-\nvidual, the IRS has the burden of proof in court proceed-\nings based on any IRS reconstruction of income solely \nthrough the use of statistical information on unrelated tax-\npayers.\nCAUTION\n!\nCAUTION\n!\nPublication 556 (September 2013)\n Page 9\n",
"Penalties. The IRS has the burden of initially produc-\ning evidence in court proceedings with respect to the lia-\nbility of any individual taxpayer for any penalty, addition to \ntax, or additional amount imposed by the tax laws.\nRecovering litigation or administrative costs. These \nare the expenses that you pay to defend your position to \nthe IRS or the courts. You may be able to recover reason-\nable litigation or administrative costs if all of the following \nconditions apply:\nYou are the prevailing party.\nYou exhaust all administrative remedies within the \nIRS.\nYour net worth is below a certain limit (see Net worth \nrequirements, later).\nYou do not unreasonably delay the proceeding.\nYou apply for administrative costs within 90 days of \nthe date on which the final decision of the IRS Office \nof Appeals as to the determination of the tax, interest, \nor penalty was mailed to you.\nYou apply for litigation costs within the time frames \nprovided by Tax Court Rule 231, found at \nwww.ustaxcourt.gov.\nPrevailing party, reasonable litigation costs, and rea-\nsonable administrative costs are explained later.\nNote. If the IRS denies your award of administrative \ncosts, and you want to appeal, you must petition the Tax \nCourt within 90 days of the date on which the IRS mails \nthe denial notice.\nPrevailing party. Generally, you are the prevailing \nparty if:\nYou substantially prevail with respect to the amount in \ncontroversy or on the most significant tax issue or set \nof issues in question, and\nYou meet the net worth requirements, discussed later.\nYou will not be treated as the prevailing party if the Uni-\nted States establishes that its position was substantially \njustified. The position of the United States is presumed \nnot to be substantially justified if the IRS:\nDid not follow its applicable published guidance (such \nas regulations, revenue rulings, notices, announce-\nments, private letter rulings, technical advice memo-\nranda, and determination letters issued to the tax-\npayer) in the proceeding (This presumption can be \novercome by evidence.), or\nHas lost in courts of appeal for other circuits on sub-\nstantially similar issues.\nThe court will generally decide who is the prevailing \nparty.\nReasonable litigation costs. These include the fol-\nlowing costs:\nReasonable court costs.\nThe reasonable costs of studies, analyses, engineer-\ning reports, tests, or projects found by the court to be \nnecessary for the preparation of your case.\nThe reasonable costs of expert witnesses.\nAttorney fees that generally may not exceed $125 \nmaximum hourly rate as set by statute and indexed for \ninflation. See Attorney fees, later.\nReasonable administrative costs. These include the \nfollowing costs:\nAny administrative fees or similar charges imposed by \nthe IRS.\nThe reasonable costs of studies, analyses, engineer-\ning reports, tests, or projects.\nThe reasonable costs of expert witnesses.\nAttorney fees that generally may not exceed $125 per \nhour. See Attorney fees, later.\nTiming of costs. Administrative costs can be awar-\nded for costs incurred after the earliest of:\nThe date the first letter of proposed deficiency is sent \nthat allows you an opportunity to request administra-\ntive review in the IRS Office of Appeals,\nThe date you receive notice of the IRS Office of Ap-\npeals' decision, or\nThe date of the notice of deficiency.\nNet worth requirements. An individual taxpayer may \nbe able to recover litigation or administrative costs if the \nfollowing requirements are met:\nFor individuals — your net worth does not exceed $2 \nmillion as of the filing date of your petition for review. \nFor this purpose, individuals filing a joint return are \ntreated as separate individuals.\nFor estates — your net worth does not exceed $2 mil-\nlion as of the date of the decedent's death.\nFor charities and certain cooperatives — you do not \nhave more than 500 employees as of the filing date of \nyour petition for review.\nFor all other taxpayers — as of the filing date of your \npetition for review, your net worth does not exceed $7 \nmillion, and you must not have more than 500 employ-\nees.\nQualified offer rule. You can also receive reasonable \ncosts and fees and be treated as a prevailing party in a \ncivil action or proceeding if:\nYou make a qualified offer to the IRS to settle your \ncase,\nThe IRS does not accept that offer, and\nThe tax liability (not including interest, unless interest \nis at issue) later determined by the court is equal to or \nless than the amount of your qualified offer.\nPage 10 \nPublication 556 (September 2013)\n",
"You must also meet the remaining requirements, including \nthe exhaustion of administrative remedies and the net \nworth requirement, discussed earlier, to get the benefit of \nthe qualified offer rule.\nQualified offer. This is a written offer made by you \nduring the qualified offer period. It must specify both the \noffered amount of your liability (not including interest) and \nthat it is a qualified offer.\nTo be a qualified offer, it must remain open from the \ndate it is made until the earliest of:\nThe date it is rejected,\nThe date the trial begins, or\n90 days from the date it is made.\nQualified offer period. This period begins on the day \nthe IRS mails you the first letter of proposed deficiency \nthat allows you to request review by the IRS Office of Ap-\npeals. It ends 30 days before your case is first set for trial.\nAttorney fees. Attorney fees generally may not ex-\nceed $125 maximum hourly rate as set by statute and in-\ndexed for inflation. However, this amount can be higher in \ncertain limited circumstances depending on the level of \ndifficulty of the issues in the case and the local availability \nof tax expertise. See IRS.gov for more information.\nAttorney fees include the fees paid by a taxpayer \nfor the services of anyone who is authorized to \npractice before the Tax Court or before the IRS. \nIn addition, attorney fees can be awarded in civil actions \nfor unauthorized inspection or disclosure of a taxpayer's \nreturn or return information.\nFees can be awarded in excess of the actual amount \ncharged if:\nYou are represented for no fee, or for a nominal fee, \nas a pro bono service, and\nThe award is paid to your representative or to your \nrepresentative's employer.\nJurisdiction for determination of employment status.\nThe Tax Court can review IRS employment status deter-\nminations (for example, whether individuals hired by you \nare in fact your employees or independent contractors) \nand the amount of employment tax under such determina-\ntions. Tax Court review can take place only if, in connec-\ntion with an audit of any person, there is a controversy in-\nvolving a determination by the IRS that either:\nOne or more individuals performing services for that \nperson are employees of that person, or\nThat person is not entitled to relief under Section \n530(a) of the Revenue Act of 1978(discussed later).\nThe following rules also apply to a Tax Court review of \nemployment status:\nA Tax Court petition to review these determinations \ncan be filed only by the person for whom the services \nare performed,\nTIP\nIf you receive a Notice of Determination by certified or \nregistered mail, you must file a petition for Tax Court \nreview within 90 days of the date of mailing that notice \n(150 days if the notice is addressed to you outside the \nUnited States),\nIf during the Tax Court proceeding, you begin to treat \nas an employee an individual whose employment sta-\ntus is at issue, the Tax Court will not consider that \nchange in its decision,\nAssessment and collection of tax is suspended while \nthe Tax Court review is taking place,\nPayment of the asserted employment tax deficiency is \nnot required to petition the U.S. Tax Court for a deter-\nmination of employment status.\nThere can be a de novo review by the Tax Court (a re-\nview which does not consider IRS administrative find-\nings), and\nAt your request and with the Tax Court's agreement, \nsmall tax case procedures (discussed later) are avail-\nable to simplify the case resolution process when the \namount at issue (including additions to tax and penal-\nties) is $50,000 or less for each tax period involved.\nFor further information, see Publication 3953, Ques-\ntions and Answers About Tax Court Proceedings for De-\ntermination of Employment Status Under IRC Section \n7436.\nSection 530(a) of the Revenue Act of 1978. This \nsection relieves an employer of certain employment tax \nresponsibilities for individuals not treated as employees. It \nalso provides relief to taxpayers under audit or involved in \nadministrative or judicial proceedings.\nTax Court review of request for relief from joint and \nseveral liability on a joint return. As discussed later, at \nRelief from joint and several liability on a joint return under \nClaims for Refund, you can request relief from liability for \ntax you owe, plus related penalties and interest, that you \nbelieve should be paid by your spouse (or former spouse). \nYou also can petition (ask) the Tax Court to review your \nrequest for innocent spouse relief or separation of liability \nif either:\nThe IRS sends you a determination notice denying, in \nwhole or in part, your request, or\nYou do not receive a determination notice from the \nIRS within 6 months from the date you file Form 8857.\nIf you receive a determination notice, you must petition \nthe Tax Court to review your request during the 90-day \nperiod that begins on the date the IRS mails the notice. \nSee Publication 971 for more information.\nNote. Your spouse or former spouse may file a written \nprotest and request an Appeals conference to protest \nyour claim of innocent spouse relief or separation of liabil-\nity. See Rev. Proc. 2003-19, which is on page 371 of the \nInternal Revenue Bulletin 2003-5 at\nwww.irs.gov/pub/irsirbs/irb0305.pdf.\nPublication 556 (September 2013)\n Page 11\n",
"Tax Court\nYou can take your case to the United States Tax Court if \nyou disagree with the IRS over:\nIncome tax,\nEstate tax,\nGift tax,\nEmployment tax involving IRS employment status de-\nterminations, or\nCertain excise taxes of private foundations, public \ncharities, qualified pension and other retirement plans, \nor real estate investment trusts.\nFor information on Tax Court review of a determination \nof employment status, see Jurisdiction for determination \nof employment status, earlier.\nFor information on Tax Court review of an IRS refusal \nto abate interest, see Tax Court can review failure to \nabate interest, earlier under Examination of Returns.\nFor information on Tax Court review of Appeals deter-\nminations with respect to lien notices and proposed lev-\nies, see Publication 1660.\nYou cannot take your case to the Tax Court before the \nIRS sends you a notice of deficiency. You can only appeal \nyour case if you file a petition within 90 days from the date \nthe notice is mailed to you (150 days if it is addressed to \nyou outside the United States).\nThe notice will show the 90th (or 150th) day by \nwhich you must file your petition with the Tax \nCourt.\nWithdrawal of notice of deficiency. If you consent, \nthe IRS can withdraw a notice of deficiency. A notice of \ndeficiency may be rescinded if the notice was issued as a \nresult of an administrative error; the taxpayer submits in-\nformation establishing the actual tax due is less than the \namount shown in the notice; the taxpayer specifically re-\nquests a conference with the appropriate Appeals office \nfor the purpose of entering into settlement negotiations. \nHowever, the notice may be rescinded only if the appro-\npriate Appeals office first decides that the case is suscep-\ntible to agreement. See Revenue Procedure 98-54 for a \nmore detailed explanation of the requirements. Once with-\ndrawn, the limits on credits, refunds, and assessments \nconcerning the notice are void, and you and the IRS have \nthe rights and obligations that you had before the notice \nwas issued. The suspension of any time limitation while \nthe notice of deficiency was issued will not change when \nthe notice is withdrawn.\nAfter the notice is withdrawn, you cannot file a \npetition with the Tax Court based on the notice. \nAlso, the IRS can later issue a notice of defi\nciency in a greater or lesser amount than the amount in \nthe withdrawn deficiency.\nTIP\nCAUTION\n!\nGenerally, the Tax Court hears cases before any tax \nhas been assessed and paid; however, you can pay the \ntax after the notice of deficiency has been issued and still \npetition the Tax Court for review. If you do not file your pe-\ntition on time, the proposed tax will be assessed, a bill will \nbe sent, and you will not be able to take your case to the \nTax Court. Under the law, you must pay the tax within 21 \ndays (10 business days if the amount is $100,000 or \nmore). Collection can proceed even if you think that the \namount is excessive. Publication 594 explains IRS collec-\ntion procedures.\nIf you filed your petition on time, the court will schedule \nyour case for trial at a location convenient to you. You can \nrepresent yourself before the Tax Court or you can be rep-\nresented by anyone admitted to practice before that court.\nSmall tax case procedure. If the amount in your case is \n$50,000 or less for any 1 tax year or period, you can re-\nquest that your case be handled under the small tax case \nprocedure. If the Tax Court approves, you can present \nyour case to the Tax Court for a decision that is final and \nthat you cannot appeal. You can get more information re-\ngarding the small tax case procedure and other Tax Court \nmatters from the United States Tax Court, 400 Second \nStreet, N.W., Washington, DC 20217. More information \ncan \nbe \nfound \non \nthe \nTax \nCourt's \nwebsite \nat \nwww.ustaxcourt.gov.\nMotion to request redetermination of interest. In cer-\ntain cases, you can file a motion asking the Tax Court to \nredetermine the amount of interest on either an underpay-\nment or an overpayment. You can do this only in a situa-\ntion that meets all of the following requirements:\nThe IRS has assessed a deficiency that was deter-\nmined by the Tax Court.\nThe assessment included interest.\nYou have paid the entire amount of the deficiency plus \nthe interest claimed by the IRS.\nThe Tax Court has found that you made an overpay-\nment.\nYou must file the motion within one year after the decision \nof the Tax Court becomes final.\nDistrict Court and Court of Federal Claims\nGenerally, the District Courts and the Court of Federal \nClaims hear tax cases only after you have paid the entire \ntax and penalties, and filed a claim for a credit or refund.\nThe taxpayer may litigate certain types of employment \ntax cases in either the United States District Court or the \nUnited States Court of Federal Claims. Before taxpayers \ncan initiate suit in either of these courts with respect to \ncertain employment taxes, they will have to pay, at a mini-\nmum, the employment tax assessment attributable to one \nemployee for any one quarter and file a claim for refund of \nthe tax. Once the claim for refund is denied or 6 months \nelapse without any action by the IRS, the taxpayer may in-\nitiate suit.\nPage 12 \nPublication 556 (September 2013)\n",
"As explained later under Claims for Refund, you can \nfile a claim with the IRS for a credit or refund if you think \nthat the tax you paid is incorrect or excessive. If your claim \nis totally or partially disallowed by the IRS, you should re-\nceive a notice of claim disallowance. If the IRS does not \nact on your claim within 6 months from the date you filed \nit, you can then file suit for a refund.\nYou generally must file suit for a credit or refund no \nlater than 2 years after the IRS informs you that your claim \nhas been rejected. However, you can file suit if it has been \n6 months since you filed your claim and the IRS has not \nyet delivered a decision.\nYou can file suit for a credit or refund in your United \nStates District Court or in the United States Court of Fed-\neral Claims. However, you cannot appeal to the United \nStates Court of Federal Claims if your claim is for credit or \nrefund of a penalty that relates to promoting an abusive \ntax shelter or to aiding and abetting the understatement of \ntax liability on someone else's return.\nFor information about procedures for filing suit in either \ncourt, contact the Clerk of your District Court or of the Uni-\nted States Court of Federal Claims.\nRefund or Credit of Overpayments \nBefore Final Determination\nAny court with proper jurisdiction, including the Tax Court, \ncan order the IRS to refund any part of a tax deficiency \nthat the IRS collects from you during a period when the \nIRS is not permitted to assess that deficiency, or to levy or \nengage in any court proceeding to collect that deficiency. \nIn addition, the court can order a refund of any part of an \noverpayment determined by the Tax Court that is not at is-\nsue on appeal to a higher court. The court can order these \nrefunds before its decision on the case is final. Taxpayers \nshould thoroughly review IRS settlement offers before \nsigning a Tax Court Decision document to ensure that all \nadjustments are correct, including the inclusion of any tax \ncredits that the taxpayer is allowed to claim.\nNote. The court may no longer order a refund of an \noverpayment after the case is final.\nGenerally, the IRS is not permitted to take action on a \ntax deficiency during:\nThe 90-day (or 150-day if outside the United States) \nperiod that you have to petition a notice of deficiency \nto the Tax Court, or\nThe period that the case is under appeal if a bond is \nprovided.\nClaims for Refund\nIf you believe you have overpaid your tax, you have a limi-\nted amount of time in which to file a claim for a credit or \nrefund. You can claim a credit or refund by filing Form \n1040X. See Time for Filing a Claim for Refund, later.\nFile your claim by mailing it to the IRS Service Center \nwhere you filed your original return. File a separate form \nfor each year or period involved. Include an explanation of \neach item of income, deduction, or credit on which you \nare basing your claim.\nCorporations should file Form 1120X, Amended U.S. \nCorporation Income Tax Return, or other form appropriate \nto the type of credit or refund claimed.\nSee Publication 3920 for information on filing \nclaims for tax forgiveness for individuals affected \nby terrorist attacks.\nRequesting a copy of your tax return. You can obtain \na copy of the actual return and all attachments you filed \nwith the IRS for an earlier year. This includes a copy of the \nForm W-2 or Form 1099 filed with your return. Use Form \n4506 to make your request. You will be charged a fee, \nwhich you must pay when you submit Form 4506.\nRequesting a copy of your tax account information. \nUse Form 4506-T, Request for Transcript of Tax Return, \nto request free copies of your tax return transcript, tax ac-\ncount transcript, record of account, verification of nonfil-\ning, or Form W-2, Form 1099 series, Form 1098 series, or \nForm 5498 series transcript. The tax return transcript con-\ntains most of the line items of a tax return. A tax account \ntranscript contains information on the financial status of \nthe account, such as payments, penalty assessments, \nand adjustments. A record of account is a combination of \nline item information and later adjustments to the account. \nForm W-2, Form 1099 series, Form 1098 series, or Form \n5498 series transcript contains data from these informa-\ntion returns.\nPenalty for erroneous claim for refund. If you claim \nan excessive amount of tax refund or credit relating to in-\ncome tax (other than a claim relating to the earned income \ncredit), you may be liable for a penalty of 20% of the \namount that is determined to be excessive. An excessive \namount is the amount of the claim for refund or credit that \nis more than the amount of claim allowable for the tax \nyear. The penalty may be waived if you can show that you \nhad a reasonable basis for making the claim.\nTime for Filing a Claim for Refund\nGenerally, you must file a claim for a credit or refund \nwithin 3 years from the date you filed your original return \nor 2 years from the date you paid the tax, whichever is \nlater. If you do not file a claim within this period, you may \nno longer be entitled to a credit or a refund.\nIf the due date to file a return or a claim for a credit or \nrefund is a Saturday, Sunday, or legal holiday, it is filed on \ntime if it is filed on the next business day. Returns you filed \nbefore the due date are considered filed on the due date. \nThis is true even when the due date is a Saturday, Sun-\nday, or legal holiday.\nDisaster area claims for refund. If you live in a Presi-\ndentially declared disaster area or are affected by \nTIP\nPublication 556 (September 2013)\n Page 13\n",
"terroristic or military action, the deadline to file a claim for \na refund may be postponed. This section discusses the \nspecial rules that apply to Presidentially declared disaster \narea refunds.\nA Presidentially declared disaster is a disaster that oc-\ncurred in an area declared by the President to be eligible \nfor federal assistance under the Disaster Relief and Emer-\ngency Assistance Act.\nPostponed refund deadlines. The IRS may post-\npone for up to 1 year the deadlines for filing a claim for re-\nfund. The postponement can be used by taxpayers who \nare affected by a Presidentially declared disaster. The IRS \nmay also postpone deadlines for filing income and em-\nployment tax returns, paying income and employment \ntaxes, and making contributions to a traditional IRA or \nRoth IRA. For more information, see Publication 547.\nIf any deadline is postponed, the IRS will publicize the \npostponement in your area and publish a news release, \nrevenue ruling, revenue procedure, notice, announce-\nment, or other guidance in the Internal Revenue Bulletin.\nA list of the areas eligible for assistance under the \nDisaster Relief and Emergency Assistance Act is \navailable at the Federal Emergency Management \nAgency (FEMA) website at www.fema.gov and at the IRS \nwebsite at www.irs.gov.\nNonfilers can get refund of overpayments paid within \n3-year period. The Tax Court can consider taxes paid \nduring the 3-year period preceding the date of a notice of \ndeficiency for determining any refund due to a nonfiler. \nThis means that if you do not file your return, and you re-\nceive a notice of deficiency in the third year after the due \ndate (with extensions) of your return and file suit with the \nTax Court to contest the notice of deficiency, you may be \nable to receive a refund of excessive amounts paid within \nthe 3-year period preceding the date of the notice of defi-\nciency.\nThe IRS may postpone for up to 1 year certain tax \ndeadlines, including the time for filing claims for \nrefund, for taxpayers who are affected by a terro\nrist attack occurring after September 10, 2001. For more \ninformation, see Publication 3920.\nClaim for refund by estates electing the installment \nmethod of payment. In certain cases where an estate \nhas elected to make tax payments through the installment \nmethod, the executor can file a suit for refund with a U.S. \nDistrict Court or the U.S. Court of Federal Claims before \nall the installment payments have been made. However, \nall the following must be true before a suit can be filed:\nThe estate consists largely of an interest in a \nclosely-held business.\nAll installment payments due on or before the date the \nsuit is filed have been made.\nNo accelerated installment payments have been \nmade.\nNo Tax Court case is pending with respect to any es-\ntate tax liability.\nTIP\nTIP\nIf a notice of deficiency was issued to the estate re-\ngarding its liability for estate tax, the time for petition-\ning the Tax Court has passed.\nNo proceeding is pending for a declaratory judgment \nby the Tax Court on whether the estate is eligible to \npay tax in installments.\nThe executor has not included any previously litigated \nissues in the current suit for refund.\nThe executor does not discontinue making installment \npayments timely, while the court considers the suit for \nrefund.\nIf in its final decision on the suit for refund the \ncourt redetermines the estate's tax liability, the \nIRS must refund any part of the estate tax amount \nthat is disallowed. This includes any part of the disallowed \namount previously collected by the IRS.\nProtective claim for refund. If your right to a refund is \ncontingent on future events and may not be determinable \nuntil after the time period for filing a claim for refund ex-\npires, you can file a protective claim for refund. A protec-\ntive claim can be either a formal claim or an amended re-\nturn for credit or refund. Protective claims are often based \non current litigation or expected changes in the tax law, \nother legislation, or regulations. A protective claim pre-\nserves your right to claim a refund when the contingency \nis resolved. A protective claim does not have to state a \nparticular dollar amount or demand an immediate refund. \nHowever, to be valid, a protective claim must:\nBe in writing and be signed,\nInclude your name, address, social security number or \nindividual taxpayer identification number, and other \ncontact information,\nIdentify and describe the contingencies affecting the \nclaim,\nClearly alert the IRS to the essential nature of the \nclaim, and\nIdentify the specific year(s) for which a refund is \nsought.\nGenerally, the IRS will delay action on the protective \nclaim until the contingency is resolved. Once the contin-\ngency is resolved, the IRS may obtain additional informa-\ntion necessary to process the claim and then either allow \nor disallow the claim.\nMail your protective claim for refund to the address lis-\nted in the instructions for Form 1040X, under Where To \nFile.\nExceptions\nThe limits on your claim for refund can be affected by the \ntype of item that forms the basis of your claim.\nSpecial refunds. If you file a claim for refund based on \none of the items listed below, the limits discussed earlier \nTIP\nPage 14 \nPublication 556 (September 2013)\n",
"under Time for Filing a Claim for Refund may not apply. \nThese special items are:\nA bad debt,\nA worthless security,\nA payment or accrual of foreign tax,\nA net operating loss carryback, and\nA carryback of certain tax credits.\nThe limits discussed earlier also may not apply if you \nhave signed an agreement to extend the period of assess-\nment of tax.\nFor information on special rules on filing claims \nfor an individual affected by a terrorist attack, see \nPublication 3920.\nPeriods of financial disability. If you are an individual \n(not a corporation or other taxpaying entity), the period of \nlimitations on credits and refunds can be suspended dur-\ning periods when you cannot manage your financial affairs \nbecause of physical or mental impairment that is medi-\ncally determinable and either:\nHas lasted or can be expected to last continuously for \nat least 12 months, or\nCan be expected to result in death.\nThe period for filing a claim for refund will not be \nsuspended for any time that someone else, such \nas your spouse or guardian, was authorized to \nact for you in financial matters.\nTo claim financial disability, you generally must submit \nthe following statements with your claim for credit or re-\nfund:\n1. A written statement signed by a physician, qualified to \nmake the determination, that sets forth:\na. The name and a description of your physical or \nmental impairment,\nb. The physician's medical opinion that your physical \nor mental impairment prevented you from manag-\ning your financial affairs,\nc. The physician's medical opinion that your physical \nor mental impairment was or can be expected to \nresult in death, or that it has lasted (or can be ex-\npected to last) for a continuous period of not less \nthan 12 months, and\nd. To the best of the physician's knowledge, the spe-\ncific time period during which you were prevented \nby such physical or mental impairment from man-\naging your financial affairs, and\n2. A written statement by the person signing the claim \nfor credit or refund that no person, including your \nspouse, was authorized to act on your behalf in finan-\ncial matters during the period described in paragraph \n(1)(d) of the physician's statement. Alternatively, if a \nTIP\nCAUTION\n!\nperson was authorized to act on your behalf in finan-\ncial matters during any part of the period described in \nthat paragraph, the beginning and ending dates of the \nperiod of time the person was so authorized.\nThe period of limitations will not be suspended on \nany claim for refund that (without regard to this \nprovision) was barred as of July 22, 1998.\nLimit on Amount of Refund\nIf you file your claim within 3 years after filing your return, \nthe credit or refund cannot be more than the part of the tax \npaid within the 3 years (plus the length of any extension of \ntime granted for filing your return) before you filed the \nclaim.\nExample 1. You made estimated tax payments of \n$1,000 and got an automatic extension of time from April \n15, 2003, to August 15, 2003, to file your 2002 income tax \nreturn. When you filed your return on that date, you paid \nan additional $200 tax. Three years later, on August 15, \n2006, you file an amended return and claim a refund of \n$700. Because you filed within 3 years after filing your re-\nturn, you could get a refund of any tax paid after April 15, \n2003.\nExample 2. The situation is the same as in Example 1, \nexcept that you filed your return on October 31, 2003, 2\nmonths after the extension period ended. You paid an ad-\nditional $200 on that date. Three years later, on October \n27, 2006, you file an amended return and claim a refund \nof $700. Although you filed your claim within 3 years from \nthe date you filed your original return, the refund is limited \nto $200. The estimated tax of $1,000 was paid before the \n3 years plus the 4-month extension period.\nClaim filed after the 3-year period. If you file a claim af-\nter the 3-year period, but within 2 years from the time you \npaid the tax, the credit or refund cannot be more than the \ntax you paid within the 2 years immediately before you \nfiled the claim.\nExample. You filed your 2002 tax return on April 15, \n2003. You paid $500 in tax. On November 2, 2004, after \nan examination of your 2002 return, you had to pay $200 \nin additional tax. On May 2, 2006, you file a claim for a re-\nfund of $300. Your refund will be limited to the $200 you \npaid during the 2 years immediately before you filed your \nclaim.\nProcessing Claims for Refund\nClaims are usually processed shortly after they are filed. \nYour claim may be denied, accepted as filed, or it may be \nexamined. If a claim is examined, the procedures are al-\nmost the same as in the examination of a tax return.\nHowever, if you are filing a claim for credit or refund \nbased only on contested income tax or on estate tax or \ngift tax issues considered in previously examined returns \nand you do not want to appeal within the IRS, you should \nrequest in writing that the claim be immediately rejected. A \nCAUTION\n!\nPublication 556 (September 2013)\n Page 15\n",
"notice of claim disallowance will then be promptly sent to \nyou. You have 2 years from the date of mailing of the no-\ntice of disallowance to file a refund suit in a United States \nDistrict Court or in the United States Court of Federal \nClaims.\nExplanation of Any Claim\nfor Refund Disallowance\nThe IRS must explain to you the specific reasons why \nyour claim for refund is disallowed or partially disallowed. \nClaims for refund are disallowed based on a preliminary \nreview or on further examination. Some of the reasons \nyour claim may be disallowed include the following:\nIt was filed late.\nIt was based solely on the unconstitutionality of the \nrevenue acts.\nIt was waived as part of a settlement.\nIt covered a tax year or issues which were part of a \nclosing agreement or an offer in compromise.\nIt was related to a return closed by a final court order.\nIf your claim is disallowed for these reasons, or any other \nreason, the IRS must send you an explanation.\nReduced Refund\nYour refund may be reduced by an additional tax liability. \nAlso, your refund may be reduced by amounts you owe \nfor past-due child support, debts you owe to another fed-\neral agency, or past-due legally enforceable state income \ntax obligations. You will be notified if this happens. For \nthose reductions, you cannot use the appeal and refund \nprocedures discussed in this publication. However, you \nmay be able to take action against the other agency.\nOffset of past-due state income tax obligations \nagainst overpayments. Federal tax overpayments can \nbe used to offset past-due, legally enforceable state in-\ncome tax obligations. For the offset procedure to apply, \nyour federal income tax return must show an address in \nthe state that requests the offset. In addition, the state \nmust first:\nNotify you by certified mail with return receipt that the \nstate plans to ask for an offset against your federal in-\ncome tax overpayment,\nGive you at least 60 days to show that some or all of \nthe state income tax is not past due or not legally en-\nforceable,\nConsider any evidence from you in determining that \nincome tax is past due and legally enforceable,\nSatisfy any other requirements to ensure that there is \na valid past-due, legally enforceable state income tax \nobligation, and\nShow that all reasonable efforts to obtain payment \nhave been made before requesting the offset.\nPast-due, legally enforceable state income tax ob-\nligation. This is an obligation (debt):\nEstablished by a court decision or administrative hear-\ning and no longer subject to judicial review, or\nThat is assessed, uncollected, can no longer be rede-\ntermined, and is less than 10 years overdue.\nOffset priorities. Overpayments are offset in the fol-\nlowing order:\n1. Federal income tax owed.\n2. Past-due child support.\n3. Past-due, legally enforceable debt owed to a federal \nagency.\n4. Past-due, legally enforceable state income tax debt.\n5. Future federal income tax liability.\nNote. If more than one state agency requests an offset \nfor separate debts, the offsets apply against your overpay-\nment in the order in which the debts accrued. In addition, \nstate income tax includes any local income tax adminis-\ntered by the chief tax administration agency of a state.\nNote. The Tax Court cannot decide the validity or mer-\nits of the credits or offsets (for example, collection of delin-\nquent child support or student loan payments) made that \nreduce or eliminate a refund to which you were otherwise \nentitled.\nInjured spouse exception. When a joint return is filed \nand the refund is used to pay one spouse's past-due child \nsupport, spousal support, or a federal debt, the other \nspouse can be considered an injured spouse. An injured \nspouse can get a refund for his or her share of the over-\npayment that would otherwise be used to pay the \npast-due amount.\nYou are considered an injured spouse if:\n1. You are not legally obligated to pay the past-due \namount and\n2. You meet any of the following conditions:\na. You made and reported tax payments (such as \nfederal income tax withheld from wages or estima-\nted tax payments).\nb. You had earned income (such as wages, salaries, \nor self-employment income) and claimed the \nearned income credit or the additional child tax \ncredit.\nc. You claimed a refundable credit, such as the \nhealth coverage tax credit.\nNote. If your residence was in a community property \nstate at any time during the year, you can file Form 8379 \neven if only item (1) above applies.\nIf you are an injured spouse, you can obtain your por-\ntion of the joint refund by completing Form 8379. Follow \nthe instructions on the form.\nPage 16 \nPublication 556 (September 2013)\n",
"Relief from joint and several liability on a joint return.\nGenerally, joint and several liability applies to all joint re-\nturns. This means that both you and your spouse (or for-\nmer spouse) are liable for any tax shown on a joint return \nplus any understatement of tax that may become due \nlater. This is true even if a divorce decree states that a for-\nmer spouse will be responsible for any amounts due on \npreviously filed joint returns.\nIn some cases, a spouse will be relieved of the tax, in-\nterest, and penalties on a joint tax return. Three types of \nrelief are available.\nInnocent spouse relief.\nSeparation of liability.\nEquitable relief.\nForm 8857. Each kind of relief is different and has dif-\nferent requirements. You must file Form 8857, Request for \nInnocent Spouse Relief, to request relief. See the instruc-\ntions for Form 8857 and Publication 971 for more informa-\ntion on these kinds of relief and who may qualify for them.\nHow To Get Tax Help\nGo online, use a smart phone, call or walk in to an office \nnear you. Whether it's help with a tax issue, preparing \nyour tax return or picking up a free publication or form, get \nthe help you need the way you want it.\nFree help with your tax return. Free help in preparing \nyour return is available nationwide from IRS-certified vol-\nunteers. The Volunteer Income Tax Assistance (VITA) \nprogram is designed to help low-to-moderate income, eld-\nerly, persons with disabilities, and limited English profi-\ncient taxpayers. The Tax Counseling for the Elderly (TCE) \nprogram is designed to assist taxpayers age 60 and older \nwith their tax returns. Most VITA and TCE sites offer free \nelectronic filing and all volunteers will let you know about \ncredits and deductions you may be entitled to claim. \nSome VITA and TCE sites provide taxpayers the opportu-\nnity to prepare their return with the assistance of an \nIRS-certified volunteer. To find the nearest VITA or TCE \nsite, visit IRS.gov or call 1-800-906-9887.\nAs part of the TCE program, AARP offers the Tax-Aide \ncounseling program. To find the nearest AARP Tax-Aide \nsite, visit AARP's website at www.aarp.org/money/taxaide \nor call 1-888-227-7669.\nFor more information on these programs, go to IRS.gov \nand enter “VITA” in the search box.\nInternet. IRS.gov and IRS2Go are ready when \nyou are — every day, every night, 24 hours a day, \n7 days a week.\nApply for an Employer Identification Number (EIN). Go \nto IRS.gov and enter Apply for an EIN in the search \nbox.\nRequest an Electronic Filing PIN by going to IRS.gov \nand entering Electronic Filing PIN in the search box.\nCheck the status of your 2013 refund with Where's My \nRefund? Go to IRS.gov or the IRS2Go app, and click \non Where's My Refund? You'll get a personalized re-\nfund date as soon as the IRS processes your tax re-\nturn and approves your refund. If you efile, your re-\nfund status is usually available within 24 hours after \nthe IRS receives your tax return or 4 weeks after \nyou've mailed a paper return.\nCheck the status of your amended return. Go to \nIRS.gov and enter Where's My Amended Return? in \nthe search box.\nDownload forms, instructions, and publications, in-\ncluding some accessible versions.\nOrder free transcripts of your tax returns or tax ac-\ncount using the Order a Transcript tool on IRS.gov or \nIRS2Go. Tax return and tax account transcripts are \ngenerally available for the current year and past three \nyears.\nFigure your income tax withholding with the IRS \nWithholding Calculator on IRS.gov. Use it if you've \nhad too much or too little withheld, your personal sit-\nuation has changed, you're starting a new job or you \njust want to see if you're having the right amount with-\nheld.\nDetermine if you might be subject to the Alternative \nMinimum Tax by using the Alternative Minimum Tax \nAssistant on IRS.gov.\nLocate the nearest Taxpayer Assistance Center using \nthe Office Locator tool on IRS.gov or IRS2Go. Stop by \nmost business days for face-to-face tax help, no ap-\npointment necessary — just walk in. An employee can \nexplain IRS letters, request adjustments to your tax \naccount or help you set up a payment plan. Before \nyou visit, check the Office Locator for the address, \nphone number, hours of operation and the services \nprovided. If you have an ongoing tax account problem \nor a special need, such as a disability, you can re-\nquest an appointment. Call the local number listed in \nthe Office Locator, or look in the phone book under \nUnited States Government, Internal Revenue Service.\nLocate the nearest volunteer help site with the VITA \nLocator Tool on IRS.gov. Low-to-moderate income, \nelderly, persons with disabilities, and limited English \nproficient taxpayers can get free help with their tax re-\nturn from the nationwide Volunteer Income Tax Assis-\ntance (VITA) program. The Tax Counseling for the \nElderly (TCE) program helps taxpayers 60 and older \nwith their tax returns. Most VITA and TCE sites offer \nfree electronic filing and some provide IRS-certified \nvolunteers who can help prepare your tax return. \nAARP offers the Tax-Aide counseling program as part \nof the TCE program. Visit AARP's website to find the \nnearest Tax-Aide location.\nResearch your tax questions.\nSearch publications and instructions by topic or key-\nword.\nPublication 556 (September 2013)\n Page 17\n",
"Read the Internal Revenue Code, regulations, or other \nofficial guidance.\nRead Internal Revenue Bulletins.\nSign up to receive local and national tax news by \nemail.\nPhone.You can call the IRS, or you can carry it in \nyour pocket with the IRS2Go app on your smart \nphone or tablet.\nDownload the free IRS2Go mobile app from the \niTunes app store or from Google Play. Use it to watch \nthe IRS YouTube channel, get IRS news as soon as \nit's released to the public, order transcripts of your tax \nreturns or tax account, check your refund status, sub-\nscribe to filing season updates or daily tax tips, and \nfollow the IRS Twitter news feed, @IRSnews, to get \nthe latest federal tax news, including information \nabout tax law changes and important IRS programs.\nCall to locate the nearest volunteer help site, \n1-800-906-9887. Low-to-moderate income, elderly, \npersons with disabilities, and limited English proficient \ntaxpayers can get free help with their tax return from \nthe nationwide Volunteer Income Tax Assistance \n(VITA) program. The Tax Counseling for the Elderly \n(TCE) program helps taxpayers 60 and older with their \ntax returns. Most VITA and TCE sites offer free elec-\ntronic filing. Some VITA and TCE sites provide \nIRS-certified volunteers who can help prepare your \ntax return. Through the TCE program, AARP offers the \nTax-Aide counseling program; call 1-888-227-7669 to \nfind the nearest Tax-Aide location.\nCall to check the status of your 2013 refund, \n1-800-829-1954 or 1-800-829-4477. The automated \nWhere's My Refund? information is available 24 hours \na day, 7 days a week. If you efile, your refund status \nis usually available within 24 hours after the IRS re-\nceives your tax return or 4 weeks after you've mailed a \npaper return. Before you call, have your 2013 tax re-\nturn handy so you can provide your social security \nnumber, your filing status, and the exact whole dollar \namount of your refund. Where's My Refund? can give \nyou a personalized refund date as soon as the IRS \nprocesses your tax return and approves your refund. \nWhere's My Refund? includes information for the most \nrecent return filed in the current year and does not in-\nclude information about amended returns.\nCall the Amended Return Hotline, 1-866-464-2050, to \ncheck the status of your amended return.\nCall to order forms, instructions and publications, \n1-800-TAX-FORM (1-800-829-3676) to order cur-\nrent-year forms, instructions and publications, and \nprior-year forms and instructions (limited to 5 years). \nYou should receive your order within 10 business \ndays.\nCall to order transcripts of your tax returns or tax ac\ncount, 1-800-908-9946. Follow the prompts to provide \nyour Social Security Number or Individual Taxpayer \nIdentification Number, date of birth, street address \nand ZIP code.\nCall for TeleTax topics, 1-800-829-4477, to listen to \npre-recorded messages covering various tax topics.\nCall to ask tax questions, 1-800-829-1040.\nCall using TTY/TDD equipment, 1-800-829-4059 to \nask tax questions or order forms and publications. The \nTTY/TDD telephone number is for people who are \ndeaf, hard of hearing, or have a speech disability. \nThese individuals can also contact the IRS through re-\nlay services such as the Federal Relay Service availa-\nble at www.gsa.gov/fedrelay.\nWalk-in. You can find a selection of forms, publi-\ncations and services — in-person, face-to-face.\nProducts. You can walk in to some post offices, libra-\nries, and IRS offices to pick up certain forms, instruc-\ntions, and publications. Some IRS offices, libraries, \nand city and county government offices have a collec-\ntion of products available to photocopy from reprodu-\ncible proofs.\nServices. You can walk in to your local TAC (Taxpayer \nAssistance Center) most business days for personal, \nface-to-face tax help. An employee can explain IRS \nletters, request adjustments to your tax account, or \nhelp you set up a payment plan. If you need to resolve \na tax problem, have questions about how the tax law \napplies to your individual tax return, or you are more \ncomfortable talking with someone in person, visit your \nlocal TAC where you can talk with an IRS representa-\ntive face-to-face. No appointment is necessary—just \nwalk in. Before visiting, check www.irs.gov/\nlocalcontacts for hours of operation and services pro-\nvided.\nMail. You can send your order for forms, instruc-\ntions, and publications to the address below. You \nshould receive a response within 10 business \ndays after your request is received.\nInternal Revenue Service\n1201 N. Mitsubishi Motorway\nBloomington, IL 61705-6613\nThe Taxpayer Advocate Service Is Here to Help You. \nThe Taxpayer Advocate Service (TAS) is your voice at the \nIRS. Our job is to ensure that every taxpayer is treated \nfairly and that you know and understand your rights.\nWhat can TAS do for you? We can offer you free help \nwith IRS problems that you can't resolve on your own. We \nknow this process can be confusing, but the worst thing \nyou can do is nothing at all! TAS can help if you can't re-\nsolve your tax problem and:\nYour problem is causing financial difficulties for you, \nyour family, or your business.\nPage 18 \nPublication 556 (September 2013)\n",
"You face (or your business is facing) an immediate \nthreat of adverse action.\nYou've tried repeatedly to contact the IRS but no one \nhas responded, or the IRS hasn't responded by the \ndate promised.\nIf you qualify for our help, you'll be assigned to one ad-\nvocate who'll be with you at every turn and will do every-\nthing possible to resolve your problem. Here's why we can \nhelp:\nTAS is an independent organization within the IRS. \nOur advocates know how to work with the IRS.\nOur services are free and tailored to meet your needs.\nWe have offices in every state, the District of Colum-\nbia, and Puerto Rico.\nHow can you reach us? If you think TAS can help you, \ncall your local advocate, whose number is in your local di-\nrectory and at www.irs.gov/advocate, or call us toll-free at \n1-877-777-4778.\nHow else does TAS help taxpayers? TAS also works \nto resolve large-scale, systemic problems that affect many \ntaxpayers. If you know of one of these broad issues, \nplease report it to us through our Systemic Advocacy \nManagement System at www.irs.gov/sams.\nLow Income Taxpayer Clinics. Low Income Taxpayer \nClinics (LITCs) serve individuals whose income is below a \ncertain level and need to resolve tax problems such as au-\ndits, appeals, and tax collection disputes. Some clinics \ncan provide information about taxpayer rights and respon-\nsibilities in different languages for individuals who speak \nEnglish \nas \na \nsecond \nlanguage. \nVisit \nwww.TaxpayerAdvocate.irs.gov or see IRS Publication \n4134, Low Income Taxpayer Clinic List.\nPublication 556 (September 2013)\n Page 19\n",
"To help us develop a more useful index, please let us know if you have ideas for index entries.\nSee “Comments and Suggestions” in the “Introduction” for the ways you can reach us.\nIndex\n \nA\nAbatement of interest (See Interest, \nabatement)\nAppeal rights 8, 9, 12\n (See also Tax Court)\nAssistance (See Tax help)\nAuthorization, third party 3\nB\nBurden of proof 9\nC\nCivil action (See Waivers, tax suits, \ncivil action)\nClaim for refund 13\nDisallowance 16\nEstates on installment method 14\nPeriods of financial disability 15\nComments on publication 2\nCommunications, privileged 3, 9\nConfidentiality 3, 9\nD\nDisability (See Financial disability, \nperiods of)\nDisaster areas, abatement of \ninterest 8\nE\nEmployment status, Tax Court \nreview of 11\nEstates:\nClaim for refund 14\nExamination of returns 2\nF\nFast track mediation 4\nFinancial disability, periods of:\nClaim for refund 15\nForm:\n8379 16\n8857 17\nFree tax services 17\nH\nHelp (See Tax help)\nI\nInjured spouse 16\nInnocent spouse relief 11, 17\nInstallment agreement 6\nInstallment method:\nEstates, claim for refund by 14\nInterest:\nAbatement:\nDisaster areas 8\nError or delay by IRS 7\nTerrorist attacks 8\nNetting, overlapping \nunderpayments and \noverpayments 6\nSuspended 5\nJ\nJoint and several liability, relief \nfrom 11, 17\nL\nLosses:\nDisaster area 13\nLow Income Taxpayer Clinics 19\nM\nMediation, fast track 4\nMore information 2\nN\nNotice of deficiency:\nTimely mailing 5\nNotices:\nThird party contacts 3\nO\nOffer in compromise 8\nOverpayments:\nOffsets against state tax 16\nP\nPenalties, suspended 5\nPractitioners, federally authorized:\nConfidential communications 3, 9\nPresidentially declared disaster 14\nPublications (See Tax help)\nR\nRefund 13, 15, 16\nReduced 16\nRefund deadline postponement 14\nRefund or credit before court \ndecision 13\nRights:\nCommunications, privileged 3, 9\nRequests to waive 9\nS\nSuggestions for publication 2\nT\nTax Court 9, 12\nEmployment status, review of 11\nInnocent spouse relief, review of \nrequest for 11\nRefund or credit before decision 13\nTax help 17\nTaxpayer Advocate 3\nTaxpayer Advocate Service 3\nTerrorist attacks, abatement of \ninterest 8\nThird party authorization 3\nTTY/TDD information 17\nW\nWaivers:\nTax suits, civil action 9\nZ\nZero rate, overlapping periods of \ninterest (See Interest, netting)\nPage 20\nPublication 556 (September 2013)\n"
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f8811.pdf
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0813 Form 8811 (PDF)
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https://www.irs.gov/pub/irs-pdf/f8811.pdf
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[
"Form 8811\n(Rev. August 2013) \nDepartment of the Treasury \nInternal Revenue Service \nInformation Return for Real Estate Mortgage Investment \nConduits (REMICs) and Issuers of Collateralized Debt Obligations \n▶ Information about Form 8811 and its instructions is at www.irs.gov/form8811. \nOMB No. 1545-1099 \nCaution. A Financial Asset Securitization Investment Trust (FASIT) should only file this form if it is amending or voiding a previously \nfiled Form 8811. See When To File. \nCheck below to indicate type of filer (see Who Must File):\nREMIC \nIssuer of collateralized debt obligation (CDO) \n1 Name of REMIC or issuer of CDO \n2 Employer identification number \n3 Address (see instructions) \n4 Name and title of the representative to be contacted by the public (see instructions) \n5 Telephone number of representative \n(optional) \n6 Address of the representative to be contacted by the public (if different from REMIC’s or issuer’s) \n7 CUSIP number(s) (see instructions) \n8 Startup day or issue date (mm/dd/yyyy) \n9 Name and title of the representative to be contacted by the IRS (see instructions) \n10 Telephone number of representative \n11 Address of the representative to be contacted by the IRS \nPlease \nSign \nHere \nUnder penalties of perjury, I declare that I have examined this return, including accompanying statements, and to the best of my knowledge and belief, \nit is true, correct, and complete. \n▲\nSignature (see instructions) \nDate \n▲\nTitle \nGeneral Instructions \nSection references are to the Internal \nRevenue Code unless otherwise noted. \nFuture Developments\nFor the latest information about \ndevelopments related to Form 8811 and \nits instructions, such as legislation \nenacted after they were published, go to \nwww.irs.gov/form8811.\nWhat's New\nThere is a new filing address for Form \n8811. See Where To File, later.\nPurpose of Form \nA REMIC or issuer of a CDO (defined in \nRegulations section 1.6049-7(d)(2)) uses \nForm 8811 to provide the information \nrequired by Regulations section \n1.6049-7(b)(1)(ii) to be published in the \ndirectory of REMICs and issuers of \nCDOs, Pub. 938, Real Estate Mortgage \nInvestment Conduits (REMICs) Reporting \nInformation (And Other Collateralized \nDebt Obligations (CDOs)). \nWho Must File \nForm 8811 must be filed by entities that \nelect to be treated as a REMIC and by \nissuers of CDOs. \nWhen To File \nFile Form 8811 no later than 30 days \nafter the startup day of the REMIC or \nissue date of the CDO. \nThe REMIC or issuer of a CDO must \nfile a new Form 8811 within 30 days after \nthe change of any of the information \nprovided on a previously filed Form 8111. \nWhen completing a new Form 8811 \nfor this purpose, write the word \n“AMENDED” across the top of the form. \nIf the issuer is a FASIT, and the \ninformation being amended does not \nappear on the current version of the \nform, prepare a separate statement \ndetailing the information that is being \nchanged. File the amended Form 8811, a \ncopy of the original Form 8811 (with the \nword “COPY” written across the top of \nthe form), and the separate statement (if \nrequired). \nIf the REMIC or another issuer ceases \nto have interests outstanding, file a copy \nof the original Form 8811 with the word \n“VOID” written across the form. \nThe IRS lists any changes or voided \nissues in Pub. 938.\nUse and Availability of Information \non This Form \nThe information on line 1 and lines 3 \nthrough 8 will be published in Pub. 938.\nPub. 938 is only available on the \nInternet. To get Pub. 938, visit IRS.gov. \nWhere To File \nSend Form 8811 to: \nDepartment of the Treasury \nInternal Revenue Service \nOgden, UT 84201-0209\nSignatures \nREMIC with a startup day after \nNovember 9, 1988. For a REMIC with a \nstartup day after November 9, 1988, \nForm 8811 must be signed by a person \nwho could sign the return of the entity in \nthe absence of the REMIC election. \nFor Paperwork Reduction Act Notice, see page 2. \nCat. No. 10460C \nForm 8811 (Rev. 8-2013) \n",
"Form 8811 (Rev. 8-2013) \nPage 2 \nThus, the return of a REMIC that is a \ncorporation or trust must be signed by a \ncorporate officer or a trustee, \nrespectively. For REMICs that consist of \nsegregated pools of assets, the return \nmust be signed by a person who could \nsign the return of the entity that owns the \nassets of the REMIC under applicable \nstate law. \nREMIC with a startup day before \nNovember 10, 1988. A REMIC with a \nstartup day before November 10, 1988, \nmay elect to apply the rules applicable to \nREMICs with a startup day after \nNovember 9, 1988. Otherwise, Form \n8811 must be signed by a residual \ninterest holder or, as provided in section \n6903, by a fiduciary who is acting for the \nREMIC and who has given adequate \nnotice as prescribed in Regulations \nsection 301.6903-1(b). The term \n“fiduciary” means a guardian, trustee, \nexecutor, administrator, receiver, \nconservator, or any person acting in any \nfiduciary capacity for any person. \nIssuer of a CDO. Form 8811 must be \nsigned by a person who could sign the \nreturn of the issuer of the CDO. \nSpecific Instructions \nLine 3 \nEnter the number, street, room or suite \nnumber (or P.O. box number), city or \ntown, state, and zip code. You may enter \na website address only if the address \ntakes you directly to a webpage that \ncontains all the address information \nspecified in the prior sentence. \nLines 4, 5, and 6 \nEnter the name, title, and either the \naddress or the address and telephone \nnumber of the official or representative \ndesignated by the REMIC or issuer of \nthe CDO to provide information \nnecessary to figure the amount of \ninterest and original issue discount (OID) \nthat the holder is required to report on \nthe appropriate tax return. You may \nenter a website address in line 6 only if \nthe address takes you directly to a \nwebpage that contains all the address \ninformation specified in the instructions \nfor line 3. \nNote. Do not complete line 6 if the entry \nwould be the same address that was \nentered in line 3. \nLine 7 \nEnter the Committee on Uniform \nSecurity Identification Procedure \n(CUSIP) number assigned to each class \nof REMIC regular interest or to each \nCDO. \nLine 8 \nThe startup day is the day on which the \nREMIC issued all of its regular and \nresidual interests. However, a sponsor \nmay contribute property to a REMIC in \nexchange for regular and residual \ninterests over any period of 10 \nconsecutive days and the REMIC may \ndesignate any one of those 10 days as \nthe startup day. The day so designated \nis then the startup day, and all interests \nare treated as issued on that day. For \nnon-REMIC debt obligations, the issue \ndate is defined in section 1275(a)(2). \nLines 9, 10, and 11 \nEnter the name and title, address, and \ntelephone number of the official or \nrepresentative of the REMIC or issuer of \nthe CDO whom the IRS may contact with \nquestions concerning this form. This \ninformation will not appear in Pub. 938.\nPaperwork Reduction Act Notice \nWe ask for the information on this form \nto carry out the internal revenue laws of \nthe United States. You are required to \ngive us the information. We need it to \nensure that you are complying with these \nlaws and to allow us to figure and \ncollect the right amount of tax. \nYou are not required to provide the \ninformation requested on a form that is \nsubject to the Paperwork Reduction Act \nunless the form displays a valid OMB \ncontrol number. Books or records \nrelating to a form or its instructions must \nbe retained as long as their contents \nmay become material in the \nadministration of any internal revenue \nlaw. Generally, tax returns and return \ninformation are confidential, as required \nby section 6103. \nThe time needed to complete and file \nthis form will vary depending on \nindividual circumstances. The estimated \naverage time is: \nRecordkeeping .\n.\n.\n. 3 hr., 6 min. \nLearning about the law \nor the form \n.\n.\n.\n.\n.\n.\n 35 min. \nPreparing, copying, \nassembling, and \nsending the form \nto the IRS .\n.\n.\n.\n.\n.\n.\n 40 min. \nIf you have comments concerning the \naccuracy of these time estimates or \nsuggestions for making this form \nsimpler, we would be happy to hear \nfrom you. You can send your comments \nto: \nInternal Revenue Service \nTax Forms and Publications \nSE:W:CAR:MP:TFP \n1111 Constitution Ave. NW, IR-6526 \nWashington, DC 20224\n"
] |
p5115.pdf
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0813 Publ 5115 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5115.pdf
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[
"For More Information\nVisit www.irs.gov and type “MAPP” in the search box.\nTo contact the IRS Office of \nGovernmental Liaison\nSend an email to [email protected]\nPublication 5115 (8-2013) Catalog Number 65186J\nDepartment of the Treasury Internal Revenue Service www.irs.gov\nInternal Revenue Service \nOffice of Governmental Liaison\nIncrease cooperation and \ncollaboration with local\ngovernment agencies and \nassociations to enhance \ncompliance, data sharing and \noutreach opportunities to the \nmutual benefit of IRS and \nagency partners.\nMAPP Mission\nStatement\nRevised 2013\nGateway to Good Government\nMAPP\nMunicipal Agency \nPartnering Program\nGateway to Good Government\n",
"How can we work together?\nAre you interested in letting residents know about the \nEarned Income Tax Credit, which can be worth over \n$5000 a year to working families?\nIRS can provide public service announcements and \nsocial media messages to help you alert residents \nto the EITC and other tax benefits. To access EITC \nproducts visit: http://www.eitc.irs.gov/ptoolkit/city/.\nWould you like to find out if an organization in your \ncommunity has tax exempt status, or what the total \nretirement income reported by taxpayers in your zip \ncode was?\nVisit http://www.irs.gov/Charities-&-Non-Profits/\nExempt-Organizations-Select-Check to find \ninformation specific to your city on Exempt \nOrganizations Select Check and the Statistics of \nIncome webpage. \nAre you interested in sharing information about free \ntax preparation programs in your communities? The \nIRS Volunteer Income Tax Assistance (VITA) and the \nTax Counseling for the Elderly (TCE) Programs offer \nfree tax help for taxpayers who qualify. \nFor more details about these programs as well as the self- \nassistance program visit http:// www.irs.gov/Individuals/\nFree-Tax-Return-Preparation-for-You-by-Volunteers.\nTo find out more about these and other MAPP services, \nsend an e-mail to [email protected].\n • \u0007\nTax Information from IRS with Taxpayer \nConsent\n • Free Tax Preparation Programs\n • \u0007\nTaxpayer Identification Number (TIN) Matching \nProgram\n • Help from Taxpayer Advocate Service\n • Earned Income Tax Credit\nWhat is MAPP?\nMAPP is a program to enhance cooperation and \ncollaboration with municipal government entities to \nincrease compliance, data sharing and outreach \nopportunities to the mutual benefit of IRS and \nagency partners.\nIRS has identified five types of city/county \ngovernment agencies that provide promise for \nestablishing new initiatives with the IRS:\n • Tax/Revenue Agencies\n • Vendor Regulatory Agencies\n • Comptrollers/Finance Agencies\n • Property Tax Assessors\n • Business Licensing Agencies\nIn addition, IRS wants to work with associations \nto reach more municipalities. Local Governmental \nLiaisons will be a single point of contact for \nagencies and associations to assist in accessing \nIRS products and services.\n• Statistics of Income Data\n• Exempt Organizations Select Check\n• \u0007\nTraining (Webinars, Phone Forums, and Counsel \nCourses)\n• Internet EIN\n• \u0007\nSingle Point of Contact on IRS Questions and \nIssues\nMAPP Products & Services\n"
] |
p4118cn.pdf
|
0712 Publ 4118 (CN) (PDF)
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https://www.irs.gov/pub/irs-pdf/p4118cn.pdf
|
[
"您知道嗎… ■ 退休可能持續40年之久 ■ 退休者可能需要高達80%退休前的\n收入才能安穩退休 ■ 每月的社會安全金付款平均大約是$1,000左右\nBenefits\nLots\nof\n若您設\n立並參\n與僱員\n退休計\n劃\nBenefits\nTax Exempt and Government Entities\nEMPLOYEE PLANS\nBenefits\nof\nBenefits\nBenefits\nBenefits\n退休計\n劃\nBenefits\n好處多多\n",
"及早開始…\n以下顯示兩位年輕工作者的不同儲蓄方式： \n小君 20歲時大學畢業開始工作了，但她等到30歲才開始儲蓄退休金。小君必\n須在之後30多年期間每個月存入$300，才能在65歲退休時賺到大約一百萬美\n元。\n雅珀 20歲時大學畢業，隨即開始工作並參加她僱主的退休計劃，每個月存入\n$300。她選擇僱主計劃中的多元投資計劃，平均每年獲利10%。\n之後，雅珀結婚成家並在工作10年後決定留在家裏持家。雅珀在工作期間已對\n其退休基金供款$36,000，之後沒有再存進一毛錢。因爲複利的關係，在雅珀\n65歲時，她退休帳戶裡有超過兩百萬美元。\n下表比較了小君跟雅珀的儲蓄情況。\n小君必須投入更多的自費供款，才能達到\n一百萬美元。她的供款成長（或複利）\n的時間較短。\n請記得，雅珀在工作的10年期間共供款$36,000。所\n有接下來的年獲利都以她早先提供的那$36,000供款\n為計算基礎。\n及早開始…\n及早開始…\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n第10年 \n$36,000 \n$36,000 \n$61,966 \n$0 \n$0 \n$0\n \n第20年 \n 0 \n36,000 \n167,743 \n 36,000 \n36,000 \n61,966\n \n第30年 \n 0 \n36,000 \n454,089 \n36,000 \n72,000 \n229,709\n \n第40年 \n 0 \n36,000 \n1,229,236 \n36,000 \n108,000 \n683,798\n \n第45年 \n $0 \n$36,000 \n$2,022,474 \n$18,000 \n$126,000 \n$1,148,483\n*每月$300 乘以年數\n請記得，雅珀在工作的10年期間共供款$36,000。所\n有接下來的年獲利都以她早先提供的那$36,000供款\n \n $0 \n$36,000 \n$2,022,474 \n$18,000 \n$126,000 \n$1,148,483\n每月$300\n的儲蓄，以\n10%的複利\n獲利計算\n雅珀，\n很早就開始儲蓄的，得到…\n小君，\n後來才開始儲蓄的，得到…\n供款*\n累積供\n款總數\n帳戶\n餘額\n累積供\n款總數\n供款*\n帳戶\n餘額\n",
"現在的利益，未來的利益\n爲何您應該對退休計劃感興趣，\n退休計劃有什麽好處？\n退休計劃容許現在就對未來退休時的經濟保障進行投資。另外的附帶利益是，企\n業和僱員為退休進行投資時也獲得許多的稅務優惠和其他獎勵。\n對企業的利益包括：\n■ 僱主供款是可以抵稅的，\n■ 在計劃中的資產成長是免稅的，\n■ 企業可因設立退休計劃而獲得各種稅收抵免以及其他獎勵，\n■ 有各種彈性計劃選項，以及\n■ 退休計劃可吸引並幫助留住優秀的僱員，故而降低新僱員訓練費用。\n對僱員的利益包括：\n■ 僱員供款的稅金延後到款項發配後才徵收，\n■ 計劃中的投資利得稅金直到款項發配後才徵收，\n■ 退休資產可由一僱主處轉移到另一僱主處,\n■ 可以很簡便地以薪資扣減的方式供款，\n■ \n有可能符合儲蓄抵稅優惠，並且\n■ 在退休時有更好的經濟保障。\n首先步驟\n您學習如何設立退休計劃的首先步驟是什麽？\n從聯繫熟悉各種退休計劃的稅務專業人士或提供各種退休計劃的金融機構開始。\n您可以在國稅局網站www.irs.gov取得各種退休計劃的詳細資訊。請參考封面背\n頁所列的其他網站和電話號碼，以取得國稅局退休計劃閲讀資料或者與您退休計\n劃稅務有關問題的答案。\n現在的利益，未來的利益\n現在的利益，未來的利益\n現在的利益，未來的利益\n",
"Benefits\nLots\nof\n下一階段 (進行中)\n退休計劃的各“工作階段”是什麽？\n每個退休計劃都有三個執行上的關鍵階段--選擇、設立以及計劃運作。\n選擇—做決定投資您的未來。開始思考退休常見的問題，然後學習您可以\n為您自己和您僱員退休而預留金錢的一些特定方式。\n設立—採取必要步驟來開設您的退休計劃。依照您選擇的計劃類型，僱主\n管理步驟的範圍亦有所不同，比如：\n■ 為計劃的資產安排基金，\n■ 採用書面計劃，\n■ 通知符合參加資格的僱員，以及\n■ 為您的計劃發展一套記錄保存系統。\n運作—執行您的退休計劃的條款以使之成長，並演變為您所需的寶貴退休\n基礎。依照設立的計劃類型，僱主需要採取幾個步驟以持續運作此計劃，比\n如：\n■ 涵蓋合格僱員，\n■ 提出適當的供款，\n■ 遵循退休計劃法律，使該計劃合時合宜。\n■ 有效的管理計劃資產，\n■ 向參與該計劃的僱員提供資訊，並且\n■ 發配適當的福利。\n請參閱國稅局的4460號刊物【退休計劃產品指南】\n(The IRS Retirement Plan Products Guide)，或者撥打國稅局免費電話 \n800-829-3676 索取。4460號刊物依序列出各種退休計劃產品相關資訊，\n以協助選擇、設立並運作對僱主和僱員都合宜的計劃。\n下一階段 (進行中)\n下一階段 (進行中)\n下一階段 (進行中)\n",
"*假設年獲利10%，每月複利計算\n \n \n \n \n \n \n \n \n= \n \n \n \n \n \n \n$100 \n$ 7,808 \n$ 41,792 \n$ 227,933\n \n$300 \n$23,425 \n $125,377 \n$683,798\n \n$500 \n $39,041 \n$208,962 \n$1,139,663\n本刊物列出了退休計劃對僱主和僱員雙方均有\n許多益處。首先, 它説明在您開始考慮退休計劃\n時的步驟，然後談論計劃的一些後續階段像是\n選擇、設立以及運作等。最後，還提供了對退\n休計劃提供協助的各種資源和聯繫處所等。\n國稅局對僱主和僱員提供適用於各種退休計劃\n的稅務規定相關資訊。這些對企業主、稅務專\n業人員、退休計劃管理人和退休計劃參與人有\n用的資訊刊載在國稅局網站www.irs.gov 的退\n休計劃網頁中。\n複利真划算！\n這裡是複利的“價值”速覽表！\n您的每月儲蓄\n您的儲\n蓄報酬\n率5年*\n您的儲\n蓄報酬\n率15年*\n您的儲\n蓄報酬\n率30年*\n",
"Publication 4118 (CN) (Rev. 7-2012) Catalog Number 60885H\nDepartment of the Treasury Internal Revenue Service \nwww.irs.gov\n若需要協助，請撥打國稅局的\n800-829-1040免費電話。\n國稅局退休計劃資訊資源\n通過以下方式取得退休計劃的資訊或協助：\n■ 國稅局網站www.irs.gov\n■ 877-829-5500：僱員計劃客戶帳戶服務\n請至www.irs.gov下載以下各刊物，或者撥打國稅局的\n800-829-3676 免費電話索取免費複本。\n■ \n560號刊物, 【各種小型企業退休計劃】（Retirement Plans for Small \nBusiness (SEP, SIMPLE, and Qualified Plans)）\n■ \n590號刊物, 【個人退休福利安排計劃】（Individual Retirement \nArrangements (IRAs)）\n■ \n3998號刊物, 【為您的小型企業選擇退休方案】（Choosing a Retirement \nSolution for Your Small Business）\n■ \n4222號刊物, 【小型企業的401(K)計劃】（401(k) Plans for Small \nBusinesses）\n■ \n4333號刊物, 【小型企業的SEP退休計劃】（SEP Retirement Plans for Small \nBusinesses）)\n■ \n4334號刊物,【小型企業的SIMPLE IRA 計劃】（SIMPLE IRA Plans for Small \nBusinesses））\n■ \n4587號刊物, 【小型企業的各種薪資扣繳型IRA】（ Payroll Deduction IRAs \nfor Small Businesses）\n■ \n4674號刊物, 【小型企業的各種自動註冊型401(k)計劃】（Automatic \nEnrollment 401(k) Plans for Small Businesse）\n■ \n4806號刊物, 【小型企業的各種利潤分享計劃】（ Profit Sharing Plans for \nSmall Businesses）\n"
] |
f8275.pdf
|
0813 Form 8275 (PDF)
|
https://www.irs.gov/pub/irs-pdf/f8275.pdf
|
[
"Form 8275\n(Rev. August 2013) \nDepartment of the Treasury \nInternal Revenue Service \nDisclosure Statement \nDo not use this form to disclose items or positions that are contrary to Treasury \nregulations. Instead, use Form 8275-R, Regulation Disclosure Statement.\n▶ Information about Form 8275 and its separate instructions is at www.irs.gov/form8275. \n▶ Attach to your tax return. \nOMB No. 1545-0889 \nAttachment \nSequence No. 92 \nName(s) shown on return \nIdentifying number shown on return \nIf Form 8275 relates to an information return for a foreign entity (for example, Form 5471), enter:\nName of foreign entity ▶ \nEmployer identification number, if any ▶ \nReference ID number (see instructions) ▶ \nPart I \nGeneral Information (see instructions) \n(a) \nRev. Rul., Rev. Proc., etc. \n(b) \nItem or Group \nof Items \n(c) \nDetailed Description \nof Items \n(d) \nForm or \nSchedule \n(e) \nLine \nNo. \n(f) \nAmount \n1 \n2 \n3 \n4 \n5 \n6 \nPart II \nDetailed Explanation (see instructions) \n1 \n2 \n3 \n4 \n5 \n6 \nPart III \nInformation About Pass-Through Entity. To be completed by partners, shareholders, beneficiaries, or \nresidual interest holders. \nComplete this part only if you are making adequate disclosure for a pass-through item. \nNote: A pass-through entity is a partnership, S corporation, estate, trust, regulated investment company (RIC), real estate investment \ntrust (REIT), or real estate mortgage investment conduit (REMIC). \n1 Name, address, and ZIP code of pass-through entity \n2 Identifying number of pass-through entity \n3 Tax year of pass-through entity \n/ \n/\nto \n/ \n/ \n4 Internal Revenue Service Center where the pass-through entity filed \nits return \nFor Paperwork Reduction Act Notice, see separate instructions. \nCat. No. 61935M \nForm 8275 (Rev. 8-2013) \n",
"Form 8275 (Rev. 8-2013) \nPage 2 \nPart IV \nExplanations (continued from Parts I and/or II) \nForm 8275 (Rev. 8-2013) \n"
] |
f8275r.pdf
|
0813 Form 8275-R (PDF)
|
https://www.irs.gov/pub/irs-pdf/f8275r.pdf
|
[
"Form 8275-R\n(Rev. August 2013)\nDepartment of the Treasury \nInternal Revenue Service\nRegulation Disclosure Statement\nUse this form only to disclose items or positions that are contrary to Treasury \nregulations. For other disclosures, use Form 8275, Disclosure Statement.\n▶ Information about Form 8275-R and its separate instructions is at www.irs.gov/form8275. \n▶ Attach to your tax return.\nOMB No. 1545-0889\nAttachment \nSequence No. 92A\nName(s) shown on return\nIdentifying number shown on return\nIf Form 8275-R relates to an information return for a foreign entity (for example, Form 5471), enter:\nName of foreign entity ▶ \nEmployer identification number, if any ▶ \nReference ID number (see instructions) ▶ \nPart I\nGeneral Information (see instructions)\n(a) \nRegulation Section\n(b) \nItem or Group \nof Items\n(c) \nDetailed Description \nof Items\n(d) \nForm or \nSchedule\n(e) \nLine \nNo.\n(f) \nAmount\n1\n2\n3\n4\n5\n6\nPart II\nDetailed Explanation (see instructions)\n1\n2\n3\n4\n5\n6\nPart III\nInformation About Pass-Through Entity. To be completed by partners, shareholders, beneficiaries, \nor residual interest holders.\nComplete this part only if you are making adequate disclosure for a pass-through item.\nNote: A pass-through entity is a partnership, S corporation, estate, trust, regulated investment company (RIC), real estate investment \ntrust (REIT), or real estate mortgage investment conduit (REMIC).\n1 \nName, address, and ZIP code of pass-through entity\n2 Identifying number of pass-through entity\n3 Tax year of pass-through entity\n/ \n/\nto \n/ \n/ \n4 Internal Revenue Service Center where the pass-through entity filed \nits return\nFor Paperwork Reduction Act Notice, see separate instructions.\nCat. No. 14594X\nForm 8275-R (Rev. 8-2013)\n",
"Form 8275-R (Rev. 8-2013)\nPage 2\nPart IV\nExplanations (continued from Parts I and/or II)\nForm 8275-R (Rev. 8-2013)\n"
] |
f990bl.pdf
|
1213 Form 990-BL (PDF)
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https://www.irs.gov/pub/irs-pdf/f990bl.pdf
|
[
"Form 990-BL\n(Rev. December 2013) \nDepartment of the Treasury \nInternal Revenue Service \nInformation and Initial Excise Tax Return for Black \nLung Benefit Trusts and Certain Related Persons \nUnder section 501(c)(21) of the Internal Revenue Code.\n▶ Information about Form 990-BL and its instructions is available at www.irs.gov/form990bl.\nOMB No. 1545-0049 \nFor calendar year \n, or fiscal year beginning \n, \n, and ending \n, \nName of trust \nEmployer identification number (EIN) of trust \nName of other person filing return \nSocial security number (SSN) or EIN of other filer \nNumber, street, and room or suite no. (If a P.O. box, see instructions.) \nIf application pending, check here\n.\n. ▶\nIf address changed, check here\n.\n.\n. ▶\nCity or town, state or province, country, ZIP or foreign postal code \nFMV of assets at beginning \nof operator’s tax year\n. ▶\nReturn filed by (check box that applies): \nTrust (Open for public inspection—other than Part IV) \nTrustee (Not open for public inspection) \nDisqualified person (Not open for public inspection) \nPart I \nAnalysis of Revenue and Expenses \nRevenue \n1 \nContributions received\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1 \n2 \nInvestment income: \na Interest on certain securities of the U.S., state, and local governments\n.\n.\n.\n.\n.\n.\n.\n2a \nb Interest on time or demand deposits in a bank or insured credit union (described in\nsection 501(c)(21)(D)(ii)(III)) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2b \nc Gross amount received from sale of assets\n.\n.\n.\n.\n.\n.\n.\n.\nLess cost or other basis and sales expenses .\n.\n.\n.\n.\n.\n.\n.\n \nNet gain or (loss) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n2c \nd Other income (attach schedule)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n2d \n3 \nTotal revenue (add lines 1 through 2d) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n ▶\n3 \nExpenses \n4 \nContributions to the Federal Black Lung Disability Trust Fund\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n4 \n5 \nPremiums for insurance to cover liabilities described in section 501(c)(21)(A)(i)(I) and \n501(c)(21)(A)(i)(IV) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5 \n6 \nOther payments to or for benefit of eligible coal miners, retired miners, or beneficiaries .\n.\n6 \n7 \nCompensation of trustees .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7 \n8 \nOther salaries and wages\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n8 \n9 \nAdministrative expenses not included on lines 7 and 8 (attach schedule) .\n.\n.\n.\n.\n.\n.\n9 \n10 \nOther expenses (attach schedule)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n10 \n11 \nTotal expenses (add lines 4 through 10) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n11 \n12 \nExcess of revenue over expenses (subtract line 11 from line 3) .\n.\n.\n.\n.\n.\n.\n.\n ▶\n12 \nPart II \nBalance Sheets \nBeginning of year \nEnd of year \nAssets \n13 \nCash .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n13 \n14 \nSavings and interest-bearing accounts .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n14 \n15 \nInvestments in approved securities .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n15 \n16 \nOffice supplies and equipment\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n16 \n17 \nOther assets (attach schedule) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n17 \n18 \nTotal assets (add lines 13 through 17)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶\n18 \nLiabilities \nand \nNet Assets \n19 \nLiabilities (see instructions) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n \n19 \n20 \nNet assets\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n20 \n21 \nTotal liabilities and net assets (add lines 19 and 20) .\n.\n.\n.\n.\n. ▶\n21 \nThe books are in care of ▶\nTelephone number ▶\nLocated at ▶\nUnder penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, \nand complete. Declaration of preparer (other than officer or trustee) is based on all information of which preparer has any knowledge. \nSign \nHere \n▲\nSignature of officer or trustee\nDate \n▲\nType or print name and title\nPaid \nPreparer \nUse Only\nPrint/Type preparer’s name\nPreparer's signature\nDate\nCheck if \nself-employed\nPTIN\nFirm’s name ▶\nFirm's EIN ▶\nFirm's address ▶\nPhone no.\nMay the IRS discuss this return with the preparer shown above? (see instructions) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\nFor Privacy Act and Paperwork Reduction Act Notice, see separate instructions. \nCat. No. 10315Y \nForm 990-BL (Rev. 12-2013) \n",
"Form 990-BL (Rev. 12-2013) \nPage 2 \nPart III \nQuestionnaire \nYes No \n22 \nHave you made any changes not previously reported to the Internal Revenue Service in your governing instrument, \nor other similar instrument? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n23 \nIf “Yes,” attach a conformed copy of the changes. \nTaxes on self-dealing (section 4951): \na During the year did the trust (either directly or indirectly): \n(1) Engage in the sale, exchange, or leasing of property with a disqualified person?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n(2) Borrow or lend money or otherwise extend credit to (or accept it from) a disqualified person? .\n.\n.\n.\n.\n. \n(3) Furnish goods, services, or facilities to (or accept them from) a disqualified person? .\n.\n.\n.\n.\n.\n.\n.\n. \n(4) Pay compensation to, or pay or reimburse expenses of, a disqualified person? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n(5) Transfer any income or assets to, or for use by or for the benefit of, a disqualified person? .\n.\n.\n.\n.\n.\n. \nb If the answer is “Yes” to any of questions 23a(1) through 23a(5), were all of the acts in which you engaged \nexcepted acts as described in the instructions?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nc If the answer is “No” to question 23b, complete Schedule A (Form 990-BL), Part I, Section A. \n24 \nTaxes on taxable expenditures (section 4952): During the year did you pay, or incur a liability to pay, any amount \nfor any purpose other than for payment of: (1) black lung benefits, (2) administrative expenses of the trust, \n(3) premiums for insurance covering liabilities for black lung benefits, (4) permitted benefits for retired miners, \ntheir spouses, and dependents, (5) permitted investments of trust funds, (6) transfer of funds to the Federal \nBlack Lung Disability Fund or to the general fund of the U.S. Treasury, or (7) return of excess contributions to \nthe coal mine operator who contributed them?.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nIf the answer is “Yes,” complete Schedule A, Form 990-BL, Part I, Section B. \n25 \nHave you taken corrective action for any transaction that resulted in Chapter 42 taxes being reported on Schedule \nA, Form 990-BL?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nIf “Yes,” attach a detailed documentation and description of the corrective action taken and, if applicable, enter \nthe fair market value of any property recovered as a result of the correction. ▶\n$ \nFor any uncorrected acts, attach explanation (see instructions). \n26 \nOfficers, directors, trustees and their compensation, if any, for the tax year: \n(a) \nName and Address \n(b) \nTitle and time \ndevoted to position \n(c) Contributions \nto employee benefit \nplans \n(d) \nExpense \naccount, other \nallowances \n(e) \nCompensation \n(If not paid, \nenter zero.) \nTotal .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶\nPart IV \nStatement With Respect to Contributors, etc. — (Not open for public inspection) \n1 \nPersons who contributed $5,000 or more in the taxable year (if more space is needed, attach schedule): \nName \nAddress \n2 \nDuring the period covered by this return did the trust receive any contributions in excess of the maximum \nallowable deduction for the contributor under section 192?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \nYes No \nForm 990-BL (Rev. 12-2013) \n",
"Form 990-BL (Rev. 12-2013) \nPage 3 \nSchedule A—Initial Excise Taxes on Black Lung Benefit Trusts and Certain Related Persons \nUnder sections 4951 and 4952 of the Internal Revenue Code \nNOT OPEN FOR PUBLIC INSPECTION \nFor the calendar year \n, or fiscal year beginning \n, \n, and ending \n, \nName of trust/person filing return (see instructions) \nName of related section 501(c)(21) trust (if applicable) \nEIN or SSN of filer (see instructions) \nReturn filed by (see instructions, check box that applies): \nTrust \nTrustee \nDisqualified person \nPart I \nInitial Taxes on Self-dealing (Section 4951) and Taxable Expenditures (Section 4952) \nSECTION A—Acts of Self-dealing and Tax Computation (Section 4951) \n(a) Act \nnumber \n(b) Date of act \n(c) Description of act \n1 \n2 \n3 \n4 \n(d) Names of disqualified persons liable for tax \n(e) Names of trustees liable for tax \n(f) Amount involved in act \n(g) Initial tax on self-dealing disqualified person \n(10% of column (f)) \n(h) Tax on trustee (if applicable) \n(2½% of column (f)) \nTotal (add lines 1 through 4, \ncolumns (g) and (h)) .\n.\n.\n.\n.\n. ▶\nSECTION B—Taxable Expenditures and Tax Computation (Section 4952) \n(a) Item \nnumber \n(b) Amount \n(c) Date paid \nor incurred \n(d) Name and address of recipient \n(e) Description of expenditure and \npurposes for which made \n1 \n2 \n3 \n4 \n(f) Names of trustees liable for tax \n(g) Tax imposed on trust \n(10% of column (b)) \n(h) Tax imposed on \ntrustee (if applicable) \n(2½% of column (b)) \nTotal (Add lines 1 through 4, columns (g) and (h))\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n ▶\nPart II \nSummary of Taxes \n1 \nEnter amount of section 4951 tax on disqualified person from Part I, Section A, column (g) \n1 \n2 \nEnter amount of section 4951 tax on trustee from Part I, Section A, column (h) .\n.\n.\n.\n.\n.\n2 \n3 \nEnter amount of section 4952 tax on trust from Part I, Section B, column (g) .\n.\n.\n.\n.\n.\n. \n3 \n4 \nEnter amount of section 4952 tax on trustee from Part I, Section B, column (h) .\n.\n.\n.\n.\n.\n4 \n5 \nTotal tax due (add lines 1 through 4) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶\n5 \nForm 990-BL (Rev. 12-2013) \n"
] |
f2063.pdf
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0913 Form 2063 (PDF)
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https://www.irs.gov/pub/irs-pdf/f2063.pdf
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[
"Form 2063 \n(Rev. September 2013) \nDepartment of the Treasury \nInternal Revenue Service \nU.S. Departing Alien Income Tax Statement \nFor a Resident Alien Against Whom a Termination Assessment Has Not Been Made or \nfor a Nonresident Alien Having No Taxable Income From United States Sources \n▶ Information about Form 2063 is available at www.irs.gov/form2063.\nOMB No. 1545-0138 \n1 Name (please print or type)\nSocial security number or ITIN, if any \n2 U.S. address (number, street, apt. no. or rural route, city, state, and ZIP code) \n3 Foreign address (street address, city or town, state or province, country, and ZIP or foreign postal code) \n4 Tax year\n5 While in the U.S., check if you were: \nAn employee \nSelf-employed \n6 Of what country are you a citizen or subject? \n7 Passport or alien registration \n card number \n8 Date of departure \n(MM/DD/YYYY)\n9 Original date of your entry into the U.S. \n(MM/DD/YYYY)\n10 Date on which you last arrived in the U.S. (MM/DD/YYYY)\n11 Are you a resident alien \nof the U.S.? \nYes\nNo\nIf “No,” enter the country of which you are a resident ▶\nCat. No. 21420Y \nAnnual Certificate of Compliance \n(IRS Form 2063) \nThis certifies that \nhas satisfied all United States of America income tax obliga- \ntions with respect to income received or to be received for \nthe tax year ended \n, \n, \ndetermined to the extent practicable, based on all information \navailable to me on this date. \n(Field Assistance Area Director) \nInternal Revenue Service \nBy \n(Name and title) \nArea Director’s Stamp \nFor Privacy Act and Paperwork Reduction Act Notice, see back of form. \n",
"12a \nDid you receive or do you expect to receive any income subject to U.S. income tax for the tax year shown on \nline 4 on the front of this form? If “Yes,” complete 12b and 12c. If “No,” go to line 13 \n.\n.\n.\n.\n.\n.\n. \nYes\nNo\nb \nWas U.S. income tax withheld? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\nc \nDid you make any estimated income tax payments? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\n13a \nDid you receive any income subject to U.S. income tax during the prior tax year? If “Yes,” complete \n13b and 13c .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nYes\nNo\nb \nU.S. address shown on the income tax return you filed for that year: \nc (1) Year \n(2) Taxable income \n(3) Tax paid \n(4) Balance due \n14 \nAre you liable for filing tax returns or paying taxes to the United States for any prior year not shown above? .\nYes\nNo\nDeclaration. Under penalties of perjury, I declare that I have examined the above statements, and to the best of my knowledge and belief, they are true,\ncorrect, and complete. \nSign \nHere \n▲\nSignature of departing alien \nDate \nIMPORTANT \nPlease keep this certificate \nwith your passport \nPrivacy Act and Paperwork Reduction Act Notice. We ask for the information on \nthis form to carry out the Internal Revenue laws of the United States. Internal \nRevenue Code sections 6001, 6011, 6012(a), 6109, and 6851, and their regulations \nrequire that you give us the information, including your identifying number(s). \nRoutine uses of this information include giving it to the Department of Justice for \ncivil and criminal litigation and to cities, states, the District of Columbia, and U.S. \ncommonwealths or possessions to carry out their tax laws. We may also disclose \nthis information to other countries under a tax treaty, to federal and state agencies \nto enforce federal nontax criminal laws, or to federal law enforcement and \nintelligence agencies to combat terrorism. If you do not give us the information \nasked for, or provide false or incomplete information, you may be subject to \npenalties.\nYou are not required to provide the information requested on a form that \nis subject to the Paperwork Reduction Act unless the form displays a valid \nOMB control number. Books or records relating to a form or its instructions \nmust be retained as long as their contents may become material in the \nadministration of any Internal Revenue law. Generally, tax returns and \nreturn information are confidential, as required by Code section 6103. \nThe time needed to complete and file this form will vary depending on individual \ncircumstances. The estimated average time is: Recordkeeping, 6 min.; Learning \nabout the law or the form, 3 min.; Preparing the form, 26 min.; Copying, \nassembling, and sending the form to the IRS, 13 min. If you have comments \nconcerning the accuracy of these time estimates or suggestions for making this \nform simpler, we would be happy to hear from you. You can send us comments \nfrom www.irs.gov/formspubs/. Click on “More Information” and then on “Comment \non Tax Forms and Publications.” You can write to the Internal Revenue Service, \nTax Forms and Publications, SE:W:CAR:MP:TFP, 1111 Constitution Ave. NW, \nIR-6526, Washington, DC 20224. Do not send your tax return or this form to this \naddress. \n"
] |
f8596a.pdf
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0813 Form 8596-A (PDF)
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https://www.irs.gov/pub/irs-pdf/f8596a.pdf
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[
"Form 8596-A \n(Rev. August 2013) \nInternal Revenue Service \nDepartment of the Treasury \nQuarterly Transmittal of Information Returns \nfor Federal Contracts\nAttach \nForm(s) 8596\n1 Name of Federal executive agency\n2 Employer identification number\n3a Name and address of person IRS can contact to request a tax offset\n3b Title of person listed in 3a\n4 Quarter ending\n5 Number of Forms 8596 transmitted\nUnder penalties of perjury, I declare that I have examined this return and accompanying documents, that they are prepared pursuant \nto the requirements of section 6050M, and that, to the best of my knowledge and belief, they are compiled from agency records \nmaintained in the normal course of business for the purpose of making a true, correct, and complete return as required by section \n6050M.\nSignature ▶\nTitle ▶\nDate ▶\nInstructions \nFuture developments. For the latest information about \ndevelopments related to Form 8596-A and its instructions, such \nas legislation enacted after they were published, go to \nwww.irs.gov/form8596. \nPurpose of form. Use Form 8596-A to transmit paper Forms \n8596, Information Return for Federal Contracts, to the Internal \nRevenue Service. Prepare only one Form 8596-A to transmit all \nForms 8596 for each quarter.\nWhen to file. The due dates for each quarter are as shown \nbelow. Do not file before the end of the quarter. \nQuarter \nDue Date \nJanuary, February, March \nApril 30 \nApril, May, June \nJuly 31 \nJuly, August, September \nOctober 31 \nOctober, November, December \nJanuary 31 \nIf the regular due date falls on a Saturday, Sunday, or legal \nholiday, file by the next business day.\nWhere to file. File Forms 8596 and 8596-A with Internal \nRevenue Service, Attn: 8596, Enterprise Computing Center at \nMartinsburg, (IRS/ECC-MTB), 230 Murall Drive, P.O. Box 1359, \nKearneysville, West Virginia 25430.\nWho must file. The head of every Federal executive agency or \nhis or her delegate must file Forms 8596 and 8596-A to report \nfederal contracts. For more information, see Form 8596.\nBoxes 1 and 2. Enter the name and employer identification \nnumber (EIN) of the Federal executive agency that entered into \nthe contract. If one central office is responsible for filing for the \nentire agency, use only one name and EIN when filing Forms \n8596 and 8596-A.\nBoxes 3a and 3b. Enter the name, mailing address, and title of \nthe person to whom requests for an offset against any unpaid \ntax liability of the contractor can be sent.\nBox 4. Enter the date the quarter ended. For example, for the \nquarter ending March 31, 2013, enter 03312013; June 30, 2013, \nenter 06302013; September 30, 2013, enter 09302013; \nDecember 31, 2013, enter 12312013.\nBox 5. Enter the number of Forms 8596 being transmitted with \nthis Form 8596-A.\nSignature. The head of the Federal executive agency or his or \nher delegate must sign and date the form.\nSee Form 8596 for additional information.\nCat. No. 12307S\nwww.irs.gov/form8596\nForm 8596-A (Rev. 8-2013) \n"
] |
f14364.pdf
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0813 Form 14364 (PDF)
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https://www.irs.gov/pub/irs-pdf/f14364.pdf
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[
"Catalog Number 59126Z\nForm 14364 (Rev. 8-2013)\nForm 14364 \n(August 2013)\nDepartment of the Treasury - Internal Revenue Service \nContinuing Education Program Evaluation\nOMB Number \n1545-1726\nFull name of CE Provider\nProgram name\nIRS issued Program number\nDate(s) program was completed\nName of participant (optional)\nInstructions: Answer the seven questions below to the best of your ability to evaluate the program you completed. Assign a number \ngrade using a scale from 1 to 5 , with 1 being the lowest and 5 the highest. Provide additional feedback in the comments section below \non program strengths and areas to assist with program improvements. If the question is not applicable, select NA.\n1\n2\n3\n4\n5\nNA\n1. \nWere stated learning objectives met?\n2. \nWere program materials accurate, relevant and did they contribute \nto the achievement of the learning objectives?\n3. \nWas the time allotted to learning adequate?\n4. \nWere the facilities / equipment appropriate?\n5. \nWere the handout materials satisfactory?\n6. \nWere the audio and video materials effective?\n7. \nIf applicable, were individual instructors knowledgeable and effective?\nComments\nPrivacy Act and Paperwork Reduction Notice\nWe ask for the information on this form to carry out the laws of the United States. The primary purpose of this form is to evaluate the \ncontent and delivery of our continuing education programs. We are requesting this information under authority of 26 U.S.C. § 7801 and \n§ 7803 and 31 U.S.C. § 330. We use the information on this form to ensure that we are complying with the continuing education \nprovider requirements in 31 C.F.R. part 10. Providing this information is voluntary, and failure to provide all or part of the information \nwill not affect you. We may disclose this information to a contractor as necessary to perform the contract. \nYou are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form \ndisplays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents \nmay become material in the administration of any Internal Revenue law. The time require to complete this form will vary depending on \nindividual circumstances. The estimated average time is 15 minutes.\n"
] |
p4825.pdf
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0513 Publ 4825 (PDF)
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https://www.irs.gov/pub/irs-pdf/p4825.pdf
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[
"the Taxpayer Advocate Service (TAS)\nwww.TaxpayerAdvocate.irs.gov\n@YourVoiceatIRS\n/YourVoiceatIRS\n/TASNTA\n5\nWe have at least one \nlocal taxpayer advocate \noffice in every state, the \nDistrict of Columbia, and Puerto \nRico. To find your advocate: \n \t • Visit www.irs.gov/advocate; \n \t • Call us toll-free at 1-877-777-4778; \n \n\t • Check your local directory; or\n\t • Look at Pub. 1546, Taxpayer \t \t\n\t \t Advocate Service – Your Voice \t\n\t \t at the IRS, which lists our \n\t \t offices nationwide.\nTAS is here to help you... because when you’re dealing with a tax problem, \nthe worst thing you can do is nothing at all!\n6\nTAS has online resources too. Our \nTax Toolkit can help you understand \nyour rights as a taxpayer and get \nbasic tax information, \ndetails about individual \nand business tax credits, \nand more. Visit the site at \nwww.TaxpayerAdvocate.irs.gov.\n \n7\nWe look for patterns \nin the problems our \nadvocates handle, \nbut also need your \nhelp in identifying large-scale or \nsystemic problems that affect \nmany taxpayers. If you know of \none of these broad issues, tell us \nabout it at www.irs.gov/sams.\n1\nThe Taxpayer Advocate Service \n(TAS) is your voice at the IRS. \nWe are an independent organization \nwithin the IRS. Our mission is \nto help taxpayers resolve \nproblems with the IRS \nand recommend changes \nthat will prevent problems.\n3\nYou may be eligible for our help \nif you’ve tried to resolve your tax \nproblem through normal IRS \nchannels and have gotten nowhere, \nor you believe an IRS \nprocedure just isn’t \nworking as it should.\n4\nIf you’re eligible for our help, \nyou’ll be assigned an advocate, \nwho will be with you at every \nturn. Our service is always free. \n2\n$\nWe help businesses and individuals \nwhose tax problems are causing \nfinancial difficulty. \n",
"Publication 4825 (Rev. 5-2013) Catalog Number 54353K \nDepartment of the Treasury Internal Revenue Service www.irs.gov\n@YourVoiceatIRS\n/YourVoiceatIRS\n/TASNTA\nWE NEED YOUR HELP\ndo you know of a tax problem \nthat affects more than one taxpayer?\nWhen submitting an issue, make sure your email address is accurate. \nIf we need more examples or clarification, a member of our staff will \nsend you his or her phone number via email. Please do not \ninclude any Personally Identifiable Information, such as your \nname, phone number, or Social Security number. Remember \nSAMS is for systemic problems, not personal tax issues. @\n3\nNo Internet access? Use Form 14411, Systemic Advocacy Issue \nSubmission Form. Fax the completed form to (855) 813-7412 or mail to:\n\t\nOffice of Systemic Advocacy\n\t\n1111 Constitution Avenue, NW, Room 3219 \n\t\nWashington, DC 20224 \n2\nhow to report a tax problem\nReport the systemic problem or issue using the \nSystemic Advocacy Management System (SAMS) \nat www.irs.gov/sams; or \n1\nYou can help the Taxpayer Advocate Service (TAS) \ntackle “big picture” or systemic problems in the IRS \nor the tax law by reporting them to us. We are \nlooking for issues that:\n\t •\tAffect multiple taxpayers (if you personally have an unresolved \t\t\n\t \t problem with the IRS, TAS may still be able to help – visit \n\t \t www.TaxpayerAdvocate.irs.gov); \n\t •\tInvolve IRS systems, policies, and procedures; and\n\t •\tInvolve protecting taxpayer rights, reducing burden, ensuring fair \t\n\t \t treatment, or providing essential taxpayer services.\nIRS\n"
] |
p4921.pdf
|
0613 Publ 4921 (PDF)
|
https://www.irs.gov/pub/irs-pdf/p4921.pdf
|
[
"Tax problems \nand nowhere \nto turn?\nTalk to YOUR Taxpayer Advocate\nTAS is an independent organization within the \nIRS. We will do whatever we can to get your \nproblem resolved and will stay with you every \nstep of the way. When you work with TAS, you \nare assigned one advocate who is with you at \nevery turn to:\n• Listen to your tax problem\n• Help you understand what needs to be done\n• Provide free, fair, and independent help\n• Stay with you until your problem is resolved\n• Help you get a little breathing room\n• Be your voice at the IRS\nWe’re easy to contact.\nThere are Taxpayer Advocates in every state, \nthe District of Columbia and Puerto Rico. \nCall toll-free 1-877-777-4778\nVisit www.TaxpayerAdvocate.irs.gov \nWe’ll help you \nfind your way\n.\nPublication 4921 (Rev. 6-2013) Catalog Number 57390R\n Department of the Treasury Internal Revenue Service www.irs.gov\n@YourVoiceatIRS\n/YourVoiceatIRS\n/TASNTA\n",
"Most people are a little nervous, \nconfused or scared when they have an \nIRS problem. One thing is for sure —\navoiding the problem will only make \nit worse. That’s why it’s good to know about \nthe Taxpayer Advocate Service (TAS). \nWe are your voice at the IRS. \nAnd if you haven’t been able to resolve \nyour IRS tax problem on your own, \nwe can offer free, fair, and \nindependent help. \nGo to \nwww.TaxpayerAdvocate.irs.gov.\nThree Steps to Success\nStep One: As a taxpayer, the first thing you should \nknow is that you have rights that the IRS must \nrespect. Visit www.TaxpayerAdvocate.irs.gov to learn \nabout your rights. \nStep Two: When you have a tax difficulty with the \nIRS, you should contact the IRS and try to work through \nthe issue. \nStep Three: When you haven’t been able to resolve \nyour problem, that’s when you should come to TAS. \nThe worst thing \nyou can do is \nnothing at all.\nHOW WE CAN WORK FOR YOU\nIf you:\nTas can help you:\nWork out a payment plan or \nother collection alternatives.\nAre facing financial \ndifficulties or hardship \nbecause of your \nproblem with the IRS.\nBy assigning one person to \nlisten to you and work with \nyou until your case is resolved.\nAre being passed along \nfrom person to person and \nfeel that no one at the IRS \nis really listening to you.\nMake sure the right people \nhear your case, and act upon it.\nHave tried repeatedly to \ncontact the IRS, but no \none has responded. \nWork with the IRS to obtain \nrelief from your crisis.\nAre facing (or your business \nis facing) an immediate \nthreat of adverse action.\n"
] |
p5074.pdf
|
0213 Publ 5074 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5074.pdf
|
[
"Protect your tax refund\nTAX RETURN FRAUD can happen when a tax preparer changes \ninformation on your return without you knowing. You might lose \nsome or all of your refund, and working with the IRS to resolve \nthe issue could take months.\nProtect yourself by making sure your tax preparer signs your tax \nreturn and gives you a copy.\nGet a signed copy of your tax \nreturn from your tax preparer.\nwww.TaxpayerAdvocate.irs.gov\nPublication 5074 (2-2013) Catalog Number 61771C Department of the Treasury Internal Revenue Service www.irs.gov\n"
] |
p5059sp.pdf
|
0513 Publ 5059 (SP) (PDF)
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https://www.irs.gov/pub/irs-pdf/p5059sp.pdf
|
[
"Publication 5059 (SP) (5-2013) Catalog Number 62809Z Department of the Treasury – Internal Revenue Service www.irs.gov\nCómo preparar la \nInformación de Cobro para los Negocios (Formulario 433-B(SP))\n¿Quién debe usar el Formulario 433-B (SP)?\nGeneralmente se usa el Formulario 433-B (SP) para obtener la \ninformación financiera actual que se necesita, para determinar \ncómo el negocio pueda liquidar una deuda tributaria pendiente.\nLas siguientes entidades de negocios deben completar el \nFormulario 433-B (SP):\n• Sociedades colectivas\n• Sociedades anónimas\n• Organizaciones exentas\n• Sociedades anónimas de tipo S\n• Compañías de responsabilidad limitada (LLC por sus siglas \nen inglés), que tienen la clasificación de sociedad anónima\n• Los demás compañías de responsabilidad limitada\nSección 1\nInformación del Negocio\nResponda a los números 1 a 6. Para el 4 y 5, incluya la \ninformación de comercio y cuentas electrónicos, tales como \nPayPal o Paymate. Responda a todas las preguntas en esta \nsección o anote N/A (no aplica) si una pregunta no le aplica a \nusted. Adjunte hojas adicionales si necesita espacio adicional \npara contestar completamente cualquier pregunta. \nSección 2\nPersonal y los Contactos del Negocio\nAnote la información para toda persona responsable de cobrar, \npagar y depositar el impuesto retenido sobre los ingresos y de \nla nómina; o de pagar los impuestos de uso y consumo que se \nhayan recaudado. Dichas personas podrían ser funcionarios, \nempleados, socios, accionistas mayores, etcétera. Adjunte \nhojas adicionales si necesita espacio adicional para contestar \ncompletamente cualquier pregunta. \nSección 3\nOtra Información Financiera\nResponda a los números 8 a 15 y adjunte una copia de todo \ndocumento aplicable. Responda a todas las preguntas en esta \nsección o anote N/A (no aplica) si una pregunta no le aplica a \nusted. Adjunte hojas adicionales si necesita espacio adicional \npara contestar completamente cualquier pregunta. \nSección 4\nInformación de la Responsabilidad y \nActivos del Negocio\nNúmero 16 – Dinero en Efectivo Disponible\nAnote la cantidad de dinero en efectivo que tenga disponible. \nEsto incluye dinero en efectivo guardado en una caja fuerte, la \ncaja de cobros y caja chica.\nSi el negocio tiene una caja fuerte, especifique su contenido. \nNúmero 17 – Cuentas Bancarias del Negocio\nAnote toda cuenta que tenga, aún si no tiene saldo por el \nmomento. Incluya cuentas bancarias electrónicas, cuentas del \nmercado de valores, cuentas de ahorro, cuentas de cheques, \ncuentas de pago móviles y reservas de tarjetas de valores \ntales como nómina en tarjeta y las tarjetas de beneficio \ngubernamentales. Además, enumere toda caja de seguridad \nbancaria, su lugar, número y valor. Adjunte una lista de su \ncontenido. No anote préstamos bancarios. \nNúmero 18 – Cuentas/Pagarés por Cobrar\nAnote el nombre, dirección y número de teléfono de la \ncuenta/pagaré por cobrar. Incluya cuentas electrónicas de \npago y compañías de factoraje, además de cualquier cambio \n(trueque) de mercancías o cuentas de subasta electrónicas. \nIncluya los Contratos Gubernamentales. Enumere cada \ncontrato por separado, incluyendo los contratos que se han \notorgado, pero que no han comenzado. Adjunte hojas \nadicionales si necesita espacio adicional. \nNúmero 19 – Inversiones\nAnote toda inversión, incluyendo acciones, bonos, fondos \nmutuos, opciones de compra de acciones, certificados de \ndepósito y materias primas, tales como, oro, plata, cobre, \netcétera.\nNúmero 20 – Crédito Disponible \nAnote todas las líneas de crédito y tarjetas de crédito emitidas \npor el banco, banco unión de crédito o banco de ahorros y \npréstamos (MasterCard, Visa, protección del sobregiro, \netcétera). \nNúmeros 21, 22 y 23 – Bienes Inmuebles, Vehículos y \nEquipo del Negocio y Activos Intangibles\nValor Justo del Mercado Actual – Anote la cantidad por la \ncual podría vender el artículo hoy.\nFecha del Último Pago – Anote la fecha que el préstamo o \narrendamiento estará liquidado por completo. \nNúmero 21 – Bienes Inmuebles\nAnote los lugares de toda propiedad de que el negocio es \ndueño, arrienda o está comprando. Si el negocio arrienda o \nalquila, anote el nombre del arrendador o propietario. Si el \nnegocio está comprando, anote el nombre del prestamista. \nAdjunte hojas adicionales si necesita espacio adicional.\nNúmero 22 – Vehículos Arrendados y Comprados \nAnote todo vehículo de que el negocio es dueño o arrienda \n(automóviles, barcos, vehículos de recreación (RV), \nmotocicletas, vehículos todo-terreno y off-road, tráilers, \nviviendas móviles, etcétera). Si el negocio arrienda, anote el \nnombre del arrendador. Si el negocio está comprando, anote el \nnombre del prestamista. Adjunte hojas adicionales si necesita \nespacio adicional.\n",
"Publication 5059 (SP) (5-2013) Catalog Number 62809Z Department of the Treasury – Internal Revenue Service www.irs.gov\nNúmero 23 – Equipo del Negocio y Activos Intangibles \nAnote toda maquinaria, equipo, inventario de mercancías y \notros activos en las casillas 23a a la 23d. Anote los activos \nintangibles en las casillas 23e a la 23g. Los activos intangibles \nincluyen licencias, patentes, logos, nombres de dominio, \nmarcas registradas, derechos de autor, software, concesiones \nmineras, gestos de buena voluntad y secretos del negocio. \nAdjunte hojas adicionales si necesita espacio adicional.\nNúmero 24 – Obligaciones del Negocio\nAnote los pagarés y sentencias judiciales que no se habían \nincluido anteriormente en este formulario (por ejemplo, si el \nequipo fue conseguido con un pagaré y se incluyó dicho \npagaré en el número 23, no lo incluya en el número 24). \nSección 5\nInforme de Ingresos/Gastos Mensuales del \nNegocio\nIdentifique un período de tiempo que demuestra los ingresos y \ngastos típicos de su negocio (ejemplos: 3, 6, 9 ó 12 meses). \nComplete el informe de ingresos/gastos mensuales por el \nperíodo de tiempo indicado. La información de su negocio \ndebe concordar con la declaración de ganancias y pérdidas \ndel negocio. \nNo escriba en las líneas 47, 48 y 49 (son para el uso exclusivo \ndel IRS)\nTotal de Ingresos Mensuales del Negocio\nNúmero 25 – Ingreso Bruto de las Ventas/Servicios\nAnote la cantidad de dinero que el negocio recibió de toda \nfuente a cambio de los artículos que vendió o servicios que \nprestó. Esta cifra es el total, antes de restar los costos o \ngastos. \nNúmero 26 – Ingreso Bruto de Alquiler\nAnote la cantidad bruta de alquiler, que representa los pagos \nrecibidos por el uso de los activos del negocio y pueden ser en \nforma de dinero, servicios, activos, trueque o cualquier \ncombinación de éstos. \nNúmero 27- Ingreso de Intereses\nAnote la cantidad de intereses que el negocio recibió de \npréstamos, pagarés, hipotecas, bonos, depósitos bancarios, \nreembolsos de impuestos, etcétera.\nNúmero 28 – Dividendos\nAnote la cantidad de dividendos que el negocio recibió de \nfuentes estadounidenses y extranjeras.\nNúmero 29 – Dinero en Efectivo \nIncluya el dinero en efectivo que se recibió de clientes y que \nno se incluyó en los ingresos en las líneas 25 a 28.\nNúmeros 30-34 – Otros Ingresos\nOtros ingresos, son artículos que no encajan en ninguna de \nlas categorías específicas del Formulario 433-B (SP), o \nenumerados en otros ingresos en la declaración de impuestos \ndel negocio.\nPor ejemplo:\n• Una compañía de construcción, puede tener ingresos de \nmateriales de desechos de construcción.\n• Un bufete de abogados, puede tener ingresos de \nhonorarios por referencias\n• Una sociedad anónima profesional médica, puede tener \ningresos por servir como testigo experto en un juicio. \nTotal de los Gastos Mensuales del Negocio\nAnote el total de los gastos mensuales del negocio. Los gastos \npermitidos son el costo de llevar a cabo un negocio o \ncomercio. Generalmente, deben ser necesarios para la \noperación del negocio. No incluya gastos que “no sean en \nefectivo”, tales como la depreciación, deudas incobrables o \ndesgasto. No se pueden deducir los intereses como un gasto \nseparado, si ya se incluyeron en algún pago a plazos \npermitido. \nDocumentos adjuntos requeridos\nAdjunte hojas adicionales si necesita espacio adicional para \ncontestar completamente cualquier pregunta. Puede que le \npidan proveer verificación adicional, después de que nosotros \nrevisemos el Formulario 433-B (SP) debidamente completado. \nLínea de Firma para la Certificación\nEl socio, funcionario de la sociedad anónima o miembro de la \ncompañía de responsabilidad limitada, debe firmar el \nFormulario 433-B (SP), Información de Cobro para los \nNegocios, bajo pena de perjurio. La firma certifica que la \ninformación es verídica y completa. Cualquier cambio \nefectuado después de firmar el formulario debe ser firmado \ncon las iniciales y fechado. \nDistribuciones de Negocios\nLas distribuciones de las sociedades colectivas y sociedades \nanónimas de tipo S, declaradas en el Anexo K-1 y de las \ncompañías de responsabilidad limitadas declaradas en los \nAnexos C, D ó E del Formulario 1040, deben incluirse en el \ntotal de las distribuciones en la línea 25, de la página 4 del \nFormulario 433-A (SP), Información de Cobro Para los \nAsalariados y Trabajadores por Cuenta Propia.\n"
] |
f14414.pdf
|
1012 Form 14414 (PDF)
|
https://www.irs.gov/pub/irs-pdf/f14414.pdf
|
[
"Catalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\nForm 14414 \n(October 2012)\nDepartment of the Treasury - Internal Revenue Service\nGroup Rulings Questionnaire\nOMB Number \n1545-2071 \nThis questionnaire asks for information concerning your organization’s group exemption ruling, including your relationship with your \nsubordinates and the manner in which you and your subordinates satisfy applicable Form 990-series filing requirements. The \nquestionnaire asks about a range of practices that some group ruling holders engage in with their subordinates. Some questions may \nnot be applicable to your organization. If a question does not apply to your organization, answer “N/A” (not applicable).\nPart I - Information About Your Organization\nName of organization\nEmployer Identification Number (EIN)\nOrganization’s website address (URL)\nGroup exemption number\nFull name and title of person completing this form\nContact phone number\n1. Indicate under which section of the Internal Revenue Code you are tax exempt\nSection 501(c)(3)\nSection 501(c)(4)\nSection 501(c)(5)\nSection 501(c)(6)\nSection 501(c)(7)\nSection 501(c)(8)\nSection 501(c)(9)\nSection 501(c)(10)\nSection 501(c)(14)\nSection 501(c)(19)\nDon’t know\nOther (describe)\n2. If you selected section 501(c)(3) in question 1, indicate your private foundation or public charity classification from the list below. \nSkip to question 5 if you did not select section 501(c)(3) in question 1\nSection 509(a)(1)\nSection 509(a)(2)\nSection 509(a)(3)\nSection 509(a)(4)\nPrivate foundation\nDon’t know\nOther (describe)\n3. If you selected section 509(a)(1) in question 2, indicate the subsection under which you qualify below. Skip to question 4 if you did \nnot select section 509(a)(1) in question 2\nSection 170(b)(1)(A)(i)\nSection 170(b)(1)(A)(ii)\nSection 170(b)(1)(A)(iii)\nSection 170(b)(1)(A)(iv)\nSection 170(b)(1)(A)(v)\nSection 170(b)(1)(A)(vi)\nDon’t know\n4. If you selected section 509(a)(3) in question 2, indicate the type of status that applies to your organization below. Skip to question 5 \nif you did not select section 509(a)(3) in question 2\nType I \nType II\nType III (Functionally Integrated)\nType III (Non-Functionally Integrated)\nDon’t know\n5. Has your tax-exempt status ever been revoked based on an examination\nYes\nNo\nDon’t know\na. If \"yes\" to question 5, provide the date your tax-exempt status was revoked in the format MM/DD/YYYY, for example 06/01/2009 \n(for June 1, 2009). If you don’t know the exact date your organization was revoked, write “Don’t know”\nDate (MM/DD/YYYY)\n6. Has your tax-exempt status ever been automatically revoked for not filing a required return (Form 990-series) or notice (Form 990-N) \nfor three consecutive years\nYes\nNo\na. If \"yes\" to question 6, provide the date that your tax-exempt status was revoked in the format MM/DD/YYYY, for example \n11/15/2010 (for November 15, 2010). The date should be no earlier than 05/15/2010\nDate (MM/DD/YYYY)\n",
"Page 2 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\nPart II - Information About Your Subordinates\n7. Do you currently have any subordinates in your group exemption ruling (hereafter “group”)\nYes\nNo\na. If “yes” to question 7, how many subordinates are currently in your group? The response needs to be in numeric format\n8. Indicate under which section(s) of the Internal Revenue Code your subordinates are tax exempt. Check all that apply\nSection 501(c)(3)\nSection 501(c)(4)\nSection 501(c)(5)\nSection 501(c)(6)\nSection 501(c)(7)\nSection 501(c)(8)\nSection 501(c)(9)\nSection 501(c)(10)\nSection 501(c)(14)\nSection 501(c)(19)\nDon’t know\nOther (describe)\n9. If you selected Section 501(c)(3) in question 8, indicate the types of foundation or public charity classifications that are represented \nby your subordinates. Check all that apply. Skip to question 12 if you did not select section 501(c)(3) in question 8\nSection 509(a)(1)\nOther (describe)\nDon’t know\nPrivate foundation\nSection 509(a)(4)\nSection 509(a)(3)\nSection 509(a)(2)\n10. If you selected section 509(a)(1) in question 9, choose the subsection under which your subordinates qualify below. Check all that \napply. Skip to question 11 if you did not select section 509(a)(1) in question 9\nSection 170(b)(1)(A)(i)\nSection 170(b)(1)(A)(ii)\nSection 170(b)(1)(A)(iii)\nSection 170(b)(1)(A)(iv)\nSection 170(b)(1)(A)(v)\nSection 170(b)(1)(A)(vi)\nDon’t know\n11. If you selected section 509(a)(3) in question 9, choose the type of status that applies to your subordinates below. Check all that \napply. Skip to question 12 if you did not select section 509(a)(3) in question 9\nType I \nType II\nType III (Functionally Integrated)\nType III (Non-Functionally Integrated)\nDon’t know\n12. Are some or all of your subordinates nearly identical to each other in their governance structure, organizational documents and the \ntypes of activities they perform\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n13. Are any of your subordinates organized in a foreign country\nYes\nNo\nDon’t know\na. If \"yes\" to question 13, list the countries in which your subordinates are organized\n14. Do any of your subordinates conduct or support any activities in foreign countries\nYes\nNo\nDon’t know\na. If “yes” to question 14, list the countries in which your subordinates conduct or support activities\n15. Do you have a written contract or agreement with any of your subordinates\nYes\nNo\nDon’t know\na. If \"yes” to question 15, do you have a written contract or agreement with all of your subordinates\nYes\nNo\n16. Do you have a formal, written set of eligibility criteria for a subordinate to be included in and remain in your group\nYes\nNo\nDon’t know\n",
"Page 3 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n17. Do you require subordinates to include specific provisions in their articles, bylaws or other governing instruments before you will add \nthem to your group\nYes\nNo\nDon’t know\n18. Which of the following documents do you require your subordinates to adopt before you will add them to your group? Check all that \napply. Select “N/A” if you do not require your subordinates to adopt any of these documents\nCharter\nArticles of Incorporation/Organization\nBylaws\nConflict of Interest Policy\nN/A\nOther (describe)\n19. When considering whether to add an organization to your group as a subordinate, which of the following do you require the \norganization to give you? Check all that apply. Select “N/A” if you do not require your subordinates to give you any of this \ninformation\nBylaws\nFinancial statement\nArticles of Incorporation/Organization\nMembership list \nPast information return or notice\nDescription of activities\nNames of directors, trustees and officers\nSigned document authorizing inclusion in the group\nCompensation of directors, trustees and officers \nN/A\nOther (describe)\n20. How many of your current subordinates have given you an authorization to be included in your group, signed by a duly authorized \nofficer of each subordinate? Provide an approximate number if exact number is unknown\nDon’t know\n21. Do you require an organization to pay an application or joining fee before you will add it to your group\nYes\nNo\n22. If \"yes\" to question 21, which of the following describes your payment procedure? If “No” to question 21, skip to question 25\nFee is the same for all new subordinates\nFee varies\n23. If you checked \"Fee is the same\" in question 22, indicate the dollar amount you require each new subordinate to pay for joining or \napplying to join your group. Use whole dollar amounts\nEnter amount\n24. If you checked \"Fee varies” in question 22, describe how you determine the application or joining fees\n25. Do you require that all or some of your subordinates pay you annual fees or dues each year\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If \"yes” to question 25, how do you determine the amount(s) of your subordinates' fees or dues? Check all that apply\nFlat fee\nPercent of subordinate membership dues\nPercent of subordinate gross receipts\nOther (describe)\n26. Do you permit an organization to be included in your group if it already has its own determination letter from the Internal Revenue \nService (IRS) recognizing its tax exemption\nYes\nNo\nDon’t know\n27. If an organization has its own determination letter when it joins your group, IRS records will only reflect the subordinate's exemption \nas a part of your group, and not the determination letter it had prior to joining your group. Do you inform the subordinate that its \nindividual determination letter will no longer be effective after it is added to your group\nYes\nNo\nDon’t know\n",
"Page 4 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n28. Is there a person in your organization who has primary responsibility for overseeing the relationship between you and your \nsubordinates\nYes\nNo\nDon’t know\na. If \"yes” to question 28, what is this person’s title\n29. Do you delegate authority to any of your subordinates to supervise other organizations in your group\nYes\nDon’t know\nNo\n30. Do any of your subordinates engage in political campaign intervention\nYes\nNo\nDon’t know\n31. Do any of your subordinates conduct lobbying activities\nYes\nNo\nDon’t know\n32. Do any of your subordinates offer any gaming services to their members or to the public\nYes (members only)\nYes (members and public)\nNo\nDon’t know\n33. Do any of your subordinates offer goods, facilities or services to the public that do not further their tax-exempt purposes\nYes\nNo\nDon’t know\na. If \"yes\" to question 33, briefly describe those activities of your subordinates that do not further their tax-exempt purposes\nPart III - Communication with Your Subordinates\n34. Do you hold in-person meetings with directors, trustees or officers of all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If \"yes\" to question 34, check the option that best describes how often you hold in-person meetings with your subordinates\nLess often than annually\nAnnually\nSemi-annually (twice a year)\nQuarterly\nMonthly\nb. If “yes” to question 34, do you keep minutes of all or some of these meetings\nYes (all meetings)\nYes (more than half of the meetings)\nYes (half or fewer of the meetings)\nNo\nDon't know\n35. Do you hold regular conference calls with the directors, trustees or officers of all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If \"yes\" to question 35, check the option that best describes how often you hold conference calls with your subordinates\nLess often than annually\nAnnually\nSemi-annually (twice a year)\nQuarterly\nMonthly\nb. If “yes” to question 35, do you keep minutes of all or some of these conference calls\nYes (all conference calls)\nYes (more than half of the conference calls)\nYes (half or fewer of the conference calls)\nNo\nDon't know\n36. Do you send a newsletter to all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If \"yes” to question 36, check the option that best describes how often you send a newsletter to your subordinates\nLess often than annually\nAnnually\nSemi-annually (twice a year)\nQuarterly\nMonthly\n",
"Page 5 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n37. Do you communicate with your subordinates through your website\nYes\nNo\nDon’t know\n38. Do you communicate with your subordinates through means other than those described in this Part III\nYes\nNo\na. If \"yes” to question 38, describe the other means through which you communicate with your subordinates\nPart IV - Relationship with Your Subordinates\n39. Do you elect or appoint (or have the right to elect or appoint) one or more of the directors, trustees or officers of all or some of your \nsubordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n40. Do you have one or more overlapping directors, trustees or officers with all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n41. Do one or more of your subordinates elect, nominate or appoint (or have the right to elect, nominate or appoint) one or more of your \ndirectors, trustees or officers\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n42. Do any of your subordinates compensate their directors, trustees or officers\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If “yes” to question 42, what involvement, if any, do you have in the compensation process? Check all that apply\nApprove compensation of subordinates’ directors, trustees or officers\nRequire subordinates to adopt a policy for determining reasonable compensation\nRequire subordinates to provide documentation showing basis for compensation\nReview compensation information on Form 990/990-EZ or reports provided by subordinates\nDo not take any action to ensure reasonableness of compensation\nDon’t know\nOther (describe)\n43. Do you approve or have veto power over the following decisions of all or some of your subordinates? Check one box for each row\nDecision\nYes (all \nsubordinates)\nYes (more than half \nof the subordinates)\nYes (half or fewer of \nthe subordinates)\nNo\nDon't Know\nChanges to Organizing Documents\nAppointment/Removal of Directors\nCompensation of Directors, Trustees, Officers\nSale of Substantial Assets\nTermination\n",
"Page 6 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n44. Describe any other decisions you approve or have veto power over for all or some of your subordinates. If there are no other \ndecisions, indicate “N/A”\n45. Do you require all or some of your subordinates to provide you with copies of all their Form 990-series annual returns or notices \n(Form 990, 990-EZ, 990-N, 990-T or 990-PF) that they file\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n46. Do you require all or some of your subordinates to provide you with copies of their financial statements\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n47. Do you require all or some of your subordinates to provide you a report on their activities\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If \"yes” to question 47, how often do you request a report on activities? Check the option that best describes how often you \nrequest reports on the activities of your subordinates\nLess often than annually\nAnnually\nSemi-annually (twice a year)\nQuarterly\nMonthly\n48. Do you conduct performance reviews of all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If \"yes” to question 48, check the option that best describes how often you conduct performance reviews of your subordinates\nLess often than annually\nAnnually\nSemi-annually (twice a year)\nQuarterly\nMonthly\n49. Do you approve the budgets of all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If \"yes” to question 49, check the option that best describes how often you approve the budgets of your subordinates\nLess often than annually\nAnnually\nSemi-annually (twice a year)\nQuarterly\nMonthly\n50. Do you take any other actions not described in this Part IV, Relationship with Your Subordinates, to exercise general supervision or \ncontrol over your subordinates\nYes\nNo\na. If \"yes\" to question 50, describe any other actions that you take to exercise general supervision or control over your subordinates\nPart V - Services You Provide For Your Subordinates\n51. Do you provide any kind of educational training or materials for all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n",
"Page 7 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n52. Do you provide financial support for all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n53. Do you provide fundraising assistance for all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n54. Do you conduct joint activities with all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\na. If \"yes” to question 54, briefly describe those joint activities\n55. Do you provide administrative services or support for all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\n56. Do you hire an independent outside auditor to review all or some of your subordinates\nYes (all subordinates)\nYes (more than half of the subordinates)\nYes (half or fewer of the subordinates)\nNo\nDon't know\nPart VI - Inclusion of Subordinates in Your Group Exemption Ruling\n57. Have you ever removed a subordinate from your group\nYes\nNo\nDon’t know\na. If \"yes” to question 57, indicate why you removed a subordinate from your group. Check all that apply\nThe subordinate failed to send one or more annual reports to you\nThe subordinate permanently terminated its operations\nThe subordinate temporarily went inactive\nThe subordinate failed to pay fees or annual dues to you\nThe subordinate failed to meet the requirements for tax exemption under the Internal Revenue Code\nThe subordinate didn't meet the criteria for inclusion in your group exemption\nThe subordinate engaged in activities not in compliance with your charter, requirements, governing instruments, etc\nThe subordinate applied for and received recognition of exemption from the IRS\nThe subordinate requested to be removed from the group\nOther (describe)\n58. Do you have written standards or procedures with regard to when a subordinate will be removed from your group\nYes\nNo\nDon’t know\na. If \"yes” to question 58, do you provide these written standards or procedures to your subordinates\nYes\nNo\nDon’t know\n59. Have any of your subordinates ever had their tax-exempt status revoked while a member of your group\nYes\nNo\nDon’t know\na. If \"yes” to question 59, indicate how many were revoked during an examination and how many were automatically revoked for \nnot filing a Form 990-series return or notice for three consecutive years. If no subordinates were revoked in one of these two \ncategories, enter “0” on the applicable line. Write “Don’t know” on the applicable line if you don’t know the number\nRevoked due to examination\nAutomatically revoked for non-filing\n",
"Page 8 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n60. Have you ever added to your group an organization whose tax-exempt status has been revoked (either by examination or for not \nfiling for three consecutive years)\nYes\nNo\nDon’t know\n61. Have you ever added a subordinate back to your group that you previously removed\nYes\nNo\nDon’t know\nPart VII - Form 990-T Filing Information\n62. Have any of your subordinates filed a Form 990-T, Exempt Organization Business Income Tax Return, for tax years 2008, 2009 or \n2010\nYes\nNo\nDon’t know\na. If “yes” to question 62, provide the total number of subordinates in your group, the number that filed a Form 990-T, and for those \nthat filed Form 990-T, the number of subordinates that paid unrelated business income tax for the periods listed below. Provide \napproximate numbers if the exact numbers are not known. If you did not have any subordinates in a particular year, \nenter “N/A” in the column entries for that year\n2010\n2009\n2008\nTotal Number of Subordinates\nNumber Filing Form 990-T\nNumber That Paid Unrelated Business Income Tax\n63. Have you filed a Form 990-T on behalf of one or more of your subordinates for tax years 2008, 2009 or 2010\nYes\nNo\nDon’t know\na. If “yes” to question 63, did you include the subordinate(s) on your own Form 990-T, and/or did you file a group Form 990-T that \nincludes only your subordinate(s)? Check all that apply\nYes (own Form 990-T)\nYes (group Form 990-T)\nDon’t know\nb. If “yes” to question 63, check the year(s) you filed a Form 990-T on behalf of any of your subordinates\nTax Period\nFiled\n2010\n2009\n2008\nPart VIII - Annual Information Returns, Notices, and Group Returns\n64. For the tax years listed below, which types of information returns or notices did you file with the IRS for your own organization? \nCheck all that apply for each row. If you did not file any of these returns for a particular year, check the “N/A” box for that \nrow\nTax Period\nForm 990\nForm 990-EZ\nForm 990-N\nN/A\n2010\n2009\n2008\n65. Have you ever reported information on any of your subordinates’ revenues, expenses, assets, liabilities or activities on your own \nForm 990-series return (not a group return)\nYes\nNo\nDon’t know\n",
"Page 9 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n66. Have you filed a Form 990 group return on behalf of two or more of your subordinates for tax years 2008, 2009 or 2010? If you \nanswer “no” or “don’t know,” skip to question 70\nYes\nNo\nDon’t know\na. If \"yes\" to question 66, provide the total number of subordinates included in your group exemption, the total number included in \nyour Form 990 group return, and the number of subordinates included in that return that had gross receipts greater than or equal \nto $200,000 OR had total assets equal to or greater than $500,000 for the periods listed below \n \nProvide approximate numbers if the exact numbers are not known. If you did NOT file a group return with two or more \nof your subordinates in any of the years below, insert “N/A” in the column entries for that year\n2010\n2009\n2008\nTotal Number of Subordinates\nNumber Included in Your Form 990 Group Return\nNumber of Subordinates with > $200,000 Gross \nReceipts OR Total Assets > $500,000\nb. Have you obtained an EIN (Employer Identification Number), separate from your own EIN, to use to file a group return\nYes\nNo\nDon’t know\nc. Prior to filing a group return, did you obtain a written statement, signed by an officer under penalties of perjury, from each of the \nsubordinates included in the group return that authorized each subordinate's inclusion in the return for the periods listed below? \nSelect one per row\nYear\nYes\nNo\nN/A (Didn’t File Group Return)\n2010\n2009\n2008\nd. Did you file a group return on behalf of some but not all of your subordinates for tax years 2008, 2009 or 2010\nYes\nNo\nDon’t know\ne. If 'Yes' to question 66d, describe the reason(s) why you did not file a group return for all subordinates and the criteria you used to \ndetermine which subordinates to include (or not include) in a group return\n67. Have any of your subordinates that you included in a group return for tax year 2008, 2009 or 2010 separately disclosed to the public \nthe subordinate’s portion of the compensation information reported on the group return\nYes\nNo\nDon’t know\na. If “yes” to question 67, how many of your subordinates separately disclosed to the public the subordinate’s portion of the \ncompensation information reported on the group return? Check one box for each row\nYear\nAll \nsubordinates\nMore than half of \nthe subordinates\nHalf or fewer of \nthe subordinates\nDon't Know\nN/A (no group return filed)\n2010\n2009\n2008\nb. If “yes” to question 67, how did your subordinates disclose the compensation information to the public? Check all that apply\nSubordinate’s website\nAnother’s website\nDon’t know\nOther (describe)\n",
"Page 10 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n68. Have any of your subordinates that you included in a group return for tax year 2008, 2009 or 2010 separately disclosed to the public \nthe subordinate’s portion of the program services information reported on the group return\nYes\nNo\nDon’t know\na. If “yes” to question 68, how many of your subordinates separately disclosed to the public the subordinate’s portion of the program \nservices information reported on the group return? Check one box for each row\nYear\nAll \nsubordinates\nMore than half of \nthe subordinates\nHalf or fewer of \nthe subordinates\nDon't Know\nN/A (no group return filed)\n2010\n2009\n2008\nb. If “yes” to question 68, how did your subordinates disclose the program services information to the public? Check all that apply\nSubordinate’s website\nAnother’s website\nDon’t know\nOther (describe)\n69. Have any of your subordinates that you included in a group return for tax year 2008, 2009 or 2010 separately disclosed to the public \nthe subordinate’s portion of the information on revenue, expenses, assets and liabilities reported on the group return\nYes\nNo\nDon’t know\na. If “yes” to question 69, how many of your subordinates separately disclosed to the public the information on revenue, expenses, \nassets and liabilities reported on the group return? Check one box for each row\nYear\nAll \nsubordinates\nMore than half of \nthe subordinates\nHalf or fewer of \nthe subordinates\nDon't Know\nN/A (no group return filed)\n2010\n2009\n2008\nb. If “yes” to question 69, how did your subordinates disclose the information on revenue, expenses, assets and liabilities to the \npublic? Check all that apply\nSubordinate’s website\nAnother’s website\nDon’t know\nOther (describe)\n70. Do you inform all new subordinates of their annual Form 990-series return or notice filing obligations? Select “N/A” if none of your \nsubordinates have any Form 990-series return or notice filing obligations\nYes\nNo\nDon’t know\nN/A\na. If \"yes” to question 70, how have you informed your new subordinates of their filing requirements? Check all that apply\nTelephone call\nNewsletter\nE-mail\nWebsite\nOther (describe)\n71. Have you informed all of your subordinates that were exempt from Form 990-series filing requirements prior to 2007 because they \ndidn’t exceed the annual gross receipts filing threshold that they are now required to file a Form 990-N (e-Postcard) notice? Select \n“N/A” if you do not have any subordinates that had less than $25,000 in average annual gross receipts prior to 2007\nYes\nNo\nDon’t know\nN/A\na. If \"yes” to question 71, how have you notified these subordinates of their Form 990-N filing requirements? Check all that apply\nTelephone call\nNewsletter\nE-mail\nWebsite\nOther (describe)\n",
"Page 11 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n72. Do you confirm that all of your subordinates (other than those included in your group return, if any) file their own Form 990-series \ninformation return or notice each year? Select “N/A” if you file a group return on behalf of all subordinates each year\nYes\nNo\nDon’t know\nN/A\na. If \"yes” to question 72, how do you confirm that each subordinate has filed a Form 990-series information return or notice? Check \nall that apply\nRequire a copy of a subordinate’s annual return\nConfirm on www.irs.gov that a subordinate has filed Form 990-N\nRequire a written confirmation from an officer of a subordinate that it has filed\nOther (describe)\n73. Do you review or approve each of your subordinate’s annual Form 990-series informational returns or notices before they are filed? \nSelect “N/A” if you file a group return on behalf of all subordinates each year\nYes (review only)\nYes (review and approve the filing)\nNo\nN/A\n74. Indicate below the number of your subordinates required to file each type of Form 990-series information return or notice for tax \nyear 2010. Use an approximate number for a particular Form 990-series return if the exact number is not known. If a \nparticular return listed below was not required to be filed by any of your subordinates for tax year 2010, indicate with an \n“N/A”\nReturn\nNumber of Subordinates \nRequired to File for TY 2010\nForm 990\nForm 990-EZ\nForm 990-N\nForm 990-PF\nNot Required to File\nDon't Know\nTotal\nPart IX - Annual Group Exemption Update\n75. Indicate the method you use to complete your annual group exemption update to the IRS\nRevise the subordinate listing provided to you each year by the IRS\nProvide your own current listing of all active subordinates to the IRS\nOther (describe)\n76. Do you verify the continued existence of your subordinates prior to the submission of your annual group exemption update\nYes\nNo\na. If \"yes” to question 76, describe how you verify the existence of your subordinates\n",
"Page 12 of 12\nCatalog Number 59845N\nwww.irs.gov\nForm 14414 (Rev. 10-2012)\n77. Do you verify that your subordinates continue to meet the requirements for federal tax exemption prior to the submission of your \nannual group exemption update\nYes\nNo\na. If \"yes” to question 77, describe how you verify that your subordinates continue to meet the requirements for federal tax \nexemption\n78. If you have ever removed subordinates from your group, did you report the removal of any of the subordinates to the IRS through \nyour annual group exemption update\nYes (reported all removals)\nYes (reported some removals)\nNo\nDon't know\n79. Indicate the date of the most recent annual group exemption update you submitted to the IRS\nDate (MM/DD/YYYY)\nDon’t know\n80. Have you ever included an organization in a group return prior to notifying the IRS that the organization had become a subordinate \nin your group\nYes\nNo\nDon’t know\n"
] |
p3535sp.pdf
|
0712 Publ 3535 (SP) (PDF)
|
https://www.irs.gov/pub/irs-pdf/p3535sp.pdf
|
[
"Publication 3535 (SP) (7-2012) Catalog Number 73272Y Department of the Treasury Internal Revenue Service www.irs.gov\nSi su tarjeta de Seguro Social dice, VALID FOR WORK ONLY WITH DHS AUTHORIZATION (válida \npara trabajar solamente con la autorización del DHS), usted puede utilizar su número de Seguro Social \npara reclamar el EITC si usted cumple con los requisitos.\nSi su tarjeta de Seguro Social dice NOT VALID FOR EMPLOYMENT (no es válida para trabajar) y \nusted tiene un número de Seguro Social solamente para obtener beneficios de fondos federales, \ncomo el Medicaid, usted no puede usar su número de Seguro Social para reclamar el EITC (el Crédito \nTributario por Ingreso del Trabajo).\n¿Se parece su tarjeta de \nSeguro Social a ésta?\n¿O, se parece a ésta?\nwww.irs.gov/eitc \nLa vida es mejor con el\nPara reclamar el Crédito Tributario por Ingreso del Trabajo, usted tiene que tener \nun número válido de Seguro Social para trabajar emitido por la Administración \ndel Seguro Social. Y, su cónyuge (si presentan una declaración conjunta), así \ncomo cualquier hijo calificado reclamado en el Anexo EITC, tienen que tener \nnúmeros de Seguro Social válidos para trabajar.\n"
] |
p5080.pdf
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0413 Publ 5080 (PDF)
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https://www.irs.gov/pub/irs-pdf/p5080.pdf
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[
"Form 4137 \nCompliance Program\nFrequently \nAsked \nQuestions\nCY\nInfo\n",
"2 | Form 4137 Compliance Program Frequently Asked Questions\n",
" Form 4137 Compliance Program Frequently Asked Questions | 3 \nThe IRS’ Form 4137 Compliance Program uses data from employees’ Forms \n4137, Social Security and Medicare Tax on Unreported Tip Income, to \ndetermine the social security and Medicare taxes owed by the employers of \ntipped employees.\nEmployers in industries where tipping is customary know that they must pay the \nemployer’s share of social security and Medicare taxes on tips employees report \nto them. However, many employers do not realize that they may be liable for these \nsame taxes on tips employees do not report to them.\nFor tips which the employees did not report to the employer, the employer’s \nliability for the employer’s share does not arise until IRS issues a Section 3121(q) \nNotice and Demand. In the past, the IRS has issued notice and demands based on \nthe results of employer or employee tip audits.\nUnder the Form 4137 Compliance Program, a Section 3121(q) Notice and Demand \nwill be based on information the IRS collects from employees’ Forms 4137. \nEmployees use Form 4137 to report and pay their share of social security and \nMedicare taxes due on the tips they did not report to their employer. This includes \nany tips allocated to employees of large food and beverage establishments. \nGenerally, employees must include the allocated tips as income on their income \ntax returns unless they have adequate records to show that they received less tips \nin the year than the allocated figures.\nThe IRS generally intends to notify an employer at least 30 calendar days in \nadvance of the issuance of a Section 3121(q) Notice and Demand by issuing a \npre-notice. The IRS has a designated staff to help resolve any discrepancies the \nemployer notes on the pre-notice.\nA Section 3121(q) Notice and Demand instructs the employer to include the \nsocial security and Medicare taxes shown on the notice and demand on the \nemployer’s next Form 941, Employer’s QUARTERLY Federal Tax Return. The \nemployer will not be subject to any interest charges or deposit penalties if the \nemployer properly reports and pays the taxes as instructed in the notice and \ndemand.\n",
"4 | Form 4137 Compliance Program Frequently Asked Questions\nFORM 4137 – IRC 3121(q) \nFREQUENTLY ASKED QUESTIONS\nQ1.\t\nWhat tips does an employee have to report to his or her employer?\nA1. \t All cash tips received by an employee constitute wages for social security \ntax, Medicare tax, and income tax withholding purposes and, therefore, \nmust be reported to the employer unless the cash tips received by the \nemployee during a single calendar month while working for any one em-\nployer total less than $20. Cash tips include tips received from custom-\ners, charged tips distributed to the employee by his or her employer, and \ntips received from other employees under any tip-sharing arrangement. \nQ2. \t How are tips reported by the employee to the employer? \nA2. \t For each calendar month during which an employee receives $20 or more \nin cash tips, the employee must give the employer a written statement (or \nstatements) of cash tips by the 10th day of the month after the month in \nwhich the tips are received. Form 4070, Employee’s Report of Tips to \nEmployer, is available for this purpose, and can be found in Publication \n1244, Employee’s Daily Record of Tips and Report to Employer. The \nstatement may be furnished on paper or transmitted electronically. See \nTreas. Reg. 31.6053-1(b). Tips reported to the employer by the employee \nare included in Box 1 (Wages, tips, other compensation), Box 5 (Medi-\ncare wages and tips), and Box 7 (Social security tips) of the employee’s \nForm W-2, Wage and Tax Statement.\nQ3. \t If an employee fails to report tips to his or her employer, how \nare social security and Medicare taxes paid on those tips by an \nemployee?\nA3. \t Employees who did not report tips to their employers, including any al-\nlocated tips shown in box 8 of their Form(s) W-2, use Form 4137, Social \nSecurity and Medicare Tax on Unreported Tip Income, to figure the so-\ncial security and Medicare tax owed on those tips. These unreported tips \nare then included as additional wages and reported on their Form 1040, \nU.S. Individual Income Tax Return. \n \n\t\nGenerally, if the employee’s Form W-2 shows allocated tips, the employ-\nee must report the allocated tip amount on Form 4137. However, if the \nemployee has a daily tip record or other credible evidence to show that \nthe actual tips the employee received are less than the combined amount \nof the tips the employee reported to his/her employer and the allocated \ntips, only the difference between the reported tips and the actual tips must \nbe reported on Form 4137 as unreported tip income.\n",
" Form 4137 Compliance Program Frequently Asked Questions | 5 \nQ4. \t What are allocated tips?\nA4. \t An employer who operates a large food or beverage establishment must \nallocate tips among its tipped employees if the total tips reported to the \nemployer during any payroll period are less than 8% (or the approved \nlower rate) of the establishment’s gross receipts for that period. Allo-\ncated tips are computed and reported on Form 8027, Employer’s Annual \nInformation Return of Tip Income and Allocated Tips. See IRC section \n6053(c)(3), Treas. Reg. 31.6053-3, and the Instructions for Form 8027. \n\t\nGenerally, the amount to be allocated is the difference between the total \ntips reported by the tipped employees and 8% (or the approved lower \nrate) of the gross receipts, other than non-allocable receipts. Employers \nreport allocated tips in Box 8 (Allocated tips) of the tipped employee’s \nForm W-2. Tips reported to the IRS on Forms 4137, but not reported to \nthe employer may include all or a portion of the tips allocated and tips in \nexcess of the allocation the employer included in Box 8 of its employee’s \nForm W-2. When an employee reports tips in excess of the amount al-\nlocated, the employee is informing the IRS that he or she earned tips in \nexcess of the 8% allocation made by their employer, but did not report \nthose tips to the employer when received.\nQ5. \t If an employee fails to report tips to his or her employer, when is an \nemployer liable for social security and Medicare taxes on those tips?\nA5. \t If an employee fails to report tips to his or her employer, the employer \nis liable for the employer share of social security and Medicare taxes on \nthe unreported tips when a Section 3121(q) Notice and Demand for the \ntaxes is made to the employer by the IRS. Notice and demand is made \nby the IRS when it advises the employer in writing of the amount of tips \nreceived by an employee (or employees) who failed to report or under-\nreported tips to the employer. The notice to the employer specifically \nidentifies that it is a “notice and demand” under “section 3121(q).” \n\t\nIn the Form 4137 compliance program, the IRS will send an employer \na Section 3121(q) Notice and Demand (Letter 4520) detailing the data \ncollected from their employees’ Forms 4137, showing the computation of \nthe employer’s tax liability and the required payment for the employer’s \nshare of the employment taxes. In the past, the IRS did not assess the \nemployer’s share of social security and Medicare taxes on unreported tips \nshown by employees on Forms 4137 because the form previously did not \ncapture the employer identification number and tip information appli-\ncable to each employer. The IRS revised Form 4137 to capture this in-\nformation and instituted a compliance program to collect the employer’s \nshare of taxes on additional tip income reported on the tipped employee’s \nincome tax return.\n",
"6 | Form 4137 Compliance Program Frequently Asked Questions\nQ6. \t What is Letter 4520-P?\nA6: \t In advance of the issuance of a Section 3121(q) Notice and Demand \n(Letter 4520), generally, the IRS will send a “pre-notice” (Letter 4520-\nP). This pre-notice will give the employer the opportunity to dispute the \ninformation provided. The pre-notice has contact information for the \nEmployment Tax Operations designated staff to resolve discrepancies \nraised by the employer. The pre-notice is not a Section 3121(q) Notice \nand Demand.\nQ7. \t Can an employer get an extension of time to respond to the \npre-notice (Letter 4520 P)?\nA7: \t Yes. Contact the IRS in the manner instructed in the pre-notice (Letter \n4520-P). An IRS employee will discuss the employer’s needs and the re-\nquested extension of time with his or her group manager. The employer \nwill be notified of their decision. If the employer is granted an extension, \nthe employer will be given a new deadline for submitting information.\nQ8. \t What should an employer do if it does not agree with the \namounts shown in the pre-notice (Letter 4520 P) for some of \nthe employees listed? \nA8: \t Contact the IRS in the manner instructed in the pre-notice (Letter 4520-\nP). You may submit a list of the employees in question and explain your \nbasis for contending that the tips are incorrect. We will research your \ninquiry and make any adjustments necessary based on obvious errors or \ninconsistencies discovered. The pre-notice (Letter 4520-P) is based on \nForms 4137 filed by your employees reporting additional tip income on \ntheir individual income tax returns, Forms 1040.\nQ9.\t\n If an individual listed in the attachment to the pre-notice (Let-\nter 4520-P) did not work in a tipped capacity, what should the \nemployer do to resolve this inquiry?\nA9: \t Contact the IRS in the manner instructed in the pre-notice (Letter \n4520-P). Inform the IRS if your business does not lend itself to tipping. \nThe worker may have used the incorrect form. The IRS may contact \nthe employer to ask specific questions about the business, the type of \ndocument(s) the employer issued to the worker at year-end (Form W-2, \nForm 1099-MISC (Miscellaneous Income), etc.), and the job(s) held by \nthe worker. \n",
" Form 4137 Compliance Program Frequently Asked Questions | 7 \nQ10. \tHow does an employer, who files Form 941, Employer’s \nQUARTERLY Federal Tax Return, report the social security \nand Medicare tax liability after notice and demand is made?\nA10: \tAs part of the Form 4137 compliance program, the IRS will send an em-\nployer a Section 3121(q) Notice and Demand (Letter 4520). For purpos-\nes of applying the deposit rules, the amount of employer social security \nand Medicare taxes attributable to the amount of tips received by the \nemployee (or employees), as shown on the Section 3121(q) Notice and \nDemand, is treated as employment taxes accumulated by the employer \non the date the Section 3121(q) Notice and Demand is made, which is the \ndate printed on the notice and demand document. \n\t\nThe employer reports the amount of the section 3121(q) social security \nand Medicare tax liability as a current period liability on the employer’s \nForm 941 for the calendar quarter in which notice and demand is made. \nEmployers should consult the Section 3121(q) Notice and Demand (Let-\nter 4520) to determine the correct line entry on Form 941. \n\t\nThe employer must also include the amount of the section 3121(q) tax \nliability on the appropriate report of federal tax liability. For semi-\nweekly schedule depositors, include the tax liability on the numbered \nspace on Schedule B (Form 941), Report of Tax Liability for Semiweekly \nSchedule Depositors that corresponds to the date of the Section 3121(q) \nNotice and Demand. For monthly schedule depositors, include the tax \nliability on the line for the month in Part 2 of Form 941 that corresponds \nto the date of the notice and demand. For example, if the Date of Notice \nand Demand is March 29, 2013, include this tax liability on the line for \nMonth 3 in Part 2 of the Form 941 for the 1st quarter 2013. Reminder: \nThe amounts reported in Part 2 are a summary of your monthly tax liabil-\nity not a summary of the deposits you made. \nQ11. \tHow does the employer pay the tax?\nA11: \tThe IRS will issue a Section 3121(q) Notice and Demand (Letter 4520) \nto the employer which will provide specific guidance. An employer \nshould review its deposit requirements and be prepared to make a \ndeposit, if required, for the tax due as of the date of the Section 3121(q) \nNotice and Demand. \n\t\nDepending on the amount due, an employer may be able to remit the \npayment with the Form 941. See the Instructions for Form 941. If the \namount due for the section 3121(q) tax liability and other taxes for the \nquarter exceed the dollar limitation for remittance with a filed return, an \n",
"8 | Form 4137 Compliance Program Frequently Asked Questions\nemployer should make a deposit according to the deposit rules, to avoid \nany possible deposit penalty. If the employer uses a payroll service, the \nemployer should notify them immediately upon receipt of the Section \n3121(q) Notice and Demand. \nQ12. An employer understands that the additional tips reported by \nmany of its employees represent allocated tips shown on their \nForms W-2. Is there any way that the employer can report \nthose tips in Box 1 (Wages, tips, other compensation), Box 5 \n(Medicare wages and tips), and Box 7 (Social security tips) of \nthe Forms W-2, Wage and Tax Statement and pay the taxes \non Form 941 for the year in which they are allocated so that it \nwon’t have this unplanned liability in the future?\nA12: \tNo. An employer can only include tips reported to the employer by its \nemployee in Box 1, Box 5, and Box 7 of the employee’s Form W-2. All \nallocated tips are to be reported in Box 8 (Allocated tips) of the tipped \nemployee’s Form W-2. An employer is not liable for the employer share \nof the social security and Medicare taxes on allocated tips when it makes \nthe allocation.\n\t\nIf an employer repeatedly has to allocate tips to its employees, it may \nindicate a weakness in the employer’s internal controls for employee tip \nreporting, or a lack of understanding or adherence to the tip reporting \nlaws by its tipped employees. A thorough review of the internal controls \nfor the employer’s tip reporting system along with employee tip reporting \neducation seminars may be appropriate. IRS Publication 531, Report-\ning Tip Income, provides a comprehensive review of the tip income tax \nlaws. IRS Publication 531 is available electronically or in hard copy and \ncan also be used as an employee training tool. Employers or employees \ncan obtain the publication by visiting Forms and Publications at the IRS \nwebsite, www.irs.gov, or by calling 1-800-TAX-FORM (1-800-829-\n3676). When employees report their tips accurately to their employer, \nthe allocation of tips is usually not necessary.\n\t\nThe best way to minimize any unexpected IRC section 3121(q) assess-\nments is for an employer to educate its employees on their tip reporting \nresponsibilities and to administer a tip reporting system that allows its \nemployees to report their tips accurately when received. This should \nhelp reduce or eliminate any unanticipated tax liability based on Forms \n4137 filed by employees. \n",
" Form 4137 Compliance Program Frequently Asked Questions | 9 \nQ13. If an employer receives the pre-notice (Letter 4520-P) and \nagrees that it owes the stated taxes, can the employer include \nthe amount immediately on the current quarter’s Form 941 in-\nstead of waiting until the Section 3121(q) Notice and Demand \nis issued?\nA13: No. The employer must wait until the Section 3121(q) Notice and De-\nmand (Letter 4520) is issued to include the amount on its Form 941. An \nemployer is liable for the employer share of social security and Medicare \ntaxes on the unreported tips when notice and demand for the taxes is \nmade to the employer by the IRS. A pre-notice is not a Section 3121(q) \nNotice and Demand.\n\t\nFor example, the IRS issues a pre-notice (Letter 4520-P) to Employer X \non September 20, 2012. Employer X contacts the IRS on September 28, \n2012, and indicates that it would like to make the payment on September \n28, 2012 and show the section 3121(q) tax liability on the Form 941 for \nthe 3rd quarter 2012 rather than wait until the Section 3121(q) Notice \nand Demand (Letter 4520) is issued. The IRS employee tells Employer \nX that the Section 3121(q) Notice and Demand will not be issued until \nOctober, 2012, which is in the 4th quarter 2012. Employer X can make \nthe deposit immediately by EFTPS (Electronic Federal Tax Payment \nSystem) as long as it designates the deposit for the Form 941 for the 4th \nquarter 2012. Employer X will include the amount of the section 3121(q) \ntax liability on the Form 941 for the 4th quarter 2012, after the Section \n3121(q) Notice and Demand is issued.\nQ14. \tIf an employer receives a Section 3121(q) Notice and Demand \n(Letter 4520) after it closed its business, is the employer still \nliable? How does the employer report and pay the amount it \nowes?\nA14. \tYes, the employer is still liable. Under IRC section 3121(q), an em-\nployer’s tax liability on unreported tips arises when the IRS issues the \nemployer a Section 3121(q) Notice and Demand to collect the employer \nshare of social security and Medicare taxes on those tip amounts. Thus, \neven though the employer is no longer in business, the employer is still \nliable for the tax on tips its employees earned, but did not report to the \nemployer during their employment. \n",
"10 | Form 4137 Compliance Program Frequently Asked Questions\n\t\nIf an employer ceased business operations, it should have filed a final \nreturn for the last quarter wages were paid. Even though a final return \nwas filed, if an employer pays any wages or other taxable compensation \nfor periods following the cessation of the business, the employer must \nfile a Form 941, Employer’s QUARTERLY Federal Tax Return, for that \nperiod. See Publication 15, (Circular E), Employer’s Tax Guide, for ad-\nditional information. Although an employer filed a final return and may \nnot have filed a Form 941 for some time, the employer must file a Form \n941 for the quarter in which the Section 3121(q) Notice and Demand \nis made, which is the date printed on the notice and demand document. \nAn employer should mark the checkbox on Form 941 to indicate that its \nbusiness has closed or it stopped paying wages and enter the date of the \nSection 3121(q) Notice and Demand as the final date it paid wages. The \nIRS will then not expect the employer to file subsequent Forms 941.\nQ15.\t Is the Section 45B credit, with respect to the tips reported \non the Section 3121(q) Notice and Demand, available to the \nemployer in the year the Section 3121(q) Notice and Demand \nis made or does an employer need to file an amended return \nfor the year in which the unreported tips were received by the \nemployee?\nA15: \tThe Section 45B credit is available to the employer in the year the Sec-\ntion 3121(q) Notice and Demand is paid and not the year in which the \nunreported tips were received by the employee. The Section 45B credit \nis applied to the taxable year that the “excess social security tax” amount \nis paid or incurred. The term “excess employer social security tax” \nmeans any tax paid by an employer under IRC section 3111 (both social \nsecurity tax and Medicare tax) on its employees’ tip income without \nregard to whether the employees reported the tips to the employer. The \ncredit is claimed on Form 8846, Credit for Employer Social Security and \nMedicare Taxes Paid on Certain Employee Tips.\n",
" Form 4137 Compliance Program Frequently Asked Questions | 11 \nMore information about tip reporting, allocated tips, and social security and \nMedicare taxes are in:\n•\t\nPublication 15 (Circular E), Employer’s Tax Guide \n•\t\nPublication 531 Reporting Tip Income \n•\t\nInstructions for Form 941 \n•\t\nTopic 761 - Tips - Withholding and Reporting \n•\t\nInstructions for Form 8027 \nhttp://www.irs.gov/businesses/small/selfemployed/article/0,,id=223803,00.html\n",
"Publication 5080 (4-2013) Catalog Number 62616M \nDepartment of the Treasury Internal Revenue Service www.irs.gov\n"
] |
n844.pdf
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0610 Notc 844 (PDF)
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https://www.irs.gov/pub/irs-pdf/n844.pdf
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[
" \n \n \n \n \n \n \n \n \n \n \n \nFederal Tax Obligations of Non-Profit Corporations \nNon-profit status may make an organization eligible for certain benefits, such as state sales, property, and income tax \nexemptions; however, this corporate status does not automatically grant exemption from federal income tax. To be tax \nexempt, most organizations must apply for recognition of exemption from the Internal Revenue Service to obtain a ruling \nor determination letter recognizing tax exemption. \nExemption as a charitable, educational, or religious organization under section 501(c)(3) is generally considered the most \nfavorable status, because donations to 501(c)(3) organizations are tax deductible. To be exempt under that section, an \norganization must apply within 27 months after the end of the month in which it was created. \nAlthough certain types of organizations are not required to apply for recognition of exemption, many do so in order to \nclarify their tax status. A user fee must accompany an exemption application. The IRS will not process an application \nuntil the user fee is paid. \nRequired Applications \nSection 501(c)(3)organizations \n• \nForm 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code \n• \nForm SS-4, Application for Employer Identification Number (or apply for an EIN on-line at www.irs.gov; type “EIN” in \nthe keyword box on any page) \nNon-501(c)(3) organizations \n• \nForm 1024, Application for Recognition of Exemption Under Section 501(a) of the Internal Revenue Code \n• \nForm SS-4, Application for Employer Identification Number (or apply for an EIN on-line at www.irs.gov; type “EIN” in \nthe keyword box on any page) \n• \nForm 8718, User Fee for Exempt Organization Determination Letter Request \nHelp Available from the IRS \nPublication 4220, Applying for 501(c)(3) Tax-Exempt Status \nPublication 4221-NC, Compliance Guide for Tax Exempt Organizations (other than 501(c)(3) Public Charities and Private \nFoundations) \nPublication 4221-PC, Compliance Guide for 501(c)(3) Public Charities \nPublication 4221-PF\n, Compliance Guide for 501(c)(3) Private Foundations \nPublication 4630, Exempt Organizations Products and Services Navigator \nPublication 557, Tax-Exempt Status for Your Organization \nDownload forms and publications at www.irs.gov; or call 1-800-829-3676 (toll-free) \nCharities and Nonprofits website: www.irs.gov/eo \n• \nLife Cycles: web-based information tools to help tax-exempt organizations comply with requirements that occur \nthroughout the life cycle of their organization \n• \nwww.stayexempt.irs.org \n: web-based training modules and mini-courses \n• \nEO Update: free electronic newsletter with information for tax-exempt organizations and tax practitioners who \nrepresent them \nTE/GE Customer Service: (877) 829-5500 (toll free) \n",
" \n \n \nApplying for Federal Tax Exemption? New User Fees for 2010 \nAn organization that applies for IRS recognition of its tax-exempt status must generally pay an application fee \n(sometimes called a user fee). These fees will increase for all applications for exemption (Forms 1023, 1024, and 1028) \npostmarked after January 3, 2010: \n• \n$400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period \n• \n$850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period \n• \n$3,000 for group exemption letters. \nA complete schedule of all IRS user fees was published in the annual procedure released in January 2010. \nNotice 844 (Rev. 6-2010) Catalog Number 10319Q Department of the Treasury Internal Revenue Service www.irs.gov \n"
] |
f8546.pdf
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0213 Form 8546 (PDF)
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https://www.irs.gov/pub/irs-pdf/f8546.pdf
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[
"Catalog Number 63488O \nwww.irs.gov \nForm 8546 (Rev. 2-2013) \nForm 8546 \n(Rev. February 2013) \nDepartment of the Treasury – Internal Revenue Service \nClaim for Reimbursement of Bank Charges \nInstructions \nPlease carefully read the instructions on the back of this form and provide the information requested. Use additional \nsheet(s) if necessary. Submit this form to the address of the IRS office which served the levy, the address of the office \nthat misplaced the payment or the address that you used to file your tax return for Direct Debit Installment Agreement \nRequest. \n1. Name and address of claimants (Number, street, city, state, and ZIP code) \n2. Telephone number (including area code) \n3. Best time to call \n4. Amount of claim \n$ \n5. Social security or employer identification number \n(Disclosure is voluntary. Omission may delay your claim \nor prevent locating your records.) \nElectronic Funds Transfer (EFT) Information \n(See instructions on the back of this form.) \n6. Name(s) on bank account \n7. American Bankers Association (ABA) number \n8. Bank name and address (Number, street, city, state, ZIP code) \n9. Bank account number \n10. Type of account \nChecking \nSavings \n11. Description of claim (State the circumstances which resulted in the loss for which you are claiming reimbursement.) \nCertification \nI certify that the amount of my claim covers only bank charges which resulted from either an \nerroneous IRS levy, processing error by the Service for a Direct Debit Installment \nAgreement or having to stop payment on a check which was lost or misplaced by the IRS. I \nagree to accept this amount in full satisfaction and final settlement of this incident. \n12. Signature of claimants (This signature should be used in all future correspondence.) \n13. Date of claim \nCivil Penalty for Presenting \nFraudulent Claim \nThe claimant shall be liable to the United States for the sum of \n$2,000 plus double the amount of damages sustained by the \nUnited States. (See R S § 3490, 5438, 31 USC 3729.) \nCivil Penalty for Presenting \nFraudulent Claim or Making False Statements \nFine of not more than $10,000 or imprisonment for not more \nthan 5 years or both. (See 62 Stat. 698, 749; 18 USC 287, 1001.) \n",
"Catalog Number 63488O \nwww.irs.gov \nForm 8546 (Rev. 2-2013) \n \nInstructions \nPlease complete all blocks. Write \"NONE\" if the block does not apply. \nUse this form only for reimbursement of bank charges for: \n1. an erroneous levy, or \n2. stopping payment on a check that the IRS lost or misplaced. \n3. Direct Debit Installment Agreement (DDIA) processing error \non the part of the Service. \nThe claimants must sign this form. If the bank account involved \nis a joint account, each owner on the account must sign the \nForm 8546 as a claimant for erroneous levy. DDIA processing \nerror claims on joint returns also require signature of both \nspouses. However, an authorized agent or legal representative \ncan file and sign the claim if the claimant can't because of \ndisability, death, or other acceptable reason. Include proof of \nauthorization if the claim is being filed on behalf of someone. \nClaims must be made within one year of the date the claim \naccrues and are limited to $1,000. (See 31 USC 3723) \nPlease attach verification of the amount you are claiming. \nInclude any documentation you may have explaining or \nacknowledging the IRS error. Also, include: \n1. a copy of the levy (if the charges were caused by an \nerroneous levy), \n2. records showing the bank charges caused by the erroneous \nlevy, the request for replacement of a lost or misplaced \ncheck, or DDIA processing error on the part of the Service, \nand \n3. records showing that the bank charges have been paid. \nRecords to support your claim must include bank statements and \ncorrespondence. \nIf you have any questions about this claim, please contact the \nIRS office that issued the levy or requested replacement of your \ncheck. The address is on your copy of the levy or the request for \na new check. If your questions relate to a Direct Debit Installment \nAgreement, please contact the IRS at 1-800-829-1040 or mail \nyour questions to the address that you used to file your tax \nreturn. \nIf IRS approves your claim, the money can be sent to your bank \nby electronic funds transfer (EFT), or we can send you a check. \nPayment by EFT will be faster, safer, and more convenient for \nyou. If you want us to pay your claim by EFT, we need the bank \ninformation in items 6 through 10. The American Bankers \nAssociation (ABA) number (item 7) is the first nine digits in the \nnumber at the bottom of your checks. If you have no checking \naccount, ask your bank what its ABA number is. If you do not \ncomplete items 6 through 10, a check will be sent to you. \nInternal Revenue Policy P-5-39 \nReimbursement of Bank Charges Due to Erroneous Levy and Service Loss or Misplacement of Taxpayer \nChecks, or Direct Debit Installment Agreement Processing Errors. \nThe Service recognizes that there are circumstances when an \nerroneous use of its unique enforcement powers may cause tax- \npayers to incur certain bank charges. Taxpayers who incur bank \ncharges due to an erroneous levy or a Direct Debit Installment \nAgreement (DDIA) processing error on the part of the Service \nmay file a claim for reimbursement of those expenses. Bank \ncharges include a financial institution's customary charge for \ncomplying with the levy instructions as well as charges for \noverdrafts that are a direct consequence of an erroneous levy or \nDDIA processing error on the part of the Service. In addition, \nthere are times when a taxpayer's check may be lost or \nmisplaced in processing. When the Service asks for a \nreplacement check, the taxpayer maybe reimbursed for bank \ncharges incurred in stopping payment on the original check. The \ncharges must have been paid by the taxpayer and must not have \nbeen waived or reimbursed by the financial institution. Claims \nmust be filed with the District Director or Service Center Director \nwithin one year after accrual of the expense. \nThe following criteria must be present in all erroneous levy \ncases: \n(1) The Service acknowledges the levy was erroneous; \n(2) The taxpayers must not have contributed to the \ncontinuation or compounding of the error; and \n(3) Prior to the levy, the taxpayer did not refuse (either orally or \nin writing) to timely respond to Service inquiries or provide infor- \nmation relevant to the liability for which the levy was made. \nThe following criteria must be present in all lost check cases: \n(1) The Service acknowledges it lost or misplaced the check \nduring processing; \n(2) the Service asks the taxpayer for a replacement of the pay- \nment; and \n(3) the Service is satisfied that the replacement payment has \nbeen received. \nThe following criteria must be present in all DDIA processing \nerror cases. \n(1) The Service failed to act timely, took an incorrect or \nimproper action, or a systemic failure caused the bank fees; \n(2) The taxpayer must not have contributed to the continuation \nor compounding of the error that caused the bank fees; and \n(3) Prior to the processing error, the taxpayer did not refuse \n(either orally or in writing) to timely respond to the Service’s \ninquiries or provide sufficient information for the DDIA processing \nchange to be made. \nIn compliance with the Privacy Act of 1974, the following is provided. \nSolicitation of the information is authorized by Title 31 USC \n3723; 31 CFR 3.20 et seq. Disclosure of the information is \nvoluntary. \nThe principal purpose of this information will be for our internal \nuse in processing your claim under 31 USC 3723, or for any \ncourt proceedings which may ensue from the filing of this claim. \nWe may disclose the information on this form relevant to the \nprocessing of your claim or to any court proceedings resulting \nfrom your claim. We may give the information to the Department \nof Justice for the purpose of seeking legal advice or recommend- \ning prosecutions for fraudulent claims or the making of false \nstatements. \n"
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i5735.pdf
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0113 Inst 5735 (PDF)
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https://www.irs.gov/pub/irs-pdf/i5735.pdf
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"Instructions for Form 5735\n(Rev. January 2013)\nAmerican Samoa Economic Development Credit\nDepartment of the Treasury\nInternal Revenue Service\nSection references are to the Internal Revenue Code unless \notherwise noted.\nWhat's New\nSection 330 of the American Taxpayer Relief Act of 2012 has \nmodified and expanded the American Samoa economic \ndevelopment credit for tax years beginning after December 31, \n2011. This revision reflects those changes. For information on \nthe credit for tax years beginning before January 1, 2012, see \nthe March 2007 revision of Form 5735 and the separate \ninstructions.\nGeneral Instructions\nPurpose of Form\nForm 5735 is used to figure the American Samoa economic \ndevelopment credit under section 30A. The credit is generally \nallowed against income tax imposed by Chapter 1 (see \nRestrictions below for exceptions).\nWho Must File\nA domestic corporation (other than an S corporation) must \ncomplete Form 5735 for each year the American Samoa \neconomic development credit election is in effect.\nWhere To File\nAttach Form 5735 to the corporation's income tax return and file \nthe return with the Internal Revenue Service, P.O. Box 409101, \nOgden, UT 84409.\nQualifying for the Credit\nTo qualify for the American Samoa economic development \ncredit, a corporation must meet the qualified production activities \nincome (QPAI) requirement. A corporation meets this \nrequirement if it has qualified production activities income \n(defined below).\nThe corporation does not qualify for the American \nSamoa economic development credit unless it has a \npositive QPAI.\nRestrictions\nThe credit is not allowed against the following taxes:\n1.\nTax on accumulated earnings (section 531).\n2.\nPersonal holding company tax (section 541).\n3.\nAdditional tax for recovery of foreign expropriation losses \n(section 1351).\n4.\nRecapture of investment credit (section 50).\n5.\nRecapture of low-income housing credit\n(section 42(j)(4)(D)).\n6.\nRecapture of Indian employment credit\n(section 45A).\nIC-DISC or FSC\nA corporation cannot take the American Samoa economic \ndevelopment credit for any tax year it is an IC-DISC or former \nIC-DISC, or for any tax year in which it owns stock in an IC-DISC \nor FSC, or former IC-DISC or former FSC (section 936(f)).\nCAUTION\n!\nAlternative Minimum Tax\nIncome eligible for the American Samoa economic development \ncredit is not taxed under the alternative minimum tax rules. See \nForm 4626, Alternative Minimum Tax—Corporations.\nSource of Gross Income, etc.\nSee sections 638, 861-864, and 936 to determine if the source \nof gross income, deductions, and taxable income is in or outside \nAmerican Samoa. Amounts received in American Samoa may \nbe considered sourced outside American Samoa if they are from \nsources outside American Samoa and received from an \nunrelated person in the active conduct of a trade or business. \nSee section 936(b).\nQualified Production\nActivities Income (QPAI)\nNote. For tax years beginning in 2012, the corporation does not \nreport its QPAI on Form 5735. However, the corporation must \nhave positive QPAI in order to qualify for the American Samoa \neconomic development credit. For tax years beginning in 2012, \ncorporations should calculate their QPAI and keep it for their \nrecords in order to prove to the IRS (in the case of an audit) that \nthey qualify for the credit.\nFiguring QPAI. QPAI is the excess (if any) of:\n1.\nDomestic production gross receipts (DPGR), over\n2.\nThe sum of:\na.\nCost of goods sold allocable to DPGR, and\nb.\nOther expenses, losses, or deductions which are properly \nallocable to DPGR.\nOil-related qualified production activities income. \nOil-related qualified production activities income is QPAI \nattributable to the production, refining, processing, \ntransportation, or distribution of oil or gas, or any primary product \nfrom oil or gas (section 927(a)(2)(C), as in effect before its \nrepeal).\nPrimary products from oil. Primary products from oil are \ncrude oil and all products derived from the destructive distillation \nof crude oil, including volatile products, light oils such as motor \nfuel and kerosene, distillates such as naphtha, lubricating oils, \ngreases and waxes, and residues such as fuel oil.\nA product or commodity derived from shale oil, which would \nbe a primary product from oil if derived from crude oil, is \nconsidered a primary product from oil.\nPrimary products from gas. Primary products from gas are \nall gas and associated hydrocarbon components from gas or oil \nwells, whether recovered at the lease or upon further \nprocessing, including natural gas, condensates, liquefied \npetroleum gases such as ethane, propane, and butane, and \nliquid products such as natural gasoline.\nSee Temporary Regulations section 1.927(a)-1T(g)(2) for \nadditional information.\nDomestic Production Gross Receipts (DPGR)\nGenerally, your gross receipts (defined later) derived from the \nfollowing activities are DPGR.\n1.\nConstruction of real property you perform in American \nSamoa in your construction trade or business.\nJan 23, 2013\nCat. No. 20920T\n",
"2.\nEngineering or architectural services you perform in \nAmerican Samoa in your engineering or architectural services \ntrade or business for the construction of real property in \nAmerican Samoa.\n3.\nAny lease, rental, license, sale, exchange, or other \ndisposition of the following.\na.\nQualifying production property you manufacture, produce, \ngrow or extract in whole or in significant part in American \nSamoa. See Qualifying Production Property and Manufacturing, \nProducing, Growing, or Extracting, below, for details.\nb.\nAny qualified film you produce.\nc.\nElectricity, natural gas, or potable water you produce in \nAmerican Samoa.\nIn general, gross receipts derived from the following activities \nare not DPGR.\nActivities not attributable to the actual conduct of a trade or \nbusiness.\nThe sale of food and beverages you prepare at a retail \nestablishment.\nThe lease, rental, or license of property between certain \npersons treated as a single employer.\nThe lease, rental, license, sale, exchange, or other disposition \nof land.\nThe transmission or distribution of electricity, natural gas, or \npotable water.\nAdvertising and product-placement; however, see \nRegulations section 1.199-3(i)(5)(ii) for exceptions.\nCustomer and technical support, telephone and other \ntelecommunications services, online services (including Internet \naccess services, online banking services, providing access to \nonline electronic books, newspapers, and journals) and other \nsimilar services; however, see Regulations section 1.199-3(i)(6)\n(iii) for exceptions.\nGross receipts. Gross receipts include the following amounts \nfrom your trade or business activities.\nTotal sales (net of returns and allowances).\nAmounts received for services, not including wages received \nas an employee.\nIncome from incidental or outside sources (including sales of \nbusiness property).\nGross receipts are generally not reduced by the:\nCost of goods sold, or\nAdjusted basis of property (other than capital assets) sold or \notherwise disposed of, if such property is described in section \n1221(a)(1) through (5).\nAllocation of gross receipts. You generally must allocate your \ngross receipts between DPGR and non-DPGR. Allocate gross \nreceipts using a reasonable method that accurately identifies \ngross receipts that are DPGR. However, if less than 5% of your \ngross receipts are non-DPGR, you can treat all of your gross \nreceipts as DPGR. Also, if less than 5% of your gross receipts \nare DPGR, you can treat all of your gross receipts as non-DPGR.\nFor details, see Regulations section 1.199-1(d).\nQualifying Production Property\nThe following are qualifying production property.\nTangible personal property.\nComputer software.\nSound recordings.\nTangible personal property. Tangible personal property \nincludes any tangible property other than land, buildings \n(including structural components), computer software, sound \nrecordings, qualified films, electricity, natural gas, or potable \nwater. Tangible personal property also includes any gas (other \nthan natural gas), chemical, and similar property, such as steam, \noxygen, hydrogen, or nitrogen.\nMachinery, printing presses, transportation and office \nequipment, refrigerators, grocery counters, testing equipment, \ndisplay racks and shelves, and neon and other signs that are \ncontained in or attached to a building constitute tangible \npersonal property.\nNote. Local law does not control whether property is tangible \npersonal property.\nSee Regulations section 1.199-3(j)(2) for more information.\nComputer software. In general, computer software includes \nthe following:\nAny program, routine, or sequence of machine-readable code \nthat is designed to cause a computer to perform a desired \nfunction or set of functions, and the documentation required to \ndescribe or maintain that program or routine. An electronic book \nonline or for download does not constitute computer software.\nMachine-readable code for (a) video games or similar \nprograms, (b) equipment that is an integral part of other property, \nand (c) typewriters, calculators, adding and accounting \nmachines, copiers, duplicating equipment, and similar \nequipment, even if the program is not designed to operate on a \ncomputer as defined in section 168(i)(2)(B).\nComputer programs including, but not limited to, operating \nsystems, executive systems, monitors, compilers and \ntranslators, assembly routines, utility programs, and application \nprograms.\nAny incidental and ancillary rights that are necessary for the \nacquisition of the title to, the ownership of, or the right to use \ncomputer software, and that are used only in connection with \nthat specific software. These incidental and ancillary rights are \nnot included in the definition of a trademark or trade name under \nRegulations section 1.197-2(b)(10)(i).\nException. Computer software does not include any data or \ninformation base unless the data or information base is in the \npublic domain and is incidental to a computer program.\nExample. If a word processing program includes a dictionary \nfeature that may be used to spell-check a document, then the \nentire program (including the dictionary feature) is a computer \nsoftware program regardless of the form in which the dictionary \nfeature is maintained or stored.\nSee Regulations section 1.199-3(j)(3) for more information.\nSound Recordings. Sound recordings include any works that \nresult from the fixation of a series of musical, spoken, or other \nsounds. The definition of sound recordings is limited to the \nmaster copy of the recordings (or other copy from which the \nholder is licensed to make and produce copies), and if the \nmedium (such as compact discs, tapes, or other \nphonorecordings) in which the sounds may be embodied is \ntangible, then the medium is considered tangible personal \nproperty.\nException. Sound recordings do not include the creation of \ncopy-righted material in a form other than a sound recording, \nsuch as lyrics or music composition.\nSee Regulations section 1.199-3(j)(4) for more information.\nQualified film. A qualified film is any motion picture film, video \ntape, or live or delayed television programming, for which 50% \nor more of the total compensation required to produce the film is \npaid for services performed by actors, production personnel, \ndirectors, and producers in American Samoa.\nA qualified film includes the copyrights, trademarks, or other \nintangibles related to the film. Also, QPAI includes gross receipts \nfrom the production of a qualified film regardless of the methods \nand means by which the film is distributed.\n-2-\n",
"See section 199(c)(6) and Regulations section 1.199-3(k) for \nmore information.\nManufacturing, Producing, Growing, or Extracting\nManufacturing, producing, growing, and extracting (MPGE) \ngenerally include the following trade or business activities.\nActivities related to manufacturing, producing, growing, \nextracting, installing, developing, improving, and creating \nqualifying production property.\nMaking qualifying production property out of scrap, salvage, \nor junk material, or from new or raw material by processing, \nmanipulating, refining, or changing the form of an article, or by \ncombining or assembling two or more articles.\nCultivating soil, raising livestock, fishing, and mining minerals.\nStorage, handling, or other processing activities (other than \ntransportation activities) in American Samoa related to the sale, \nexchange, or other disposition of agricultural products, provided \nthe products are consumed in connection with, or incorporated \ninto, manufacturing, producing, growing, or extracting qualifying \nproduction property whether or not by the taxpayer.\nFor details, see Regulations section 1.199-3(e).\nCost of Goods Sold\nCost of goods sold is a component of QPAI and it includes the:\nCost of goods sold to customers, and\nAdjusted basis of non-inventory property you sold or \notherwise disposed of in your trade or business.\nAllocation of cost of goods sold. Generally, you must \nallocate your cost of goods sold between DPGR and non-DPGR \nusing a reasonable method. If you use a method to allocate \ngross receipts between DPGR and non-DPGR, the use of a \ndifferent method to allocate cost of goods sold will not be \nconsidered reasonable, unless it is more accurate. However, if \nyou qualify to use the small business simplified overall method, \nyou can use it to apportion both cost of goods sold and other \ndeductions, expenses, and losses between DPGR and \nnon-DPGR.\nFor details, see Regulations section 1.199-4.\nForm W-2 wages. To determine the amount of Form W-2 \nwages to include in cost of goods sold, see Wage expense \nincluded in cost of goods sold, later.\nOther Deductions, Expenses, or Losses\nOther deductions, expenses, or losses include all deductions, \nexpenses, or losses (other than cost of goods sold and \nemployee business expenses) from a trade or business.\nAllocation and apportionment of other deductions, expen-\nses, or losses. You can generally use one of the following \nthree methods to allocate and apportion other trade or business \ndeductions, expenses, or losses between DPGR and \nnon-DPGR.\nSmall business simplified overall method.\nSimplified deduction method.\nSection 861 method.\nHowever, do not allocate and apportion a net operating loss \ndeduction or deductions not attributable to the conduct of a trade \nor business to DPGR under any of the methods.\nSmall Business Simplified Overall Method\nYou generally can use the small business simplified overall \nmethod to apportion cost of goods sold and other deductions, \nexpenses, and losses between DPGR and non-DPGR if you \nmeet any of the following tests.\nYou are engaged in the trade or business of farming and are \nnot required to use the accrual method of accounting (see \nsection 447).\nYour average annual gross receipts (defined below) are $5 \nmillion or less.\nYou are eligible to use the cash method of accounting under \nRev. Proc. 2002-28. You can find Rev. Proc. 2002-28 on \npage 815 of I.R.B. 2002-18 at www.irs.gov/pub/irs-irbs/\nirb02-18.pdf.\nUnder the small business simplified overall method, your total \ncost of goods sold and other deductions, expenses, and losses \nare ratably apportioned between DPGR and non-DPGR based \non relative gross receipts.\nExample. Your total cost of goods sold and other trade or \nbusiness deductions, expenses, or losses are $400 and do not \ninclude a net operating loss deduction. You have $1,000 total \ngross receipts and $750 DPGR. Your DPGR equal 75% of your \ntotal gross receipts. Under the small business simplified overall \nmethod, you subtract $300 ($400 × .75) of your total cost of \ngoods sold and other trade or business deductions, expenses, \nor losses from your DPGR to figure your QPAI, which is $450 \n($750 minus $300).\nAverage annual gross receipts. For this purpose, your \naverage annual gross receipts are your average annual gross \nreceipts for the preceding 3 tax years. If your business has not \nbeen in existence for 3 tax years, base your average on the \nperiod it has existed. Include any short tax years by annualizing \nthe short tax year's gross receipts by (a) multiplying the gross \nreceipts for the short period by 12 and (b) dividing the result by \nthe number of months in the short period.\nOil-related production activities. If you have oil-related \nqualified production activities income and you choose to use the \nsmall business simplified overall method, you must allocate part \nof these costs to DPGR from oil-related production activities to \ndetermine oil-related QPAI.\nSimplified Deduction Method\nYou generally can use the simplified deduction method to \napportion other deductions, expenses, and losses (but not cost \nof goods sold) between DPGR and non-DPGR if you meet either \nof the following tests.\nYour total trade or business assets at the end of your tax year \nare $10 million or less.\nYour average annual gross receipts (defined above) are $100 \nmillion or less.\nUnder the simplified deduction method, your other trade or \nbusiness deductions, expenses, or losses are ratably \napportioned between DPGR and non-DPGR based on relative \ngross receipts.\nExample. Your total other trade or business deductions, \nexpenses, or losses are $400 and do not include a net operating \nloss. You have $240 of cost of goods sold allocable to DPGR. \nYou have $1,000 total gross receipts and $600 DPGR. Your \nDPGR equal 60% of your total gross receipts. Under the \nsimplified deduction method, you subtract $240 ($400 × .60) of \nyour total other trade or business deductions, expenses, or \nlosses from your DPGR to figure your QPAI, which is $120 ($600 \nminus $240 minus $240).\nOil-related production activities. If you have oil-related \nqualified production activities income and you choose to use the \nsimplified deduction method, you must allocate part of these \ncosts to DPGR from oil-related production activities to determine \noil-related QPAI.\n-3-\n",
"Section 861 Method\nYou do not have to meet any tests to use the section 861 \nmethod. Under the section 861 method, you generally must \napply the rules of the section 861 regulations to allocate and \napportion other trade or business deductions, expenses, or \nlosses between DPGR and non-DPGR. Section 199 is treated \nas an “operative section” described in Regulations section \n1.861-8(f).\nFor details, see Regulations section 1.199-4(d).\nFor guidance on automatic approval to change certain \nelections relating to the apportionment of interest expense and \nresearch and experimentation expenditures, see Rev. Proc. \n2006-42. You can find Rev. Proc. 2006-42 on page 931 of I.R.B. \n2006-47 at www.irs.gov/pub/irs-irbs/irb06-47.pdf.\nOil-related production activities. If you have oil-related \nqualified production activities income, apply the rules of section \n861 to determine the amount of other trade or business \ndeductions, expenses, or losses to deduct for purposes of \ndetermining oil-related QPAI.\nFiguring Form W-2 Wages\nYou figure Form W-2 wages in two steps. First, you must \ndetermine the amount of wages to classify as Form W-2 wages \nunder Regulations section 1.199-2(e)(1). Second, you must \nfigure Form W-2 wages that are properly allocable to DPGR.\nYou can figure Form W-2 wages that are properly allocable to \nDPGR using one of the safe harbor methods discussed under \nForm W-2 Wages Allocable to DPGR, below. Also, you can use \nany reasonable method based on all the facts and \ncircumstances.\nYou can use one of the following three methods to determine \nthe amount of wages to classify as Form W-2 wages under \nRegulations section 1.199-2(e)(1).\nUnmodified box method.\nModified box 1 method.\nTracking wages method.\nRelevant Forms W-2. To figure your Form W-2 wages, \ngenerally use the sum of the amounts you properly report for \neach employee on Form W-2, Wage and Tax Statement, for the \ncalendar year ending with or within your tax year. However, do \nnot use any amounts reported on a Form W-2 filed with the \nSocial Security Administration more than 60 days after its due \ndate (including extensions).\nNon-duplication rule. Amounts that are treated as Form W-2 \nwages for a tax year under any method cannot be treated as \nForm W-2 wages for any other tax year. Also, an amount cannot \nbe treated as Form W-2 wages by more than one taxpayer.\nUnmodified box method. Under the unmodified box method, \nForm W-2 wages are the smaller of:\n1.\nThe sum of the amounts reported in box 1 of the relevant \nForms W-2, or\n2.\nThe sum of the amounts reported in box 5 of the relevant \nForms W-2.\nModified box 1 method. Under the modified box 1 method, \nForm W-2 wages are figured as follows.\n1.\nAdd the amounts reported in box 1 of the relevant Forms \nW-2.\n2.\nAdd all the amounts described below and included in \nbox 1 of the relevant Forms W-2.\na.\nAmounts not considered wages for federal income tax \nwithholding purposes.\nb.\nSupplemental unemployment compensation benefits.\nc.\nSick pay or annuity payments from which the recipient \nrequested federal income tax withholding.\n3.\nSubtract (2) from (1).\n4.\nAdd together any amounts reported in box 12 of the \nrelevant Forms W-2 that are properly coded D, E, F, G, or S.\n5.\nAdd (3) and (4).\nTracking wages method. Under the tracking wages method, \nForm W-2 wages are figured as follows.\n1.\nAdd the amounts reported in box 1 of the relevant Forms \nW-2 that are also wages for federal income tax withholding \npurposes.\n2.\nAdd any amounts reported in box 1 of the relevant Forms \nW-2 that are both:\na.\nWages for federal income tax withholding purposes, and\nb.\nSupplemental unemployment compensation benefits.\n3.\nSubtract (2) from (1).\n4.\nAdd together any amounts reported in box 12 of the \nrelevant Forms W-2 that are properly coded D, E, F, G, or S.\n5.\nAdd (3) and (4).\nForm W-2 wages paid to produce a qualified film. Form W-2 \nwages include compensation for services performed in \nAmerican Samoa by actors, production personnel, directors, and \nproducers to produce a qualified film. See Qualified film, earlier, \nfor more information.\nForm W-2 Wages\nAllocable to DPGR\nAfter you calculate Form W-2 wages, as discussed above, you \nmust figure Form W-2 wages that are properly allocable to \nDPGR.\nYou can figure Form W-2 wages that are properly allocable to \nDPGR under one of the following methods.\nSmall business simplified overall method safe harbor.\nWage expense safe harbor.\nAny other reasonable method based on all the facts and \ncircumstances.\nSmall business simplified overall method safe harbor. If \nyou use the small business simplified overall method to allocate \ncosts between DPGR and non-DPGR (see Small Business \nSimplified Overall Method, earlier), you can use the small \nbusiness simplified overall method safe harbor to determine the \namount of Form W-2 wages allocable to DPGR. Under this safe \nharbor method, the amount of Form W-2 wages that is properly \nallocable to DPGR equals the proportion of DPGR to total gross \nreceipts.\nWage expense safe harbor. If you are using either the section \n861 method of cost allocation under Regulations section \n1.199-4(d) or the simplified deduction method under Regulations \nsection 1.199-4(e), you determine the amount of wages properly \nallocable to DPGR by multiplying the amount of wages for the \ntax year by the ratio of your wage expense included in \ncalculating QPAI for the tax year to your total wage expense \nused in calculating your taxable income (or adjusted gross \nincome) for the tax year without regard to any wage expenses \ndisallowed by sections 465, 469, 704(d), or 1366(d).\nIf you use the section 861 method or the simplified deduction \nmethod, you must use the same expense allocation and \napportionment methods that you use to determine QPAI to \nallocate and apportion wage expense for purposes of the safe \nharbor.\n-4-\n",
"Wage expense included in cost of goods sold. After you \ndetermine the amount of wages under the wage expense safe \nharbor, discussed earlier, you can allocate a portion of those \nwages to cost of goods sold by any reasonable method based \non the facts and circumstances. For example, you can include \nwage expense in cost of goods sold in proportion to (a) the \namount of direct labor included in cost of goods sold, or (b) \nsection 263A labor costs (as defined in Regulations section \n1.263A-1(h) (4)(ii)) included in cost of goods sold. See \nRegulations section 1.199-2(e)(2)(ii)(B) for more information.\nMore information. For more information on figuring your Form \nW-2 wages, see Regulations section 1.199-2 and Rev. Proc. \n2006-47. You can find Rev. Proc. 2006-47 on page 869 of I.R.B. \n2006-45 at www.irs.gov/pub/irs-irbs/irb06-45.pdf.\nFor more information on figuring Form W-2 wages properly \nallocable to DPGR, see Regulations section 1.199-2(e)(2).\nSpecific Instructions\nNote. Any wages or other expenses taken into account in \ndetermining the American Samoa economic development credit \nmay not be taken into account in determining the research credit \nunder section 41.\nLine 1\nEnter 60% of the sum of:\nThe aggregate amount of the corporation's qualified wages for \nthe tax year and\nThe allocable employee fringe benefit expenses of the \ncorporation for the tax year.\nQualified wages. Qualified wages are wages paid or incurred \nby the corporation during the tax year in connection with the \nactive conduct of a trade or business in American Samoa to an \nemployee for services performed in American Samoa, but only if \nthe services are performed while the employee's principal place \nof employment is in American Samoa.\nThe term “wages” generally means wages as defined in \nsection 3306(b), but without regard to any dollar limitation \ncontained in that section. For this purpose, section 3306(b) is \napplied as if the term “United States” includes American Samoa. \nSee section 936(i)(1)(D)(ii) for a special rule for agricultural labor \nand railway labor.\nThe wages that are taken into account for the tax year for any \nemployee are limited to 85% of the old-age, survivors, and \ndisability insurance (OASDI) contribution and benefit base for \nthe calendar year in which that tax year begins. The OASDI \ncontribution and benefit base for 2012 is $110,100 and for 2013 \nis $113,700.\nSpecial rules apply to part-time employees and employees \nwhose principal place of employment with the corporation is not \nwithin American Samoa at all times during the tax year.\nFor more information, see section 936(i)(1).\nAllocable employee fringe benefit expenses. The total \namount of employee fringe benefit expenses taken into account \nin figuring the economic-activity limitation is the amount \ndeductible by the corporation in the tax year for:\nEmployer contributions to stock bonus, pensions, \nprofit-sharing, or annuity plans,\nEmployer-provided health or accident plan coverage for the \nemployees, and\nThe cost of life or disability insurance provided to employees.\nNote. Any amount treated as qualified wages may not be \ntreated as an employee fringe benefit expense.\nThe amount of allocable employee fringe benefit expenses \nfor a tax year is equal to the total amount of employee fringe \nbenefit expenses (defined above) multiplied by a fraction. The \nfraction consists of the corporation's qualified wages (defined \nabove) for the tax year, divided by the aggregate amount of \nwages paid or incurred by the corporation during the tax year.\nThe allocable employee fringe benefit expenses cannot \nexceed 15% of the corporation's qualified wages for the tax year.\nFor more information, see section 936(i)(2).\nLines 2–4\nQualified tangible property means any tangible property used \nby the corporation in the active conduct of a trade or business \nwithin American Samoa.\nShort-life qualified tangible property is qualified tangible \nproperty that is 3-year or 5-year property under section 168.\nMedium-life qualified tangible property is qualified tangible \nproperty that is 7-year or 10-year property under section 168.\nLong-life qualified tangible property is qualified tangible \nproperty that is not short-life or medium-life qualified tangible \nproperty.\nFor more information, see section 936(i)(4).\nNote. In the case of any qualified tangible property to which \nsection 168 (as in effect before the date of enactment of the Tax \nReform Act of 1986) applies, any references above to section \n168 are to that Code section as then in effect.\nFor more information on depreciation, see the Instructions for \nForm 4562 and Publication 946.\nLine 7\nInclude the line 7 credit on your income tax return on the same \nline on which the qualified electric vehicle (QEV) credit is \nreported. Enter “Form 5735” and the amount next to the entry \nspace for that line. On the 2012 Form 1120, the QEV is reported \non Schedule J, line 5b. The credit must also be included on the \nQEV line of the following forms as applicable: Form 3800, Form \n6478, Form 8835, Form 8860, Form 8910, Form 8911, and Form \n8912.\nPaperwork Reduction Act Notice. We ask for the information \non this form to carry out the Internal Revenue laws of the United \nStates. You are required to give us the information. We need it to \nensure that you are complying with these laws and to allow us to \nfigure and collect the right amount of tax.\nYou are not required to provide the information requested on \na form that is subject to the Paperwork Reduction Act unless the \nform displays a valid OMB control number. Books or records \nrelating to a form or its instructions must be retained as long as \ntheir contents may become material in the administration of any \nInternal Revenue law. Generally, tax returns are confidential, as \nrequired by section 6103.\nThe time needed to complete and file this form will vary \ndepending on individual circumstances. The estimated average \ntime is: Recordkeeping, 7 hr., 53 min.; Learning about the \nlaw or the form, 2 hr., 17 min.; and Preparing, copying, \nassembling, and sending the form to the IRS, 2 hr., 32 min.\nIf you have comments concerning the accuracy of these time \nestimates or suggestions for making this form simpler, we would \nbe happy to hear from you. See the instructions for the tax return \nwith which this form is filed.\n-5-\n"
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f5735.pdf
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0113 Form 5735 (PDF)
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https://www.irs.gov/pub/irs-pdf/f5735.pdf
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[
"Form 5735\n(Rev. January 2013) \nDepartment of the Treasury \nInternal Revenue Service \nAmerican Samoa Economic Development Credit\n▶ See the separate instructions. \n▶ Attach to the corporation’s tax return. \nOMB No. 1545-0217 \nFor calendar year 20 \n, or other tax year beginning \n, 20 \n, and ending \n, 20 \n. \nName \nEmployer identification number \nCaution: The corporation must meet the qualified production activities income requirement (see instructions) to qualify \nfor the American Samoa economic development credit. \n1\nEnter 60% of qualified compensation\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n1\n2\nEnter 15% of the depreciation deduction for short-life qualified tangible property .\n.\n.\n.\n.\n.\n. \n2\n3\nEnter 40% of the depreciation deduction for medium-life qualified tangible property .\n.\n.\n.\n.\n. \n3\n4\nEnter 65% of the depreciation deduction for long-life qualified tangible property .\n.\n.\n.\n.\n.\n. \n4\n5\nTentative credit. Add lines 1 through 4 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\n6\nTotal U.S. income tax against which credit is allowed .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n6\n7\nAmerican Samoa economic development credit. Enter the smaller of line 5 or line 6. Enter the\nresult here and on Form 1120, Schedule J, line 5b, or the corresponding line of other returns (see \ninstructions).\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n7\nFor Paperwork Reduction Act Notice, see the separate instructions. \nCat. No. 12090G \nForm 5735 (Rev. 1-2013) \n"
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f5471so.pdf
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1205 Form 5471 (Schedule O) (PDF)
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https://www.irs.gov/pub/irs-pdf/f5471so.pdf
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[
"SCHEDULE O \n(Form 5471) \n(Rev. December 2012) \nDepartment of the Treasury \nInternal Revenue Service \nOrganization or Reorganization of Foreign \nCorporation, and Acquisitions and \nDispositions of its Stock \nInformation about Schedule O (Form 5471) and its instructions is at www.irs.gov/form5471\n▶ Attach to Form 5471.\nOMB No. 1545-0704 \nName of person filing Form 5471 \nIdentifying number \nName of foreign corporation \nEIN (if any) \nReference ID number (see instructions) \nImportant: Complete a separate Schedule O for each foreign corporation for which information must be reported. \nPart I \nTo Be Completed by U.S. Officers and Directors \n(a) \nName of shareholder for whom \nacquisition information is reported \n(b) \nAddress of shareholder \n(c) \nIdentifying number \nof shareholder \n(d) \nDate of original \n10% acquisition \n(e) \nDate of additional \n10% acquisition \nPart II \nTo Be Completed by U.S. Shareholders \nNote: If this return is required because one or more shareholders became U.S. persons, attach a list showing the names \nof such persons and the date each became a U.S. person. \nSection A—General Shareholder Information \n(a) \nName, address, and identifying number of \nshareholder(s) filing this schedule \n(b) \nFor shareholder’s latest U.S. income tax return filed, indicate: \n(1) \nType of return \n(enter form number) \n(2) \nDate return filed \n(3) \nInternal Revenue Service Center \nwhere filed \n(c) \nDate (if any) shareholder \nlast filed information \nreturn under section 6046 \nfor the foreign corporation \nSection B—U.S. Persons Who Are Officers or Directors of the Foreign Corporation \n(a) \nName of U.S. officer or director \n(b) \nAddress \n(c) \nSocial security number \n(d) \nCheck appropriate \nbox(es) \nOfficer \nDirector \nSection C—Acquisition of Stock \n(a) \nName of shareholder(s) filing this schedule \n(b) \nClass of stock \nacquired \n(c) \nDate of \nacquisition \n(d) \nMethod of \nacquisition \n(e) \nNumber of shares acquired \n(1) \nDirectly \n(2) \nIndirectly \n(3) \nConstructively \nFor Paperwork Reduction Act Notice, see the Instructions for Form 5471. \nCat. No. 61200O \nSchedule O (Form 5471) (Rev. 12-2012) \n",
"Schedule O (Form 5471) (Rev. 12-2012) \nPage 2 \n(f) \nAmount paid or value given \n(g) \nName and address of person from whom shares were acquired \nSection D—Disposition of Stock \n(a) \nName of shareholder disposing of stock \n(b) \nClass of stock \n(c) \nDate of disposition \n(d) \nMethod \nof disposition \n(e) \nNumber of shares disposed of \n(1) \nDirectly \n(2) \nIndirectly \n(3) \nConstructively \n(f) \nAmount received \n(g) \nName and address of person to whom disposition of stock was made \nSection E—Organization or Reorganization of Foreign Corporation \n(a) \nName and address of transferor \n(b) \nIdentifying number (if any) \n(c) \nDate of transfer \n(d) \nAssets transferred to foreign corporation \n(1) \nDescription of assets \n(2) \nFair market value \n(3) \nAdjusted basis (if transferor was \nU.S. person) \n(e) \nDescription of assets transferred by, or notes or \nsecurities issued by, foreign corporation \nSection F—Additional Information \n(a) If the foreign corporation or a predecessor U.S. corporation filed (or joined with a consolidated group in filing) a U.S. income tax return for \nany of the last 3 years, attach a statement indicating the year for which a return was filed (and, if applicable, the name of the corporation filing \nthe consolidated return), the taxable income or loss, and the U.S. income tax paid (after all credits). \n(b) List the date of any reorganization of the foreign corporation that occurred during the last 4 years while any U.S. person held 10% or \nmore in value or vote (directly or indirectly) of the corporation’s stock ▶\n(c) If the foreign corporation is a member of a group constituting a chain of ownership, attach a chart, for each unit of which a shareholder\nowns 10% or more in value or voting power of the outstanding stock. The chart must indicate the corporation’s position in the chain of\nownership and the percentages of stock ownership (see instructions for an example). \nSchedule O (Form 5471) (Rev. 12-2012) \n"
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f8038tc.pdf
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0610 Form 8038-TC (PDF)
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https://www.irs.gov/pub/irs-pdf/f8038tc.pdf
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[
"Form 8038-TC\n(Rev. November 2012)\nDepartment of the Treasury \nInternal Revenue Service\nInformation Return for Tax Credit Bonds \nand Specified Tax Credit Bonds\n▶ Under Internal Revenue Code section 149(e)\n▶ See separate instructions.\nOMB No. 1545-2160\nPart I\nReporting Authority\nCheck if Amended Return ▶\n1 Issuer’s name\n2 Issuer’s employer identification number (EIN)\n3\nName of person (other than the issuer) with whom the IRS may communicate about this return (see instructions)\n4 Report number (For IRS Use Only)\n5 Number and street (or P.O. Box if mail is not delivered to street address)\n6\nCity, town, or post office, state, and ZIP code\n7 Date of issue (MM/DD/YYYY)\n/\n/\n8\nName of issue\n9 CUSIP number\n10\nName and title of officer of issuer whom the IRS may call for more information (see instructions) \n11 Telephone number of officer or other person\nPart II\nType of Issue\n1 \nTax Credit Bond Code (See instructions, enter three digit code for the type of issue) .\n.\n.\n.\n.\n.\n.\n.\n.\n ▶\n2\nDescription:\n3\nHas the issuer made an irrevocable election to apply section 6431(f)?\nYes\nNo\n4\nEnter the first interest payment date (MM/DD/YYYY) ▶\n/\n/\n5\nInterest payment date frequency (Check box; see instructions and attach debt service schedule):\na \nannual,\nb\nsemi-annual,\nc\nquarterly,\nd\nmonthly, or\ne\nother\nf\nIf line 5e above is checked, please describe the payment frequency:\nPart III\nDescription of Obligations\n1 \nIssue price \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1\n2\nStated redemption price at maturity .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2\n3\nFinal maturity date (enter date MM/DD/YYYY) ▶\n/\n/\n4\nApplicable credit rate .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n4\n.\n%\n5\nMaximum term .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\n.\nyears\n6\nPermitted Sinking Fund Yield \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n6\n.\n%\n7\nEnter the interest rate on the bonds .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7\n.\n%\n8\nIf the issue is a variable rate issue, check box 8a ▶\nEnter the frequency rates are reset 8b ▶\n.\nPart IV\nProceeds of Issue (Including underwriters' discount)\nAmount\n1\nSale Proceeds\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1\n2\nProceeds used for bond issuance cost (including underwriters' discount) .\n.\n.\n.\n.\n.\n.\n.\n2\n3\nEstimated investment proceeds\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3\n4\nExpected available project proceeds (Subtract line 2 from line 1 and add line 3) (see instructions) \n4\n5\n(For IRS Use Only) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\n 6\nOther (describe) ▶\n6\n7\nTotal proceeds (Add lines 4 through 6)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7\nPart V\nDescription of Use of Proceeds for Qualified Purpose Expenditures\nAmount\n1a Loans to qualified borrower(s) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1a\nb\nIf a written loan commitment was obtained prior to issue date, check box ▶\nc\nName of borrower ▶\nd\nEIN of borrower ▶\n(Attach list if more than one)\n2\nLand\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2\n3\nBuildings and structures .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3\n4\nFurniture or equipment with recovery period of more than 5 years .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4\n5\nFurniture or equipment with recovery period of 5 years or less \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\n6\nGrants .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. \n6\n7\nDemonstration projects .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7\n8\nPublic education campaigns \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n8\n9\nRepairs or other rehabilitation expenditures \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n9\nFor Paperwork Reduction Act Notice, see separate instructions.\nCat. No. 53394V\nForm 8038-TC (Rev. 11-2012)\n",
"Form 8038-TC (Rev. 11-2012)\nPage 2 \nDescription of Use of Proceeds for Qualified Purpose Expenditures (Continued)\n10\nDeveloping course materials and/or staff training expenditures .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n10\n11\nPay principal, interest, or premiums on qualified bonds .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n11\n12\nRefinance a qualified indebtedness \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n12\n13\nOther (describe) ▶\n13\n14\nTotal qualified purpose expenditures (Sum of lines 1a through 13)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n14\n15\nPercentage of total proceeds to be used for qualified purpose expenditures (Divide line\n14 in Part V by line 7 in Part IV, multiply result by 100)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n15\n.\n%\n16\nIf some portion of proceeds was used to reimburse issuer for amounts paid for a qualified \npurpose, enter the amount of reimbursement .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n16\n17\nIf some portion of proceeds was to reimburse issuer for amounts paid for a qualified purpose, \nenter the date the official intent was adopted (MM/DD/YYYY) ▶\n/\n/\n17\nPart VI\nAllocation of National, State, Tribal, or Local Bond Limitation Amount \n(Enter source and amount of allocation and attach copy of certificate)\nAmount\n1a Volume cap allocation amount .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1a\nYear of Allocation\n.\n.\n.\n.\n.\nAmount of Carryforward .\n.\n.\nb\nNational, check box \n.\n.\n.\n.\n.\n.\n.\n ▶\nLocal, check box \n.\n.\n.\n.\n.\n ▶\nc\nState, check box \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n ▶\nd\nTribal, check box \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n ▶\n2\nIf box 1c is checked, enter State abbreviation .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶\nPart VII\nMiscellaneous \n1\nArbitrage questions:\na If there is a reserve or sinking fund that is expected to repay the issue at maturity, check box .\n.\n.\n.\n.\n.\n.\n.\n. ▶\nb\nIf 1a is checked and the reserve or sinking fund is funded in equal periodic installments, check box .\n.\n.\n.\n.\n.\n. ▶ \nc\nIf either the funding of the reserve or sinking fund is expected to result in an amount greater than the amount necessary \nto repay the issue; or, if the yield on such fund is greater than the permitted sinking fund yield from line 6, Part III, check \nbox .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶ \nd\nIf the issuer established written procedures to monitor the requirements of section 148 with respect to these bonds, \ncheck box \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶ \n2\nIf all federal, state, and local requirements governing conflicts of interest are satisfied with respect to this issue, check box .\n. ▶\n3\nIf the entitlements to credits with respect to this bond issue are expected to be stripped, check box .\n.\n.\n.\n.\n.\n. ▶ \n4\nIf the issuer established written procedures to ensure that all nonqualified bonds at the end of the applicable period are \nredeemed within 90 days, check box .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶\n5\nOther: .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶ \nSignature \nand \nConsent\nUnder penalties of perjury, I declare that I have examined this return, and accompanying schedules and statements, and to the best of my knowledge and \nbelief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return information, as necessary to process \nthis return, to the person(s) that I have authorized above.\n▲\nSignature of issuer's authorized representative\nDate\n▲\nType or print name and title\nPaid \nPreparer \nUse Only\nPrint/Type preparer’s name\nPreparer's signature\nDate\nCheck if \nself-employed\nPTIN\nFirm’s name ▶\nFirm's address ▶\nFirm's EIN ▶\nPhone no.\nPart VIII\nConsent to Disclosure of Certain Information From This Return\n1\nDoes the issuer give the IRS consent to publish, through a website or in a publication, its name and address, employer \nidentification number, name and description of bond issue, date of issuance, CUSIP number, issue price, final maturity date, stated \nredemption price at maturity, applicable credit rate, and maximum term, to assist in the proper reporting of interest, tax credits, or \nother benefits under IRC section 6049 and Regulations thereunder \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n▶\nYes\nNo\nUnder penalties of perjury, I declare that I am an officer of the above named issuer and that I am authorized to give consent on behalf of the above named issuer for the IRS \nto publish the items of information described in line 1 of Part VIII of this form to assist in the reporting obligations under IRC section 6049.\nSign \nHere\n▲\nSignature \nDate\n▲\nType or print name and title\nForm 8038-TC (Rev. 11-2012)\n",
"Form 8038-TC (Rev. 11-2012)\nPage 3 \nIssuer's name: \nIssuer's employer identification number (EIN): \nSchedule A\nSchedule for New Clean Renewable Energy Bonds (New CREBs) \n▶ Under Internal Revenue Code sections 54A and 54C \n▶ See separate instructions\nTax Credit Bond Code\n102\nPart I\nIssuer Questions\nYes\nNo\n1\nIs the issuer a public power provider? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1\n2\nIs the issuer a cooperative electric company? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2\n3\nIs the issuer a governmental body?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3\n4\nIs the issuer a clean renewable energy bond lender? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4\n5\nIs the issuer a not-for-profit electric utility which has received a loan/loan guarantee under the Rural \nElectrification Act? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\n 6\nHave proceeds been used to acquire existing facilities? (see instructions) .\n.\n.\n.\n.\n.\n.\n.\n.\n6\n7\nHave proceeds been used to refinance existing facilities? (see instructions)\n.\n.\n.\n.\n.\n.\n.\n.\n7\n8\nIs the issue date of the issue on or before the date that is 3 years after the volume cap allocation\ndate? (see instructions)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n8\n9\n9\nHas the issuer designated these bonds as new CREBs for purposes of section 54C? .\n.\n.\n.\n.\nPart II\nAmount\n1\n1\n(For IRS Use Only) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\nPart III\nList of Qualified Renewable Energy Facilities\nList the type of qualified renewable energy facilities (see instructions) to be financed by the bonds, the location, the owner of such \nfacility, the owner's EIN, and the amount of available project proceeds to be used for that facility. (If more than one, attach statement)\nType of Facility:\nLocation of Facility:\nOwner's Name:\nOwner's EIN:\nAmount of Available Project Proceeds $: \nSchedule B\nSchedule for Qualified Energy Conservation Bonds (QECBs) \n▶ Under Internal Revenue Code sections 54A and 54D \n▶ See separate instructions\nTax Credit Bond Code\n103\nPart I\nIssuer and Project Questions\nYes\nNo\n1\nHas the issuer designated these bonds as QECBs for purposes of section 54D?\n.\n.\n.\n.\n.\n.\n1\n2\nHas the allocation been reallocated from a large local government to a State?\n.\n.\n.\n.\n.\n.\n.\n2\n3\nIs the issuer a large local government?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3\n4\nIs the issuer an Indian tribal government?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4\n5\nAre all proceeds to be used within the jurisdiction of the issuer? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\n 6\nIf the issuer issued the bonds based on a volume cap allocation received by another authorized\nentity that allocated volume cap to the issue, check “Yes.” If not, check “No.” Provide the name of\nsuch authorized entity. Attach statement if more than one entity's volume cap is used. (see \ninstructions) \n6\nPart II\nAmount\n1\n(For IRS Use Only) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1\nPart III\nList of Conservation Purposes, Location of the Facilities, Amount of Proceeds Used for the Purpose, \nPrivate Activity User, and Private User's EIN\n1\nList the type of qualified conservation purpose described under section 54D(f) financed with the proceeds of the bonds, the\nlocation of the facility financed with the proceeds of the bond, and the amount of available project proceeds to be used for the\nqualified conservation purpose. If the bonds are private activity bonds, provide the name and EIN of all private users. (If the\nissuer is issuing bonds for more than one purpose or facility, attach statement) \nType of qualified conservation purpose:\nLocation of facility financed with bond proceeds:\nAmount of proceeds to be used for this purpose $: \nAre the bonds private activity bonds? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. ▶\nYes\nNo\nIf “Yes,” provide the name and EIN of each private user\nForm 8038-TC (Rev. 11-2012)\n",
"Form 8038-TC (Rev. 11-2012)\nPage 4 \nIssuer's name: \nIssuer's employer identification number (EIN): \nSchedule C\nSchedule for Qualified Zone Academy Bonds (QZABs) \n \n▶ Under Internal Revenue Code sections 54A and 54E \n▶ See separate instructions\nTax Credit Bond Code\n104\nPart I\nAcademy and Issuer Information\nYes\nNo\n1\nWas the school located in an empowerment zone at the time the bonds were issued?.\n.\n.\n.\n.\n1\n2\nWas the school located in an enterprise community at the time the bonds were issued? .\n.\n.\n.\n2\n3\nIs it expected that at least 35% of students attending the school or program will be eligible for free \nor reduced-cost lunches under the school lunch program established by the National School Lunch \nAct? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3\n4\nWas the comprehensive educational plan of the school or program approved by the eligible local \neducation agency? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4\n5\nIs a carryover of unused limitation being used for this issue? If “Yes,” enter the year in which the \nlimitation arose. (see instructions) ▶\n5\n6\nAre the bonds issued by a state or local government within the jurisdiction of which the academy is \nlocated?\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n6\n7\nDoes the issuer have written commitments from private business entities to make qualified private \nbusiness contributions having a present value of not less than 10% of the proceeds of this issue?\n7\n8\nWas the bond issuance approved in writing by the eligible local education agency? \n.\n.\n.\n.\n.\n8\n9\nHave these bonds been designated by the issuer as QZABs for purposes of section 54E? .\n.\n.\n9\n10\nEnter the name of the eligible local education agency:\n10\nPart II\nDescription of the Private Business Contribution \n(Enter the value of the amount of contribution in each type)\nAmount\n1\nEquipment\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1\n2\nTechnical assistance\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2\n3\nServices of donor's employees as volunteers .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n3\n4\nOpportunities for students outside of the academy\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4\n5\nOther: \n \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\nPart III\nPrivate Business Contributor Information (Attach a statement if more than five donors)\n1a Enter the name of the first donor:\nb\nEnter the EIN of the first donor:\n2a Enter the name of the second donor:\nb\nEnter the EIN of the second donor:\n3a Enter the name of the third donor:\nb\nEnter the EIN of the third donor:\n4a Enter the name of the fourth donor:\nb\nEnter the EIN of the fourth donor:\n5a Enter the name of the fifth donor:\nb\nEnter the EIN of the fifth donor:\nForm 8038-TC (Rev. 11-2012)\n",
"Form 8038-TC (Rev. 11-2012)\nPage 5 \nIssuer's name: \nIssuer's employer identification number (EIN): \nSchedule D\nSchedule for Qualified School Construction Bonds (QSCBs) \n▶ Under Internal Revenue Code sections 54A and 54F \n▶ See separate instructions\nTax Credit Bond Code\n105\nPart I\nUse of Proceeds\nYes\nNo\n1\nAre the proceeds to be used for an Indian school? (see instructions)\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1\n2\nAre all proceeds to be used within the jurisdiction of the issuer? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n2\n3\nHave these bonds been designated as QSCBs by the issuer for purposes of section 54F? .\n.\n.\n3\n4\nAre the proceeds of the issue to be spent on costs of acquisition of furniture or equipment? If the\nanswer is “No,” skip line 5 \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n4\n5\nIs such furniture or equipment to be used in portions of the public school facility being constructed, \nrehabilitated, or repaired with the proceeds of the issue? .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n5\n6\nAre the proceeds of the issue to be spent on the costs of land acquisition? If the answer is “No,”\nskip line 7 .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n6\n7\nAre proceeds of the issue also to be spent on the costs of construction of a public school facility on\nsuch land? \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n7\nPart II\nAmount\n1\n(For IRS Use Only) .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n1\nPart III\nIssuer Information (Does not apply to issuers that are Indian tribal governments.)\n1\nIf the issuer of the bonds is not the local educational agency in the jurisdiction of which the public school facility is located, \nplease provide the name of such local educational agency. Attach statement if more than one. (see instructions) \n2\nIf the issuer issued the bonds based on a volume cap allocation received by another authorized entity (that allocated volume \ncap to the issue), provide the name of such authorized entity. Attach statement if more than one entity's volume cap is used. \n(see instructions)\nForm 8038-TC (Rev. 11-2012)\n"
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f14402.pdf
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1112 Form 14402 (PDF)
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https://www.irs.gov/pub/irs-pdf/f14402.pdf
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[
"Catalog Number 59694G\nwww.irs.gov\nForm 14402 (11-2012)\nForm 14402 \n(November 2012)\nDepartment of the Treasury - Internal Revenue Service\nInternal Revenue Code (IRC) Section 6702(d) \nFrivolous Tax Submissions Penalty Reduction\nIRC 6702(d) allows for a reduction in the penalty imposed by IRC section 6702(a) or 6702(b). The amount of a penalty (or the combined \namount of multiple penalties) under IRC section 6702(a) or (b) will be reduced to $500 if you meet all of the requirements described in \nRevenue Procedure 2012-43. By filing and signing this form, you are submitting a written request for IRC 6702(d) penalty reduction.\nSection I - Requestor’s Information\nName\nTaxpayer Identification Number\nList any other names used in prior six years\nContact number\nBest hours to call \n** If you and your spouse jointly filed a frivolous return or submission, each of you has been assessed a section 6702 penalty. Each of \nyou must submit a separate request for reduction of your section 6702 penalty liabilities.\nSection II - Eligibility Requirements\nAnswer each question by marking “YES” or “NO”\nYES\nNO\n1. Have you previously received a IRC section 6702 penalty reduction\n2. Has the United States filed suit against you either to collect your IRC section 6702(a) or (b) penalty liabilities or to \nreduce any assessment of your section 6702 penalty liabilities to judgment\n3. Have you entered into a partial payment installment agreement with the IRS\n4. Have you entered into a closing agreement with the IRS under IRC section 7121 with respect to your penalty or \npenalties under section 6702\n5. Do you have an open bankruptcy case\nIf you answered “YES” to any question (1-5), you are NOT eligible for a penalty reduction. \n6. Have you filed all federal tax returns due for the six years prior to the date of the request\n7. Have you (a) fully paid all of your federal tax liabilities, including interest and penalties other than the IRC section \n6702 penalty liabilities that are the subject of the request or (b) entered into an installment agreement to fully pay all of \nyour federal tax liabilities due, including any section 6702 penalty liabilities\n8. If you are an employer, have you made all required deposits of Federal employment taxes under subtitle C of the \nCode for the current quarter and prior two quarters\nIf you answered “NO” to any question (6-8), you are NOT eligible for a penalty reduction.\n9. Have you submitted an offer-in-compromise (i.e. Form 656) to the IRS\nIf you answered “YES” to question 9, you are NOT eligible for a penalty reduction unless (circle 1, 2, or 3 if \napplicable): \n1-you have withdrawn the offer in writing, \n2-the IRS has returned the offer to you without accepting it, or \n3-the IRS has rejected the offer (and you are not pursing an administrative appeal of the rejection).\n",
"Page 2\nCatalog Number 59694G\nwww.irs.gov\nForm 14402 (11-2012)\nSection III - Payment Information (minimum payment is $250.00 unless you are in compliance with a full payment \ninstallment agreement)\nYES\nNO\n1. Have you made an electronic payment or included a payment of at least $250 (and up to $500) with this request\nAmount enclosed\nCheck number\nElectronic payment amount\nPayment date\n2. Have you entered into an approved installment agreement with the IRS\nIf you answered “NO” to both questions 1 and 2, then you will NOT receive a reduction of your section 6702 \npenalty liabilities.\nSection IV - Request For Penalty Reduction Relief\nRequested Penalty Reduction \nTax form number(s)\nTax year(s)\nSection V - Declaration Under Penalties Of Perjury\nI understand and agree that if a reduction is granted, I will not be entitled to another reduction if the IRC section 6702 penalty is \nassessed again. \n \nIf I am under an installment agreement, I understand that if I meet all the requirements and my request for reduction is approved, the \npenalty or penalties will be reduced only upon completion of all payments required to satisfy all outstanding tax liabilities other than the \nsection 6702 penalties that exceed $500 and are the subject of this request. In addition, if prior to completion of these payments, I am \ndeclared in default of an installment agreement, the penalty will not be reduced. \n \nI understand that any request for reduction of my section 6702 penalty liabilities will be rejected if it does not meet all of the conditions \nof Revenue Procedure 2012-43, asserts positions identified as frivolous under section 6702(c), or is determined to have been made \nwith an intention to delay or impede tax administration. I understand that I will be notified of the rejection and that I cannot appeal the \nrejection of my request to the IRS Office of Appeals for any reason. If my reduction request is rejected, I understand that any payment \nsubmitted with this request will be applied against any outstanding section 6702 penalty liability due. \n \nUnder penalties of perjury, I declare that I have filed all returns (including any accompanying schedules and statements) and paid or \nentered into a full payment installment agreement to pay all taxes and liabilities as described in Revenue Procedure 2012-43. To the \nbest of my knowledge and belief, the information on this form is true, correct, and complete.\nSignature\nDate signed\nPrivacy Act and Paperwork Reduction Act Notice\nWe ask for the information on this form to carry out the Internal Revenue Laws of the United States. Section 6702(d) and Revenue Procedure 2012-43 \ndescribe the conditions under which you may request a reduction of assessed section 6702 penalty liabilities. Section 6109 requires that you provide \nyour taxpayer identification number (TIN). You may use Form 14402 to request a section 6702 penalty reduction. You are required to provide the \ninformation requested on this form only if you wish to have your unpaid section 6702 penalty liabilities reduced. We need this information to ensure that \nyou have met the requirements of section 6702(d) and Revenue Procedure 2012-43. If you do not provide this information, your request will be denied. \nYou may be subject to civil and criminal penalties if you provide false or fraudulent information. \n \nWe may disclose this information to the Department of Justice for civil or criminal litigation, and to cities, states, and the District of Columbia for use in \nadministering their tax laws. We may also disclose this information to other countries under a tax treaty, to Federal and state agencies to enforce \nFederal nontax criminal laws, or to Federal law enforcement and intelligence agencies to combat terrorism. Generally, tax returns and tax return \ninformation are confidential, as required by section 6103. \n \nYou are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB \ncontrol number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the \nadministration of any Internal Revenue law. \n \nThe time needed to complete this form will vary depending on particular circumstances. The estimated average time is: \nRecordkeeping…………………………………………… \nLearning about the law of the form……………………… \nPreparing the form………………………………………. \nCopying, assembling, and sending the form to the IRS….\n",
"Page 3\nCatalog Number 59694G\nwww.irs.gov\nForm 14402 (11-2012)\nInstructions for Form 14402, Internal Revenue Code (IRC) Section 6702(d) \nFrivolous Tax Submissions Penalty Reduction\nGeneral Instructions\nPurpose of Form \nUse Form 14402 to request a reduction in your unpaid section 6702 penalty liabilities. Section 6702(d) of the Internal Revenue Code \nauthorizes the Internal Revenue Service (IRS) to reduce the amount of the frivolous tax submissions penalty assessed under section \n6702(a) or (b) if the IRS determines that a reduction would promote compliance with and administration of the Federal tax laws. \nRevenue Procedure 2012-43 describes the requirements you must meet to qualify for reduction. \n \nThe Service will treat a written statement that includes the same information prescribed by Form 14402 and these instructions as the \nsubmission of Form 14402 if the statement is filed in accordance with Revenue Procedure 2012-43 and these instructions. \n \nDo not use Form 14402 if you want to challenge the merits of a section 6702 penalty assessment. Other procedures may be available \nto challenge the merits, such as paying the penalty and filing a refund claim or raising the issue in a Collection Due Process hearing. \n \nDo not use Form 14402 to request a refund of any section 6702 penalty liabilities that you have already paid in full or in part. If you have \nfully paid any assessed section 6702 penalty liabilities, you are not eligible for reduction. \n \nWho Can File \nAny person may use Form 14402 to request a reduction of any unpaid section 6702 penalty liabilities. \n \nWhere to File \nTo request a reduction of your unpaid section 6702 penalty liabilities, you must mail a completed Form 14402 to the following address. \nInternal Revenue Service \nFrivolous Return Program \n1973 N Rulon White Blvd. M/S 4450 \nOgden, UT 84404\nSpecific Instructions\nSection I – Requestor’s Information. You must provide your name, Social Security Number (SSN) or other Tax Identification Number, \nand contact information so we can access your account and contact you if we need to clarify any of the information you provide on the \nform. \n \nSection II – Eligibility Requirements. You must check either “YES” or “NO” to every question in this section to determine whether you \nmeet the requirements described in Revenue Procedure 2012-43. \n \nQuestion 1 \nIf we have previously reduced any of your section 6702 penalty liabilities, then you are not eligible for another reduction of any section \n6702 penalty liabilities. \n \nQuestion 2 \nIf the United States has filed suit against you either to collect your section 6702 penalty liabilities or to reduce any assessment of your \nsection 6702 penalty liabilities to judgment, then you are not eligible for a section 6702 penalty reduction. Unless you have been served \na complaint filed by the Department of Justice in United States District Court to collect your unpaid tax liabilities, you should check “NO” \nto this question. \n \nQuestion 3 \nIf you have entered into a partial payment installment agreement with us, then you are not eligible for a section 6702 penalty reduction \nbecause successful completion of the agreement will result in you paying less than the full amount of your federal tax liabilities. All \ntaxpayers are expected to immediately pay their tax liabilities in full. When immediate payment is not possible, we may enter into \nagreements under section 6159 that allow taxpayers to pay their tax liabilities in installments over a prescribed period of time. \nGenerally, we have ten years to collect tax liabilities after they are assessed. If taxpayers cannot fully pay their liabilities before this \ncollection statute of limitations period expires, we may enter into partial payment installment agreements that allow taxpayers to pay as \nmuch of their tax liabilities as possible. \n \nQuestion 4 \nIf you have entered into a closing agreement with the IRS under section 7121 (for example, Form 906, Closing Agreement on Final \nDetermination Covering Specific Matters) with respect to your section 6702 penalty liabilities, then you are not eligible for a section \n6702 penalty reduction. \n \nQuestion 5 \nIf you have an open bankruptcy case, then you are not eligible for a section 6702 penalty reduction. A bankruptcy case is considered \nopen from the date you file a bankruptcy petition to the date the case is dismissed or you receive a discharge.\n",
"Page 4\nCatalog Number 59694G\nwww.irs.gov\nForm 14402 (11-2012)\nQuestion 6 \nIf you have not filed all federal tax returns due for the six years prior to the date of your reduction request, then you are not eligible for a \nsection 6702 penalty reduction. This requirement means a person must file all individual returns and all returns for any entity in which \nthe person has a controlling interest. For example, an individual taxpayer who requests a section 6702 penalty reduction on May 15, \n2012 must have filed valid tax returns for tax years 2011, 2010, 2009, 2008, 2007 and 2006. Refer to Revenue Procedure 2012-43 for \nmore information about the filing compliance requirements. \n \nQuestion 7 \nYou are not eligible for a section 6702 penalty reduction unless you have paid all your federal tax liabilities other than section 6702 \npenalties and interest thereon or you have entered into an installment agreement to fully pay all your federal tax liabilities including the \nsection 6702 penalty liabilities. If you have entered into a full payment installment agreement, you must continue timely making your \ninstallment agreement payments to receive a section 6702 penalty reduction. Your section 6702 penalty liabilities will be reduced only \nwhen you complete all payments required to satisfy all outstanding tax liabilities other than the section 6702 penalties that are the \nsubject of the request for reduction. If you fail to make all payments required by your full payment installment agreement, your section \n6702 penalty liabilities will not be reduced. \n \nIf you have already fully paid all federal tax liabilities, including interest and penalties other than the section 6702 penalty liabilities, then \nyou are eligible for a section 6702 penalty reduction. You should not submit this form if you have already fully paid your section 6702 \nliabilities because you have no outstanding section 6702 penalty liabilities to reduce. \n \nQuestion 8 \nIf you are an employer that has not made all required deposits of Federal employment taxes under subtitle C of the Code for the current \nquarter and the prior two quarters, then you are not eligible for a section 6702 penalty reduction. \n \nQuestion 9 \nIn general, if you have submitted an offer-in-compromise to the IRS under section 7122 that includes any section 6702 penalty, then \nyou are ineligible for a section 6702 penalty reduction because all of your unpaid federal tax liabilities, including any unpaid section \n6702 penalties, will be considered and may be reduced under the offer-in-compromise determination. \n \n**Note. You may still be eligible for a section 6702 penalty reduction if you have withdrawn your offer in writing, we have returned your \noffer to you without accepting it, or we rejected your offer and you are not pursuing an administrative appeal of the rejection. \n \nSection III – Payment Information. If you meet the requirements described in Revenue Procedure 2012-43, then we will reduce your \ntotal unpaid section 6702 penalty liabilities to $500. You must pay this $500 balance in one of two ways. \n \nFirst, you may submit a payment of at least $250 (but not more than $500) with your request for reduction. You may submit a payment \nof the entire $500 balance. Your payment will be applied to your unpaid section 6702 penalty liabilities, whether or not we grant your \nrequest for reduction. \n \n**Note. If you choose to pay the entire $500 balance with your request for reduction and we grant your request, any interest that has \naccrued on your section 6702 penalty liabilities will be abated. \n \nIf you choose to pay less than $500 and we grant your request for a penalty reduction, you will remain liable for the remaining balance \nof the reduced penalties until the balance is satisfied. Interest will continue to accrue on the remaining balance of the reduced penalties \nfrom the date we assessed the earliest unpaid section 6702 penalty falling under these procedures. You must pay the remaining \nbalance of the reduced penalties (plus interest). If you fail to pay the remaining balance, we may use any available remedy to collect the \nbalance (plus interest). \n \n**Caution. You must submit a payment of at least $250 with your request for reduction even if you have, prior to filing your request for \nreduction, paid either voluntarily or by an overpayment offset, a portion of the section 6702 penalty liabilities that are the subject of your \nrequest for reduction. \n \nSecond, if you have entered into and are in compliance with an installment agreement to fully pay all assessed federal tax liabilities \n(including the section 6702 penalty liabilities) for which the period for collection under section 6502 remains open, you may pay the \nreduced section 6702 penalty of $500 as part of the installment agreement. Your section 6702 penalty liabilities will be reduced only \nupon completion of all payments required to satisfy all unpaid tax liabilities other than the section 6702 penalties that are the subject of \nthe request for reduction. We will notify you when you have paid all of your unpaid federal tax liabilities plus the $500 remaining balance \nof your reduced section 6702 penalty liabilities. If you fail to continue timely making all payments required by your full payment \ninstallment agreement, your section 6702 penalty liabilities will not be reduced. \n \n**Note. If you pay the $500 balance as part of your full payment installment agreement, any interest that has accrued on your unpaid \nsection 6702 penalty liabilities will be abated. \n"
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p4639.pdf
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0911 Publ 4639 (PDF)
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https://www.irs.gov/pub/irs-pdf/p4639.pdf
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[
"Chief Counsel\nPROCEDURE & \nADMINISTRATION\nPublication 4639 Catalog Number 50891P (Rev. 10-2012) Department of the Treasury Internal Revenue Service www.irs.gov\n",
"i\nTABLE OF CONTENTS \nTo the Reader:................................................................................................................ iii\nCHAPTER 1 ................................................................................................................ 1-1\nPART I: HISTORY AND OVERVIEW – I.R.C. § 6103........................................... 1-1\nPART II: CIVIL DAMAGES FOR UNAUTHORIZED INSPECTION AND \nDISCLOSURE I.R.C. § 7431................................................................ 1-19\nPART III: CRIMINAL LIABILITY FOR WILLFUL UNAUTHORIZED \nINSPECTION AND DISCLOSURE....................................................... 1-48\nCHAPTER 2 ................................................................................................................ 2-1\nPART I: DEFINITIONS .......................................................................................... 2-1\nPART II: DISCLOSURES TO PERSONS WITH A MATERIAL \nINTEREST I.R.C. § 6103(e) ................................................................... 2-9\nPART III: DISCLOSURES PURSUANT TO TAXPAYER'S CONSENT \nI.R.C. § 6103(c).................................................................................... 2-19\nPART IV: DISCLOSURE OF INFORMATION AVAILABLE IN THE \nPUBLIC RECORD................................................................................ 2-28\nPART V: DISCLOSURES TO COMMITTEES OF CONGRESS \nI.R.C. § 6103(f)..................................................................................... 2-33\nPART VI: DISCLOSURES TO PRESIDENT AND CERTAIN \nOTHER PERSONS I.R.C. § 6103(g).................................................... 2-35\nCHAPTER 3 TAX ADMINISTRATION DISCLOSURES I.R.C. § 6103(h).................... 3-1\nCHAPTER 4 TAX ADMINISTRATION INVESTIGATIVE DISCLOSURES AND \nDISCLOSURES TO CONTRACTORS I.R.C. § 6103(k)(6) AND (n) ................. 4-1\nCHAPTER 5 DISCLOSURES FOR NONTAX CRIMINAL PURPOSES \nI.R.C. § 6103(i).................................................................................................. 5-1\nCHAPTER 6 DISCLOSURE OF RETURNS AND RETURN INFORMATION IN \nBANKRUPTCY CASES .................................................................................... 6-1\nCHAPTER 7 BANK SECRECY ACT, MONEY LAUNDERING, FORFEITURE \nAND RETURN INFORMATION......................................................................... 7-1\nCHAPTER 8 FEDERAL/STATE EXCHANGE PROGRAM I.R.C. ' 6103(d) \nAND (p)(8)......................................................................................................... 8-1\nCHAPTER 9 FREEDOM OF INFORMATION ACT ..................................................... 9-1\n",
"ii\nCHAPTER 10 LITIGATION PRIVILEGES ................................................................. 10-1\nCHAPTER 11 ............................................................................................................ 11-1\nPART I: PERSONNEL AND CLAIMANT REPRESENTATIVE MATTERS \nI.R.C. § 6103(l)(4)................................................................................. 11-1\nPART II: PRIVACY ACT...................................................................................... 11-5\nCHAPTER 12 TESTIMONY AUTHORIZATION ........................................................ 12-1\nCHAPTER 13 ............................................................................................................ 13-1\nPART I: PUBLIC INSPECTION OF WRITTEN DETERMINATIONS \nI.R.C. § 6110 ........................................................................................ 13-1\nPART II: CONFIDENTIALITY OF INFORMATION ARISING UNDER \nTREATY OBLIGATIONS – I.R.C. § 6105........................................... 13-13\nPART III: PUBLICITY OF INFORMATION REQUIRED FROM \nCERTAIN EXEMPT ORGANIZATIONS – I.R.C. § 6104 .................... 13-16\nCHAPTER 14 DISCLOSURE GUIDE FOR TAX-EXEMPT \nBOND EXAMINATIONS.................................................................................. 14-1\nCHAPTER 15 APPENDICES .................................................................................... 15-1\nAPPENDIX-1 CONSENT TO DISCLOSURE OF TAX INFORMATION .............. 15-2\nAPPENDIX-2 CONSENT TO DISCLOSURE OF RETURN INFORMATION....... 15-4\nAPPENDIX-3 TESTIMONY REPORT AND AUTHORIZATION........................... 15-6\nAPPENDIX-4 POWER OF ATTORNEY AND DECLARATION OF \nREPRESENTATIVE ............................................................................. 15-8\nAPPENDIX-5 TAX INFORMATION AUTHORIZATION..................................... 15-10\nAPPENDIX-6 TAX DISCLOSURES .................................................................. 15-14\nAPPENDIX-7 CURRENT IRS EMPLOYEE TESTIMONY AUTHORIZATION... 15-16\nAPPENDIX-8 FORMER IRS EMPLOYEE TESTIMONY AUTHORIZATION..... 15-18\nAPPENDIX-9 BOND EXAMINATION - CONSENTS......................................... 15-20\nAPPENDIX-10 LINKS........................................................................................ 15-22\n",
"iii\nTo the Reader: \nThis reference guide updates and replaces the Disclosure Litigation and Reference \nBook last revised in 2011. It covers the primary disclosure laws that affect the Internal \nRevenue Service (I.R.C. §§ 6103 and 6110, the Freedom of Information Act (FOIA), and \nthe Privacy Act of 1974), related statutes, and testimony authorization procedures. \nTogether, these laws represent efforts by the Congress to strike a balance between a \ncitizen’s expectation of privacy and an open and effective government. Guidance on \nlegal matters concerning these disclosure laws is provided by the Office of the \nAssociate Chief Counsel (Procedure & Administration). This office is also responsible \nfor defending litigation filed pursuant to I.R.C. §§ 6103 and 6110, FOIA, and the Privacy \nAct.\nElectronic distribution of judicial opinions has provided wide access to decisions that the \nissuing courts did not view as important or precedential. Although this guide cites to \n\"unpublished\" cases by reference to the federal reporter’s table citation followed by an \napplicable electronic or specialized reporter citation number, court rules often instruct \nthat decisions a court has affirmatively designated not to be published should not be \ncited at all or only under severely limited circumstances. They are included in this guide \nto elucidate the courts’ reasoning on the various legal issues outlined herein for which \nthere is a relatively sparse body of case law. Before you cite a decision that the \ndeciding court has labeled \"unpublished\" or \"non-precedential\" you should consult that \ncourt's rules on this point. We have not cited to multiple reporters when there is more \nthan one source for an opinion, but the default preference for electronically available \nopinions is Westlaw. \nObviously, correct legal advice concerning the matters addressed in this guide depends \nupon the facts of each question. This guide was prepared for reference purposes only; \nit may not be used or cited as authority for setting or sustaining a legal position. \n",
"1-1 \nCHAPTER 1 \nPART I: HISTORY AND OVERVIEW – I.R.C. § 6103 \nI. HISTORY OF TAX CONFIDENTIALITY LAWS1\nA. Introduction \nExcept for a few periods in our history, taxpayers’ tax information generally has \nnot been available to the public – disclosure has been restricted. Congress has \nused two basic approaches in determining whether, and under what \ncircumstances, tax information could be disclosed. Under the first approach, \ntaken prior to 1977, tax information was considered a \"public record,\" but was \nonly open to inspection under Treasury regulations approved by the President or \nunder presidential order. Under this scheme, the Executive Branch essentially \ncreated all the rules regarding disclosure. \nBy the mid 1970s, there was increased congressional and public concern about \nthe widespread use of tax information by government agencies for purposes \nunrelated to tax administration. This concern culminated with the enactment of \nsection 6103, passed as part of the Tax Reform Act of 1976. Pub. L. No. 94-455, \n90 Stat. 1520 (1976) (Tax Reform Act codified at scattered sections of 7, 26, and \n46 U.S.C.). There, Congress eliminated much of the executive discretion \nconcerning the disclosure of returns or return information. With this second \napproach, Congress established a new statutory scheme under which returns \nand return information are confidential and not subject to disclosure except to the \nextent explicitly provided by the Internal Revenue Code. Although there have \nbeen many amendments to the law since that time, the basic statutory scheme \nestablished in 1976 remains in place today. \nB. Publicity of Tax Returns \nThe history of tax information confidentiality may be traced to the Civil War \nIncome Tax Act of 1862,2 when tax information was posted on courthouse doors \n1 Much of the information in this chapter was taken from Report on Administrative Procedures of the \nInternal Revenue Service, S. Doc. No. 94-266, at 821-1028 (1975); HOWARD M. ZARITSKY, CONG.\nRESEARCH SERV., 74- 211A, LEGISLATIVE HISTORY OF TAX RETURN CONFIDENTIALITY: SECTION 6103 OF\nTHE INTERNAL REVENUE CODE OF 1954 AND ITS PREDECESSORS (1974); Richard F. Janssen, Income \nTax Snooping Through History, WALL ST. J., May 6, 1970, at 18; and Mitchell Rogovin, Privacy and \nIncome Tax Returns, WASH. POST, Oct. 13, 1974, at C4. \n2 Act of July 1, 1862, ch. 109, 12 Stat. 432, 437. Ambiguities in that provision regarding public \ninspection led Congress, in 1864, to explicitly permit public inspection of the assessment list: \nIt shall be the duty of the assessor . . . to submit the proceedings of the assessors . . . and the \nannual lists taken and returned as aforesaid, to the inspection of any and all persons who may \napply for that purpose. (continued on next page) \n",
"1-2 \nand sometimes published in newspapers to promote taxpayer surveillance of \nneighbors. For the next 70 years, there was debate in Congress as to the effect \nof public disclosure on the tax system and to societal interests in general. \n1. 1866 - 1913\nIn 1866, Congress debated prohibiting publication of assessment lists in \nthe newspapers, but the proposal failed principally because many \ncongressmen believed that publication of the assessed tax would assist in \npreventing tax fraud. \nIn 1870, the Commissioner prohibited newspaper publication of the annual \nlist of assessments, but the list itself remained available for public \ninspection.3 The Revenue Act of 1870 confirmed this directive.4 Two \nyears later, in part because of problems stemming from publicity of tax \nreturns, the income tax law was allowed to expire. When the income tax \nwas reinstated by the Revenue Act of 1894, Congress affirmatively \nprohibited both the printing and the publishing in any manner of any \nincome tax return unless otherwise provided by law, and provided criminal \nsanctions for unlawful disclosure.5 In 1895, the Supreme Court declared \nthe income tax unconstitutional in Pollock v. Farmers’ Loan and Trust Co.,\n157 U.S. 429 (1895). After this decision, according to one commentator, \nthe cause of confidentiality received its ultimate victory, the burning of all \ntax returns. \nIt was not until the enactment of the Payne-Aldrich Tariff Act of 1909,6\nwhich imposed a special excise tax on corporations, that the question of \ntax return publicity was raised anew. Paragraph six of section 38 of that \nAct seemed to provide that corporate returns were fully public, but \nparagraph seven imposed a penalty for the disclosure of any information \nobtained by a U.S. employee in the discharge of his duties.7 The \nAct of June 30, 1864, ch. 173, 13 Stat. 218, 228. \n3 Circular Letter to Assessors-Publication of the Annual list of Assessment on Income Returns to be \nDiscontinued, Internal Revenue Record and Customs Journal, Vol. XI, Number 15 (Apr. 5, 1870). \n4 Act of July 14, 1870, ch. 255, 16 Stat. 256, 259. \n5 Income Tax Act of August 15, 1894, ch. 349, 28 Stat. 509. \n6 Act of August 5, 1909, 36 Stat. 11,116. \n7 Section 38 of the legislation read, in part, as follows: \nSixth. When the assessment shall be made, as provided in this section, the returns, \ntogether with any corrections thereof which may have been made by the Commissioner, \nshall be filed in the office of the Commissioner of Internal Revenue and shall constitute \npublic records and be open to inspection as such.\nSeventh. It shall be unlawful for any collector, deputy collector, agent, clerk, or other officer or \nemployee of the United States to divulge or make known in any manner (continued on next page) \n",
"1-3 \nlegislative history does little to illuminate these apparently conflicting \nprovisions. Since, however, the Payne-Aldrich legislation did not provide \nany funds for the examination of returns filed pursuant to the Act, it \nbecame necessary, in 1910, to appropriate them. During the debate on \nthe Appropriations Act of 1910, considerable light was shed upon the \ncongressional intention behind the 1909 legislation. \nThe prevailing opinion was that paragraph six of the 1909 legislation was \nintended to make corporate tax returns \"public records,\" that were open to \npublic inspection.8 Many believed that public inspection of corporate tax \nreturns would be of great assistance in the supervision and control of \ncorporate entities. There was considerable fear of the power of \ncorporations at that time. \nThe contrary minority view acknowledged that the 1909 legislation made \ntax returns public documents. However, paragraph seven of the law made \nit a criminal offense for any government officer or employee to release \nmaterial contained in these public documents without special instruction \nfrom the President. If, the argument proceeded, the public access granted \nby paragraph six had been entirely unfettered, paragraph seven would not \nhave imposed criminal sanctions for divulging information without the \nPresident's consent. This illogical result was taken to mean that tax \nreturns had not been opened to indiscriminate public inspection but only to \npersons having a proper interest in the returns.9\nAlthough there was disagreement over what was intended by the 1909 \nlegislation, it was universally conceded that it altogether failed to open \ncorporate returns to the public. Some blame this result on poor \ndraftsmanship. Others thought the failure lay in the lack of an \nappropriation to provide clerks to do the publicizing. At any rate, a \nmajority did conclude that another approach was necessary. An \namendment to the provision in the 1910 Appropriations Act resulted. \nwhatever not provided by law to any person any information obtained by him in the discharge of \nhis official duty, or to divulge or make known in any manner not provided by law any document \nreceived, evidence taken, or report made under this section except upon the special direction of \nthe President; and any offense against the foregoing provision shall be a misdemeanor and be \npunished by a fine not exceeding one thousand dollars, or by imprisonment not exceeding one \nyear, or both, at the discretion of the court. (Emphasis added). \n8 “The truth is, however, that the intention was to provide complete publicity of the returns made by \nthese corporations.” 45 CONG. REC. 4137 (1910) (Comments of Rep. Fitzgerald). \n9 “It will be noted that the law does not provide the returns shall be subject to public inspection, but \nthat the returns shall become public records and open to inspection as such . . . the mere branding of \nthese instruments as public records did not carry with it the right of indiscriminate public inspection.” \n45 CONG. REC. 4136 (1910) (Comments of Rep. Smith). \n",
"1-4 \nThe 1910 legislation, which appropriated funds for the necessary \nclassifying, indexing, and processing of corporate returns, also stated: \n[A]ny and all such returns shall be open to inspection only upon the \norder of the President under rules and regulations to be prescribed \nby the Secretary of the Treasury and approved by the President.10\nThe debate surrounding the 1910 Act plainly indicates that Congress \nintended by the quoted provision to back away from the fully \"public\" \ntreatment of corporate returns. Some Congressmen argued for full \npublicity, as opposed to publicity only at the whim of the Administration, as \nprovided by the bill. The majority, however, chose the approach that \nreturns would be made public only on the order of the President. \nLeft standing from the 1909 Act was the notion that returns constitute \n\"public records\" open to public inspection. The 1910 effort to revise \ncongressional intent merely added on the seemingly contradictory and \nconfusing concept that these \"public\" records would be available only \nupon order of the President. \n2. Income Tax Law of 1913\nEven though the 1910 Act had two rather inconsistent threads, Congress \nwove both of them into the Income Tax Law of 1913. In pertinent part, it \nprovided: \n(G)(d) When the assessment shall be made, as provided in this \nsection, the returns, together with any corrections thereof which \nmay have been made by the Commissioner, shall be filed in the \noffice of the Commissioner of Internal Revenue and shall constitute \npublic records and be open to inspection as such: Provided, that \nany and all such returns shall be open to inspection only upon the \norder of the President, under rules and regulations to be prescribed \nby the Secretary of the Treasury and approved by the President.11\nThe 1913 Congress thereby merged the mismatching philosophies from \nthe 1909 Act and the 1910 amendment. Although there was, through the \nyears, some change in language, the basic pattern adopted in 1913 \nremained part of the law until 1976. \n \n \n10 Act of June 17, 1910, ch. 197, 36 Stat. 468, 494. \n11 Income Tax Law of 1913, Pub. L. No. 63-13, II(G)(d), 28 Stat. 114, 72. \n",
"1-5 \n3. 1913 - 1976\nThe enactment of each revenue act subsequent to 1913 was, at least \nthrough 1934, accompanied by debate on the question of whether \nindividual and corporate returns should be made fully public. Two main \narguments were made in favor of making tax returns public: \n1. publicity in the affairs of businesses generally is appropriate and \nwould serve to end improper trade policies, business methods, \nand conduct; and \n2. publicity would assure fuller and more accurate reporting by \ntaxpayers. \nThe proponents of full disclosure obtained their fundamental philosophy \nfrom a speech by former President Benjamin Harrison who, before the \nUnion League Club of Chicago in 1898, stated: \nEach citizen has a personal interest, a pecuniary interest in the tax \nreturn of his neighbor. We are members of a great partnership, and \nit is the right of each to know what every other member is \ncontributing to the partnership and what he is taking from it.12\nThe other point of view, consistently taken over the years by the \nDepartment of the Treasury, opposed the publicity of tax information. \nSecretary of the Treasury Andrew Mellon articulated this position when he \nstated that: \nWhile the government does not know every source of income of a \ntaxpayer and must rely upon the good faith of those reporting \nincome, still in the great majority of cases this reliance is entirely \njustifiable, principally because the taxpayer knows that in making a \ntruthful disclosure of the sources of his income, information stops \nwith the government. It is like confiding in one's lawyer.13\nSecretary Mellon later suggested: \nThere is no excuse for the publicity provisions except the \ngratification of idle curiosity and filling of newspaper space at the \ntime the information is released.14\n12 Mitchell Rogovin, Privacy and Income Tax Returns, WASH. POST (Oct. 13, 1974), at C4. \n13 Hearings on Revenue Revision Before the House Ways and Means Comm., 69th Cong. 8-9 (1925). \n14 S. REP. NO. 94-266, at 1039 n.51 (citing Hearings on Revenue Revision Before the House Ways \nand Means Comm., 69th Cong. 8-9 (1925)). \n",
"1-6 \nThe proponents of full disclosure had a limited victory in 1924. The \nRevenue Act of 1924 provided that the Commissioner would: \nas soon as practicable in each year cause to be prepared and \nmade available to public inspection . . . lists containing the name \nand . . . address of each person making an income tax return . . . \ntogether with the amount of income tax paid by such person.15\nAs a result of the 1924 Act, newspapers devoted pages to publishing the \ntaxes paid by taxpayers, and the right of newspapers to publish these lists \nwas upheld by the Supreme Court.16 The Revenue Act of 1926, however, \nremoved the provision requiring that the amount of tax be made public \nwhile leaving the requirement that a list be published containing the name \nand address of each person making an income tax return.17\nIn 1934, after a widely publicized income tax evasion scandal, Congress \nenacted another form of limited disclosure. The Revenue Act of 1934 \ncontained a provision for the mandatory filing of a so-called \"pink slip\" with \nthe taxpayer's return.18 The pink slip was to set forth the taxpayer's gross \nincome, total deductions, net income and tax payable. The pink slip was \nto be open to public inspection. Fueled by images of kidnappers sifting \nthrough pink slips looking for worthwhile victims, the provision was \nrepealed even before it took effect.19\nFrom 1934 until 1976 there was no substantial change in the statute \nrespecting the disclosure of tax returns. The pre-1976 statute was thus \nvery much the product of the 1909 and 1910 legislation, continuing with \nthe oddity of \"public\" records only open to inspection under regulations or \norders of the President. \nC. Disclosure to Government Agencies \nAlthough corporate returns were, in 1910, made available to the public, as well \nas to other government agencies, individual returns were kept within Treasury \nuntil 1920. In 1920, individual returns joined corporate returns as being generally \navailable to federal agencies.20 The 1930s saw a new trend of more general \n15 Act of June 2, 1924, ch. 234, 43 Stat. 253, 293. One news article reported that in 1924, within 24 \nhours after it was announced that tax lists were ready for inspection, Internal Revenue officers \nthroughout the country were besieged by applications from promoters, salespeople, and advertisers. \n16 U.S. v. Dickey, 268 U.S. 378 (1925). \n17 Act of Feb. 26, 1926, ch. 27, 44 Stat. 9, 51-52. \n18 Revenue Act of 1934, ch. 277, 48 Stat. 680, 698. \n19 Act of April 19, 1935, ch. 74, 49 Stat. 158. \n20 T.D. 2961, 2 C.B. 249 (1920). \n",
"1-7 \naccess being granted to specific agencies as well as to congressional \ncommittees. The 1940s, 1950s, and 1960s were marked by almost unrestrained \ngrowth in the use of tax returns by government agencies. During this time, tax \nreturns became a generalized governmental asset. The public, however, was \ndenied access. \nD. Summary 1866 - 1970 \nThis history of disclosure reveals the existence of a statute that, in all significant \nrespects, went unchanged since 1910. Thus, the story is one of the exercise of \ndiscretion granted by a Congress unwilling to define precisely the policy to be \nfollowed. Having ceded discretion to the President and an agency headed by his \ndesignee, the expanded uses of tax information was not surprising. Indeed, it \nwould have been unrealistic to expect the President to resist agency arguments \nfor access to more information on which to base important decisions even though \nsuch information might be neither necessary nor used for their originally intended \npurposes. \nE. Developments in the 1970s \nBy the mid 1970s, Congress became increasingly concerned about the \ndisclosure and use of information gathered from and about citizens by federal \nagencies.21 The events leading to the revision of the tax disclosure laws in 1976 \ncan, however, be directly traced to Executive Orders 1169722 and 11709,23\nissued by President Richard M. Nixon authorizing the Department of Agriculture \nto inspect the tax returns of all farmers “for statistical purposes.” \nIn 1973, two subcommittees of the House of Representatives held hearings \nregarding the Department of Agriculture's need for the tax data disclosed under \nthe authority of the two executive orders.24 During these hearings, sentiments \nagainst the orders were expressed. Officers of the Department of Justice \ntestified that the two orders were prototypes for future orders opening other tax \nreturns to inspection by other agencies. Responding to the adverse sentiment \n21 This concern led directly to the enactment of the Privacy Act of 1974, 5 U.S.C. § 552a. \n22 Inspection by Department of Agriculture of Income Tax Returns Made Under the Internal Revenue \nCode of 1954 of Persons Having Farm Operations, 38 Fed. Reg. 1723 (Jan. 18, 1973). \n23 Inspection by Department of Agriculture of Income Tax Returns Made Under the Internal Revenue \nCode of 1954 of Persons Having Farm Operations, 38 Fed. Reg. 8131 (Mar. 29, 1973) (superseding \nExec. Order No. 11,697, narrowing the scope of the return information to be made available to the \nDepartment of Agriculture). \n24 Hearings on Executive Orders 11697 and 11709 Permitting Inspection by the Department of \nAgriculture of Farmers’ Income Tax Returns Before House Subcomm. on Foreign Operations and \nGovernment Information of Comm. on Government Operations, 93rd Cong. (1973). \n",
"1-8 \nexpressed in these hearings, the President revoked both with Executive Order \n11773 on March 21, 1974.25\nConcern over tax return confidentiality remained after revocation of the two \nexecutive orders. The Senate Select Committee on Presidential Campaign \nActivities (Watergate Committee) hearings revealed that former White House \ncounsel John Dean had sought from the IRS political information on so-called \n\"enemies.\" Furthermore, it was disclosed that the White House actually was \nsupplied with information about IRS investigations of Howard Hughes and \nCharles Rebozo. The Committee noted that tax information and income tax \naudits were commonly requested by White House staff and supplied by IRS \npersonnel. \nThe House Judiciary Committee investigating the possible impeachment of \nPresident Nixon learned of the apparently unauthorized use of IRS tax data by \nthe President. One of the Articles of Impeachment proposed by the Judiciary \nCommittee alleged that President Nixon had: \nendeavored to obtain from the Internal Revenue Service, in violation of the \nconstitutional rights of citizens, confidential information contained in \nincome tax returns for purposes not authorized by law.26\nCongressional interest in tax return confidentiality also manifested itself in 1974 \nwhen, as part of the Privacy Act of 1974, Congress ordered the newly \nestablished Privacy Protection Study Commission to report to the President and \nCongress, and suggest restrictions on the disclosure of federal income tax \ninformation. This report, issued on June 9, 1976, recommended major changes \nin the disclosure of tax data. On June 10, 1976, the Senate Finance Committee \nissued its report on H.R. 10612, the Tax Reform Act of 1976, in which it, too, \nproposed substantial revisions in the rules governing tax return confidentiality.27\nThe Committee's proposal dealt with the same general issues as had the Privacy \nProtection Study Commission, but it resolved them differently. With few technical \nchanges, the Conference Committee on H.R. 10612 adopted the Senate Finance \nCommittee's version of the tax confidentiality rules as part of the Tax Reform Act \nof 1976.28\n25 Revoking the Authority of the Department of Agriculture To Inspect Income Tax Returns, 39 Fed. \nReg. 10881 (Mar. 22, 1974). \n26 REPORT ON THE IMPEACHMENT OF RICHARD M. NIXON, PRESIDENT OF THE UNITED STATES, H.R. REP.\nNO. 93-1305, at 3 (1974). \n27 S. REP. NO. 94-938 at 315-49, 1976-3 C.B. (Vol. 3) 353-87. \n28 Pub. L. No. 94-455, 90 Stat. 1520 (1976). \n",
"1-9 \nII. PRINCIPAL AREAS OF REVISION IN THE TAX REFORM ACT OF 1976 \nA. Congressional Philosophy Behind the 1976 Amendments to \nI.R.C. § 6103 \nCongress recognized that the IRS had more information about citizens than any \nother federal agency and that other agencies routinely sought access to that \ninformation. Congress also understood that citizens reasonably expected the \nIRS would protect the privacy of the tax information they were required to supply. \nIf the IRS abused that reasonable expectation of privacy, the resulting loss of \npublic confidence could seriously impair the tax system. \nAlthough Congress felt that the flow of tax information should be more tightly \nregulated, not everyone agreed where the lines should be drawn. The debates \non accessibility were most heated in the area of nontax criminal law \nenforcement. One side, led by Senator Long, sought more liberal access rules in \norder to fight white collar crime, organized crime, and other violations of the law. \nThis side felt \"the Justice Department is part of this Federal Government. It is all \none Government.” The other side, led by Senator Weicker, wanted very \nrestrictive rules. This side recognized that it was cheaper and easier for Justice \nto come directly to the IRS, but they also believed that when citizens made out \ntheir tax returns, they made them out for the IRS and no one else. \nUltimately, Congress amended section 6103 to provide that tax returns and \nreturn information are confidential and are not subject to disclosure, except in the \nlimited situations delineated by the Internal Revenue Code. In each area of \nauthorized disclosure, Congress attempted to balance the particular office or \nagency's need for the information with the citizen's right to privacy, as well as the \nimpact of the disclosure upon continued compliance with the voluntary tax \nassessment system.29 In short, Congress undertook direct responsibility for \ndetermining the types and manner of permissible disclosures. \nB. Structure of Tax Information Confidentiality Provisions \nThe Tax Reform Act of 1976 created a comprehensive statutory scheme for the \ndisclosure and use of tax returns and return information. The four basic parts to \nthis statutory scheme are: \n• The general rule of section 6103(a) making tax returns and return \ninformation confidential except as expressly authorized in the Code. \nDefinitions of key terms, such as return and return information, are in \nsection 6103(b). \n29 General Explanation of the Tax Reform Act of 1976, H.R. 10612, Pub. L. No. 94-455 (JCS-33-76), \nat 313-16 (J. Comm. Print 1976), 1976-3 C.B. (Vol. 2) 325-28. \n",
"1-10 \n• The exceptions to the general rule, detailing permissible disclosures. \nI.R.C. § 6103(c) – (o). \n• Technical, administrative, and physical safeguard provisions to prohibit \nrecipients of returns or return information from using or disclosing the \ninformation in an unauthorized manner, and accounting, recordkeeping, \nand reporting requirements that detail the purposes for which certain \ndisclosures were made to assist in congressional oversight. I.R.C. \n§ 6103(p). \n• Criminal penalties, including a felony for the willful unauthorized disclosure \nof returns or return information and a civil cause of action for the taxpayer \nwhose information has been inspected or disclosed in a manner not \nauthorized by section 6103. I.R.C. §§ 7213 (criminal penalty for \nunauthorized disclosure) and 7431 (civil damages provision).30\nC. Summary of Disclosure Issues in Tax Reform Act of 1976 \nThe remainder of this reference guide describes the various disclosures \npermitted within the statutory framework of the Code. Below is a summary of \nsome of the major issues Congress addressed in the 1976 Act. \n1. Congress \nEven though Congress, particularly its tax writing committees, requires \naccess to returns or return information in certain instances to carry out its \nlegislative responsibilities, it decided it could continue to meet these \nresponsibilities under more restrictive disclosure rules than those provided \nunder pre-1976 law. \nThe Ways and Means Committee, the Finance Committee, and the Joint \nCommittee on Taxation (JCT), can have access upon the written request \nof their respective chairmen or the Chief of Staff of the JCT. The nontax \ncommittees may be furnished returns or return information upon (1) a \ncommittee action approving the decision to request such returns, (2) an \nauthorizing resolution of the House or Senate, as the case may be, and \n(3) the written request by the chairman of the committee on its behalf for \ndisclosure of the information. \n30 The Taxpayer Browsing Protection Act of 1997 created a misdemeanor for the unauthorized \ninspection of returns or return information (section 7213A). In addition, in 1996, Public Law 104-294 \nprovided that the unauthorized access of returns or return information in government computer files is \na felony under 18 U.S.C. § 1030(a)(2)(B). Pub. L. No. 104-294, 110 Stat. 3488 (1996). See generally \nChapter 1, Part III of this guide. \n",
"1-11 \nTaxpayers sometime write to a member of Congress with a tax question or \nproblem they are having with the IRS. The member of Congress or other \nperson generally forwards such letters to the IRS and requests that the \nIRS response be made directly to him or her. \nMembers of Congress in their individual capacity are entitled to no greater \naccess to returns or return information than any other person inquiring \nabout the tax affairs of a third party. Disclosure of returns or return \ninformation to a taxpayer's designee, including a member of Congress \ninquiring on behalf of a constituent, may be made only in accordance with \nsection 6103. Generally, section 6103 provides that returns and return \ninformation are protected from disclosure unless a request or authorization \nis obtained from the taxpayer. Chapter 4 of the IRM section on Disclosure \nof Official Information, IRM 11.3.4, contains further instructions concerning \ndisclosures in response to congressional inquiries. See also Chapter 2, \nPart III. \n2. White House \nThe IRS may disclose returns or return information to the President and/or \nto certain named employees of the White House upon the written request \nof the President, signed by the President personally. A request must \nspecify, among other things, the reason disclosure is requested. The \nPresident (or a duly authorized representative of the Executive Office) and \nthe head of a federal agency also may make a written request for a \"tax \ncheck\" with respect to prospective appointees. \nThe White House is required to report quarterly to Congress regarding the \ndisclosures of returns or return information made to it. Similarly, federal \nagencies are required to report on tax checks. \n3. Nontax Civil Cases \nSection 6103 generally prohibits the disclosure of returns and return \ninformation to the Department of Justice (DOJ) or other enforcement \nagencies in nontax civil cases. \n4. Government Accountability Office (GAO) \nSection 6103 authorizes the GAO (formerly the General Accounting \nOffice) to inspect returns and return information to the extent necessary in \nconducting any audit of the IRS, the Bureau of Alcohol, Tobacco, \nFirearms, and Explosives, DOJ, or the Tax and Trade Bureau, Department \nof the Treasury which may be required by section 713 of Title 31, United \nStates Code, as proposed by section 117 of the Budget and Accounting \nProcedures Act of 1950. Congress intended that GAO examine returns \n",
"1-12 \nand return information only for the purpose of, and to the extent necessary \nto serve as a reasonable basis for, evaluating the effectiveness, efficiency \nand economy of IRS operations and activities. Congress did not intend \nthat GAO would superimpose its judgment upon that of the IRS in specific \ntax cases. \nSection 6103 allows GAO to have access to returns or return information \nin the possession of any federal agency when it is auditing an agency \nprogram or activity involving the use of returns and return information. \nFurthermore, under certain circumstances, GAO may access returns or \nreturn information that a federal agency could have requested for nontax \nadministration purposes. \nGAO is to notify the JCT in writing of the subject matter of a planned audit \nand any plans for inspection of tax returns. GAO can proceed with its \naudit unless the JCT, by a two thirds vote of its members, vetoes the audit \nplan within 30 days of receiving written notice of the proposed audit. \nSection 6103 also authorizes GAO to review and evaluate federal and \nstate agencies’ compliance with the requirements for the use and \nsafeguarding of returns and return information received from the IRS. \nFinally, GAO may access returns or return information when it audits IRS \noperations as an agent of the tax writing committees. \n5. Inspector General \nIn the Internal Revenue Service Restructuring and Reform Act of 1998, \nCongress created the Office of Treasury Inspector General for Tax \nAdministration (TIGTA), and invested it with all the duties and \nresponsibilities of the former Office of the Chief Inspector. Pursuant to \nsection 6103(h)(1), TIGTA officers and employees whose official tax \nadministration duties require access to returns and return information may \naccess such information in the same manner accorded to other Treasury \nemployees. No written notice of intent to access is required for TIGTA to \nobtain information. \n6. Statistical Use \nCongress recognized the importance of returns and return information for \nother federal agencies’ statistical and research functions. Congress \ndecided that returns and return information should be available for \nstatistical use by certain agencies other than the IRS because there did \nnot appear to be any real likelihood that the use of such information by \nthese agencies would, under the procedures and safeguards provided for \n",
"1-13 \nby section 6103, result in an abuse of the privacy or other rights of \ntaxpayers. \n7. Disclosures for Federal Programs \nSection 6103 permits limited disclosures to a number of agencies in \ndefined situations where returns and return information are directly related \nto programs administered by the agency in question, including the Social \nSecurity Administration, the Railroad Retirement Board, the Department of \nLabor, and the Pension Benefit Guaranty Corporation. Provisions are also \nmade for disclosures to verify income eligibility for certain programs, \nrefund offsets for child support cases, certain unemployment \ncompensation cases, and federal debt collection purposes. Additionally, \nthe Internal Revenue Service Restructuring and Reform Act of 1998 \namended section 6103(l) by adding section 6103(l)(17), which requires the \nIRS to disclose section 6103 protected records to officers and employees \nof National Archives and Records Administration (NARA), upon written \nrequest of the Archivist of the United States, for purposes of the appraisal \nof such records for destruction or retention. See Pub. L. No. 105-206, 112 \nStat. 685 (1998). Such tax data may not be open to the public, however. \n8. Federal Nontax Crimes and Terrorism \nIn 1976, Congress significantly changed the circumstances under which \ntax information could be shared with, and used by, Federal law \nenforcement agencies. Believing that the information taxpayers were \ncompelled by the tax laws to disclose to IRS was entitled to the same \ndegree of privacy as information maintained in the taxpayers’ homes, \nCongress imposed a court order mechanism in order for Federal criminal \nlaw enforcement agencies to access returns or return information that was \nfurnished to the IRS by taxpayers or their representatives. For return \ninformation that was obtained from other sources, a written request would \nsuffice and provisions were also made to allow IRS to share such return \ninformation on its own initiative to apprise Federal criminal law \nenforcement agencies of possible crimes. \nAfter enactment of the Patriot Act in September 2001, Congress \nrecognized the need to permit the IRS to share tax information not only \nwith Federal criminal law enforcement agencies, but also with intelligence \nagencies, both for purposes of punishing violators and detecting and \npreventing terrorist activities. The mechanisms for the disclosure of \nreturns and return information for anti-terrorism purposes include the \nsame court-order and written request processes that are used for Federal \nnontax criminal law enforcement, except Congress also gave the IRS the \nauthority to initiate the ex parte court order process. Victims of Terrorism \nTax Relief Act of 2001, Pub. L. No. 107-134, § 201, 115 Stat. 2427 (2001); \n",
"1-14 \nTax Extenders and Alternative Minimum Tax Relief Act of 2008, Pub. L. \nNo. 110-343, Div. C, Title IV, § 402(a) and (b), 122 Stat. 3765. \n9. Recordkeeping (Accounting) \nSection 6103 requires the IRS to maintain a standardized system of \npermanent records about the use and disclosure of returns and return \ninformation. This includes copies of all requests for inspection or \ndisclosure of returns and return information and a record of all inspections \nand disclosures of such information. The recordkeeping requirements do \nnot apply in certain situations, including disclosures to: the general public \n(accepted offers in compromise, the amounts of outstanding tax liens, \netc.); Treasury (including IRS) employees or DOJ for tax administration \nand tax litigation purposes; persons with a material interest; persons upon \nthe taxpayer's written consent; the media (taxpayer identity information for \nunclaimed refunds); and contractors that perform tax administration \nfunctions. \nIn addition to the recordkeeping requirements imposed on the IRS, section \n6103 provides generally (with limited exceptions) that each federal and \nstate agency that receives returns or return information is required to \nmaintain a standardized system of permanent records about the use and \ndisclosure of that information. Maintaining such records is a prerequisite \nto obtaining and continuing to receive returns or return information. \n10. Safeguards \nSection 6103 provides that the IRS may not furnish returns and return \ninformation to another agency unless that agency establishes procedures \nsatisfactory to the IRS for safeguarding the returns or return information it \nreceives. Disclosure to other agencies is conditioned on the recipient: \nmaintaining a secure place for storing the information; restricting access to \nthe information to people to whom disclosure can be made under the law; \nrestricting the use of the information to the purpose for which it was \nprovided; providing other safeguards necessary to keeping the information \nconfidential; and, returning or destroying the information when the agency \nis finished with it. The IRS must review, on a regular basis, safeguards \nestablished by other agencies. \nIf there are any unauthorized disclosures by employees of the other \nagency, the IRS may discontinue disclosures of returns or return \ninformation to that agency until it is satisfied that the agency took \nadequate protective measures to prevent a repetition of the unauthorized \ndisclosure. In addition, the IRS may terminate disclosure to any agency if \nthe IRS determines that adequate safeguards are not being maintained by \nthe agency in question. \n",
"1-15 \n11. Reports to Congress \nBecause the use of returns or return information for purposes other than \ntax administration resulted in serious abuses of the rights of taxpayers in \nthe past, and because the potential for abuse necessarily exists in any \nsituation in which returns or return information is disclosed for purposes \nother than the administration of the federal tax laws, Congress believed \nthat it must closely review the use of returns and return information and \nthe extent to which taxpayer privacy is being protected. In order to permit \nthat review, Congress requires the IRS to make comprehensive annual \nreports to the JCT as to the use of returns and return information. \nSpecifically, section 6103 requires the IRS to make a confidential report to \nthe JCT each year on all requests (and the reasons therefor) received for \ndisclosure of returns and return information. The report must include a \nsection for public dissemination that includes a listing of all agencies that \nreceived returns and return information, the number of instances in which \nthe IRS made disclosures to them during the year, and the general \npurposes for which the agencies made the requests. In addition, the IRS \nis required to file a quarterly report with the tax committees regarding \nprocedures and safeguards followed by recipients of returns and return \ninformation.\n12. Enforcement \nCongress concluded that the prior provisions of law designed to enforce \nthe rules against improper disclosure were inadequate, and that the \npenalties should be increased. \nIn section 6103(a), Congress explicitly applied the prohibition against \ndisclosure to present and former officers and employees of the United \nStates, and to certain other designated individuals. \nCongress amended section 7213 to make a willful violation of the \ndisclosure rules a felony, with a fine up to $5,000, and up to five years \nimprisonment. See United States v. Richey, 924 F.2d 857 (9th Cir. 1991); \nIn re Seper (United Liquor Co. v. Gard), 705 F.2d 1499 (9th Cir. 1983); \nReporters Comm. for Freedom of the Press v. Am. Tele. and Tele. Co.,\n593 F.2d 1030 (D.C. Cir. 1978). In 1996, Congress amended 18 U.S.C. \n§ 1030(a)(2) to make the unauthorized access of government computers a \nfelony, amended by Pub. L. No. 104-294, 110 Stat. 3488. This provision \nincludes the unauthorized access of returns or return information in \ngovernment computer files. In 1998, Congress enacted section 7213A to \nspecifically make the unauthorized inspection of returns or return \ninformation, whether in paper or computer files, a misdemeanor. See \nPub. L. No. 105-206, 112 Stat. 711 (1998). \n",
"1-16 \nBefore 1982, section 7217 provided civil remedies against individual \nemployees for unauthorized disclosures of returns or return information. \nBecause these remedies stifled some legitimate federal conduct, \nCongress amended the law and enacted section 7431 establishing a civil \nremedy against the United States for any taxpayer damaged by an \nunlawful disclosure of returns or return information by federal employees \n(codified as amended at 26 U.S.C. § 7431). Because of the difficulty in \nestablishing actual monetary damages sustained by a\u0002 taxpayer as the \nresult of the invasion of privacy caused by an unlawful disclosure of \nreturns or return information, section 7431 provides for liquidated \ndamages of $1,000 for each unauthorized disclosure. In the alternative, \nliability extends to actual damages plus court costs. The statute also \nprovides for punitive damages in addition to actual damages in situations \nwhere the unlawful disclosure is willful or is the result of gross negligence. \nThe law does not provide a remedy for a disclosure or inspection of \nreturns or return information made at the request of the taxpayer or \npursuant to a good faith, but erroneous, interpretation of the confidentiality \nrules. Instead, a disclosure or inspection giving rise to civil liability is \nlimited to situations where the unauthorized disclosure or inspection \nresults from a willful or negligent failure of the person to comply with the \nlaw. \n13. Miscellaneous Disclosure Authority31\nSection 6103(a) prohibits the disclosure of returns and return information \nexcept to the extent specifically authorized by section 6103, or other \nsections of the Code. Examples of other sections of the Code that \nregulate the disclosure of returns or return information in certain \ncircumstances include: \n• 274(h)(6) - Caribbean Basin exchange agreements \n• 3406 - backup withholding \n• 4424 - wagering tax information \n• 6104 - exempt organizations and employee plans information \n• 6105 - tax convention information \n• 6108 - statistical studies \n31 Many of these Code sections were added either before or after the Tax Reform Act of 1976. \n",
"1-17 \n• 6110 - written determinations (letter rulings, determination letters, \ntechnical advice memoranda, and Chief Counsel advice) \n• 6323(f) - notice of federal tax lien \n• 7461 - publicity of Tax Court proceedings \nSee also Chapter I, Part II, Section VI. \nIII. SECTION 3802 OF THE IRS RESTRUCTURING AND REFORM ACT \nSection 3802 of the IRS Restructuring and Reform Act (RRA 98) mandated that the \nTreasury Department and the JCT conduct studies on the provisions regarding taxpayer \nconfidentiality. The studies were to examine the present protections for taxpayer \nprivacy, any need for third parties to use returns or return information, whether \npublicizing the names of persons who are legally required to file tax returns but who do \nnot do so would achieve greater levels of voluntary compliance, and the \ninterrelationship between the Freedom of Information Act (FOIA) and section 6103. The \nJCT published its study on January 28, 2000. STAFF OF THE JOINT COMMITTEE ON\nTAXATION, 106TH CONG., STUDY OF PRESENT-LAW TAXPAYER CONFIDENTIALITY AND\nDISCLOSURE PROVISIONS AS REQUIRED BY SECTION 3802 OF THE INTERNAL REVENUE\nSERVICE RESTRUCTURING AND REFORM ACT OF 1998, JCS-1-00 NO.1, 2 AND 3 (Comm. \nPrint 2000) (http://www.jct.gov/publications). Treasury published its study on \nOctober 2, 2002, and it is available on the Department of Treasury website at \nhttp://www.treasury.gov/resource-center/tax-policy/Documents/confide.pdf. These were \nthe first comprehensive reviews of the Code disclosure provisions since the 1976 \namendments. Both studies generally endorsed the structure and approach of the \ncurrent statute, but differed most significantly on the role of contractors’ receipt and use \nof returns and return information. \nIV. CONCLUSION \nA distinguishing characteristic and, indeed, one of the strengths of American tax \nadministration, is the self assessment feature of the system. Employees of the Office of \nChief Counsel and the IRS must be constantly aware that in fostering this system, there \nmust be public confidence with respect to the confidentiality of personal and financial \ninformation given to us for tax administration purposes. \nThus, we must administer the disclosure provisions of the internal revenue laws in \naccordance with the spirit and intent of the law, ever mindful of this public trust. The law \nmakes the confidential relationship between the taxpayer and the IRS quite apparent. \nBy the single act of filing a tax return, a record is created and also a trust. We are \nresponsible for maintaining both. \nThere is probably no other government agency having as much contact with as many \ncitizens as the IRS in the course of carrying out its responsibility of collecting the \n",
"1-18 \nrevenue. As a result, a vast majority of our records are confidential in the very real \nsense that they represent information the American people have provided to their \ngovernment in confidence. The confidential nature of these records requires that each \nrequest for information be evaluated in the light of a considerable body of law and \nregulations that either authorize or prohibit disclosure. The diversity of our records, the \nsize of our organization, and the complexity of our operations, all contribute to the \nissues we must consider when performing our official duties. \n",
"1-19 \nPART II: CIVIL DAMAGES FOR UNAUTHORIZED INSPECTION \nAND DISCLOSURE \nI.R.C. § 7431 \nI. CAUSE OF ACTION \nA. Background \nAs discussed in Part I, in 1982, section 7431 replaced section 7217. The \npurpose of this amendment was to substitute the United States, rather than \nindividual employees, as the proper defendant in an unauthorized disclosure \naction arising from the conduct of a federal employee. See below, Section V., A., \n“Proper Party”. \nIn 1997, section 7431 was amended by the Taxpayer Browsing Protection Act to \nspecifically make damages available for the unauthorized inspection of returns \nand return information. See Pub. L. No. 105-35, 111 Stat. 1104 (1997). The Act \nalso added subsection 7431(b)(2), which provides for a good faith defense when \ninspection or disclosure is requested by the taxpayer and subsection 7431(e), \nwhich requires the notification of the taxpayer when any person is criminally \ncharged by indictment or information with the offenses of unauthorized inspection \nor disclosure of that taxpayer's return or return information in violation of section \n7213(a), section 7213A, or 18 U.S.C. § 1030(a)(2)(B). \nB. Elements of Claim \nFor a taxpayer to prevail under section 7431(a)(1), he must demonstrate that an \nunauthorized inspection or disclosure of his returns or return information was \nmade by an officer or employee of the United States, the inspection or disclosure \nwas made knowingly or negligently, and that the inspection or disclosure was \nmade in violation of section 6103. Christensen v. United States, 733 F. Supp. \n844, 848 (D.N.J. 1990), aff'd, 925 F.2d 416 (3d Cir. 1991) (table cite); Flippo v. \nUnited States, 670 F. Supp. 638, 641 (W.D.N.C. 1987), aff'd mem., 849 F.2d 604 \n(4th Cir. 1988) (table cite). \n1. Sharer v. United States, No. Civ. S-98-0116EJG/JFM, 1999 WL \n671010, at *2 (E.D. Cal. Feb. 12, 1999) (plaintiff bears burden of \nproving unauthorized disclosure of return information). \n2. Tobin v. Troutman, No. Civ. A 3: 98-CV-663-H, 1999 WL 501004, at *4-\n5 (W.D. Ky. June 8, 1999) (plaintiff failed to state a claim under section \n7431 where the information allegedly inspected was retained copies of \nthe taxpayer’s returns and workpapers in the taxpayer’s home (citing \nStokwitz v. United States, 831 F.2d 893 (9th Cir. 1987), cert. denied,\n485 U.S. 1033 (1988), court ruled the information was not return \ninformation because it had not been received by the IRS)). \n",
"1-20 \n3. Weiner v. IRS, 789 F. Supp. 655, 656 (S.D.N.Y. 1992) (plaintiff must \nshow: (1) that the disclosure was unauthorized; (2) that the disclosure \nwas made knowingly or by reason of negligence; and, (3) that the \ndisclosure was in violation of section 6103), aff'd, 986 F.2d 12 (2d Cir. \n1993). \n4. Wilkerson v. United States, 67 F.3d 112, 115 (5th Cir. 1995) (section \n7431 claim requires plaintiff to prove that the IRS disclosed confidential \ntax return information either knowingly or negligently and that this \ndisclosure was not authorized by section 6103). \nNote: The analysis for determining whether an unauthorized \ndisclosure has occurred is as follows: \na. Was there a disclosure of returns or return information? See\nBaskin v. United States, 135 F.3d 338, 342-43 (5th Cir. 1998) \n(IRS special agent's possession and transfer of data to the local \npolice while on temporary assignment to the grand jury did not \nmake the data disclosed \"return information\" for purposes of \nsection 6103); Stokwitz v. United States, 831 F.2d at 896 \n(disclosure of the taxpayer’s retained copies of returns did not \nviolate section 6103 because the returns did not pass through \nthe IRS). \nb. Was the return or return information disclosed that of the \nplaintiff/taxpayer? See Section V., I., “Standing,” below. \nc. Was the disclosure authorized by some provision in Title 26? \nd. Was the disclosure made knowingly or negligently? See Weiner \nv. IRS, 789 F. Supp. 655, 656 (S.D. N.Y. 1992) (to hold IRS \nliable for disclosure through levy resulting from computer error \nwould hold IRS to higher standard than Congress intended in \nenacting statute); Messinger v. United States, 769 F. Supp. 935, \n940 (D. Md. 1991) (mere showing of unauthorized disclosure \ninsufficient to demonstrate negligence) rejecting Husby v. United \nStates, 672 F. Supp. 442 (N.D. Cal. 1987) (which held that the \nfact that an unauthorized disclosure was made is prima facie\ncase for section 7431); Christensen v. United States, 733 F. \nSupp. 844, 854 (D. N.J. 1990) (disclosure resulting from \nministerial computer error does not rise to negligence); \nTimmerman v. Swenson, Civ. No. 4-78-547, 1979 U.S. Dist. \nLEXIS 10172 at *6 (D. Minn. Aug. 27, 1979) (under section \n7217, court applying duty of due care negligence standard \ndetermined that IRS was not negligent when it sent levy to bank \nas result of clerical error). \n",
"1-21 \nII. GOOD FAITH DEFENSE UNDER I.R.C. § 7431(b) \nA. Statutory Provision \nThe United States is not liable for unauthorized inspections or unauthorized \ndisclosures of returns or return information that are the result of good faith, but \nerroneous, interpretations of section 6103. Good faith is generally judged by an \nobjective standard, i.e., whether an IRS employee reasonably would have known \nof rights provided and of the agency's applicable regulations and internal rules. \nAlthough the circuits have split over whether good faith is an affirmative defense \nor whether bad faith must be pled by the plaintiff in the complaint, the Office of \nChief Counsel and the Tax Division have officially adopted the position that good \nfaith is an affirmative defense that must be pled by the government (and not \nnegated by the taxpayer). Compare Davidson v. Brady, 732 F.2d 552, 554 (6th \nCir. 1984) (in section 7217 case, court concluded that bad faith was an element \nof case that plaintiff must allege to state a claim) with McDonald v. United States,\n102 F.3d 1009, 1010-11 (9th Cir. 1996) (criticizing Davidson, court held that good \nfaith was an affirmative defense that the government must prove). \nB. Case Law \n1. Agbanc v. United States, No. 87-383, slip op. at 18-19 (D. Ariz. \nDec. 21, 1988) (error by revenue agent in sending out wrong report did \nnot occur as a result of a good faith but erroneous interpretation of \nsection 6103, but as a result of negligence). \n2. Balanced Financial Management, Inc. v. Fay, 662 F. Supp. 100, 106 \n(D. Utah 1987) (prefiling notification letters issued in compliance with \nrevenue procedure were sent in good faith). \n3. Barrett v. United States, 51 F.3d 475, 480 (5th Cir. 1995) (court was \nnot persuaded by the record of testimony at trial that it was necessary \nto reveal the fact of criminal investigation in circular letters sent to \nplaintiff's patients; because the special agent did not review section \n6103 provisions contained in the IRM prior to sending the letters and, \n\"of paramount importance,\" did not obtain prior approval of the CID \nChief, as provided by the IRM, the court concluded that a reasonable \nagent would not have violated the express provisions of the manual \nand, thus, did not act in good faith) remanded to 917 F. Supp. 493 \n(S.D. Tex. 1995), aff’d, 100 F.3d 35 (5th Cir. 1996). Cf. May v. United \nStates, No. 91-0650-CV-W-9, 1995 WL 761107, at *6 (W.D. Mo. Oct. 5, \n1995) (because letters conformed to IRM provisions, disclosures fell \nwithin section 7431(b) good faith provision), aff'd, 141 F.3d 1169 (table \ncite), 1998 WL 71545 (8th Cir. Feb. 23, 1998). \n",
"1-22 \n4. Datamatic Servs. Corp. v. United States, No. C-86-6447 EFL, 1987 WL \n28603, at *4-5 (N.D. Cal. Dec. 18, 1987) (because prefiling notification \nletters followed revenue procedure, good faith defense was available). \n5. Diamond v. United States, 944 F.2d 431, 435 (8th Cir. 1991) (although \nit was improper for special agent to identify himself as an employee of \nthe Criminal Investigation Division in circular letters that he sent to \ndoctor’s patients, no liability found because he had followed the IRM). \n6. Flippo v. United States, 670 F. Supp. 638, 643 (W.D.N.C. 1987) \n(plaintiff produced no evidence that revenue agent’s actions were in \nbad faith, as he acted under the assumption that his attempts to \ncontact the petitioner and his servicing of liens and levies for the \ncollection of delinquent taxes were authorized under the Code) aff'd \nmem., 849 F.2d 604 (4th Cir. 1988) (table cite) (text published by 1988 \nWL 60765, at *1 (4th Cir. 1988)). \n7. Gandy v. United States, 234 F.3d 281, 286-87 (5th Cir. 2000) (court \nskipped determination of whether an unauthorized disclosure had \noccurred, but instead found no liability because agents acted in good \nfaith belief that IRM and section 6103 permitted disclosure; in dicta, \ncourt stated that special agents are permitted to show their badges and \ncredentials when conducting third-party interviews). \n8. Harris v. United States, 35 Fed. App’x 390, 89 A.F.T.R.2d 2002-2687 \n(5th Cir. 2002) (affirming lower court finding that revenue officer who \ndisclosed that the plaintiffs had a judgment filed against them for a \nspecific amount had acted in a good faith belief that the disclosure was \npermitted as a disclosure of information in the public record). \n9. Huckaby v. United States, 794 F.2d 1041, 1049, reh'g denied, clarified,\n804 F.2d 297 (5th Cir. 1986) (revenue officer disclosed return \ninformation based upon taxpayer's oral consent; court found that \nsection 6103(c) requires a written consent and because the statute and \nregulations were clear, revenue officer's failure to follow them could not \nbe a good faith, but erroneous, interpretation of section 6103). \n10. Husby v. United States, 672 F. Supp. 442, 445 (N.D. Cal. 1987) (good \nfaith defense applies only to good faith, but erroneous, interpretations \nof section 6103, not to general defense of good faith errors in \ndeficiency assessments and subsequent collection activities). \n11. Ingham v. United States, 167 F.3d 1240, 1245-46 (9th Cir. 1999) \n(without deciding whether disclosure to a man that his former wife had \nfiled for a refund was authorized by section 6103(h)(4), government \n",
"1-23 \nwas protected by good faith defense because the IRM instructed \nagents that such disclosure was permitted). \n12. Johnson v. Sawyer, 640 F. Supp. 1126, 1134 (S.D. Tex. 1986) \n(subsequent history omitted) (public affairs officer failed to contact \nAUSA, as required by district guidelines, before issuing press release \nwhich contained return information; under predecessor to section 7431, \nfailure to follow established procedures formed basis for finding of bad \nfaith).\n13. Jones v. United States, 954 F. Supp. 191, 192 (D. Neb. 1997) \n(subsequent history omitted) (special agent who did not consult either \nIRM or Code before disclosing to a confidential informant that a search \nwarrant was to be executed the following day at taxpayers’ place of \nbusiness failed to establish a good faith, but erroneous, interpretation \nof the statute). \n14. LeBaron v. United States, 794 F. Supp. 947, 953-54 (C.D. Cal. 1992) \n(citing Huckaby, found nothing in the statute, case law, or IRS policies \nor regulations to suggest that the IRS personnel who made the \ndisclosure had interpreted section 6103 in an objectively unreasonable \nmanner). \n15. McLarty v. United States, 741 F. Supp. 751, 756-58 (D. Minn. 1990), \non reconsideration, 784 F. Supp. 1401, 1404 (D. Minn. 1991) (initially \nadopted a test that contained both objective and subjective \ncomponents for judging good faith defense; following Diamond, above, \nissued a subsequent opinion adopting objective standard (i.e., did \nwrongful disclosure of the plaintiff's return information violate a clearly \nestablished statutory right of which a reasonable person would have \nknown), and found that IRS agent and AUSA were presumed to know, \nas a general matter, that it is improper to disclose return information), \naff’d, 6 F.3d 545 (8th Cir. 1993). \n16. Millenium Marketing Group, LLC v. United States, Civ. No. H-06-962, \n2010 WL 1768235, at *13-20 (S.D. Tex. Feb. 9, 2010) adopted by 2010 \nWL 1485925 (S.D. Tex. Mar. 24, 2010) (disclosures made to plan \nparticipants regarding the abusive nature of the tax plan were allowable \nunder section 6103(e), (k), and in the alternative, both Chief Counsel \nattorneys met the good faith exception under section 7431(b)(1)). \n17. Payne v. United States, 289 F.3d 377, 385 (5th Cir. 2002) (district court \ndid not have the benefit of the court’s decision in Gandy, above; \nreversed plaintiff’s $1.5 million judgment and remanded for the district \ncourt to apply the Gandy rationale). \n",
"1-24 \nNote: In a well-reasoned concurrence/dissent, Judge Garza \ncautioned that the district court had incorrectly applied the good \nfaith defense because it had failed to first determine whether any \nunauthorized disclosures had occurred. 289 F.3d at 391-92. \n18. Plotkin v. United States, 465 Fed. App’x. 833-34 (11th Cir. 2012) \n(Where compliance with IRS-related conditions of probation in a \ncriminal tax case required the defendant to file and pay all taxes, the \ncourt held that the IRS's disclosure of the defendant's return \ninformation to his probation officers was authorized by section \n6103(h)(4)(A) upon finding that the probation revocation proceedings \nwere an extension of the defendant's criminal proceeding for tax \ncrimes. Even assuming arguendo that disclosure was not authorized, \nthe court concluded that the good faith exception would apply because \nthe Internal Revenue Manual allowed for disclosure of return \ninformation to a probation officer under similar circumstances.) \n19. Rhodes v. United States, 903 F. Supp. 819, 822, 826 (M.D. Pa. 1995) \n(upon reconsideration, rejected the Fifth and Eighth Circuits' reasoning \nin Barrett and Diamond, above, respectively, that disclosure of the fact \nof criminal investigation was not \"necessary\" to obtain information \nsought; fashioned its own objective, rather than subjective, standard: \n\"Would a reasonable agent, under the circumstances of the case and \nknowing that disclosure must be kept to a minimum, disclose this \namount of information in order to obtain the cooperation of a \nreasonable person receiving the form letter?\"). \n20. Rorex v. Traynor, 771 F.2d 383, 387 (8th Cir. 1985) (taxpayers entered \ninto installment payment plan, which was subsequently disallowed by \nrevenue officer's manager, and revenue officer failed to notify \ntaxpayers of disallowance and served a notice of levy on the taxpayers' \nbank; court, using an objective standard, found that a reasonable \nperson would have known that he was violating the taxpayers' rights \nunder section 6103). \nNote: This case was decided before the addition of section 7433 to \nthe Code. Section 7433 addresses damages arising from improper \ncollection practices. Under today’s statutory scheme, this case \nwould (should) have been brought under section 7433. \n21. Ryan v. United States, No. Civ. A. AQ-97-3548,1998 WL 919881, at *3-\n4 (D. Md. July 30, 1998) (although disclosure was permitted under \nsection 6103(h)(4), also held that the disclosure was made with the \ngood faith belief that section 6103 permitted it because it was a “close \ncall”). \n",
"1-25 \n22. Rubel v. United States, No. ST-C-87-28, 1988 WL 167270, at *6 \n(W.D.N.C. Aug. 26, 1988) (government officials acted in good faith in \nissuing press release). \n23. Schachter v. United States, 866 F. Supp. 1273, 1275 (N.D. Cal. 1994) \n(circular letters were sent to present and former customers of \ntaxpayers' company and IRM in effect at the time recommended that \nspecial agents state that the taxpayer was \"under investigation\" and \ninstructed special agents to identify themselves in personal interviews \nby showing their badge and credentials; agent and IRS acted in good \nfaith because, based on these provisions, a reasonable special agent \nwould not have known that he should not have disclosed that taxpayer \nwas under investigation), aff’d, 77 F.3d 490 (9th Cir. 1996). \n24. Smith v. United States, 703 F. Supp. 1344, 1348 (C.D. Ill. 1989) \n(District Director's disclosures to Illinois Department of Revenue did not \nfollow the procedures set forth in the Implementing Agreement, and \ntherefore violated section 6103(d); moreover, the District Director was \n\"no stranger to the disclosure provisions\" and under the Huckaby\nobjective standard, lacked good faith), aff'd in part & rev'd in part on \nother grounds, 964 F.2d 630, 635 (7th Cir. 1992) (not addressing the \ngood faith issue, the Agreement on Coordination satisfied section \n6103(d)'s written request requirement and, therefore, the disclosure \nwas authorized). \n25. Snider v. United States, 468 F.3d 500, 506-07 (8th Cir. 2006), petition \nfor reh’g en banc denied, No. 05-3636 (8th Cir. Feb. 1, 2007), nonacq.,\nI.R.B. 2007-30 (July 23, 2007) (In a holding to which the Service does \nnot acquiesce, and in conflict with other circuit court decisions, the \nEighth Circuit concluded that a special agent’s disclosure of the identity \nof the taxpayer being investigated was not authorized by section \n6103(k)(6) because the government had not shown that such disclosure \nwas necessary and because “Section 6103 clearly defines both ‘a \ntaxpayer’s identity’ and ‘whether the taxpayer’s return was, is being, or \nwill be examined or subject to other investigation’ as ‘return information.’ \n. . . An agent violates the statute, as well as the Internal Revenue \nManual, when he or she identifies the subject of his or her investigation.” \nId. at 507.). Action on decision (disagreeing with the Eighth Circuit’s \nholdings) is available at: http://www.irs.gov/pub/irs-aod/aod200703.pdf.\n26. Traxler v. United States, No. CV-F-87-725 REC, 1988 WL 149358, at \n*5 (E.D. Cal. Nov. 23, 1988) (even if deficiency assessment was \nunauthorized, there would be no liability because of the good faith \nexception and compliance with section 6103(k)(6)). \n",
"1-26 \nNote: Although we realize there is a certain judicial economy in \ndeciding the matter without first ruling whether an unauthorized \ndisclosure actually occurred, skipping that step disserves the IRS \nand the public. If the court finds no liability based on the good faith \ndefense absent ruling on the validity of the disclosure, the IRS is \nunable to determine whether the challenged conduct is unlawful \nand take any necessary remedial steps. \nIII. DAMAGES FOR UNAUTHORIZED DISCLOSURE AND INSPECTION \nThe statute provides two damage computations. A prevailing plaintiff may recover the \ncosts of the action plus the greater of (1) statutory damages of $1,000 for each act of \nunauthorized inspection or disclosure or (2) the sum of actual damages plus, in the case \nof a willful inspection or disclosure, or an inspection or disclosure resulting from gross \nnegligence, punitive damages. I.R.C. § 7431(c). \nA. Statutory Damages \nStatutory damages are limited to each act of inspection or disclosure, rather than \neach item of return information inspected or disclosed; the inspection or \ndisclosure of multiple items of return information is not multiple inspections or \ndisclosures. Moreover, the Service’s position is that damages are not based \nupon the number of persons who eventually may read or hear the information \nwrongfully disclosed. Therefore, the United States should not be held \nresponsible for redisclosures of return information, e.g., to a newspaper's \nsubscribers.\n1. Barrett v. United States, 917 F. Supp. 493, 502 (S.D. Tex. 1995), after\nremand from 51 F.3d 475 (5th Cir. 1995), aff’d, 100 F.3d 35 (5th Cir. \n1996) (after finding of liability, plaintiff entitled to statutory damages in \nthe amount of $260,000, based on the number of patients it was \npresumed received circular letters from the IRS in absence of proof \nthat they had not received the letters, but was not entitled to actual or \npunitive damages). \n2. Huckaby v. United States, 794 F.2d 1041, 1050 (5th Cir. 1986) \n(disclosure of taxpayer's records to state agency based upon oral \nconsent was only one act of unauthorized disclosure, and did not \nwarrant punitive damages). \nNote: Huckaby was decided before the amendments to section \n6103(c) and the publication of Treas. Reg. § 301.6103(c)-1 that \npermit the acceptance of a verbal consent in specific \ncircumstances. See generally Chapter 2, Part II. \n",
"1-27 \n3. Johnson v. Sawyer, 640 F. Supp. 1126, 1136 (S.D. Tex. 1986), aff’d, \n980 F.2d 1490 (5th Cir. 1992), rev’d and remanded on other grounds, \n47 F.3d 716, 738 (5th Cir. 1995) (damages for unauthorized \ndisclosures of a press release determined by number of media outlets \nsent the document, not number of persons who may have actually read \nit - \"the degree of a violator's punishment should turn upon a factor \nwithin the violator's knowledge and control (e.g., the number of media \noutlets receiving the release) rather than a factor outside her \nknowledge or control (e.g., the number of employees each of those \noutlets happens to allow to read the release\")). \n4. Mallas v. United States, 993 F.2d 1111, 1125 (4th Cir. 1993) (single \nletter addressed to two named persons in a single envelope constituted \ntwo disclosures). \n5. Marré v. United States, Civ. A. No. H-88-1103, 1992 WL 240527, at *2 \n(S.D. Tex. June 22, 1992) (a single communication cannot be split into \npieces to create multiple disclosures, nor does disclosure of the same \ninformation to the same person on multiple occasions constitute \nmultiple disclosures), aff’d in part on other grounds, modified in part on \nother grounds, vacated in part on other grounds, 38 F.3d 823 (5th Cir. \n1994). \n6. Miller v. United States, 66 F.3d 220, 223-24 (9th Cir. 1995) (limiting \ndamages to $1,000 and rejecting taxpayer’s argument that statutory \ndamages for unauthorized disclosure to a newspaper reporter should \nbe calculated by reference to number of potential readers, \"in the \nmodern era of mass communication,” strong public policy concerns \nexist for not allowing this form of second-party dissemination to be \nactionable, and disclosure to person(s) likely to publish the information \nis relevant only in determining degree of negligence or recklessness \ninvolved, not number of disclosures). \n7. Rorex v. Traynor, 771 F.2d 383, 385 (8th Cir. 1985) (although levy \ncontained multiple items of return information, court awarded $1,000 \nbecause only one levy was issued). \n8. Siddiqui v. United States, 359 F.3d 1200, 1203 (9th Cir. 2004) (act of \ndisclosure, not size of the audience that is counted for purposes of \nstatutory damages), aff’g 217 F. Supp.2d 985, 989-91 (D. Ariz. 2002). \n9. Smith v. United States, 730 F. Supp. 948, 954 (C.D. Ill. 1990) \n(memorandum to two people at one time was only one act of \ndisclosure), rev’d in part and aff’d in part, 964 F.2d 630, 636 (7th Cir. \n1992). \n",
"1-28 \nSuccessful plaintiffs rarely recover actual damages due to the difficulty of \nestablishing losses attributable to the disclosure of returns or return information. \n1. Jones v. United States, 9 F. Supp. 2d 1119, 1137 (D. Neb. 1998) \n(common law elements of causation must be proven to recover actual \ndamages, i.e., “but for” the disclosure the harm would not have \noccurred and the harm was the foreseeable result of the disclosure - \nplaintiffs could recover for economic losses of operating business, \ndamages from sale of real and personal property, and emotional \ndistress), following determination of liability in 954 F. Supp. 191 (D. \nNeb. 1997) (prior and subsequent history omitted). \n2. Wilkerson v. United States, No. 3:92-cv-78 (E.D. Tex. May 16, 1994) \n(plaintiff awarded $229,547.19 based primarily upon the value of her \nbusiness, \"which was effectively destroyed by the unauthorized \ndisclosures\" in levies), rev'd in part on other grounds, 67 F.3d 112 (5th \nCir. 1995). \nB. Emotional Distress \nOne issue addressed infrequently is whether actual damages are limited to \neconomic loss or include recovery for non-pecuniary items such as emotional \ndistress.\n1. Jones v. United States, 9 F. Supp. 2d 1119, 1149 (D. Neb. 1998) \n(plaintiffs entitled to emotional distress damages when they \ndemonstrate out of pocket damages), following determination of liability \nin 954 F. Supp. 191 (D. Neb. 1997) (prior and subsequent history \nomitted). \n2. Rorex v. Traynor, 771 F.2d 383, 387-88 (8th Cir. 1985) (taxpayers \nwere awarded $15,000 each for emotional suffering; however, on \nappeal, the Eighth Circuit found that plaintiffs had produced no \nevidence of emotional distress other than personal embarrassment and \nthe court did not believe that \"hurt feelings alone constitute actual \ndamages compensable under the statute\"). \n3. Schipper v. United States, No. CV-94-4049 (CPS), 1998 WL 786451, at \n*10-11 (E.D.N.Y. Sept. 15, 1998) (unauthorized disclosures made in \nthe course of unlawful levies humiliated plaintiff in eyes of coworkers; \nplaintiff awarded damages for physiological symptoms stemming from \nhumiliation). \n4. Wilkerson v. United States, 67 F.3d 112, 117-18 (5th Cir. 1995) \nreversing in part, No. 3:92-cv-78 (E.D. Tex. May 16, 1994) (reversing \naward of $20,000 for emotional distress upon a determination that no \n",
"1-29 \nunauthorized disclosure had occurred through the issuance of an \ninvalid levy). \nCases under the Privacy Act are analogous because the Privacy Act has a \nsimilar damages provision. Generally, the courts have held that actual damages \nfor violations of the Privacy Act are limited to out-of-pocket losses. See, e.g., \nHudson v. Reno, 130 F.3d 1193, 1207 (6th Cir. 1997); Fitzpatrick v. IRS, 665 \nF.2d 327, 329-31 (11th Cir. 1982); DiMura v. FBI, 823 F. Supp. 45, 48 (D. Mass. \n1993); Pope v. Bond, 641 F. Supp. 489, 500-01 (D.D.C. 1986); and Houston v. \nDep't of Treasury, 494 F. Supp. 24, 30 (D.D.C. 1979). Note that in Johnson v. \nIRS, 700 F.2d 971, 974-80 (5th Cir. 1983), the court held that actual damages \nincluded pain and suffering, and in Albright v. United States, 732 F.2d 181, 185-\n86 n.11 (D.C. Cir. 1984), the court noted, in dicta, that non-economic injuries or \ndamages other than out-of-pocket expenses could qualify as \"actual damages\" \nunder 5 U.S.C. § 552a(g)(4). Cf. Doe v. Chao, 540 U.S. 614, 614-15 (2004) \n(unlike section 6103, which provides for award of statutory damages in absence \nof actual damages, Privacy Act requires proof of actual damages, however \nminimal, to qualify for minimum damage award). \nThe legislative history is silent as to whether Congress intended for section 7431 \nto include recovery for emotional distress within the ambit of “negligence.” The \nSenate Report merely parrots the statutory language by noting that the United \nStates is liable to a person whose returns or return information was knowingly or \nnegligently disclosed in violation of section 6103. See S. REP. NO. 97-760, at \n676 (1982). Although it could be argued that when Congress used the phrase \n“negligence” in the statute it intended for the general law of negligence to apply, \nincluding the applicable law on damages, the Supreme Court’s opinions relating \nto the waiver of sovereign immunity in two cases interpreting other statutes may \nbe instructive. \nIn United States v. Nordic Vill. Inc., 503 U.S. 30, 33-34 (1992), the Supreme \nCourt held that in the absence of clear statutory authority waiving sovereign \nimmunity, a bankruptcy trustee cannot recover monetary damages from the \ngovernment for post-petition transfers. The court noted the established doctrine \nthat waivers of sovereign immunity must be unequivocally expressed and must \nbe construed strictly in favor of the government. The Court stated “Legislative \nhistory has no bearing on the ambiguity point . . . . [T]he ‘unequivocal expression’ \nof elimination of sovereign immunity that we insist upon is an expression in \nstatutory text. If clarity does not exist there, it cannot be supplied by a committee \nreport.” Id. at 37. In Lane v. Pena, 518 U.S. 187, 192 (1996), the Supreme \nCourt held that a Merchant Marine cadet who was discharged from the academy \nin violation of the Rehabilitation Act cannot recover monetary damages from the \ngovernment because the 1986 amendments to the Act did not provide for \nmonetary damages against federal agencies. Accordingly, a damage award \nagainst the United States must be limited to only so much as is authorized by the \n",
"1-30 \nstatute waiving sovereign immunity, and if the statute does not clearly provide for \nrecovery for emotional distress, recovery should not be awarded. \nNote: Section 7433, which was added to the Code in 1988 and provides \nfor civil damages for unauthorized collection activity, provides only for \n\"actual, direct economic damages\" plus the costs of the action (enacted by \nPub. L. No. 100-647, § 6241(a), 102 Stat. 3342 (1988)). \nC. Punitive Damages \n1. Barrett v. United States, 917 F. Supp. 493, 503 (S.D. Tex. 1995) (no \npunitive damages because (1) disclosures were not willful or grossly \nnegligent and (2) statutory language of section 7431(c) precludes \naward of punitive damages where actual damages not proven, which is \nconsistent with the common law tort rule), aff'd, 100 F.3d 35 (5th Cir. \n1996). \n2. Mallas v. United States, 993 F.2d 1111, 1125 (4th Cir. 1993) (taxpayer \nmay recover punitive damages in excess and instead of statutory \ndamages, not in addition to statutory damages, even if the actual \ndamages are zero). \n3. Marré v. United States, Civ. A. No. H-88-1103, 1992 WL 240527, at *4 \nn.3 (S.D. Tex. June 22, 1992) (\"Though we take a decidedly dim view \nof [the agent's] actions, we are precluded from granting punitive \ndamages without an award of actual damages”), aff’d on other \ngrounds, 38 F.3d 823, 826-27 (5th Cir. 1994) (without deciding whether \ndistrict court was correct, found special agent's conduct was not so \negregious as to warrant punitive damages). \n4. Mid-South Music Corp. v. United States, 579 F. Supp. 481, 485 (M.D. \nTenn. 1985), aff’d in part, rev’d in part, 756 F.2d 23 (6th Cir. 1984) \nremanded to 1985 WL 3673 (M.D. Tenn. Sept. 24, 1985), rev'd, 818 \nF.2d 536, 537 (6th Cir. 1987) (district court awarded $174,000 in \nstatutory damages, plus $1,000 in punitive damages for unauthorized \ndisclosure of return information; circuit court reversed and remanded to \ndistrict court for entry of judgment for defendant, as no liability exists \nwhere the IRS disclosed taxpayer’s own information to taxpayer). \n5. Rorex v. Traynor, 771 F.2d 383, 387 (8th Cir. 1985) (on appeal, court \ndid not find any evidence to support the conclusion that the disclosure \nwas either willful or the result of gross negligence). \nNote: This case was decided before the addition of section 7433 to \nthe Code. Section 7433 addresses damages arising from improper \n",
"1-31 \ncollection practices. Under today’s statutory scheme, this case \nwould (should) have been brought under section 7433. \n6. William E. Schrambling Accountancy Corp. v. United States, 689 F. \nSupp 1001, 1008 (N.D. Cal. 1988) (punitive damages are not available \nunless plaintiff proves actual damage), rev'd on other grounds, 937 \nF.2d 1485 (9th Cir. 1991). \n7. Siddiqui v. United States, 395 F.3d 1200, 1201 (9th Cir. 2004) (no \npunitive damages without proof of actual damages), aff’g 217 F. Supp. \n2d 985, 989-91 (D. Ariz. 2002). \n8. Smith v. United States, 730 F. Supp. 948, 954-55 (C.D. Ill. 1990) \n(criticizing the district court in Mid-South Music, above, punitive \ndamages not available in the absence of actual damages), rev'd on \nother grounds, 964 F.2d 630 (7th Cir. 1992). \nIV. ATTORNEYS FEES IN I.R.C. § 7431 ACTIONS \nSection 7431(c) provides that the plaintiff may recover \n(1) the greater of (A) $1,000 for each act of unauthorized inspection or disclosure \nof a return or return information with respect to which such defendant is found \nliable, or (B) the sum of – (i) the actual damages sustained by the plaintiff as a \nresult of such unauthorized inspection or disclosure, plus (ii) in the case of a \nwillful inspection or disclosure or an inspection or disclosure which is the result of \ngross negligence, punitive damages, plus (2) the costs of the action, plus (3) in \nthe case of a plaintiff which is described in section 7430(c)(4)(A)(ii) [meets the \nrequirements of 28 U.S.C. § 2412(d)(1)(B), i.e., by submitting request within 30 \ndays showing entitlement], reasonable attorneys fees, except that if the \ndefendant is the United States, reasonable attorneys fees may be awarded only \nif the plaintiff is the prevailing party (as determined under section 7430(c)(4)). \nTo be considered the prevailing party under section 7430, plaintiffs must establish (1) \nthat the position of the United States is not substantially justified, and (2) that they have \nprevailed with respect to the amount in controversy or with respect to the most \nsignificant issue presented. I.R.C. § 7430(c)(4).32\n32 There is little case law on the application of the provisions under sections 7430 and 7431. Before \n1998 when section 7430 was amended, the circuits were split as to whether a plaintiff could recover \nattorneys fees for successfully prosecuting a section 7431 suit. Compare McLarty v. United States, 6 \nF.3d 545 (8th Cir. 1993) (where the underlying proceeding was unrelated to a civil tax proceeding, \nsection 7430 was inapplicable) and Scrimgeour v. IRS, 149 F.3d 318 (4th Cir. 1998) (underlying claim \nof unauthorized disclosure did not pertain to determination of any tax) with Huckaby v. United States,\n804 F.2d 297 (5th Cir. 1986) (concluding that underlying claim pertained to tax liability because the \nIRS was in possession of plaintiff’s records - which were disclosed - for the purpose of determining \nhis liability). By amending the statute to include attorneys fees, Congress was sending a clear \n",
"1-32 \nV. OTHER ISSUES IN I.R.C. § 7431 ACTIONS \nA. Proper Party \nThe United States is the only proper party defendant for unauthorized \ndisclosures by federal employees. Nevertheless, the alleged unauthorized \ndisclosure must have been made by an individual who was an officer or \nemployee of the federal government at the time of the disclosure. \n1. Adelman v. Discover Card Servs., 915 F. Supp. 1163, 1165 (D. Utah \n1996) (rejecting argument that United States was liable because of \nspecial relationship between state agency and federal government, \ncourt held no liability where a state employee accessed plaintiff’s files \nand disclosed confidential tax records). \n2. Clode-Baker v. Cocke, No. A-11-CV-977-LY, 2012 WL 1357023 (April \n16, 2012, W.D.Tex.) (Plaintiff failed to state a claim where she alleged \nher former daughter-in-law obtained copies of her returns and \nforwarded them to the IRS Whistleblowers office. Section 6103 only \nprohibits disclosure of return information by certain individuals who fall \nwithin the statute.) \n3. Diamond v. United States, 944 F.2d 431, 432 (8th Cir. 1991) (United \nStates is the only proper party defendant even though special agent's \nactions formed the basis for the unauthorized disclosure action). \n4. Flippo v. United States, 670 F. Supp. 638, 639 (W.D.N.C. 1987) \n(rejected plaintiff's attempt to name a revenue agent as a defendant), \naff'd mem., 849 F.2d 604 (table cite), 1988 WL 60765, at *1 (4th Cir. \nJune 7, 1988). \n5. Hassell v. United States, 203 F.R.D. 241, 244 (N.D. Tex. 1999) (even \nassuming IRS employees made unauthorized disclosures of return \ninformation, the claim is against the United States, not individual \nemployees). \n6. Henkell v. United States, No. S-96-2228 MLS GGH, S-97-0017 MLS \nGGH, 1998 WL 41565, at *8 (E.D. Cal. Jan. 9, 1998) (by its express \nlanguage, section 7431 authorizes suit only against the United States \nand not against individual employees). \nmessage that “when the IRS violates taxpayer’s right to privacy by engaging in unauthorized \ninspection or disclosure activities, it is appropriate to reimburse taxpayers for the costs of their \ndamages.” S. REP. NO. 105-174, reproduced at IRS Restructuring and Reform, Law, Explanation and \nAnalysis, ¶ 10250 at 599 (CCH 1998). \n",
"1-33 \n7. Payne v. United States, No. Civ. A. H-97-2255, 1998 WL 773625, at *3 \n(S.D. Tex. Feb. 10, 1998) (even though \"the United States may not be \nheld liable in a civil action for unlawful disclosure of tax return \ninformation by a former officer or employee,\" the plaintiff was given \nleave to amend complaint to add former employee). \n8. Ungaro v. Desert Palace, No. CV S 88-838 RDF, 1989 WL 199264, at \n*4-5 (D. Nev. Nov. 17, 1989) (because the disclosures were specifically \nauthorized under section 6103(h), no violation of 6103 occurred; \nsection 7431 does not apply as a remedy against individual \nemployees). \n9. Young v. Boyle, 849 F.2d. 610 (table cite), No. 83-1789, 1988 WL \n62397 at *2 (6th Cir. 1988) (claims for damages against judge and law \nclerk for summons enforcement proceedings in which financial \ninformation was disclosed were barred by doctrine of judicial immunity), \naff’g No. 83-1789 (E.D. Mich. Nov. 30, 1982) (unpublished opinion). \nB. Specificity \nA complaint filed pursuant to section 7431 must allege with specificity the returns \nor return information inspected or disclosed, the dates of inspection or \ndisclosure, to whom information was disclosed, and any other facts sufficient to \ninform the defendant of the particulars of the alleged violation. Absent such \ninformation, motions to dismiss for failure to state a claim pursuant to Federal \nRule of Civil Procedure 12(b)(6) have been successful. Generally, however, \ncourts dismiss without prejudice and provide plaintiffs an opportunity to amend \nthe complaint. \n1. Aloe Vera of Am., Inc. v. United States, 580 F.3d 867, 872 (9th Cir. \n2009) (two-year statute of limitations on claim for wrongful disclosure of \nreturn information accrues when plaintiffs knew or should have known \nof disclosure), remanded to 730 F. Supp. 2d 1020 (D. Ariz. 2010) (on \nremand, district court held that certain plaintiffs’ failure to establish \nspecific dates barred portions of their complaint asserting that the IRS \nhad disclosed false information to a foreign tax authority and that the \nIRS knew or should have known that the information would be leaked), \nappeal docketed, No. 10-17136 (9th Cir. Sept. 24, 2010). \n2. Bleavins v. United States, No. 90-3178, 1991 U.S. Dist. LEXIS 20975, \nat *3-4 (C.D. Ill. Jan. 18, 1991) (complaint did not allege to whom the \ninformation was disclosed or the items of information disclosed; action \ndismissed without prejudice, providing plaintiff 20 days to amend \ncomplaint). \n",
"1-34 \n3. Colton v. IRS, No. CV-R-85-635-ECR, 1989 U.S. Dist. LEXIS 12021, at \n*17-18 (D. Nev. Apr. 4, 1989) (dismissed complaint because it \ncontained mere legal conclusions not factual allegations). \n4. Flippo v. United States, 670 F. Supp. 638, 641 (W.D.N.C. 1987) (case \ndismissed against revenue agent personally and non-government \ndefendants for failure to allege specific instances of wrongdoing; district \ncourt examined only whether violations of 6103 occurred in revenue \nagent’s efforts to contact petitioner or institute collection), aff'd mem.,\n849 F.2d 604 (table cite), 1988 WL 60765, at *1 (4th Cir. June 7, 1988). \n5. May v. United States, No. 91-0650-CV-W-9, 1992 U.S. Dist. LEXIS \n16055, at *6 (W.D. Mo. Apr. 17, 1992) (plaintiff must specifically allege \nwho made the alleged disclosures, to whom they were made, the \nnature of the disclosures, the circumstances surrounding them, and the \ndates on which they were made). \n6. Soghomonian v. United States, 82 F. Supp.2d 1134, 1146-47 (E.D. \nCal. 1999) (section 7431 claim was subject to dismissal where \ncomplaint failed to state the “specific taxpayer information allegedly \ndisclosed, the timing of such alleged disclosures,” and other pertinent \ninformation).\n7. Tobin v. Troutman, No. Civ. A. 3:98-CV-663-H, 1999 WL 501004, at *4 \n(W.D. Ky. June 8, 1999) (more than a mere allegation of a violation is \nneeded to state a claim). \nC. Jury Trials \nSection 7431 lawsuits are not subject to jury trials. The Seventh Amendment \nright to a jury trial does not apply in actions against the federal government \nunless Congress has waived sovereign immunity and created that right by \nstatute. See Lehman v. Nakshian, 453 U.S. 156, 162 n.9 (1981) (“Since there is \nno generally applicable jury trial right that attaches when the United States \nconsents to suit, the accepted principles of sovereign immunity require that a jury \ntrial right be clearly provided in the legislation creating the cause of action.”); see \nalso United States v. Testan, 424 U.S. 392, 399 (1976) (“the United States, as \nsovereign, is immune from suit save as it consents to be sued . . . and the terms \nof its consent to be sued in any court define that court’s jurisdiction . . . a waiver \nof the traditional sovereign immunity cannot be implied but must be \nunequivocally expressed”) (internal quotations omitted). \nSection 7431 is silent regarding a jury trial. Following the rationale in Lehman,\nno such right exists in section 7431 cases. Accordingly, courts that have \nconsidered whether a plaintiff is entitled to a jury trial pursuant to section 7431 \nhave unanimously found that there is no such entitlement. \n",
"1-35 \n1. Agbanc v. Berry, 678 F. Supp. 804, 809 (D. Ariz. 1988). \n2. Carbo v. United States, No. Civ. A. 97-2461, 1998 WL 918473, at *3 \n(W.D. La. Dec. 30, 1998). \n3. Christensen v. United States, 733 F. Supp. 844, 854 (D.N.J. 1990), \naff'd, 925 F.2d 416 (3d Cir. 1991) (table cite). \n4. Ret. Care Assoc. v. United States, 3 F. Supp. 2d 1434, 1445 (N.D. Ga. \n1998). \nD. Exclusive Remedy \nIt is the IRS’s position, and most courts have agreed, that section 7431 is the \nexclusive remedy for unauthorized disclosure of returns or return information. \nThis section explores some other remedies that plaintiffs have sought for alleged \ndisclosure violations. \n1. Bivens\nIn Bivens v. Six Unknown Named Agents of Fed. Bureau of Narcotics, 403 \nU.S. 388 (1971), the Supreme Court recognized a cause of action against \nfederal employees who violated an individual’s Fourth Amendment rights, \neven though the Fourth Amendment did not expressly authorize a remedy. \nThe court reasoned that “‘it is . . . well settled that where legal rights have \nbeen invaded, and a federal statute provides for a general right to sue for \nsuch invasions, federal courts may use any available remedy to make \ngood the wrong done.’” Id. at 396 (citing Bell v. Hood, 327 U.S. 678, 684 \n(1946)). However, the courts generally have declined to provide Bivens\nrelief to taxpayers for claims premised on tax administration activities \nbecause of the comprehensive remedial scheme Congress passed in the \nCode. \na. Cameron v. IRS, 773 F.2d 126, 129 (7th Cir. 1985) (“Congress \nhas given taxpayers . . . rights against an overzealous [official], \nincluding . . . the right to sue the government for a refund if \nforced to overpay taxes, and it would make the collection of \ntaxes chaotic if a taxpayer could bypass the remedies provided \nby Congress simply by bringing a damage action against \nTreasury employees”). \nb. Fishburn v. Brown, 125 F.3d 979, 982-83 (6th Cir. 1997) (court \ndeclined to create Bivens action against revenue officers for \nalleged due process violations during seizure) (section 7433 \ncase).\n",
"1-36 \nc. Judicial Watch, Inc. v. Rossotti, 317 F.3d 401, 413 (4th Cir. \n2003) (“‘it would be inappropriate to supplement the regulatory \nscheme with a new judicial remedy’ for alleged retaliatory tax \naudits”) (citing Bush v. Lucas, 462 U.S. 367 (1983)). \nd. Malis v. United States, No. CV 83-7767 (CBM), 1986 WL 15721, \nat *6 (C.D. Cal. Dec. 17, 1986) (no Bivens remedy lies for \nimproper disclosure of returns or return information). \ne. Shreiber v. Mastrogiovanni, 214 F.3d 148, 155 (3d Cir. 2000) \n(denial of Bivens remedy where plaintiff alleged violation of \nequal protection based on religious animus because \n“Congress’s efforts to govern the relationship between the \ntaxpayer and the taxman indicate that Congress has provided \nwhat it considers to be adequate remedial mechanisms for \nwrongs that may occur in the course of this relationship”). \n2. Federal Tort Claims Act \nA Federal Tort Claims Act (FTCA) claim cannot be premised on an \nunauthorized disclosure because the liability of the United States arises \nonly when the law of the state where the alleged wrong occurred would \nimpose it. Because section 6103 - which creates the general \nconfidentiality rule covering returns and return information - is federal law, \nnot state law, there can be no action for unauthorized disclosures under \nthe FTCA. \na. Cecile Indus., Inc. v. United States, 793 F.2d 97, 100 (3d Cir. \n1986) (FTCA not satisfied by federal statutes or regulations). \nb. Fishburn v. Brown, 125 F.3d 979, 982 (6th Cir. 1997) (suits \nalleging liability based on activity connected to the assessment \nor collection of taxes are expressly excluded from the FTCA). \nc. Johnson v. Sawyer, 47 F.3d 716, 729-30 (5th Cir. 1995) (en \nbanc) (claim wholly grounded on a duty imposed by federal \nstatute is not enough; state law of “negligence per se” and \nrespondeat superior were insufficient bases for federal tort \nclaim), rev’g and remanding, 980 F.2d 1490 (5th Cir. 1992). \nd. Sellfors v. United States, 697 F.2d 1362, 1365 (11th Cir. 1983) \n(FTCA not intended to redress breaches of federal statutory \nduties). \n",
"1-37 \n3. Exclusionary rule \na. In re Grand Jury, M.D.B. No. 82 536, slip op. at 10 (D. Mass. \nFeb. 22, 1983) (quashing of a grand jury subpoena on the \ngrounds of a section 6103 violation is not a proper remedy under \nsection 7431). \nb. Nowicki v. Commissioner, 262 F.3d 1162, 1163 (11th Cir. 2001) \n(“[The] imposition of the exclusionary rule is not warranted for a \ndisclosure of return information which violates section 6103. \nCongress has specifically provided civil (section 7431) as well \nas criminal penalties (section 7213) for violations of section \n6103. There is no statutory provision requiring exclusion of \nevidence obtained in violation of section 6103 and we will not \ninvent one.”). \nc. United States v. Chem. Bank, 593 F.2d 451, 457 (2d Cir. 1979) \n(suppression of evidence may be available for a section 6103 \nviolation) (dicta). \nd. United States v. Lavin, 604 F. Supp. 350, 355-56 (E.D. Pa. \n1985) (relying on Chemical Bank, above, to set aside portions of \nan affidavit supporting a search warrant application because of \nunauthorized disclosure). \ne. United States v. Mangan, 575 F.2d 32, 41 (2d Cir. 1978) \n(sections 7431 and 7213 are exclusive and therefore the \nexclusionary rule is not available to redress alleged wrongful \ndisclosures) (dicta). \n4. Injunctive relief \nTrahan v. Regan, 718 F.2d 449, 455-57 (D.C. Cir. 1983) (declaratory \njudgment is available to declare contemplated disclosures illegal and that, \nif declared illegal, injunctive relief could be granted to enjoin the \ncontemplated disclosures) (subsequent history omitted).33\n33 This is the only case where a court determined that declaratory relief was available to halt a \nproposed disclosure. The facts of the case make the holding unique. Congress had directed the \nSocial Security Administration to check on the eligibility of benefits recipients. The GAO suggested \nthat the SSA use returns and return information to identify ineligible recipients. Faced with the \nconfidentiality provision of section 6103, the SSA mailed consent forms to over 4 million benefits \nrecipients. Contemporaneous class actions were brought against the IRS and SSA to, inter alia, halt \nthe disclosures, and for a determination as to the appropriateness of the consents. In granting the \ninjunction, the court of appeals noted that the consent forms mailed by the SSA failed to meet the \nrequirements of the Treasury regulations under section 6103(c). \n",
"1-38 \n5. Conditional summons enforcement \nThere is a split in the circuits concerning conditional enforcement of \nsummonses. \na. United States v. Author Servs., Inc., 804 F.2d 1520, 1525 (9th \nCir. 1986) (relying on Texas Heart, below, even though \ngovernment had satisfied all the requirements for summons \nenforcement, a court may, as part of its inherent authority to \nassure that part of its process is not abused, condition summons \nenforcement on the requirement that the government secure \ncourt approval before the summoned records are disclosed to \nother government agencies (the condition being imposed to \nassure that any disclosure is in accordance with section 6103)), \namended by, 811 F.2d 1264 (9th Cir. 1987). \nb. United States v. Barrett, 837 F.2d 1341, 1349 (5th Cir. 1988) (en\nbanc) (overruled Texas Heart, below, indicating that conditional \nsummons enforcement was inappropriate), cert. denied, 492 \nU.S. 926, reh'g denied, 493 U.S. 883 (1989). \nc. United States v. Texas Heart, 755 F.2d 469, 482 (5th Cir. 1985) \n(appropriate for district court to determine whether section 6103 \nwas violated and, if so, to condition summons enforcement on \ncompliance with that section) overruled by Barrett, above. \nd. United States v. Zolin, 491 U.S. 554, 561 (1989) (equally divided \nSupreme Court let stand Ninth Circuit’s position on conditional \nsummons enforcement first adopted in Author Services, above) \non remand to 905 F.2d 1344 (9th Cir. 1990). \n6. Privacy Act \nGenerally, courts have held that the Privacy Act is not available to redress \nunauthorized disclosures of return information. \na. Berridge v. Heiser, 993 F. Supp. 1136, 1144 (S.D. Ohio 1997) \n(plaintiffs erroneously brought their suit under the Privacy Act; \nsection 7431 is the exclusive remedy by which to bring a cause \nof action for the unauthorized disclosure of returns or return \ninformation).\nb. Hobbs v. United States, 209 F.3d 408, 412 (5th Cir. 2000) \n(“§ 6103 is a more detailed statute that should preempt the more \ngeneral remedies of the Privacy Act, at least where, as here, \nthose remedies are in conflict”). \n",
"1-39 \nc. Sinicki v. United States, No. 97 CIV. 0901 (JSM), 1998 WL \n80188, at *2-3 (S.D.N.Y. Feb. 24, 1998) (plaintiff brought suit \nalleging that IRS violated Privacy Act by placing her tax returns \nin her personnel file; court rejected IRS’s arguments that section \n6103 prevails over the Privacy Act, and held that plaintiff may \npursue action for wrongful disclosure under both the Privacy Act \nand section 7431, but noted, however, that to extent the Privacy \nAct conflicted with section 6103, section 6103 prevailed). \n7. 18 U.S.C. § 1030(g) \nFor claims arising from the alleged unauthorized inspection of return \ninformation through the use of a computer, a civil remedy may also be \navailable under this criminal statute. However, certain conditions apply. \n8. I.R.C. § 7433 \nThe Code provides a civil damages remedy for unauthorized collection \nactivity occurring after November 10, 1988. The exclusive remedy for \nalleged unauthorized disclosures occurring in the course of collection \nactivities is section 7433. \na. Elias v. United States, No. CV 90-0432-WJR(JRX), 1990 WL \n264722, at *2 & n.7 (C.D. Cal. Dec. 21, 1990) (taxpayer may not \nuse section 7431 to challenge the merits of the assessment; it is \nreasonable to assume that Congress did not intend for section \n7431 damage suits to be maintained in situations arising from \ncollection activities given enactment of section 7433), aff'd \nmem., 974 F.2d 1341 (9th Cir. 1992) (table cite). \nb. Mann v. United States, 204 F.3d 1012, 1017 (10th Cir. Feb. 18, \n2000) (section 7433 provides taxpayers a remedy for \nunauthorized collection activities; court does not address \nexclusivity issue). \nc. Schipper v. United States, No. CV-94-4049 (CPS), 1998 WL \n786451, at *9-12 (E.D.N.Y. Sept. 15, 1998) (United States liable \nfor unauthorized disclosures resulting from erroneous levies in \nthe course of a failed collection of a tax refund on plaintiff’s \nwages and bank accounts despite plaintiff’s and plaintiff’s \ncounsel’s effort to correct the error; not a section 7433 matter \nbecause IRS sought to recover an erroneous refund rather than \na tax assessment). \n",
"1-40 \nd. Shwarz v. United States, 234 F.3d 428, 432-33 (9th Cir. 2000) \n(section 7433 addresses the willful or negligent act of \ndisregarding Title 26 during the collection of taxes; therefore any \nviolation of section 6103 during collection of taxes is addressed \nby section 7433). \ne. Simpson v. United States, No. 90-30021-RV, 1991 WL 253014, \nat *6-7 & n.8 (N.D. Fla. Oct. 9, 1991) (although disclosures in \nvarious liens and levies were authorized by section 6103(k)(6), \nsection 7433(a) applied to one of the levy claims and precluded \nany section 7431 liability). \nf. Soghomonian v. United States, 82 F. Supp. 2d 1134, 1147 (E.D. \nCal. 1999) (plaintiff failed to state a claim when he brought claim \nfor unauthorized disclosure through filing of Notice of Federal \nTax Lien; section 7433 is the exclusive remedy).34\nE. Authorized Disclosures Based Upon Validity of Summonses, Liens or \nLevies \nThere is a split in the circuits concerning the relevance of the validity of \nsummonses, liens or levies to whether certain disclosures were authorized. \n1. \"[W]hether a disclosure is authorized under section 6103 is in no way \ndependent upon the validity of the underlying summons, lien, or levy.\" \nElias v. United States, No. CV 90-0432-WJR (JRX), 1990 WL 264722, \nat *5 (C.D. Cal. Dec. 21, 1990), aff'd mem., 974 F.2d 1341 (9th Cir. \n1992) (table cite). \na. Farr v. United States, 990 F.2d 451, 455 (9th Cir. 1993) (where \ndisclosures were necessary to collection procedures, fact that \nthey may have been defective does not make disclosures \nwrongful). \nb. Huff v. United States, 10 F.3d 1440, 1447 (9th Cir. 1993) \n(possible procedural lapses in collection process will not render \nnecessary disclosures wrongful). \nc. Mann v. United States, 204 F.3d 1012, 1018-19 (10th Cir. 2000) \n(distinguishing Chandler v. United States, 687 F. Supp. 1515 (D. \n34 The amendments to section 7433 in RRA 98 lowered the threshold from willful to negligent \nviolations in the collection process and eliminated the use of section 7431 to collaterally attack \nunauthorized collection actions. \n",
"1-41 \nUtah 1988), aff’d per curiam, 887 F.2d 1397 (10th Cir. 1989), \nwhich had been decided before the passage of section 7433, \nwhere section 6103(k)(6) permits the issuance of levies and the \nfilings of liens, it is irrelevant whether there is a procedural \ndefect in the collection activity; “sections 6103 and 7431 address \nimproper disclosure of return information and not improper \ncollection activity”). \nd. McAdams v. United States, Civ. A. No. 3:95-621, 1996 WL \n303271, at *3 (W.D. La. June 24, 1996) (principle \"that the \npropriety of the underlying actions is irrelevant to the propriety of \nthe disclosure at issue, controls here\"). \ne. Spence v. United States, 114 F.3d 1198 (table cite), No. 96-\n2196, 1997 WL 314836, at *4 (10th Cir. June 12, 1997) (\"Neither \nthe plain language of the statute or the Treasury regulation [sic] \nauthorize this court to look behind the summons to determine \nwhether they [sic] were properly issued; §§ 7431 and 6103 \naddress improper disclosure, not improper summons\"). \nf. Venen v. United States, 38 F.3d 100, 105 (3d Cir. 1994) (court \njoined \"those cases that decline to consider the validity of the \nunderlying levy in deciding whether the IRS has disclosed in \nviolation of [I.R.C.] § 6103\"). \ng. Wilkerson v. United States, 67 F.3d 112, 117-18 n.10 (5th Cir. \n1995), reversing in part, No. 3:92-cv-78 (E.D. Tex. May 16, \n1994) (Congress enacted separate and distinct provisions \nconcerning collection activities and information handling, and \n\"[t]hese two bodies of law must remain distinct[;]\" absent \nadditional evidence, proof of a wrongful levy is \"legally \ninsufficient\" to support a claim for wrongful disclosure). \n2. Another line of cases does consider the validity of the levy to be \nrelevant to and/or determinative of unauthorized disclosures under \nsection 7431. \na. Husby v. United States, 672 F. Supp. 442, 445 (N.D. Cal. 1987) \n(disclosures made pursuant to a levy resulting from a computer \nerror did not fall under \"good faith\" exception because no \ninterpretation of section 6103 was involved). \nb. Maisano v. United States, 908 F.2d 408, 409-10 (9th Cir. 1990) \n(although not specifically linking the two, court considered \nvalidity of the underlying tax liens and levies before finding IRS \nauthorized to disclose under section 6103). \n",
"1-42 \nc. Rorex v. Traynor, 771 F.2d 383, 386 (8th Cir. 1985) (\"disclosure \nin pursuance of an unlawful levy violates the confidentiality \nrequirement of § 6103(a) and is not authorized under \n§ 6103(k)(6)\"). \nd. Schipper v. United States, No. CV-94-4049 (CPS), 1998 WL \n786451, at *9-12 (E.D.N.Y. Sept. 15, 1998) (United States held \nliable for unauthorized disclosures resulting from repeated \nerroneous levies on plaintiff’s wages and bank accounts despite \nplaintiff’s and plaintiff’s counsel’s effort to correct error; however, \nthe disclosures in this case occurred in the context of a failed \ncollection of a tax refund, not the collection of a tax liability). \ne. William E. Schrambling Accountancy Corp. v. United States, 689 \nF. Supp. 1001, 1006 (N.D. Cal. 1988) (improper notice of levy is \nbasis for liability under section 7431), rev'd on other grounds,\n937 F.2d 1485 (9th Cir. 1991). \nSee also Chapter 4, pertaining to investigative disclosures, and Treas. Reg. \n§ 301.6103(k)(6)-1. \nF. Statute of Limitations \nSection 7431(d) provides that actions for alleged unauthorized inspections or \ndisclosures of returns or return information must be brought within two years \nafter the date of discovery by the plaintiff of the unauthorized inspection or \ndisclosure. \n1. Aloe Vera of Am., Inc. v. United States, 580 F.3d 867, 872 (9th Cir. \nSept. 2, 2009) (two-year statute of limitations on claim for wrongful \ndisclosure of return information accrues when plaintiffs knew or should \nhave known of disclosure), remanded to 730 F. Supp. 2d 1020 (D. Ariz. \nAug. 3, 2010) (district court held that plaintiffs’ failure to establish \nspecific dates barred portions of their complaint asserting false IRS \ndisclosures to a foreign tax authority), appeal docketed, No. 10-17136 \n(9th Cir. Sept. 24, 2010). \n2. Amcor Capital Corp. v. United States, No. CV 94-6814 (GHKx), 1995 \nWL 515690, at *2-5 (C.D. Cal. June 13, 1995) (unauthorized disclosure \nclaim was time-barred because plaintiff failed to allege that it \ndiscovered the unauthorized disclosure within two years of date claim \nwas made against United States; plaintiff's own letters and internal \nmemoranda proved that its allegations of not discovering the \ngovernment's misconduct and unauthorized disclosures until a later \ndate were false), aff'd, 106 F.3d 406 (table cite), 1997 WL 22248 (9th \nCir. Jan. 15, 1997). \n",
"1-43 \n3. Carlson v. United States, CV. No. 94-00924 ACK, 1995 WL 687110, at \n*2 (D. Haw. Sept. 22, 1995) (action filed in 1994 was outside the \nlimitations period when Certificate of Assessments and Payments \ndemonstrated that the administrative levies made against plaintiff \nresulted in payments to IRS in 1989 and 1990). \n4. Clark v. Internal Revenue Service, No. 06-CV-00544, 2011 WL \n3157196, *15-16 (D. Haw. July 26, 2011) (District Court held that it did \nnot have jurisdiction over plaintiff’s section 7431 action upon finding \nthat plaintiff had actual knowledge that the Service issued a refund \ncheck to an incorrect party (and thus made an unauthorized disclosure) \nmore than sixteen years before plaintiff filed her lawsuit alleging the \nunauthorized disclosure of return information. The court concluded \nthat plaintiff’s “knowledge of the improperly issued refund check put her \non inquiry notice of any disclosures prior to the issuance of the refund \ncheck.” Thus, the court did not have jurisdiction over plaintiff’s section \n7431 lawsuit.) \n5. Darby v. Jensen, 75 A.F.T.R.2d 95-2549, at *11-12 (D. Colo. May 15, \n1995) (complaint, filed March 10, 1994, was outside statute of \nlimitations where plaintiff alleged his response to the IRS's letter \nconcerning dispute about 1989 exemptions and tax withholding was \nmailed on March 22, 1991), aff’d, 78 F.3d 597 (table cite), 1996 WL \n84111 (10th Cir. Feb. 27, 1996). \n6. Gandy v. United States, 234 F.3d 281, 283-84 (5th Cir. 2000) (plaintiff \nbecame aware that circular letters were sent to clients in September \n1990, but suit was filed in August 1996; therefore, the section 7431 \nclaim pertaining to those letters was time barred). \n7. Hobbs v. United States, 1997 U.S. Dist. LEXIS 19230, at *18 (S.D. \nTex. Nov. 3, 1997) (plaintiff was aware that disclosures of his returns \nand return information were made as early as 1990 and certainly by \nApril 1994; thus, when suit was brought in November 1996, claims \nwhich accrued prior to November 1994 were time barred). \n8. Pack v. United States, Civil No. 90-1002-LKK-PAN, 1991 U.S. Dist. \nLEXIS 15523, at *3-4 (E.D. Cal. Oct. 11, 1991) (claims time barred \nwhere plaintiff failed to submit any admissible evidence that he \ndiscovered alleged wrongful disclosures within two years of filing of \ncomplaint). \n9. William E. Schrambling Accountancy Corp. v. United States, 689 F. \nSupp. 1001, 1008 (N.D. Cal. 1988) (claims regarding levies issued \nmore than two years before filing of lawsuit barred by the statute of \nlimitations). \n",
"1-44 \nG. Limited Stay of Discovery \nCourts will often issue a limited stay of discovery in section 7431 cases while \nawaiting the outcome of a pending related criminal proceeding. \n1. Diamond v. United States, No. 3:87-cv-80086 (S.D. Iowa Sept. 6, \n1990) (limited stay of discovery in section 7431 case because there \nwas a potential criminal prosecution of the plaintiff pending) \n(subsequent history omitted). \n2. Lancon v. United States, No. 4:92-cv-3499 (S.D. Tex. Feb. 11, 1998) \n(Order Nov. 12, 1993 to \"administratively close” section 7431 action \nuntil conclusion of criminal proceedings involving the IRS employee \nwho made the alleged unauthorized disclosure). \n3. McQueen v. United States, No. 4:91-cv-329 (S.D. Tex. Sept. 29, 1997) \n(June 7, 1991 order granting an unlimited stay of discovery pending \nresolution of related criminal investigation). \nH. Survivability \nCourts are split in determining whether a cause of action under section 7431 \nsurvives death of the plaintiff such that a plaintiff's estate may be substituted for \nthe plaintiff. \n1. Schachter v. United States, 847 F. Supp. 140, 141-42 (N.D. Cal. 1993) \n(rejecting argument that a section 7431 case was in the nature of a \npersonal tort action not intended to survive plaintiff's death, instead \nfinding it a property interest that should survive death and noting that \nthe statute provided for actual damages, an indication that property \nrights were to be taken into account; administrator could be substituted \nas plaintiff). \n2. Shapiro v. Smith, 652 F. Supp. 218, 218-19 (S.D. Ohio 1986) (statute \nwas designed to protect only personal privacy rights and is therefore \ngoverned by the rule that privacy actions do not survive the death of \nthe injured party). \nI. Standing \n1. Brown v. United States, 755 F. Supp. 285, 286-87 (N.D. Cal. 1990) (no \ncause of action for disclosure of a Notice of Levy to plaintiff's employer \nregarding her former husband's liability because it was not plaintiff's \nreturn information, but that of her husband; under section 6103 there \nhad been no wrongful disclosure of her return information). \n",
"1-45 \n2. Haywood v. United States, 642 F. Supp. 188, 192 (D. Kan. 1986) \n(notice sent to taxpayer's employer revealed husband's tax liability, not \nplaintiff's). \n3. Kaiawe v. Dep't of Treasury, Civ. No. 95-00166 HG, 1995 WL 552260, \nat *1 (D. Haw. June 21, 1995) (notwithstanding plaintiff's status as \npresident and sole shareholder of corporate taxpayer, plaintiff lacked \nstanding to assert wrongful disclosure and wrongful collection claims \npursuant to sections 7431 and 7433 on behalf of corporate taxpayer; \nno evidence was presented that plaintiff was taxpayer's alter ego or \nthat he had personally suffered any injury). \n4. Newberry v. United States, No. LR-C-86-13, 1986 WL 9460, at *3 (E.D. \nArk. June 4, 1986) (allegation that IRS received information unlawfully \nresulted in dismissal for failure to state a claim under section 7431 \nbecause action lies only for the improper disclosure of returns or return \ninformation).\n5. Rogers v. United States, No. 94-1305-J(AJB), 1995 WL 775245, at *1 \n(S.D. Cal. Oct. 24, 1995) (government incorrectly assumed that plaintiff \nwas asserting that the return information of a third party was wrongfully \ndisclosed; court read complaint to clearly assert that plaintiff's own \nreturn information was wrongfully disclosed and thus the government’s \nmotion to dismiss for lack of standing was denied). \n6. Ruiz-Rivera v. IRS, 226 F. Supp. 2d 345, 349 (D.P.R. 2002) (only the \ntaxpayer whose return or return information has allegedly been \ndisclosed has standing to sue under section 7431). \n7. Simpson v. United States, No. 91-30293 RV, 1991 WL 330932, at *2-3 \n(N.D. Fla. Nov. 27, 1991) (plaintiff’s allegations that - concerning \ninvestigation of husband - circular letters requesting payment history of \nhusband, his company or payments made to plaintiff, insufficient to \nconfer standing to sue upon plaintiff), aff'd mem., 986 F.2d 507 (table \ncite) (11th Cir. 1993). \n8. Soghomonian v. United States, 82 F. Supp. 2d 1134, 1147 (E.D. Cal. \n1999) (wife of taxpayer complainant does not have standing under \nsection 7431; also, where information disclosed was that of \npartnership, not the plaintiff, and plaintiff was neither a partner nor \nliable for partnership’s taxes; plaintiff does not have standing to sue for \nunauthorized disclosure of return information). \n",
"1-46 \nVI. OTHER CODE SECTIONS AUTHORIZING DISCLOSURE \nSection 6103(a) provides that return information is confidential and may not be \ndisclosed \"except as otherwise provided by\" Title 26. Accordingly, permissible \ndisclosures of returns and return information are not limited to the exceptions to the \ngeneral rule enumerated in section 6103(c)-(o). \nA. Case Law \n1. Messinger v. United States, 769 F. Supp. 935, 938 (D. Md. 1991) \n(under section 3406(c)(1), the IRS is authorized to release return \ninformation to financial institutions to notify them of the necessity to \ndeduct interest and dividends for payees who are underreporting when \ncertain conditions occur; “Title 26 U.S.C. § 3406(c)(1) allows the IRS to \ndisclose the return information in question, provided that it met the \nspecific requirements set forth in the statute”). \n2. O’Donnell v. United States, No. 84-2055-CIV-KEHOE, 1985 WL 1565, \nat *2-3 (S.D. Fla. Mar. 26, 1985) (the IRS did not violate section 6103 \nby disclosing to plaintiff’s employer that plaintiff had filed a defective \ncertificate of exemptions because section “6103(a) prohibits the \ndisclosure of certain tax information except as authorized by this title \nwhich refers to Title 26 U.S.C., the Internal Revenue Code,” and \nsection 3402 requires an employer to withhold taxes from wages in \naccordance with procedures promulgated by the Secretary; inasmuch \nas the procedures provide that the IRS will notify the employer when \nthe certificate is defective, it is evident that the IRS cannot so notify the \nemployer without disclosing the employee’s return information). \n3. Swierkowski v. United States, 620 F. Supp. 149, 151 (E.D. Cal. 1985) \n(section 3402(m)-(n) authorizes the promulgation of regulations relating \nto claims for withholding allowances and for exemptions from \nwithholding; Treas. Reg. § 31.3402(f)(2)-1(g)(5) instructs the IRS to \nfurnish an employer with information such as an employee's status, \nwithholding allowances, etc.), aff'd mem., 800 F.2d 1145 (9th Cir. 1986) \n(table cite). \n4. Van Skiver v. United States, No. 89-1490-C, 1990 WL 11038, at *2 (D. \nKan. Jan. 31, 1990) (subsequent history omitted) (dealing with the \ndisclosure of return information through the filing of proper Notices of \nFederal Tax Lien and issuing of levies authorized under Title 26; as a \nmatter of law, “[b]oth acts are not only permitted but required by the \nstatutes and the Regulations of the Internal Revenue Service when tax \nassessments have been made and unpaid”; thus disclosures to \neffectuate such liens or levies do not violate section 6103). \n",
"1-47 \nB. I.R.C. § 9706(f)(1) \nA mine operator can, within 30 days of receipt of an assignment of a United Mine \nWorkers of America (UMWA) beneficiary, “request from the Commissioner of the \nSocial Security Administration detailed information as to the work history of the \nbeneficiary and the basis of the assignment.” I.R.C. § 9706(f)(1). If section \n9706(f)(1) permits the mine operator to request the wage information of the \nassigned beneficiaries from the SSA, it necessarily implies that the SSA can \ndisclose the wage information to the mine operators. Section 9706 also \ncontains, at subparagraph (g), a provision pertaining to the confidentiality of such \ninformation.\nCONFIDENTIALITY OF INFORMATION — Any person to which \ninformation is provided by the Commissioner of Social Security under this \nsection shall not disclose such information except in any proceedings \nrelated to this section. Any civil or criminal penalty which is applicable to \nan unauthorized disclosure under section 6103 shall apply to any \nunauthorized disclosure under this section. \nReading subsections (g) and (f) of section 9706 in concert suggests that \nCongress had a distinct reason for allowing and limiting the disclosure of \nbeneficiaries’ wage information in order to effectuate the Energy Policy Act of \n1992, amended by Pub. L. No. 103-296, Title I, § 108(h)(9)(B) (1994), 108 Stat. \n1487 and Pub. L. No. 109-432, Div. C, Title II, § 212(a)(3) (2006), 120 Stat. \n3025. \nFor additional provisions of the Code that authorize the disclosure of returns and \nreturn information, see generally Chapters 2 - 12, 14. \n",
"1-48 \nPART III: CRIMINAL LIABILITY FOR WILLFUL \nUNAUTHORIZED INSPECTION AND DISCLOSURE \nI. I.R.C. § 7213 – UNAUTHORIZED DISCLOSURES \nA. Background \nSection 7213(a) provides for felony criminal liability for the willful unauthorized \ndisclosure of returns and return information, punishable by imprisonment of not \nmore than five years, or a fine of not more than $5000, or both, together with \nprosecution costs. In the case of an employee or officer of the United States, \nsection 7213 mandates that the employee or officer be dismissed from office or \ndischarged from employment upon conviction. The statute does not create a \nright of action for a taxpayer against the United States. See Nordbrook v. United \nStates, 96 F. Supp. 2d 944, 948 (D. Ariz. 2000) (district court dismissed plaintiffs’ \nclaims premised on RICO, wire fraud, false statement, unauthorized disclosures, \nand extortion, concluding that these criminal statutes do not apply to the United \nStates). \nAlthough section 7213 expressly provides for a fine of not more than $5,000, 18 \nU.S.C. § 3571(b)(3) authorizes a greater fine if certain factors are present. See \ngenerally UNITED STATES SENTENCING COMMISSION, UNITED STATES SENTENCING \nGUIDELINES MANUAL, § 5E1.2 (2003), and commentary. For purposes of \nsentencing, United States Sentencing Guidelines Manual § 2H3.1 (2009) is \napplied. See UNITED STATES SENTENCING COMMISSION, UNITED STATES \nSENTENCING GUIDELINES MANUAL, APP. A, 18 U.S.C. App. A (2000). 18 U.S.C. \n§ 3571(b)(3) provides for a fine no more than the greater of the amount in the \nCode section or $250,000. \nB. Elements of I.R.C. § 7213 \nTo sustain a conviction under section 7213(a)(1), the United States must prove \nbeyond a reasonable doubt that: (1) an officer or employee of the United States, \nor any person described in section 6103(n), or a former officer or employee; (2) \ndisclosed; (3) returns or return information; (4) in a manner not authorized by the \nInternal Revenue Code; and (5) the disclosure was made willfully. \n1. Persons Covered\na. Section 7213(a)(1) expressly applies to \"any officer or employee \nof the United States or any person described in section 6103(n) \n(or an officer or employee of any such person), or any former \nofficer or employee.\" (emphasis added). \n",
"1-49 \nb. It applies to State officers and employees and anybody else who \nreceives the information under the authority of the Code \nsections listed in section 7213(a)(2). \nc. Section 7213(a)(3) makes it a criminal offense for any person to \nwhom returns or return information is disclosed in a manner \nwhich is not authorized by Title 26 willfully to print or publish in \nany manner not provided by law any such return or return \ninformation. In other words, a party who knowingly receives \nreturns or return information in a manner not permitted by Title \n26 may be subject to criminal sanctions if such party knowingly \nrediscloses, through some media, a return or return information \nin a manner not authorized by Title 26. \n2. Disclosed \na. Although section 7213 does not define \"disclose,\" or any variant \nof that term, section 6103(b)(8) defines \"disclosure\" as \"[t]he \nmaking known to any person in any manner whatever a return or \nreturn information.\" \nb. In cases decided under section 7431, which provides a civil \nremedy for unauthorized disclosures of returns and return \ninformation, there is a split of authority regarding whether \nreturns and return information may be \"disclosed,\" within the \nmeaning of section 6103, when they are already a matter of \npublic record as a result of the IRS's tax administration activities \nor in judicial tax proceedings. \nThe Service adheres to a limited public records exception. For a more \ndetailed discussion of the public record exception to section 6103, see \ngenerally Chapter 2, Part IV. \n3. Return or return information \nSection 7213(a) expressly references section 6103(b) for the definitions of \nreturn and return information. See generally Chapter 2. \n4. Not authorized by the Internal Revenue Code \nFor a disclosure of any return or return information to be authorized by the \nCode, there must be an affirmative authorization because section 6103(a) \notherwise prohibits the disclosure of any return or return information by \nany person covered by section 7213(a)(1). In general, however, section \n6103 is the primary, but not exclusive, provision of Title 26 that authorizes \ndisclosure. Section 6103 contains numerous subsections addressing \n",
"1-50 \nvarious circumstances in which returns and return information may be \ndisclosed. \n5. Willfulness \nSection 7213 was amended in 1978 to require proof that a disclosure was \nmade \"willfully.\" Revenue Act of 1978, Pub. L. No. 95-600 \n§ 701(bb)(6)(A), 92 Stat. 2763 (1978). The Staff of the Joint Committee \non Taxation explained that the term \"willfully\" as used in the amendment \nof section 7213 relates to a \"voluntary, intentional violation of a known \nlegal duty,\" citing United States v. Pomponio, 429 U.S. 10, 12 (1976). \nGeneral Explanation of the Revenue Act of 1978, H.R. 13511, Pub. L. No. \n95-600 (JCS-1-79), at 398 (J. Comm. Print 1979). In Pomponio, the \nSupreme Court explained that the term \"willfully,\" in the context of criminal \nviolations of the Code, does not require a showing of evil motive beyond a \nspecific intent to violate the law, holding the term simply connotes a \nvoluntary, intentional violation of a known legal duty. 429 U.S. at 12. \nC. Statute of Limitations \nThe statute of limitations applicable to offenses under section 7213 is section \n6531, which prohibits prosecution \"unless an indictment is found or the \ninformation instituted within 3 years next after the commission of the offense . . .\" \nThis period is tolled, however, for any period of time that the offender is outside \nthe United States or is a fugitive from justice within the meaning of 18 U.S.C. \n§ 3290. \nD. Cases Under I.R.C. § 7213(a) \n1. United States v. Beretta, No. 5:93-cr-20013 (N.D. Cal. sentenced Mar. \n28, 1994) (indictment of IRS employee for, inter alia, willfully disclosing \ntax return information to a third party; employee subsequently pled \nguilty to this charge). \n2. United States v. Kynard, No. 4:95-cr-00229 (S.D. Tex. sentenced Feb. \n20, 1996) (an IRS computer assistant entered a plea of guilty for the \nunauthorized disclosure of return information in violation of section \n7213, admitting that, at the request of her husband's boss, she used \nthe IRS's Integrated Data Retrieval System (IDRS) to gain \nunauthorized access to return information of the requester’s partner \nand disclosing this information to the requester; employee sentenced to \nfive years probation, a $5,000 fine, and 100 hours of community \nservice). \n",
"1-51 \n3. United States v. Marty, No. CR-F-87-3 (E.D. Cal. June 8, 1987) (IRS \nemployee disclosed return information to assist family members' \nbusiness enterprise and government had recommended probation; in \nsentencing employee to one year in prison for disclosing return \ninformation to assist family members’ business enterprise, court \n\"absolutely amazed\" at government recommendation of probation, \nobserving \"[t]he crime strikes at the very heart of the internal revenue \nsystem\"; if people could not be certain that their return information was \nconfidential, the voluntary system of self assessment would collapse \nand further expressed hope that the \"sentence is widely communicated \nto other\" IRS employees). \n4. United States v. Moore, 47 F.3d 1171 (table cite), No. 94-5342, 1995 \nWL 7969, at *3 (6th Cir. Jan. 9, 1995) (per curiam) (conviction and \nsentence of 19 months in prison and five years probation affirmed for \nIRS tax adjuster who examined taxpayer accounts on IRS computer \nsystems without authorization and later disclosed information he \naccessed in letters; United States was required to prove not only that \nemployee accessed return information on the IRS's computers, but that \nhe also disclosed it). \n5. United States v. Richey, 924 F.2d 857, 863 (9th Cir. 1991) (upheld \nconviction of former IRS employee for willfully disclosing to the press \nthat while he was an IRS employee and before the judge’s appointment \nto the bench, he had audited the judge’s tax returns and found \ndiscrepancies; statements to the press in violation of section 6103 were \nnot protected by the First Amendment). \n6. United States v. Schultz, No. 2:95-cr-277 (E.D. Pa. sentenced \nOct. 6, 1995) (employee entered a guilty plea to one count of \nunauthorized disclosure of information under section 7213(a)(1) for \naccessing IDRS and obtaining third-party return information that she \nforwarded to an attorney who was representing her in a matter \nunrelated to any duties she had as an IRS employee; guilty plea \nmemorandum that United States Attorney submitted to the court stated \nthat government had evidence confirming that the attorney was \nrepresenting the employee without an increased fee in return for the \ntax disclosures that the attorney wanted for pursuing her own affairs). \n7. United States v. Wilson, No. 1:95-cr-350 (N.D. Ohio sentenced \nJan. 16, 1996) (employee pled guilty to one count of unauthorized \ndisclosure of information under section 7213(a)(1) acknowledging that, \nwhile employed as a taxpayer service representative, she accessed \nreturn information from an IRS computer multiple times and disclosed \nsome of the return information to a third party). \n",
"1-52 \nE. Additional Provisions of I.R.C. § 7213 \nEach of the offenses is punishable by the same term of imprisonment and/or fine \napplicable to violations of section 7213(a)(1), together with the costs of \nprosecution. \n1. Section 7213(a)(2) makes it a criminal offense for state employees and \nother persons who acquire returns or return information pursuant to \ncertain selected provisions of section 6103 willfully to disclose those \nreturns and return information, except as authorized by the Code. \n2. Section 7213(a)(3) makes it a criminal offense for any person to whom \nreturns or return information is disclosed in a manner which is not \nauthorized by Title 26 willfully to print or publish in any manner not \nprovided by law any such return or return information. In other words, \na party who knowingly receives information in a manner not permitted \nby Title 26 may be subject to criminal sanctions if such party knowingly \nrediscloses, through some media, a return or return information in a \nmanner not authorized by Title 26. \n3. Section 7213(a)(4) makes it a criminal offense for any person willfully \nto offer any item of material value in exchange for returns or return \ninformation and to receive as a result of such solicitation any such \nreturn or return information. \n4. Section 7213(a)(5) makes it a criminal offense for any person to whom \nreturns or return information is disclosed pursuant to section \n6103(e)(1)(D)(iii) (i.e., a person who is at least a one-percent \nshareholder) to disclose such returns or return information in any \nmanner not provided by law. \nNote: This criminal provision comports with section 6103(a)(3), \nwhich imposes the general disclosure prohibition of section 6103 on \none-percent shareholders, as well as officers and employees of the \nUnited States, among others.\nII. I.R.C. § 7213A – UNAUTHORIZED ACCESSES (UNAX) \nA. Background \n\"Browsing\" is a term used to describe the unauthorized access to, or inspection \nof, returns or return information without regard to whether the \"browser\" further \ndisclosed that information to another person. The IRS also refers to this activity \nas unauthorized access, or UNAX. UNAX typically arises in the context of IRS \nemployees accessing taxpayer accounts on an automated database, such as the \nIntegrated Data Retrieval System (IDRS), without a tax administration purpose. \n",
"1-53 \nSection 7213A(b) provides that a conviction can result in a fine in any amount not \nexceeding $1,000, or imprisonment of not more than a year, or both. In addition, \nconviction results in a dismissal from office or discharge from employment. \nAlthough section 7213A expressly provides for a fine of not more than $1,000, 18 \nU.S.C. § 3571 authorizes a greater fine if certain factors are present. See \ngenerally UNITED STATES SENTENCING COMMISSION, UNITED STATES SENTENCING \nGUIDELINES MANUAL, § 5E1.2 (2003), and commentary. For purposes of \nsentencing, United States Sentencing Guidelines Manual § 2H3.1 (2009) is \napplied. See UNITED STATES SENTENCING COMMISSION, UNITED STATES \nSENTENCING GUIDELINES MANUAL, APP. A, 18 U.S.C. App. A (2000). Section 3571 \nof Title 18 provides for a fine of no more than the greater of the amount in the \nCode section or $100,000. See UNITED STATES SENTENCING COMMISSION, UNITED\nSTATES SENTENCING GUIDELINES MANUAL APP. A, 18 U.S.C. App. A (2000). See \nalso REVENUE RECONCILIATION ACT OF 1997, REPORT OF THE COMMITTEE ON THE \nBUDGET OF THE HOUSE OF REPRESENTATIVE TO ACCOMPANY H.R. 2014, H.R. REP.\nNO. 105-148, at 612 n.16 (Comm. Print 1997) (“Pursuant to 18 U.S.C. sec. 3571 \n(added by the Sentencing Reform Act of 1984), the amount of the fine is not \nmore than the greater of the amount specified in this new Code section or \n$100,000”). \n1. Section 7213A(a)(1) makes it unlawful for any officer or employee of \nthe United States, or any person described in section 6103(l)(18) or (n) \nor officer or employee of such person, to willfully inspect, except as \nauthorized in Title 26, any return or return information. \n2. Section 7213A(a)(2), relating to state and other employees who \nacquired returns or return information under certain provisions of \nsection 6103, makes it \"unlawful for any [such] person willfully to \ninspect such return or return information except as authorized by [Title \n26].\" \nB. Elements of I.R.C. § 7213A \nTo sustain a conviction under section 7213A(a), the United States must prove \nbeyond a reasonable doubt that: (1) an officer or employee of the United States, \nany person described in section 6103(l)(18) or (n), or a state or other employee \ndescribed in section 7213A(a)(2); (2) inspected; (3) any return or return \ninformation; (4) in a manner not authorized by the Internal Revenue Code; and \n(5) such inspection was made willfully. The elements are identical to the \nelements of a section 7213 offense, with the exception that in the place of an \nunauthorized “disclosure,” the prosecution must demonstrate that there was an \nunauthorized “inspection.” \nAlthough section 7213A does not define \"inspect,\" or any variant of that term, it \nspecifically refers to the definitional section at section 6103(b)(7). Section \n",
"1-54 \n6103(b)(7) states that the \"terms 'inspected' and 'inspection' mean any \nexamination of a return or return information.\" The legislative history evidences a \ncongressional intent to prohibit unauthorized inspections: \nThe Committee believes that it is important to have a criminal penalty in \nthe Internal Revenue Code to punish this type of behavior. . . . The \nCongress views any unauthorized inspection of tax returns or return \ninformation as a very serious offense; this new criminal penalty reflects \nthat view. The Congress also believes that unauthorized inspection \nwarrants very serious personnel sanctions against IRS employees who \nengage in unauthorized inspection, and that it is appropriate to fire \nemployees who do this. \nREVENUE RECONCILIATION ACT OF 1997, H.R. REP. NO. 105-148, reprinted in\nReport of the Committee on the Budget House of Representatives to Accompany \nH.R. 2014, 105th Cong., 611-12 (1997). The statute specifically provides that \nthe element of willfulness must be met, as it must be for section 7213 violations. \nThis is intended to exempt inspections resulting from inadvertent or mistaken \naccesses. \nIII. 18 U.S.C. § 1030(a)(2)(B) – UNAUTHORIZED COMPUTER ACCESSES \nA. Statutory Provisions \nThe Economic Espionage Act of 1996, Pub. L. No. 104-294, 110 Stat. 3488, \namended 18 U.S.C. § 1030(a)(2) to penalize whoever “intentionally accesses a \ncomputer without authorization or exceeds authorized access, and thereby \nobtains . . . (B) information from any department or agency of the United \nStates . . . . ” \nThe elements of the offense which the United States has to demonstrate, beyond \na reasonable doubt, are that an individual (1) intentionally; (2) accesses a \ncomputer; (3) without authorization or exceeding authorization; and (4) obtains \ninformation from any department or agency of the United States. The statute of \nlimitations applicable to an offense under 18 U.S.C. § 1030 expires five years \nafter the date of the alleged offense. 18 U.S.C. § 3282. This statute places no \nlimitation on the status of the individual making the unauthorized access, i.e., it is \nnot limited to United States employees. \nB. Punishment \n18 U.S.C. § 1030(c) has an elaborate punishment provision, depending upon \nwhether the conviction is a first offense, and whether there is commercial or \nfinancial gain. For purposes of sentencing, United States Sentencing Guidelines \nManual § 2B1.1 (2010) is applied. See UNITED STATES SENTENCING COMMISSION,\n",
"1-55 \nUNITED STATES SENTENCING GUIDELINES MANUAL, APP. A, 18 U.S.C. App. A \n(2000). \nNote: Section 7213 applies to unauthorized disclosures by former \nemployees, whereas section 7213A does not apply to former employees. \n18 U.S.C. § 1030(a)(2)(B) applies only to the unauthorized access to \ngovernment information stored on computers; it does not address \nunauthorized access to information stored on other media, e.g., paper \nfiles. On the other hand, section 7213A applies to all unauthorized \ninspections of returns and return information, regardless of storage \nmedium. \n",
" \n2-1\nCHAPTER 2 \nPART I: DEFINITIONS \nI. I.R.C. § 6103(b) – DEFINITIONS \nA. \"Return\" – I.R.C. § 6103(b)(1) \n1. Tax or information returns (e.g., Forms 1040, 1120, 941, 1099), estimated tax \ndeclarations, or refund claims, and any amendments or supplements, \nincluding supporting schedules (e.g., Schedules A and B for 1040, Schedule \nK-1), attachments, or lists which are supplemental to, or part of, the return; \n2. That are required by, provided for, or authorized by Title 26; and \n3. That are filed with the Secretary by, on behalf of, or with respect to, any \nperson. \na. \"Secretary\" means Secretary of the Treasury or his delegate. I.R.C. \n§ 7701(a)(11)(B). Thus, “Secretary” includes any officer or employee \nof the Department of the Treasury authorized to perform the acts \nreferred to in each provision of the Code. \nb. Forms W-2 and W-3 filed with the Social Security Administration \npursuant to the Combined Annual Wage Reporting program in \naccordance with sections 6041, 6051, and 6103(l)(5), are “returns” \nwithin the meaning of section 6103(b). Judicial Watch, Inc. v. SSA, 799 \nF. Supp. 2d 91, 96, 97 (D.D.C. 2011) (FOIA request for a listing of \nemployers sent the most “no-match” letters (based upon the Forms W-\n2 filed by the employers) denied because the listing, like the letters, are \nthe return information of the employers that file the Forms W-2); Davis, \nCrowell & Bowe, LLP v. SSA, 2002 WL 1034085 (N.D. Cal. May 16, \n2002) (FOIA request sought mismatch information related to W-2 filings \nby certain employers), vacated, 281 F. Supp. 2d 1154 (N.D. Cal. 2003) \n(joint motion to vacate due to settlement granted.); \nc. Copies of returns retained by the taxpayer are not protected by section \n6103. See, e.g., Stokwitz v. Dep’t of Navy, 831 F.2d 893, 894-96 (9th \nCir. 1987) (civilian's personal copies of his tax returns, retained in his \noffice and taken by Navy agents during an investigation, were not \nreturn information), cert. denied, 485 U.S. 1033 (1988); Memorandum \nOpinion for the General Counsel, Federal Mine Safety and Health \nReview Commission, 3 Op. O.L.C. 201, 201 (1979); S. REP. NO. 94-\n938, at 330, 1976-3 C.B. 369 (1976) (\"By this amendment [creating \n6103(h)], the Committee does not [intend] to limit the right of an agency \n(or other party) to obtain returns and return information directly from the \n",
" \n2-2\ntaxpayer through the applicable discovery procedures.\"); Hrubec v. \nNat’l R.R. Passenger Corp., No. 91 C 4447, 1994 WL 27882, at *2-3, \nn.4 (N.D. Ill. Jan. 31, 1994) (section 6103 “was not intended to curtail \nthe behavior of people without legitimate access to tax information, but \nto ensure that the IRS and other government agencies behave \nresponsibly in disseminating tax data,” and should not be construed as \na general prohibition against the release of tax information by any \nparty), aff'd, 49 F.3d 1269 (7th Cir. 1995). \nd. \"Fifth Amendment\" returns with jurat crossed out, left blank except for \nFifth Amendment plea, or those not containing sufficient financial \ninformation from which a tax liability could be calculated, are not\n\"returns.\" I.R.C. § 7203. \nB. \"Return Information\" – I.R.C. § 6103(b)(2) \n1. Taxpayer's identity (name of person with respect to whom a return is \nfiled, the person’s mailing address, and taxpayer identifying number \n(e.g., SSN, EIN, ATIN, or ITIN), or a combination thereof). I.R.C. \n§ 6103(b)(6) and (b)(9); or \n2. The nature, source, or amount of income, payments, receipts, \ndeductions, exemptions, credits, assets, liabilities, net worth, tax \nliability, tax withheld, deficiencies, overassessments, tax payments; or \n3. Whether the return was, is being, or will be examined or subject to \nother investigation or processing; or \n4. Any part of any written determination or background file document \nwhich is not open to public inspection under section 6110; or \n5. Any advance pricing agreement entered into by a taxpayer and the \nSecretary and any background information related to such agreement \nor any application for an advance pricing agreement; or \n6. Any closing agreement under section 7121, and any similar agreement, \nand background information related to the agreement or request for \nagreement; or \n7. Any other data; and \n8. Which is received by, recorded by, prepared by, furnished to, or \ncollected by the IRS; and \n9. With respect to a return or with respect to the determination of the \nexistence or possible existence of liability or the amount of liability; \n10. Of any \"person,\" see section 7701(a)(1); \n",
" \n2-3\n11. Under Title 26; \n12. For any tax, penalty, interest, fine, forfeiture, or other imposition or \noffense. \nThe term “return information” is broad and includes any information gathered by \nthe IRS with regard to a taxpayer's liability under the Code. See McQueen v. \nUnited States, 264 F. Supp. 2d 502, 516 (S.D. Tex. 2003), aff’d, 100 F. App’x \n964 (5th Cir. 2004); LaRouche v. Dep’t of Treasury, 112 F. Supp. 2d 48, 54 \n(D.D.C. 2000) (\"return information is defined broadly\"); Hull et al v. IRS, 656 F.3d \n1174, 1195-96 (10th Cir. 2011) (Data created or compiled by the IRS while \ndetermining an employee benefit plan’s compliance is return information). \nDespite the breadth of the statutory definition, some courts rejected the IRS’s \nposition that certain matter constituted return information. The D.C. Circuit \nrejected the IRS’s position in a FOIA case that field service advice memoranda, \nwhich were written generally to provide advice to field examiners during the \naudits they were conducting of taxpayers, constitute return information in their \nentirety, ruling that the national office subject matter experts’ legal analyses \ncontained in the memoranda was not “data” within the meaning of “return \ninformation” found in section 6103(b)(2)(A). Tax Analysts v. IRS, 117 F.3d 607, \n611-16 (D.C. Cir. 1997). In Kamman v. IRS, 56 F.3d 46, 49 (9th Cir. 1995), rev’g \n1993 WL 522891 (D. Ariz. July 7, 1993), the 9th Circuit found that the affidavits \nintroduced by the government in support of its motion for summary judgment in a \nFOIA case failed to demonstrate how property appraisals obtained by revenue \nofficers during their efforts to collect on a taxpayer’s (already established) tax \nliability fit within the definition of return information. \nSection 521, Title V, of the Ticket to Work and Work Incentives Improvement Act \nof 1999, Pub. L. No. 106-170, 113 Stat. 1860, 1925-27 (effective December 17, \n1999), amended section 6103 to expressly provide that advance pricing \nagreements (APAs) and related background information are confidential return \ninformation. Related background information includes: the request for an APA, \nany material submitted in support of the request, and any communication (written \nor otherwise) prepared or received by the IRS in connection with an APA, \nregardless of when the communication is prepared or received. Protection is not \nlimited to agreements actually executed; it includes material received and \ngenerated in the APA process that does not result in an executed agreement. \nSee 149 CON. REC. S10297-02 *10330 (July 30, 2003). \nSection 304(a) of the Consolidated Appropriations Act of 2001, Pub. L. No. 106-\n554, 114 Stat. 2763, 2763A-632-33 (effective December 21, 2000), amended \nsection 6103(b)(2) to explicitly provide that closing agreements under section \n7121, similar agreements, and background information concerning them, are \nconfidential return information under section 6103(b)(2)(D). \n",
" \n2-4\nInformation concerning Title 26 violations that are not connected to assessment \nor collection of taxes (e.g., sections 7213, 7214) is \"return information\" of the \nperson(s) being investigated. See, e.g., O'Connor v. IRS, 698 F. Supp. 204, 206 \n(D. Nev. 1988) (a threat against an IRS employee is a violation of section 7212 \nand information collected with respect to that offense is return information), aff’d \nmem., 935 F.2d 275 (9th Cir. 1991); Conn v. United States, No. C-91-2192JW \n(PVT), 1991 WL 333707, at *1, 92-1 U.S.T.C. 50,123 (N.D. Cal. Dec. 10, 1991) \n(investigation report prepared by Inspection concerning conduct of IRS employee \naccused of making unauthorized disclosure is return information of the accused \nemployee). \nThough protest \"Fifth Amendment\" returns with crossed-out jurats are not \n“returns,” as noted above, they are \"return information.\" \nThe courts are split with respect to whether information that the Department of \nJustice (DOJ) generates or obtains after the IRS’s referral of the tax case is \n“return information.” United States v. Bacheler, 611 F.2d 443, 449 (3d Cir. 1979) \ndetermined that this is return information because DOJ acted as the Secretary’s \nattorney. By contrast, the court in Ryan v. United States, 74 F.3d 1161, 1163 \n(11th Cir. 1996), ruled that the statutory definition of return information confines it \nto information that has passed through the IRS, and therefore a prosecutor's \nmemorandum distilled from statements of trial witnesses in a criminal tax case \nwere not return information. See also Baskin v. United States, 135 F.3d 338, \n342-43 (5th Cir. 1998) (IRS special agent's possession of data collected by a \ngrand jury investigating nontax crimes did not transform the data into return \ninformation, thus transfer of the data to Houston police officers was not \nprohibited by section 6103). \nStatistical compilations or other amalgamations that do not directly or indirectly \nidentify a particular taxpayer are excluded from coverage by the plain language \nof the statute. I.R.C. § 6103(b)(2) (flush language, commonly referred to as the \nHaskell amendment). \nReturn information from which identifiers (e.g., name, taxpayer identification \nnumber, zip code) have been deleted is still subject to the disclosure restrictions \nof section 6103. The statute is more than an identity test. See Church of\nScientology of Cal. v. IRS, 484 U.S. 9, 14-18 (1987); Long v. IRS, No. 08-35672, \n2010 WL 3677445 at *2-3 (9th Cir. Sept. 16, 2010) (confidential return \ninformation “maintains that status when it appears unaltered in a tabulation with \nonly identifying information removed,” citing Long v. IRS, 891 F.2d 222, 223 (9th \nCir. 1989) (even after deletion of taxpayer identifying information, TCMP check \nsheets containing reported and corrected return line item data were return \ninformation, and were not a reformulated database eligible for disclosure under \nthe Haskell amendment)); Judicial Watch, Inc., 799 F. Supp. 2d at 96-97 (list of \nemployers sent “no-match” letters identifies particular employer taxpayers and \ntherefore is not a statistical compilation). \n",
" \n2-5\nC. \"Taxpayer Return Information\" – I.R.C. § 6103(b)(3) \nTaxpayer return information is return information filed with or furnished to the IRS \nby or on behalf of the taxpayer to whom the information relates. Information filed \non the taxpayer's behalf by the taxpayer's representative (e.g., attorney or \naccountant), either voluntarily or pursuant to summons, is taxpayer return \ninformation.\n1. An item taken directly from a return is taxpayer return information. \n2. The distinction between “return information” and “taxpayer return \ninformation” is significant only in the context of disclosures for nontax \nfederal criminal matters under section 6103(i). See generally\nChapter 5. \nD. \"Tax Administration\" – I.R.C. § 6103(b)(4) \n1. Administration, management, conduct, direction, and supervision; \n2. Of the execution and application of the internal revenue laws and \nrelated statutes (or equivalent laws of a state); \n3. And tax conventions to which the United States is a party; and \n4. The development and formulation of federal tax policy relating to \nexisting internal revenue laws, related statutes, and tax conventions; \n5. Including assessment, collection, enforcement, litigation, publication, \nand statistical gathering; \n6. Under the internal revenue laws, related statutes, and conventions. \n \n \nThe meaning of “tax administration” is sweeping. See, e.g., First W. Gov’t Sec., \nInc. v. United States, 796 F.2d 356, 360 (10th Cir.1986) (the term “tax \nadministration” should be interpreted broadly). Nonetheless, not every act \nperformed by IRS officers and employees is a tax administration function. For \nexample, as an employer, the IRS routinely addresses employment and \npersonnel related issues. Whether an employment or personnel issue falls within \nthe category of a “tax administration” matter depends on the nexus between the \npersonnel matter at hand and the employee’s ability to support and further the \nintegrity of the tax laws. Although the relationship between an IRS employee’s \npersonal compliance with the tax laws and the integrity of the tax system, even \nfrom a purely personnel perspective, is likely to be considered a tax \nadministration matter, an IRS employee’s compliance with nontax laws that may \naffect his or her personnel status does not necessarily rise to the level of a “tax \nadministration” matter simply because the employer investigating the possible \nnoncompliance is the IRS. Compare Sanders v. State, 469 A.2d 476, 485 (Md. \n",
" \n2-6\nApp. 1984) (prosecution for planned murder of revenue agent pertained to tax \nadministration and defendant's returns and return information were lawfully \ndisclosed in the prosecution) with United States v. Sumpter, 133 F.R.D. 580, 584 \nn.3 (D. Neb. 1990) (in case with insufficient factual record, court found no \nindication that prosecution under 18 U.S.C. § 876 for mailing threatening letters \nto IRS agent would cause case to be characterized as tax administration; court \nwould have granted evidentiary hearing to develop the facts, but deemed it \nunnecessary because the relief sought by defendant, suppression of the \nevidence, is unavailable for a violation of section 6103). \nA state tax authority is authorized, by the tax administration exemption of section \n6103(d), to disclose return information in the context of conducting an inquiry \ndesigned to ensure the integrity of the state tax system. Rueckert v. IRS, 775 \nF.2d 208, 212 (7th Cir. 1985) (relevant, specific information disclosed in the \ncontext of investigating a state tax agency employee’s outside employment \nserved to ensure the integrity of the state’s system of administering its tax laws, \nand was authorized under section 6103). \nThe use of an IRS employee's returns for handwriting exemplars as evidence \nthat he prepared and filed false and fictitious returns in others' names was for a \ntax administration purpose. United States v. Mangan, 575 F.2d 32, 40 (2d Cir. \n1978), cert. denied, 439 U.S. 931 (1978). \nTax administration includes enforcement and litigation functions under the \ninternal revenue laws, including summons enforcement proceedings. See, e.g., \nLebaron v. United States, 794 F. Supp. 947, 950 (C.D. Cal. 1992) (tax \nadministration includes IRS disclosures of returns and return information to a \nmagistrate during a proceeding to enforce an IRS administrative summons \nissued to a third party). \nA pro hac vice hearing for an attorney who sought to represent a taxpayer in a \ncriminal tax prosecution was not a matter pertaining to tax administration for \npurposes of section 6103. McLarty v. United States, 741 F. Supp. 751, 755-56 \n(D. Minn. 1990), reconsideration granted 784 F. Supp. 1401 (D. Minn. 1991) \n(defense motion for summary judgment on good faith defense denied). \nA proceeding involving the efforts of a confidential informant to recover reward \nmoney from the IRS for providing information leading to the collection of a \ntaxpayer’s unpaid taxes is a matter pertaining to tax administration under section \n6103(b)(4). Confidential Informant 92-95-932X v. United States, 45 Fed. Cl. 556, \n559 (2000). \n",
" \n2-7\nE. \"Disclosure\" – I.R.C. § 6103(b)(8) \n \nThe term “disclosure” means: \n1. The making known \n2. to any person \n3. in any manner whatever \n4. a return or return information. \nThere is no \"making known\" of return information if the recipient already has \nknowledge of the information. See Brown v. United States, 755 F. Supp. 285, \n287 (N.D. Cal. 1990); Haywood v. United States, 642 F. Supp. 188, 190-91 \n(D. Kan. 1986) (disclosure of taxpayer's name and taxpayer identification number \nwas tangential consequence of levy and was not material because employer \nalready knew that information). \nIf otherwise confidential return information has become a matter of public record \nin a judicial or administrative proceeding pertaining to tax administration, \ntaxpayers no longer have a legitimate claim of privacy in the information and the \ninformation is no longer afforded the protection of section 6103. See generally\nChapter 2, Part IV. \nF. \"Terrorist Incident, Threat, or Activity\" – I.R.C. § 6103(b)(11) \nThe Victims of Terrorism Tax Relief Act of 2001, P.L. No. 107-134, 115 Stat. \n2427 (2002) amended section 6103 in several places to specify authorized \ndisclosures to aid in combating terrorism. Section 6103(b)(11) was added to \ndefine a terrorist incident, threat, or activity to mean an incident, threat or activity \ninvolving an act of domestic terrorism as defined in 18 U.S.C. § 2331(5) or \ninternational terrorism as defined in 18 U.S.C. § 2331(1). \nII. I.R.C. § 6103 – WHOSE INFORMATION IS PROTECTED\nA. Section 6103 of the Code Permits Disclosure Only as Authorized By \nTitle 26. \nBefore the Tax Reform Act of 1976, disclosures were permitted to the extent \n\"authorized by law.” \nB. Deciding Whose Return/Return Information Is At Issue \n1. The source of a tax return or return information is not always controlling. \nThe same item of information may be the return information of more than \none taxpayer, i.e., data supplied to the IRS by Taxpayer A that may \naffect Taxpayer B's tax return may be the return information of Taxpayer \nA alone, of Taxpayers A and B, of Taxpayer B alone, or of neither \n",
" \n2-8\nTaxpayer A nor B. For example, information contained on a Form 1099 \nmay pertain to both the payor’s tax liability and the payee’s tax liability. \nSee Tanoue v. IRS, 904 F. Supp. 1161, 1166 (D. Hawaii 1995) \n(information collected from FOIA requester during tax investigation of \nthird party was the third party’s return information). \n2. Although information supplied by one taxpayer with respect to his or \nher own tax liability often affects the liability of another taxpayer, \nsection 6103 does not automatically authorize disclosure to that second \ntaxpayer merely because of its possible effect. Compare Martin v. IRS,\n857 F.2d 722, 725-26 (10th Cir. 1988) (following audit of partnership \nand adjustment of co-partners’ individual returns, protest filed by each \npartner was return information of filing partner, protected by section \n6103; one partner was not entitled to disclosure under FOIA of protests \nfiled by other partners) with Solargistic Corp. v. United States, 921 F.2d \n729, 731 (7th Cir. 1991) (the fact of an audit of a shelter promoter was \nboth promoter’s and investors’ return information; IRS disclosure of \ninformation relating to a tax shelter promoted by a corporate taxpayer \nin letters sent to the corporate taxpayer's customers/investors did not \nconstitute an unlawful disclosure of return information). See also Mid-\nSouth Music Corp. v. IRS, 818 F.2d 536, 539 (6th Cir. 1987) (audit of \nshelter is also return information of investors); First W. Gov’t Sec., Inc. \nv. IRS, 796 F.2d 356, 359-60 (10th Cir. 1986) (information in revenue \nagent report was collected during audit of investors and was investors’ \nreturn information); Haywood v. United States, 642 F. Supp. 188, 192 \n(D. Kan. 1986) (disclosure of husband’s return information to wife’s \nemployer was not a disclosure of the wife’s return information). \n3. \"Basket Analogy\" of Martin:\nSuppose the IRS has a basket for each taxpayer and corporate \nentity. When the IRS makes a determination about an entity's \nreturn, the report is placed in the entity's basket. Under the \nauthority of section 6103(e), it is also placed in the baskets of the \nentity's partners/shareholders. Individual reactions [i.e., protests] to \nthe report are placed only in the basket of that taxpayer. If the IRS \nthen reacts to the protests and [makes adjustments to] the entity's \nreturn, that information is again placed both in the entity's basket \nand in those of its partners/shareholders. \nMartin, 857 F.2d at 725. \n4. In determining whose return information it is, the key factor is not \nwhose tax liability may be affected by the data, but rather, whose tax \nliability is under investigation by the IRS when the information is \nobtained or generated by the IRS. Id.\n",
" \n2-9\nPART II: DISCLOSURES TO PERSONS WITH A MATERIAL INTEREST \nI.R.C. § 6103(e) \nI. I.R.C. § 6103(e) – DISCLOSURES UPON WRITTEN REQUEST \nA. I.R.C. § 6103(e)(1)(A) \nIndividual returns are available to: \n1. The individual who filed the return. \nExample: Mr. and Mrs. Boggs filed separate returns for 1995. Mrs. \nBoggs submitted a written request for Mr. Boggs' 1995 return. Mrs. \nBoggs is authorized to receive only her own 1995 return; not her \nhusband’s. \n2. The child of the individual to the extent necessary to comply with \nsection 1(g) (and for tax years beginning before December 31, 1997, \nbut not thereafter, section 59(j)). \nExample: Carl Yaz, 13 year old son of the Yazs, files his own \nseparate return. To determine his applicable tax rate for his 1990 \ntax return pursuant to section 1(g), Carl submits a written request \nfor a copy of the Yazs' 1990 joint tax return. Carl is entitled to a \ncopy of his parents’ 1990 joint return only \"to the extent necessary\" \nto comply with section 1(g); normally the entire return would not be \navailable to Carl because normally the entire return would not be \n\"necessary\" for Carl's purposes. \nB. I.R.C. § 6103(e)(1)(B) \nJoint returns are available to either spouse on whose behalf the joint return was \nfiled. \nExample: Ted and Alice filed a joint return for 1996. They divorced and \nfiled separate returns for 1997. In 1998, Alice submits a written request \nfor a copy of the 1996 joint return and Ted's 1997 return. Because a joint \nreturn was filed in 1996, Alice is authorized to receive a copy of that \nreturn. She may not, however, receive a copy of Ted's 1997 return. \nNote: The IRS may not disclose to Alice whether Ted filed a return for \n1997 or any information from or about such a return. \n",
" \n2-10\nC. I.R.C. § 6103(e)(1)(C) \nPartnership returns are available to any person who was a member of the \npartnership during any part of the period covered by the return. \nExample: Partner A was a member of the ABC partnership from March \n16, 1990, through May 16, 1990. Partner A submits a written request for a \ncopy of the ABC's partnership return for 1990. Because A was a partner \nof the ABC partnership for a part of the period covered by the return, A is \nauthorized to receive a copy of the return. \nExample: The ABC partnership utilizes a fiscal year beginning July 1, \n1996, and ending June 30, 1997 (“the 1996 return”). B became a partner \non October 30, 1997, and submits a written request for a copy of ABC's \n1996 return. Because B was not a member of the ABC partnership for \nany part of the period covered by the 1996 return, B is not authorized to \nreceive a copy. \nNote: The partnership return includes Schedules K-1, but see section \n6103(e)(10) and section K, below. \nD. I.R.C. § 6103(e)(1)(D) \nCorporation and corporate subsidiary returns are available to: \n1. Any person designated by resolution of the corporation's board of \ndirectors.\n2. Any corporate officer or employee if a written request has been \nsubmitted by a principal officer and attested to by any other corporate \nofficer. \n3. Any corporate officer authorized by the corporation in accordance with \napplicable state law to legally bind the corporation. \n4. A bona fide shareholder of record owning at least one percent of the \noutstanding corporate stock: \na. Must be a current one percent shareholder. \nExample: As of March 16, 1997, shareholder A owned 10% of \nthe outstanding stock of Bosox, Inc. Shareholder A sold his \nstock to shareholder B on October 30, 1997. Shareholder A \nsubmitted a request for a copy of Bosox Inc.'s 1997 tax return \non November 1, 1997. Because shareholder A was not a \nshareholder of record on the date of his request, he is not \nauthorized to receive a copy of the corporate return. \n",
" \n2-11\nA former shareholder of an existing company could not \ncompel the IRS to produce technical advice memoranda \nrelating to the company for use in a pending securities fraud \ncase. Shareholder inspection privileges extend only to bona \nfide shareholders at the time when inspection is sought; \nformer shareholders are denied this right. See, e.g., Kirk v. \nFirst Nat’l Bank of Columbus, Civ. A. No. 76-533A, 1976 WL \n1111, at *2 (N.D. Ga. Aug. 27, 1976). Pursuant to section \n6110, however, these documents may be otherwise \nobtainable in redacted form. At the time of the Kirk decision, \nsection 6110 did not exist. \nb. The requestor must be a shareholder of record and must have \nboth equitable and legal ownership. \nExample: Ten percent of the stock of the Rocketman \nCorporation is held in the street name of the Helpless \nBrokerage House. Because Helpless' customers are the \nequitable, but not legal, owners of the shares, Helpless is not \nauthorized to access Rocketman's tax return. \nc. Section 6103(a) restricts a 1% shareholder from making further \ndisclosures of the corporate return; further disclosure could \nsubject the 1% shareholder to criminal penalties under section \n7213(a)(5), and to a civil damages action under section 7431. \nSee IRM 11.3.2. \n5. Any member of a consolidated return group is authorized to receive a \ncopy of the entire consolidated return for any period in which it was a \nmember. See Yorkshire v. IRS, 26 F.3d 942, 945-46 (9th Cir. 1994). \n6. Any shareholder of a Subchapter S corporation who was a shareholder \nduring any part of the period covered by the return. \n7. Any person authorized by state law to act on behalf of a dissolved \ncorporation or any person who has been determined by the Secretary \nto have a material interest which will be affected by information \ncontained in the dissolved corporation's tax return. See, e.g., \nMcAdams v. United States, 1996 WL 303271, at *3-4 (W.D. La. June \n24, 1996) (a 50% shareholder of a dissolved corporation had a material \ninterest in the return information of taxpayer-corporation). \nE. I.R.C. § 6103(e)(1)(E), (3) \nEstate returns and decedent’s returns are available to: \n1. The administrator, executor, or trustee of the estate. \n",
" \n2-12\n2. Any heir at law, next of kin, beneficiary under the will or donee of the \ndecedent's property, but only if the person has a material interest which \nwill be affected by information contained in the return. The Secretary \ndetermines whether such material interest exists. State law should be \nconsulted when determining who is an heir at law. \nExample: Notwithstanding the illegitimate status of a taxpayer, \nbecause state law recognized his status as an heir, he was found to \nhave a material interest in decedent’s return information. Williams \nv. Commissioner, 523 F. Supp. 89, 91 (E.D. Mo. 1981). \nNote: Rev. Rul. 2004-68, 2004-31 I.R.B. 118, held the income tax \nreturn of an intestate decedent for the calendar year prior to \ndecedent’s death shall be open to inspection by or disclosure to \nany heir at law or next of kin who is a distributee, under applicable \nstate law, of the probate estate of the decedent, and the existence \nof a material interest of such a person that is affected by \ninformation contained in that return will be presumed. \nF. I.R.C. § 6103(e)(1)(F) \nTrust returns are available to: \n1. Any trustee. \n2. Any beneficiary if the Secretary has determined that the beneficiary \nhas a material interest which will be affected by information contained \nin the return. \nNote: Be aware of the interplay between sections 6103(e) and \n6104 when dealing with beneficiaries of a pension plan. The IRS \nposition set forth in Nichols v. Bd. of Tr., 725 F. Supp. 568, 572 \n(D.D.C. 1989), is that access to return information of a pension plan \nis governed solely by section 6104. By contrast, the court in \nDuncan v. N. Alaska Carpenters Ret. Fund, No. MS90-273, 1991 \nWL 165052, at *2-4 (W.D. Wash. Jan. 10, 1991), ruled that access \nis governed by section 6103(e)(1)(F), and did not reach the issue of \naccess under section 6104. \nG. I.R.C. § 6103(e)(2) \nReturns of incompetent taxpayers are available to the committee, trustee, or \nguardian of an incompetent taxpayer's estate. \n",
" \n2-13\nWhether a person is the committee, trustee, or guardian of an incompetent is a \nmatter of state law. Some states’ laws include provisions granting guardianship \nof minors’ estates to parents or to other specified persons. A person asserting to \nbe the committee, trustee, or guardian of the estate of an incompetent must \nprovide documentation demonstrating this status and the extent of the authority. \nWith respect to minors, other provisions of the Code authorize disclosure of the \nminor’s tax information to parents or other specific persons under certain \ncircumstances. \n1. If the minor’s return reflects earned income, the minor’s tax information \nmay be disclosed to the minor’s parents. Pursuant to section 6201(c), \nan unpaid assessment against a minor is also considered to be an \nunpaid assessment against the parent, to the extent it is based on \ncompensation for the minor’s services. If the return reflects earned \nincome of the minor, the return may be disclosed to the parent \npursuant to section 6103(e)(1)(A)(i) and the return information \npertaining thereto may be disclose to the parent pursuant to section \n6103(e)(7). IRM 11.3.2.4.10(3) \n2. Disclosures may be made to the parent who signed the return on \nbehalf of the child. Rev. Rul. 82-206, 1982-2 C.B. 356, advises that, if \nthe minor cannot make and file his own tax return, the parent should do \nso on behalf of the minor by the use of the following language: “By \n(signature) Parent (or guardian) for minor child.” The revenue ruling is \nderived from section 6012 and the regulations promulgated thereunder. \nTreas. Reg. § 1.6012-1(a)(4) requires the guardian or other person \ncharged with the care of the minor’s person or property to make and file \nthe return on behalf of the minor if the minor did not make and file the \nreturn. Inherent in this section is the authority to discuss the return and \nresulting tax liability, including any necessary collection activities, with \nthe parent who signed the return. IRM 11.3.2.4.10(2). \n3. If the minor signed the return, the minor is the taxpayer, and the minor \nmay consent to disclosure of his own return and return information by \nexecuting a Form 8821, Tax Information Authorization, or other consent \nmeeting the requirements of section 6103(c) and Treas. Reg. \n§ 301.6103(c)-1. If a parent signed the return on behalf of the minor, \nthe signing parent may execute a Form 8821 on behalf of the minor to \ndesignate disclosure to others (such as the non-signing parent or an \naccountant). If the parent is the guardian of the minor’s estate under \nstate law, the parent may also sign a consent on behalf of the minor. \nSee Treas. Reg. § 301.6103(c)-1(e)(4) (authority to execute disclosure \nconsents). Similarly the minor or the parent who signed the minor’s \nreturn can execute a Form 2848, Power of Attorney and Declaration of \n",
" \n2-14\nRepresentative, to have a third party represent the minor before the \nService. \nNote: The Conference and Practice Requirements, Treas. Reg. \n§ 601.501 – 601.509, do not address whether the IRS may \nrecognize a Form 2848 executed by a minor. A prudent approach \nwould be to look to state law to see whether a minor is capable of \nentering into an agency relationship. If so, then the IRS should \nrecognize a power of attorney signed by a minor. \nThere is no disclosure authority for the parent who did not sign the \nminor’s return that reflects only unearned income to execute a Form \n8821 or Form 2848 on behalf of the minor. If, however, under state law \nthe parent is the legal guardian of the minor’s estate or if the parent has \nbeen appointed (by the appropriate court) the guardian of the minor’s \nestate, that parent may execute a Form 8821 on behalf of the minor \nirrespective of who signed the minor’s return. In those states in which \nthe parent is not the guardian of the minor’s estate, the parent who did \nnot sign the minor’s return which reflects only unearned income may \nnot execute a Form 8821 on behalf of the minor. \nH. I.R.C. § 6103(e)(4), (5) – Returns of a Debtor in a Bankruptcy Case \nSee generally materials in Chapter 6, Disclosure of Returns and Return \nInformation in Bankruptcy Cases. \nI. I.R.C. § 6103(e)(6) – Attorney-in-fact \n1. Upon written request, a duly authorized attorney-in-fact may inspect \nthe return of any person described in section 6103(e) if the attorney-in-\nfact is authorized in writing by the person(s) to inspect the return. \nException: A taxpayer who is an authorized recipient under section \n6103(e)(1)(D)(iii) (a one percent corporate shareholder), however, \nmay not authorize disclosure to his attorney-in-fact, pursuant to the \nlimitations in section 6103(a)(3). See also IRM 11.3.2.5.1(9). \n2. A general power of attorney authorizing an individual to do all acts and \nreceive all information on behalf of an individual would not authorize \naccess to the individual's return because the tax year is not specified. \nSee I.R.C. § 6103(c); Treas. Reg. § 301.6103(c)-1(b)(1)(iv); IRS Form \n2848, Power of Attorney and Declaration of Representative. \n3. In the context of a Tax Court proceeding, however, a power of attorney \nor tax information authorization is not required for disclosures to the \nPetitioner’s attorney of record. See Treas. Reg. § 601.509. \n",
" \n2-15\n4. In a bankruptcy proceeding involving the tax liabilities of a debtor-\ntaxpayer, the IRS may disclose to the debtor-taxpayer’s attorney of \nrecord the debtor-taxpayer’s return information relevant to the \nresolution of those tax matters affected by the proceeding. See IRM \n11.3.3.1.6(4) and Chapter 6. \nJ. I.R.C. § 6103(e)(8), (9) – Collection Activities with Respect to a Joint \nReturn and Certain Information Where More Than One Person Subject to \nPenalty Under I.R.C. § 6672 \nThe Taxpayer Bill of Rights 2 (TBOR2), Pub. L. No. 104-168, 110 Stat. 1452, \n1459-60 and 1466 (1996), amended section 6103(e) by adding new paragraphs \n(8) and (9). \n1. Section 6103(e)(8), Disclosure of Collection Activities with Respect to \nJoint Return, requires that if a deficiency is assessed with respect to a \njoint return and the individuals who filed the return are divorced or no \nlonger reside in the same household (former spouses), the IRS must \ndisclose, in writing, certain information about the IRS's collection \nactivities with respect to the joint liability assessed against both former \nspouses, to one of the former spouses, or to the former spouse’s \nauthorized representative, in response to a written request from that \nformer spouse, or from that former spouse’s authorized representative. \nThe information that the IRS must disclose, in writing, in response to a \nsection 6103(e)(8) written request is: \na. whether the IRS has attempted to collect the deficiency from the \nother former spouse; \nb. the amount, if any, collected from the other former spouse; \nc. the current collection status (e.g., Taxpayer Delinquent Account \n(“TDA”), installment agreement, suspended); and \nd. if suspended, the reason (e.g., unable to locate, hardship). \n2. Section 6103(e)(8) does not require or authorize disclosure to one \nformer spouse, or to that former spouse’s authorized representative, of \npersonal information about the other former spouse, such as the other \nformer spouse’s: \na. location or telephone number; \nb. any information about the other former spouse's employment, \nincome, or assets; nor \nc. the income level at which a currently not collectible account will \nbe reactivated. \n",
" \n2-16\n3. There is some overlap between disclosures authorized under section \n6103(e)(1)(B) in conjunction with section 6103(e)(7), see generally\nChapter 2, Part II, section II, and written disclosures mandated by \nsection 6103(e)(8). To the extent a written request by one former \nspouse, or by that former spouse’s authorized representative, does not \nspecifically invoke section 6103(e)(8), section 6103(e)(1)(B) in \nconjunction with section 6103(e)(7) would authorize release of the \nsame collection-related information available under section 6103(e)(8). \nNote: Disclosures authorized by section 6103(e)(7), see generally \nChapter 2, Part II, section II, are not required to be made or \nrequested in writing; they are not limited to, but routinely include, \nthe four items of collection-related information disclosed in writing \npursuant to a written request under section 6103(e)(8); and they \nare subject to a determination by the IRS that disclosure would not \nseriously impair federal tax administration. Disclosures pursuant to \nsection 6103(e)(1)(B) may be potentially broader than section \n6103(e)(8) disclosures, but the IRS routinely declines to disclose \npersonal information about one former spouse to the other former \nspouse under the authority of section 6103(e)(7). \nGeneral procedural guidelines regarding disclosures of collection-\nrelated information to former spouses with respect to a joint liability \nassessed against both former spouses have been incorporated in IRM \n5.1.22.1. \nExample: Husband and Wife were married and filed a joint return in \n1996; however, by 1997 they were divorced and filing separately. \nIn 1998, the IRS examined Husband and Wife's 1996 joint tax \nreturn and determined that the taxpayers underreported their \nincome. The IRS issued statutory notices to the taxpayers. Wife \nwants to know what amount, if any, of the deficiency the IRS has \ncollected from Husband. Wife has a number of options for \nrequesting this collection information: (1) The wife or her authorized \nrepresentative could submit a written request expressly citing \nsection 6103(e)(8). Under these circumstances, the IRS must \nrespond in writing. The written request, presumably, would take the \nform of a letter to the local disclosure office; however, any writing \nby the wife or her authorized representative would be adequate, \nincluding a handwritten request handed to a Collection Officer \nduring an interview. A Freedom of Information Act (FOIA) request \nby the wife or her authorized representative also would be \nadequate, but is not required; and (2) The wife or her authorized \nrepresentative could submit a written request that does not \nspecifically reference section 6103(e)(8), or telephone, or \"walk \n",
" \n2-17\ninto\" the local disclosure office (which would require a confirmation \nof identity) and make a request, or make a request orally during an \ninterview with, e.g., a Collection Officer, or, submit a FOIA request. \nDisclosure in each of these scenarios would be authorized under \nsection 6103(e)(1)(B) in conjunction with section 6103(e)(7). \n4. Section 6103(e)(9), Disclosure of Certain Information Where More \nThan One Person Liable for Penalty for Failure to Collect and Pay Over \nTax. Section 6672 provides that any person with responsibility for, and \nwho fails to forward to the government, taxes withheld from employees' \npaychecks (as well as other taxes owed the government) can be \nassessed a penalty equal to 100% of the amount owed. Disclosure \nconcerns generally arise when, as is often the case with companies, \nmore than one person is assessed the penalty, each of whom is liable \nfor the entire amount. In these situations, a person against whom the \npenalty has been assessed often seeks information concerning the \nextent to which the penalty was considered with respect to, assessed \nagainst, or has been satisfied by, other individuals. \nSection 6103(e)(9) allows a person determined to be liable for the Trust \nFund Recovery Penalty under section 6672, and that person’s \nauthorized representative, to obtain, pursuant to a written request, the \nfollowing information: \na. the name of any other person determined to be liable for the \npenalty; \nb. whether the IRS has attempted to collect such penalty from any \nother liable person and the nature of the collection activities; \nc. the current collection status (e.g., notice, TDA, installment \nagreement, suspended, and if suspended, the reason); and, \nd. the amount, if any, collected from each individual assessed the \npenalty. \n5. Information that can not be disclosed in response to a request pursuant \nto section 6103(e)(9) includes the following: \na. the liable person's location or telephone number; \nb. information about any individual whom the IRS did not assess \n(including individuals investigated or considered for potential \nliability but who were not assessed the liability); \nc. any information about the liable person's employment, income, \nor assets; and \n",
" \n2-18\nd. the income level at which a currently not collectible account will \nbe reactivated. \nK. I.R.C. § 6103(e)(10) – Limitation on Certain Disclosures Authorized by \nSubsection 6103(e) \nThe Mortgage Forgiveness Debt Relief Act of 2007, Pub. L. No. 110-142, 121 \nStat. 1803, 1807, amended section 6103(e) by adding new paragraph (10). The \nprovision limits the amount of information provided to a requester in cases of \ninspection or disclosure relating to the return of a partnership, S corporation, \ntrust, or an estate. In those cases, the information inspected or disclosed shall \nnot include any supporting schedule, attachment or list that includes the taxpayer \nidentity information of a person other than the entity making the return or the \nperson conducting the inspection or to whom the disclosure is made. In \nparticular, this means that, pursuant to section 6103(e), IRS can disclose to each \npartner only his own K-1; other partners’ K-1s must be withheld. \nNote: This provision does not affect disclosure in a judicial or \nadministrative tax administration proceeding pursuant to section \n6103(h)(4). See Chapter 3, Section V., Part C. \nII. I.R.C. § 6103(e)(7) – DISCLOSURES OF RETURN INFORMATION \nAny person who is authorized to inspect a return may also inspect return information \nrelated thereto, without written request, if the Secretary determines that disclosure \nwould not seriously impair federal tax administration. I.R.C. § 6103(e)(7). \nExample: Mr. Dent submits a written request to the IRS seeking access to his \n1997 examination file. One of the documents contained in the examination file is \na witness statement submitted by Mr. Torres concerning Mr. Dent's dealings with \nthe Green Monster Corporation. The appropriate supervisor (pursuant to Deleg. \nOrder 11-2) has determined that disclosure of the witness statement would \nseriously impair federal tax administration by divulging the identity of third-party \nwitnesses and the scope/direction of the IRS's investigation. Because an \nimpairment determination has been made, Mr. Dent may not have access to the \nwitness statement. \n",
" \n2-19\nPART III: DISCLOSURES PURSUANT TO TAXPAYER'S CONSENT \nI.R.C. § 6103(c) \nI. INTRODUCTION \nSection 6103(c) and its implementing regulations authorize the IRS to disclose returns \nand return information to any person or persons the taxpayer may designate in a \nrequest for or consent to disclosure, or to any other person at the taxpayer’s request to \nthe extent necessary to comply with a request for information or assistance made by the \ntaxpayer to the other person. Disclosure is authorized subject to any requirements and \nconditions as may be prescribed by regulations. \nBefore 1996, section 6103 provided that consents had to be in writing. In 1996, section \n1207 of the Taxpayer Bill of Rights 2, Pub. L. No. 104-168, 110 Stat. 1452, 1473 (1996), \namended section 6103(c) by deleting the word “written” from the language requiring a \nwritten request or consent before the IRS could disclose returns or return information to \na third party designated by the taxpayer. In January 2001, the IRS promulgated \ntemporary regulations authorizing, among other things, oral consents when the \ndesignee is assisting the taxpayer to resolve a tax matter. See Treas. Reg. \n§ 301.6103(c)-1T(c). On April 29, 2003, final regulations including the oral consent \nprovision replaced the temporary regulations. See Treas. Reg. § 301.6103(c)-1. By \nNotice 2010-8, 2010-3 I.R.B. 297 (Jan. 19, 2010), the IRS gave notice of its intention to \nrevise the regulations to extend the time period for receipt of consents from 60 days to \n120 days and to effect this change in practice immediately. The IRS promulgated the \nproposed regulations for this extension (76 Fed. Reg. 14827), on March 18, 2011. \nII. DISCLOSURES TO DESIGNEES PURSUANT TO A WRITTEN REQUEST OR \nCONSENT WHERE THE PURPOSE IS UNRELATED TO A TAX MATTER \nTreas. Reg. § 301.6103(c)-1(b) contains the requirements for consents to disclose \nreturns or return information to designated third parties where the consent is not for the \npurpose of assisting the taxpayer to resolve a tax matter. This type of consent, \ncommonly referred to as “general purpose consent,” must be in the form of a separate \nwritten document pertaining solely to the authorized disclosure. The regulation defines \nseparate written document to mean text appearing on one or more sheets of 8½-inch by \n11-inch or larger paper, or text appearing on one or more computer screens. See\nTreas. Reg. § 301.6103(c)-1(e)(1). \nThis regulation requires that the following information be set forth in the written \nauthorization:\n1. the taxpayer’s identity: name, address or taxpayer identifying number (e.g.,\nSSN, ITIN, ATIN, or EIN), or any combination thereof, which enables the IRS \nto clearly identify the taxpayer; \n2. the identity of the person to whom disclosure is to be made; \n",
" \n2-20\n3. the type of return (or the specific portion of the return) or return information \n(including particular data) to be disclosed; and \n4. the taxable period covered by the return or return information. \nThe consent must be signed and dated and the IRS must receive the consent within 120 \ndays of execution. Form 8821 (Tax Information Authorization) has been designed to \nmeet the requirements of Treas. Reg. § 301.6103(c)-1(b). \nExample: Mr. Smith applies for a bank loan. As part of the loan application form, \nMr. Smith states that his 2002 tax return and related information may be mailed \nto the bank's loan officer, Mr. Robinson. The authorization is not contained in a \nseparate document pertaining solely to the consent to disclose Mr. Smith’s return \nand return information; consequently, the IRS may not provide the information to \nMr. Robinson. \nExample: Mr. Williams submits a written authorization to the IRS authorizing the \ndisclosure of his 2009 criminal investigation file to Mr. Green. The authorization \nis dated April 6, 2010, and contains all information required by Treas. Reg. \n§ 301.6103(c)-1(b). The IRS receives the authorization on September 1, 2010. \nBecause the authorization was received by the IRS more than 120 days after the \ndate of execution, it is not valid. \nIII. DISCLOSURE TO DESIGNEES TO COMPLY WITH A TAXPAYER’S REQUEST \nFOR ASSISTANCE WITH A TAX MATTER \nA. In General \nTreas. Reg. § 301.6103(c)-1(c) contains the requirements for requests made by \nthe taxpayer to other persons, such as a Member of Congress or a relative, for \ninformation or assistance relating to the taxpayer’s return or a transaction or \nother contact between the taxpayer and the IRS. Consents under this provision \nmay be in writing or oral. \nB. Written Requests for Information or Assistance \n1. Taxpayers sometimes write to a Member of Congress to seek \nassistance with a tax question or problem they are having with the IRS. \nThe Member of Congress often forwards the letters to the IRS and \nrequests that the IRS response be made directly to him or her. \n2. According to Treas. Reg. § 301.6103(c)-1(c)(1)(i), the taxpayer’s letter \nis a tax information authorization provided it contains the following: \n",
" \n2-21\na. the taxpayer’s identity: name, address or taxpayer identifying \nnumber, or any combination thereof, which enables the IRS to \nclearly identify the taxpayer; \nb. the identity of the person to whom disclosure is to be made; \nc. sufficient facts about the request for information or assistance to \nenable the IRS to determine the nature and extent of the \ninformation or assistance requested and the tax information to \nbe disclosed; and \nd. the signature of the taxpayer and the date of the letter. \n3. A person who receives a copy of a taxpayer’s written request for \ninformation or assistance but who is not the addressee of the request, \nsuch as a Member of Congress who is provided with a courtesy copy of \na taxpayer’s letter to another Member of Congress or to the IRS, \ncannot receive return or return information under Treas. Reg. \n§ 301.6103(c)-1(c)(1). An exception to this rule will be made when the \ntaxpayer includes a signed addendum requesting the third party’s \nassistance in the matter, and the letter otherwise meets the above \nrequirements for a valid disclosure authorization. \nC. Oral Requests for Information or Assistance \n1. Treas. Reg. § 301.6103(c)-1(c)(2) authorizes the IRS to accept a \ntaxpayer’s oral consent to disclose returns or return information to \nparties assisting the taxpayer in resolving a federal tax matter provided \nthat the IRS has: \na. obtained from the taxpayer sufficient facts underlying the \nrequest for information or assistance to enable the IRS to \ndetermine the nature and extent of the information or assistance \nrequested and the returns or return information to be disclosed \nin order to comply with the taxpayer’s request; \nb. confirmed the identity of the taxpayer and the designee; and \nc. confirmed the date, the nature, and the extent of the information \nor assistance requested. \n2. Examples of disclosures pursuant to oral requests for information or \nassistance include, but are not limited to, disclosures to a friend, \nrelative, or other person whom the taxpayer brings to an interview or \nmeeting with IRS officials, and disclosures to a person whom the \ntaxpayer wishes to involve in a telephone conversation with IRS \nofficials. \n",
" \n2-22\n3. Provided that the requirements listed above in paragraph C.1. are met, \nthe taxpayer does not need to be present, either in person or as part of \na telephone conversation, for disclosures of returns or return \ninformation to be made to the other person. However, the IRS cannot \ninfer a taxpayer’s consent merely because a third party is present at a \nmeeting or on a telephone call. Oral consent must be explicit, and \nmust precede any discussion that includes the third party. Also, oral \nconsent must be made by the taxpayer directly to the IRS employee; \nthe third party cannot convey a message of oral consent. \n4. An IRS employee should record on a history sheet or history screen \nwhenever possible the fact of and date of an oral consent and what \ninformation the taxpayer consented to be disclosed. IRM 11.3.3.2.1(2). \nIV. PERMISSIBLE DESIGNEES AND PUBLIC FORUMS \nA. Permissible Designees Include: \n1. individuals; \n2. trusts; \n3. estates; \n4. corporations; \n5. partnerships; \n6. federal, state, local, and foreign government agencies, or subunits of \nthese agencies; and \n7. the general public. \nTo designate multiple individuals, the consent should list the specific individuals. \nTo designate a group or the staff of an entity (such as an agency), the consent \nshould list the group or entity name and other identifying information. \nB. Designees Not Permitted \nWhen a designee is an individual, section 6103(c) and its implementing \nregulations do not authorize disclosures to others associated with the individual, \nsuch as employees of the individual or members of the individual’s staff. \nC. Public Forums \nWhen disclosures are to be made in a public forum, like a courtroom or \ncongressional hearing, the request for or consent to disclosure must describe the \ncircumstances surrounding the public disclosure (e.g., congressional hearing, \n",
" \n2-23\njudicial proceeding, media, etc.) and the date or dates of the disclosure. Treas. \nReg. § 301.6103(c)-1(e)(3). \nV. WHO MUST SIGN THE CONSENT \nAny person who may obtain returns under section 6103(e)(1) through (5), except \nsection 6103(e)(1)(D)(iii) (relating to a shareholder of 1% or more ownership of stock in \na corporation), may execute a request for or consent to disclose a return or return \ninformation to third parties. For instance, in the case of a: \nJoint return – Either spouse may sign the consent. \nCorporation – Any officer of the corporation with authority under applicable state \nlaw to legally bind the corporation may sign the consent. \nPartnership – Any person who was a partner during the period covered by the \nreturn may sign the consent. \nFor rules on who may sign a consent with respect to other entities, see I.R.C. \n§ 6103(e)(1)-(5) and IRM 11.3.2.4. \nVI. TYPES OF CONSENT DOCUMENTS \nA. FORM 8821 – TAX INFORMATION AUTHORIZATION \n1. Form 8821 is a “general purpose” consent form that meets the \nrequirements of section 6103(c) and Treas. Reg. § 301.6103(c)-1(b). \n2. It is not a power of attorney and cannot be used to name a \nrepresentative. \n3. Facsimile transmission of the form is acceptable. \n4. An \"all years\" provision is invalid. The period of the authorization may \nnot extend for more than five years forward. \n5. The IRS must receive the form within 120 days of the date it was \nsigned and dated by the taxpayer. \n6. A subsequently executed Form 8821 revokes prior Forms 8821 \ncovering the same material listed on any previous 8821 unless box 4 of \nthe prior Form 8821 was checked, and unless box 6 of the current form \nis checked and the prior Forms 8821 that should remain in effect are \nattached. \n7. The form does not revoke any Form 2848 power of attorney in effect. \n",
" \n2-24\nB. FORM 2848 – POWER OF ATTORNEY AND DECLARATION OF \nREPRESENTATIVE \n1. See Treas. Reg. §' 601.501-601.527. \n2. Form 2848 can be used only to designate individuals authorized to \npractice before the IRS pursuant to Treasury Department Circular No. \n230.\n3. Facsimile transmission of the power of attorney is acceptable. \n4. Certain actions by the representative are authorized only if that \nauthority is specified on line 5 of the form. These include substitution \nand delegation of representatives and authority to authorize the IRS to \ndisclose the taxpayer’s returns or return information to a third party. \n5. An \"all years\" provision is invalid. A power of attorney may not extend \nfor more than three years forward (see Form 2848 instructions). \n6. A new Form 2848 revokes prior Forms 2848 covering the same tax \nmatters and periods; it will not revoke a Form 8821, Tax Information \nAuthorization. \nC. GENERAL/DURABLE/LIMITED POWER OF ATTORNEYS \n1. These types of powers of attorney are acceptable if they meet all IRS \nrequirements. See Treas. Reg. ' 601.503. \n2. These powers of attorney will be entered on the CAF only if a properly \nexecuted transmittal Form 2848 is attached. See Treas. Reg. \n§ 601.503(b)(2). \nD. GENERAL CONSIDERATIONS \n1. Section 6103 imposes no use or disclosure restrictions on a designee \nwho receives returns or return information pursuant to section 6103(c). \n2. The taxpayer seeking disclosure is responsible for obtaining necessary \nconsents. The IRS cannot provide identity or contact information of the \nthird-party taxpayer whose consent is sought. \n3. When deciding whether a consent received from a taxpayer authorizes \nthe disclosure requested, consult Treas. Reg. § 301.6103(c)-1 to \ndetermine the sufficiency of the consent. \n",
" \n2-25\n4. The consent should be as specific as possible in describing the returns \nor return information to be disclosed. Only information the taxpayer \nclearly intended to have disclosed should be provided. \n5. In a situation involving a conference with multiple taxpayers, consents \nmust be obtained from each taxpayer participating in the conference. \nEach participating taxpayer must consent to disclosure of that \ntaxpayer’s returns and/or return information to every other participating \ntaxpayer. In such situations, each taxpayer’s returns or return \ninformation can be disclosed to the others only after the IRS receives \nthe consent from that taxpayer. \n6. In addition, consent must be obtained if someone other than the \ntaxpayer or the taxpayer’s duly authorized representative is to be \npresent during a taxpayer conference. In these situations, an oral \nconsent may be obtained from the taxpayer to authorize disclosures to \npeople attending the conference or meeting, so long as those in \nattendance are helping to resolve a tax matter for the consenting \ntaxpayer, such as an organization’s employees who are familiar with \nthe facts surrounding a particular issue. \n7. Even with a valid consent, the IRS can refuse to disclose returns or \nreturn information if it determines that disclosure will seriously impair \nfederal tax administration. See I.R.C. § 6103(c); Treas. Reg. § \n301.6103(c)-1(e)(5); I.R.S. Deleg. Order No. 11-2 (formerly DO-156, \nRev. 17), IRM 1.2.49.3. \nExample: In United States v. Finch, 434 F. Supp. 1085, 1087 (D. \nColo. 1977), the court held in a summons enforcement context that, \neven with the consent of the taxpayers, the summoned party could \nnot invite third parties to attend a summons interview if attendance \nwould seriously impair federal tax administration (e.g., be \ndisruptive). \n8. The consent rules do not apply to disclosures to a taxpayer's \nrepresentative in connection with practice before the IRS; power of \nattorney rules apply in these circumstances. See Treas. Reg. § \n301.6103(c)-1(c)(3). For disclosures pursuant to a power of attorney or \nto an attorney-in-fact, see I.R.C. § 6103(e)(6); Treas. Reg. §§ 601.502-\n601.527. \n9. Consent rules do not apply to disclosures made to a taxpayer's \nattorney of record in a Tax Court proceeding. See Treas. Reg. \n§ 601.509. \n \n \n \n \n \n \n \n \n \n \n \n",
" \n2-26\n10. The taxpayer's designee or individual holding power of attorney cannot \nconsent to disclosure by the IRS to a third party unless the designation \nor power of attorney specifically permits it. \n11. A power of attorney document that is not valid for purposes of \nrepresentation will not be honored as a disclosure authorization. See\nIRM 11.3.3.3(4).\n12. For information on processing requests under section 6103(c) and \nTreas. Reg. § 301.6103(c)-1, see IRM 11.3.3. \nVII. CASE LAW \nA. Circuit Court Cases \n1. Huckaby v. IRS, 794 F.2d 1041, 1050 (5th Cir. 1986) (disclosures to \nstate agency based upon taxpayer's oral consent held unlawful). \nNote: Section 7431(b)(2) now provides that no liability will arise for \ndisclosures requested by the taxpayer. The court found liability \ndespite the consent because, at the time of this case, the statute \nand regulations required written consent to or request for disclosure \nand section 7431(b)(2) had not yet been enacted. \n2. Tierney v. Schweiker, 718 F.2d 449, 454 (D.C. Cir. 1983) (open-ended \nconsents (e.g., \"all years\") do not comply with the Treasury regulations \nrequiring that the consent identify the taxable year(s) covered by the \nconsent; in dicta, court stated that consents signed by taxpayers were \ncoerced because they were executed at the risk of losing supplemental \nsecurity income benefits and, therefore, did not constitute the type of \nknowing and voluntary consent contemplated by section 6103(c)). \nB. District Court Cases \n1. Ward v. United States, 973 F. Supp. 996, 1000 (D. Colo. 1997) (to \ncomply with the regulations, a consent must identify or designate the \nthird parties to whom the disclosures are to be made; disclosures to \npublic during radio broadcast were not authorized because the \ntaxpayer’s consent did not designate or identify persons to whom the \ndisclosures via radio broadcast were to be made). \n2. Hefti v. Loeb, No. 91-3311, 1992 U.S. Dist. LEXIS 12644, at *3 (C.D. \nIll. Aug. 11, 1992) (defendants acted in good faith pursuant to section \n6103(c) when disclosing Mr. Hefti's 1987 tax year return information to \nhis wife because all correspondence to the IRS was signed by both \nhusband and wife; Mrs. Hefti wrote to President Bush to enlist his help \n",
" \n2-27\nwith the IRS on behalf of herself and her husband, and in Tax Court \nshe advised she would be representing both herself and her husband \nconcerning the 1987 return). \n3. Olsen v. Egger, 594 F. Supp. 644, 646 (S.D.N.Y. 1984) (IRS not \nauthorized to disclose ex-husband's tax returns to ex-wife because the \nseparation agreement entered into by the parties, which directed the \nex-husband to supply the ex-wife with copies of his returns, failed to \nmeet the requirements for disclosure of tax returns to third parties via \nconsent). \n",
" \n2-28\nPART IV: DISCLOSURE OF INFORMATION AVAILABLE \n IN THE PUBLIC RECORD \nI. GENERAL PRINCIPLES \nNeither section 6103 nor any other provision of the Code contains any express \nexception authorizing publication of returns or return information that have become a \nmatter of public record.\nThe Supreme Court has held that what transpires in a court of law is a matter of public \nrecord and can be reported with impunity. No reasonable expectation of privacy \nattaches to information that is a matter of public record. Nixon v. Warner Commc’ns., \nInc., 435 U.S. 589, 609 (1978) (media is entitled to portions of tapes already released \nduring trial); Cox Broad. v. Cohn, 420 U.S. 469, 491-92 (1975) (“even the prevailing law \nof invasion of privacy generally recognizes that the interests in privacy fade when the \ninformation involved already appears on the public record”); Craig v. Harney, 331 U.S. \n367, 374 (1947) (“A trial is a public event. What transpires in the court room is public \nproperty”). See also Restatement (Second) of Torts § 652D, cmt. b (1977) (“There is no \nliability when the defendant merely gives further publicity to information about the \nplaintiff that is already public. Thus, there is no liability for giving publicity to facts about \nthe plaintiff’s life that are matters of public record…”). But see Dep’t of Justice v. \nReporters Comm. for Freedom of the Press, 489 U.S. 749, 762-67 (1989) (inherent \nprivacy interest in the nondisclosure of something that may once have been public but \nhas, with passage of time, passed into practical obscurity). \nII. CASE LAW \nA. Despite Section 6103’s Confidentiality Mandate, Courts Have Applied \nthe General Principles Discussed Above When Considering Whether to \nOrder Disclosure of Returns or Return Information that Became a Matter \nof Public Record. \n1. United States v. Posner, 594 F. Supp. 930, 936 (S.D. Fla. 1984) \n(denying a defendant taxpayer’s motion for protective order and \ngranting newspaper’s request for access to tax returns that had been \nadmitted into evidence; once certain information is in the public domain \nthe entitlement to privacy is lost, even when the information is federal \ntax information), aff’d, 764 F.2d 1535 (11th Cir. 1985). \n2. Cooper v. IRS, 450 F. Supp. 752, 755 (D.D.C. 1977) (once confidential \ninformation is released in Tax Court proceeding, it is never again \nconfidential for purposes of the Freedom of Information Act). \n",
" \n2-29\nB. Circuits \nIn the context of unauthorized disclosure lawsuits, however, the circuits are split \nregarding the proper treatment of returns and return information that have \nbecome a matter of public record in connection with tax administration. \nThe Ninth Circuit has held that returns and return information actually placed in \nand made a part of the public record (either as a result of judicial tax proceedings \nor as a part of collection activities) is no longer subject to section 6103’s \ndisclosure restrictions. \n1. William E. Schrambling Accountancy Corp. v. United States, 937 F.2d \n1485, 1489 (9th Cir. 1991) (information contained in Notice of Federal \nTax Lien and bankruptcy petition are no longer confidential, therefore \ndisclosure did not violate section 6103), cert. denied, 502 U.S. 1066 \n(1992). \n2. Lampert v. United States, 854 F.2d 335, 338 (9th Cir. 1988) (once tax \nreturn information is made a part of the public domain, that taxpayer \ncan no longer claim a right of privacy in that information), cert. denied,\n490 U.S. 1034 (1989). The Ninth Circuit's opinion affirmed three district \ncourt decisions: Peinado v. United States, 669 F. Supp. 953 (N.D. Cal. \n1987); Lampert, No. C-86-3463 RFP, 1987 WL 48210 (N.D. Cal. Apr. \n8, 1987); and Figur v. United States, 662 F. Supp. 515 (N.D. Cal. \n1987). \n3. Tanoue v. IRS, 904 F. Supp. 1161, 1167-68 (D. Haw. 1995) (only those \nitems of information actually placed in and made a part of the public \nrecord are no longer subject to section 6103’s disclosure restrictions). \nThe Sixth Circuit has held that returns and return information that have been \nmade public in connection with recording a federal tax lien is no longer protected \nby section 6103, but has not ruled with respect to disclosures made in judicial \nproceedings. See Rowley v. United States, 76 F.3d 796, 801-02 (6th Cir. 1996) \n(general rule of confidentiality not applicable where information was disclosed in \ntax lien filings and later disclosed in notices of sale that were made for tax \nadministration purposes). \nThe Fourth Circuit has relied on the absence of an express exception in section \n6103 to find that the otherwise unauthorized release of return information \npreviously publicized (in judicial proceedings) violates section 6103. Mallas v. \nUnited States, 993 F.2d 1111, 1120-21 (4th Cir. 1993) (even to the extent that \nthe revenue agent’s reports repeated information otherwise available to the \npublic, they still fell within the broad definition of return information). \n",
" \n2-30\nThe Seventh Circuit has adopted a hybrid test referred to as the \"immediate \nsource\" test, i.e., “that the definition of return information comes into play only \nwhen the immediate source of the information is a return, or some internal \ndocument based on a return, as these terms are defined in § 6103(b)(2), and not \nwhen the immediate source is a public document lawfully prepared by an agency \nthat is separate from the Internal Revenue Service and has lawful access to tax \nreturns.” Thomas v. United States, 890 F.2d 18, 21 (7th Cir. 1989) (IRS release \nof court’s opinion in tax case to newspaper, which then published article based \non the decision, was not an unauthorized disclosure because the information \nwas obtained from the court’s opinion). \nThe Third Circuit has not ruled on this issue in a published opinion. It issued a \nsummary opinion in Barnes v. United States, 17 F.3d 1428 (table cite) (3d Cir. \n1994), No. 93-3240, affirming the district court’s adoption of the Magistrate’s \nReport and Recommendation. See 1991 U.S. Dist. LEXIS 21633, at *14-15 \n(W.D. Pa. Aug. 2, 1991) (magistrate’s recommendation), adopted at 1991 U.S. \nDist. LEXIS 12883 (W.D. Pa. Aug. 27, 1991). The Magistrate, citing Cox \nBroadcasting and Lampert, concluded that a press release announcing an \nindictment issued by the U.S. Attorney’s office was not an unauthorized \ndisclosure because the information was already a matter of public record. \nThe Eighth Circuit cited Thomas in an unpublished opinion, with little analysis or \ndiscussion, to approve disclosures based upon public record information. Noske \nv. United States, 998 F.2d 1018 (table cite), No. 92-2761, 1993 WL 264531, at *2 \n(8th Cir. July 15, 1993) (no unauthorized disclosure of return information when \nthe IRS provided a copy of a district court opinion to the local paper). \nThe Tenth Circuit has adopted the Seventh Circuit approach. See Rice v. United \nStates, 166 F.3d 1088, 1091 (10th Cir. 1999) (press release issued based on \npublic affairs officer’s attendance at trial, and not on IRS documents, was not an \nunauthorized disclosure), cert. denied, 528 U.S. 933 (1999). But see Rodgers v. \nHyatt, 697 F.2d 899, 904, 906 (10th Cir. 1983) (an IRS agent’s in-court testimony \nat a summons enforcement hearing did not authorize the agent’s subsequent \nout-of-court statements to a third party regarding an ongoing investigation where \nthe agent actually obtained his confidential information from the taxpayer’s tax \nreturn and not at the public hearing). \nThe Fifth Circuit also applies the “immediate source” test, thereby implicitly \nadopting the Seventh Circuit's approach in Thomas.\n1. Johnson v. Sawyer, 120 F.3d 1307, 1323 (5th Cir. 1997) (IRS \nauthorized to issue a press release from court documents or \nproceedings; however, where information in press release came from \nIRS records, an unauthorized disclosure occurred). \n",
" \n2-31\n2. Harris v. United States, 35 F. App’x 390 (table cite), No. 01-20543, \n2002 WL 760887, at *3 (5th Cir. Apr. 17, 2002) (revenue officer who \ndisclosed that the plaintiffs had a judgment filed against them for a \nspecific amount had acted in a good faith belief that the disclosure was \nauthorized as a disclosure of information in the public record), cert. \ndenied, 538 U.S. 922 (2003). \nIII. IRS POSITION ON PUBLIC RECORD INFORMATION \nAlthough section 6103 bars disclosure of returns and return information taken directly \nfrom IRS files, it does not ban the disclosure of information that is taken from the public \ncourt record. The IRS's position has confined the disclosure of public record information \nto returns and return information that have been made a matter of public record in \nconnection with collection activities (such as filing notices of federal tax lien, \nannouncements of tax sales of property) and judicial tax proceedings (and criminal \nproceedings for which returns and return information were disclosed pursuant to section \n6103(i)). The following provides a framework for analyzing public record information. \nA. Public Records\nReturn information loses any confidential status if it becomes a matter of public \nrecord. Returns and return information that have become public as a result of \nactions taken by, or on behalf of, the IRS are no longer subject to the \nconfidentiality provisions of the Code and may be provided to a third-party \nrequester. Great care should be exercised in determining whether returns or \nreturn information have actually become a matter of public record, as information \nthat has not been made public remains subject to the confidentiality provisions. \nSee Tax Analysts v. United States, 391 F. Supp. 2d. 122, 131 (D.D.C. 2005) \n(internal check sheets and supporting documents that accompany Chief Counsel \nAdvice memoranda subject to public inspection consistent with section 6110(i) \ncannot be disclosed in a FOIA suit; they reveal more information than what \nappears in the public record of the Tax Court proceedings to which the CCA \nrelate). IRS employees should consult with their local disclosure officer if they \nhave any questions. \nB. Special Circumstances – Manner of Entering Public Record \nInformation made public by a taxpayer or third party does not affect the \nconfidentiality of identical return or return information in the possession of the \nIRS. Thus, the IRS cannot use return information to confirm information made \npublic by any other party unless specifically authorized to do so by section 6103. \nFor example, if a Fortune 500 company announces that the IRS is auditing its \ninventory accounting practices for purposes of determining income, the IRS \ncannot confirm that announcement because there is no statutory authority \nauthorizing the IRS’s disclosure. \n",
" \n2-32\nInformation that the IRS obtains from public record sources (such as copies of \ncourt filings, incorporation documents, or real estate ownership records) for \npurposes of determining liability under Title 26 is return information in the IRS \nfiles. The fact that the IRS tax administration files include this otherwise public \ninformation is itself return information (and not a matter of public record), \nbecause it discloses, albeit indirectly, the fact that the taxpayer is the subject of \nsome tax compliance activity such that the IRS cannot acknowledge holding \nsuch information except as authorized by section 6103. By authorizing the \nrelease of return information only after it has become a matter of public record in \nconnection with tax administration, the IRS avoids linking otherwise innocuous \npublic information with a person’s tax liability. \nSee generally IRM 11.3.11.13, Information Which Has Become Public Record, \nfor further explanation. \n",
" \n2-33\nPART V: DISCLOSURES TO COMMITTEES OF CONGRESS \nI.R.C. § 6103(f) \nI. INTRODUCTION \nReturns and return information may be disclosed to the congressional tax writing \ncommittees (Joint Committee on Taxation (JCT), House Ways and Means Committee, \nand Senate Finance Committee) upon written request from the chairperson of those \ncommittees. Returns and return information may also be disclosed to the Chief of Staff \nof the JCT upon written request. The chairpersons of the tax writing committees and \nthe Chief of Staff of the JCT may designate agents to receive returns and return \ninformation on their behalf.35\nThe nontax writing committees may also receive returns and return information, but \nunder more restrictive circumstances than apply to the tax writing committees. \nFinally, returns and return information may be disclosed by a whistleblower to a tax \nwriting committee or to an agent of a tax writing committee if the whistleblower believes \nthat the information may relate to evidence of possible misconduct, maladministration, \nor taxpayer abuse. \nII. DISCLOSURES TO TAX WRITING COMMITTEES AND CHIEF OF STAFF OF THE \nJOINT COMMITTEE ON TAXATION \nA. I.R.C. § 6103(f)(1) \nThis section permits returns and return information to be disclosed to the House \nWays and Means Committee, Senate Finance Committee, or the JCT upon \nwritten request from the chairperson of the committee. Returns and return \ninformation that can directly or indirectly identify a specific taxpayer may only be \nfurnished to the committee when sitting in closed executive session (unless the \ntaxpayer consents in writing). \nB. I.R.C. § 6103(f)(2) \nThis section permits returns and return information to be disclosed to the Chief of \nStaff of the JCT upon his or her written request. The Chief of Staff may submit \nthe return or return information to the House Ways and Means Committee, \nSenate Finance Committee, or the JCT, except that any return or return \ninformation that can directly or indirectly identify a specific taxpayer may only be \nfurnished to the committee when sitting in closed executive session (unless the \ntaxpayer consents in writing). \n35 Members of Congress in their individual capacity may not have access to returns and return \ninformation absent a valid consent from the taxpayer requesting that the Member have access. See \ngenerally Chapter 2, Part III. \n",
" \n2-34\nC. I.R.C. § 6103(f)(4)(A) \nThis section permits the chairperson of the House Ways and Means Committee, \nSenate Finance Committee, or the JCT, or the Chief of Staff of the JCT, to \ndesignate agents to receive returns and return information on their behalf. For \nexample, the Government Accountability Office routinely is designated as an \nagent of one of the tax writing committees to receive returns and return \ninformation for purposes of conducting investigations. \nD. Additional Information \nFor procedures on processing requests received from the congressional \ncommittees and the Chief of Staff of the JCT for the disclosure of returns and \nreturn information, see IRM 11.3.4.4. \nIII. DISCLOSURES TO NONTAX WRITING COMMITTEES \nSection 6103(f)(3) permits returns and return information to be disclosed to a nontax \nwriting committee or a duly authorized and designated subcommittee upon: (1) a \ncommittee action approving the decision to request the information; (2) an authorizing \nresolution of the House or Senate (or, in the case of a joint committee, a concurrent \nresolution); and (3) a written request by the chairperson of the committee, on behalf of \nthe committee, for disclosure of the information. Returns and return information may \nonly be furnished when the committee or subcommittee is sitting in closed executive \nsession unless the taxpayer consents in writing. Requests pursuant to section \n6103(f)(3) are infrequent. \nIV. DISCLOSURES BY WHISTLEBLOWERS \nSection 6103(f)(5) permits any person (i.e., a whistleblower) who otherwise has or had \naccess to any return or return information under section 6103 to disclose the return or \nreturn information to a tax writing committee or to an agent of a tax writing committee \ndesignated under the authority of section 6103(f)(4)(A) if the whistleblower believes that \nthe return or return information may relate to evidence of possible misconduct, \nmaladministration, or taxpayer abuse. \n",
" \n2-35\nPART VI: DISCLOSURES TO PRESIDENT AND CERTAIN OTHER PERSONS \nI.R.C. § 6103(g) \nI. INTRODUCTION \nReturns and return information may be furnished to the President or certain specified \nPresidential designees upon receipt of a written request signed personally by the \nPresident. \nRequests for returns and return information by the President must be reported to the \nJoint Committee on Taxation (JCT) on a quarterly basis. The report must include the \nreason for each request. \nReturn information may also be disclosed for the tax check of a person under \nconsideration for appointment in the executive or judicial branch of the Federal \nGovernment. Under current practice, these disclosures are made pursuant to the \ntaxpayer’s consent. \nII. DISCLOSURES TO THE PRESIDENT AND THE WHITE HOUSE \nA. History \nPrior to the amendment of section 6103 in 1976, there was a concern that \npresidents and their staffs were accessing and using returns and return \ninformation, at their convenience, for purposes other than tax administration. \nMuch of this concern came to light during the Watergate era. Thus, when \namended in 1976, section 6103 authorized the President to access returns and \nreturn information, but only as specified by the statute, which includes a provision \nfor an accounting of requests. \nB. I.R.C. § 6103(g)(1) \nUnder this provision, the President can gain access to returns and return \ninformation only upon written request signed by the President personally. The \nstatute requires no formality other than that the request: (1) name the taxpayer \nand provide the taxpayer’s address; (2) set forth the type of return or return \ninformation being requested and the taxable periods involved; and (3) indicate \nthe reason why disclosure is sought. \nThe President may also designate by name in the written request employees of \nthe White House Office to whom disclosure is authorized. \n",
" \n2-36\nC. I.R.C. § 6103(g)(3) \nThis provision, however, specifically precludes redisclosure of returns and return \ninformation by those employees without the personal written direction of the \nPresident. \nD. I.R.C. § 6103(g)(4) \nThis provision precludes disclosure of returns and return information under this \nsection to any employee of the White House Office whose annual rate of basic \npay is less than the Executive Level V pay rate. It is likely that this provision was \nintended as a limitation not only on IRS disclosures in the first instance to \nindividuals at a certain executive level, but also on redisclosure by persons, \nincluding the President, who have received such information under section \n6103(g)(1). The legislative history for this section indicates that the provision, to a \nlarge extent, codifies former President Ford’s Exec. Order No. 11805, 39 Fed. \nReg. 34261 (Sept. 20, 1974). A similar provision in the Executive Order was \nintended to restrict access to returns and return information to a relatively limited \nnumber of people in the White House. S. REP. NO. 94-938, at 325 (1976); 1976-\n3 C.B. (Vol. 3) 323. \nE. I.R.C. § 6103(g)(5) \nThis provision requires that the President file a report with the JCT, thirty days \nafter the close of each calendar quarter, setting forth the taxpayers with respect \nto whom disclosure requests pursuant to this section were made during the \nquarter, the returns and return information involved, and the reason for such \nrequest. To date, no disclosures pursuant to section 6103(g)(5) have been \nmade. \nIII. TAX CHECKS \nSection 6103(g)(2) provides for tax check disclosures, upon written request by the \nPresident or head of an agency, for individuals under consideration for an appointment \nin the executive or judicial branch of the federal government. The same restrictions as \nto redisclosure (section 6103(g)(3)), executive level disclosure (section 6103(g)(4)), and \nthe reporting requirements (section 6103(g)(5)), discussed above, apply to the \nPresident and the head of an agency regarding tax checks. However, it is the practice \nto perform these tax checks pursuant to taxpayer consents. Consents to disclose for \ntax checks are processed centrally by the IRS Office of Governmental Liaison and \nDisclosure, Tax Checks Section. See Treas. Reg. § 301.6103(c)-1(b). See generally \nChapter 2, Part III. \n",
" \n3-1\nCHAPTER 3 \nTAX ADMINISTRATION DISCLOSURES \nI.R.C. § 6103(h) \nI. INTRODUCTION \nSection 6103(h) concerns disclosures for tax administration purposes. Under section \n6103(h)(1), returns and return information are, without written request, open to \ninspection by or disclosure to officers and employees of the Department of the Treasury \nwhose official duties require the inspection or disclosure for tax administration purposes. \nSections 6103(h)(2) and (3) provide the mechanism for the Department of Justice (DOJ) \nto obtain returns and return information in connection with carrying out its \nresponsibilities in both the civil and criminal tax contexts. Section 6103(h)(2) describes \nwhat information can be disclosed and for what purposes. Section 6103(h)(3) contains \nthe procedural prerequisites for disclosure. \nUnder section 6103(h)(4), returns and return information may be disclosed in federal or \nstate judicial or administrative tax proceedings if certain conditions are satisfied. The \nrules relating to disclosure in judicial and administrative tax proceedings are narrower \nthan the rules that authorize disclosures to DOJ; i.e., they require that a more strict test \nbe met before disclosure may be made in a tax proceeding. \nSection 6103(h)(6) addresses access to returns and return information by members of \nthe IRS Oversight Board. The Internal Revenue Service Restructuring and Reform Act \nof 1998 (RRA 98), Pub. L. No. 105-206, § 1101, 112 Stat. 685 (1998), created the IRS \nOversight Board to oversee the IRS in its administration, management, conduct, \ndirection, supervision, execution, and application of the tax laws. Generally, presidential \nappointees to the Board and employees and detailees of the Board are not entitled to \nreturns or return information. An exception exists for reports containing returns or return \ninformation, prepared by the Commissioner of Internal Revenue or the Treasury \nInspector General for Tax Administration, to assist the IRS Oversight Board in, and for \nthe sole purpose of, carrying out its duties. \nII. DISCLOSURES TO TREASURY EMPLOYEES \nSection 6103(h)(1) authorizes disclosure of tax returns and return information to officers \nand employees of the Department of the Treasury whose official duties require access \nto the material for tax administration purposes. In essence, this section authorizes \naccess to returns and return information when the recipient-employee establishes a \n\"need to know\" to perform a tax administration function. This is not a “cannot function \nwithout it” test; rather, it is a question of whether the employee can perform the duties \nmore efficiently, more accurately, and/or more timely with the information than without it. \n",
" \n3-2\nA. Disclosures within the IRS and the Office of Chief Counsel \nOn many occasions, employees other than those assigned to work a particular \ncase have an official need for returns and return information to carry out their tax \nadministration responsibilities. These employees may be other field attorneys or \nIRS employees working similar or related cases. The propriety of each \ndisclosure will hinge on whether there is an official tax administration need for the \nmaterial. The authority to disclose returns and return information to an employee \nworking an examination, collection, appeals, criminal investigation, or tax \nlitigation case, or other self-evident tax matter case, is rarely questioned. See, \ne.g., NTEU v. FLRA, 791 F.2d 183, 187 n.7 (D.C. Cir. 1986) (personnel discipline \ncase; referring to section 6103(h)(1), the court stated “[t]his inroad on privacy is \nboth necessary and expected; the very reason for requiring returns and return \ninformation from the public is ‘for purposes of tax administration’”); Gardner v. \nUnited States, No. Civ. A. 96-1467.EGS., 1999 WL 164412, at *3 (D.D.C. Jan. \n29, 1999) (disclosure of former employee’s returns and return information \nauthorized under section 6103(h)(1) to determine grounds for termination and \ndenial of unemployment benefits), aff'd, 213 F.3d 735 (D.C. Cir. 2000), cert. \ndenied, 531 U.S. 1153 (2001); Hobbs v. United States, No. H-96-4260, 1997 WL \n879824 (S.D. Tex. Nov. 3, 1997) (no page numbers on Westlaw, see section IV \nof the opinion) (disclosures among IRS employees made in connection with \nreopening audit of former IRS employee were authorized by section 6103(h)(1)); \nKenny v. United States, No. 10-4432, 2012 WL 2945683, at *2-3 (3d Cir June 4, \n2012) (inspection of practitioner's returns by Office of Professional Responsibility \n(OPR) employees was authorized by section 6103(h)(1) because compliance \nchecks fall within their official duties); cf. Barnard v. United States, No. 78-5291-\nCiv-JCP, 1981 WL 1754, at *2 (S.D. Fla. Mar. 5, 1981) (former employee \nasserting Freedom of Information Act claim had no right under section 6103(h)(1) \nto obtain portion of his conduct investigation report containing third-party return \ninformation).\nExample: Attorney A has been assigned a case involving the question of \nwhether a transfer of property, which was cast as a sale-leaseback, was in \nreality a financing arrangement. A learns that attorney B worked on a \nsimilar case involving the same leasing company, but a different taxpayer. \nA requests certain information from B's case file. The information sought \nby A may be provided to him, because A has an official need for the \nmaterial for purposes of tax administration. \nNote: The information obtained from B should be maintained separately \nfrom A’s case file and clearly marked as third-party return information with \nthe identity of the third-party taxpayer.\n",
" \n3-3\nB. Disclosures to Other Treasury Employees \nSection 6103(h)(1) also authorizes disclosure to employees of other Treasury \ncomponents. Again, the key to whether disclosure is authorized is whether there \nis an official need for the employee to know the return or return information for \npurposes of tax administration. \nTreasury Inspector General for Tax Administration (TIGTA) employees, as \nemployees of a component of the Department of the Treasury, are authorized to \ninspect or to receive disclosure of returns or return information in the course of \ntheir official tax administration duties under section 6103(h)(1). According to the \nlegislative history, “[t]axpayer returns and return information are available for \ninspection by the Treasury IG [Inspector General] for Tax Administration \npursuant to section 6103(h)(1). Thus, the Treasury IG for Tax Administration has \nthe same access to taxpayer returns and return information as does the Chief \nInspector under present law.” IRS RESTRUCTURING AND REFORM ACT OF 1998,\nConference Report, H.R. REP. NO. 105-599, at 224 (1998). \nWhereas section 6103(h)(1) provides that a written request for disclosure of \nreturns and return information is not necessary, the IRS has adopted a practice \nthat written requests will generally be required before any disclosure will be \nmade to employees of other Treasury offices. See IRM 11.3.22.4(4). An e-mail \nmessage is a sufficient written request for this purpose. \nIII. DISCLOSURES TO THE DEPARTMENT OF JUSTICE – REFERRAL\nSection 6103(h)(3) outlines two methods by which DOJ may secure returns and return \ninformation for use in tax administration proceedings before a federal grand jury or any \nfederal or state court, or to prepare for these proceedings, or for use in investigations \nthat may result in these proceedings. \nSection 6103(h)(3)(A) provides that the IRS may make disclosures to DOJ under \nsection 6103(h)(2) on its own motion where a tax case has been referred to DOJ, or, a \ntaxpayer or third party initiates a suit against the IRS under sections 7421-7436. \nAlthough section 6103 contains no definition of “referral,” the term has generally been \nconstrued as an institutional decision by the IRS to request that DOJ defend, prosecute, \nor take other affirmative action on a tax case. \nThe term \"referral\" is defined in section 7602(d) in the context of an administrative \nsummons, and includes a recommendation for a grand jury investigation or criminal \nprosecution for offenses connected with the administration of the internal revenue laws. \nThis definition is encompassed within the meaning of referral for purposes of section \n6103(h)(3). But a referral for purposes of section 6103 is not limited to a referral for \npurposes of section 7602. It also includes other situations where the Service asks DOJ \nto prosecute, defend, or take action on a tax case on behalf of the IRS, such as search \n",
" \n3-4\nwarrants, summons enforcement, writs of entry, etc. See United States v. Bacheler,\n611 F.2d 443, 447-49 (3d Cir. 1979) (referral to DOJ for criminal tax prosecution proper \nunder section 6103(h)(3)(A)). \nA referral for purposes of section 6103(h)(3) may, in appropriate circumstances, include \nthe necessary solicitation by the IRS of advice and assistance from DOJ with respect to \na case before a referral of the entire case, often called “referral for limited purpose.” \nDisclosures of returns and return information by IRS to DOJ in connection with the \nnecessary solicitation of advice and assistance will be authorized by section \n6103(h)(3)(A), provided the requirements of section 6103(h)(2) are satisfied. See\nGeneral Explanation of the Tax Reform Act of 1976, H.R. 10612, Pub. L. No. 94-455 \n(JCS-33-76), at 313-16 (J. Comm. Print 1976),1976-3 C.B. (Vol. 2) 334. \nNote, however, that strict procedural constraints apply even when the solicitation of \nadvice is necessary for federal tax administration. In particular, solicitations for advice \nthat entail the disclosure of returns and return information may be made only by IRS \npersonnel with the delegated authority to refer the underlying matter, or with specific \ndelegated authority to refer a case for legal advice to DOJ. Furthermore, disclosures in \nconnection with the solicitation of advice are not authorized after the point that the \nadvice is rendered, i.e., there is no authority to make disclosures to “keep DOJ \napprised” of developments in a tax investigation or to give DOJ periodic updates on \nnon-referred cases. The referral (and disclosure authority) terminates once the advice \nor assistance is rendered. \nUnder section 6103(h)(3)(B), DOJ may initiate the referral. In these circumstances, a \nwritten disclosure request is required from the Attorney General, Deputy Attorney \nGeneral, or an Assistant Attorney General. This authority to request returns and return \ninformation cannot be delegated. Therefore, a request from a United States Attorney in \nthese circumstances cannot be honored. See Williams v. United States, Nos. \n86-T-331-S to 86-T-334-S, 86-T-340-S, 86-T-352-S, 86-T-394-S, 1986 WL 9721, at *2-4 \n(M.D. Ala. June 24, 1986). \nCourts have scrutinized the IRS's procedures and delegation orders in the context of \nreviewing challenges to disclosures in referred and non-referred cases. See Bacheler,\n611 F.2d at 447 (technical requirements of referral; in tax cases “there are two possible \nroutes under which disclosure of tax returns and return information can be made” to \nDOJ attorneys – compliance with either section 6103(h)(3)(A) or section 6103(h)(3)(B)); \nUnited States v. Chem. Bank, 593 F.2d 451, 457 (2d Cir. 1979) (DOJ attorneys may \nobtain returns and return information pursuant to section 6103(h)(2) “only on \ncompliance with” section 6103(h)(3)); United States v. Mangan, 575 F.2d 32, 37-41 (2d \nCir. 1978) (technicalities of disclosure to DOJ); United States v. Robertson, 634 F. \nSupp. 1020, 1027 n.9 (E.D. Cal. 1986) (“Section 6103(h)(3) sets forth two alternative \nprocedures by which the Department of Justice may inspect return information when \n[section 6103(h)(2)] is satisfied . . . . ”), aff'd mem., 815 F.2d 714 (9th Cir. 1987); see \nalso United States v. Feldman, 731 F. Supp. 1189, 1197-98 (S.D.N.Y. 1990) \n(requirements for referrals - summons context); Williams v. United States, 1986 WL \n",
" \n3-5\n9721 at *2-4 (same); United States v. Carr, 585 F. Supp. 863, 866 (E.D. La. 1984) \n(same); McTaggart v. United States, 570 F. Supp. 547, 550 (E.D. Mich. 1983) (same). \nThe only remedies available to an individual asserting an unauthorized disclosure, \nincluding disclosure to DOJ, are specified in section 7431. United States v. Michaelian,\n803 F.2d 1042 (9th Cir. 1986) (dismissal of indictment and suppression of evidence \nwere not available remedies if criminal defendant’s return information had been \nimproperly disclosed to DOJ). \nIV. DISCLOSURES TO THE DEPARTMENT OF JUSTICE TO PREPARE FOR \nCASES\nA. Disclosures to DOJ \nSection 6103(h)(2) recognizes the need of DOJ to access returns and return \ninformation to carry out its civil and criminal tax responsibilities in cases referred \nunder section 6103(h)(3). Under section 6103(h)(2), returns and return \ninformation may be disclosed to DOJ officers and employees (including United \nStates attorneys) personally and directly engaged in, and solely for their use in \nany proceeding before a federal grand jury or in preparation for any proceeding \n(or investigation which may result in a proceeding) before a federal grand jury or \nany federal or state court in matters involving tax administration if: \n1. the taxpayer is or may be a party to the proceeding, or the proceeding \narose out of, or in connection with, determining the taxpayer's civil or \ncriminal liability, or the collection of civil liability, with respect to tax \n(section 6103(h)(2)(A)); \nExample: A section 7203 willful failure to file case has been \nreferred to DOJ for prosecution. The DOJ attorney assigned to the \ncase orally requests certain information pertaining to the taxpayer's \npast filing history. The material requested may be provided as part \nof the referred case under section 6103(h)(2)(A), since the DOJ \nattorney is “personally and directly engaged in” the referred tax \ncase and the taxpayer is or may be a party to the tax proceeding. \nExample: In a summons enforcement case against a bank, in which \nthe taxpayer chooses not to intervene, information regarding the \nnature of the underlying investigation of the taxpayer may be \nprovided to the DOJ attorney “personally and directly engaged in” \nthe summons enforcement tax proceeding, pursuant to section \n6103(h)(2)(A), since the summons enforcement proceeding arose \nin connection with determining the taxpayer’s civil or criminal \nfederal tax liability. \nExample: In a wrongful levy action under section 7426, the return \nand return information of the taxpayer may be disclosed to DOJ \n",
" \n3-6\nunder section 6103(h)(2)(A) because the proceeding arises out of \nor in connection with collecting the taxpayer's liability. \n2. the treatment of an item reflected on a return is or may be related to \nthe resolution of an issue in the proceeding (section 6103(h)(2)(B) – \nthe “item” test); or \n3. the return or return information relates or may relate to a transactional \nrelationship between a person who is or may be a party to the \nproceeding and the taxpayer whose information would be disclosed \nwhich affects, or may affect the resolution of an issue in the proceeding \n(section 6103(h)(2)(C) – the “transactional relationship” test). See\nDavidson v. Brady, 559 F. Supp. 456, 461-62 (W.D. Mich. 1983), aff’d \non other grounds, 732 F.2d 552 (6th Cir. 1984) (third-party tax \ninformation in tax evasion case); Hostetler v. Yungbluth, No. 77-1929-\nCiv-NCR, 1977 WL 1297, at *1 (S.D. Fla. Sept. 30, 1977) (disclosure to \nUnited States Attorney authorized in summons enforcement case even \nthough taxpayer was not entitled to be a party to the proceedings). \nHostetler was decided under the original version of section 6103(h)(2), \nin which section 6103(h)(2)(A) only authorized disclosure of returns \nand return information of a taxpayer who “is or may be” a party to the \nproceeding. The court relied on the transactional relationship test of \nsection 6103(h)(2)(C) as authorization for the disclosure. See part \nV.C., below, for more information regarding section 6103(h)(4)(A). \nExample: Assume that unreported income is a major issue in a tax \nprosecution case, and that the amount of unreported income was \ndetermined by a net worth method. During the investigation, the \ntaxpayer expended a substantial amount of cash in purchasing a \ncapital asset from a third party. Inspection of the third party’s return \nrevealed that the total amount paid by the taxpayer was reported by \nthe third party on Schedule D. Since both the “item” and \n“transactional relationship” tests of section 6103(h)(2) have been \nmet, the third party’s Schedule D may be furnished to the DOJ \nattorney assigned to the case. Other portions of the third party’s \nreturn, however, do not relate, or potentially relate, to resolution of \nthe unreported income issue, and therefore, should not be \ndisclosed to the DOJ attorney. \nFor a further discussion of the “item” and “transactional relationship” tests, see\nSection V. The legislative history cited in Section V actually relates to section \n6103(h)(2). However, because sections 6103(h)(2) and (h)(4) have similar “item” \nand “transactional relationship” tests, the legislative history is applicable to both \nCode sections.\n",
" \n3-7\nB. Case Law \n1. United States v. Chemical Bank, 593 F.2d 451, 457 (2d Cir. 1979) \n(disclosures to DOJ in the context of an IRS audit requested by DOJ \nStrike Force Program must follow “institutional system of procedures,” \ne.g., requisite written request, to ensure IRS does not become \n“information gathering agency” for DOJ). \n2. Heimark v. United States, 14 Cl. Ct. 643, 647 (1988) (section \n6103(h)(2) covers only disclosures to DOJ, not disclosures in court). \n3. United States v. Mangan, 575 F.2d 32, 37-41 (2d Cir. 1978) \n(technicalities of disclosure to DOJ). \n4. McLarty v. United States, 741 F. Supp. 751, 753-57 (D. Minn. 1990) \n(disclosure of counsel’s return to DOJ and the court in connection with \ncriminal case pro hac vice hearing not permissible; pro hac vice\nhearing is not tax administration), related proceeding, 784 F. Supp. \n1401 (D. Minn. 1991). \n5. Topercer v. Lee, No. 77-1837A, 1978 WL 1211, at *2 (N.D. Ga. Apr. 6, \n1978) (disclosure to DOJ for grand jury proceedings permissible). \n6. United States v. Lavin, 604 F. Supp. 350, 355-56 (E.D. Pa. 1985) \n(disclosure procedures to be strictly followed; drug trafficking is not tax \nadministration). \n7. Young v. Burks, 849 F.2d 610 (table cite), No. 84-1805, 1988 WL \n62396, at *3 (6th Cir. June 21, 1988) (referral for routine summons \nenforcement actions). \nV. DISCLOSURES IN JUDICIAL AND ADMINISTRATIVE TAX PROCEEDINGS \nA. Rules and Requirements \nSection 6103(h)(4) provides rules regarding the disclosure of returns and return \ninformation in judicial and administrative tax proceedings. The tax proceedings \nmay be at either the federal or state level, including refund suits and proceedings \nbefore the Tax Court. The rules outlined in section 6103(h)(4) are in addition to \nthe rules of evidence and other rules governing discovery in judicial and \nadministrative tax proceedings, and also subject to rules imposed by tax \nconventions or treaties and tax information exchange agreements on returns or \nreturn information disclosed pursuant to those conventions or agreements. \nThe principal purpose behind section 6103(h)(4) is to regulate the sensitive \nreturns and return information that is disclosed in proceedings which are often \n",
" \n3-8\npublic. Although authorizing the disclosure of returns and return information of a \nperson who is a party to the tax proceeding, section 6103(h)(4) generally limits \nthe disclosure of returns and return information of persons who are not parties to \nthe proceeding (third parties). These third parties have important privacy \ninterests in limiting the disclosure of their returns or return information in tax \nproceedings to which they are not parties and in which their tax liability is not at \nissue. Congress provided a very simple explanation of why it decided to limit \nthird-party returns and return information disclosures: \nWhile the committee decided to maintain the present rules pertaining to \nthe disclosure of returns and return information of the taxpayer whose civil \nand criminal liability is at issue, restrictions were imposed in certain \ninstances at the pre-trial and trial levels with respect to the use of third- \nparty returns, where, after comparing the minimal benefits derived from \nthe standpoint of tax administration to the potential abuse of privacy, the \ncommittee concluded that the particular disclosure involved was \nunwarranted. \nS. REP. NO. 94-938, at 324-25 (1976), 1976-3 C.B. (Vol. 3) 362-63. Thus, \nreturns and return information of third parties may be disclosed under the second \nclause of section 6103(h)(4)(A), and the more restrictive rules of section \n6103(h)(4)(B), (C), and (D). \nSection 6103(h)(4) provides that returns and return information may be disclosed \nin judicial and administrative tax proceedings if: \n1. the taxpayer is a party to the tax proceeding, or the tax proceeding \narose out of, or in connection with, determining the taxpayer’s civil or \ncriminal liability, or the collection of the taxpayer’s civil liability, in \nrespect of any tax imposed under the Code (section 6103(h)(4)(A)); \n2. the treatment of an item reflected on the return is directly related to the \nresolution of an issue in the tax proceeding (section 6103(h)(4)(B) – the \n“item” test); \nNote: Chief Counsel Notices 2006-003 and 2006-006 clarify the \nauthority to disclose third-party returns and return information as \npattern evidence in specific situations. Chief Counsel Notices \n2006-003 and 2006-006 have not yet been incorporated into the \nCCDM. See Section D, below. \n3. the return or return information directly relates to a transactional \nrelationship between a person who is a party to the proceeding and the \ntaxpayer whose return or return information would be disclosed which \ndirectly affects the resolution of an issue in the proceeding (section \n6103(h)(4)(C) – the “transactional relationship” test); or \n",
" \n3-9\n4. the disclosure is authorized by order of a court pursuant to 18 U.S.C. \n§ 3500 or Rule 16 of the Federal Rules of Criminal Procedure, the \ncourt being authorized in the issuance of the order to give due \nconsideration to congressional policy favoring the confidentiality of \nreturns and return information as set forth in the Code (section \n6103(h)(4)(D)). \nB. Definitions \nTo apply properly the section 6103(h)(4) rules, an understanding of the terms \nlisted below is important. \n1. “Third-party returns and return information” mean returns and \nreturn information filed with, or received, prepared, or collected by, the \nIRS with respect to the liability or possible liability under the Code of a \ntaxpayer (or a group of specific taxpayers) who are not parties to the \nproceeding. A third-party return is a return that is filed with the IRS by, \non behalf of, or with respect to, a person who is not a party to the tax \nproceeding. Third-party return information is return information, as \ndefined in section 6103(b)(2), with respect to a person who is not a \nparty to the tax proceeding. Documents that consist of returns or \nreturn information retain their character as section 6103-protected \nreturns or return information even if they do not identify the taxpayer, or \nif data that can identify the taxpayer is redacted. Church of Scientology \nv. United States, 484 U.S. 9 (1987). Copies of tax returns, or \ninformation derived from tax returns, retained by the taxpayer are not \nreturns or return information as defined in section 6103(b)(2); their \ncharacter as returns or return information is determined at the time the \nmaterial is first collected or received by the IRS. Copying a tax return, \nor return information, of one taxpayer for use in a proceeding pertaining \nto another taxpayer does not make it the return or return information of \nthe second taxpayer; the material remains the return or return \ninformation of the first taxpayer. \nExample: Employer A files a Form W-2, Wage and Tax Statement, \nwith respect to employee B. The Form W-2 relates to employee B’s \nincome tax liability or potential liability under the Code. Employer A \nis required to file the Form W-2 pursuant to section 6051 and is \nliable for penalties under section 6722 if the form is not filed. \nBecause the filed Form W-2 relates to liability or potential liability \nunder the Code of both A and B, it is the return of both A and B, \nand would not be a third-party return in a tax administration \nproceeding involving the tax liability of either A or B. \n",
" \n3-10\nExample: The IRS serves a summons on a bank “In the matter of \nTaxpayer C.” The information received from the bank is C’s return \ninformation, not the bank’s return information. Furthermore, if the \nrecords provided by the bank include records of account-holders \nother than C, the provided material is the return information of C. In \na tax proceeding involving the liability of C, the information received \nfrom the bank is not third-party return information. \nExample: The IRS serves a Tax Court subpoena on D in the case \nof E v. Comm’r. The information received from D is collected with \nregard to the liability or possible liability of E under the Code and is \nthus E’s return information. The information received from D is not \nthird-party return information with regard to the tax proceeding of E \nv. Comm’r.\nExample: In examining Taxpayer F, a copy of Taxpayer G’s Form \n1040 from IRS files is placed in Taxpayer F’s file. Taxpayer G’s \nreturn does not become Taxpayer F’s return information. Similarly, \nif a copy of the revenue agent’s report from Taxpayer G’s file is \nplaced in Taxpayer F’s file, G’s revenue agent’s report obtained \nfrom IRS files does not become F’s return information. Both G’s tax \nreturn and the revenue agent’s report prepared in G’s examination \nare third-party return information with respect to any tax proceeding \nrelating to F because the information was filed with or prepared by \nthe IRS with regard to the liability or possible liability of G (not F) \nunder the Code. (Deleting the identifying information from the \nreturn or the report does not change their character as the return \nand return information of G.) \nExample: Taxpayer H files a Form 1040. In examining taxpayer I, \nthe IRS summons from taxpayer H a copy of H’s Form 1040. The \ncopy of H’s return received in response to the summons in the \nmatter of I is I’s return information because it was collected with \nregard to the liability or possible liability of I under the Code. The \noriginal Form 1040 that H filed with the IRS remains H’s return. \n2. “Judicial proceeding pertaining to tax administration” means any \njudicial proceeding in which a person’s liability or collection of that \nliability under the internal revenue laws, related statutes, or tax \nconventions is determined, or any judicial proceeding arising out of or \nin connection with a determination, to which the United States, the IRS, \nthe Commissioner of Internal Revenue, an IRS or DOJ employee in his \nor her official capacity, or an IRS or DOJ employee in his or her \n",
" \n3-11\nindividual capacity where DOJ has agreed to represent or provide \nrepresentation to the employee, is a party.36\nExamples include, but are not limited to, suits for tax refunds filed in \ndistrict court or the United States Court of Federal Claims, any action \nfiled in the United States Tax Court, criminal prosecutions under the \ninternal revenue laws and related statutes, suits to foreclose tax liens, \nquiet title actions, summons enforcement lawsuits, and lawsuits for \nunauthorized collection actions or unauthorized disclosures. In \naddition, a lawsuit under the Freedom of Information Act (FOIA), 5 \nU.S.C. § 552, or the Privacy Act of 1974, 5 U.S.C. § 552a, involving \nreturns or return information, is a judicial proceeding pertaining to tax \nadministration for purposes of section 6103(h)(4). Additionally, \nlawsuits for alleged constitutional violations (so-called Bivens suits, \nafter Bivens v. Six Unknown Named Agents of Fed. Bureau of \nNarcotics, 403 U.S. 388 (1971), lawsuits under the Federal Tort Claims \nAct, 28 U.S.C. §§ 1346(b), 2671, and other lawsuits arising out of the \nIRS’s examination, collection, or other enforcement activities under the \nCode are judicial proceedings pertaining to tax administration. \n3. “Administrative proceeding pertaining to tax administration”\nmeans any procedure or other action arising out of or in connection \nwith a determination of a person’s liability or potential liability, or in \nconnection with the collection of that person’s liability, under the \ninternal revenue laws or related statutes and tax conventions to which \nthe United States is a party, and in which a person, whose liability or \npotential liability, or collection of that person’s liability, is or may be at \nissue, is given notice and an opportunity to present information to the \nIRS.\n(i) This term includes any procedural steps that are a part of a \nlarger action or procedure. \n(ii) Examples of administrative proceedings pertaining to tax \nadministration include, but are not limited to, examinations of \nreturns, administrative appeals, refund claims, requests for \nprivate letter rulings, requests for certificates of release or \ndischarge, administrative review of jeopardy and termination \nassessments, collection matters, requests for pre-filing \n36 Whether a statute is \"related\" to the internal revenue laws within the meaning of section 6103(b)(4) \ndepends on the nature and purpose of the statute and the facts and circumstances in which the \nstatute is being enforced or administered. These statutes cannot be considered related in all \nsituations but only when being enforced by IRS or DOJ personnel in matters arising out of or in \nconnection with the enforcement of Title 26. For a more complete discussion of related statute \ndeterminations, see generally Chapter 7.\n",
" \n3-12\nagreements, requests for interest abatement, requests for \ninnocent spouse relief, offers in compromise, trust fund \nrecovery penalty proceedings, collection due process \nproceedings, alternative dispute resolution proceedings, \nrequests for advance pricing agreements, criminal \ninvestigations and Federal Deposit Insurance Corporation \nreceivership proceedings where the IRS has a tax claim. \n(iii) The term does not include matters of general application, such \nas hearings on regulations or comments on forms. \nIn First W. Gov’t Sec, Inc.. v. United States, 578 F. Supp. 212, 217-18 \n(D. Colo. 1984), aff'd, 796 F.2d 356 (10th Cir. 1986), and in Nevins v. \nUnited States, No. 84-4147, 1987 WL 47316, at *3 (D. Kan. Aug. 26, \n1987), audits were found to be administrative tax proceedings for \npurposes of the statute. See also Abelein v. United States, 323 F.3d \n1210, 1214-15 (9th Cir. 2003) (by statute – I.R.C. § 6223 – TEFRA \naudits are administrative tax proceedings); Young v. Burks, 849 F. 2d \n610 (table cite), No. 84-1805, 1988 WL 62396, at *3 (6th Cir. June 21, \n1988); Niemela v. United States, No. Civ. 90-10110-WD, 1992 WL \n314040, at *3 (D. Mass. Aug. 4, 1992), aff'd in part on other grounds, \nvacated in part on other grounds, 995 F.2d 1061 (table cite), 1993 WL \n198171 (1st Cir. June 11, 1993), cert. denied, 510 U.S. 948 (1993); \nUngaro v. Desert Palace, Inc., No. CV S 88-838 RDF, 1989 WL \n199264, at *4 (D. Nev. Nov. 17, 1989) (criminal investigation and \nplacement of lien or levy is administrative tax proceeding). By contrast, \nin Mallas v. United States, 993 F.2d 1111, 1122 (4th Cir. 1993), an \naudit was held not to be an administrative proceeding described in \nsection 6103(h)(4). \n4. “Disclosure in the proceeding” means a disclosure of returns or \nreturn information made to a court (including a court reporter or \nstenographer), a mediator or arbitrator, or to a party to the proceeding \nunder the practices and procedures generally applicable to the \nproceeding, and subject to any rules governing the proceeding. This \nincludes disclosures in court during a trial, disclosures in formal or \ninformal discovery (including depositions), disclosures in settlement \nnegotiations, disclosures in mediation or arbitration, disclosures in an \napplication for a search warrant, or disclosures to the taxpayer in a 30-\nday letter issued in accordance with Treas. Reg. § 601.105(c)(2), a \nnotice of deficiency issued under section 6212, or a notice of decision \nor determination letter issued by an IRS Appeals office. For \ndisclosures when interviewing third-party witnesses, disclosures to \ninterpreters, or other disclosures to obtain information outside of the \nproceeding, see Treas. Reg. §§ 301.6103(k)(6)-1 (internal revenue \n",
" \n3-13\nemployees and TIGTA employees) and 301.6103(h)(2)-1(b)(1)(i), (ii) \n(Department of Justice officers and employees). \nC. I.R.C. § 6103(h)(4)(A) \nSection 6103(h)(4)(A) authorizes the disclosure of returns and return information \nin a tax proceeding if either the taxpayer is a party to the tax proceeding or the \ntax proceeding arose out of or in connection with determining the taxpayer’s \nliability or collection of taxes owed by the taxpayer under the Code. See United \nStates v. Mangan, 575 F.2d 32, 40 (2d Cir.), cert. denied, 439 U.S. 931 (1978); \nBowers v. J&M Disc. Towing, No. 06-299 JB/RHS, 2007 WL 967161, at *4-5 \n(D.N.M. Feb. 28, 2007). See also Plotkin v. United States, 465 Fed. App’x. 828, \n833-34 (11th Cir. 2012) (Where compliance with IRS-related conditions of \nprobation in a criminal tax case required the defendant to file and pay all taxes, \nthe court held that the IRS's disclosure of the defendant's return information to \nhis probation officers was authorized by section 6103(h)(4)(A) upon finding that \nthe probation revocation proceedings were an extension of the defendant's \ncriminal proceeding for tax crimes.) \nThe second clause of section 6103(h)(4)(A) (“or the proceeding arose out \nof . . .”) and similar language in section 6103(h)(2)(A) were added in 1978 \nbecause there was some uncertainty as to whether the item and transactional \nrelationships tests of section 6103(h)(4)(B) and (C) were broad enough to cover \ndisclosures in summons enforcement proceedings (in which the taxpayer was \nnot a party) and nominee and transferee liability cases. See H.R. REP. NO. 95-\n1800, at 293 (1978), 1978-3 C.B. (Vol. 1) 627. \nD. Disclosures of Third-Party Returns and Return Information – \nI.R.C. § 6103(h)(4)(B) and (C) \n1. I.R.C. § 6103(h)(4)(B) – The “Item” Test \nUnder section 6103(h)(4)(B), the returns and return information of a third \nparty may be disclosed if the treatment of an item on the third party’s \nreturn is directly related to the resolution of an issue in the tax proceeding. \nThe legislative history of the “item” test provides, as examples, that the \nreturns of subchapter S corporations, partnerships, estates, and trusts \nmay reflect the treatment of certain items which directly relate to the \nresolution of the taxpayer’s liability because of some relationship of the \ntaxpayer, such as shareholder, partner, or beneficiary, with the \ncorporation, partnership, estate, or trust. See S. REP. NO. 94-938, at 325 \n(1976), 1976-3 C.B. (Vol. 3) 363 (emphasis added). In these examples, \nthe item becomes directly related by operation of a provision of the Code \n(for example, the passthrough of the relevant items from a partnership to a \npartner). United States v. N. Trust Co., 210 F. Supp. 2d 955, 957 (N.D. Ill. \n",
" \n3-14\n2001) (item test “[d]oes not require any transactional nexus” because \n“[s]uch a requirement would make one of the other statutory exceptions, \npermitting disclosure if ‘return information directly relates to a transactional \nrelationship between a person who is a party to a proceeding and the \ntaxpayer,’ superfluous”) (quoting section 6103(h)(4)(C)). \nSection 6103(h)(4)(B) authorizes disclosure of third-party returns and \nreturn information where the item on the third party’s return or return \ninformation directly relates to the elements for defending or proving the \ncivil cause of action or crime at issue in the tax proceeding. For example, \ncriminal violations of unauthorized inspections of returns or return \ninformation by federal employees are brought by the government against \nthe employee under section 7213A. In order to prove one of the elements \nof unlawful inspection under section 7213A, it is necessary for the \ngovernment to disclose those items from the taxpayer’s return that were \nunlawfully inspected by the federal employee. Section 6103(h)(4)(B) \nauthorizes disclosure of the taxpayer’s return in the 7213A proceeding \nbecause the existence of the return is necessary to prove one of the \nelements of the crime of unlawful access under section 7213A, i.e., \nunlawful inspection of taxpayer’s return information. In this type of case, \nthe necessary nexus between the defendant and the third party is \nestablished when the defendant allegedly inspects the third party’s return \nor return information without authorization. \nChief Counsel Notice 2006-003 clarified the authority for disclosure of \nthird-party returns and return information in tax shelter matters. In the \ncourse of tax shelter investigations, the IRS frequently obtains return \ninformation of multiple investors in the same, or substantially similar, \npromotions. Such information may be pattern evidence that demonstrates \na consistent lack of a bona fide business purpose among the investors. \nPursuant to the item test under 6103(h)(4)(B), where the return \ninformation of multiple investors demonstrates such a pattern, that return \ninformation may be disclosed in a tax proceeding pertaining to any \ninvestor in that (or a substantially similar) promotion so long as the \ninformation directly relates to the resolution of an issue in the proceeding. \nFor these purposes, a shelter promotion is “substantially similar” if it is the \nsame transaction promoted by the same promoter. The same transaction \npromoted by a different promoter, and a different transaction promoted by \nthe same promoter, do not meet this definition of substantially similar. \nWhen considering disclosures of third-party return information as pattern \nevidence, consideration should also be given to other methods of proof \nthat do not involve disclosures of the third-party information, such as \nsummaries or compilations. If disclosure of the third-party information is \ndetermined to be necessary, Chief Counsel employees should disclose \nonly those portions of returns, or return information, as are directly related \n",
" \n3-15\nto resolving an issue in the proceeding. In accordance with Chief Counsel \nNotice 2002-028, which has been incorporated into CCDM 33.1.2, \nidentifying information of the third parties should be redacted. \nNote: The disclosure authority described in Chief Counsel Notice \n2006-003 (and the Q & A Chief Counsel Notice 2006-006) applies \nalso to disclosures to the Department of Justice pursuant to \n6103(h)(2)(B) and to further disclosures by the Department of \nJustice pursuant to 6103(h)(4)(B). \n2. I.R.C. § 6103(h)(4)(C) – The “Transactional Relationship” Test \nUnder section 6103(h)(4)(C), the returns or return information of a third \nparty may be disclosed if the third party’s returns or return information \ndirectly relates to a transactional relationship between the third party and \nthe taxpayer whose liability is at issue, and the third party’s returns or \nreturn information pertaining to that transaction directly affects the \nresolution of an issue in the tax administration proceeding. \nThe legislative history of the “transactional relationship” test provides, as \nan example, that the treatment of a third-party buyer’s return regarding his \npurchase of a business would directly relate to the seller’s tax liability \nresulting from the sale of the business. See S. REP. NO. 94-938, at 325 \n(1976), 1976-3 C.B. (Vol. 3) 363. In this example, the buyer’s treatment of \nthe purchase on his or her return would also satisfy the item test of section \n6103(h)(4)(B). This example demonstrates that both the item and \ntransactional relationship tests may be met under the same facts. On the \nother hand, the buyer’s treatment of business expenses incurred after the \nbuyer’s purchase of the business would not directly relate to the seller’s \ntreatment of the sale and would not satisfy either the item or transactional \nrelationship test. \nDesert Valley Painting & Drywall, Inc. v. United States, 829 F.Supp.2d \n931, 939 (D. Nev. 2011) (The court explained that the employment tax \ntreatment of a third party/company's workers appeared to directly relate to \nthe tax treatment of those workers by plaintiffs arising out of the \ncontractual relationship between the company and plaintiffs, and such \ntreatment directly related to the resolution of the tax issue in the case. \nTherefore, the court stated that section 6103(a) did not preclude the \ndiscovery of relevant return information relating to the tax treatment of the \ncompany's workers.) \n3. Key Factor \nThe key factor in determining whose return information is at issue is not \nwhose tax liability may be affected by the data, but rather whose tax \n",
" \n3-16\nliability is under investigation by the IRS for which the information is first \nobtained, received, or generated by the IRS. See Martin v. IRS, 857 F.2d \n722, 726 (10th Cir. 1988). \nNote: The mere fact that opposing counsel requests third-party \nreturns or return information does not create an issue to be \nresolved such that the requirements of 6103(h)(4)(B) or (C) are met \nto authorize disclosure to opposing counsel. Nevertheless, in \nappropriate circumstances, disclosure of such information may be \nmade in camera to allow the court to determine whether the \nmaterial meets the requirements for disclosure pursuant to either \n6103(h)(4)(B) or (C). \nE. Similarly Situated Taxpayers \nThe legislative history also provides that the returns and return information of \nmerely similarly situated but “unrelated” third-party taxpayers does not meet \neither the item or the transactional relationship test. Congress provided explicit \nexamples to illustrate this point: \nThe return reflecting the compensation paid to an individual by an \nemployer other than the taxpayer whose liability is at issue would not meet \neither the item or transaction tests . . . in a reasonable compensation \ncase. Thus, for example, the reflection on a corporate return of the \ncompensation paid its president would not represent an item the treatment \nof which was relevant to the liability of an unrelated corporation with \nrespect to the deduction it claims for the salary it paid its president. In \nsection 482 cases (involving the reallocation of profits and losses among \nrelated companies), where it is sometimes necessary to determine the \nprices paid for certain services and products at arms-length between \nunrelated companies, the return or return information of a company which \nwas unrelated to the taxpayer company would not be disclosable under \neither the item or transaction tests. \nS. REP. NO. 94-938, at 325-26 (1976), 1976-3 C.B. (Vol. 3) 363-64. \nIn In re United States, 669 F.3d 1333, 1338 (Fed. Cir. 2012), the Federal Circuit \nheld, in a case of first impression for the court, that the IRS cannot be required to \ndisclose return information of unrelated but similarly situated third party \ntaxpayers pursuant to the “item test” of section 6103(h)(4)(B). At issue was \nliability for excise taxes arising from use of certain chemicals in overseas \nmanufacturing of imported products; taxpayer sought information regarding the \nIRS contractor's testing for these chemicals in other taxpayers' similar products. \nIn its holding, the Federal Circuit explained that the treatment of an item on a \nthird party’s return is not directly related to the resolution of an issue as required \nby section 6103(h)(4)(B) when the only link between the third party and the \n",
" \n3-17\ntaxpayer is the treatment of a similar item on the return. The Federal Circuit \nnoted that the requirement that information be “directly related” is much narrower \nthan when a court assesses if evidence is relevant and that nothing in the statute \nsuggests that Congress intended the court to focus on the relevance of the return \ninformation to an issue in the proceeding. In reaching its decision, the Federal \nCircuit cited favorably Vons Cos. Inc. v. United States, 51 Fed. Cl. 1 (2001). \nIn Vons Cos. Inc. v. United States, 51 Fed. Cl. 1 (2001), a taxpayer sought, \nthrough discovery, unredacted technical advice memoranda (TAMs) and private \nletter rulings (PLRs) purportedly addressing the same legal issue raised in the \ntaxpayer’s litigation. The taxpayer argued that section 6103(h)(4)(B), the item \ntest, authorized disclosure of the information. The court, however, concluded \nthat section 6103(h)(4)(B) did not authorize disclosure of the requested records \nand rejected a construction of section 6103(h)(4) allowing for disclosure of return \ninformation of a third party solely on the basis that the party to the proceeding \nand the third party are, or were, similarly situated. The court pointed out that the \nlanguage establishing what is “relevant evidence” under the Federal Rules of \nEvidence is quite different and certainly much broader than the “directly related” \nlanguage in section 6103(h)(4)(B). See also 3K Partners v. Comm’r, 133 T.C. \n112 (2009) (petitioner denied discovery of tax opinion letters issued to other \ntaxpayers in similar transactions; letters were not relevant and were third-party \nreturn information protected from disclosure by section 6103). \nFor a further discussion of this issue, see generally OFFICE OF TAX POLICY, U.S. \nDEPARTMENT OF TREASURY, REPORT TO THE CONGRESS ON SCOPE AND USE OF \nTAXPAYER CONFIDENTIALITY AND DISCLOSURE PROVISIONS, VOL. I: STUDY OF \nGENERAL PROVISIONS 47-50 (2000). This report is available on the Internet at the \nDepartment of the Treasury web site: http://www.treasury.gov/resource-\ncenter/tax-policy/Documents/confide.pdf.\nF. Impeachment of Witnesses \nThe legislative history of section 6103 states explicitly that returns and return \ninformation of a third-party witness cannot be used to impeach the credibility of \nthe witness unless the item or transactional relationship test is otherwise met. \n“Only such part or parts of the third party’s tax return or return information which \nreflects the item or transaction will be subject to disclosure both before and in a \ntax proceeding. Thus, the return of a third-party witness could not be introduced \nin a tax proceeding for the purposes of discrediting that witness except on the \nitem and transaction grounds stated above.” S. REP. NO. 94-938, at 326 (1976), \n1976-3 C.B. (Vol. 3) at 364. See also Ryan v. United States, No. CIV. A. AW-97-\n3548, 1998 WL 919881, at *2-3 (D. Md. July 30, 1998) (purpose of prosecutor’s \nquestions to plaintiff/witness was not only to impeach, but also to provide \nevidence to jury in criminal trial of plaintiff/witness’s role in the illegal scheme, \nand, therefore, met the transactional relationship test), aff’d, 181 F.3d 90 (4th Cir. \n1999) (table cite). Note that if the witness is a party to the proceeding, then the \n",
" \n3-18\nwitness/party’s returns and return information may be disclosed in that \nproceeding pursuant to I.R.C. § 6103(h)(4)(A). \nG. Disclosure Limited to Necessary Part or Parts \nIn addition to prohibiting the disclosure of the returns and return information of \nunrelated third-party taxpayers, the legislative history explains that, even if the \ntaxpayer is related, transactionally or otherwise, the returns and return \ninformation that can be disclosed is strictly limited to only the returns and return \ninformation meeting the tests. S. REP. NO. 94-938, at 326 (1976), 1976-3 C.B. \n(Vol. 3) 364. See Guarantee Mut. Life Ins. Co. v. United States, Civ. No. 77-0-\n407, 1978 WL 4574, at *2 (D. Neb. Aug. 28, 1978). But see Conklin v. United \nStates, 61 F.3d 915 (table cite), No. 95-1013, 1995 WL 452498, at *1 (10th Cir. \nJuly 31, 1995) (allowing the Service to introduce the entire return under section \n6103(h)(4), even if only one part of the return was relevant, based on the plain \nlanguage of the statute). \nNote: In Chief Counsel Notice 2002-028, Counsel issued guidance on a \nrelated issue: when to disclose information identifying third parties in \nprivilege logs and other similar documents. Counsel should carefully \nconsider privilege logs and similar documents identifying third parties who \nmay be involved in transactions with the taxpayer in order to determine \nwhether the identity of the third party is essential to the matter before the \ncourt. If the identity of the third party is not essential, the identifying \ninformation should be redacted. In this way, disclosure of otherwise \nstatutorily authorized information regarding third parties is limited to only \nwhen the disclosure is essential to the matter before the court. Redaction \nmay be done in a manner that protects the third-party identities from public \nrelease while retaining the information for use by counsel and the court. \nH. I.R.C. § 6103(h)(4) Compared to I.R.C. § 6103(h)(2) \nNote that the section 6103(h)(4) test is slightly different from, and stricter than, \nthe test in section 6103(h)(2). Congress chose the more general \"is or may\" \nlanguage authorizing disclosures to DOJ pursuant to section 6103(h)(2). The \ndifference between subsections (h)(2) and (h)(4) is that under (h)(2), the returns \nand return information transferred to DOJ need only have the potential for \nmeeting the tests under (h)(4) for disclosure in a tax proceeding. See Davidson \nv. Brady, 559 F. Supp. 456, 462 (W.D. Mich. 1983), aff’d on other grounds, 732 \nF.2d 552 (6th Cir. 1984). Also note, however, that under section 6103(h)(4), the \n\"item\" and \"transactional relationship\" tests do not require that the third-party \nreturn information be necessary to, or dispositive of, the resolution of issues in \nthe tax proceeding, only that it directly affect resolution of any of those issues. \nSee First W. Gov’t Sec., Inc. v. United States, 578 F. Supp. 212, 217-18 (D. \nColo. 1984), aff’d, 796 F.2d 356 (10th Cir. 1986). \n",
" \n3-19\nI. Meaning of “Directly Related” \n1. Beresford v. United States, 123 F.R.D. 232, 234-35 (E.D. Mich. 1988) \n(select portions of third-party tax data that IRS had relied upon in its \nvaluation of taxpayer/party’s stock, which valuation was squarely at \nissue in the taxpayer/party’s tax refund suit, satisfied the requirements \nof section 6104(h)(4)(B)). \n2. United States v. Cathcart, No. C-07-4762 PJH (JCS), 2009 WL 482220, \nat *5 (N.D. Cal. Feb. 25, 2009) (defendant assessed promoter \npenalties under sections 6700 and 6701 sought information about \nabatement of understatement penalties with respect to investors in his \ntransaction as support for the defense of lack of scienter, found to meet \nsection 6103(h)(4)(B) requirements). \n3. Christoph v. United States, No. CV495-88, 1995 WL 847618, at *1 (S.D. \nGa. Dec. 12, 1995) (at issue in ex-husband's tax deficiency proceeding \nwas deductibility of a payment made by the taxpayer/ex-husband to his \nex-wife; court held that the third-party (ex-wife’s) return information \n(including ex-wife's tax protest letter, factual notes of the agent \nhandling the ex-wife's case, and portions of the ex-wife's tax return \nwhich demonstrate the extent to which she did or did not treat the \npayment at issue as alimony income) showing her treatment, for tax \npurposes, of the payment in question directly related to the deductibility \nissue in the ex-husband’s tax proceeding), vacated on other grounds,\n1996 WL 182130 (S.D. Ga. Jan. 30, 1996). \n4. Guarantee Mut. Life Ins. Co. v. United States, Civ. No. 77-0-407, 1978 \nWL 4574, at *1-2 (D. Neb. Aug. 28, 1978) (where the issue centers on \nan individual's status as employee or independent contractor, portions \nof his return indicating that status may be disclosed in the employer’s \nproceeding). \n5. Lebaron v. United States, 794 F. Supp. 947, 950-52 (C.D. Cal. 1992) \n(third party/parishioner’s tax treatment as business expense deductions \nof payments she made to her church was directly related to resolution \nof an issue in a summons enforcement tax proceeding to which the \nchurch was a party, i.e., whether information sought in the summons \nwas necessary to IRS’s investigation of the church’s tax exempt \nstatus). \n6. United States v. N. Trust Co., 210 F. Supp. 2d 955, 958-57 (N.D. Ill. \n2001) (in an action to recover tax refunds, the court found that section \n6103(h)(4)(B) authorized disclosure of third parties’ tax returns showing \nwhether the third parties claimed ownership of tax advantaged mutual \nfund shares (which defendant had ‘loaned’ to the third parties, who \n",
" \n3-20\nsubsequently sold the shares) with respect to which defendant had \nclaimed ownership-based tax refunds). \n7. Shell Petroleum, Inc. v. United States, 46 Fed. Cl. 719, 722-25 (2000) \n(In refund suit based on the section 29 credit for production of oil from \ntar sands, the court granted plaintiff’s motion for in camera review of \nthe section 43 certificates filed by third-party taxpayers, which would \nreveal the oil production methods used by the third parties. Since one \nrequirement for the section 29 credit is that the technology for which \nthe credit is claimed was not widely available it, Shell wanted the \ncertificates to inferentially support its assertion that the technology it \nused was not used by others. The court, interpreting \"directly related\" \nas a concept akin to admissibility, held that plaintiff showed that the \ninformation may fall within section 6103(h)(4)(B)). But see In re United \nStates, supra.\n8. Tavery v. United States, 32 F.3d 1423, 1429 (10th Cir. 1994) (third \nparty/wife’s tax information directly related to resolution of the issue of \nher husband’s eligibility for court-appointed counsel in a judicial tax \nproceeding to which she was not a party). \n9. Texture Source, Inc. v. U.S., --- F.Supp.2d ---, 2012 WL 947059, at *6 \n(D. Nev. Feb. 6, 2012) (in a case involving the employment status of \nworkers, court held that, in light of the contractual relationship between \nthird party and plaintiffs, return information relating to employment tax \ntreatment of third party's workers appeared to directly relate to the tax \ntreatment of plaintiffs’ workers, and thus consistent with section \n6103(h)(4)(C), was directly related to the resolution of the issue in the \nproceeding) \n10. United States v. Tsanas, 572 F.2d 340, 348 (2d Cir. 1978) (court's \nrefusal to subpoena corporate return that would not directly affect \nresolution of individual’s tax evasion case, “as required by the recently \nenacted 26 U.S.C. s 6103(h)(4)(B) or (C),” was not incorrect). \nJ. Additional Cases Involving The \"Item\" and \"Transactional Relationship\" \nTests \n1. Balanced Fin. Mgmt. v. Fay, 662 F. Supp. 100, 105-06 (D. Utah 1987) \n(information released in letters to tax shelter investors was not \nconsidered promoter/plaintiff’s return information; regardless, \ninvestor/taxpayers were properly notified that their claims for \ndeductions or credits as they related to the tax shelter would be \ndisallowed). \n",
" \n3-21\n2. Confidential Informant 92-95-932X v. United States, 45 Fed. Cl. 556, \n559 (2000) (in suit by confidential informant against United States to \nenforce informant’s contract with United States, limited third-party tax \ninformation that would resolve issue of award amount owed to \nconfidential informant may be disclosed to DOJ under section \n6103(h)(2)(B) and in the tax administration proceeding under section \n6103(h)(4)(B)). \n3. Davidson v. Brady, 559 F. Supp. 456, 460-62 (W.D. Mich. 1983), aff’d \non other grounds, 732 F.2d 552 (6th Cir. 1984) (in the case of business \ndealings between taxpayers where the financial rights and obligations \nof one taxpayer related to the financial rights and obligations of the \nother taxpayer, disclosure made during a separate judicial tax \nproceeding of return information was authorized under section \n6103(h)(4)(C)). \n4. Estate of Stein v. United States, Civ. No. 79-0-198, 1981 WL 1807, at \n*1-2 (D. Neb. Jan. 16, 1981) (to establish whether a gift was made in \ncontemplation of death, the court ruled that the return information \nrelated to the donor/donee relationship and disclosure to the \nDepartment of Justice was authorized under section 6103(h)(2)(C); the \ncourt declined to determine, at that time, whether redisclosure by the \nDepartment of Justice was authorized under section 6103(h)(4)(C)). \n5. First W. Gov’t Sec., Inc. v. United States, 578 F. Supp. 212, 217-18 (D. \nColo. 1984), aff’d, 796 F.2d 356 (10th Cir. 1986) (to the extent the \nRevenue Agent Report (RAR) contained a dealer-broker’s return \ninformation, his customer-investors were considered parties in the tax \nadministration proceeding, and disclosure that certain losses which the \ninvestors claimed through the dealer-broker had been denied, was \nauthorized under section 6103(h)(4)(C)). \n6. Guarantee Mut. Life Ins. Co. v. United States, Civ. No. 77-0-407, 1978 \nWL 4574, at *2 (D. Neb. Aug. 28, 1978) (in employer/employee \nsituation, disclosure of the employee’s return information to establish \nthe nature of the employment relationship was authorized as it directly \naffected resolution of the issue of whether the employer/plaintiff was \nsubject to the withholding requirements). \n7. Heimark v. United States, 14 Cl. Ct. 643, 647-49 (1988) (in a trust fund \nrecovery penalty case, only return and return information that related to \nthe transactional relationship between the plaintiff and the corporation \nfor which the plaintiff failed to pay over withholding taxes was subject to \ndisclosure under section 6103(h)(4)(C); the court denied the plaintiff’s \nproduction requests for the return information of taxpayers not involved \nin the litigation proceedings). \n",
" \n3-22\n8. Hostetler v. Yungbluth, No. 77-1929-Civ-NCR, 1977 WL 1297, at *1 \n(S.D. Fla. Sept. 30, 1977) (disclosure of taxpayer’s return information \nto Department of Justice authorized under section 6103(h)(2)(C) in \nsummons enforcement case even though taxpayer was not entitled to \nbe a party to the proceedings). Hostetler was decided under the \noriginal version of section 6103(h)(2), in which section 6103(h)(2)(A) \nonly authorized disclosure of returns and return information of a \ntaxpayer who “is or may be” a party to the proceeding. The court relied \non the transactional relationship test of section 6103(h)(2)(C) as \nauthorization for the disclosure. See part V.C., above, regarding \nsection 6103(h)(4)(A). \n9. Khan v. United States ex rel. Internal Revenue Serv., 548 F.3d 549 \n(7th Cir. 2008), rev’g, 537 F. Supp. 2d 944 (N.D. Ill. 2008) (district \ncourt’s grant of petition to quash summons reversed per Treas. Reg. \n§ 301.7602-1(c)(1). Interplay between sections 6103(h)(4) and 7602 \n(pertaining to referrals to DOJ relating to “any person”)). \n10. Mallas v. United States, 993 F.2d 1111, 1122 (4th Cir. 1993) (Revenue \nAgent Reports (RARs) that included outdated information about \npromoters' shelter-related convictions for tax evasion sent to tax shelter \ninvestors found to be unauthorized disclosures under section \n6103(h)(4)(C)). \n11. Mid-South Music Corp. v. United States, 818 F.2d 536, 538-39 (6th Cir. \n1987) (letters to tax shelter investors stating disallowed deductions are \nreturn information of the investors and were properly disclosed to the \ninvestors pursuant to 6103(h)(4)(A)). \n12. Morgan v. United States, Civ. Action No. 91-M-379, 1991 U.S. Dist. \nLEXIS 12882, at *2 (D. Colo. Aug. 30, 1991) (information on payments \nmade to the plaintiff by an exempt organization released in a Revenue \nAgent Report was not considered return information; however, the \ncourt found disclosure authorized based on evidence of a transactional \nrelationship between plaintiff and the taxpayer under examination), \naff'd, 953 F.2d 1391 (table cite), 1992 WL 14934 (10th Cir. Jan. 30, \n1992). \n13. Nevins v. United States, No. 84-4147, 1987 WL 47316, at *3 (D. Kan. \nAug. 26, 1987) (Nevins and Rinke were arrested together by DEA for \nattempting to purchase marijuana, a simultaneous search of Rinke’s \nhome produced a ledger recording drug sales by the two; IRS \nconducted a civil investigation of Rinke and eventually issued a \nRevenue Agent Report containing references to Nevins’ drug sales \nactivities and arrest. Assuming, without discussion, that the \n",
" \n3-23\ninformation was Nevins’ return information, the court determined that \nthe disclosure to Rinke was authorized under section 6103(h)(4)(B) \nand (C)). \n14. Solargistic Corp. v. United States, No. 87 C 9460, 1989 WL 134505, at \n*1-5 (N.D. Ill. Oct. 11, 1989) (letters to tax shelter investors notified \nthem that their expected deductions would be disallowed in light of their \ninvestments in the plaintiff’s tax shelter promotion; court held that the \nIRS review of the tax shelter constituted an administrative proceeding \nand the tax liabilities of the investors were affected by the IRS’s \nevaluation of the validity of the tax shelter; disclosure was authorized \nunder section 6103(h)(4)(C)), aff'd, 921 F.2d 729 (7th Cir. 1991). \nK. Special Rule for Disclosure in Federal Criminal Tax Cases \nSection 6103(h)(4)(D) contains an additional basis for disclosure in federal \ncriminal tax cases. Under this provision, a court can order disclosure of third- \nparty tax data pursuant to 18 U.S.C. § 3500 or Fed. R. Crim. P. 16 after giving \ndue consideration to congressional policy favoring the confidentiality of returns \nand return information. \nNote: The impairment determination in section 6103(h)(4) does not apply \nin these circumstances. See Paragraph M, below. \nNote: Exculpatory evidence the disclosure of which is required as a \nconstitutional matter is not subject to the statutory restrictions of section \n6103(h)(4). Nevertheless, care should be exercised to disclose on this \nbasis only the returns or return information (or portions thereof) that meet \nthe constitutional requirements. Submit the material for in camera review \nif there is any question. \nFor discussions of the applicability of section 6103(h)(4)(D), see U.S. v. Prokop,\nNo. 2:09-cr-00022, 2012 WL 475543, at *4 (D.Nev. Feb. 14, 2012) (finding that \nthe standards described in Rule 16 had been met, the court ordered disclosure, \npursuant to section 6103(h)(4)(D), of third party audit files, including no-change \naudits, of taxpayers who purchased defendant's alleged fraudulent tax product. \nThe court reasoned that the government had knowledge of and access to the \naudit files and the audit files were material to preparing defense. The court also \nconcluded that the audit files were discoverable under Brady v. Maryland, 373 \nU.S. 83 (1963)); United States v. Fuentes-Montijo, 74 F.3d 1247 (table cite), Nos. \n94-10453, 94-10469, 1996 WL 21616, at *4 (9th Cir. Jan. 22, 1996) (in appeal \nfrom the district court’s conviction of defendant for the possession of and intent to \ndistribute cocaine, affirmed quashing of defendant's subpoena to IRS for \nconfidential tax records of informants; requested information was of marginal \nrelevance and did not outweigh the congressional policy favoring nondisclosure); \nUnited States v. Lloyd, 992 F.2d 348, 350-52 (D.C. Cir. 1993) (circuit court \n",
" \n3-24\nremanded denial of defendant’s request for a court order to compel production of \ntaxpayer returns because district court decision was based on an overly-narrow \nconception of the materiality requirement under section 6103(h)(4)(D)); United \nStates v. Dawes, Nos. 88-10002-01, 90-10036-01, 88-10002-02, 1990 WL \n171074, at *2-3 (D. Kan. Oct. 15, 1990) (section 6103(h)(4)(D) does not address \na prosecutor’s duty under Brady to disclose exculpatory evidence); United States \nv. Recognition Equip., 720 F. Supp. 13, 14 (D.D.C. 1989) (court relied on the \ndetermination in Robertson that section 6103(h)(4) presupposes that the \nspecified Federal Prosecutor is already in possession of the return information \nbefore disclosure can be authorized under subsection (h)(4)(D) to vacate its \nprevious Order for Disclosure); United States v. Robertson, 634 F. Supp. 1020, \n1026-29 (E.D. Cal. 1986) (IRS did not disclose all the requested return \ninformation to the AUSA and thus, section 6103(h)(4)(D) does not require the \ncourt to order disclosure to defendant pursuant to Rule 16), aff'd mem., 815 F.2d \n714 (9th Cir. 1987); but see United States v. Smith, No. 4:06-CR-00333 GTE, \n2007 WL 4166219, at *1 (E.D. Ark. Nov. 20, 2007) (court ordered disclosure to \ndefendant of complete third-party examination files based on defendant’s \nassertion they potentially contain Brady material; court neither reviewed the \nmaterial in camera nor determined that it actually contained Brady material.). \nL. Freedom of Information Act Lawsuits \nSection 6103(h)(4) does not authorize disclosure of third-party returns or return \ninformation to a plaintiff in a lawsuit brought under the FOIA. Chamberlain v. \nKurtz, 589 F.2d 827, 837-38 (5th Cir.), cert. denied, 444 U.S. 842 (1979). Cf.\nAloe Vera of Am., Inc. v. United States, No. CV99-1794PHXJAT, 2002 WL \n1484463, at *2 (D. Ariz. May 10, 2002) (same rationale for discovery disclosures \nof returns and return information of unrelated third parties to plaintiffs in an \nunauthorized disclosure lawsuit) (subsequent history omitted). Third-party \nreturns and return information are exempt from disclosure under exemption 3 of \nthe FOIA, 5 U.S.C. § 552(b)(3), in conjunction with section 6103(a). Access to \nthird-party returns and return information by a FOIA requester is available if the \nprovisions of section 6103(c) or 6103(e) have been met, and if no FOIA \nexemptions apply. See generally Chapter 9 for further discussion on disclosure \nof returns and return information in response to a FOIA request. \nM. Confidential Informants and Impairment Determination \nThe government is not authorized to disclose information in a tax administration \nproceeding under section 6103(h)(4)(A), (B), or (C) if “the Secretary determines” \ndisclosure would identify a confidential informant or seriously impair a civil or \ncriminal tax investigation (the \"impairment determination\"). I.R.C. § 6103(h)(4); \nsee Confidential Informant 92-95-932X v. United States, 45 Fed. Cl. 556, 556-59 \n(2000) (identity of confidential informant protected from disclosure to taxpayer in \ncontext of suit by the confidential informant against United States to enforce \ninformant’s contract with United States governing payment of award in exchange \n",
" \n3-25\nfor information leading to collection of taxes from taxpayer). For a listing of \npersons who have the authority to make the section 6103(h)(4) impairment \ndetermination, see I.R.S. Deleg. Order 11-2 (Rev. 17), IRM 1.2.49.3, Exhibit \n1.2.49-2, available at\nhttp://publish.no.irs.gov/cat12.cgi?request=CAT1&catnum=39618.\nVI. I.R.C. § 6103(h) AND I.R.C. § 6103(i) INTERPLAY\nUnder section 6103(h), returns and return information disclosed to DOJ attorneys may \nbe used and subsequently disclosed by those attorneys only for use in proceedings \npertaining to tax administration. DOJ attorneys seeking returns and return information \nfor federal nontax criminal purposes must follow the procedures outlined in section \n6103(i). See United States v. Mangan, 575 F.2d 32, 37-41 (2d Cir. 1978); United States \nv. Recognition Equip., 720 F. Supp. 13, 14 (D.D.C. 1989). For a discussion of section \n6103(i), see generally Chapter 5. \nAn exception to this rule is found at Treas. Reg. § 301.6103(h)(2)-1. This regulation \nanticipates situations where a referred criminal tax investigation may involve tax aspects \nof transactions which are also criminal violations of nontax laws, and that the very \nimpetus for the commission of the tax crime is often the commission of nontax criminal \noffenses. The regulation, therefore, provides for disclosure of returns and return \ninformation in a joint criminal tax/nontax investigation if the nontax criminal aspects arise \nout of the particular facts and circumstances giving rise to the tax administration portion of \nthe case (e.g., a joint IRS/FBI investigation involving tax and bankruptcy fraud). \nThe regulation contains a number of specific requirements. First, the nontax violation \nmust involve the \"enforcement of a specific federal criminal statute other than one\" \ninvolving tax administration. Second, the tax portion of the investigation must have \nbeen duly authorized by the Tax Division of DOJ at the request of the Secretary of the \nTreasury. Finally, the regulation requires that if the tax administration portion is \nterminated, DOJ cannot use returns or taxpayer return information on the nontax portion \nof the matter without first obtaining a court order as required by section 6103(i)(1). For \na further discussion of Treas. Reg. § 301.6103(h)(2)-1, see IRM 11.3.22.14.2. \nVII. DISCLOSURES TO THE INTERNAL REVENUE SERVICE OVERSIGHT BOARD \nSection 6103(h)(6) addresses access to returns and return information by members of \nthe Internal Revenue Service Oversight Board, which was established pursuant to \nsection 1101 of the Internal Revenue Service Restructuring and Reform Act of 1998 \n(RRA 98), Pub. L. No. 105-206, 112 Stat. 685, 691-97. This Board is composed of the \nSecretary of the Treasury (or the Deputy Secretary if the Secretary so designates), the \nCommissioner of Internal Revenue, and seven members (six individuals who are not \notherwise government employees and one individual who is a full-time government \nemployee or representative of employees) who are appointed by the President with \nSenate confirmation. The Board oversees the Service in its administration, \nmanagement, conduct, direction, supervision, execution, and application of the tax laws. \n",
" \n3-26\nUnder section 6103(h)(6), as a general rule, no returns or return information may be \ndisclosed to any Presidential appointee to the Board, or to employees or detailees of the \nBoard by reason of their service with the Board. The sole exception to this rule is when \nthe Commissioner of Internal Revenue or the Treasury Inspector General for Tax \nAdministration: (1) prepares the report or other matter for the Oversight Board to assist \nit in carrying out its duties; and (2) determines that certain returns or return information \nneed to be included in the report or other matter to enable the Board to carry out its \nduties. \nSection 6103(h)(6) also provides that Service officers and employees must report to the \nSecretary of the Treasury, the Treasury Inspector General for Tax Administration, and \nthe Joint Committee on Taxation any request they receive from any presidential \nappointee to the Board, or from any employee or detailee of the Board, for returns and \nreturn information that is not authorized to be disclosed under section 6103(h)(6), or any \ncontact they receive from any individual on the Board relating to a specific taxpayer. \n",
" \n4-1\nCHAPTER 4 \nTAX ADMINISTRATION INVESTIGATIVE DISCLOSURES AND \nDISCLOSURES TO CONTRACTORS \nI.R.C. § 6103(k)(6) AND (n) \nI. I.R.C. § 6103(k)(6): INVESTIGATIVE DISCLOSURES FOR TAX ADMINISTRATION \nPURPOSES\nA. In General\nIRS, Chief Counsel, and Office of the Inspector General for Tax Administration \n(TIGTA) officers and employees are specifically authorized by section 6103(k)(6) \nand Treas. Reg. § 301.6103(k)(6)-1 to disclose return information to the extent \nthat disclosure is necessary to obtain information which is not otherwise \nreasonably available with respect to the correct determination of tax, liability for \ntax, or the amount to be collected, or with respect to the enforcement of any \nother provision of the Code. \nThus, IRS, Chief Counsel and TIGTA officers and employees may disclose \nreturn information, of any taxpayer, to the extent necessary to obtain information \nrelating to their official duties or to accomplish properly any activity connected \nwith those official duties relating to any examination, administrative appeal, \ncollection activity, administrative, civil or criminal investigation, enforcement \nactivity, ruling, negotiated agreement, prefiling activity, or other proceeding or \noffense under the internal revenue laws or related statutes, or in preparation for \nany proceeding described in section 6103(h)(2) (or investigation which may \nresult in such a proceeding). Treas. Reg. § 301.6103(k)(6)-1(a)(1). \nThe Treasury regulation lists the types of activities covered by section 6103(k)(6) \nas including (but not limited to): \n1. Establishing or verifying the correctness or completeness of any return \nor return information; \n2. Determining the responsibility for filing a return, for making a return if \nnone has been made, or for performing any acts as may be required by \nlaw concerning those matters; \n3. Establishing or verifying the liability (or possible liability) of any person, \nor the liability (or possible liability) at law or in equity of any transferee \nor fiduciary of any person, for any tax, penalty, interest, fine, forfeiture, \nor other imposition or offense under the internal revenue laws or \nrelated statutes or the amount thereof for collection; \n4. Establishing or verifying misconduct (or possible misconduct) or other \nactivity proscribed by the internal revenue laws or related statutes; \n",
" \n4-2\n5. Obtaining the services of persons having special knowledge or \ntechnical skills (such as, but not limited to, knowledge of particular facts \nand circumstances relevant to a correct determination of a liability \ndescribed in paragraph 3, above, or skills relating to handwriting \nanalysis, photographic development, sound recording enhancement, or \nvoice identification) or having recognized expertise in matters involving \nthe valuation of property if relevant to proper performance of official \nduties described in Treas. Reg. § 301.6103(k)(6)-1; \n6. Establishing or verifying the financial status or condition and location of \nthe taxpayer against whom collection activity is or may be directed, to \nlocate assets in which the taxpayer has an interest, to ascertain the \namount of any liability described in paragraph 3, above, for collection, \nor otherwise to apply the provisions of the Code relating to \nestablishment of liens against such assets, or levy, seizure, or sale on \nor of the assets to satisfy any such liability; \n7. Preparing for any proceeding described in section 6103(h)(2) or \nconducting an investigation which may result in such a proceeding; or \n8. Obtaining, verifying, or establishing information concerned with making \ndeterminations regarding a taxpayer’s liability under the Code, \nincluding, but not limited to, the administrative appeals process and \nany ruling, negotiated agreement, or prefiling process. \nTreas. Reg. § 301.6103(k)(6)-1(a)(1). \nB. Definitions\n1. “Disclosure of return information to the extent necessary” means a \ndisclosure of return information which an internal revenue or TIGTA \nemployee, based on the facts and circumstances at the time of the \ndisclosure, reasonably believes is necessary to obtain information to \nperform properly the employee’s official duties, or to accomplish \nproperly the activities connected with carrying out those official duties. \nTreas. Reg. § 301.6103(k)(6)-1(c)(1). \nNote: The term “necessary” in this context does not mean essential \nor indispensable, but rather appropriate and helpful in obtaining the \ninformation sought. “Necessary” in this context does not refer to \nthe necessity of conducting an investigation or the appropriateness \nof the means or methods chosen to conduct the investigation. \nSection 6103(k)(6) does not limit or restrict internal revenue or \nTIGTA officers and employees with respect to the decision to \ninitiate or how to conduct an investigation. See Treas. Reg. \n§ 301.6103(k)(6)-1(c)(1), and examples therein. \n",
" \n4-3\nDisclosures under section 6103(k)(6) may not be made indiscriminately \nor solely for the benefit of the recipient or as part of a negotiated quid \npro quo arrangement. Treas. Reg. § 301.6103(k)(6)-1(c)(1). For \nexample, section 6103(k)(6) does not authorize the disclosure of \nevidence of criminal misconduct compiled by IRS employees to state or \nlocal law enforcement agencies, either in return for information from the \nstate or local law enforcement agencies, or simply to assist the state or \nlocal law enforcement authorities in the investigation or prosecution of \ncriminal activity. \n2. “Disclosure of return information to accomplish properly an \nactivity connected with official duties” means a disclosure of return \ninformation to carry out a function associated with official duties \ngenerally consistent with established practices and procedures. Treas. \nReg. § 301.6103(k)(6)-1(c)(2). \n3. “Information not otherwise reasonably available“ means information \nthat an internal revenue or TIGTA employee reasonably believes, \nunder the facts and circumstances at the time of a disclosure, cannot \nbe obtained in a sufficiently accurate or probative form, or in a timely \nmanner, and without impairing the proper performance of the \nemployee’s official duties, without making the disclosure. Treas. Reg. \n§ 301.6103(k)(6)-1(c)(3). \nThis definition does not require or create the presumption or \nexpectation that an internal revenue or TIGTA employee must seek \ninformation from a taxpayer or authorized representative prior to \ncontacting a third-party witness in an investigation. \nNote: An internal revenue or TIGTA employee may make a \ndisclosure to a third-party witness to corroborate information \nprovided by a taxpayer. Treas. Reg. § 301.6103(k)(6)-1(c)(3). \n4. “Internal revenue employee“ means, for purposes of section \n6103(k)(6), an officer or employee of the IRS or Office of Chief Counsel \nfor the IRS, or an officer or employee of a federal agency responsible \nfor administering and enforcing the taxes under Chapters 32 (Part III of \nSubchapter D), 51, 52, or 53 of the Code, or investigating tax refund \ncheck fraud under 18 U.S.C. § 510. Treas. Reg. § 301.6103(k)(6)-\n1(c)(4). \n",
" \n4-4\nC. Liens and Levies\nSection 6103(k)(6) permits the disclosure of return information by an IRS \nemployee \"in connection with . . . official duties relating to any . . . collection \nactivity . . . . \" \nAs the case law evolved, some courts distinguished between those cases where \nthe underlying lien or levy was valid and those where it was not. In those cases \nin which the courts held the disclosures improper, the court reasoned that if the \nunderlying lien or levy was invalid, the disclosures made in attempting to collect \nthe tax were also invalid. The IRS’s position is that the validity of the underlying \nlien or levy is not relevant to the disclosure of return information pursuant to \nsection 6103(k)(6) to further the IRS's collection efforts. See Treas. Reg. \n§ 301.6103(k)(6)-1(c)(2) (section 6103(k)(6) permits “a disclosure of return \ninformation to carry out a function associated with official duties generally \nconsistent with established practices and procedures”). Accordingly, the validity \nof the lien does not affect the propriety of the disclosure. \nThe Courts of Appeals for the Third, Fifth, Ninth, and Tenth Circuits have \nadopted the IRS's position. However, the Eighth Circuit in Rorex v. Traynor, 771 \nF.2d 383, 386 (8th Cir. 1985), has ruled that if the underlying lien is invalid, the \ndisclosures made in the lien violate section 6103(a). Rorex was decided before \nCongress enacted section 7433, which created a specific remedy for reckless \nand/or intentional improper collection activity;37 the other circuit court cases were \ndecided after the enactment of section 7433. For more information, see\ngenerally Chapter 1, Part II. \nSometimes the return information that the plaintiff alleges to have been \nimproperly disclosed is already in the public record. The making public of this \nreturn information can occur in several ways. For example, the return \ninformation may appear in a notice of tax lien filed with the county recorder, or it \nmay appear in the posted notice of seizure or public sale, or entered as evidence \nduring a judicial tax proceeding. The IRS’s position is that once return \ninformation is properly placed in the public record in a tax administration \nproceeding, it is no longer confidential and section 6103 no longer applies. \nThere is a split of authority among the courts as to this “public record exception.” \nThe courts that have ruled otherwise hold that the only exceptions to the \n37 In 1998, as part of the IRS Restructuring and Reform Act, Pub. L. No. 105-206, § 3102(a)(1)(A), \nCongress amended section 7433 to include recovery for negligent unauthorized collection activities. \nPrior to the 1998 amendment, as the Third Circuit had noted in Venen v. United States, 38 F.3d 100, \n105-07 (3d Cir. 1994), Congress had addressed reckless or intentional improper collection activity \nwhen it enacted section 7433. At the time Venen was rendered, Congress had not addressed merely \nnegligent collection activity and the court was not going to permit the plaintiff to seek redress for such \nactivity under section 7431. The amendment buttresses the IRS’s position that section 7433, not \nsection 7431, is intended to address challenges to the validity of liens or levies. \n",
" \n4-5\nconfidentiality of return information are those explicitly stated in Title 26, and that \nthere is no statutory exception in section 6103 for return information that has \nbeen made a matter of public record. See generally Chapter 2 for a further \ndiscussion of the public record issue. \nLiens and Levies Case Law \n1. Chisum v. United States, No. CIV 90-0549 PHX CAM, 1991 WL \n322976, at *2-3 (D. Ariz. Dec. 10, 1991) (the IRS was authorized \npursuant to section 6103(k)(6) to disclose return information by filing a \nnotice of federal tax lien in the county recorder's office, by mailing a \nnotice of sealed bid sale, and by publishing a notice of sealed bid sale \nin several newspapers, because the disclosures were attempts to \ncollect an alleged tax deficiency), aff'd, 19 F.3d 26 (table cite), 1994 \nWL 19020 (9th Cir. Jan. 24, 1994). \n2. Coplin v. United States, No. L89-30027 CA, 1991 WL 22804, at *4 \n(W.D. Mich. Jan. 3, 1991) (information disclosed by the establishment \nof a lien is not wrongfully disclosed information; disclosure of the same \ninformation in an attempt to satisfy the lien is not a wrongful disclosure, \neither), aff'd, 952 F.2d 403 (table cite), 1991 WL 270831 (6th Cir. Dec. \n17, 1991) (per curiam). \n3. Cuda v. United States, No. 5:90-CV-17, 1991 WL 80842, at *3 (W.D. \nMich. Apr. 2, 1991) (section 6103(k)(6) authorizes disclosure of return \ninformation to the extent necessary to obtain information not otherwise \nreadily available to collect outstanding tax liability; court determined the \ndisclosures were necessary because the only way to discover whether \nindividuals had assets belonging to the plaintiffs was to serve them with \nnotices of levy), aff’d, 953 F.3d 644 (table cite), 1992 WL 16923 (6th \nCir. Feb. 3, 1992). \n4. Egbert v. United States, 752 F. Supp. 1010, 1016-17 (D. Wyo. 1990) \n(section 6103(k)(6) provides for the disclosure of return information for \nthe purposes of tax administration; however, the court did not \ndetermine whether the plaintiff was entitled to recovery pursuant to \nsection 6103 because the court determined it lacked jurisdiction and, \ntherefore, dismissed the wrongful disclosure claim), aff'd, 940 F.2d \n1539 (table cite), 1991 WL 150859 (10th Cir. Aug. 7, 1991). \n5. Elias v. United States, No. CV 90-0432-WJR(JRX), 1990 WL 264722, \nat *3-5 (C.D. Cal. Dec. 21, 1990) (after comprehensive discussion of \nsection 6103(k)(6) case law and congressional intent, court found that \ndisclosures contained in summonses, liens, and levies were authorized \nby section 6103(k)(6)), aff'd, 974 F.2d 1341 (table cite), 1992 WL \n214538 (9th Cir. Sept. 2, 1992). \n",
" \n4-6\n6. Farr v. United States, 990 F.2d 451, 455 (9th Cir. 1993) (the \ninformation disclosed in the notice of levy was necessary to the IRS's \ncollection activity, and thus fell squarely within the exemption under \nsection 6103(k)(6)). \n7. Glass v. United States, 480 F. Supp. 2d 162, 165-66 (D.D.C. 2007) \n(citing Koerner v. United States, see paragraph 9, below, the court \nnoted that “the filing of a notice of lien is patently a tax collection \nactivity,” and thus disclosure was lawful under section 6103(k)(6)). \n8. Hodges v. United States, No. 11-13981, 2012 WL 1867293, at *3 (E.D. \nMich. May 22, 2012) (even where levies at issue are procedurally \ndefective, any disclosures made in connection with those levies do not \nviolate I.R.C. § 6103). \n9. Huff v. United States, 10 F.3d 1440, 1447 (9th Cir. 1993) (citing Farr v. \nUnited States, above, the court held that levy notices fall squarely \nwithin the exemption under section 6103(k)(6) despite the possible \nprocedural lapses involving the actual levy). \n10. Koerner v. United States, 471 F. Supp. 2d 125, 127-28 (D.D.C. 2007) \n(notice of federal tax lien authorized by section 6103(k)(6) regulations \nbecause it is necessary to tax collection activity; section 7433 provides \nthe exclusive remedy for recovering damages from IRS collection \nactivity, including damages which resulted from unauthorized \ndisclosures that occurred in connection with collection efforts; court \nlacks jurisdiction to hear claim pursuant to section 7431). \n11 Lutz v. United States, 919 F.2d 738 (table cite), No. 90-5226, 1990 WL \n193066, at *3-4 n.2 (6th Cir. Dec. 6, 1990) (per curiam) (plaintiff alleged \nthat the IRS made unauthorized disclosures of the plaintiff's name, tax \nperiod, and type and amount of taxes in serving a notice of levy on the \nplaintiff's employer and a notice of federal tax lien with the clerk of the \ncourt; court cited to section 6103(k)(6) and the applicable regulations in \nconcluding the unauthorized disclosure claim was without merit). \n12. Maisano v. United States, 908 F.2d 408, 410 (9th Cir. 1990) (plaintiff \nalleged that the filing of two tax liens and notices of levy violated the \nconfidentiality requirements of section 6103; court found the disclosure \nnecessary in obtaining correct determination of tax, liability for tax, or \nthe amount to be collected under section 6103(k)(6)). \n13. Mann v. United States, 204 F.3d 1012, 1016-20 (10th Cir. 2000) (in a \ndecision which distinguished the Tenth Circuit’s prior decision in \nChandler v. United States, 687 F. Supp. 1515 (D. Utah 1988), aff’d per \n",
" \n4-7\ncuriam, 887 F.2d 1397 (10th Cir. 1989), the court noted that Chandler\nhad been decided prior to the passage of section 7433, and that if \nChandler were to bring suit today, it would be under section 7433, not \nsection 7431; the court followed the reasoning of Venen, see\nparagraph 18, below, and Wilkerson, see paragraph 19, below, to hold \nthat where section 6103(k)(6) permits the issuance of levies and the \nfilings of liens, it is irrelevant as to whether there is a procedural defect \nin the collection activity; the disclosure is permitted; “sections 6103 and \n7431 address improper disclosure of return information and not \nimproper collection activity”). \n14. Mettenbrink v. United States, No. CV89-L-378, 1991 WL 82837, at *6-8 \n(D. Neb. Apr. 8, 1991) (the court distinguished the case from Rorex,\nsee paragraph 14, below, finding the levies, although premature, were \nlawful because plaintiff did owe taxes and section 6103(k)(6) and the \ncorresponding regulations permitted the disclosures). \n15. Rorex v. Traynor, 771 F.2d 383, 386 (8th Cir. 1985) (\"a disclosure in \npursuance of an unlawful levy violates the confidentiality requirements \nof section 6103(a) and is not authorized under section 6103(k)(6)\"; \ncase was decided before Congress enacted section 7433, which \ncreated a specific remedy for reckless and/or intentional improper \ncollection activity). \n16. Schrambling Accountancy Corp. v. United States, 937 F.2d 1485, \n1488-90 (9th Cir. 1991) (lien on file at the recorder’s office in California \nis a public record; therefore, it is no longer confidential and may be \ndisclosed again without regard to section 6103), rev'g, 689 F. Supp. \n1001 (N.D. Cal. 1988) and Allen v. United States, No. C-89-20250 \n(N.D. Cal. Jan. 3, 1990). \n17. Spence v. United States, 114 F.3d 1198 (table cite), No. 96-2196, 1997 \nWL 314836, at *3-4 (10th Cir. Jun. 12, 1997) (that summonses were \nissued to taxpayer’s tenants for their canceled checks where taxpayer \nowed no liability was irrelevant to a determination of whether the \ndisclosure of return information violated section 6103). \n18. Timmerman v. Swenson, Civ. 4-78-547, 1979 WL 1446, at *2-3 (D. \nMinn. Aug. 27, 1979) (section 6103(k)(6) authorized the disclosure of \nthe information contained in the levy, and the service of levy on the \nwrong bank resulted solely from a ministerial error; the court further \nstated that this error did not violate any standard of care or duty legally \nowed to these plaintiffs and was, therefore, not negligent). \n19. Venen v. United States, 38 F.3d 100, 105-07 (3d Cir. 1994) (after \ndiscussing cases that have considered this premise, the court sided \n",
" \n4-8\nwith those cases holding that the validity of the underlying levy is not \nrelevant, reasoning that Congress enacted sections 6103 and 7431 to \nregulate information handling). \n20. Wilkerson v. United States, 67 F.3d 112, 116-17 (5th Cir. 1995) (the \nvalidity of the underlying levy was not relevant; as long as the \ndisclosures were necessary to collect the outstanding tax liability, they \nwere authorized by section 6103(k)(6); court acknowledged the split \namong the circuits on the question of whether the underlying lien/levy \nwas invalid and elected to follow Venen and Farr rather than Rorex).\n21. Whittington v. United States, Civ. No. 07-2135(RJL), ___ F. Supp. 2d \n___, 2012 WL 2114970, at *2 n.6 (D.D.C. June 11, 2012) (filing tax lien \nis a lawful disclosure under section 6103(k)(6)). \nD. Investigative Form Letters \nInvestigative form letters are powerful tools for obtaining information related to \nexamination, collection, and criminal investigation activity, especially in cases in \nwhich the taxpayer is uncooperative. A typical case would involve an \nexamination or criminal investigation in which no return has been filed and/or \nundeposited cash receipts are suspected, and the IRS seeks to determine the \namount of cash payments from persons who are known or likely to be customers \nof the taxpayer. \nGenerally, few problems are encountered when form letters are sent by \nexamination or collection employees. For example, the court found no \nunauthorized disclosures where a taxpayer failed to cooperate, and a tax auditor \nsent form letters to the taxpayer's customers informing recipients that the plaintiff \nwas under examination and requested copies of canceled checks and invoices \nconcerning purchases from the plaintiff. Fostvedt v. United States, 824 F. Supp. \n978, 983 (D. Colo. 1993) (\"We are confident no investigation could ever proceed \nwithout disclosure of such minimal, ‘nonsensitive’ facts as the taxpayer's name, \ntax number, and the reason for the letter of inquiry.\"), aff'd, 16 F.3d 416 (table \ncite), 1994 WL 7109 (10th Cir. Jan. 13, 1994). \nMost of the cases litigated have concerned letters sent by Criminal Investigation \n(CI) (formerly known as the Criminal Investigation Division (CID)). Taxpayers \nand courts seem to be particularly offended when the IRS reveals in writing the \nfact that the taxpayer is under “criminal investigation.\" Courts have often \nquestioned whether it was necessary under section 6103(k)(6) to disclose the \nfact of criminal investigation in order to obtain the information sought. \nIRM 9.3.1.3.3, which addresses \"circular letters,\" proscribes the use of the words \n\"criminal investigation\" in the return address, text, or signature block of circular \nletters. The Treasury regulations provide that internal revenue and TIGTA \n",
" \n4-9\nemployees may disclose, as part of the official investigation, his or her affiliation \nwith the IRS or TIGTA through the use of letterhead when corresponding with \nwitnesses or other third parties. Nevertheless, in the interest of being \ncircumspect and avoiding adverse decisions, consideration should be given to \nusing generic letterhead without the inclusion of “criminal investigation.” \nAlthough the text of IRM 9.3.1.3.3 does not explicitly say so, by extension, the \nwords “criminal investigation” should not be used on the return address of the \nenvelope in which the letter is sent, nor on any return envelope that may be \nenclosed for the recipient's convenience in responding. \nThe IRM also requires that any circular letters be approved by the Special Agent \nin Charge (SAC) prior to sending. (The Supervisory Special Agent may approve \ncircular letters if ten or less are to be issued.) Failure to obtain SAC approval \nhas been pointed to by courts as evidence of a lack of good faith. See Barrett v. \nUnited States, 51 F.3d 475, 479-80 (5th Cir. 1995) (special agent’s failure to \nobtain manager’s approval negated government’s assertion of good faith \naffirmative defense). \nNote: Do not use the words \"Criminal Investigation\" anywhere within \ncircular letters (or, by extension, upon any envelope enclosed with or used \nto send circular letters). \nInvestigative Form Letter Case Law \nNote: As discussed below, only three circuits (the Fifth in Barrett; the \nNinth in Schachter; and, the Eighth in Diamond and May) have ruled on \nthe issue of the disclosure of the fact of criminal investigation in \ninvestigative form letters. \n1. Barrett v. United States, 51 F.3d 475, 478-80 (5th Cir. 1995) (“circular \nletters” sent to patients of a prominent plastic surgeon to determine the \namount of money paid to the surgeon disclosed the fact that the \nsurgeon was under investigation by the CID; Fifth Circuit found it was \nnot necessary to reveal the fact of criminal investigation in letters sent \nto patients of a surgeon to determine the amount of money paid to the \nsurgeon, and that the agent did not act in good faith in sending the \nletters, where the letters disclosed that the plaintiff was under criminal \ninvestigation, contrary to the then-existing IRM). \n2. Cryer v. United States, 554 F. Supp. 2d 642, 644-45 (W.D. La. 2008) \n(letters sent in grand jury investigation did not disclose “return \ninformation”; failure to state a claim under section 7431 because \nallegations were “devoid of detail,” and even if allegations were \nsufficient, investigative disclosures were authorized by section \n6103(k)(6)). \n",
" \n4-10\n3. Diamond v. United States, 944 F.2d 431, 435 (8th Cir. 1991) (court \nfound it was not necessary for special agent to disclose the fact of \ncriminal investigation with a signature block that read, \"Special Agent, \nCriminal Investigation Division\" in “circular letters” sent to patients of \nplaintiff-doctor, but affirmed the district court's grant of the \ngovernment’s motion for summary judgment based on a good faith but \nerroneous interpretation of section 6103 by the IRS, since the IRM at \nthe time advised including the title, \"Special Agent, Criminal \nInvestigation Division\" in the signature block of “circular letters”). \n4. DiAndre v. United States, 968 F.2d 1049, 1053 (10th Cir. 1992) (where \na special agent sent “circular letters” to the plaintiff's customers \nrequesting information on all payments made to the taxpayer, court \nfound that disclosure of nonsensitive public information such as a \nbusiness address to aid in identification was appropriate and necessary \nand did not violate section 6103). \n5. May v. United States, 141 F.3d 1169 (table cite), No. 97-1694, 1998 \nWL 71545 (8th Cir. Feb. 23, 1998) (per curiam) (following the \nprecedent established in Diamond, above, court held that “circular \nletters” containing “Criminal Investigation Division” in the signature \nblock, pursuant to the then-existing IRM instructions, was a violation of \nsection 6103 but that the government did so in good faith, noting the \nEighth Circuit decision in Diamond had not been published at the time \nthat the letters were sent), aff’g 1995 WL 761107 (W.D. Mo. Oct. 5, \n1995). \n6. Rhodes v. United States, 903 F. Supp. 819, 820-24 (M.D. Pa. 1995) \n(declining to follow the Fifth Circuit in Barrett and the Eighth Circuit in \nDiamond, the court determined that the special agent had not made \nunauthorized disclosures by sending “circular letters” to customers of \nthe taxpayer). \n7. Schachter v. United States, 77 F.3d 490 (table cite), Nos. 94-16726, \n94-16788, 1996 WL 56164, at *1-2 (9th Cir. Feb. 8, 1996) (court \nconcluded that defendant was not liable under good faith safe harbor \nfor disclosures made in “circular letters” then in conformance with the \nIRM, sent by a special agent to customers of the plaintiffs, which \ndisclosed the fact of criminal investigation, and did not address whether \nthe disclosures were authorized under section 6103(k)(6)). \n8. Simpson v. United States, CIV A. No. 91-30102 LAC, 1993 WL \n478850, at *4, *5 n.3 (N.D. Fla. July 13, 1993) (court held that \ndisclosures identifying the plaintiff as the subject of a tax liability \ninvestigation contained in “circular letters” sent to customers were \nnecessary to obtain information not otherwise reasonably available \n",
" \n4-11\nabout the plaintiff's sources of income, and were authorized under \nsection 6103(k)(6); although not affecting the outcome, the court in a \nfootnote said it doubted the government's argument that some letters \nsent were not circular letters within the meaning of the IRM because \nthey were sent to known rather than likely customers). \nE. In-Person Investigative Disclosures \nIn-person investigative disclosures are permitted under section 6103(k)(6). The \nTreasury regulation specifically provides that IRS, Chief Counsel and TIGTA \nofficers and employees may identify themselves, their organizational affiliation \nand the nature of the investigation when making oral, written or electronic \ncommunications with third-party witnesses. \nInternal revenue and TIGTA employees may identify themselves, their \norganizational affiliation (e.g., Internal Revenue Service (IRS), Criminal \nInvestigation (CI) or TIGTA, Office of Investigations (OI)), and the nature \nof their investigation, when making an oral, written, or electronic contact \nwith a third party witness. Permitted disclosures include, but are not \nlimited to, the use and presentation of any identification media (such as a \nFederal agency badge, credential, or business card) or the use of an \ninformation document request, summons, or correspondence on Federal \nagency letterhead or which bears a return address or signature block that \nreveals affiliation with the Federal agency. \nTreas. Reg. § 301.6103(k)(6)-1(a)(3). \nIn-Person Investigative Disclosure Case Law \n1. Gandy v. United States, No. 6:96CV730, 1999 WL 112527, at *3-5 \n(E.D. Tex. Jan. 15, 1999) (court found that special agents who \nidentified themselves to third-party witnesses by displaying credentials, \nand by asking for information pertaining to the identified taxpayer, \ndisclosed that the taxpayer is under criminal investigation; however, the \ndisclosures resulted from a good faith, but erroneous interpretation of \nsection 6103; on taxpayer’s appeal, the Fifth Circuit affirmed that the \nspecial agents had acted in good faith because the IRM in effect at the \ntime did not prohibit the oral disclosure of the special agents’ affiliation \nwith CID, and rejected the taxpayer’s argument that the IRM provision \npertaining to circular letters should apply to all disclosures; and, in \ndicta, the Fifth Circuit acknowledged that special agents are authorized \nto display their badges and credentials identifying them as CID agents \nwhen interviewing a third-party witness (and implicitly, that the agent \nwould be able to disclose orally that he was an agent for CID)), aff’d,\n234 F.3d 281, 286-87 (5th Cir. 2000). \n",
" \n4-12\n2. Heller v. Plave, 657 F. Supp. 95, 99 (S.D. Fla. 1987) (court found that a \nspecial agent who revealed that a grand jury had been impaneled, that \nthe taxpayer would be indicted, that the case involved tax evasion, that \ncriminal prosecution was recommended, that the taxpayer would go to \njail, that the taxpayer was an attorney who charged exorbitant fees, \nthat the taxpayer had charged one client higher fees than another client \nfor the same service, and that the taxpayer was a despicable human \nbeing had made unnecessary disclosures and violated section \n6103(k)(6)). \n3. Jones v. United States, 97 F.3d 1121, 1124-25 (8th Cir. 1996) \n(disclosure by a special agent to a confidential informant of an \nimpending search of a taxpayer’s premises pursuant to a warrant, \nwhere the special agent believed the disclosure was necessary for the \nconfidential informant’s safety “did not fall into any of the exceptions to \nthe general rule against disclosure contained in 26 U.S.C. § 6103(c)-\n(o)”). \n4. Kemlon Products & Development Co. v. United States, 638 F.2d 1315, \n1321-23 (5th Cir. 1981) (when a taxpayer sought to enjoin the IRS from \nproceeding with a meeting with taxpayer’s major customer for purpose \nof determining the value of certain patents, court held that the IRS \ncould not be enjoined because (1) there was no showing of irreparable \nharm, and (2) there was no showing that the government could not \nprevail on the lawfulness of the disclosure pursuant to section \n6103(k)(6)), modified on other grounds, 646 F.2d 223 (5th Cir. 1981). \n5. Malis v. United States, No. CV 83-7767 (CBM), 1986 WL 15721, at *3, \n*6-7 (C.D. Cal. Dec. 17, 1986) (where special agent made statements \nto third-party witnesses that revealed, among other things, the fact of \ninvestigation, that the investigation involved tax evasion, that the \ntaxpayer was involved in a tax scam concerning abusive horse tax \nshelters, that the taxpayer was intimidating witnesses, that the taxpayer \nwas going to jail, and that the special agent was \"out to get him,\" court \nconcluded that the disclosures were in the form of statements which in \nthemselves did not seek information, and that, although the witnesses \nhad some information about the plaintiff's business affairs and \ninsurance policies, it was more reasonable for the special agent to \nhave gone first to the insurance company officers rather than speaking \nwith an employee; consequently, the court concluded that disclosures \nwere unnecessary under section 6103(k)(6), and the court further \nfound that the conduct of the agent was willful or in reckless disregard \nof the rights of another and awarded punitive damages). \n6. Payne v. United States, 91 F. Supp. 2d 1014, 1020-21 (S.D. Tex. \n1999) (district court determined that the United States was liable, in \n",
" \n4-13\npart, because the special agent had introduced himself to third-party \nwitnesses as a special agent of CID conducting a criminal investigation \nand had issued summonses to the plaintiff’s clients despite the \nplaintiff’s assurances that he would supply the information pertaining to \nthe investigation to the special agent), rev’d & rem’d, 289 F.3d 377 (5th \nCir. 2002) (directed district court to consider the effect of the Fifth \nCircuit’s decision in Gandy, as well as to determine whether there were \nany unauthorized disclosures in the summons issued to third parties). \n7. Pflum v. United States, No. 99-4170-SAC, 2007 WL 1651290, at *7 (D. \nKan. June 6, 2007) (revealing criminal nature of investigation was \nappropriate and helpful, therefore necessary, within the meaning of \nsection 6103(k)(6)). \n8. Roebuck v. United States, No. 5:98-CV-384-BO(3), 1999 WL 501003, \nat *3-4 (E.D.N.C. June 8, 1999) (court determined that financial \ninformation was not otherwise reasonably available and had to be \nobtained from third parties; the special agent had acted appropriately \nby introducing herself as a CID agent with the IRS conducting an \ninvestigation of the taxpayer, and that to not introduce herself as a CID \nagent would be misleading to the witnesses and could cause confusion \nand allegations of misrepresentation), aff’d, 1999 WL 1128884 (4th Cir. \nNov. 23, 1999). \n9. Rodgers v. Hyatt, 697 F.2d 899, 904 (10th Cir. 1983) (statements \nmade by a Chief, CID, during a meeting on a wholly-unrelated matter \nwith a third party regarding rumors that a taxpayer was dealing in \nstolen oil, were merely rumors and gossip and were not disclosures \nnecessary to secure information under section 6103(k)(6)). \n10. Snider v. United States, 468 F.3d 500, 507-09 (8th Cir. 2006), nonacq.,\nI.R.B. 2007-30 (July 23, 2007) (government failed to demonstrate that \ndisclosure of identities of targets of a criminal investigation was \nnecessary to obtain information sought, therefore disclosure not \nauthorized by section 6103(k)(6); one unauthorized disclosure to two \npeople constitutes two unauthorized disclosures). Action on decision \n(disagreeing with both holdings) is available at: \nhttp://www.irs.gov/pub/irs-aod/aod200703.pdf.\nII. DISCLOSURES TO CONTRACTORS\nA. Background \nTreas. Reg. § 301.6103(k)(6)-1(a)(1)(v) provides authority to make investigative \ndisclosures of return information for the purposes of: \n",
" \n4-14\nObtaining the services of persons having special knowledge or \ntechnical skills (such as, but not limited to, knowledge of particular \nfacts and circumstances relevant to a correct determination of a \nliability described in paragraph (a)(1)(iii) of this section . . .) or \nhaving recognized expertise in matters involving the valuation of \nproperty if relevant to proper performance of duties described in \nthis paragraph. \nSee also IRM 11.3.21.4.1 and 11.3.24.1. Section 6103(n) and its implementing \nregulations authorize the IRS and its Office of Chief Counsel, as well as \nauthorized recipients of returns and return information at a state tax agency, the \nSocial Security Administration, or the Department of Justice, to disclose returns \nand return information to any person to the extent necessary in connection with \nobtaining services for tax administration purposes. \nPersons who receive return information under section 6103(k)(6) are not subject \nto restrictions on redisclosure. See IRM 11.3.21.5. Persons who receive \ninformation under section 6103(n) are specifically covered by the disclosure laws \n(section 6103(a)(3)) and are subject to criminal and civil sanctions for \nunauthorized disclosures. See I.R.C. §§ 6103(a)(3), 7213(a)(1), 7213A(a)(1)(B), \nand 7431(a)(2). \nB. Regulations38\n1. Treas. Reg. § 301.6103(n)-1 specifically describes limitations on \ncontractor disclosures, including the use and treatment by the \ncontractor of the information disclosed. \n2. Treas. Reg. § 301.6103(n)-1(b) provides that disclosures must be \nnecessary to perform the contract. Disclosures are necessary only if \nthe contract provisions cannot be reasonably, properly, or economically \ncarried out without the disclosures. Disclosures should be limited to \ninformation actually needed by the contractor to perform the contract. \nNote: Before disclosures are made, one should consider whether \nthe contractor needs the entire document (or information \ncollection), or whether redactions would be appropriate, or whether \n\"dummy information\" would suffice. \n3. Treas. Reg. § 301.6103(n)-1(d) requires the contractor to provide \nwritten notice to his, her, or its officers or employees of the following \nproscriptions: \n38 See also IRM 11.3.24.2. \n",
" \n4-15\na. Returns or return information disclosed to the officer or \nemployee can be used only for a purpose and to the extent \nauthorized by the general rule in Treas. Reg. \n§ 301.6103(n)-1. \nb. Further inspection of any returns or return information for an \nunauthorized purpose constitutes a misdemeanor, punishable \nupon conviction by a fine of as much as $1,000, or imprisonment \nfor as long as 1 year, or both, together with costs of prosecution. \nc. Further disclosure of any returns or return information for an \nunauthorized purpose constitutes a felony, punishable upon \nconviction by a fine of as much as $5,000, or imprisonment for \nas long as 5 years, or both, together with the costs of \nprosecution. \nd. Any unauthorized further inspection or disclosure of returns or \nreturn information may also result in an award of civil damages \nagainst any person who is not an officer or employee of the \nUnited States in an amount not less than $1,000 for each act of \nunauthorized inspection or disclosure or the sum of actual \ndamages sustained by the plaintiff as a result of the \nunauthorized disclosure or inspection as well as an award of \ncosts and reasonable attorneys fees. \ne. If the person is an officer or employee of the United States, a \nconviction for an offense referenced in paragraph b or c, above, \n(Treas. Reg. § 301.6103(n)-1(d)(2)-(3)) shall result in dismissal \nfrom office or discharge from employment. \n4. Treas. Reg. § 301.6103(n)-1(e) provides that: \na. Contractors and their officers and employees must comply with \nall applicable conditions and requirements that the IRS may \nprescribe to protect the confidentiality of returns and return \ninformation. \nb. Any contract shall provide (or be amended to provide) that the \ncontractor and its officers and employees shall comply with all \napplicable conditions and requirements for protecting \nconfidentiality prescribed by the IRS by regulation, published \nrules or procedures, or written communication to the contractor. \nc. The IRS has the authority to determine whether a contractor \nmeets the prescribed requirements and conditions. If the IRS \ndetermines that the contractor does not do so, the IRS may take \n",
" \n4-16\nany actions deemed necessary to ensure that the conditions or \nrequirements are met. Actions may include terminating or \nsuspending any obligations under a contract with the IRS, \nsuspending disclosures by the IRS otherwise authorized under \nthe contract, and, if the IRS determines that a contractor for \neither a state tax agency, the Social Security Administration, or \nthe Department of Justice is not in compliance with all applicable \nconditions, suspension of disclosures to those agencies until the \nIRS is satisfied that the conditions or requirements are or will be \nmet. \nC. Comparison of I.R.C. § 6103(k)(6) and I.R.C. § 6103(n) Disclosure \nAuthorities \nBoth subsections (k)(6) and (n) permit the IRS or TIGTA to obtain services for tax \nadministration purposes. Only subsection (n) mentions contracting for these \nservices, or puts any limits on the use of the information by the person to whom \ndisclosure is made. \nAlthough the IRS has the authority under section 6103(k)(6) to disclose \ntaxpayers' information to expert witnesses for analysis, the IRS has generally \nopted to use its authority under section 6103(n) out of concern for the \nconfidentiality of taxpayer information. Since section 6103(k)(6) authorizes \ndisclosures for investigative purposes without imposing redisclosure restrictions \nand penalties, taxpayers' privacy interests are better served when disclosures \nare made pursuant to subsection (n). See also IRM 11.3.21.4 (statutory \nsafeguard and Privacy Act provisions apply to (n) contractors). \nThe IRS generally does not enter into agreements with taxpayers regarding its \nduties to safeguard information obtained during an investigation, or its obligations \nto prosecute persons suspected of unauthorized disclosures. These issues are \ncovered by disclosure prohibitions against officers and employees of the IRS and \nany contractors. When a taxpayer expresses concern about the fact that his or \nher information is being disclosed to someone outside the IRS, if there is a \ncontract, IRS employees point out section 6103(n) and the provisions of the \ncontract. \nThe most common situation raising this taxpayer concern about the type and \nquantity of return information being disclosed is where the IRS seeks valuation or \nexpert witness services. This frequently occurs during the course of an \nexamination of a taxpayer whose financial transactions are of an unusual or very \ncomplex nature, and IRS employees lack the expertise to understand or correctly \nevaluate them. For the outside expert to provide information of value, he or she \nmust first be provided with substantial amounts of sensitive financial (and \nsometimes trade secret) information about the taxpayer under examination. In \n",
" \n4-17\nthese situations, the expert should be under contract, so that the restrictions and \nsanctions of section 6103(n) apply. \nDisclosures necessary in connection with preliminary inquiries to the prospective \ncontractee (for conflicts of interest, to ascertain availability and length of time \nneeded to perform services) can be made under section 6103(k)(6). See Treas. \nReg. § 301.6103(k)(6)-1(a)(1)(v). See also United States v. Charles Schwab \nCorp., No. C-91-1975-MHP, 1991 U.S. Dist. LEXIS 21752 (N.D. Cal. Aug. 23, \n1991). In Schwab, during the course of an audit, IRS requested various \ndocuments upon which taxpayer relied for certain entries on its tax return. In a \nsummons enforcement hearing to obtain the documents, taxpayer admitted that \nthe IRS had the right to obtain the documents for the audit, and that the IRS had \nthe right to disclose them to a hired expert. The taxpayer objected to the alleged \nabsence of disclosure restrictions on the expert, and argued that the only \nauthority by which the IRS could make disclosures to an expert was section \n6103(k)(6), which provided no redisclosure consequences. The taxpayer \ncontended section 6103(n) was inapplicable to expert services contracts, since \nthe IRS had then not yet promulgated regulations to implement the 1990 \namendment that clarified that experts were covered. The IRS argued that it had \nalways interpreted section 6103(n) to apply to contracted experts, that the \nlegislative history of the 1990 amendment itself indicated Congress did not intend \na suggestion that experts had heretofore not been covered, and that the statute \nwas self-implementing, requiring no regulations. The court enforced the \nsummons. \n",
"5-1 \nCHAPTER 5 \n DISCLOSURES FOR NONTAX CRIMINAL PURPOSES \nI.R.C. § 6103(i) \nI. INTRODUCTION \nTax information plays a significant role in the discovery and prosecution of violations of \nnontax federal criminal law. It has proved especially useful in investigations and \nprosecutions of financial crimes. Before 1976, federal law enforcement agencies had \nrelatively convenient access to this information. By the mid-1970s, however, critics \nnoted a growing congressional concern about the use of tax information for purposes \nunrelated to tax administration. Critics also questioned whether access by law \nenforcement agencies inappropriately took advantage of the fact that taxpayers, under \nthreat of criminal penalties, submit information about themselves to the IRS.\nCongress ultimately decided that federal law enforcement officials should not have \neasier access to information about a taxpayer maintained by the IRS than they would \nhave if they sought to compel the production of that information from the taxpayer \nhimself. With this in mind, Congress enacted section 6103(i), which establishes the \ngeneral rule that a federal agency enforcing a nontax criminal law must obtain court \napproval to obtain a return or return information submitted by the taxpayer or his or her \nrepresentative. The court approval procedure is not required to obtain return \ninformation obtained from a source other than the taxpayer (or representative). \nII. I.R.C. § 6103(i)(1): ALL TAX INFORMATION \nA. Federal agencies may obtain tax information for use in nontax criminal \ninvestigations pursuant to an ex parte order of a federal district court judge or \nmagistrate. I.R.C. § 6103(i)(1); Treas. Reg. § 301.6103(i)-1. \nB. The ex parte court order may be obtained only upon application authorized by \nthe Attorney General, Deputy Attorney General, Associate Attorney General, \nany Assistant Attorneys General, any United States Attorney, any special \nprosecutor appointed under 28 U.S.C. § 593, or any attorney in charge of a \ncriminal division organized crime strike force established pursuant to 28 \nU.S.C. § 510. The application can also be authorized by someone officially \nacting in the absence of a named official (e.g., an Acting Assistant Attorney \nGeneral). See United States v. Bledsoe, 674 F.2d 647, 670 (8th Cir.1982), \ncert. denied, Phillips v. United States, 459 U.S. 1040 (1982) (properly \ndesignated acting officials may request information under section 6103(i)). \nThe authority to authorize the application cannot be delegated. Thus, \nAssistant United States Attorneys may not authorize applications for ex parte\norders.\nNote: While section 6103(i)(1)(B) requires a named official to authorize each \napplication, there is no requirement that the official actually sign the \napplication. The best evidence, of course, of the required authorization is the \n",
"5-2 \nsignature of the named official on the application. Nevertheless, it may be \npossible to design alternative methods of ensuring proper authorization. For \nexample, documentation could be secured to indicate that each application \nnot signed by a United States Attorney was, in fact, personally reviewed and \nauthorized by the United States Attorney in each case. The United States \nAttorneys’ Manual suggests that this personal review can be demonstrated by \nhaving the authorizing official provide a written summary of the facts of the \ncase, and the specific reasons why a disclosure is, or may be, relevant to the \nproceeding or investigation as part of the application. See U.S. Dep’t of \nJustice, United States Attorneys’ Manual 9-13.900 (Oct. 2007), which is \nincluded in the Appendix to this Guide. A Tax Disclosure Form is available by \nclinking on the link to “Criminal Resource Manual at 537” at the following web \naddress: \nhttp://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/crm00505.h\ntm#505 by opening the link to “Criminal Resource Manual at 537.” This Tax \nDisclosure Form is included in the Appendix to this Guide. While such written \nreference to case specific data is the recommended best practice, if this is not \na viable option, you may consider other procedures, such as, for example, (1) \nchanging the language of the local § 6103(i) order application to specifically \nindicate that the authorizing official has “personally reviewed and authorized” \nthe application; (2) ask that the authorizing official retain written \ndocumentation demonstrating his or her specific authorization of each \napplication; or (3) ask that the authorizing official send a letter to the area \ndirector documenting his or her practice of personally reviewing and \nauthorizing each application before submission to the court. \nThe application must establish: (1) reasonable cause to believe that a federal \nnontax criminal violation has occurred; (2) reasonable cause to believe that \nreturns or return information is or may be relevant to a matter relating to the \ncommission of the crime; and, (3) that the information sought will be used \nexclusively for the federal criminal investigation or proceeding concerning \nsuch crime and cannot reasonably be obtained, under the circumstances, \nfrom any other source. See United States v. Praetorius, 451 F. Supp. 371, \n372 (E.D. N.Y. 1978). The courts are expected to review documents and \nbalance investigative need with the taxpayer's privacy interests. See id. at \n373; United States v. Barnes, 604 F.2d 121, 147 (2d Cir. 1979) (large \namounts of \"miscellaneous\" income on return relevant to drug conspiracy \ncase), cert. denied, 446 U.S. 907 (1980). An ex parte order may properly \nauthorize disclosure of joint returns and return information where the request \nfor the order sought information regarding a joint filer for the years joint \nreturns were filed. See Bolin v. United States, No. Civ.A.1:99CV335-MHS, \n1999 WL 1270979, at *2 (N.D. Ga. Nov. 16, 1999). \nA federal district court judge or magistrate may not on his or her own motion \ninitiate an order directing production of returns or return information under \nsection 6103(i). See United States v. Lochmondy, 890 F.2d 817, 823-24 (6th \n",
"5-3 \nCir. 1989); see also United States v. Recognition Equip., Inc., 720 F. Supp. \n13, 14 (D.D.C. 1989) (“Under section 6103(i)(1)(B) only specified Federal \nprosecutors, including United States attorneys, may authorize an application \nto this Court for an order for the disclosure of tax returns or return \ninformation.”). \nBecause the ex parte order process is in fact ex parte, a defendant does not \nhave a right to notification, hearing on the application, or disclosure of the \ninformation on which the judge or magistrate acted. See Barnes, 604 F.2d at \n147; United States v. DiLorenzo, No. S1 94 Cr. 303 (AGS), 1995 WL 169003, \nat *8-9 (S.D.N.Y. Apr. 10, 1995). \nThe section 6103(i)(1) ex parte order process may not be used to obtain\nreturns or return information for use in a civil proceeding, including a civil \nforfeiture proceeding. See United States v. $57,303.00 in United States \nCurrency, 737 F. Supp. 1041, 1042-43 (C.D. Ill. 1990) (“Congress \ndistinguished between criminal investigations or proceedings and civil \nforfeiture actions when drafting these disclosure provisions.”); see the Dep’t \nof Justice Criminal Tax Manual at: \nhttp://www.justice.gov/tax/readingroom/2008ctm/CTM%20Chapter%2042.htm\nNevertheless, returns or return information obtained for legitimate criminal \npurposes may subsequently be disclosed in a civil forfeiture proceeding \nfollowing the requirements set forth in section 6103(i)(4). See Section V and \nChapter 7. \nIII. I.R.C. § 6103(i)(2): RETURN INFORMATION OTHER THAN TAXPAYER RETURN \nINFORMATION \nInformation obtained from a source other than the taxpayer or the taxpayer's \nrepresentative, (i.e., return information other than taxpayer return information), may be \ndisclosed under a less restrictive process than returns and taxpayer return information. \nReturn information other than taxpayer return information may be disclosed for federal \nnontax criminal purposes in response to a written request from the head of a federal \nagency or its Inspector General. In the case of the Department of Justice, this written \nrequest may be submitted by the Attorney General, Deputy Attorney General, Associate \nAttorney General, Assistant Attorney General, Director of the Federal Bureau of \nInvestigation, the Administrator of the Drug Enforcement Administration, a United States \nAttorney, a special prosecutor appointed under 28 U.S.C. § 593, or an attorney in \ncharge of a criminal division organized crime strike force established pursuant to 28 \nU.S.C. § 510. I.R.C. § 6103(i)(2); Treas. Reg. § 301.6103(i)-1. Such authority is non-\ndelegable.\nA. The written request must provide: \n1. the name, address and, if available, the taxpayer identification number \nof the taxpayer; \n",
"5-4 \n2. the taxable period(s) for which the information is sought; \n3. the statutory authority under which the criminal investigation or \nproceeding is being conducted; and \n4. the reason why disclosure is or may be relevant to the investigation or \nproceeding. \nB. Requests under section 6103(i)(2) seeking only taxpayers’ addresses do not \ncomply with the section. The section contemplates requests for return \ninformation in addition to taxpayers’ addresses. \nIV. RETURN INFORMATION CONCERNING POSSIBLE CRIMINAL/TERRORIST \nACTIVITIES OR EMERGENCY CIRCUMSTANCES \nA. General Rule\nIn general, section 6103(i)(3)(A) provides that return information (other than \ntaxpayer return information) that may constitute evidence of a nontax federal \ncrime may be disclosed in writing to the extent necessary to apprise the head of \nthe federal agency charged with enforcing the laws to which the crime relates. \nTreas. Reg. § 301.6103(i)-1; see In re Grand Jury Investigation, 688 F.2d 1068, \n1071 (6th Cir. 1982) (oral disclosure of fact of pending tax investigation not \nviolative of section 6103(i)(3)(A)); see also United States v. President, 591 F. \nSupp. 1313, 1317 (N.D. Ill. 1984) (disclosure to Department of Labor). The \nstatute does not require that the information be conclusive, but the information \nshould sufficiently identify the specific criminal act or event to which it relates. \nSection 6103(i)(3)(A)(ii) specifies that a taxpayer’s identity may be disclosed if \nthere is return information, other than taxpayer return information, which may \nconstitute evidence of a violation of a nontax criminal law. \nB. Emergency Situations\nSection 6103(i)(3)(B) provides that return information, including taxpayer return \ninformation, may be disclosed to the extent necessary to apprise appropriate \nofficers or employees of federal and state law enforcement agencies of \ncircumstances involving an imminent danger of death or physical injury to any \nindividual. Return information, including taxpayer return information, may also be \ndisclosed to apprise officers or employees of a federal law enforcement agency \nof the imminent flight of any individual from federal prosecution. For disclosures \nof returns and return information to locate fugitives from justice, see Section VI. \n",
"5-5 \nNote: This section and section 6103(i)(7)(A)(ii) are the only provisions \nunder section 6103(i) that authorize disclosures to states for nontax \ncriminal law enforcement purposes. \nC. Terrorist Activities \nSection 6103(i)(3)(C) provides that return information other than taxpayer return \ninformation that may be related to a terrorist incident, threat, or activity may be \ndisclosed in writing to the extent necessary to apprise the heads of the \nappropriate federal law enforcement agencies responsible for investigating or \nresponding to the terrorist incident, threat, or activity. The agency head may \ndisclose the return information to the agency’s officers or employees to the \nextent necessary to investigate or respond to the terrorist incident, threat, or \nactivity. \nReturns and taxpayer return information may also be disclosed to the Attorney \nGeneral under section 6103(i)(3)(C)(ii) to the extent necessary for, and solely for \nuse in preparing, an application under section 6103(i)(7)(D) for an ex parte \ndisclosure (as authorized by the Commissioner). For purposes of sections \n6103(i)(3)(C)(iii) and (i)(7)(D), taxpayer identity information is not treated as \ntaxpayer return information.\nD. Referral Procedures \nSee IRM 11.3.28, Disclosure to Federal Agencies for Administration of Nontax \nCriminal Laws. \nV. I.R.C. § 6103(i)(4): USE OF RETURNS AND RETURN INFORMATION IN \nJUDICIAL OR ADMINISTRATIVE PROCEEDINGS PERTAINING TO FEDERAL \nNONTAX CRIMINAL MATTERS \nA. Any return or return information furnished pursuant to sections 6103(i)(1) or \n7(C) may be used as evidence in a judicial or administrative proceeding \nrelating to a federal nontax crime or related civil forfeiture, provided a few \nrequirements are first met: (1) the court determines that the information is \nprobative of the commission of the crime or (2) the court directs the disclosure \npursuant to 18 U.S.C. § 3500 (the Jencks Act) or Fed. R. Crim. P. 16. \nB. Courts have denied defense counsels' attempts in nontax criminal \nprosecutions to compel disclosure by the IRS of third-party returns or return \ninformation on the theory that access to and use of the information can occur \nonly if the United States has previously obtained such information under \nsections 6103(i)(1), (2), or (3)(A). See United States v. Lochmondy, 890 F.2d \n817, 823-24 (6th Cir. 1989); see also United States v. Jackson, 850 F. Supp. \n1481, 1504 (D. Kan. 1994). \n",
"5-6 \nC. Returns and return information shall not be admitted into evidence if the \nSecretary determines and notifies the Attorney General, the Attorney \nGeneral’s delegate, or a federal agency head that doing so would identify a \nconfidential informant or seriously impair a civil or criminal tax investigation. \nI.R.C. § 6103(i)(4)(C). \nVI. I.R.C. § 6103(i)(5): DISCLOSURE OF RETURNS AND RETURN INFORMATION \nTO LOCATE FUGITIVES FROM JUSTICE \nA. Returns and return information may be disclosed to officers and employees of \na federal agency for the sole purpose of locating a fugitive who has \ncommitted a federal felony only upon the grant of an ex parte order by a \nfederal district court judge or magistrate. The extent of the disclosure will be \ngoverned by the language of the order. \nB. Only those persons named in section 6103(i)(1)(B) may authorize an \napplication for ex parte order under this section. \nC. The application must indicate: \n1. a federal felony arrest warrant has been issued and the taxpayer is a \nfugitive from justice; \n2. the return or return information is sought exclusively for locating the \ntaxpayer/fugitive; and \n3. there is reasonable cause to believe information will help locate the \nfugitive. \nVII. I.R.C. § 6103(i)(6): CONFIDENTIAL INFORMANTS; IMPAIRMENT \nReturns or return information shall not be disclosed under sections 6103(i)(1), (2), (3)(A) \nor (C), (5), (7), or (8) if the IRS determines and, where applicable, certifies to the court \nthat issued a disclosure order, that it would identify a confidential informant or seriously \nimpair a civil or criminal tax case. \nNote: This limitation does not apply in the context of emergency disclosures \nunder section 6103(i)(3)(B) to apprise federal and state officials of circumstances \ninvolving imminent danger of death or physical safety. \nIn the case of court ordered disclosures in a judicial proceeding under section \n6103(i)(4)(A), the impairment determination is made pursuant to section 6103(i)(4)(C). \n",
"5-7 \nVIII. I.R.C. § 6103(i)(7): DISCLOSURE UPON REQUEST FOR INFORMATION \nRELATING TO TERRORIST ACTIVITES\nA. Law Enforcement Agencies \nReturns and return information other than taxpayer return information may be \ndisclosed, upon written request, to officers and employees of a federal law \nenforcement agency who are personally and directly engaged in the response to \nor investigation of any terrorist incident, threat, or activity. For purposes of \nsection 6103(i)(7)(A), a taxpayer’s identity is not treated as taxpayer return \ninformation.\nThe request to the Secretary must: \n1. be made by any federal law enforcement agency head, or delegate, \ninvolved in the response to or investigation of any terrorist incident, \nthreat, or activity; and \n2. set forth the specific reason(s) why the disclosure may be relevant to \nthe response to or investigation of any terrorist incident, threat, or \nactivity. \nNote: The use of the tax information is limited to the officers and \nemployees to whom the information is disclosed. \nThe head of the relevant federal law enforcement agency may disclose, with \ncertain limitations, to state or local law enforcement agencies only if they are part \nof a team that includes the federal agency responding to or investigating any \nterrorist incident, threat, or activity. \nB. Intelligence Agencies \nPursuant to section 6103(i)(7)(B), returns and return information other than \ntaxpayer return information may be disclosed upon written request to those \nofficers and employees of the Department of Justice, the Department of the \nTreasury, and other federal intelligence agencies who are personally and directly \nengaged in the collection or analysis of intelligence and counterintelligence \ninformation or investigation concerning any terrorist incident, threat, or activity \nsolely for their use in such investigation, collection or analysis. \nThe request must: \n1. be made by a Department of Justice or Department of the Treasury \nofficer or employee or the Director of the United States Secret Service \nwho is responsible for the collection and analysis of intelligence and \n",
"5-8 \ncounterintelligence information concerning any terrorist incident, threat, \nor activity; and \n2. set forth the specific reason(s) why such disclosure may be relevant to \na terrorist incident, threat, or activity. \nFor purposes of section 6103(i)(7)(B), a taxpayer’s identity is not treated as \ntaxpayer return information. \nC. Ex Parte Orders \nSections 6103(i)(7)(C) and (D) authorize disclosure of returns and return \ninformation to officers and employees of any federal law enforcement or federal \nintelligence agency who are personally and directly engaged in any investigation, \nresponse to, or analysis of intelligence and counterintelligence information \nconcerning any terrorist incident, threat, or activity upon the grant of an ex parte\norder for such disclosure by a federal judge or magistrate. Under section \n6103(i)(7)(C), the Attorney General, Deputy Attorney General, the Associate \nAttorney General, any Assistant Attorney General or any United States Attorney \nmay authorize the application for the ex parte order. Such authority is non-\ndelegable. \nTo be granted, the ex parte application must demonstrate: \n1. there is reasonable cause to believe, based upon information believed \nto be reliable, that the return or return information may be relevant to a \nmatter relating to such terrorist incident, threat, or activity; and \n2. the return or return information is sought exclusively for use in a federal \ninvestigation, analysis, or proceeding concerning any terrorist incident, \nthreat, or activity. \nSection 6103(i)(7)(D) allows the IRS to initiate a request for an ex parte order \nunder section 6103(i)(7)(C). In addition, section 6103(i)(3)(C)(ii) authorizes the \nIRS to disclose information to the Department of Justice to apply for the ex parte\norder. To be granted, the application must demonstrate the same requirements \nas necessary for an application authorized under section 6103(i)(7)(C). \nInformation authorized for disclosure pursuant to an ex parte request initiated by \nthe IRS under section 6103(i)(7)(D) may be disclosed only to the extent \nnecessary to apprise the head of the appropriate federal agency responsible for \ninvestigating or responding to a terrorist incident, threat, or activity, and can be \nused solely in a federal investigation, analysis or proceeding concerning the \nsame. \n",
"5-9 \nIX. I.R.C. § 6103(i)(8): DISCLOSURE OF RETURNS OR RETURN INFORMATION \nTO THE COMPTROLLER GENERAL \nA. Audits \nUnder certain circumstances, returns or return information may be disclosed to \nofficers and employees of the Government Accountability Office (GAO) upon \nwritten request or by the Comptroller General personally for purposes of \nconducting audits of the IRS or the Bureau of Alcohol, Tobacco, Firearms & \nExplosives, the Department of Justice, the Tax and Trade Bureau, the \nDepartment of the Treasury or audits of a program or activity of a federal agency \nthat involves the use of returns or return information. \nB. Joint Committee on Taxation Notification \nThese audits may be conducted only if the Joint Committee on Taxation is \nnotified of GAO's intention to audit and does not disapprove within 30 days after \nreceiving the notice. I.R.C. § 6103(i)(8)(C); see also IRM 11.3.23, Disclosure to \nthe Government Accountability Office. \nX. I.R.C. § 6103(l)(15): DISCLOSURE OF FORM 8300 INFORMATION ON CASH \nTRANSACTIONS \nSection 6050I requires trades or businesses, other than financial institutions, to report \ncash transactions of more than $10,000 to the Service. These transactions are reported \non Form 8300. Section 6103(l)(15) authorizes the disclosure of information from returns \nfiled under section 6050I (i.e., Form 8300) to federal, state, local or foreign government \nagencies, under the same terms and conditions applying to the disclosures of Currency \nTransaction Reports (FinCEN Form 104 37683N) filed by financial institutions under the \nBank Secrecy Act, Pub. L. No. 91-508, 84 Stat. 1114 (1970) (codified at scattered \nsections of 12, 18, and 31 U.S.C), amended by Pub. L. No. 107-56, 115 Stat. 327 \n(2001). See IRM 9.3.1.4.3.1.1. See generally Chapter 7. Any disclosures of \ninformation from the Form 8300 made pursuant to section 6103(l)(15) cannot be used \nby the recipients for the purpose of the administration of any tax law. \nSection 365 of the Uniting and Strengthening America by Providing Appropriate Tools \nRequired to Intercept and Obstruct Terrorism Act of 2001 (the “USA Patriot Act”), Pub. \nL. No. 107-56, 115 Stat. 272, 333-35, added section 5331 to the Bank Secrecy Act. It \nrequires any person who is engaged in a trade or business and who, in the course of \nthe trade or business, receives more than $10,000 in coins or currency in one \ntransaction or in related transactions, to file a report with the Financial Crimes \nEnforcement Network (FinCEN) of the Department of the Treasury. This is the same \ninformation collected by the IRS under I.R.C. § 6050I on Form 8300 that is return \ninformation subject to section 6103 limitations. The information collected by FinCEN \nunder Title 31 is not return information protected from disclosure by section 6103. \nTherefore, to the extent federal, state, local or foreign government agencies can access \n",
"5-10 \nthis information from FinCEN, rather than the IRS, they would not need to rely on the \nauthority in section 6103(l)(15). \nXI. REPORTING VIOLATIONS OF NONTAX CRIMES NOT INVOLVING RETURNS \nOR RETURN INFORMATION \nOccasionally, IRS employees observe nontax crimes during official duty hours, or in \ntheir official capacities receive information relating to nontax crimes, which do not \ninvolve returns or return information. IRM 11.3.34, Disclosure for Nontax Criminal \nViolations, describes procedures for employees to inform federal, state, and local law \nenforcement authorities of the facts necessary to advise them of possible violations of \nnontax criminal laws in these circumstances. \nXII. INTERPLAY BETWEEN I.R.C. § 6103(h) AND I.R.C. § 6103(i) \nSee generally Chapter 3 for a discussion of the interplay between sections 6103(h) and \n(i), and Treas. Regs. §§ 301.6103(h)(2)-1 and 301.6103(i)-1. \n",
" \n6-1 \nCHAPTER 6 \nDISCLOSURE OF RETURNS AND RETURN INFORMATION \nIN BANKRUPTCY CASES \nI. GENERAL DISCLOSURE CONCEPTS \nA. General Rule – Confidentiality \nThe general rule regarding disclosure of returns and return information is found \nin I.R.C. § 6103(a), which provides that: \nReturns and return information shall be confidential, and except as \nauthorized by this title-- \n(1) no officer or employee of the United States, \n. . .\nshall disclose any return or return information obtained by \nhim in any manner in connection with his service as such an \nofficer or employee or otherwise under the provisions of this \nsection.\nThus, returns and return information are to be kept confidential unless disclosure \nis permitted by some specific provision of the Code. See Church of Scientology \nof Cal. v. IRS, 484 U.S. 9, 12 (1987). The unauthorized disclosure of returns or \nreturn information may result in civil damages against the United States (I.R.C. \n§ 7431) and/or criminal penalties against the individual who disclosed the \ninformation (I.R.C. § 7213). See Nowicki v. Comm'r, 262 F.3d 1162, 1163 (11th \nCir. 2001). See generally Chapter 2, Part I. \nB. Definition of \"Return\" and \"Return Information\" \nGenerally, a \"return\" is the actual form filed by the taxpayer, including supporting \nschedules, a claim for refund, and any information return filed by a third party \nwith respect to the taxpayer. I.R.C. § 6103(b)(1). \"Return information\" is \ndefined, generally, as the taxpayer's identity (e.g., name, address, and taxpayer \nidentification number); the nature, source or amount of the taxpayer’s income, \nassets, or liabilities; whether or not the taxpayer's return is being or will be \ninvestigated; and any other data received by, recorded by, prepared by, \nfurnished to or collected by the Secretary with respect to a return or with respect \nto the determination of the existence (or possible existence) of liability under the \nCode. I.R.C. § 6103(b)(2). The distinction between \"return\" and \"return \ninformation\" is significant, because in some situations the statute permits \ndisclosure of one, but not the other. See generally Chapter 2, Part I. \n",
" \n6-2 \nC. When Does a Bankruptcy Case Involve Tax Administration?\nThere are significant differences in the disclosure rules depending on whether a \ncase pertains to \"tax administration.\" If a bankruptcy case pertains to tax \nadministration, disclosures of the debtor's tax information are permitted, under \nthe rules of section 6103(h), to DOJ or in the judicial proceeding. Such \ndisclosures typically do not require the debtor's consent. However, if a \nbankruptcy case does not involve tax administration, the debtor's tax information \ngenerally can only be disclosed: (1) to the debtor; (2) with the debtor's consent; \n(3) to the Chapter 7 or 11 trustee; or (4) in a criminal proceeding pursuant to \nsection 6103(i). Thus, it is important to determine whether a particular \nbankruptcy case pertains to tax administration.39\nThe Code broadly defines \"tax administration,\" in section 6103(b)(4), to include, \namong other activities: \nthe administration, management, conduct, direction, and \nsupervision of the execution and application of the internal \nrevenue laws or related statutes[40] (or equivalent laws and \nstatutes of a State) and tax conventions to which the United \nStates is a party . . . [including] assessment, collection, \nenforcement [and] litigation . . . functions under such laws, \nstatutes or conventions. \nNot every bankruptcy case qualifies as a tax administration proceeding. Unlike \nTax Court or refund proceedings, where the cause of action per se involves tax \nadministration, bankruptcy cases are multi-party actions that may or may not \ninvolve the resolution of tax claims or the application of internal revenue laws. \nIn addition, the mere existence of a tax liability of the debtor or the mere potential \nfor IRS involvement does not turn a bankruptcy case into a tax administration \nproceeding. Rather, it is necessary that there be some nexus between the \nbankruptcy case and the application of the internal revenue laws in the \nproceeding to make the bankruptcy case a tax administration proceeding. \nIt is not uncommon for a debtor to be under audit at the time a petition is filed, or \nfor the bankruptcy petition to trigger an audit of the debtor in large bankruptcy \ncases. The IRS’s examination of the debtor, as a taxpayer, is a tax \nadministration proceeding, but that does not automatically make the bankruptcy \n39 Chief Counsel Notice 2010-009, entitled “Disclosures of Returns and Return Information in \nBankruptcy Cases,” advises Chief Counsel employees on the scope of disclosures under section \n6103(h) of returns and return information, collectively “tax information,” that may be made to DOJ in \nbankruptcy cases. Chief Counsel Notice 2010-009 has not yet been incorporated into Part 34 of the \nCCDM.\n40 Bankruptcy provisions would be \"related statutes\" to the extent they are utilized in determining the \nvalidity or amount of the IRS's tax claim. See generally Chapter 5 for information on making a related \nstatute determination. \n",
" \n6-3 \ncase a tax administration proceeding. In general, a bankruptcy case pertains to \ntax administration if the bankruptcy court’s involvement is needed to determine a \nmatter pertaining to assessment or collection of tax, or is otherwise needed to \nenforce the internal revenue laws.41 When that nexus is established will depend \nupon the facts of the bankruptcy case. \nDue to pre-petition events, some bankruptcy cases may pertain to tax \nadministration immediately upon the filing of the petition. Other bankruptcy \ncases may become tax administration proceedings after the petition is filed. \nThe following are non-exclusive examples: \nExamples: \n• If the debtor lists the IRS as a creditor in the petition (or in an attached \nschedule of liabilities), disclosures under section 6103(h) would be \npermitted at the commencement of the case. By virtue of the debtor's \nputting the tax in issue and the government's participating in the case, the \nproceeding becomes one pertaining to tax administration. \n• If the IRS has a current Notice of Federal Tax Lien filed against the debtor’s \nproperty prior to the petition’s filing, the IRS has a tax interest in the \nbankruptcy case from the moment the petition is filed. \n• If the debtor files a plan of reorganization that lists the IRS as a creditor, the \nfiling of the plan is a trigger that similarly puts a tax matter at issue, and the \nbankruptcy case will be a proceeding pertaining to tax administration if the \nIRS participates. \n• If no tax liability is listed in the debtor's schedules, but the IRS files a proof \nof claim or request for payment of administrative expenses, the case would \nbecome a proceeding pertaining to tax administration upon the filing of the \nproof of claim or request. By filing the proof of claim or request, the IRS \nhas formally appeared in the case and put the tax matter in issue. \n• If the IRS takes any formal action in a bankruptcy case, the case would \nbecome a proceeding pertaining to tax administration upon the IRS's filing \nof the appropriate formal action (unless an earlier triggering event has \noccurred). Examples of such formal actions include filing a motion to \ncompel the filing of a tax return, a motion to lift the automatic stay, a claim \nfor administrative expenses, an objection to the disclosure statement, or a \ncomplaint or answer in an adversary proceeding. \n41 The Bankruptcy Court has broad authority to determine the amount or legality of the IRS’s tax \nclaims, whether such tax shall be allowed, and the validity of any federal tax liens. See, e.g., \nB.C. §§ 502(a), 505(a), and 545. \n",
" \n6-4 \n• If the Bankruptcy Code permits the debtor to operate the debtor's business \npost-petition, or the court authorizes the trustee to operate the debtor's \nbusiness post-petition, the debtor will accrue employment taxes and other \ncontinuing tax and reporting obligations. These liabilities are subject to the \ncourt's supervisory authority.42 Such operations make the bankruptcy case \na proceeding pertaining to tax administration; this would permit the IRS to \ndisclose information relating to the debtor's (or the estate's) post-petition tax \ncompliance to the officials responsible for supervising such compliance \n(notwithstanding the absence of a formal claim). Where the Bankruptcy \nCode permits the debtor to continue operating the business, the filing of the \npetition is the triggering event; otherwise, the triggering event is the \nbankruptcy court's order authorizing the debtor to continue operating the \nbusiness. \nD. Proper Scope of Authorized Disclosures\nThe rules for disclosures in tax administration proceedings were structured for \ntraditional judicial tax proceedings, where the United States and the taxpayer are \nthe only parties and tax issues are the predominate, if not the sole, reason for the \nproceeding, i.e., Tax Court and refund cases. The rules in section 6103(h) are \nnot well suited to a bankruptcy case, which is a multi-party proceeding that often \ninvolves nontax issues as well as tax claims. For example, under the literal \nterms of section 6103(h)(4)(A), the debtor's return or return information could be \ndisclosed to a creditor who has filed a proof of claim, even if the information has \nno relation to the government's tax claim, since the statute only requires that the \ntaxpayer be a party to the proceeding. This type of disclosure is at odds with the \nobjective of section 6103 to limit disclosures that have no relationship to tax \nadministration. In bankruptcy proceedings, attorneys should consider the rules \nof evidence and other rules governing discovery and disclosure-related matters. \nAccordingly, disclosures under section 6103(h) in bankruptcy cases should be \nlimited to information pertaining to the tax matter that is at issue. For example, if \nthe debtor owes no pre-petition tax liabilities, and the only reason a case pertains \nto tax administration is because the United States Trustee is monitoring \nemployment tax payments, disclosure should be limited to information \nconcerning post-petition employment taxes. The IRS should not in this situation \ndiscuss with creditors the tax consequences of a proposed plan of reorganization \n42 See B.C. § 704(a)(8); Fed. R. Bankr. P. 2015(a)(3). Chapter 11 bankruptcies contemplate that the \ndebtor will engage in some sort of business. But see Toibb v. Radloff, 501 U.S. 157, 160-66 (1991) \n(individual without business can reorganize under Chapter 11), rev’g In re Toibb, 902 F.2d 14 \n(8th Cir. 1990). B.C. § 1108 authorizes the trustee (or debtor in possession) to operate the debtor's \nbusiness. In a Chapter 7, the court may authorize the trustee to operate the debtor's business for a \nlimited period. B.C. § 721. In a Chapter 13, the business of the debtor, if any, may also be continued. \nB.C. § 1304.\n",
" \n6-5 \nunless the debtor consents.43 (However, see below, Part IV.F., for examples of \nauthorized disclosures to creditors.) \nII. STATUTORY FRAMEWORK: DISCLOSURES AUTHORIZED IN BANKRUPTCY \nCASES\nSection 6103 sets forth several interrelated rules that provide the basic legal framework \nfor resolving disclosure issues in the bankruptcy context. These disclosure rules, \ndiscussed in detail hereafter, may be summarized as follows: \nDisclosures to the Debtor – Debtors are entitled to their returns and, if \ndisclosure would not seriously impair federal tax administration, their return \ninformation. I.R.C. § 6103(e)(1), (e)(7). In Chapter 7 and 11 cases involving an \nindividual debtor (where I.R.C. § 1398 applies), the IRS may disclose the returns \nfiled by the trustee on behalf of the bankruptcy estate to the debtor. \nI.R.C. § 6103(e)(5)(B); IRM 11.3.2.4.12(8). \nDisclosures Upon Consent – The IRS shall disclose the debtor's returns and, \nabsent an impairment determination, may disclose the debtor’s return information \nto the debtor, and to any other person with the debtor's written consent. \nI.R.C. § 6103(e)(1), (e)(6), (e)(7), (c). In addition, the debtor and trustees who \nare authorized to receive returns under I.R.C. § 6103(e)(1), (4), or (5), may \nconsent to the disclosure of the debtor’s returns and return information to third \nparties if the requirements of Treas. Reg. § 301.6103(c)-1 are met. See Treas. \nReg. § 301.6103(c)-1(e)(4). \nDisclosures in Judicial Proceedings Pertaining to Tax Administration – If \nthe bankruptcy case pertains to tax administration, the IRS may disclose the \ndebtor’s returns and return information to the court, the trustee, the United States \nTrustee, or other creditors. I.R.C. § 6103(h)(4). While the statute does not \ninclude any limitation on the party to the proceeding’s returns and return \ninformation that may be disclosed under section 6103(h)(4)(A), a good rule of \nthumb is to disclose only the debtor’s returns and return information pertaining to \nthe tax matter at issue in the bankruptcy case. Third-party return information \nmay also be disclosed in the proceeding subject to the item or transaction tests, \nincluding the “directly related” threshold pursuant to section 6103(h)(4)(B) and \n(C).\nDisclosures to Trustees in Chapter 7 and 11 Cases Involving an Individual \nDebtor – In an individual's Chapter 7 or 11 case (where I.R.C. § 1398 applies), \n43 Throughout this Chapter, references are made to disclosures by the IRS during the course of a \nbankruptcy case pertaining to tax administration. Such disclosures are not directly made by the IRS. \nInstead, the IRS makes such disclosures to DOJ for its disclosure, as required, in the course of the \nbankruptcy case.\n",
" \n6-6 \nthe trustee may be required to file a return for the estate of the debtor. This is a \nseparate return than that filed by the debtor. In these cases, the trustee may \nreceive, upon written request, copies of any return filed by the debtor for the year \nin which the petition was filed and for all prior years. I.R.C. § 6103(e)(5)(A); \nIRM 11.3.2.4.12(6). \nIn an involuntary case, no disclosure of the debtor’s return to the trustee shall be \nmade until an order for relief has been entered by the court having jurisdiction, \nunless the court finds that such disclosure is appropriate for purposes of \ndetermining whether an order for relief should be entered. I.R.C. § 6103(e)(5)(C); \nIRM 11.3.2.4.12(7). \nDisclosures to Appointed Trustees with a Material Interest in Debtor’s \nReturn Information – Where a trustee has been appointed in a Chapter 7 or 11 \nbankruptcy or receivership case, the IRS may disclose to the trustee, upon written \nrequest, the debtor’s returns for the current year and for the years prior to the one \nin which the petition is filed. I.R.C. § 6103(e)(4); IRM 11.3.2.4.12(9). \nSection 6103(e)(4) permits disclosures to bankruptcy trustees only if the trustee \nhas a “material interest” in the debtor’s return information. Material interest is \ngenerally defined as a financial or monetary interest. Material interest is not \nlimited to the trustee’s responsibility to file a return on behalf of the bankruptcy \nestate. Section 6103(e)(4) does not generally permit disclosures to the United \nStates Trustee or the standing Chapter 13 trustee. Such disclosures may, \nhowever, be permitted in the context of a judicial proceeding if the bankruptcy case \npertains to tax administration. IRM 11.3.2.4.12(9). \nDisclosure of the Bankruptcy Estate’s Returns – Upon written request, the \ntrustee may obtain the returns of the bankruptcy estate. I.R.C. § 6103(e)(1)(E). \nDisclosure of Return Information – A trustee who may obtain returns under \nsection 6103(e)(1)(E), (4) or (5) may also obtain return information without \nwritten request, unless such disclosure would seriously impair federal tax \nadministration. I.R.C. § 6103(e)(7). \nDisclosures to DOJ – The IRS may disclose returns or return information to DOJ \n(including an IRS attorney acting in a SAUSA capacity) for use in a tax \nadministration proceeding, so long as the tax matter has been referred to DOJ. \nI.R.C. § 6103(h)(2), (3). \nDisclosures to DOJ Before a Referral is Made – The IRS may communicate \nwith DOJ before a referral is made when the Office of Chief Counsel determines \nthat consultation with DOJ on a limited issue or issues is necessary, but these \noccurrences should be infrequent. For example, the IRS may communicate with \nDOJ before a referral on whether DOJ would support a proposed motion in a \nparticular proceeding. These types of consultations with DOJ require that \ndisclosures are necessary for purposes of tax administration and that the scope \n",
" \n6-7 \nof return or return information to be disclosed be no more than that authorized in \nsection 6103(h)(2). The internal determination to consult with DOJ before a \nreferral must be documented in the case file and approved by the same level of \nauthority that would authorize a referral. \nNotwithstanding the above exceptions permitting disclosure, return information need not \nbe disclosed if the IRS determines that the disclosure would seriously impair federal tax \nadministration. I.R.C. § 6103(c), (e)(7). Similarly, in the context of a bankruptcy \nproceeding that pertains to tax administration, the disclosure of returns or return \ninformation shall not be made if the disclosure would identify a confidential informant or \nseriously impair a civil or criminal tax investigation. I.R.C. § 6103(h)(4). \nNote: Debtor’s Duty to Provide Federal Tax Returns – The Bankruptcy \nAbuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Pub. \nL. 109-8, 199 Stat. 23 (effective for cases filed on or after Oct. 17, 2005), \nrequires the debtor to provide copies of returns or transcripts to various \nentities within the bankruptcy case. The IRS has existing procedures, \nwhich comply with section 6103, for debtors to obtain returns or return \ninformation to satisfy their obligations under the BAPCPA and show what \nhas been filed with the IRS. The debtor may fulfill its obligation by \nsupplying tax transcripts. Tax transcripts are available to the debtor at no \ncost by calling the IRS’s toll-free customer service number (1-800-829-\n1040) or by submitting a Form 4506-T to the IRS. In addition, the debtor \ncan also request a copy of his or her filed income tax returns by submitting \na Form 4506 to the IRS. There is a fee for each requested return. If the \nIRS cannot disclose the debtor’s returns to the trustee upon the trustee’s \nrequest (typically, Chapter 13 bankruptcies), the IRS may disclose the \nreturns or transcripts to the trustee if the debtor consents to such \ndisclosure.44 I.R.C. § 6103(c). \n44 B.C. § 521(e)(2)(A) requires the debtor to provide to the trustee a copy of his or her federal income \ntax return (or, at the election of the debtor, a transcript of such return) for the most recent tax year \nending before the commencement of the case. B.C. § 521(f) requires that the debtor provide copies \nof any federal income tax returns, or transcripts of those returns, filed by the debtor for post-petition \nperiods, and copies of any returns/transcripts for certain pre-petition periods that were filed post-\npetition, to the court and parties in the bankruptcy proceeding, if requested. B.C. § 1308 requires that \nChapter 13 debtors file with the IRS before the first meeting of creditors copies of federal income tax \nreturns for taxable periods ending within four years of the bankruptcy petition. In order to ascertain \nwhether Chapter 13 debtors have complied with their filing obligations under section 1308, Chapter \n13 trustees may ask the debtors for copies of transcripts of such returns. Although trustees may wish \nto verify that the returns provided by the debtor were actually filed with the IRS, Congress did not \namend section 6103 as part of the BAPCPA. In such instances, the debtor may consent to the IRS’s \ndisclosure of return information to the trustee. \n",
" \n6-8 \nA. To Debtor and Other Persons with a Material Interest – I.R.C. \n§ 6103(e)(1) \nSection 6103(e)(1) provides that, upon written request, an individual's \"return\" \nshall be open to inspection by or disclosure to that individual. A corporation's \nreturn is generally available upon written request to, among others, persons with \nauthority to act for the corporation. I.R.C. § 6103(e)(1)(D). A person's \"return \ninformation\" may also be disclosed to that person, unless the IRS determines the \ndisclosure will seriously impair federal tax administration. I.R.C. § 6103(e)(7). \nUnder section 6103(e)(1)(B), a tax return filed jointly may be disclosed to either \nspouse with respect to whom the return is filed. Section 6103(e)(7) permits \nreturn information with respect to such jointly filed return to be disclosed to either \nspouse (unless it is determined that disclosure would seriously impair federal tax \nadministration). Thus, in a joint return situation, disclosures to the debtor's \nspouse (whether or not the spouse is also a debtor) are permitted. Information \nwith respect to the jointly filed return may also be disclosed in the bankruptcy \ncase pursuant to section 6103(h)(4). \nB. To Authorized Representative or Designee – I.R.C. § 6103(e)(6) and (c) \nA taxpayer may authorize another person to receive his or her returns or return \ninformation through a power of attorney. I.R.C. § 6103(e)(6) and (7). The IRS's \nstandard power of attorney form (Form 2848) contains language authorizing \ndisclosure. An authorization for purposes of tax administration made by power of \nattorney does not require a separate writing, nor does it require receipt within \n120 days of the date the authorization was signed and dated by the taxpayer as \ndoes a consent made pursuant to section 6103(c) as described below. See\nAppendix for a copy of Form 2848. \nThe taxpayer may also designate in a separate written request a person to \nreceive his returns or return information. I.R.C. § 6103(c). This “general purpose \nconsent” must: (1) pertain solely to the authorized disclosure; (2) be signed and \ndated by the taxpayer; (3) contain the taxpayer's identity information as set forth \nin section 6103(b)(6); (4) provide the identity of the person to whom disclosure is \nto be made; (5) provide the type of return or return information to be disclosed; \nand (6) indicate the taxable years involved. Treas. Reg. § 301.6103(c)-1(a).45 A \ndisclosure consent must be received by the IRS within 120 days of the date the \nconsent was signed and dated by the taxpayer. Treas. Reg. § 301.6103(c)-\n1(b)(2). Form 8821 (Tax Information Authorization) has been designed to meet \nthe requirements of section 6103(c). See IRM 11.3.3.1.1. See also Appendix for \na copy of Form 8821. \n45 The requirements with respect to consents are somewhat more lenient where the taxpayer \nrequests another person to make an inquiry for tax-related information or assistance on the taxpayer's \nbehalf. See Treas. Reg. § 301.6103(c)-1(b).\n",
" \n6-9 \nIn addition, in a bankruptcy case involving the debtor’s tax liabilities, the IRS may \ndisclose to the debtor's attorney of record the debtor's return information, which is \nrelevant to the resolution of those tax matters affected by the proceeding. See\nIRM 11.3.3.1.6(4). An attorney becomes the debtor's attorney of record by filing the \nbankruptcy petition or otherwise entering an appearance in the bankruptcy case. \nWhere the debtor’s attorney requests that the IRS discuss the debtor's return or \nreturn information with an accountant or other expert retained by the attorney, \ndisclosure is not authorized unless the debtor has signed a power of attorney \n(Form 2848), specifically giving the attorney authority to designate another \nindividual to receive the information, or unless the accountant or other expert has \na separate written authorization from the debtor. \nC. To Trustee in Individual Chapter 7 or 11 Cases – I.R.C. § 6103(e)(5) and \n(e)(1)(E) \nSection 6103(e)(5)(A) provides for disclosure of returns to bankruptcy trustees,46\nupon written request, in cases under Chapters 7 and 11 where the debtor is an \nindividual. IRM 11.3.2.4.12(9). In such cases, pursuant to section 1398, a \nseparate taxable bankruptcy estate is created. The estate succeeds to various \ntax attributes of the debtor. I.R.C. § 1398(g). In these cases, disclosure is \nnecessary so that the trustee may determine carryovers to the estate and carry \nback deductions to the preceding years of the debtor. See S. REP. NO. 96-1035, \nat 31-32 (1980). Under section 6103(e)(5)(A), returns of the debtor for the \ntaxable year in which the case commences or any preceding taxable year may \nbe disclosed to the trustee upon the trustee's written request. Also, any return of \nthe bankruptcy estate is open to inspection by the debtor upon the debtor's \nwritten request. I.R.C. § 6103(e)(5)(B). \nA special rule applies in involuntary cases where the bankruptcy case is \ncommenced involuntarily by petitioning creditors against an alleged debtor. In \nsuch cases, there is no debtor until the bankruptcy court enters an order for relief. \nTherefore, there is a period between the time that the petitioning creditors file the \npetition and the court, if warranted, enters its order for relief. No disclosures may \nbe made to the trustee until the order for relief has been entered, unless the court \nfinds that such disclosure is appropriate for purposes of determining whether an \norder for relief should be entered. I.R.C. § 6103(e)(5)(C); IRM 11.3.2.4.12(7). \nUpon written request, the trustee may also obtain the returns of the bankruptcy \nestate. I.R.C. § 6103(e)(1)(E). Section 6103(e)(7) provides that return \ninformation of any taxpayer may be open to inspection by or disclosure to any \n46 The trustee's attorney may also access the debtor's returns, assuming there is a written \nauthorization allowing access to returns, such as a power of attorney. I.R.C. § 6103(e)(6). Being the \ntrustee's attorney of record is not sufficient.\n",
" \n6-10 \nperson authorized by subsection (e) to inspect any return of such taxpayer, \nunless it is determined that disclosure would seriously impair federal tax \nadministration. Note that paragraph (5) allows disclosure of the debtor's returns \nonly for certain years. Implicit in paragraph (7) is a corresponding temporal \nlimitation, i.e., only return information of the debtor that is related to the years for \nwhich the trustee can obtain returns can be disclosed. (Note that there is no \ntemporal limitation on the returns and return information of the bankruptcy estate\nunder section 6103(e)(1)(E) and (e)(7).) \nDisclosures of returns pursuant to paragraphs (e)(1)(E) and (5) also require a \nwritten request. In contrast, a written request is not required for the disclosure of \nreturn information under paragraph (e)(7). Although disclosure of return \ninformation cannot be made if it is determined that disclosure would seriously \nimpair federal tax administration, the disclosure of returns is not subject to such \nlimitation. Note, however, that disclosures made under section 6103(e) do not \ndepend on whether the proceeding involves tax administration, or if the \ndisclosures have a tax administration purpose. Disclosures of return information \nshould not be made pursuant to section 6103(e) where disclosure would \nseriously impair federal tax administration. \nD. To Appointed Trustee with a Material Interest – I.R.C. § 6103(e)(4) \nSection 6103(e)(4) applies to Chapter 7 or 11 bankruptcy or receivership cases \nwhere a trustee is appointed and the debtor is the person with respect to whom \nthe return is filed; in other words, where section 1398 is inapplicable and no \nseparate taxable entity is created. That section allows disclosure, upon written \nrequest, to the trustee or receiver (if substantially all of the debtor’s property is in \nthe hands of a receiver) of the debtor's current and prior years' returns, but only if \nthe IRS finds that the trustee or receiver in his fiduciary capacity has a material \ninterest, which would be affected by the information contained therein. A \nmaterial interest is generally defined as any monetary or financial interest. \nWith a material interest, the trustee would also have access to the debtor's return \ninformation pursuant to section 6103(e)(7) (unless disclosure would seriously \nimpair federal tax administration). As indicated above, while a written request is \nneeded before a return may be disclosed, a written request is unnecessary in \norder for return information to be disclosed, and disclosure does not require a tax \nadministration purpose. In addition, unlike section 6103(e)(5), there is no \ntemporal limitation on the return information that can be disclosed pursuant to \nsection 6103(e)(4). \nIn the bankruptcy context, section 6103(e)(4) generally applies to Chapter 7 or \n11 trustees who have a fiduciary responsibility for filing tax returns of the debtor, \nand not to the United States Trustee or the standing Chapter 13 trustee.\n",
" \n6-11 \nE. To the Department of Justice in Tax Administration Cases – \nI.R.C. § 6103(h)(2)-(3) \nDOJ represents the IRS in tax matters arising before the bankruptcy court. \nDisclosures to DOJ for use in bankruptcy matters, to the extent that the \nbankruptcy case involves tax administration, are governed by subsections \n6103(h)(2) and (3). Section 6103(h)(2) provides in pertinent part as follows: \nIn a matter involving tax administration, a return or return \ninformation shall be open to inspection by or disclosure to officers \nand employees of DOJ (including United States attorneys) \npersonally and directly engaged in, and solely for their use in, a \nproceeding before . . . any Federal . . . court, but only if– \n(A) the taxpayer is or may be a party to the \nproceeding, or the proceeding arose out of, or in \nconnection with, determining the taxpayer's civil or \ncriminal liability, or the collection of such civil liability, \nin respect of any tax imposed under this title; \n(B) the treatment of an item reflected on such return \nis or may be related to the resolution of an issue in \nthe proceeding . . . ; or \n(C) such return or return information relates or may \nrelate to a transactional relationship between a \nperson who is or may be a party to the proceeding \nand the taxpayer which affects, or may affect, the \nresolution of an issue in such proceeding . . . .[47] \nA bankruptcy case pertains to tax administration if the bankruptcy court’s \ninvolvement is or may be needed to determine a matter pertaining to assessment \nor collection of tax, or is otherwise needed to enforce the internal revenue laws. \nI.R.C. § 6103(b)(4). When that nexus is established will depend on the facts of the \nbankruptcy case. \nAs a general rule, before any disclosures may be made to DOJ in a bankruptcy \ncase that pertains to tax administration, the matter must be referred to DOJ for \n47 The \"item\" and \"transaction\" tests for disclosure of third-party returns or return information are \ndiscussed in Part II.F and at greater length in Chapter 3. \n",
" \n6-12 \ntheir representation or advice. I.R.C. § 6103(h)(3)(A).48 A referral for disclosure \npurposes includes any formal request to DOJ for defense, prosecution, or other \naffirmative action with respect to a case. I.R.C. §§ 7401 and 7602(d). \nThus, for example, where the IRS has filed a proof of claim in the bankruptcy \ncase, it becomes a matter involving tax administration, and, upon referral, section \n6103 allows disclosures of the debtor’s returns and return information to DOJ. If \nthe bankruptcy is a tax administration case, then disclosures of returns and \nreturn information may be made to DOJ, to the extent authorized by section \n6103(h)(2)(A)-(C), after a referral determination (that is, DOJ’s assistance is \nnecessary, i.e., appropriate and helpful.) \nDue to pre-petition events, some bankruptcy cases may pertain to tax \nadministration immediately upon the filing of the petition. For example, when the \nIRS has a current notice of lien filed against the debtor’s property prior to the \npetition’s filing, or if the trustee or debtor-in-possession is permitted to operate a \nbusiness post-petition. This example relates to tax administration only for post-\npetition incurred employment taxes and other reporting or filing obligations. If the \nIRS chooses not to pursue its interests in the case, no referral to DOJ for \nrepresentation or advice would be appropriate and no disclosures of returns or \nreturn information to DOJ should be made. Examples of where the IRS might \nchoose not to pursue its interests in a case include Chapter 7 no-asset \nbankruptcies and bankruptcies involving non-dischargeable tax debts. \nSome bankruptcy cases may become tax administration proceedings after the \npetition is filed. For example, the debtor may object to the IRS’s proof of claim, \nor a trustee may initiate an avoidance action against the IRS. Alternatively, the \nIRS may determine that it is necessary to file a proof of claim, request payment \nof administrative expenses, or take some action in the case to invoke the \njurisdiction of the bankruptcy court only after the petition has been filed. For \nexample, the IRS may file a motion to extend the bar date, lift the automatic stay, \nor object to a proposed plan. Each of these actions subjects the IRS to the \nbankruptcy court’s jurisdiction and makes the bankruptcy case a tax \nadministration proceeding. \nIn general, the Office of Chief Counsel requests DOJ’s representation or input \nwhen it is necessary to protect the Service’s interests in a bankruptcy case.49\n48 Section 6103(h)(3)(A) describes IRS-initiated referrals, which are used in most tax administration \ncases. It is possible, however, for DOJ to initiate a referral, pursuant to section 6103(h)(3)(B). This \nform of referral requires a written request for the returns or return information from the Attorney \nGeneral, Deputy Attorney General, or Assistant Attorney General. The written request for information \nmust also state the need for the disclosure. DOJ-initiated referrals are extremely rare, and still \nrequire that the case pertain to tax administration. \n49 The Office of Chief Counsel has previously determined that the Insolvency Unit may have direct \nreferral authority to send smaller bankruptcy matters to DOJ for their representation. See IRM \n34.3.1.1.7. \n",
" \n6-13 \nUsing the same definition that the Service applies to investigatory disclosures, \nthe term necessary “does not mean essential or indispensable, but rather \nappropriate and helpful . . . .\" Treas. Reg. § 301.6103(k)(6)-1(c)(1). \nAs previously noted, the IRS may communicate with DOJ before a referral \ndetermination (the Office of Chief Counsel determines that consultation with \nDOJ on a limited issue or issues is necessary), but these occurrences should be \ninfrequent.50 For example, the IRS may consult with DOJ before a referral \ndetermination on whether DOJ would support a proposed motion in a particular \nproceeding. These types of consultations with DOJ require that disclosures are \nnecessary for purposes of tax administration and that the scope of returns and \nreturn information to be disclosed be no more than that authorized in section \n6103(h)(2). Such requests still require that the bankruptcy be a tax \nadministration proceeding and that the internal determination to consult with DOJ \nbefore a referral determination be documented in the case file and approved by \nthe same level of authority that would authorize a referral.51 See IRM \n11.3.22.12.2. Such consultations are not a blanket authorization to consult with \nDOJ informally throughout the duration of the bankruptcy. \nOnce a referral has been made, attorneys should consider the rules of evidence \nand other rules governing discovery and disclosure-related matters, as well as \nwhat information might assist DOJ in the handling of a matter involving tax \nadministration, to determine the extent of the debtor’s return or return information \nthat is appropriate and helpful to the resolution of the matter. For example, any \nof the debtor’s returns or return information that is related to and helpful in \nresolving the issues or liabilities that the IRS has chosen to pursue in the \nproceeding, including related tax year information as may arise from carryovers \nor carrybacks, may be disclosed to DOJ. The returns and return information of a \nperson other than the debtor may also be disclosed to DOJ if it satisfies the item \nor transaction tests provided in section 6103(h)(2)(B)-(C). \nNote: SAUSA Activities – Generally, only DOJ has authority to represent \nthe United States in the U.S. courts (except the Tax Court). 28 U.S.C. \n§ 516. However, in most federal districts, the U.S. Attorney has \ndesignated one or more field attorneys as Special Assistant United States \nAttorneys (SAUSAs). SAUSAs are permitted to perform a number of \ntasks involving bankruptcy cases. The types of matters that may be \nhandled by SAUSAs are described at IRM 34.11.1. \n50 See General Explanation of the Tax Reform Act of 1976, H.R. 10612, Pub. Law 94-455 (JCS-33-\n76) (J. Comm. Print 1976). \n51 For most bankruptcy cases, Deleg. Order 11-2 (Rev. 17), IRM 1.2.49, assigns the referral authority \nin the Office of Chief Counsel to the Associate Chief Counsel or Division Counsel. This authority may \nbe redelegated to Counsel attorneys directly involved in the matter to be referred. \n",
" \n6-14 \nFor disclosure purposes, a field attorney acting in his or her capacity as a \nSAUSA is treated like a DOJ attorney, since he or she is acting as the \ndesignee of DOJ. Thus, since disclosures to DOJ are generally permitted \nonly if the IRS \"has referred the case to DOJ\" (I.R.C. § 6103(h)(3)(A)), a \nfield attorney acting as a SAUSA may access return or return information \nwith respect to a bankruptcy case only after the case has been referred. \nShort form referral letters have been authorized for matters that may be \nhandled by SAUSAs. The short form letters generally request the U.S. \nAttorney to open a case in the name of the SAUSA.\nF. In Bankruptcy Cases Pertaining to Tax Administration – I.R.C. \n§ 6103(h)(4) \nSection 6103(h)(4)(A) provides rules under which a debtor's returns and return \ninformation may be disclosed in federal judicial and administrative proceedings \npertaining to tax administration. That section provides, in pertinent part, that: \nA return or return information may be disclosed in a Federal \n. . . judicial or administrative proceeding pertaining to tax \nadministration, but only– \n(A) [if] the taxpayer is a party to the proceeding, or the \nproceeding arose out of, or in connection with, \ndetermining the taxpayer's civil or criminal liability, or the \ncollection of such civil liability, in respect of any tax \nimposed under this title[.] \nSection 6103(h)(4) does not specify to whom information may be disclosed, it \nmerely says \"in\" the proceeding. Disclosure “in the proceeding” means a \ndisclosure of returns or return information made to a court (including a court \nreporter or stenographer), a mediator or arbitrator, or to a party to the proceeding \nunder the practices and procedures generally applicable to such proceeding, and \nsubject to any rules governing such proceeding. For example, in particular \nsituations section 6103(h)(4) may authorize disclosures to the court, Chapter 7 or \n11 Trustee, the United States Trustee, the standing Chapter 13 trustee, a creditor \nor the creditors’ committee, among others. See examples at Part IV. \nA literal interpretation of section 6103(h)(4)(A) permits the disclosure of all the \ndebtor's returns and return information to the court or to any party to the \nproceeding. But this type of disclosure is at odds with the objective of section \n6103 to limit disclosures that have no relationship to tax administration. \nAccordingly, after a proper referral to DOJ is made, attorneys should disclose only \nthe debtor’s returns and return information that pertain to the tax matter at issue in \nthe case. For an extensive discussion of when a bankruptcy case pertains to tax \nadministration, and the scope of the information that may be disclosed, see above\nPart I. C. and D. For a discussion of the rules relating to disclosure of third-party \nreturns or return information pursuant to the item and transaction tests of section \n",
" \n6-15 \n6103(h)(4)(B) and (C), see above Part II. See also Chapter 3 for a fuller \ndiscussion of section 6103(h)(4)(A), (B) and (C). \nG. Matters of Public Record\nAs explained more fully in Chapter 2, neither section 6103 nor any other \nprovision of the Code contains any express exception authorizing publication of \nreturns or return information that has become a matter of public record in \nconnection with tax administration. Although this “public record” exception has \nnot been universally accepted, the IRS has determined that disclosure of returns \nor return information is permitted where taken directly from the public record of a \njudicial tax proceeding or made publicly accessible as a result of enforcement \nactivities under the Code. IRM 11.3.11.13. To ensure accurate reporting of \npublic record information, the information disclosed should be drawn directly from \nthe public source document, e.g., an indictment, affidavit, or pleading. Note that \nthe “public record” exception does not apply to information that has appeared \nonly in a newspaper. \nThe same principles apply in bankruptcy cases. Return or return information \nonce disclosed, which is filed with the bankruptcy court, becomes a matter of \npublic record and open to examination. B.C. § 107(b).52\nH. Disclosure Authority: Delegation Order 11-2\nThe authority to permit disclosure of returns or return information under section \n6103, and the authority to permit testimony or the production of documents, is \ndelegated to selected IRS personnel under Delegation Order 11-2. See IRM\n11.3.35.2. Delegation Order 11-2, as well as any pertinent local delegation \norder, should be consulted if there is any question concerning the authority of \nparticular employees, including Counsel attorneys, to make particular \ndisclosures.53\n52 Except as provided in B.C. § 107(b) and (c), papers filed in a bankruptcy proceeding and the dockets \nof a bankruptcy court are public records, open to examination by an entity at reasonable times without \ncharge. B.C. § 107(a). On request of a party in interest, or upon its own motion, a bankruptcy court \nmay protect trade secrets or confidential research, development or commercial information. \nB.C. § 107(b). The court may also protect a person against scandalous or defamatory matters \ncontained in a paper filed with the court. Id.\n53 The authority to disclose returns and return information under section 6103(h)(1), (h)(4), and (k)(6) \nis not delegated because the provisions themselves permit officers and employees of the IRS and \nOffice of Chief Counsel to disclose such information. Deleg. Order 11-2 (Rev. 17), IRM 1.2.49 \n(second full paragraph). \n",
" \n6-16 \nIII. EVIDENCE OF CRIMINAL VIOLATIONS\nWhile handling a bankruptcy case, an IRS or Chief Counsel employee may obtain or \ndevelop information that indicates that a federal criminal offense may have been \ncommitted. The information may indicate a tax offense under Title 26 and/or a nontax \noffense, including, among others, bankruptcy fraud under 18 U.S.C. § 157 or money \nlaundering under 18 U.S.C. §§ 1956-57. The evidence may implicate the debtor, the \ntrustee, a third party or a representative in the proceeding. In these situations, questions \narise as to the proper use of the information in civil proceedings, authority to refer the \ninformation for criminal investigation, and the proper persons to whom to make the referral. \nA. Disclosure in the Civil Proceeding\nThe debtor's returns and return information and, under certain circumstances, the \nreturns and return information of third parties, may be disclosed in a civil \nproceeding (including a bankruptcy case), even if it indicates a violation of a \nnontax criminal provision, as long as it directly relates to the tax administration \npurpose in the proceeding. For example, the debtor may be concealing assets, \nwhich would indicate a violation of 18 U.S.C. § 152 (concealment of assets, false \noaths and claims, bribery). This information could be disclosed to DOJ in order \nto commence a civil proceeding as part of the bankruptcy case to bring the \nassets into the bankruptcy estate. I.R.C. § 6103(h)(2), (4). The information may \nbe disclosed in the civil proceeding by the IRS or DOJ (or a SAUSA) to the \nbankruptcy court, the trustee, or the United States Trustee, pursuant to section \n6103(h)(4). In addition, such information may be disclosed to the Chapter 7 or \n11 trustee pursuant to section 6103(e). Similarly, evidence that the trustee has \ncommitted negligent or illegal acts may properly be disclosed as part of the civil \nproceeding to the United States Trustee who has oversight responsibility. \nIn turn, the above information may be referred by the judge, the Chapter 7 or 11 \ntrustee, the United States Trustee, or the United States Attorney for criminal \ninvestigation of possible bankruptcy fraud or other violations, pursuant to their \nauthority under 18 U.S.C. § 3057 and 28 U.S.C. § 586(a)(3)(F).54\n54 Pursuant to 18 U.S.C. § 3057, any judge, receiver, or trustee having reasonable grounds for \nbelieving that a violation of the bankruptcy fraud provisions has been committed or that an \ninvestigation should be had in connection therewith, must report to the appropriate U.S. Attorney all \nthe facts and circumstances of the case, the names of the witnesses, and the offense or offenses \nbelieved to have been committed. In addition, when the United States Trustee considers it to be \nappropriate, he or she may notify the appropriate U.S. Attorney of matters which relate to the \noccurrence of any action which may constitute a crime under the laws of the United States. \n28 U.S.C § 586(a)(3)(F). \n",
" \n6-17 \nB. Referral for Use in a Criminal Investigation\nFor disclosure purposes, a criminal investigation or prosecution arising from \nfraud committed during a bankruptcy case is a separate proceeding from the civil \nbankruptcy case (just as a criminal tax fraud prosecution is separate from the \ncivil determination of a taxpayer's tax liability). The IRS's ability to disclose \nreturns or return information for purposes of a criminal prosecution is explicitly \nregulated by section 6103 and must be justified separately from the civil case \nreferral. \nIf an IRS employee discovers, in a bankruptcy case, evidence of a potential tax \noffense under Title 26, a nontax offense under the money laundering provisions, \ninformation that may be of interest in anti-terrorism efforts, or any other violation \nwithin the IRS's jurisdiction, the matter of potential criminal liability should be \nreferred to Criminal Investigation. If Criminal Investigation determines that the \nevidence involves a violation of Title 26, the matter may be referred to DOJ for \nprosecution (after administrative investigation) or grand jury investigation, \nfollowing the normal referral path for criminal tax cases. Section 6103(h)(2)-(4) \npermits disclosure of the information for purposes of a Title 26 investigation and \nprosecution. \nMoreover, the section 6103(h) regulations also permit information that has been \ndisclosed for a criminal tax investigation or prosecution to be used for the \ninvestigation or prosecution of a nontax criminal offense (such as bankruptcy \nfraud), provided: \nsuch [nontax] matter involves or arises out of the particular facts \nand circumstances giving rise to the [tax] proceeding (or \ninvestigation) . . . and further provided the tax portion of such \nproceeding has been duly authorized by or on behalf of the \nAssistant Attorney General for the Tax Division of the Department \nof Justice, pursuant to the request of the [Commissioner] . . . . \nTreas. Reg. § 301.6103(h)(2)-1(a)(2). However, the regulations also provide \nthat, if the tax administration portion of the proceeding or investigation is later \nterminated, e.g., DOJ drops the Title 26 charges, returns and \"taxpayer return \ninformation” (i.e., return information that came from the taxpayer or the \ntaxpayer’s representative), cannot be used subsequently in the nontax \ninvestigation or prosecution without an ex parte court order under section \n6103(i)(1). Note that the U.S. Attorney may rely on the tax information in his \npossession to complete the application for the ex parte order. Treas. Reg. \n§ 301.6103(h)(2)-1(a)(2)(ii). Information other than returns and taxpayer return \ninformation can still be used by DOJ after dropping the Title 26 charges. \nIf the evidence shows only a violation of a nontax criminal statute, such as \nbankruptcy fraud (or if, after investigation, Criminal Investigation determines the \nevidence shows only a nontax criminal violation), the matter may be disclosed to \n",
" \n6-18 \nDOJ only under the procedures authorized in section 6103(i). These alternative \ndisclosure routes are depicted in summary form in the chart found at the end of \nthis chapter. See Chapter 5, for more information pertaining to disclosures of \nreturns and return information for nontax criminal matters. \nIV. EXAMPLES\nA. Debtor's Attorney\nExample 1 - Individual A files a petition in bankruptcy, listing Individual B as the \nattorney of record. The government has not filed a proof of claim or been named \nas a defendant in an adversary proceeding or a party to a contested matter. The \nIRS has made a pre-petition levy and B wants to negotiate a cash collateral \nagreement and/or obtain turnover of the property without incurring unnecessary \nlitigation expenses. The IRS may discuss A's return information with B. \nI.R.C. § 6103(e)(6); IRM 11.3.3.1.6 (4). Reference: Part II.B. \nB. Bankruptcy Court\nExample 2 - The debtor is operating a business and has failed to file pre-petition \nemployment tax returns. SBSE Area Counsel has reason to believe, based on the \nbusiness and/or other activities of the debtor, that the debtor has employment tax \nliabilities. The debtor’s disclosure statement fails to list any employment tax \nliabilities. The IRS may make a referral to DOJ and ask that DOJ object to the \nadequacy of the disclosure statement. The case becomes one pertaining to tax \nadministration at the time of the IRS's objection. Upon objection, the IRS could \ndisclose the debtor's return information in the objection or in any subsequent \nproceedings pertaining to the objection. I.R.C. § 6103(h)(2) and 6103(h)(4). \nReference: Parts I.C., I.D., II.F. \nExample 3 - The Chapter 7 debtor files an adversary proceeding seeking a \ndetermination that his 2003-2006 income taxes are dischargeable. See\nB.C. §§ 507(a)(8); 523(a)(1)(B)(i). The taxes will not be discharged because the \ndebtor did not file returns. B.C. § 523(a)(1)(B)(i). The IRS may disclose this \nduring the bankruptcy case. I.R.C. § 6103(h)(4). Reference: Parts I.C., I.D., II.F. \nExample 4 - The debtor files a petition under Chapter 13, owing no pre-petition \ntaxes. The bankruptcy court confirms the debtor's Chapter 13 plan. After \nconfirmation, the debtor incurs tax liabilities that are not paid. The IRS may \ndisclose this information to the court in a proof of claim filed pursuant to section \n1305 of the Bankruptcy Code, a motion to dismiss or convert the case, or other \nappropriate pleading. I.R.C. § 6103(h)(4). Reference: Parts I.C., I.D., II.F. \n",
" \n6-19 \nC. 341 Meeting \nExample 5 - The United States Trustee convenes and presides over a first \nmeeting of the debtor's creditors. B.C. § 341; Fed. R. Bankr. P. 2003. This first \nmeeting of creditors is held shortly after the petition is filed, typically before the \nIRS has filed its proof of claim for pre-petition taxes. During this meeting, the \ndebtor is examined under oath by interested creditors. The purpose of the \nexamination is to enable creditors and the trustee to determine the assets and \nliabilities of a debtor. An IRS employee may attend this meeting to elicit \ninformation concerning outstanding tax liabilities and to discern whether there are \npersons potentially responsible for unpaid trust fund taxes pursuant to the \nsection 6672 penalty. If the IRS is listed as a creditor in the debtor's schedules, \nthe IRS employee may disclose in the 341 meeting return information which will \nassist in the examination of the debtor. I.R.C. § 6103(h)(4). Reference: Parts \nI.C., II.F. \nD. United States Trustee \nExample 6 - In a Chapter 11 case, the debtor-in-possession has failed to file \npost-petition employment tax returns or deposit post-petition employment taxes. \nAn IRS employee may disclose this information to the United States Trustee, or \nthe IRS may verify this information at the United States Trustee’s request. \nI.R.C. § 6103(h)(4). In addition, the IRS may disclose this information to the \ncourt in a request for payment of administrative expenses, in a motion to convert \nor dismiss, or other appropriate pleading. The information may also be \ndiscussed at any hearing held on such motion. Reference: Parts I.C., I.D., II.F. \nExample 7 - The IRS learns that the debtor has property interests that he has not \ndisclosed to the bankruptcy court (or has committed some other act that may \nconstitute bankruptcy fraud). If the bankruptcy case pertains to tax \nadministration (e.g., the IRS has filed a proof of claim and made a referral to \nDOJ), this information may be disclosed to the court and to the United States \nTrustee in order to assist in collecting the IRS's claim. I.R.C. § 6103(h)(4). If the \ncase does not pertain to tax administration, the procedures in section 6103(i) \nmust be followed in order to make any disclosures. \nE. Trustee for the Case\nExample 8 - Several creditors file an involuntary petition in bankruptcy against \nthe debtor, an individual. The court has not yet entered an order for relief. The \nIRS has information indicating that debtor is insolvent (i.e., generally not paying \ndebts as they come due), which is relevant to determining whether the court \nshould grant an order for relief. B.C. § 303(h). No trustee has been appointed. \nThe case does not pertain to tax administration. Creditors subpoena the IRS \nrecords for use at the court hearing. The IRS should oppose the subpoena on \n",
" \n6-20 \nthe basis that section 6103(e)(5)(C) and (e)(7) only permits disclosures to the \ntrustee, not to creditors. Reference: Part II.C. \nExample 9 - In a Chapter 7 \"no-asset\" liquidation case, the debtor, an individual, \nhas no outstanding tax liabilities, and the IRS has not filed a proof of claim. The \ndebtor, a calendar year taxpayer, filed his petition in bankruptcy on \nNovember 1, 2008, and subsequently moved from the residence listed on the \npetition. In July 2010, the trustee asks the IRS for the debtor's latest address. \nThis address would come from the debtor's 2009 return. The address cannot be \ndisclosed because it is return information from a year subsequent to the \ncommencement of the case. I.R.C. § 6103(e)(5). Reference: Part II.C. \nExample 10 - In attempting to recover a fraudulent transfer, the trustee requests \nthe debtor's return for a year prior to the filing of the petition to see how a \ntransaction was treated. Upon written request, the return may be disclosed to \nthe trustee. I.R.C. § 6103(e)(4), (5). Reference: Parts II.C., II.D. \nExample 11 - The IRS has knowledge of a pre-petition transfer of property \nwithout adequate consideration from the debtor to her daughter. The bankruptcy \ncase is a Chapter 7 \"no-asset\" liquidation case in which the IRS has not filed a \nproof of claim. If the transferred property were an asset of the estate, the IRS \nwould have priority over some of the debtor's other creditors, and could thus \nobtain a portion of any proceeds of sale. The IRS may disclose the transfer to \nthe trustee, so that the trustee could commence an action to bring the property \ninto the bankruptcy estate for administration. I.R.C. § 6103(e)(5), (7). \nReference: Part II.C. \nExample 12 - The trustee in a Chapter 13 bankruptcy requests that the IRS verify \nthat the returns provided by the debtor were actually filed with the IRS. Absent \nthe debtor’s consent made pursuant to section 6103(c), the IRS cannot disclose \nthe requested information to the trustee. I.R.C. § 6103(c). Reference: Part II.D. \nF. Creditors\nExample 13 - A creditor (or the creditors' committee) or interested party in the \nbankruptcy case seeks to contest the amount or priority of the IRS's claim. After \nthe contested matter has been commenced, the creditor may obtain the debtor's \nreturn information to contest the amount or priority of the IRS’s claim pursuant to \nsection 6103(h)(4) (unless disclosure would identify a confidential informant or \nseriously impair a civil or criminal tax investigation). Although it would be \nunusual for a creditor to object to the claim of another creditor, B.C. § 502(b) \nwould permit such an objection. Reference: Parts I.C., I.D., II.F. \nExample 14 - A previously uninvolved creditor wants information about the \ndebtor's tax situation in considering the debtor's request for fresh financing. Since \nthe creditor is not yet a party or party in interest to the proceeding, the creditor \n",
" \n6-21 \ncould not obtain the information pursuant to section 6103(h)(4). However, the \ncreditor may obtain the information by securing a written consent from the debtor \nfor release of the information. I.R.C. § 6103(c). Reference: Parts I.C., I.D., II.F. \nExample 15 - A creditor wants to obtain general information concerning the \nexistence or amount of a federal tax claim, the filing date for the Notice of Federal \nTax Lien, or the date of the assessment. If the IRS has filed a claim, and the \ncreditor is a party to the proceeding, this information would be available under \nsection 6103(h)(4). This information is in the public record (the date of \nassessment is on the Notice of Federal Tax Lien), and may be disclosed. In \naddition, the IRS may disclose the fact that no claim has been filed. However, to \nthe extent a claim has not yet been filed, and the case does not otherwise pertain \nto federal tax administration, the IRS would be prohibited from disclosing whether \na claim will or will not be filed or its other intentions with respect to the debtor. \nReference: Parts I.C., I.D., II.F., II.G. \nExample 16 - The attorney for the creditors' committee inquires about the status \nof negotiations between debtor and the IRS concerning a shortfall in payments to \ndebtor's pension plan, which forms the basis for the IRS's proof of claim. The \nattorney also inquires as to the IRS’s position with respect to a proposed plan of \nreorganization as it relates to the IRS's claim. This information may be disclosed \nunder section 6103(h)(4). Reference: Parts I.C., I.D., II.F. \nExample 17 - As part of a plan of reorganization, the debtor will transfer the bulk \nof her property to a liquidating trust for the benefit of creditors. The attorneys for \nthe creditors' committee wish to know the IRS’s position with respect to: (1) the \ntax consequences to the debtor or the estate of the transfer; and (2) the taxation \nof the liquidating trust. Absent the debtor's consent, the tax consequences of the \ntransfer, i.e., whether and to what extent the debtor or the estate recognizes gain \nor loss, should not be discussed with the creditors' committee's attorneys unless \nand until the IRS takes some formal action in the case regarding the transfer, i.e.,\nobjecting to the plan and/or attempting to have an escrow or reserve set aside for \nany resulting tax. Because a trust's returns and return information may be \ndisclosed to any beneficiary (if the IRS determines that the beneficiary has a \nmaterial interest that will be affected by the information), the creditors could \ndiscuss with the IRS the taxation of the liquidating trust. I.R.C. \n§ 6103(e)(1)(F)(ii), (e)(7). (Further, this would not prevent the IRS from \ndiscussing such matters with the debtor, nor would it prevent the debtor from \nmaking a ruling request regarding the tax consequences of the transaction.) \nReference: Parts I.C., I.D., II.B., II.F. \nExample 18 - The IRS possesses a large income tax refund that is scheduled as \nan asset of the debtor. The IRS is not otherwise involved in the bankruptcy case. \nAnother federal agency has a claim against the debtor. The case does not \npertain to tax administration and disclosure of this information to the other \nagency would not be permitted under section 6103(h)(4). However, because the \n",
" \n6-22 \nschedule of assets is in the public record, the IRS may notify the agency that the \nschedule lists the tax refund as an asset of the estate. See discussion, above \nand Chapter 2, concerning matters of public record. The IRS would not, \nhowever, be able to disclose any information from its administrative file, such as \ninformation that may confirm the existence or amount of the claim for refund. \nThe other agency may inform the IRS of such claim and ask that the IRS freeze \nthe refund so it is available for administrative offset (assuming that relief from the \nautomatic stay is obtained or the stay is no longer in effect). In response to the \nrequest, the IRS, without confirming the existence or amount of refund if not \nreflected in the public record, will freeze any refund that might be owing. See\nI.R.C. §§ 6103(l)(10), 6402(d). Reference: Part II.G. \nG. Department of Justice \nExample 19 - The United States Attorney, representing the Department of \nDefense, wants access to a Chapter 7 debtor's returns in order to develop \ninformation on which to base an objection to discharge. The debtor has timely \nfiled all employment tax returns, and is not otherwise delinquent in any tax \nobligations. Disclosure is not permitted because the case does not involve tax \nadministration. Reference: Parts I.C., I.D., II.E. \nExample 20 - The debtor is currently under audit. The IRS may advise DOJ that \nthe debtor is under audit if each of the following conditions is met: (a) the \nbankruptcy pertains to tax administration; and (b) an appropriate referral has \nbeen made. The audit information disclosed should be relevant to the tax \nadministration aspects of the bankruptcy case. Reference: Parts I.C., I.D., II.E. \nExample 21 - A debtor who recently filed for bankruptcy is currently under \nexamination. The audit is not going to be resolved by the bar date for filing proofs \nof claim. The IRS should determine whether a motion to extend the bar date \nshould be filed. Upon deciding to seek an extension, a referral should be made to \nrequest DOJ’s representation. After the referral, the disclosure of items of returns \nand return information necessary, i.e., helpful and appropriate, to support the \nmotion may be made (e.g., a description of the complexity of the audit or the \ninvolvement of the listed transaction). Reference: Parts I.C., I.D., II.E. \nExample 22 - A DOJ attorney is aware of the bankruptcy filing by a highly visible \nindividual. The DOJ attorney calls the IRS and asks what the IRS plans to do in \nthe case. Although there is an ongoing audit, the agent believes that an \nagreement will be reached with respect to most issues. Such information cannot \nbe disclosed to DOJ attorney unless and until the IRS determines that it will be \nfiling a motion or a proof of claim in the bankruptcy. Reference: Parts I.C., I.D., \nII.E.\nExample 23 - A corporate debtor with 150 related entities, only some of which are \npart of the consolidated group, files for bankruptcy. The debtors agree to a \n",
" \n6-23 \nstipulation that will allow the federal government to negotiate a combined proof of \nclaim from the IRS for the entire consolidated group, since all are severally liable \nfor the liabilities. The request for stipulation makes the bankruptcy case a tax \nadministration proceeding even though the IRS has not yet filed a claim. If the IRS \ndetermines that DOJ’s representation is necessary, a referral may be made so as \nto allow DOJ to negotiate with the debtor on the IRS’s behalf. The returns and \nreturn information of related entities outside the consolidated group may be \ndisclosed to DOJ so long as such information is necessary to fulfill the purpose of \nthe referral and meets the requirements of section 6103(h)(2)(B)-(C). Reference: \nParts I.C., I.D., II.E.\nH. Criminal Violations \nExample 24 - The IRS is aware, from a prior schedule of assets filed in a Tax \nCourt case or in a Collection Information Statement, that the debtor has omitted \nassets from the bankruptcy schedules. The IRS has filed a proof of claim, and \nwould benefit from having the assets included in the debtor's estate. This \ninformation may be disclosed in the bankruptcy case in order to obtain the return \nof the assets to the bankruptcy estate. I.R.C. § 6103(h)(4). In addition, to the \nextent that omitting the assets constitutes both a crime under Title 26 and the \nbankruptcy fraud provisions, disclosure could be made in connection with a \ncriminal tax referral as a tax administration matter. I.R.C. § 6103(h)(2); Treas. \nReg. § 301.6103(h)(2)-1(a)(2). Reference: Parts I.C., I.D., II.E., II.F., II.G., III.B. \nExample 25 - The facts are the same as in Example 24, except the debtor is in \nfull compliance with the tax laws and the case is not otherwise a tax \nadministration proceeding. Disclosure to the United States Attorney of \ninformation regarding the omitted assets is not permitted under section \n6103(h)(2). The result should be the same even if the IRS is monitoring the \ntaxpayer for post-petition tax compliance. Disclosure under these circumstances \nwould only be permitted under section 6103(i). However, if the debtor's schedule \nof assets is in the record in the Tax Court proceeding, the \"public record \nexception\" may permit disclosure. See discussion, above and Chapter 2, \nconcerning matters of public record. Reference: Parts I.C., I.D., II.E., II.G., III.A \nand B. \nI. Debtor's Employees/Customers \nExample 26 - The debtor's employees may be interested in the debtor's continued \nfinancial health, or, at the very least, in obtaining wage payments. To the extent \nthat the employees are creditors, e.g., with respect to wages, disclosure could be \npremised on section 6103(c) (consent) or (h)(4) (tax administration). The same \nrules would apply to the debtor's customers, to the extent that the customer is a \n",
" \n6-24 \ncreditor, e.g., with respect to undelivered goods.55 In addition, the “public record \nexception” may permit certain disclosures to customers or employees, such as the \namount of the IRS's claim. Further, if the employees also are one-percent \nshareholders, information may be available under section 6103(e)(1)(D)(iii) and \n(e)(7). Reference: Parts I.C., I.D., II.B., II.F., II.G. \nJ. Debtor's Spouse\nExample 27 - In a Chapter 13 case, the IRS has filed a proof of claim with \nrespect to tax due on a jointly filed return. The husband and wife are separated, \nand only one spouse has filed for bankruptcy. The debtor spouse has asserted \nthat the non-debtor spouse forged her signature on the joint return. Returns and \nreturn information with respect to the jointly filed returns would be available to \neither spouse under section 6103(e). Also, returns and return information with \nrespect to the jointly filed returns could be introduced in the bankruptcy \nproceeding under section 6103(h)(4). The determination that the bankruptcy \ncase is a tax administration proceeding may also permit disclosure of returns and \nreturn information relating solely to the non-debtor spouse's separate return \nyears, if it meets the \"item\" or \"transaction\" tests in section 6103(h)(4)(B) or (C). \nReference: Parts I.C., I.D., II.A., II.F. \nExample 28 - Husband and wife file separate income tax returns. Husband files \nfor bankruptcy under Chapter 7. The trustee seeks wife's returns to assist in \ndetermining what property is in the estate. Wife's separately filed returns may \nnot be disclosed without her consent (unless otherwise authorized under section \n6103(h)(4)(B)-(C)). Reference: Parts II.A., II.B. \nK. Significant Bankruptcy/Insolvency Case Program under CCDM 34.3.1.3 \nExample 29 - As a result of reviewing a plan of reorganization in a Chapter 11 \nbankruptcy, pursuant to CCDM 34.3.1.3.4, an Associate Chief Counsel’s office \nprovides oral and written advice to Counsel and the IRS regarding the validity of \na purported asset sale. Counsel also determines that certain statements made \nin the disclosure statement regarding the tax consequences of the plan are \nobjectionable. The IRS may disclose this information in an objection to the \ndisclosure statement filed with the court, and that same information may be \ndiscussed at any subsequent proceeding regarding the objection.56 Reference: \nParts I.C., I.D., II.A., II.B., II.F. \n55 Disclosure in this situation may also be permissible under section 6103(k)(2) where a federal tax \nlien is filed. \n56 If the IRS does not file an objection in the bankruptcy case, disclosure of the objections would not \nbe permitted in the bankruptcy case pursuant to section 6103(h)(4). However, the IRS could discuss \nthe plan and the IRS’s objections with the debtor or with the debtor’s attorney of record. \nIRM 11.3.3.1.6.(4). The information could also be discussed with creditors or the court pursuant to a \nwritten consent executed by the debtor pursuant to section 6103(c). \n",
" \n6-25 \nL. Third-Party Return Information\nExample 30 - A plan of reorganization attempts to designate payments to trust \nfund taxes. The responsible officers have significant unpaid tax liabilities from \nother businesses or unpaid 1040 liabilities. The information pertaining to \nresponsible officers is third-party return information. Such information cannot be \ndisclosed because the third-party return information is not directly related to the \nresolution of an issue in the proceeding nor is such information directly related to \na transactional relationship between a person who is a party to the proceeding \nand the taxpayer which directly affects the resolution of an issue in the \nproceeding. See I.R.C. § 6103(h)(4)(B) and (C). As such, the IRS cannot \ndisclose these other liabilities in its objection to the plan. Reference: Parts I.C., \nI.D., II.F. \nExample 31 - The trustee, in attempting to recover a fraudulent transfer, requests \nthe debtor's principals' returns to see how a transaction was treated. If the case \npertains to tax administration, information in the debtor’s principals' returns will \narguably meet the item or transaction tests if it is directly related to the resolution \nof an issue in the proceeding. If the transfer does not impair the IRS's ability to \ncollect the tax, the information should not be disclosed because it is not directly \nrelated to resolving the matter. If the proceeding does not otherwise pertain to \ntax administration, the third-party returns and return information may not be \ndisclosed. Reference: Parts I.C., I.D., II.F. \nExample 32 - The principal of a Chapter 11 debtor proposes in the plan that his \nindividual income tax refund be applied to corporate debts. These refunds are \nnot available because the section 6672 penalty has been assessed or because \nthe individual owes past income tax liabilities. This information may be disclosed \nto DOJ and in bankruptcy court. I.R.C. § 6103(h)(2) and (4)(C). Reference: \nParts I.C., I.D., II.F. \nExample 33 - The trustee seeks to prove that an entity related to the debtor is the \nalter ego of the debtor, in order to bring its assets into the estate. The trustee \nseeks to obtain the non-debtor entity's returns (or to determine whether the entity \ndid not file returns) in order to prove the relationship. In a tax administration \ncase, the existence of the alter ego relationship establishes the requisite \n\"transactional relationship.\" The information may be disclosed under section \n6103(h)(4)(C), if it bears on the IRS's tax claim and directly affects the resolution \nof an issue in the proceeding. Reference: Parts I.C., I.D., II.F. \nExample 34 - The basis for the IRS's proof of claim is the debtor's erroneous \ntreatment of certain individuals as independent contractors rather than \nemployees. The IRS has computed the debtor's liability for withheld income and \nFICA taxes under section 3509. The debtor seeks to obtain credit for the amount \nof income and self employment tax paid by those employees, to reduce the IRS's \nclaim. While there is a transactional relationship between the debtor and those \n",
" \n6-26 \nindividuals, the amount of tax reported by individual employees is not relevant \n(and the employer does not get credit for such taxes) because an employer \nwhose liability is determined under section 3509 is not entitled to recover from \nthe employee any tax so determined. Thus, the individuals' returns and return \ninformation may not be disclosed. However, to the extent that the information is \ndirectly related to resolving whether the individuals are employees or \nindependent contractors, such information may be disclosed. See Guar. Mut. \nLife Co. v. United States, Civ. No. 77-0-407, 1978 WL 4574 (D. Neb. Aug. 28, \n1978); Cory Pools v. United States, 213 Ct. Cl. 751, 751-52 (1977); L.A.S. \nEnters., Inc. v. United States, 213 Ct. Cl. 698, 699-700 (1977). Reference: Parts \nI.C., I.D., II.F. \n",
" \n6-27 \nDisclosure of Returns and Return Information Indicating Possible Nontax Criminal Violations\nI. \nTax Administration Cases*\nInternal Revenue Service\nI.R.C. § 6103(h)(4) \nBankruptcy Court \n18 U.S.C. § 3057 \nUnited States Attorney \nInternal Revenue Service\nI.R.C. § 6103(h)(4) \nUnited States Trustee \n28 U.S.C. § 586 \nUnited States Attorney \nInternal Revenue Service\nI.R.C. § 6103(h)(4) \nTrustee \n18 U.S.C. § 3057 \nUnited States Attorney \nNontax violation involves or arises out of same facts as Title 26 (or related Title 18 violation) \nInternal Revenue Service\nDOJ Tax Division/United States Attorney \nI.R.C. § 6103(h)(2), (3); Treas. Reg. § 301.6103(h)(2)-1(a)(2) (requires referral) \nII. \nNontax Administration Cases\nAny Return or Return Information \nInternal Revenue Service \nI.R.C. § 6103(i)(1) -- Ex Parte Court Order \nUnited States Attorney \nReturn Information Other Than Taxpayer Return Information \nInternal Revenue Service \nI.R.C. § 6103(i)(2) -- Written Request \nUnited States Attorney \nReturn Information Other Than Taxpayer Return Information \nInternal Revenue Service \nI.R.C. § 6103(i)(3) -- Written Notification \nDOJ/United States Attorney \nIII. \nAny Case (Tax or Nontax) Where a Trustee Has Been Appointed\nInternal Revenue Service\nI.R.C. § 6103(e)(4), (5) \nTrustee \n18 U.S.C. § 3057 \nUnited States Attorney \n* In general, a bankruptcy case pertains to tax administration if the bankruptcy court’s involvement is needed to determine a matter pertaining to \nassessment or collection of tax, or is otherwise needed to enforce the internal revenue laws. \n",
" \n7-1 \nCHAPTER 7 \nBANK SECRECY ACT, MONEY LAUNDERING, FORFEITURE \nAND RETURN INFORMATION \nI. TITLE 31 – BANK SECRECY ACT \nA. Introduction \nThe Bank Secrecy Act (BSA) was enacted by Congress in 1970 to address law \nenforcement officials’ concerns regarding the unavailability of foreign and \ndomestic bank records of customers who were suspected of being engaged in \nactivities entailing criminal or civil liability. See Pub. L. No. 91-508, 84 Stat. 1114 \n(1970) (codified at scattered sections of 12, 18, and 31 U.S.C), amended by Pub. \nL. No. 107-56, 115 Stat. 327 (2001). \nThe basic purpose of the BSA is to require certain reports or records that have a \nhigh degree of usefulness in criminal, tax, or regulatory investigations or \nproceedings. 31 U.S.C. ' 5311. Regulations were promulgated under the BSA \nto require, for example, that each financial institution, other than a casino, shall \nfile a report of each deposit, withdrawal, exchange of currency or other payment \nor transfer, by, through, or to the financial institution that involves a transaction in \ncurrency of more than $10,000. 31 C.F.R. ' 103.22. These reports must be filed \nwith the IRS. 31 C.F.R. ' 103.27(a)(4). These reporting requirements are \ngenerally implemented through the use of Currency Transaction Reports (CTRs), \nFinCEN Form 104. The BSA and its implementing regulations contain several \nother reporting requirements, all of which are intended to prevent and/or uncover \nvarious financial crimes. \nInformation evidencing the fact of a payment, receipt, or transfer of currency in \namounts over $10,000 has tax implications for all parties to the transaction. \nDepending on the particular circumstances, this information could disclose: (1) \nthe nature, source, or amount of the taxpayer's income; (2) his payments or \nreceipts; (3) his assets or liabilities; or (4) data received by the IRS with respect \nto the determination of the possible existence of liability under Title 26. Of \ncourse, if the information was collected by the IRS in administering the internal \nrevenue laws, it would be protected from disclosure by section 6103 because \nthese items are specifically listed in the definition of return information in section \n6103(b)(2). \nThe BSA legislative reports stressed how the recordkeeping and reporting \nrequirements of the BSA would address a wide range of law enforcement \ninvestigatory and regulatory concerns. H. R. REP. NO. 91-975 (1970); S. REP.\nNO. 91-1139 (1970). In its discussion of Treasury’s authority to prescribe \nrecordkeeping requirements for owners of foreign bank accounts, the Senate \n",
"7-2 \nReport stated that \"the Secretary would not be limited to the narrower objectives \nof the Internal Revenue Code, but rather the objectives spelled out\" in the \nCurrency and Foreign Transactions Reporting section of the Act. \nS. REP. NO. 91-1139, at 9 (emphasis added). Congress never intended for the \nBSA to be primarily a tax enforcement tool; rather, it sought to enact expansive \nlegislation to aid the enforcement of numerous federal laws including the internal \nrevenue laws. See Cal. Bankers Ass’n v. Schultz, 416 U.S. 21 (1974). \nB. Title 31 and Title 26\nWhen it enacted section 6103 in 1976, Congress acknowledged that the primary \nresponsibility of the IRS is the enforcement of the internal revenue laws. The \nBSA was an existing statutory scheme that Congress evidently did not consider \nin drafting section 6103. Nor was the BSA considered when section 6103 was \nrevised in 1982 to streamline access procedures for nontax federal criminal \ncases found in section 6103(i), which provides for disclosures to federal officers \nor employees for administration of federal laws not relating to tax administration. \nSee Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. No. 97-248, \n' 356(a), 96 Stat. 324, 641-45 (1982); section 358(a) of 96 Stat. at 646-47; \nsection 358(b)(1) of 96 Stat. at 648; section 358(b)(2) of 96 Stat. at 648. See also\nChapter 5 for additional information on section 6103(i). Nevertheless, Treasury \ndelegated primary investigative jurisdiction for possible criminal violations of the \nBSA to the IRS. 31 C.F.R. ' 103.56(c)(2); Treas. Dir. 15-41 (Dec. 1, 1992). \nDisclosure issues can, and often do, arise when IRS agents attempt to fulfill their \nobligations under both the BSA and the Code.57\nPursuant to section 6103(h)(1), returns and return information shall, without \nwritten request, be open to inspection by or disclosure to officers and employees \nof the Department of Treasury (including IRS employees) whose official duties \nrequire such inspection or disclosure for tax administration purposes. See\ngenerally Chapter 3. When seeking to access returns or return information while \nconducting a BSA investigation, which is not a tax administration purpose, the \nIRS agent must be treated as if he or she were an employee of another federal \nagency, and must rely on some other authority in section 6103 to obtain the \ninformation. Generally, where special agents are assisting other agencies in \nnontax criminal investigations, no disclosures can be made to those special \nagents unless section 6103(i) procedures are followed. See generally Chapter 5. \n57 Whereas Criminal Investigation (CI) has been responsible for most BSA enforcement activities \ndelegated to the IRS, in April 2003, Small Business/Self Employed (SBSE) was given responsibility \nfor Foreign Bank and Financial Accounts Reports (FBAR) civil penalty enforcement. The same \ndisclosure analysis applies whether CI or SBSE is conducting enforcement, bearing in mind that \ndisclosure authority for nontax criminal investigations under section 6103(i) will not be available to \nSBSE when enforcing a civil penalty only. \n",
"7-3 \nTherefore, if an IRS employee is working on a nontax criminal investigation with \nanother agency (for example, a Title 31 case with the Drug Enforcement \nAgency), the IRS employee would not be able to obtain necessary returns or \nreturn information unless the agency under whose auspices the investigation is \nbeing conducted first complied with section 6103(i). Similarly, if the IRS \nemployee had obtained returns or return information while previously working a \ncriminal tax case, the employee could not disclose that information during the \nnontax administration investigation unless the other agency first complied with \nsection 6103(i). \nC. Related Statute Determination \nGiven the close relationship between money laundering and tax evasion, there \nare some investigations involving both Title 26 and Title 31 offenses. Section \n6103(b)(4) defines “tax administration” as encompassing the administration, \nmanagement, conduct, direction, and supervision of the internal revenue laws \nand related statutes. A joint Title 26 and Title 31 investigation is a tax \nadministration investigation, subject to the disclosure provisions of section 6103. \nIRS procedures found in the IRM specifically address situations where special \nagents, operating under the authority granted by the Deputy Assistant Secretary \nfor Terrorist Financing and Financial Crimes to investigate certain Title 31 \nmatters, discovered that a Title 31 violation may have been committed as part of \na pattern of violating the internal revenue laws. The IRM provides that, if an \nappropriate IRS official makes that determination in writing, the Title 31 \ninvestigation is considered to be tax administration under the “related statute” \nportion of the definition of tax administration. \nWhether or not the BSA or any other statute is \"related\" to the internal revenue \nlaws within the meaning of section 6103(b)(4) depends on the nature and \npurpose of the statute and the facts and circumstances in which the statute is \nbeing enforced or administered. These statutes cannot be considered related in \nall situations, but only when being enforced by IRS personnel in matters arising \nout of or in connection with the enforcement of Title 26.58\n58 IRM 9.3.1.4.3.1.1.2 reads in relevant part as follows: \n \n(1) Returns and return information may be used or disclosed to initiate or conduct a \nmoney laundering investigation if the investigation is considered for tax \nadministration purposes according to 26 U.S.C. § 6103(b)(4). When investigating \npotential money laundering or Bank Secrecy Act (BSA) violations, the key test \n(related statute test) is whether, under the facts and circumstances of the particular \ncase, the money laundering and BSA provisions are considered related to the \nadministration of the Internal Revenue laws. \n(2) The related statute determination is within the good faith judgment of the SAC \n[Special Agent in Charge]. This determination is also (continued on next page)\n",
"7-4 \nTo the extent that a BSA violation is committed in contravention of the internal \nrevenue laws, the BSA can be considered a related statute, even though the IRS \nmay not choose to pursue the Title 26 connection. Furthermore, the character of \nthe Title 31 violation, i.e., that it is tax related, is unaffected by whatever action \nthe IRS takes or chooses not to take on the Title 26 case. \nD. Effect of the Related Statute Determination \nA determination that a Title 31 investigation meets the related statute test \ninvolving tax administration authorizes IRS employees to access returns or return \ninformation in conducting an investigation. That determination does not, \nhowever, give IRS employees carte blanche authority to disclose returns or \nreturn information. Subsequent disclosures may be made only if authorized by \nsection 6103. For example, returns or return information obtained by an IRS \nemployee during the related statute Title 31 tax administration investigation may \nbe disclosed to Department of Justice (DOJ) as part of that investigation only if \nthe disclosure is consistent with sections 6103(h)(2) and (h)(3). \nIn short, the IRS and DOJ, in a Title 31 related statute investigation, are subject \nto the same disclosure rules that apply to disclosures during a pure Title 26 \nknown as the Arelated statute call.@ The SAC will make such determination in \nmemorandum form with his or her signature for placement in the administrative \ninvestigative file. Returns and return information cannot be used to evaluate \ninformation related to a money laundering investigation to determine whether a \nrelated statute call should be made. \n(3) The factors to be considered are whether the offense: \na. was committed in furtherance of a violation of the Internal Revenue \nlaws, or \nb. is part of a pattern of violations of the Internal Revenue laws. \n(4) Once the related statute determination is made by the SAC, all the information \nreceived, collected, and developed by the IRS, in that investigation, is protected from \ndisclosure under 26 U.S.C. § 6103 regardless of whether or not a formal tax \ninvestigation is opened and/or the ultimate determination with respect to any potential \nTitle 26 charges. \n(5) Once the related statute determination is made, 26 U.S.C. § 6103(h)(1) allows for the \ndisclosure of returns and return information to Treasury Department employees \nwhose official duties require inspection or disclosure for tax administration purposes.\n. . . .\n(9) It is not necessary to establish a Title 26 violation or a numbered Title 26 \ninvestigation to meet the related statute test. However, if subsequent to a related \nstatute determination, the investigation is not expanded to include Title 26, then an \nex parte court order must be obtained to utilize the return and return information. \n",
"7-5 \ncriminal tax case. If the IRS discloses returns or return information as part of a \nreferred Title 31 tax administration investigation, DOJ can further disclose that \ninformation only in accordance with section 6103(h) and Treas. Reg. \n' 301.6103(h)(2)-1.59\nIf there are no possible Title 26 violations, Title 31 could not be a statute related \nto tax administration for section 6103 purposes and any subsequent disclosures \ncould only proceed in accordance with section 6103(i). The decision regarding \nwhether a Title 31 investigation involves tax administration is to be made by the \nIRS, not by other agencies (including DOJ). If the IRS does not make that \ndetermination, returns or return information may not be disclosed to the IRS \nemployee during the course of that Title 31 investigation, nor may disclosures be \nmade by the IRS to DOJ or any other federal agency, except in accordance with \nsection 6103(i). \nThere are two practical effects of a related statute determination. One is that it \npermits the IRS employee conducting the investigation to access returns or \nreturn information under section 6103(h)(1) when the employee has a legitimate \ntax administration need for the information. The second is that information \ncollected or generated in that investigation after the related statute call has been \nmade is protected by section 6103.60\nE. When Does Information Gathered in a Title 31 Investigation Become \nReturn Information?\nData collected by IRS personnel pursuant to their enforcement responsibilities \nunder the BSA in a “pure” Title 31 investigation is not return information under \nsection 6103. In a \"pure\" Title 31 investigation, i.e., where no Title 26 related \nstatute determination has been made, the information is subject to the disclosure \nrules found at 31 U.S.C. § 5319, 31 C.F.R. § 103.53, and Treasury's Financial \nCrimes Enforcement Network (FinCEN) Re-Dissemination Guidelines for Bank \nSecrecy Act Information. See IRM Exhibit 4.26.14-2 for the 2004 version of the \nGuidelines. As previously noted, although Congress recognized the usefulness \nof BSA information in enforcing internal revenue laws, it never intended for BSA \n59 Even if a related statute call has been made, that does not authorize the IRS or DOJ to disclose \ninformation to other agencies involved in the nontax aspects of a BSA or money laundering \ninvestigation, absent a section 6103(i) order. The regulations permitting the use of return or return \ninformation in joint tax/nontax grand jury investigations require that the tax portion of the proceeding \nbe authorized by the Assistant Attorney General (Tax Division). Treas. Reg. ' 301.6103(h)(2)-\n1(a)(2)(ii). Money laundering and BSA investigations generally are not authorized by the Tax \nDivision, even where a related statute call has been made. \n60 Although there are no cases addressing the related statute determination, there are cases \nsuggesting that a money laundering charge, standing alone, is not \"tax administration.\" See United \nStates v. Hobbs, 991 F.2d 569, 573 (9th Cir. 1993); United States v. Callahan, 981 F.2d 491, 494 n.3 \n(11th Cir. 1993), cert. denied, 508 U.S. 976 (1993). \n",
"7-6 \ninformation to be used solely for this purpose. It follows that, when the IRS is \ncarrying out responsibilities delegated to it by the Deputy Assistant Secretary for \nTerrorist Financing and Financial Crimes, every piece of data collected pursuant \nto a BSA investigation does not become \"return information\" simply because one \nof the Act's purposes is related to tax administration. \nThe IRS's BSA enforcement role must be viewed as distinct from its primary role \nof enforcing the internal revenue laws. When the IRS is operating strictly within \nthe parameters of responsibility assigned to it by the BSA, the data collected is \nnot considered return information and is not subject to the disclosure provisions \nof section 6103. \nWhen Title 31 has been determined to be a statute related to tax administration \nfor section 6103 purposes, the entirety of the information is covered by section \n6103 because it was received by the Secretary for the purpose of determining \nsome individual’s liability or potential liability under the Code. Courts interpret \nthe term “return information” broadly. See I.R.C. § 6103(b)(4). Specifically, \n“return information” includes targets of IRS tax investigations and any information \ngathered by the IRS with regard to the target’s liability or possible liability under \nthe Code. See generally Chapter 2. Once information is deemed “return \ninformation,” it may be disclosed only under the provisions of section 6103. \nThe definition of “return information” comprises information collected by the IRS \nwhen it is focusing on a particular activity and attempting to evaluate the tax \nconsequences of the individuals or entities involved in the activity, as well as: \nsummaries of the case, memoranda of interviews with witnesses, \nassorted agency workpapers dealing with the computation of . . . \ntaxes, reports by different agents who have worked on the case, \nand letters or memoranda from one Service official to another \ndealing with different aspects of the case. \nChamberlain v. Kurtz, 589 F.2d 827, 840 (5th Cir.), cert. denied, 444 U.S. 842 \n(1979). Therefore, all information obtained by IRS personnel during the course \nof their official duties to investigate liability or possible liability under the internal \nrevenue laws is return information. See I.R.C. § 6103(b)(2)(A). \nIt may not always be easy to separate pure BSA data from Title 26 return \ninformation, and there is no case law to provide guidance on this point. \nHowever, two things are clear: (1) courts have given an expansive definition to \nthe term \"return information”; and (2) the predicate for a related statute \ninvestigation is that the matter at issue is part of a scheme to evade the internal \nrevenue laws. \nUsing the related statute call as a touchstone, information received or generated \nby the IRS pursuant to its enforcement responsibilities under the BSA–and the \n",
"7-7 \nBSA only–is not return information as defined in section 6103(b)(2), and is not \nsubject to the disclosure rules of section 6103. If a related statute call is \nsubsequently made, all of the information, including investigatory information \nreceived or generated in the BSA investigation prior to the related statute call, is \nreturn information as defined in section 6103(b)(2) and is subject to the \ndisclosure rules of section 6103, regardless of whether a formal tax case is \nopened. See generally IRM 9.3.1.4.3.1.1.2. \nII. TITLE 18 MONEY LAUNDERING OFFENSES\nIn addition to Title 31 investigations, IRS special agents also have the authority to \nconduct money laundering investigations under 18 U.S.C. '' 1956 and 1957, pursuant \nto the authority granted to them by Treasury Directive 15-42 (Jan. 21, 2002). Under this \nDirective, the Deputy Assistant Secretary for Terrorist Financing and Financial Crimes \nhas delegated to the IRS investigatory, seizure, and forfeiture authority for violations of \nthese sections discovered during the course of Title 26 or BSA investigations. The IRS \nmay also seize property pertaining to these violations, if the agency with investigatory \nauthority, e.g., the FBI, is not present to make the seizure. In such cases, the IRS must \nturn over the property to that agency/bureau. \nTitle 18, section 1956 deals with laundering of monetary instruments and section 1957 \npertains to engaging in monetary transactions in criminally derived property. Generally, \nneither of these sections is primarily concerned with violations of the internal revenue \nlaws. Rather, 18 U.S.C. §§ 1956 and 1957 investigations are part of a larger effort to \nhinder the flow of illegally acquired money. Therefore, if a special agent working on a \nmoney laundering investigation wants to access returns or return information, either a \nrelated statute determination must be made or the agent must follow the procedures set \nforth in sections 6103(i)(1), or (i)(2).61\nSimilar to Title 31 investigations, the special agent may access returns or return \ninformation under the authority of section 6103(h)(1) only if conducting a tax \nadministration investigation. The one exception to this rule is for investigations \nconducted pursuant to 18 U.S.C. § 1956(a)(1)(A)(ii). This section was designed to \ncover transactions conducted to facilitate violations of sections 7201 and 7206 of the \nCode. In short, 18 U.S.C. § 1956(a)(1)(A)(ii) requires that a transaction be conducted \nwith the intent to facilitate tax evasion and that the funds involved represent the \n5 In multi-agency money laundering investigations, an ex parte order under section 6103(i)(1) must be \nobtained to disclose returns or return information to other agencies involved in the investigation, even \nwhere a related statute call has been made. This is because Treas. Reg. ' 301.6103(h)(2)-1(a)(2)(ii), \nwhich permits the use of returns or return information in joint tax/nontax grand jury investigations, \nrequires that the tax portion of the proceeding be authorized by the Assistant Attorney General (Tax \nDivision), which is not done in IRS money laundering investigations where a related statute \ndetermination is made, except with respect to 18 U.S.C. ' 1956(a)(1)(A)(ii). \n",
"7-8 \nproceeds of \"specified unlawful activities,\" including racketeering and foreign drug \noperations. See S. REP. NO. 99-433, at 11-12 (1986). \nGiven the relationship between 18 U.S.C. § 1956(a)(1)(A)(ii) and tax evasion, \ninvestigations conducted pursuant to this section are per se tax administration and \nreturns or return information can always be accessed pursuant to section 6103(h)(1). \nBy the same token, information received or generated during the section \n1956(a)(1)(A)(ii) investigation is return information protected by section 6103. See\ngenerally IRM 9.3.1.4.3.1.1.2. \nIII. CIVIL FORFEITURES \nWhether returns or return information may be disclosed to DOJ to further its efforts to \neffect civil forfeitures depends, primarily, on whether the forfeiture relates to tax \nadministration. \nA. Civil Forfeitures under 18 U.S.C. § 981\nCongress enacted 18 U.S.C. ' 981 to provide a means for the government to \nseize and bring an action for the forfeiture of property involved in transactions \nthat violate the currency transactions reporting requirements of \n31 U.S.C. '' 5313 and 5324 and the money laundering provisions of \n18 U.S.C. '' 1956 and 1957. \nLike BSA and money laundering matters, a civil forfeiture under 18 U.S.C. § 981 \nis a matter pertaining to tax administration only if the IRS makes the appropriate \nrelated statute determination. If such determination is made, a special agent \nworking on the 18 U.S.C. ' 981 forfeiture could access returns or return \ninformation under section 6103(h)(1). The IRS also could disclose returns or \nreturn information to DOJ in preparation for the judicial or administrative tax \nadministration forfeiture proceeding if the matter was properly referred, pursuant \nto section 6103(h)(3)(A), and if the disclosure otherwise complied with the \nprovisions of section 6103(h)(2). Disclosures in any subsequent administrative \nor judicial tax administration forfeiture proceeding would be subject to section \n6103(h)(4). See generally Chapter 3. \nDisclosures of returns or return information to DOJ for an 18 U.S.C. ' 981 \nforfeiture are not limited to situations where there has been a criminal referral of \na related statute BSA or money laundering investigation. These disclosures can \nalso be made for an 18 U.S.C. ' 981 forfeiture before, or in lieu of, the criminal \nreferral if: (1) a related statute call has first been made; (2) the forfeiture case \nhas been properly referred pursuant to section 6103(h)(3)(A); and, (3) the \nrequirements of section 6103(h)(2) are followed. \nSection 6103(h)(2), which sets forth the criteria for disclosures to DOJ, and \nsection 6103(h)(4), which sets forth the criteria for disclosure in the proceeding \n",
"7-9 \nitself, are closely related. Sections 6103(h)(2)(A) and (h)(4)(A) permit the \ndisclosure of returns or return information if: \nthe taxpayer is a party to the proceeding, or the proceeding arose \nout of, or in connection with, determining the taxpayer's civil or \ncriminal liability, or the collection of such civil liability, in respect of \nany tax imposed under [Title 26]. \nI.R.C. ' 6103(h)(2)(A) and (h)(4)(A). \nThe first part of these sections (\"the taxpayer is a party to the proceeding\") does \nnot apply in civil forfeiture matters since the forfeiture proceeding is an in rem\naction, and reflects the legal fiction that the property itself is the party that \nfacilitated the crime. See Calero-Toledo v. Pearson Yacht Leasing Co.,\n416 U.S. 663, 680, reh'g denied, 417 U.S. 977 (1974). However, the second part \nof the above-quoted language of sections 6103(h)(2)(A) and (h)(4)(A) forms the \nbasis for disclosure because the related statute civil forfeiture proceeding, by \ndefinition, “arise[s] out of or in connection with” determining the taxpayer's \nliability, or collecting civil liability, with respect to Title 26 taxes. That is, the IRS \npredicates the disclosure on an institutional determination that the underlying \nTitle 31 and/or Title 18 violation relates to tax administration because the \nviolation was committed either in furtherance of, or as part of, a pattern to violate \nthe internal revenue laws. \nUnder sections 6103(h)(2) and (h)(4), the strongest case for disclosure can be \nmade in those situations where the claimant and/or taxpayer challenges the \nseizure or forfeiture. It may also be possible to rely on sections 6103(h)(2)(B) or \n(C) and 6103(h)(4)(B) or (C), which permit disclosures of returns or return \ninformation of third-party taxpayers who have the requisite relationship with the \nperson who is a party to the proceeding. \nB. Disclosures in Nontax Administration Cases under I.R.C. § 6103(i) \nSection 6103(i)(1) does not permit disclosure of returns or return information \nsolely for the purpose of a nontax civil forfeiture. See U.S. Dep’t of Justice, \nUnited States Attorneys’ Manual, 9-13.900 (Oct. 2007) available at\nhttp://www.justice.gov/tax/readingroom/2001ctm/02ctax.htm; Chapter 5. \nNevertheless, if information is properly obtained by DOJ or any other federal \nagency under section 6103(i)(1), (i)(2), or (i)(3), it may be disclosed subsequently \nfor civil forfeiture purposes under section 6103(i)(4), which explicitly authorizes \ndisclosures in “any judicial or administrative proceeding pertaining to \nenforcement of a specifically designated Federal criminal statute or related civil \nforfeiture (not involving tax administration).” (emphasis added). See also United \nStates v. $57,303.00 in United States Currency, 737 F. Supp. 1041, 1042-43 \n(C.D. Ill. 1990) (dicta); H.R. REP. NO. 97-760, at 675 (1982) (Conf. Rep.); 128 \nCong. Rec. 17635-42 (1982) (remarks of Sen. Nunn). \n",
"7-10\nC. Forfeitures under 21 U.S.C. ' 881 \nMost drug-related forfeitures take place pursuant to 21 U.S.C. ' 881. This \nstatute generally provides for forfeitures of controlled substances and other \nmaterials involved in drug offenses, assets exchanged for drugs or traceable to \nthe exchange, and assets used or intended to be used to facilitate drug offenses. \nThe authority to permit disclosures of returns or return information in civil \nforfeitures under this provision was specifically addressed during the \nconsideration of the 1982 amendments to section 6103(i)(4). See Tax Equity \nand Fiscal Responsibility Act of 1982, Pub. L. No. 97-248, 96 Stat. 324. \nIt is possible that the use of returns or return information in a 21 U.S.C. ' 881 \nforfeiture proceeding could arise in the context of a referred BSA or money \nlaundering matter for which a related statute call was made. That is, DOJ may \nwish to forfeit money or other property under 21 U.S.C. ' 881 in lieu of, or in \nconjunction with, criminal prosecution of an individual involved in drug trafficking \noperations under Title 31 and/or Title 18. \nThere is scant support for the position that section 6103(h) authorizes the use or \ndisclosure of returns or return information in a 21 U.S.C. ' 881 forfeiture \nproceeding related to tax administration. Disclosures of returns or return \ninformation in a referred tax administration case may be made to DOJ employees \n\"personally and directly engaged in, and solely for their use in\" proceedings \n(including preparation for such proceedings) and investigations in matters \n\"involving tax administration.\" I.R.C. ' 6103(h)(2); Treas. Reg. ' 301.6103(h)(2)-1. \nA civil forfeiture under 21 U.S.C. ' 881 of property facilitating or intended for use in \nillegal activities involving controlled substances is not a matter pertaining to tax \nadministration. \nTreas. Reg. ' 301.6103(h)(2)-1 addresses situations where a referred criminal \ntax administration investigation may involve violations of tax and nontax laws. \nOften, the very impetus for committing the tax crime is the commission of nontax \ncriminal offenses. The regulation, therefore, provides for disclosure of returns or \nreturn information in a joint criminal tax/nontax investigation if the nontax criminal \naspects arise out of the particular facts and circumstances giving rise to the tax \nadministration portion of the case. \nA civil forfeiture under 21 U.S.C. ' 881, however, is not authorized by Treas. Reg. \n§ 301.6103(h)(2)-1. First, the regulation involves the \"enforcement of a specific Federal \ncriminal statute other than one\" involving tax administration (emphasis added). A civil \nforfeiture under 21 U.S.C. ' 881 does not meet this criterion. Second, the regulation \nrequires that the tax portion of the investigation be duly authorized by the Tax Division of \nDOJ, the information be used directly in connection with the tax administration \nproceeding, and the nontax use be confined to the tax administration proceeding. A \nseparate civil forfeiture under 21 U.S.C. ' 881 would not meet this portion of the \nregulation either. Finally, the regulation requires that, if the tax administration aspect is \n",
"7-11\nterminated, DOJ cannot use returns or return information in the nontax portion of the \nmatter unless it first obtains a court order as required by section 6103(i)(1). As discussed \nabove, section 6103(i)(1) does not provide disclosure authority for a civil forfeiture. \nIV. I.R.C. § 6050I DISCLOSURES\nSection 6050I supplements the reporting requirements of the BSA under Title 31. It \nrequires that an information return (Form 8300, “Report of Cash Payments Over \n$10,000 Received in a Trade or Business”) be made by any person engaged in a trade \nor business who receives, in the course of that trade or business, cash in excess of \n$10,000 in one transaction (or two or more related transactions). Although the type of \ninformation reported under section 6050I is very similar to that reported under the BSA, \nand would be similarly useful in criminal enforcement activities, the reasons for the \nreporting requirements are different. The purpose of information reported under the \nBSA is to aid law enforcement personnel in tracing the movement of currency. By \ncontrast, section 6050I was enacted as a supplementary method of information \nreporting for tax administration purposes, both civil and criminal. H.R. REP. NO. 98-861, \nat 987-89 (1984) (Conf. Rep.); 1984-3 C.B. (Vol. 2) 241-43. \nAlthough information reported under the BSA (e.g., FinCEN Form 104, “Currency \nTransaction Reports”) may be disclosed to agencies pursuant to Treasury guidelines, \ninformation reported under section 6050I is subject to the disclosure restrictions of \nsection 6103. In 1988, Congress added a subsection to section 6103(i) to permit \ndisclosure of these returns to federal agencies. This was the first provision of the Code \npermitting the release of a return for nontax criminal enforcement purposes outside of \nthe court-order mechanism of section 6103(i). The provision expired in November \n1992. In 1996, the Taxpayer Bill of Rights 2, Pub. L. No. 104-168, ' 1206, \n110 Stat. 1452, 1472-73, was enacted and contained a new section 6103(l)(15), which \npermanently extended the rules for disclosing Form 8300 information. Moreover, \nsection 6103(l)(15) permits disclosures, upon written request, not only to federal \nagencies, but also to state, local, and foreign agencies, and for civil, criminal, and \nregulatory purposes. Generally, Form 8300 information can now be disclosed in the \nsame manner as information reported under the BSA. \nNote that section 365 of the Uniting and Strengthening America by Providing \nAppropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 \n(the “USA Patriot Act”), Pub. L. No. 107-56,115 Stat. 272, 333-35, added section 5331 \nto the BSA. Title 31 section 5331 requires any person who is engaged in a trade or \nbusiness and who in the course of the trade or business receives more than $10,000 in \ncoins or currency in one transaction or related transactions, to file a report with \nTreasury. Although the information collected by FinCEN under Title 31 is not return or \nreturn information protected by section 6103 (with the exception of Forms 8300 filed by \nclerks of Federal or State criminal courts), this is the same information collected by the \nIRS under section 6050I. As such, to the extent federal, state, local or foreign \ngovernment agencies can obtain this information from FinCEN instead of the IRS, they \nwould not need to rely on section 6103(l)(15), but would be subject to FinCEN’s re-\ndissemination guidelines noted in Section I.E, above. \n",
" \n8-1\nCHAPTER 8 \nFEDERAL/STATE EXCHANGE PROGRAM \nI.R.C. ' 6103(d) AND (p)(8) \nI. INTRODUCTION \nState and certain qualifying city tax agencies may receive tax information from the IRS \nfor state tax administration reasons pursuant to section 6103(d)(1). State employees \nreceiving federal tax information under section 6103(d)(1) are barred by section 6103(a) \nfrom unlawful disclosure of this information and subject to civil and criminal penalties \nunder section 7431 for the unauthorized disclosure of the tax information so received. \nStates are required to adequately safeguard the tax information received under sections \n6103(d) and 6103(p)(4). \nStates that require their citizens to submit federal tax information to meet state filing \nrequirements must also enact satisfactory confidentiality laws protecting the information \nas a precondition of receiving tax information from the IRS. I.R.C. ' 6103(p)(8). \nDisclosures pursuant to section 6103(d) have been upheld as constitutional. Taylor v. \nUnited States, 106 F.3d 833, 837 (8th Cir. 1997), aff'g 915 F. Supp. 1015 (N.D. Iowa \n1996); Loomis v. IRS, No. H-80-226, 1981 WL 1767, at *2-3 (D. Conn. Mar. 17, 1981). \nII. DISCLOSURE PURSUANT TO I.R.C. ' 6103(d)\nUnder section 6103(d)(1), tax information with respect to specified taxes shall be open \nto inspection by, or disclosure to, state agencies, bodies, or commissions, or their legal \nrepresentatives, charged under the laws of the state with tax administration \nresponsibilities.\n\"State\" is defined to include any of the 50 states, the District of Columbia, and certain \nterritories. I.R.C. § 6103(b)(5)(A). In addition, municipalities, including regional income \ntax agencies, with populations in excess of 250,000 (as determined under the most \nrecent decennial United States census data available) that impose a tax on income or \nwages and with which the IRS has entered into an agreement regarding disclosure are \ntreated as states. I.R.C. § 6103(b)(5). \nSection 6103(d)(1) requires a written request from state tax officials as a precondition to \ndisclosure. Because most state agencies are interested in continuing disclosure, the \nstatutory request requirement is normally met by means of a basic agreement between \nthe IRS and the state tax agency, and an implementing agreement between the IRS \nand state officials. The agreements not only provide for IRS disclosure, but also for a \nmutual exchange of information to increase tax revenues and taxpayer compliance, and \n",
" \n8-2\nto reduce expenditures in tax administration. See Policy Statement 1-35, \nIRM 1.2.19.1.5.62\nIf an agreement has not been entered into between the IRS and a state tax agency, the \nstate agency may request federal tax data on a case-by-case basis. Disclosure Officers \nserve as liaisons between the IRS and the state agencies requesting federal tax \ninformation. \nA. Basic Agreement\nIRM exhibit 11.3.32-1 provides the format of the basic agreement between the \nIRS and state tax agencies. The basic agreement requires approval by the \nCommissioner and the head of the state tax agency. \nB. Implementing Agreement \nThe implementing agreement is entered into after the basic agreement has been \nexecuted. The implementing agreement supplements the basic agreement by \nspecifying the detailed working arrangements and items to be exchanged, \nincluding tolerances and criteria for selecting those items. IRM 11.3.32.6. It \nmust be signed by the Governmental Liaison and Disclosure Area Manager and \nthe head of the state tax agency. IRM 11.3.32.6.1(5). Disclosures on a \ncontinuing basis may be made only in accordance with provisions of the \nimplementing agreement. See id.\nStates may still obtain federal tax information not included in the implementing \nagreement. Requests for access may be made by the head of the state tax \nagency on a case-by-case basis. Case-by-case disclosures trigger the same \nrules and use limitations as those made under standing basic and implementing \nagreements. IRM 11.3.32.13. \nC. Restrictions\nThe federal tax data furnished to state tax agencies pursuant to section \n6103(d)(1) is limited to taxes imposed by the specific Code chapters described in \nsection 6103(d)(1). Further, certain information, such as grand jury information \nwithout a valid Rule 6(e) order, may not be disclosed at all. IRM 11.3.32.17(1). \nOther information, such as information from confidential sources, must be \n62 Policy Statement 1-35 reads as follows: \nFormal agreements for the exchange of tax information with State tax authorities will be entered \ninto by the Commissioner when such agreements are in the interest of good tax administration. \nIn order to maximize the effectiveness of these formal agreements they will be supplemented with \nimplementing agreements. Tax information provided by the Service to State tax authorities will \nbe restricted to the authorities' justified needs and uses of the information. \n",
" \n8-3\nreferred to the National Office for review before disclosure. IRM 11.3.32.17(2). \nOnly federal tax data needed for a valid state tax administration purpose and \nwhich will actually be used for that purpose (“need and use”) may be disclosed to \nstate tax agencies by the IRS. IRM 11.3.32.4. \nRedisclosure by state tax agency officers and employees is limited to: \n1. Other state tax agency employees; \n2. State tax agency's legal representatives; \n3. State tax agency's contractors for the purpose of obtaining certain tax \nadministration services under section 6103(d)(1) and (n); \n4. State auditors to the extent authorized by section 6103(d)(2); \n5. Judicial and administrative tax administration proceedings to the extent \nauthorized by section 6103(h)(4). See IRM 11.3.32.19. \nFor purposes of section 6103(d), tax administration includes personnel \ninvestigations of state tax agency employees or prospective employees. Smith \nv. United States, 964 F.2d 630, 632 (7th Cir. 1992) (implicit recognition that \ncompliance with tax filing requirements by state tax employee was state tax \nadministration), cert. denied, 506 U.S. 1067 (1993); Rueckert v. IRS, 775 F.2d \n208, 212 (7th Cir. 1985) (state tax administration includes enforcement of state \ntax agency personnel rules). See also IRM 11.3.32.12. \nInspection is permitted upon written request of the head of the state agency, \nbody or commission and then only to those representatives designated in the \nwritten request. Disclosure cannot be made to the governor or any person not \nan employee or legal representative or contractor pursuant to section 6103(n) of \nthe tax agency, body or commission. \nRequests for disclosure must be in writing. I.R.C. § 6103(d)(1); Smith, 964 F.2d \nat 632; Huckaby v. Dep’t of Treasury, 794 F.2d 1041, 1046-47 (5th Cir. 1986). \nSee also McQueen v. United States, 5 F. Supp.2d 473, 487-88 (S.D. Tex. 1998) \n(in a section 7431 unauthorized disclosure case, court determined a disclosure \nmade pursuant to a Federal-State agreement was authorized). \nThe basic and implementing agreements meet the \"written request\" requirement \nof the statute. Taylor v. United States, 106 F.3d 833, 835-36 (8th Cir. 1997) \n(“There is no indication in the text of the I.R.C.'s confidentiality and disclosure \nstatute that Congress intended to require an individualized request in order to \nsatisfy the strictures of § 6103 relevant to disclosure to state tax officials.”), aff'g\n915 F. Supp. 1015 (N.D. Iowa 1996); Long v. United States, 972 F.2d 1174, \n",
" \n8-4\n1179-80 (10th Cir. 1992); Smith, 964 F.2d at 635-36; Stone v. Comm’r, 76 T.C. \nMemo. 1998-314, 1998 WL 547043, at *2-3. \nDisclosure of tax information is not authorized if it would identify a confidential \ninformant or seriously impair a civil or criminal tax investigation. \nI.R.C. ' 6103(d)(1). \nDisclosures pursuant to basic and implementing agreements have been \nchallenged and upheld in a number of courts: Taylor, 106 F.3d at 835-36; Long,\n972 F.2d at 1179-80; Smith, 964 F.2d at 635-36; White v. Comm’r, 537 F. Supp. \n679, 684 (D. Colo. 1982). \nSubsection 6103(d)(2) provides that tax information obtained by a state agency \nunder subsection 6103(d)(1) may be disclosed to a state audit agency charged \nunder the laws of the state with the responsibility of auditing state revenues and \nprograms. The disclosure may be made only to the extent necessary in making \nan audit of the section 6103(d)(1) agency.\nIII. TERMINATION OF DISCLOSURE – I.R.C. ' 6103(p)(7) \nSection 6103(p)(7) and Treas. Reg. ' 301.6103(p)(7)-1 contain procedures describing \nhow the IRS may terminate disclosure of federal tax information to a state tax agency \nafter a determination by the IRS that the agency made an unauthorized disclosure of \nfederal tax information or that it does not maintain adequate procedures for \nsafeguarding the information. The regulation also establishes a high-level \nadministrative review procedure wherein a state tax agency can appeal the \ndetermination. \nThe regulations also provide that, upon so notifying the state tax agency, if the IRS \ndetermines that federal tax administration would otherwise be seriously impaired, the \nIRS may suspend further disclosure of federal tax information pending a final \ndetermination, despite the possible detrimental impact of that action upon the state's tax \nsystem. \nIV. RELEASE OF TAX DATA IN ELECTRONIC FORM\nPrograms for providing state tax agencies with tax return information in electronic format \nare intended to minimize the need for state tax personnel to inspect or obtain copies of \nfederal tax returns and related records as well as minimizing the impact on Service \nresources. Electronic extracts are provided to each state tax agency pursuant to written \nagreements. Any agreement for providing electronic extracts to state tax officials must \nbe coordinated through the Governmental Liaison Data Exchange Program (GLDEP). \nSee IRM 11.3.32.11 and IRM 11.4.2. \n",
" \n8-5\nV. TAX RETURN PREPARERS – I.R.C. § 6103(k)(5)\nUnder section 6103(k)(5), taxpayer identity information with respect to an income tax \nreturn preparer, and whether the preparer has been assessed a penalty under sections \n6694, 6695 and 7216, may be furnished to agencies, bodies or commissions charged \nunder state or local law with licensing, registration or regulation of income tax return \npreparers. Information may be disclosed only upon the written request of the head of \nthose agencies, bodies or commissions. The written request must designate the \nofficers or employees to whom information is to be disclosed. Disclosures are subject \nto \"need and use\" restrictions similar to the restrictions imposed under section \n6103(d)(1) and IRM 11.3.32.4. See IRM 11.3.32.15. \nNote that disclosures under section 6103(k)(5) to local agencies regulating tax return \npreparers are not limited to municipalities with populations in excess of 250,000 that \nimpose a tax on wages or income. \nVI. I.R.C. ' 6103(p)(8)\nSection 6103(p)(8) provides that the IRS can make no disclosure under section 6103(d) \nto a state which requires the inclusion of federal tax information in its tax returns (so-\ncalled \"wraparound information\") unless the state has first enacted provisions of law \nguaranteeing the confidentiality of wraparound information. IRM 11.3.32.14. \nThe IRS has taken the view that section 6103(p)(8) does not require states to enact \nconfidentiality laws that mirror section 6103. In re Grand Jury Empanelled January 21, \n1981, 535 F. Supp. 537, 542 n.4 (D.N.J. 1982) (“Subsection (p)(8) leaves the states free \nto devise their own form of disclosure protection. The federal provision thus is not an \nAct of Congress purporting to indirectly provide a particular form of privilege for state tax \nreturns containing federal return information.”). However, the IRS has long insisted that \nthe provisions of law guaranteeing the confidentiality of wraparound information fulfill \ncertain minimum requirements: \nA. All wraparound information required to be attached to or reflected on a state \ntax return must be treated as confidential; \nB. Confidentiality must extend to wraparound information provided in connection \nwith any state tax return, regardless of whether the return pertains to income \ntax or to other tax liabilities; \nC. The confidentiality provisions must impose sanctions for a violation of the \nguaranteed confidentiality, and the sanctions must include a criminal sanction \nof at least a misdemeanor; and \nD. The sanctions must apply to past and present state tax agency officers and \nemployees. In addition, any other state employees who receive wraparound \ninformation in their official capacity (e.g., employees of the Attorney General's \n",
" \n8-6\noffice or city prosecutors) as contemplated by section 6103(p)(8)(B) must be \nsubject to the sanctions. \nNote: Section 6103(p)(8)(B) provides that the confidentiality required by \nsection 6103(p)(8)(A) does not preclude disclosure of wraparound \ninformation to officers or employees of the state if disclosure is specifically \nauthorized by state law. Intrastate disclosures of wraparound information \ncan be made pursuant to the criteria outlined above. See IRM 11.3.32.25. \nIntrastate disclosures can also be made if: \n1. The disclosure is authorized by state law; \n2. The disclosure is for the purpose of the administration of state tax laws, \nand not for nontax uses; and \n3. The recipient state has adequate provisions of law to protect the \nconfidentiality of the wraparound information. \nVII. RESOURCE MATERIAL ON THE FEDERAL/STATE EXCHANGE PROGRAM\nSee IRM 11.3.32. \n",
"9-1 \nCHAPTER 9 \nFREEDOM OF INFORMATION ACT \nI. INTRODUCTION \nLook for “Notes” in bold throughout this chapter intended to give practical tips when \naddressing a Freedom of Information Act (FOIA) request. \nNote: For more detailed information concerning FOIA and an explanation \nof the exemptions, consult the Department of Justice (DOJ) FOIA \nReference Guide at www.usdoj.gov/04foia/04_3.html.\nCongress enacted the Freedom of Information Act in 1966 with the intent that any \nperson should have access to identifiable records without having to demonstrate a need \nor reason. The burden of proof for withholding information was placed on the \ngovernment. The Act also broadened the scope of information available to the public \nand provided judicial remedies for those wrongfully denied information. Because some \ngovernment agencies responded slowly and reluctantly to the law, a number of \nprocedural and substantive changes in the law were enacted in 1974. Those \namendments narrowed the scope of certain exemptions and broadened certain \nprocedural provisions relating to time limits, segregability, and in camera inspection by \nthe courts. \nIn 1986, after several years of consideration, Congress amended two areas of FOIA: \naccess to law enforcement records and fee charges and circumstances for fee waivers. \nIn 1996, the \"Electronic Freedom of Information Act Amendments of 1996 (EFOIA),\" \nP.L. No. 104-231, 110 Stat. 3048, specifically addressed electronic records issues and \ncontained several provisions changing the timing of agency responses to FOIA \nrequests. The amendments brought electronic records within the scope of FOIA. \nCongress made no substantive changes to FOIA exemptions, but did alter provisions \ncovering several distinct subject areas. The amendments, except as otherwise noted, \nbecame effective March 31, 1997. The Department of Treasury regulations \nimplementing the EFOIA are located at 31 C.F.R. Part 1, Subpart A. The IRS \nregulations are published as the Statement of Procedural Rules, Treas. Reg. § 601.702. \nIn 2002, Congress added subsection (E) to 5 U.S.C. § 552(a)(3), which provides \nAn agency, or part of an agency, that is an element of the intelligence \ncommunity (as that term is defined in section 3(4) of the National Security \nAct of 1949 (50 U.S.C. § 401a(4)) shall not make any record available \nunder this paragraph to – \n(i) any government entity, other than a state, territory, commonwealth, or \ndistrict of the United States, or any subdivision thereof; or \n(ii) a representative of a government entity described in clause (i). \n",
"9-2 \nThis section was added to prevent foreign governments from seeking information from \nthe United States intelligence agencies, or from using a United States resident as a \nrepresentative to seek records on any foreign government’s behalf. Given the \navailability of exemption 1, which protects information pertaining to, inter alia, national \nsecurity interests, the new provision would prevent the intelligence agencies from \nwasting resources defending a FOIA action brought by a foreign government, or the \nrepresentative, and thereby risking disclosure of the very information to be protected \nthrough the use of affidavits or motions defending the assertion of the exemption. This \nlimitation pertains only to intelligence agencies designated by 50 U.S.C. § 401a(4), \nwhich currently does not include the IRS. \nIn December 2007, Congress enacted the “Openness Promotes Effectiveness in Our \nNational Government Act of 2007,” Pub. L. No. 110-175, 121 Stat. 2524, commonly \nreferred to as the “OPEN Government Act of 2007.” The OPEN Government Act \namended FOIA to address a broad range of procedural issues affecting FOIA \nadministration. The new amendments significantly revised FOIA provisions pertaining \nto the recovery of attorney fees and litigation costs. Section 4 of the Act amended 5 \nU.S.C. § 552(a)(4)(E) by adding two new elements to the attorney fees provisions of \nFOIA. The new provision re-defined the circumstances under which a FOIA plaintiff can \nbe deemed to have “substantially prevailed” to circumstances where the complainant \nobtained relief through either “(i) a judicial order, or an enforceable written agreement or \nconsent decree; or (ii) a voluntary or unilateral change in position by the agency, if the \ncomplainant’s claim is not insubstantial.” The 2007 amendments also revised the \nmethod by which attorney fees and costs are paid to FOIA plaintiffs. Rather than being \npaid from the Claims and Judgment Fund of the United States Treasury, FOIA was \nrevised to provide for the fees and costs to be paid “only from funds annually \nappropriated for any authorized purpose for the Federal agency against which a claim \nor judgment has been rendered.” \nThe OPEN Government Act of 2007 also added two provisions to FOIA that address \ntime limits for complying with requests and the agency consequences for failing to \nrespond in a timely manner. These provisions, which were effective for requests filed \non or after December 31, 2008, provide that the time period for responding to a request \ncommences on the “date on which the request is first received by the appropriate \ncomponent of the agency, but in any event not later than ten days after the request is \nfirst received by any component of the agency” that is designated in the agency’s \nregulations to receive requests. Where the agency fails to comply with the time limits, \nthe new provisions provide that the agency shall not assess search fees for those \nrequesters to whom such fees would otherwise apply. \nOn October 28, 2009, Congress enacted the OPEN FOIA Act of 2009, Pub. L. No. 111-\n83, 123 Stat. 2142, 2184 (section 564 of the Department of Homeland Security \nAppropriations Act, 2010). Prior to the enactment of the OPEN FOIA Act of 2009, \nexemption 3 authorized the withholding of information \"specifically exempted from \ndisclosure by statute (other than section 552b of this title), provided that such statute (A) \n",
"9-3 \nrequires that the matters be withheld from the public in such a manner as to leave no \ndiscretion on the issue, or (B) establishes particular criteria for withholding or refers to \nparticular types of matters to be withheld.\" 5 U.S.C. § 552(b)(3) (2006). \nThe OPEN FOIA Act of 2009 amended exemption 3 by adding a new requirement that \nany statute \"enacted after the date of enactment of the OPEN FOIA Act of 2009\" must \n\"specifically cite to this paragraph.\" Thus, the text of exemption 3 now reads as follows: \n(b) This section does not apply to matters that are– \n. . . \n(3) specifically exempted from disclosure by statute (other than section 552b of \nthis title), if that statute– (A)(i) requires that the matters be withheld from the \npublic in such a manner as to leave no discretion on the issue; or (ii) establishes \nparticular criteria for withholding or refers to particular types of matters to be \nwithheld; and (B) if enacted after the date of enactment of the OPEN FOIA Act of \n2009, specifically cites to this paragraph. \n5 U.S.C. § 552(b)(3). \nII. INFORMATION AVAILABLE \nA. Agency Records \nFOIA applies only to records held by executive branch administrative agencies \nand independent regulatory agencies of the federal government. Records held \nby Congress or the federal courts are not subject to FOIA. See Mayo v. Gov’t \nPrinting Office, 9 F.3d 1450, 1451 (9th Cir. 1993) (GPO, an arm of Congress, not \nsubject to FOIA); Dow Jones v. Dep’t of Justice, 917 F.2d 571, 574 (D.C. Cir. \n1990) (Congress not subject to FOIA); Warth v. Dep’t of Justice, 595 F.2d 521, \n523 (9th Cir. 1979) (federal courts not subject to FOIA). \nAll agency records in the possession and control of these entities must be \nreleased upon request unless the information falls within one of the Act’s nine \nspecific exemptions or three special law enforcement exclusions. In Dep’t of \nJustice v. Tax Analysts, 492 U.S. 136, 146 (1989), the Supreme Court held that \nthe Department of Justice must make available copies of U.S. district court \ndecisions it receives in the course of litigating tax cases. These records were \nconsidered agency records because they were included in agency files and used \nin official business (e.g., consideration of appeal), even though they were also \npublicly available from the courts, and were required to be disclosed in full \nbecause no exemption applied to withhold them. \nA record that is not owned by the agency or over which the agency has no \ncontrol is not an agency record. See, e.g., Gallant v. NLRB, 26 F.3d 168, 172 \n(D.C. Cir. 1994) (letters written on agency time by Board member seeking \nrenomination were not agency records when the letters had not been integrated \n",
"9-4 \ninto agency files); Gilmore v. Dep’t of Energy, 4 F. Supp. 2d 912, 922 (N.D. Cal. \n1998) (holding that software owned by a corporation and in which the \nDepartment of Energy had a non-exclusive license for use was not an agency \nrecord subject to FOIA because DOE lacked sufficient control over the software). \nAgency records are subject to public disclosure under FOIA. 5 U.S.C. § 552(a). \nThe EFOIA amendments added the definition of the term \"record\" to include \"any \ninformation that would be an agency record subject to the requirements of [FOIA] \nwhen maintained by an agency in any format, including an electronic format.\" \n5 U.S.C. § 552(f)(2). \nB. Electronic Records \n1. Readily Reproducible Electronic Format \nThe Act requires that an agency \"provide the record in any form or format \nrequested . . . if the record is readily reproducible by the agency in that \nform or format.\" 5 U.S.C. § 552(a)(3)(B). Moreover, the agency is \ndirected to \"make reasonable efforts to maintain its records in forms or \nformats that are reproducible for purposes of [ FOIA].\" 5 U.S.C. \n§ 552(a)(3)(B).63 These provisions require agencies to honor a \nrequester's specified choice among existing forms of a requested record \n(assuming there are no exceptional difficulties in reproducing an existing \nrecord) and to make \"reasonable efforts\" to disclose a record in a different \nform or format when that is requested. Treas. Reg. § 601.702(c)(2)(i) \ndefines “readily reproducible,” with respect to electronic format as \na record or records that can be downloaded or transferred \nintact to a floppy disk, computer disk (CD), tape, or other \nelectronic medium using equipment currently in use by the \noffice or offices processing the request. Even though some \nrecords may initially be readily reproducible, the need to \nsegregate exempt from nonexempt records may cause the \nreleasable material to be not readily reproducible. \n2. \"Reasonable Efforts\" Search \n\"[A]n agency shall make reasonable efforts to search for [responsive] \nrecords in electronic form or format, except when such efforts would \nsignificantly interfere with the operation of the agency's automated \n63 In 2002, Congress passed the E-Government Act of 2002, Pub. L. 107-347 (Dec. 17, 2002), which \ndirected the Office of Management and Budget (OMB) to set forth a strategy to make the federal \ngovernment more responsive to the citizenry electronically. An example of an E-Government-type \ninitiative is the IRS’s Free Filing electronic program. The E-Government Act reaffirms the notion that \nelectronic records need to be reproduced for disclosure, to the extent they are not exempt. \n",
"9-5 \ninformation system.\" 5 U.S.C. § 552(a)(3)(C). This provision promotes \nelectronic database searches and encourages agencies to expend new \nefforts in order to comply with the electronic search requirements of \nparticular FOIA requests. Thus, searches for records maintained in \nelectronic format “may require the application of [computer] codes, \nqueries, or other minor forms of programming to retrieve the requested \nrecords.” Treas. Reg. § 601.702(c)(2)(iii). \nC. Section 552(a)(1) Material - Published Information\nCertain information must be published in the Federal Register. 5 U.S.C. \n§ 552(a)(1). This includes: \n1. The organizational structure of the agency and procedures for \nobtaining information under the Act; \n2. Statements describing the functions of the agency and all formal and \ninformal procedures; \n3. Rules of procedure, see Treas. Reg. § 601.101 et seq., descriptions of \nforms (but not the forms themselves) available or the places at which \nforms may be obtained, and instructions describing all papers, reports, \nand examinations; \n4. Rules of general applicability and statements of general policy or \ninterpretations of general applicability; and \n5. Amendments, revisions, or repeals of 1- 4, above. \nD. Section 552(a)(2) Material - Guidance\nCertain information must be made available for public inspection and copying \nunless promptly published and offered for sale. 5 U.S.C. § 552(a)(2). This \nincludes: \n1. Final opinions and orders made in the adjudication of cases; \n2. Statements of policy and interpretations not published in the Federal \nRegister; \n3. Administrative staff manuals and instructions to staff that affect a \nmember of the public, e.g., Internal Revenue Manual, including the \nChief Counsel Directives Manual available at \nwww.irs.gov/foia/index.html;\n",
"9-6 \n4. Agency records that have been, or the agency expects to be, the \nsubject of repetitive requests; and \n5. A quarterly (or more frequent) index of material referred to in 1 - 4, \nabove. \nFor records created on or after November 1, 1996, each agency must make \nthese records available by “computer telecommunications,” i.e., on the Service’s \nInternet web site at www.irs.gov.\nIII. SECTION 552(a)(3) REQUESTS - ADMINISTRATIVE PROCESS\nCertain information not otherwise available under 5 U.S.C. § 552(a)(1) or (2) must be \nmade available upon a request which reasonably describes the records sought and \ncomports with the IRS’s regulations. FOIA was enacted to facilitate public access to \ngovernment records. John Doe Agency v. John Doe Corp., 493 U.S. 146, 151 (1989). \nIt was designed “to pierce the veil of administrative secrecy and to open agency action \nto the light of public scrutiny.” Dep’t of Air Force v. Rose, 425 U.S. 352, 361 (1976). \nNote: A number of courts have held that a FOIA requester's right of \naccess is independent of any discovery rights in litigation. Morgan v. \nDep’t of Justice, 923 F.2d 195, 198 (D.C. Cir. 1991); United States v. U.S. \nDistrict Court (DeLorean), 717 F.2d 478, 480 (9th Cir. 1983). Accordingly, \nthere should not be any blanket denials of requests for records made \nduring the pendency of litigation. Each record or category of records must \nbe evaluated to determine which exemptions, if any, may apply to withhold \nrecords. See IRM 11.3.13.7.1. Chief Counsel attorneys should provide \nrecommendations to disclosure officers as to what exemptions may apply. \nSometimes in the context of tax litigation, taxpayers request a continuance \nor stay of the proceeding pending the processing of a FOIA request or \nappeal. Although a taxpayer may have exercised his statutory right to \nrequest information through FOIA, the fact that the FOIA process may \nremain incomplete is no basis for a continuance or stay. Renegotiation \nBd. v. Bannercraft Clothing Co., 415 U.S. 1, 20-21 (1974). A related issue \nis a petitioner’s request or motion for an order by the court to compel the \nrelease of agency records under FOIA. The Tax Court has no jurisdiction \nunder FOIA; rather, jurisdiction is conferred on U.S. district courts. See\n5 U.S.C. § 552(a)(4)(B). In the district courts, the Department of Justice \nattorney should object to the motion on the basis that FOIA has its own \njudicial remedies and a FOIA requester should not be permitted to invent \nnew remedies beyond those created by Congress. \nAn attorney who has made an appearance in Tax Court does not, on that \nbasis, have authority to make a FOIA request for the petitioner’s tax \nrecords. The appearance only authorizes representation as to matters \nproperly before the court for the existing litigation and only provides \naccess to the petitioner’s tax records within the procedures applicable to \n",
"9-7 \nthe litigation. If the attorney makes a FOIA request for the petitioner’s tax \nrecords, the attorney must demonstrate independent authority to access \nthose records, such as through a properly completed and timely filed Form \n8821, Tax Information Authorization, or Form 2848, Power of Attorney and \nDeclaration of Representative. Similarly, appearance of an attorney in \nany court on behalf of a client does not, in itself, authorize FOIA disclosure \nof any records to the attorney. \nNote: Glomarization – The (c)(1) and (c)(2) exclusions, discussed at Part \nV, permit the agency, in certain limited circumstances, to deny that \nrecords exist when responsive records do, in fact, exist. In other \ninstances, based on the wording of the request, the agency may “neither \nconfirm nor deny” the existence of responsive records. The term \n“glomarization” is taken from the cases concerning the Glomar Explorer. \nSee Phillippi v. CIA, 655 F.2d 1325 (D.C. Cir. 1981) and Military Audit \nProject v. Casey, 656 F.2d 724 (D.C. Cir. 1981). The Glomar Explorer \nProject was a classified Central Intelligence Agency project supposedly \nundertaken to raise a sunken Soviet submarine from the ocean floor. Its \noriginal cover story was that it was a dredging project locating manganese \nnodules on the ocean floor. When the manganese mining cover was \nblown, the story was switched to the Soviet submarine recovery story, \nwhich was never confirmed by the CIA. Speculation was that the \nsubmarine story was a fallback cover for an even bigger, more secret \nproject. The D.C. Circuit held that, even if certain facts had been \npublicized about the project, those facts did not result in a waiver of \napplicable FOIA exemptions. The court reasoned “the line between what \nmay be revealed and what must be concealed is itself capable of \nconveying information . . . .” 655 F.2d at 1330. The court also noted that \n“[t]here might be much left to hide, and if there is not, that itself may be \nworth hiding.” Id. at 1331. \nBased on the rationale and holdings in the Glomar Explorer cases, \nagencies can, if necessary, respond in a manner to avoid revealing \nconfidential information based on the confirmation of knowledge already \navailable to the requester. For example, if a taxpayer believes that one of \nfive people was a confidential informant, and structures a FOIA request so \nthat to supply information about four of the five would reveal the fifth to be \nthe confidential informant, the IRS can glomarize its response, i.e., neither \nconfirm nor deny the existence of any information responsive to the \nrequest, rather than assert exemption 7(D) and reveal the very information \nit is attempting to protect. \nBecause glomarization is not a FOIA exemption, in addition to neither \nconfirming nor denying the existence of the records, the IRS must assert \nan exemption that would be applicable if the records did exist. For \nexample, if the request seeks tax records pertaining to a third party, the \n",
"9-8 \nIRS would assert exemption 3, in conjunction with section 6103(a), to the \nextent responsive records exist. See Vazquez v. Dep’t of Justice, 746 F. \nSupp. 2d 117, 122 (D.D.C. 2011) (“The Court finds that DOJ justified its \nGlomar response by showing how a substantive response to plaintiff's \nFOIA request could cause harm addressed by exemption 2. It therefore \nfollows that DOJ properly invoked FOIA exemption 2 to justify withholding \nany such information, if it exists.”). \nConsistency in the use of this approach is very important. For example, if \nthe IRS claims there are “no records” when there are not any records \nwhen circumstances would permit the use of an exclusion, but “neither \nconfirms nor denies” only when records exist, requesters will soon be able \nto determine when the IRS is protecting records and when there are no \nrecords to protect. \nIf a Chief Counsel employee believes that certain information subject to a \nFOIA request should be glomarized, he or she should discuss the matter \nwith his or her manager and the local disclosure officer. \nA. Request \n1. In General \nFOIA requests are made in writing and are generally processed by the \nDisclosure Office having jurisdiction over the requested records, i.e., an \nArea or Territory Office, Campus, Compliance Center, Computing Center, \nor in the National Office. Treas. Reg. § 601.702(h)(1). Requesters should \nsubmit their requests to the Disclosure Office located closest to their \nresidence. An updated list of Disclosure Offices to which FOIA requests \nshould be mailed is found at the following website: \nhttp://www.irs.gov/foia/article/0,,id=120681,00.html.\nUnder Treas. Reg. § 601.702(h), Counsel records other than records in \nthe National Office of the Office of Chief Counsel are included within the \njurisdiction of the local Disclosure Office. Records under the control of the \nNational Office of the Office of Chief Counsel fall under the jurisdiction of \nthe Director, Office of Governmental Liaison and Disclosure. \nNote: If a FOIA request is submitted directly to a Chief \nCounsel office, the request should be forwarded to the local \nDisclosure Office for processing. \nThe Act requires that the request \"reasonably describe\" the desired \nrecords. 5 U.S.C. § 552(a)(3)(A)(i). This means that members of the \nagency’s staff familiar with the subject area of the request could locate the \n",
"9-9 \nrecord without imposing an undue burden on the agency. Treas. Reg. \n§ 601.702(c)(5); IRM 11.3.13.5. \nAn agency has no duty to conduct research or create records not already \nin existence at the time the request is made in order to fulfill the request. \nSee Schoenman v. FBI, No. 04-2202 (CKK), 2009 WL 763065, at *17-18 \n(D.D.C. March 19, 2009) (rejecting plaintiff’s request for search slips, \ncreated by agency after date-of-search cut-off date, holding that “FOIA \n‘does not obligate agencies to create or retain documents; it only obligates \nthem to provide access to those which it in fact has created or retained.’”); \nKlinge v. IRS, 906 F. Supp. 434, 436 (W.D. Mich. 1995) (citing NLRB v. \nSears, Roebuck & Co., 421 U.S. 132 (1975)); Reeves v. United States, 74 \nA.F.T.R.2d 94-7208 (E.D. Cal. Nov. 16, 1994), aff’d, 108 F.3d 338 (table \ncite), 1997 WL 74348 (9th Cir. Feb. 20, 1997). Nevertheless, agencies \nare obligated to conduct reasonable searches of electronic records and \nautomated databases to identify responsive information that may be \nextracted and produced to the requester, in either electronic or hard copy \nformat. 5 U.S.C. § 552(a)(3)(B), (C). \nThe reason for making a request, the requester's intended use of the \ninformation, or the requester's unique knowledge about the information, \nhave no bearing on the entitlement to records. Persons who make frivolous \nor unsupported tax avoidance arguments, convicted felons, writers, and \nscholars all have equal access to agency records. Dep’t of Justice v. \nJulian, 486 U.S. 1, 13-14 (1988). Whether requested records are to be \nmade available turns on the applicability of the exemptions vis-à-vis any \nmember of the public, regardless of the particular requester's identity. \nNote: FOIA-based privacy exemptions should not be \nasserted to protect the identity of the person who is the \nrequester (absent the application of another exemption). \nNote: Congress has amended FOIA to exclude foreign \ngovernments, or their representatives, as permissible requesters for \nrecords maintained by United States intelligence agencies. See I, \nIntroduction, above. \n2. Searches \nAn agency has a duty to conduct a reasonable search for responsive \nrecords. Zemansky v. EPA, 767 F.2d 569, 571-73 (9th Cir. 1985) \n(reasonableness of search depends on facts of the case). The search \nmust be “reasonably calculated to uncover all relevant documents.” \nWeisberg v. Dep’t of Justice, 705 F.2d 1344, 1351 (D.C. Cir. 1983). Thus, \nthe legal standard for evaluating a search is not whether responsive \nmaterial might conceivably exist, but whether the search for records was \n",
"9-10 \nadequate. Oglesby v. Dep’t of the Army, 920 F.2d 57, 68 (D.C. Cir. 1990); \nSchoenman v. FBI, No. 04-2202 (CKK), 2009 WL 763065, at *10-18 \n(D.D.C. March 19, 2009) (failure to locate documents the requester \nasserts ‘must exist’ does not make search unreasonable); Flowers v. IRS,\n307 F. Supp. 2d 60, 70-72 (D.D.C. 2004) (requester’s reason for wanting \ndocuments does not create basis for discovery regarding search that court \nhas determined was reasonable); Murphy v. IRS, 79 F. Supp. 2d 1180, \n1185-86 (D. Haw. 1999) (IRS conducted reasonable search in light of fact \nthat requester gave no indication of the records sought or the offices to be \nsearched). Judicial evaluation of the reasonableness of a search is based \non what the agency knew at the conclusion of the search rather than what \nthe agency believed at its inception, i.e., if, in conducting the search where \nresponsive records are reasonably likely to be found, it appears to the \nagency that there may be other responsive records in other files, then \nthose files should be searched as well. Campbell v. Dep’t of Justice, 164 \nF.3d 20, 28 (D.C. Cir. 1998). See also CareToLive v. FDA, 631 F.3d 336, \n342-43 (6th Cir. 2011) (FOIA search was reasonable without requiring \nagency to search computer servers for deleted electronic materials, given \nno evidence of agency bad faith). \nThe IRS generally uses the date of receipt of a FOIA request as the cut-off \ndate for purposes of searching for responsive documents. The date may \nbe moved to the date the search begins if the search is delayed. See IRM\n11.3.13.6.3(13). Documents that might otherwise be responsive, but \nwhich were created after the FOIA request is received, are not subject to \nthat request. This cut-off date was approved in Vento v. IRS, 714 F.Supp \n2d 137, 144-45 (D.D.C. 2010). Similarly, in Schoenman v. FBI, 2009 WL \n763065 at *17-18 (D.D.C. Mar. 19, 2009), a cut-off of the date the agency \nsent acknowledgement of the FOIA request and began the search has \nbeen approved. However, courts have disapproved other cut-off dates. \nMcGehee v. CIA, 697 F.2d 1095, 1102 (D.C. Cir. 1983) (date-of-request \ncut-off disapproved); Public Citizen v. Dep’t. of State, 276 F.3d 634, 642-\n44 (D.C. Cir. 2002) (date of request cut-off disapproved). \n3. Time for Responding \nThe agency has 20 working days in which to respond to the request. The \n20-day period commences on the date on which the request is first \nreceived by the appropriate component of the agency, but in any event not \nlater than 10 days after the request is first received by any component of \nthe agency that is designated in the agency’s regulations to receive \nrequests. The appropriate component to receive FOIA requests is the \nOffice of Disclosure, Governmental Liaison and Disclosure. FOIA \nrequests received in any other office should be forwarded promptly. The \n20-day period cannot be tolled by the agency except (i) that the agency \nmay make one request to the requester for information and toll the 20-day \n",
"9-11 \nperiod while it is awaiting such information that it has reasonably \nrequested from the requester; or (ii) if necessary to clarify with the \nrequester issues regarding fee assessment. In either case, the agency’s \nreceipt of the requestor’s response to the agency’s request for information \nor clarification ends the tolling period. 5 U.S.C. § 552(a)(6)(A)(ii). \nIn exceptional circumstances, the Act allows an extension not to exceed \n10 more working days in which to respond. 5 U.S.C. § 552(a)(6)(B)(i). \nWhere FOIA requests cannot be processed in 30 working days (the original \n20-working-day period, plus one 10-working-day extension), the Act \nrequires the agency to notify the requester and provide him with an \nopportunity \"to limit the scope of the request\" and/or \"to arrange with the \nagency an alternative time frame for processing the request or a modified \nrequest.\" 5 U.S.C. § 552(a)(6)(B)(i), (ii). This provides a basis for agencies \nand FOIA requesters to reach agreement on the timing of agency \nresponses in cases in which the circumstances of the particular request, \nrather than a more general agency backlog, cause difficulty in meeting \nFOIA's time limits. To aid the requester, the agency is required to make \navailable its FOIA Public Liaison to assist in the resolution of any disputes \nbetween the requester and the agency. 5 U.S.C. § 552(a)(6)(B)(ii). \nThe OPEN Government Act of 2007 added new section (7) to 5 U.S.C. \n§ 552(a). Section (a)(7) requires the agency to establish a system to \nassign an individualized tracking number for each request that will take \nlonger than 10 days to process. The agency is required to provide the \nassigned tracking number to the requester and to establish a telephone \nnumber or Internet site that will provide information about the status of the \nrequest to the requester. 5 U.S.C. § 552(a)(7)(A), (B). \nNote: Chief Counsel employees should inform the local \ndisclosure officer as soon as possible if the volume of, or \nneed to compile or retrieve, responsive records would \nrequire an extension. \nThe statute requires agencies to promulgate regulations to provide for \nexpedited processing in cases where a requester demonstrates a \n\"compelling need.\" 5 U.S.C. § 552(a)(6)(E). The IRS regulations define \n\"compelling need\" as: \n(A) Circumstances in which the lack of expedited treatment \ncould reasonably be expected to pose an imminent threat to \nthe life or physical safety of an individual; \n",
"9-12 \n(B) An urgency to inform the public concerning actual or \nalleged Federal Government activity, if made by a person \nprimarily engaged in disseminating information . . . ; \n(C) The loss of substantial due process rights. \nTreas. Reg. § 601.702(c)(6)(i). The regulations further require the \nrequester to provide a certified statement explaining the nature of the \ncompelling need to expedite the request. Treas. Reg. § 601.702(c)(6)(ii). \nWithin 10 calendar days after the date of the compelling need request, the \ndisclosure office will decide, based solely on the information provided by \nthe requester, whether to grant expedited processing, and must notify the \nrequester of its decision. Treas. Reg. § 610.702(c)(6)(iv). Once expedited \nprocessing is granted, the agency must give priority to that FOIA requester \nand process the requested records for disclosure \"as soon as practicable.\" \n5 U.S.C. § 552(a)(6)(E)(iii). The denial of request for expedited treatment \nmay be appealed. Treas. Reg. § 601.702(c)(6)(v). The appeal must be \ngiven \"expeditious consideration.\" 5 U.S.C. § 552(a)(6)(E)(ii)(II). \nNote: The Disclosure Officer, or his or her delegate, will \nmake the determination of whether the request meets the \ncriteria for expedited treatment. \nIf the IRS fails to respond to a request within the statutory time \nperiod, a requester may proceed to court without filing an \nadministrative appeal. 5 U.S.C. § 552(a)(6)(C)(i); Treas. Reg. \n§ 601.702(c)(13). \n4. Denying Access to Responsive Information \nThe Act provides that any reasonably segregable portion of a record is to \nbe provided after deletion of the exempt portions. Information that is \notherwise nonexempt may be withheld only if it is \"inextricably intertwined\" \nwith the exempt information. Mays v. DEA, 234 F.3d 1324, 1327 (D.C. \nCir. 2000); Neufeld v. IRS, 646 F.2d 661, 666 (D.C. Cir. 1981). An agency \nis not required to segregate in a manner that leaves only essentially \nmeaningless words and phrases. \nThe Act has two provisions regarding the agency's obligation to specify to \na FOIA requester the amount of information that is denied in response to a \nrequest. First, when information is deleted from a record that is disclosed \nin part, the amount of information deleted must be indicated on the \nreleased portion of the record, unless including that indication would harm \nan interest protected by the applicable exemption. 5 U.S.C. § 552(b). In \naddition, if technically feasible, the amount of the information deleted must \nbe indicated at the place in the record where the deletion is made. \n",
"9-13 \n5 U.S.C. § 552(b). Second, where entire records or entire pages of \nrecords are withheld, the agency must make a reasonable effort to \nestimate the volume of records withheld and provide an estimate to the \nperson making the request unless providing the information would harm \nan interest protected by an applicable exemption. 5 U.S.C. § 552(a)(6)(F). \nNote: Chief Counsel attorneys who make exemption \nrecommendations to the Disclosure Office should generally \nhighlight the portions recommended to be withheld. The local \nDisclosure Office staff usually performs the mechanics of \n“redacting” the indicated portion if they agree with the attorneys’ \nrecommendations. If the attorneys and the Disclosure Office staff \ncannot agree on the appropriate redactions and exemptions, the \nmatter will be resolved through the reconciliation procedures in the \nCCDM and IRM. \nB. Appeal \nIf the agency denies any portion of the request within the 20-working-day period, \nthe requester may send an appeal letter to the Chief, Appeals. If the agency fails \nto respond within the 20-day period, the requester may file a suit in district court \nwithout first pursuing an administrative appeal. On the other hand, if a denial of \nthe request is made at any time before a lawsuit is filed, the requester must \nsubmit an administrative appeal before filing suit in district court. See Taylor v. \nAppleton, 30 F.3d 1365, 1367 (11th Cir. 1994); Oglesby v. Dep’t of the Army, 920 \nF.2d 57, 63 (D.C. Cir. 1990); Chandler v. IRS, No. 90-35501, 927 F.2d 608 (table \ncite), 1991 WL 27804 (9th Cir. Mar. 5, 1991). \nThe agency is required to respond to an appeal within 20 working days after its \nreceipt. Should the agency fail to respond within the 20-day period, the \nrequester may file suit. Requesters have a choice of venue: where the records \nare located, where the requester lives or has his or her principal place of \nbusiness, or in the U.S. District Court for the District of Columbia. If the agency \ndenies the appeal in whole or in part, it must inform the requester of the right to \nseek judicial review, and the requester may then file suit. \nIV. EXEMPTIONS64\nGovernment agencies may refuse to disclose information if it falls within one or more of \nnine specified exemptions or two special law enforcement exclusions (rarely applicable \nto IRS).65 See 5 U.S.C. § 552(b), (c). Although certain exemptions (e.g., exemption 3) \n64 Additional discussion of the exemptions most common to Chief Counsel Advice and their \nbackground file documents can be found at Chapter 13, II-D and E. \n65 A third exclusion (5 U.S.C. § 552(c)(3)) applies only to the FBI.\n",
"9-14 \nmandate the nondisclosure of information once the agency determines the exemption \napplies to that information, other exemptions (e.g., exemption 5) permit the agency to \nexercise its discretion to disclose information that may be technically exempt. These \nexemptions are generally known as discretionary exemptions. \nThe Service’s Policy Statement 11-13 (April 23, 2004), provides, in pertinent part, as \nfollows: \nIf information is not prohibited from disclosure, IRS personnel shall consider \nwhether, as an exercise of administrative discretion, the information should be \nreleased or withheld. Any discretionary decision to release information protected \nunder FOIA should be made only after full and deliberate consideration of the \ninstitutional (i.e., public accountability, safeguarding national security, law \nenforcement effectiveness, and candid and complete deliberations), commercial, \nand personal privacy interests that could be implicated by disclosure of the \ninformation.\nIn Chief Counsel Notice 2005-005, the Office provided instructions as to the manner in \nwhich this discretion is to be exercised for Counsel records. Chief Counsel Notice \n2005-005 has been incorporated into CCDM 33.1.3.2.2(8) and 30.11.1.6. Please \nconsult Procedure and Administration, Branches 6 and 7, as needed, for guidance in \nspecific cases. \nNote: All applicable exemptions should be asserted at one time \nrather than piecemeal. That way, should a record lose one \nexemption, perhaps through the passage of time, other exemptions \nmay be available to withhold all or portions of the record if \nprogrammatic and policy reasons so require. For example, if at the \ntime of the request the IRS is conducting an audit of the \nrequester/taxpayer, a number of exemptions would be available to \nwithhold information in order to avoid interference with the ongoing \ninvestigation. (E.g., exemptions 7(A), 3 in conjunction with \nsection 6103(e)(7), and - where applicable - 5.) If the audit were \nconcluded at the time the requester litigates the denial of records, \nexemption 7(A) would no longer be applicable; however, the other \nexemptions may remain available to protect information that the \ngovernment seeks to withhold for tax administration reasons. It \nbehooves the IRS or Counsel office to assert and defend all \npossible exemptions initially and avoid a ruling that the government \nwaived the exemption by failing to assert it. See Maydak v. Dep’t of \nJustice, 218 F.3d 760, 767-69 (D.C. Cir. 2000) (court of appeals \nrefused to permit agency to assert other exemptions when \nexemption 7(A) lost applicability due to conclusion of investigation), \ncert. denied, 533 U.S. 950 (2001). \n",
"9-15 \nA. Exemption 1\nThis exemption pertains to classified records concerning national defense and \nforeign policy. The IRS seldom invokes this exemption. Where the IRS has \ninvoked the exemption, it has involved treaty-related matters.66\nB. Exemption 2 \nExemption 2 covers matters \"related solely to the internal personnel rules and \npractices of an agency.\" 5 U.S.C. § 552(b)(2). Exemption 2 has previously been \ninterpreted by the courts as encompassing two different categories of \ninformation, generally referred to as “Low 2” and “High 2” information. However, \nthe Supreme Court recently held that “Low 2 is all of 2 (and that High 2 is not 2 at \nall).” Milner v. Navy, 131 S. Ct. 1259, 1265 (2011). \n“Low 2” information is defined, generally, as information that relates to trivial \nadministrative matters of no genuine public interest such as “file numbers, \ninitials, signature and mail routing stamps, references to interagency transfers, \nand data processing references.” Scherer v. Kelley, 584 F.2d 170, 175-76 (7th \nCir. 1978). “High 2” information was defined, generally, as predominantly \ninternal documents the disclosure of which would risk circumvention of law. See, \ne.g., Schiller v. NLRB, 964 F.2d 1205, 1207 (D.C.Cir.1992); Crooker v. BATF,\n670 F.2d 1051, 1055-63 (D.C. Cir. 1981). \nIn defining the scope of exemption 2, the Senate and House Reports provided \nconflicting views. The Senate Report stated that the exemption relates only to \nthe internal personnel rules and practices of an agency. Examples of these may \nbe rules as to personnel’s use of parking facilities or regulation of lunch hours, \nstatements of policy as to sick leave and the like. S. REP. NO. 89-813 (1965). \nThe House Report, however, stated that the exemption applies to \"[o]perating \nrules, guidelines, and manuals of procedure for government investigators, or \nexaminers . . . but this exemption would not cover all matters of internal \nmanagement such as employee relations and working conditions and routine \nadministrative procedures which are withheld under the present law.\" H.R. REP.\nNO. 89-1497, at 10 (1966). \nThe Supreme Court ruled that the statutory language takes precedence over the \nlegislative history. See Milner, 131 S. Ct. at 1267 (“the more fundamental point \nis what we said before: Legislative history, for those who take it into account, is \nmeant to clear up ambiguity, not create it . . . When presented, on the one hand, \nwith clear statutory language and, on the other, with dueling committee reports, \n66 Tax or other information obtained from a foreign government as the result of a tax treaty or \nconvention is protected by section 6105. See Chap. 13, Pt II. Section 6105 provides that as a \ngeneral rule “[t]ax convention information shall not be disclosed.” It is an exemption 3 statute. \n",
"9-16 \nwe must choose the language.”) As a result, exemption 2 only encompasses \nrecords relating to issues of employee relations and human resources, and only \nthose limited to agency internal interest. For records for which the “high 2” \nexemption previously would have been asserted, the IRS will generally be able to \nassert exemption 7E, discussed below. \nC. Exemption 3\nExemption 3 requires agencies to withhold information \"specifically exempted \nfrom disclosure by statute (other than the FOIA), provided that such statute (A)(i) \nrequires that the matters be withheld from the public in such a manner as to \nleave no discretion on the issue; or (ii) establishes particular criteria for \nwithholding or refers to particular types of matters to be withheld; and (B) if \nenacted after the date of enactment of the OPEN FOIA Act of 2009, specifically \ncites to this paragraph.\" 5 U.S.C. § 552(b)(3) (2009). Section 6103 of the Code \nis the type of statute to which subsection 3 of FOIA applies. Church of \nScientology of California v. IRS, 484 U.S. 9, 11 (1987); Chamberlain v. Kurtz,\n589 F.2d 827, 843 (5th Cir.), cert. denied, 444 U.S. 842 (1979). Under \nsection 6103(a), returns and return information \"shall be confidential\" and can be \ndisclosed only as authorized by Title 26. \nNote: Sections 7213, 7213A, and 7431 of the Code, respectively, \nset forth criminal and civil penalties for unauthorized disclosure of \nreturn information. They are not cited as exemption 3 statutes. \n(See discussion of sections 7213, 7213A, and 7431 in Chapter 1.) \nDIF Scores, used to select returns for examination, are withheld pursuant to \nexemption 3 in conjunction with the final flush language of section 6103(b)(2). \nSee Gillin v. IRS, 980 F.2d 819, 822 (1st Cir. 1992); Long v. IRS, 891 F.2d 222, \n224 (9th Cir. 1989). Exemption 7(E) may also be asserted to withhold DIF \nscores.\nUnder appropriate circumstances, section 6103(e) can authorize access to \nreturns and return information. Section 6103(e)(7) prohibits disclosure unless \nthe Secretary or appropriate delegate determines that disclosure would not \nseriously impair federal tax administration. When exemption 3 in conjunction \nwith section 6103(e)(7) is asserted to withhold records or information pertaining \nto tax law enforcement, exemption 7(A) may also apply. \nSection 6103(h)(4) does not authorize disclosure of third-party returns or return \ninformation responsive to a FOIA request. The FOIA requester must provide \ndisclosure authorization pursuant to section 6103(c) from the third-party \ntaxpayer. Chamberlain v. Kurtz, 589 F.2d at 837-38; Safeway, Inc. v. IRS, No. C \n05-3182 SBA, 2006 WL 3041079, at *7-8 (N.D. Cal. Oct. 24, 2006). The IRS \ncannot provide identity or contact information of any third-party taxpayer for use \nby the requester to obtain such consent. The IRS is not responsible for obtaining \n",
"9-17 \ndisclosure consents. Goulding v. IRS, No. 94-C-5113, 1996 WL 715544, at *3 \n(N.D. Ill. Dec. 9, 1996). \nExemption 3 statutes cited by the Service in response to FOIA requests include: \n1. Rule 6(e) of the Federal Rules of Criminal Procedure. Fund for \nConstitutional Gov’t v. Nat’l Archives & Records Serv., 656 F.2d 856, \n867 (D.C. Cir. 1981). This provision, promulgated under the authority \nof 18 U.S.C. §§ 3771-3772, mandates the secrecy of grand jury \nproceedings. The rule prohibits the disclosure of records that contain \ninformation generated during the course of any grand jury investigation. \nCf. Senate of P.R. v. Dep’t of Justice, 823 F.2d 574, 584 (D.C. Cir. \n1987) (agency must establish nexus between release of the records \nand the revelation of the grand jury process). \n2. 31 U.S.C. § 5319 establishes that reports required to be filed under the \nBank Secrecy Act (e.g., CTRs, CMIRs, and FBARs) are specifically \nexempt under FOIA. Small v. IRS, 820 F. Supp. 163, 166 (D.N.J. \n1992). See also Cuban v. Securities and Exchange Commission, 795 \nF.Supp.2d 43, 61-63 (D.D.C. 2011) (SARS are expressly exempt from \ndisclosure under the FOIA pursuant to 31 U.S.C. § 5319. The court \nstated that it “cannot overlook the importance of protecting information \nin the suspicious activity reports, especially when it is explicit in the \nstatute that the information should not be disclosed.”) \n3. The National Defense Authorization Act, Pub. L. No. 104-201 § 821, \n110 Stat. 2609 (1997), was established by Congress as an exemption \n3 statute prohibiting agencies from releasing certain contractor \nproposals under FOIA. This statute was designed to alleviate the \nadministrative burden upon agencies processing requests for \ncontractor proposals under exemption 4. \n4. Section 6103(e)(7) protects information the disclosure of which would \nseriously impair federal tax administration. Pacific Fisheries, Inc. v. \nUnited States, 395 F. App’x 438, 440 (9th Cir. 2010) (documents IRS \nprovided to the Russian government to aid in Russia's tax investigation \nwere exempt from disclosure pursuant to FOIA exemption 3 in \nconjunction with section 6103(e)(7) upon establishing that disclosure \nwould seriously impair federal tax administration). Shanahan v. IRS,\n672 F.3d 1142, 1149-50 (9th Cir. 2012) (IRS demonstrated that release \nof the documents would impair tax administration). \n5. Section 6105 protects tax convention information (discussed more fully \nin Chapter 13, Part II) and meets the criteria for an exemption 3 statute. \nPacific Fisheries, Inc., 395 Fed. App’x at 440; Tax Analysts v. IRS, 217 \nF. Supp. 2d 23, 26-28 (D.D.C. 2002). \n",
"9-18 \n6. 5 U.S.C. § 7114(b)(4)(C) protects guidance, advice, counsel, or training \nprovided for management officials or supervisors relating to collective \nbargaining. Dubin v. Dep’t of the Treasury, 555 F. Supp. 408 (N.D. Ga. \n1981), aff’d mem., 697 F.2d 1093 (11th Cir. 1983). \n7. Cuban v. Securities and Exchange Commission, 795 F.Supp.2d 43, 61-\n63 (D.D.C. 2011). In a motion for reconsideration of the district court’s \ngrant of partial granted summary judgment, the government first raised \nFOIA exemption 3(A) to prevent the disclosure of suspicious activity \nreports (SARS). SARS are expressly exempt from disclosure under \nthe FOIA. 31 U.S.C. § 5319. On reconsideration, the court held that \n“the [government] has not waived raising Exemption 3(A)” by failing to \nraise the exemption prior to the motion for reconsideration. The court \nalso stated that it “cannot overlook the importance of protecting \ninformation in the suspicious activity reports, especially when it is \nexplicit in the statute that the information should not be disclosed.” \nD. Exemption 4\nExemption 4 protects from disclosure \"trade secrets and commercial or financial \ninformation obtained from a person and privileged or confidential.\" 5 U.S.C. \n§ 552(b)(4). This exemption applies to trade secrets such as processes, \nformulas, manufacturing plans, and chemical compositions. See Appleton v. \nFDA, 451 F. Supp. 2d 129, 148 & n.8 (D.D.C. 2006) (rejecting plaintiff’s \nargument that trade secret requires “sole showing of ‘innovation or substantial \neffort,’” and emphasizing that trade secret applies to information that constitutes \nthe “end product of either innovation or substantial effort’” (quoting Pub. Citizen \nHealth Research Grp. v. FDA, 704 F.2d 1280, 1288 (D.C. Cir. 1983))). See also \nYamamoto v. IRS, No. 83-2160, slip op. at 2 (D.D.C. November 16, 1983) \n(exemption 4 protects as a trade secret a report on the computation of the \n\"standard mileage rate\" prepared by a private company for IRS use). The \nexemption also applies to commercial or financial information such as corporate \nsales data, salaries and bonuses of industry personnel, and bids received by \ncorporations in the course of their acquisitions. \nCommercial and financial information other than trade secrets can be withheld \nfrom disclosure only if it is privileged or confidential and it must be obtained by \nthe government from a \"person.” See Hearnes v. IRS, No. 77-225 C (3), 1979 \nWL 1428, at *5 (E.D. Mo. July 2, 1979) (private commercial and financial \ninformation of persons or organizations other than the plaintiff appropriately \nwithheld pursuant to exemption 4). Simply because the information concerns \nmatters occurring during a commercial operation does not alone make the \ninformation commercial information. See, e.g., Chicago Tribune Co. v. FAA, No. \n97 C 2363, 1998 WL 242611, at *1-3 (N.D. Ill. May 7, 1998) (information on \n",
"9-19 \nnature and frequency of in-flight emergencies not commercial information for \npurposes of exemption 4). \nCourts have defined \"confidential\" information as that which, if disclosed, would \nbe likely to (1) harm the competitive position of the person who supplied it, or (2) \nimpair the government’s ability to obtain similar information in the future. Nat’l \nParks and Conservation Ass’n v. Morton, 498 F.2d 765, 770 (D.C. Cir. 1974). \nSee, e.g., Fox News Network, LLC v. Dep’t of the Treasury, 739 F. Supp. 2d 515, \n564-65 (S.D.N.Y. 2010) (district court upheld Treasury’s withholding of bank \naccount information of entities that received TARP funds pursuant to exemption \n4 upon finding that Treasury needs to be able to maintain the confidentiality of \nsensitive banking records to ensure that it will continue to have an effective \nworking relationship with banks and similar entities). \nInformation obtained from a \"person\" includes data supplied by corporations and \npartnerships as well as individual citizens. It does not apply to records generated \nby the government such as government-prepared records based on government \ninformation. (The information may be exempt under one prong of exemption 5.) \nIn Critical Mass Energy Project v. NRC, 975 F.2d 871, 878 (D.C. Cir. 1992) (en\nbanc), cert. denied, 507 U.S. 984 (1993), the D.C. Circuit limited the National \nParks submitter’s \"harm\" test to those situations wherein the submitter was \nrequired to submit the information to the agency. Where the purported \nproprietary information is voluntarily submitted, the test is less stringent: whether \nthe submitter ordinarily places the information into the marketplace. See AGS \nComputers v. IRS, No. 92-2714, slip op. at 13 (D.N.J. Sept. 16, 1993) (applying \nCritical Mass, confidential information voluntarily submitted by a company \nsuspended by the IRS from serving as an electronic filer, as part of its appeal of \nthe suspension, was protected by exemption 4). If the submitter does not \nordinarily publicize the information, then it is exempt. In these cases, the \nsubmitter need not demonstrate to the agency the competitive harm likely to \nbefall the submitter if the information is disclosed. \nIf information in the file is determined to be business-submitter information, the \nIRS must provide written notice to the submitter in accordance with Treas. Reg. \n§ 601.702(g)(4) before disclosing information in response to a FOIA request. \nE. Exemption 5 \nExemption 5 protects from disclosure \"inter-agency or intra-agency \nmemorandums or letters which would not be available by law to a party . . . in \nlitigation with the agency.\" 5 U.S.C. § 552(b)(5). Deliberative process privilege \nmaterial, confidential attorney-client communications, and attorney-work product \nrecords are not generally available to parties in litigation with the government, \nsee Fed. R. Civ. P. 26(b)(1) and 26(b)(3); therefore the records are protected \nfrom disclosure by exemption 5. NLRB v. Sears, Roebuck & Co., 421 U.S. 132, \n149 (1975). See also Schell v. Dep’t of Health & Human Servs., 843 F.2d 933, \n",
"9-20 \n939 (6th Cir. 1988) (“This language contemplates that the public will not be \nentitled to government documents which a private party could not discover in \nlitigation with the agency.”); Parke, Davis & Co. v. Califano, 623 F.2d 1, 5 (6th \nCir. 1980) (exemption 5 interpreted as preserving to the agencies recognized \nevidentiary privileges such as the attorney-client and deliberative process \nprivileges and the work-product doctrine). \n1. Deliberative process privilege \nThe deliberative process privilege protects material reflective of the \npredecisional deliberative processes of government agencies, i.e., internal \nagency records containing the opinions, deliberations, and \nrecommendations rendered by governmental officials in connection with \ntheir official duties. See, e.g., NLRB v. Sears, Roebuck & Co., 421 U.S. \n132, 151 (1975); Renegotiation Bd. v. Grumman Aircraft, 421 U.S. 168, \n188 (1975); EPA v. Mink, 410 U.S. 73, 87-88 (1973). The primary \npurposes of the privilege are protecting the integrity of the decision making \nprocess and preventing the “disrobing of an agency decision-maker’s \njudgment.” Russell v. Dep’t of the Air Force, 682 F.2d 1045, 1049 (D.C. \nCir. 1982). Specifically, three policy purposes have been held to \nconstitute the basis for the deliberative process privilege: (1) to encourage \nfrank, open discussions on matters of policy between subordinates and \nsuperiors; (2) to protect against the premature disclosure of proposed \npolicies before they are finally adopted; and (3) to protect the public from \nconfusion that might result from the disclosure of reasons and rationales \nthat were not the ultimate ground for the agency action. Russell, 682 F.2d \nat 1048. See also NLRB v. Sears, Roebuck & Co., 421 U.S. at 150-51 \n(underlying policy considerations of the deliberative process privilege are \nto promote frank expression and discussion among those responsible for \nmaking the determinations that enable the government to operate, and to \nshield from disclosure the thought processes of executive and \nadministrative personnel); Adamowicz v. IRS, 402 F. App'x. 648, 652-653 \n(2d Cir. 2010) (“The documents at issue reflect the consultative process \nunderlying IRS decisions . . . and are therefore entitled to the same \nprotection as other important agency decisions. The fact that the \ndeliberative materials at issue were generated by a low-level official . . . \nand not circulated or considered by a final decision maker does not alter \nthis conclusion.”). \nAgencies generally may not withhold facts under the deliberative process \nprivilege unless they are inextricably intertwined with otherwise \ndeliberative matter, or so selectively culled from a larger universe of facts \nso as to reveal the deliberation itself. Montrose Chem. Corp. v. Train, 491 \nF.2d 63, 71 (D.C. Cir. 1974). \n",
"9-21 \nTo the extent an otherwise predecisional and deliberative record is \nexpressly adopted by an agency decision maker, then the deliberative \nprocess privilege is no longer available to resist production. \n[I]f an agency chooses expressly to adopt or incorporate by \nreference an intra-agency memorandum previously covered by \nexemption 5 in what would otherwise be a final opinion, that \nmemorandum may only be withheld on the ground that it falls within \nthe coverage of some exemption other than exemption 5. \nNLRB v. Sears, Roebuck & Co., 421 U.S. at 161. \nA district court held that the Service waived the deliberative process \nprivilege for the portion of an internal draft document read aloud by an IRS \nattorney at a meeting with oil industry representatives. Shell Oil Co. v. \nIRS, 772 F. Supp. 202, 210-11 (D. Del. 1991). The court did uphold the \nService's assertion of the deliberative process privilege for the unread \nportion of the record. \n2. Attorney-client privilege \nThe attorney-client privilege protects “confidential communications \nbetween an attorney and his client relating to a legal matter for which the \nclient has sought professional advice.” Mead Data Central, Inc. v. Dep’t of \nAir Force, 566 F.2d 242, 252 (D.C. Cir. 1977). The privilege also applies \nto agency counsel who provide guidance to the agency. See In re \nLindsay, 148 F.3d 1100, 1104 (D.C. Cir. 1998); Tax Analysts v. IRS, 117 \nF.3d 607, 618 (D.C. Cir. 1997) (FSA case). See also Judicial Watch, Inc. \nv. DHS, et al., 736 F. Supp. 2d 202, 209 (D.D.C. 2010) (e-mail messages \nbetween a DHS special agent and a DHS OIG attorney seeking \nconfidential legal advice regarding the way in which a government witness \nentered into the United States clearly fall within the protections afforded by \nthe attorney-client privilege). \nThe privilege extends not only to facts divulged by a client to his attorney \nin confidence, but also to opinions rendered by an attorney to his client \nbased upon those facts. In Tax Analysts v. IRS, the court distinguished \nbetween legal conclusions based upon facts provided by a taxpayer, \nwhich were not privileged as confidential attorney-client communications, \nand those governmental source facts which reflect on the \"scope, \ndirection, or emphasis of audit activity,\" which are. Tax Analysts, 117 F.3d \nat 619-20. Unlike the work-product doctrine, it is not limited to the \nlitigation context. Coastal States Gas Corp. v. Dep’t of Energy, 617 F.2d \n854, 864 (D.C. Cir. 1980). The attorney-client privilege protects \nconfidential inter-attorney communications as well as confidential attorney-\n",
"9-22 \nclient communications. Green v. IRS, 556 F. Supp. 79, 85-86 (N.D. Ind. \n1982), aff'd mem., 734 F.2d 18 (7th Cir. 1984). \n3. Work-product doctrine \nThe work-product doctrine protects records and other memoranda \nprepared by, or on behalf of, an attorney in contemplation of litigation. \nHickman v. Taylor, 329 U.S. 495, 509-10 (1947). See also Fed. R. Civ. \nProc. 26(b)(3). The rationale is to protect the adversarial trial process by \ninsulating the attorney’s preparation from scrutiny; it ordinarily arises when \nsome articulable claim, which is likely to lead to litigation, has arisen. \nCoastal States, 617 F.2d at 865. It is not limited to civil proceedings, but \nextends to administrative and criminal proceedings as well. Martin v. \nOffice of Special Counsel, 819 F.2d 1181, 1187-88 (D.C. Cir. 1987) \n(applying Privacy Act, 5 U.S.C. § 552a(d)(5)). Litigation need not have \nactually commenced so long as there is some articulable claim likely to \nlead to litigation. Coastal States, 617 F.2d at 864; Delaney, Migdail, & \nYoung v. IRS, 826 F.2d 124, 127 (D.C. Cir. 1987) (although the record \nmust be, fully or in principal part, \"prepared in contemplation of litigation,\" \nlitigation need not have been commenced, so long as there are specific \nclaims identified that make litigation probable); Tax Analysts v. IRS, 152 F. \nSupp. 2d 1, 19 (D.D.C. 2001) (record prepared to determine whether a \nparticular case should be submitted for litigation meets threshold for \nprivilege). Nevertheless, the mere fact that it is conceivable that litigation \nmay occur at some future time is not sufficient to protect records \ngenerated by attorneys as attorney work product. Senate of P.R. v. Dep’t \nof Justice, 823 F.2d 574, 587 (D.C. Cir. 1987). \nThe doctrine also applies to records prepared by a non-attorney working \nunder an attorney’s supervision. In the discovery context, Federal Rule of \nCivil Procedure 26(b)(3) provides that work product includes material \nprepared in anticipation of litigation or for trial by or for another party or its \nrepresentative. The work-product doctrine encompassed in FOIA \nexemption 5 follows this position. Shackett v. U.S., 339 F.Supp.2d 1092, \n1094-95 (S.D. Cal. Aug 24, 2004) (special agent’s report prepared in \ncontext of grand jury investigation for use by DOJ attorney withheld in full); \nExxon Corp. v. FTC, 466 F. Supp. 1088, 1099 (D.D.C. 1978) (economist’s \nreport protected), aff’d, 663 F.2d 120 (D.C. Cir. 1980). Factual material is \nprotected as well. United States v. Weber Aircraft Corp., 465 U.S. 792, \n800 (1984). Moreover, the work product doctrine continues to protect \nrecords even after the litigation to which they are related is over. FTC v. \nGrolier, Inc., 462 U.S. 19, 28 (1983). \n",
"9-23 \n4. Settlement Negotiations Privilege \nSome courts have recognized a privilege for documents generated in the \ncourse of settlement negotiations with a third party. See, e.g., Goodyear \nTire & Rubber Co. v. Chiles Power Supply, Inc., 332 F.3d 976, 983 (6th \nCir. 2003) (“any communications made in furtherance of settlement are \nprivileged”). However, communications reflecting negotiations between \nthe government and an adverse party, which are of necessity exchanged \nbetween the parties, have been held not to constitute \"intra-agency\" \nmemoranda under exemption 5 of FOIA. County of Madison v. Dep’t of \nJustice, 641 F.2d 1036, 1040-41 (1st Cir. 1981); Center for Auto Safety v. \nDep’t of Justice, 576 F. Supp. 739, 747-49 (D.D.C. 1983). Cf. Childers v. \nSlater, No. 97-853 (RMU/JMF), 1998 U.S. Dist. LEXIS 11882, at *16 \n(D.D.C. May 18, 1998) (non-FOIA case refusing to recognize a privilege \nfor settlement negotiations); Norwood v. FAA, 580 F. Supp. 994, 1002-03 \n(W.D. Tenn. 1984) (same). Some courts, however, have recognized that \nsettlement negotiations can be impeded by such a result. County of \nMadison v. Dep’t of Justice, 641 F.2d at 1040; Center for Auto Safety v. \nDep’t of Justice, 576 F. Supp. at 746 n.18. Cf. Childers, 1998 U.S. Dist. \nLEXIS 22882, at *16 (non-FOIA case limiting interrogatory to permit only a \nlimited intrusion into the government=s settlement process); but cf. Bennett \nv. La Pere, 112 F.R.D. 136, 138-41 (D.R.I. 1986) (in a non-FOIA case, \ncourt ordered disclosure of settlement negotiation documents to a non-\nsettling codefendant). \nF. Exemption 6 \nExemption 6 protects \"personnel and medical files and similar files, the \ndisclosure of which would constitute a clearly unwarranted invasion of personal \nprivacy.\" 5 U.S.C. § 552(b)(6). \n1. Exemption 6 requires a court to balance the right of privacy of affected \nindividuals against the right of the public to be informed. In Dep’t of \nState v. Ray, 502 U.S. 164, 177-78 (1991), the Supreme Court upheld \nthe withholding of the names and home addresses of repatriated \nHaitian refugees interviewed by U.S. officials regarding the conditions \nof their repatriation. The Court reasoned that release of identities \nwould significantly invade their privacy interests and that the public \ninterest was served by the release of the edited interview summaries. \nMoreover, disclosure of the persons’ names and addresses would not \nhave shed any additional light on government activities. Id. (citing \nDep’t of Justice v. Reporters Comm., 489 U.S. 749, 773 (1989)). See \nalso FLRA v. Dep’t of Defense, 510 U.S. 487, 499 (1994) (vindication \nof policies behind federal labor statute irrelevant in FOIA where \ndisclosure of employee names and addresses would not provide \ninsight into how the government operates); Berger v. IRS, 288 F. App’x \n",
"9-24 \n829, 832-33 (3d Cir. 2008) (revenue officer's privacy interest in her time \nrecords, even if slight, outweighed public interest in those records, so \nas to preclude disclosure where disclosure would not have contributed \nto public understanding of IRS operations, but would only have served \nto satisfy requesting taxpayers' narrow interest in knowing how officer \ninvestigated their particular case). \n2. The phrase \"similar files\" as used in exemption 6 has been given a \nbroad interpretation. In Dep’t of State v. Washington Post, 456 U.S. \n595, 602 (1982), the Supreme Court stated that Congress intended \nexemption 6 to cover \"detailed government records on an individual \nwhich can be identified as applying to that individual” rather than just \n“a narrow class of files containing only a discrete kind of personal \ninformation.\" \n3. The majority rule is that death extinguishes the decedent’s privacy \nrights recognizable under exemption 6 (as well as exemption 7(C)), but \ndoes not extinguish all privacy interests under either exemption. See\nNat’l Archives and Records v. Favish, 541 U.S. 157, 170 (2004) (FOIA \nrecognizes surviving family members’ right to personal privacy with \nrespect to their close relative’s death-scene images); Prison Legal \nNews v. EOUSA, 628 F.3d 1243, 1248-50 (10th Cir. 2011) (citing to \nFavish, family of a murdered prisoner had privacy rights supporting \nwithholding audio and video recordings of the murder scene; fact that \nrecordings were partially played in open court during murder trial did \nnot negate family’s rights); Accuracy in Media, Inc. v. Nat’l Park Serv.,\n194 F.3d 120, 123 (D.C. Cir. 1999) (whether the privacy interest \ninheres in the decedent’s survivors or posthumously in the subject of \nthe records, the privacy interest survives death such that scene-of-\ndeath and autopsy photographs of Vincent Foster, former Deputy \nWhite House Counsel, were exempt from disclosure under exemption \n7(C)); Reiter v. DEA, No. 97-5246, 1998 WL 202247, at *1 (D.C. Cir. \nMar. 3, 1998) (per curiam) (although the privacy interest of the \ndeceased may be “reduced,” the privacy interest should be protected \nunder exemption 7(C) unless outweighed by the public interest in \ndisclosure); New York Times, Inc. v. NASA, 782 F. Supp. 628, 631-32 \n(D.D.C. 1991) (sustaining a privacy claim under FOIA exemption 6 with \nrespect to an audiotape of the Space Shuttle Challenger astronauts’ \nlast words, because ‘[e]xposure to the voice of a beloved family \nmember immediately prior to that family member’s death . . . would \ncause the Challenger families pain” and inflict “a disruption [to] their \npeace of mind every time a portion of the tape is played within their \nhearing”). \n",
"9-25 \nG. Exemption 7 \nExemption 7 exempts from disclosure records or information compiled for law \nenforcement purposes, but only to the extent that the production of such records: \n(A) could reasonably be expected to interfere with enforcement \nproceedings; (B) would deprive a person of a right to a fair trial or an \nimpartial adjudication; (C) could reasonably be expected to constitute an \nunwarranted invasion of personal privacy; (D) could reasonably be \nexpected to disclose the identity of a confidential source, including a state, \nlocal or foreign agency or authority or any private institution, which \nfurnished information on a confidential basis, and, in the case of a record \ncompiled by a criminal law enforcement authority in the course of a \ncriminal investigation, or by an agency conducting a lawful national \nsecurity intelligence investigation, information furnished by the confidential \nsource; (E) would disclose techniques and procedures for law \nenforcement investigations or prosecutions or would disclose guidelines \nfor law enforcement investigations or prosecutions if disclosure could \nreasonably be expected to risk circumvention of the law; or, (F) could \nreasonably be expected to endanger the life or physical safety of any \nindividual. \n5 U.S.C. § 552(b)(7). \nThis exemption allows – but does not require – withholding of records or \ninformation, not generally whole files, \"compiled for law enforcement purposes,\" \nbut only to the extent that the production of the records would cause one of the \nsix specifically enumerated harms described above. This threshold requirement \nencompasses records generated out of civil and criminal judicial and \nadministrative enforcement proceedings, or used in investigations (such as \nmanuals, guidelines and instructions to staff). Case law has established that \ncriminal tax investigations, audits, collection activities, consideration of tax \nexemption applications, church examinations, conduct investigations, and \nlitigation are \"law enforcement purposes\" within the meaning of exemption 7. \nSee, e.g., Becker v. IRS, 34 F.3d 398, 407 (7th Cir. 1994) (investigating potential \nillegal tax protestor activity); Church of Scientology Int’l v. IRS, 995 F.2d 916, 919 \n(9th Cir. 1993) (enforcing the provisions of the federal tax code that relate to \nqualification for exempt status); Lewis v. IRS, 823 F.2d 375, 379-80 (9th Cir. \n1987) (criminal investigation). Records reflecting illegal actions may be withheld \nif they meet the requirements for one or more exemptions. ACLU v. Dep’t of \nDefense, 628 F.3d 612, 622 (D.C. Cir. 2011).\n1. Exemption 7(A) \nDetermining the applicability of exemption 7(A) requires a two-step \nanalysis: (1) whether a law enforcement proceeding is pending or \n",
"9-26 \nprospective, and (2) whether release of information could reasonably be \nexpected to cause some articulable harm. See NLRB v. Robbins Tire & \nRubber Co., 437 U.S. 214, 239-40 (1978) (government must show how \nrelease of records \"would interfere with a pending enforcement \nproceeding\"); Manna v. Dep’t of Justice, 51 F.3d 1158, 1164-65 (3d Cir.)\n(holding that government must show how release of records would \ninterfere with a pending enforcement proceeding, and noting that \n“disclosure of FBI reports could result in a chilling effect upon potential \ncooperators and witnesses in organized crime enforcement \ninvestigations”), cert. denied, 516 U.S. 975 (1995). This means that when \nthere is a concrete prospect of ongoing enforcement proceedings, records \nor portions of records may be withheld if disclosure of information might \nimpede the investigation or harm the government’s case in that particular \nproceeding or, under certain circumstances, would impede the \ngovernment’s ability to investigate generally. See Ctr. For Nat’l Sec. \nStudies v. Dep’t of Justice, 331 F.3d 918, 929-30 (D.C. Cir. 2003) (holding \nthat the “disclosure of detainees’ names could reasonably be expected to \ninterfere with the ongoing terrorism investigation” and reasoning that such \ndisclosure could negatively impact the government’s investigation going \nforward because “a potential witness or informant may be much less likely \nto come forward and cooperate with the investigation if he believes his \nname will be made public”), cert. denied, 540 U.S. 1104 (2004). \nGrounds for the nondisclosure of these records that have been repeatedly \nupheld by the courts include the potential impairment of the law \nenforcement effort caused by disclosure of: (1) evidence; (2) witnesses; \n(3) prospective testimony; (4) the reliance placed by the government upon \nthe evidence; (5) the transactions being investigated; (6) the direction of \nthe investigation; (7) government strategy; (8) confidential informants; (9) \nthe scope and limits of the government’s investigation; (10) prospective \nnew defendants; (11) materials protected by the Jencks Act; (12) attorney \nwork product; (13) the methods of surveillance; and (14) subjects of \nsurveillance. Title Guarantee Co. v. NLRB, 534 F.2d 484, 491 (2d Cir.), \ncert. denied, 429 U.S. 834 (1976); Kanter v. IRS, 433 F. Supp. 812, 822 \nn.18 (N.D. Ill. 1977). \nThe Supreme Court has stated that nondisclosure may also be \nappropriate when the release of requested information would give the \nrequester earlier and greater access to the government's case than he \nwould otherwise have. NLRB v. Robbins Tire, 437 U.S. at 238-39. \nWhen exemption 7(A) is asserted to withhold records or information \npertaining to tax law enforcement (that is, return information), exemption 3 \nin conjunction with section 6103(e)(7) may also apply. Shanahan v. IRS,\n672 F.3d 1142, 1149-50 (9th Cir. 2012) (IRS demonstrated that release of \n",
"9-27 \nthe documents would both impair tax administration and interfere with a \npending investigation). \n2. Exemption 7(B) \nThis exemption provides for withholding if disclosure of the records \"would \ndeprive a person of a right to a fair trial or impartial adjudication.\" 5 U.S.C. \n§ 552(b)(7)(B). This is primarily a protection against prejudicial publicity in \ncivil or criminal trials. This exemption has rarely, if ever, been used by the \nIRS.\n3. Exemption 7(C) \nExemption 7(C) protects from disclosure records or information compiled \nfor law enforcement purposes whose disclosure \"could reasonably be \nexpected to constitute an unwarranted invasion of personal privacy.\" \n5 U.S.C. § 552(b)(7)(C). \nReliance on cases interpreting exemption 6 is proper in constructing the \n7(C) exemption. See Dep’t of Justice v. Reporter’s Comm., 489 U.S. 749, \n768 (1989) (wherein Court notes that the discussion of exemption 6 in \nDep’t of Air Force v. Rose, 425 U.S. 352 (1976), was applicable to current \ncase interpreting exemption 7(C)). The exemption, however, does not \napply to corporations or other entities. See FCC v. AT&T, 131 S. Ct. \n1177, 1185 (2011) (“We reject the argument that because ‘person’ is \ndefined for purposes of FOIA to include a corporation, the phrase \n‘personal privacy’ in exemption 7(C) reaches corporations as well. The \nprotection in FOIA against disclosure of law enforcement information on \nthe ground that it would constitute an unwarranted invasion of personal \nprivacy does not extend to corporations.”). The individuals whose \ninterests are protected by clause (C) clearly include the subject of the \ninvestigation and \"any (other) person mentioned in the requested file.\" \nSee Attorney General’s 1974 FOI Amdts. Mem. at 9. Thus, agencies have \nsuccessfully asserted exemption 7(C) to protect the identities of law \nenforcement personnel and third parties who cooperate in investigations. \nMay v. IRS, 85 F. Supp.2d 939, 947 (W.D. Mo. 1999). \nIn Reporters Committee–considered the seminal exemption 7(C) case–the \nSupreme Court held that whether disclosure is \"warranted\" within the \nmeaning of the exemption turns upon the nature of the requested record \nand its relationship to FOIA’s central purpose of exposing to public \nscrutiny official information that sheds light on an agency’s performance of \nits statutory duties. Although neither the legislative history nor the explicit \nterms of FOIA specify what information about an individual implicates a \nprivacy interest, the statute generally is read to include information about \nan individual which he could reasonably seek to withhold from the public \n",
"9-28 \nat large because of its intimacy or its possible adverse effects upon \nhimself or his family. See Attorney General’s 1974 FOI Amdts. Mem. at 9. \nAs the Supreme Court noted in Reporters Committee, 489 U.S. at 763, \n“privacy encompass[es] the individual’s control of information concerning \nhis or her person.” \n4. Exemption 7(D) \nExemption 7(D) exempts material the production of which could \nreasonably be expected to disclose the identity of a confidential source, \nincluding a state, local, or foreign agency or authority, or any private \ninstitution which furnished information on a confidential basis, and, in the \ncase of a record compiled by a criminal law enforcement authority in the \ncourse of a criminal investigation or by an agency conducting a lawful \nnational security intelligence investigation, information furnished by the \nconfidential source. \nThe first part of this provision, concerning the identity of confidential \nsources, applies to any type of law enforcement record, civil or criminal. \nThe term \"confidential source\" refers not only to paid informants but also \nto any person who provides information \"under an express assurance of \nconfidentiality or in circumstances from which such an assurance could be \nreasonably inferred.\" S. REP. NO. 93-1200, at 13 (1974). Even if the \nrequester has independent knowledge of the confidential source’s identity, \nexemption 7(D) applies. See Cleary v. FBI, 811 F.2d 421, 423 (8th Cir. \n1987); Amuso v. Dep’t of Justice, 600 F. Supp. 2d 78, 97-100 (D.D.C. \n2009). \nIn most circumstances, it would be proper to withhold the names, \naddresses, and other identifying information regarding citizens who submit \ncomplaints or reports indicating possible violations of law. Of course, a \nsource can be confidential with respect to some items of information he \nprovides, even if he furnishes other information on an open basis; the test, \nfor purposes of this provision, is whether he is a confidential source with \nrespect to the particular information requested, not whether all \nconnections between him and the agency are entirely unknown. Attorney \nGeneral’s 1974 FOI Amdts. Mem. at 10. \nEarly case law interpreted \"sources\" to include local, state, and foreign law \nenforcement agencies (those whose primary function is the prevention or \ninvestigation of violations of criminal statutes, or the apprehension of \nalleged criminals) which provide information to an agency in confidence. \nLesar v. Dep’t of Justice, 636 F.2d 472, 489-90 (D.C. Cir. 1980); Keeney \nv. FBI, 630 F.2d 114, 119 (2d Cir. 1980); Church of Scientology v. Dep’t of \nJustice, 612 F.2d 417, 427-28 (9th Cir. 1979). This was eventually \n",
"9-29 \ncodified by the 1986 FOIA amendments. See S. REP. NO. 93-1200 \n(1974). \nThe second clause of exemption 7(D) deals with information provided by a \nconfidential source. With respect to civil matters, the information may not \nbe withheld on the basis of exemption 7(D), except to the extent that its \ndisclosure would reveal the identity of the confidential source. By \ncontrast, with respect to criminal investigations conducted by a \"criminal \nlaw enforcement authority\" (e.g., Criminal Investigation or TIGTA) and \nlawful national security intelligence investigations conducted by any \nagency, any information provided by a confidential source is, by that fact \nalone, exempt. Hearnes v. IRS, No. 77-225 C (3), 1979 WL 1428, at *7 \n(E.D. Mo. July 2, 1979). \n5. Exemption 7(E) \nExemption 7(E) protects records to the extent that release \"would disclose \ntechniques and procedures for law enforcement investigations or \nprosecutions, or would disclose guidelines for law enforcement \ninvestigations or prosecutions, if such disclosure could reasonably be \nexpected to risk circumvention of law.\" It has been applied to protect DIF \nscores, Peyton v. Reno, No. 98-1457 (SS), 2000 WL 141282, at *1 \n(D.D.C. Jan. 6, 2000); Small v. IRS, 820 F. Supp. 163, 166 (D.N.J. 1992), \nand tolerance and investigative criteria, O’Connor v. IRS, 698 F. Supp. \n204, 205 (D. Nev. 1988). In Mayer-Brown v. IRS, 562 F.3d 1190 (D.C. \nCir. 2009), with a discussion of the meaning of the exemption requirement \nthat disclosure “could reasonably be expected to risk circumvention of the \nlaw,” the court upheld the withholding of settlement criteria and Appeals \nSettlement Guidelines pursuant to exemption 7E. That general \ninformation about law enforcement techniques or guidelines is public \nknowledge does not prevent assertion of this exemption to withhold details \nof an agency’s specific use of certain techniques or the application of \nparticular guidelines. See New York Civil Liberties Union v. Dep’t of \nHomeland Security, 771 F. Supp. 2d 289, 291-293 (S.D.N.Y. 2011). \nWhen exemption 7(E) is asserted to withhold records or information \npertaining to tax law enforcement (i.e., return information), exemption 3 in \nconjunction with section 6103(e)(7) may also apply. \n6. Exemption 7(F) \nExemption 7(F) exempts material the disclosure of which could reasonably \nbe expected to \"endanger the life or physical safety of any individual.\" It \nmight apply, for example, to information that would reveal the identity of \nundercover agents (state or federal) working on matters such as narcotics, \norganized crime, terrorism, or espionage. Clarkson v. IRS, Civ. No. 8:88-\n",
"9-30 \n3036-3K, 1990 U.S. Dist. LEXIS 6887, at *9 (D.S.C. May 2, 1990), aff’d,\n935 F.2d 1285 (table cite), 1991 WL 106190 (4th Cir. June 20, 1991) (per \ncuriam). The exemption, however, is not limited to law enforcement \npersonnel. The 1986 FOIA amendments broadened the scope of the \nexemption to encompass danger to any person. See Amuso v. Dep’t of \nJustice, 600 F. Supp. 2d at 101-02 (explaining that “[w]hile courts \ngenerally have applied exemption 7(F) to protect law enforcement \npersonnel or other specified third parties, by its terms, the exemption is \nnot so limited; it may be invoked to protect ‘any individual’ reasonably at \nrisk of harm.”). \nFor a discussion of FOIA exemptions 8 and 9, not usually asserted by the IRS, \nsee the DOJ FOIA Reference Book at the link given at the beginning of this \nchapter. \nV. STATUTORY EXCLUSIONS \nIn addition to the changes to the law enforcement provisions of exemption 7, the 1986 \namendments to the Act added subsection (c) to FOIA to expand the ability of criminal \nlaw enforcement agencies to protect certain information. Where the requester, a \nsubject of a criminal investigation, is unaware of the investigation, and acknowledging \nthe existence of records in response to that person’s request would result in an \nexemption (7)(A)-type interference, the agency may treat the records as not subject to \nthe Act, for as long as those circumstances exist. 5 U.S.C. § 552(c)(1). To the extent \nan agency maintains informant records under the informant's name and a request is \nmade for them, the records may also be treated as not subject to the Act unless the \ninformant’s status as an informant has been officially confirmed. 5 U.S.C. § 552(c)(2). \nThese exclusions rarely apply to IRS records. If disclosure personnel processing a \nFOIA request or administrative appeal have responsive records to which an exclusion \nwould apply, they should promptly contact Branch 6 or 7 of Procedure and \nAdministration to discuss it and coordinate an appropriate response. Litigation of such \na case also requires special handling. See Islamic Shura Council of Southern \nCalifornia, et al. v. FBI, 779 F. Supp. 2d 1114, 1120-1125 (S.D. Cal. 2011). \nVI. RECOVERABLE FEES \nPermissible fees fall into three categories: search, review, and duplication. Agencies do \nnot charge requesters (other than commercial users) for the first 100 pages of \nduplication or the first two hours of search. 5 U.S.C. § 552(a)(4)(A). Under the \nService’s regulations, individual (as compared to corporate or other institutional) \nrequesters are not charged search fees for requests for records retrieved by identifiers \nthat are covered by the Privacy Act. Treas. Reg. § 601.702(f)(3)(iv)(C). The Act \npermits agencies to recoup the direct costs of editing records made available for release \nunder FOIA, but only from requesters seeking information for their own commercial \ninterests. However, the OPEN Government Act of 2007 placed restrictions on an \n",
"9-31 \nagency’s ability to collect certain fees if the agency fails to respond to a FOIA request \nwithin the statutory time frame. “An agency shall not assess search fees (or in the case \nof a requester described under clause [552(a)(4)(A)(ii)(II)], duplication fees) under this \nsubparagraph if the agency fails to comply with any time limit under paragraph (6), if no \nunusual or exceptional circumstances (as those terms are defined for purposes of \nparagraphs (6)(B) and (C), respectively) apply to the processing of the request.\" \n5 U.S.C. § 552(a)(4)(A)(viii). Conversely, for those requests for which unusual or \nexceptional circumstances do exist, agencies may assess appropriate fees. \nDocuments may be provided without charge or at a reduced charge where the agency \ndetermines it is in the public interest to do so. \"Public interest\" means that the \nnonexempt records are likely to contribute significantly to the public's understanding of \nthe operations or activities of the government and are not primarily in the commercial \ninterest of the requester. \nNote: Indigence is not a basis for a waiver or reduction of fees. The \ndetermination of any fee waiver is made by the local Disclosure Officer. \nVII. LITIGATION CONSIDERATIONS \nA. General \nThe Associate Chief Counsel, Procedure and Administration (P&A) is \nresponsible for coordinating all aspects of litigation arising under FOIA, 5 U.S.C. \n§ 552. Any complaint alleging jurisdiction in part under FOIA and in part under \none or more other statutes or theories falling under the aegis of another Office of \nChief Counsel function must be coordinated with P&A Branches 6 and 7. See\nCCDM 37.2.2 for information pertaining to FOIA litigation. \nB. Procedures Upon Receipt of a FOIA Complaint \nUpon receipt by any component of the Office of Chief Counsel of a copy of a \ncomplaint that alleges jurisdiction under FOIA, in whole or in part, the complaint \nshould be sent to the Technical Services Support Branch (e-mail to “TSS4510”) \nfor case opening. FOIA provides 30 days for an agency to answer; therefore the \ncomplaint should also be e-mailed to the Chiefs of P&A Branches 6 and 7 for \nassignment. The P&A Branch 6 or 7 attorney assigned to the case will prepare a \ndefense letter to assist the Department of Justice Tax Division in defending the \nService. \nC. Coordination \nAfter the P&A attorney has provided the Tax Division with the defense letter, \ndeclarations necessary to support a motion for summary judgment or other \ndispositive motion, and, if necessary, copies of the records at issue in a format \nsuitable for in camera submission, the P&A attorney is responsible for furnishing \n",
"9-32 \nany additional assistance requested by the Tax Division. This responsibility may \ninclude obtaining additional declarations, furnishing or updating background \ninformation, enlarging upon a defense, preparing a court-ordered Vaughn Index \n(see Section VII.E., below), answering interrogatories or other requests for \ndiscovery, assessing a settlement proposal, or assessing a request for attorney \nfees and court costs. See CCDM 37.2.2.4. \nD. Declarations\nFOIA litigation is usually resolved on motions to dismiss or for summary \njudgment. Such motions must be supported by one or more declarations setting \nforth the actions the agency has taken to fulfill its obligations under FOIA to \nsearch for and make available (subject to applicable exemptions) the requested \ndocuments. Where documents have been withheld in whole or in part, a \ndeclaration will be needed to describe the withheld material and the applicability \nof each asserted exemption to that material. \nE. Vaughn Index\nUnder FOIA, the defendant agency bears the burden of sustaining its action of \nwithholding records. See 5 U.S.C. § 552(a)(4)(B). See also Brady-Lunny v. \nMassey, 185 F. Supp. 2d 928, 931 (C.D. Ill. 2002) (“Since the Government is the \nparty refusing to produce the documents, it bears the burden of showing that the \ndocuments are not subject to disclosure.”). The Court of Appeals for the District \nof Columbia Circuit first required a formal index of withheld documents, now \ncommonly referred to as a “Vaughn Index.” See Vaughn v. Rosen, 484 F.2d \n820, 827 (D.C. Cir. 1973). A Vaughn Index is not required merely because a \nrequester (or plaintiff) asks for it; an Index is required only when a court hearing \nor FOIA complaint, orders it. A motion for an order for an Index should be \nopposed as premature if the agency has not yet had an opportunity to justify its \nassertion of various exemptions, in particular exemption 7(A). See Int’l Union of \nElevator Constructors v. Dep’t of Labor, 747 F. Supp. 2d 976, 981-82 (N.D. Ill. \nOct. 12, 2010). \nA Vaughn Index is an itemized index, correlating each withheld document (or \nportion thereof) with a specific FOIA exemption and the relevant part of the \nagency’s nondisclosure justification. Vaughn v. Rosen, 484 F.2d at 827. The \nIndex is intended to allow the court to make a rational decision about whether the \nwithheld material must be produced without actually viewing the documents \nthemselves and to produce a record that will render its decision capable of \nmeaningful review on appeal. See King v. Dep’t of Justice, 830 F.2d 210, 219 \n(D.C. Cir. 1987). There is no predetermined format for a Vaughn Index. An \nappropriately detailed and non-conclusory declaration describing the documents \nwithheld in whole or in part and explaining the applicability of the asserted \nexemptions will usually meet this requirement. The declaration should also note, \nwhen applicable, that nonexempt portions of the document(s) could not \n",
"9-33 \nreasonably be segregated from exempt material. Such a declaration is often \ncomposed for purposes of a dispositive motion, and can make a separate \nVaughn Index unnecessary. \nF. Discovery \nDiscovery in FOIA litigation is rarely appropriate. A well-crafted and complete \ndeclaration describing the search efforts and explaining how those efforts were \ncalculated to locate responsive records, will usually provide the information \nnecessary for a court to determine whether a search was reasonable. Discovery \nregarding the withheld documents is inappropriate because release of the \nwithheld material in response to a discovery demand will eliminate the agency’s \nFOIA exemption assertions. \nG. Fees and Costs\nFOIA authorizes an award of fees and costs to a plaintiff that “substantially \nprevails” in litigation. In 2007, Congress revised the eligibility criteria. To be \ndeemed to have substantially prevailed, the plaintiff must have obtained relief \nthrough either (i) a judicial order, or an enforceable written agreement or consent \ndecree; or (ii) a voluntary or unilateral change in position by the agency, if the \nplaintiff’s claim is not insubstantial. A stipulation approved by the court can be a \njudicial order. See Judicial Watch, Inc. v. Dep’t of Justice, 774 F. Supp. 2d 225, \n227-230 (D.D.C. Mar. 31, 2011). If a plaintiff is eligible for an award of costs and \nfees, the court must then consider whether the plaintiff is entitled. Four non-\nexclusive factors are considered to determine eligibility: (1) the public benefit \nderived from the case; (2) the commercial benefit to the plaintiff; (3) the nature of \nthe plaintiff's interest in the records; and (4) whether the government has a \nreasonable basis for withholding the requested information. Id. at 230-232; \nUnited Am. Fin., Inc. v. Potter, 770 F. Supp. 2d 252, 255-58 (D.D.C. 2011). For \na brief recitation of the history and applicability of FOIA costs and fee provisions, \nsee Brayton v. U.S. Trade Representative, 641 F.3d 521, 524-26 (D.C. Cir. \n2011). \n",
"10-1 \nCHAPTER 10 \nLITIGATION PRIVILEGES \nI. INTRODUCTION \nThis chapter provides a brief overview of the privileges most commonly invoked by the \nIRS in disclosure and privacy actions and discusses certain procedural issues \nassociated with the claim of executive privilege. For more information about litigation \nprivileges, consult with Branches 6 & 7 of the Office of the Associate Chief Counsel \n(Procedure & Administration). See generally Chapter 9, Freedom of Information Act, for \na further discussion of privileges. \nThe government may refuse to provide litigants with access to documents and may \nrefuse to provide information through other means such as deposition or trial testimony \non three grounds: \n1. Statutes such as I.R.C. ' 6103, the Privacy Act of 1974, 5 U.S.C. ' 552a, and \nthe Bank Secrecy Act, Pub. L. No. 91-508, 84 Stat. 1114 (1970) (codified at \n12, 18, and 31 U.S.C.), amended by Pub. L. No. 107-56, 115 Stat. 327 \n(2001), which allow or require specified material to be kept confidential; \n2. Evidentiary privileges available to any litigant, such as the attorney-client \nprivilege and work product doctrine, and other generally available objections \nsuch as relevancy; and \n3. Certain privileges available only to the government – the so-called \ngovernmental privileges. For a listing of the governmental privileges, see\nAss’n for Women in Science v. Califano, 566 F.2d 339, 343 (D.C. Cir. 1977). \nII. STATUTORY PRIVILEGES\nA. I.R.C. ' 6103\nThe scope of documents and information subject to section 6103, and the \ncircumstances under which section 6103 makes disclosure of such documents \nand information unlawful, are discussed at length elsewhere in this book. We \nnote, however, that notwithstanding the limitations of section 6103, upon \nissuance of a court order by the presiding judge in a federal or state criminal \nproceeding, the Service will disclose to the attorney for the government, pursuant \nto the constitutional doctrine announced in Brady v. Maryland, 373 U.S. 83 \n(1963), returns and/or return information that may be determined to be \nexculpatory. If the attorney for the government does not believe that disclosure \nof a particular return or item of return information is required under the \nConstitution, the attorney can offer to submit the information to the court in \ncamera for a determination as to whether the information is exculpatory evidence \nrequired to be disclosed to the defendant. \n",
"10-2 \nB. Privacy Act of 1974, 5 U.S.C. ' 552a\nAs a general rule, the Privacy Act, 5 U.S.C. § 552a, is not a statutory privilege. \nIn Laxalt v. McClatchy, 809 F.2d 885, 890 (D.C. Cir. 1987), the D.C. Circuit noted \nthat, “[w]here the actual content of the record has the potential to cause harm to \nthe affected party, a court supervising discovery should consider this factor in \ndetermining how to exercise its traditional authority to limit discovery.” \nIn accordance with Henthorn v. United States, 931 F.2d 29, 30 (9th Cir. 1991), \nthe Service will disclose, in response to a criminal defendant's discovery request, \n\"exculpatory\" information found in personnel or other Privacy Act covered files of \nthe investigating agents. \nC. Bank Secrecy Act, 31 U.S.C. ' 5319\nIf Title 31 documents or information are sought in discovery, you should refer to \nthe Re-dissemination Guidelines for Bank Secrecy Act Information, issued \nNovember 28, 2007, by the Director of the Financial Crimes Enforcement Network. \nThese guidelines are presently being incorporated into the IRM. See IRM Exhibit \n4.26.14-2 for the 2004 version of the Guidelines. See generally Chapter 7 for \nadditional information on the Bank Secrecy Act. \nIII. TYPES OF EVIDENTIARY PRIVILEGES \nA. Attorney-Client Privilege\n“The attorney-client privilege protects confidential communications made \nbetween clients and their attorneys when the communications are for the \npurpose of securing legal advice or services. It ‘is one of the oldest recognized \nprivileges for confidential communications.’” In re Lindsey, 158 F.3d 1263, 1267-\n68 (D.C. Cir. 1998), cert. denied sub nom., Office of the President v. Office of \nIndep. Counsel, 525 U.S. 996 (1998) (quoting Swidler & Berlin v. United States,\n524 U.S. 399, 403 (1998)). Its purpose is to ensure that clients’ confidences to \ntheir attorneys will be protected, thereby encouraging clients to be open and \nhonest in their communications with their attorneys. This confidentiality is \ndeemed essential to the adversary system underlying our judicial process. That \nprocess is dependent upon sound legal advice and advocacy. These interests \nare, in turn, fostered by attorneys being fully informed by their clients. The \nattorney-client privilege reflects society’s judgment that promotion of trust and \nhonesty within the relationship is more important than the burden it potentially \nplaces on the discovery of truth. \n“The [attorney-client] privilege also protects communications from attorneys to \ntheir clients if the communications ‘rest on confidential information obtained from \nthe client.’” Tax Analysts v. IRS, 117 F.3d 607, 618 (D.C. Cir. 1997) (quoting In\n",
"10-3 \nre Sealed Case, 737 F.2d 94, 99 (D.C. Cir. 1984)). The documents at issue in \nTax Analysts were Field Service Advice Memoranda (FSAs) issued by the \nnational office of the Office of Chief Counsel in response to requests from field \npersonnel. The court found that they contained no Aconfidential communications@\nwhere the factual information in the documents was obtained from taxpayers and \ndid not contain confidential information concerning the agency. Id. at 619. \nMoreover, the court found that the legal analysis contained in FSAs was not \nsubject to the attorney-client privilege because it was in the nature of a body of \nworking law. The court held that the attorney-client privilege would apply only to \nparticular portions of FSAs containing confidential information transmitted by field \npersonnel regarding the scope, direction, or emphasis of audit activity. Tax \nAnalysts, 117 F.3d at 619-20. \nCommunications between a client organization and its in-house counsel \nregarding business decisions must be distinguished from communications \nbetween a client organization and its in-house counsel regarding legal advice. \nUnited States v. Chevron Corp. No. C-94-1885 SBA, 1996 WL 264769, at *3 \n(N.D. Cal. Mar. 13, 1996). The privilege only applies if the “primary purpose of \neach document was the production of legal advice.” Id. “If the document was \nprepared for purposes of simultaneous review by legal and nonlegal personnel, it \ncannot be said that the primary purpose of the document is to secure legal \nadvice.” Id. (quoting United States v. IBM Corp., 66 F.R.D. 206, 213 (S.D.N.Y. \n1974)). Communications between the attorneys and non-attorneys “who have \nbeen engaged to assist the attorney in providing legal advice” may also be \nprotected by the privilege. United States v. Richey, 632 F.3d 559, 566 (9th Cir. \n2011) (“If the advice sought is not legal advice, but, for example, accounting \nadvice from an accountant, then the privilege does not exist.”). \nThe attorney-client privilege is not limited to communications made in the context \nof litigation. Coastal States Gas Corp. v. Dep’t of Energy, 617 F.2d 854, 862 \n(D.C. Cir. 1980). Attorney and client are not “mutually exclusive classes.” Mead \nData Cent., Inc. v. Air Force, 566 F.2d 242, 253 n.21 (D.C. Cir. 1977). An \nattorney can seek legal advice from another attorney with the assurance that the \nprivate communication from his client will not be subject to disclosure. Id. The \nprivilege is not lost when the communications are circulated among members of \nan organization who have the authority to act on behalf of the organization \nconcerning the subject matter of the communication. Id. at 253 n.23. The \nattorney-client privilege protects attorney-client communications where the \nspecifics of the communication are confidential, even though the underlying \nsubject matter is known to others. Upjohn Co. v. United States, 449 U.S. 383, \n395-96 (1981). \nThe attorney-client privilege has been narrowly construed. It will cover those \nsituations only where disclosure might not have been made absent the privilege. \nFisher v. United States, 425 U.S. 391, 403 (1976). A fundamental prerequisite is \nthat confidentiality of the client communication must have existed at the time it \n",
"10-4 \nwas made and that it remains at the time of the privilege claim. Thus, where it is \nanticipated that the information communicated will be made \"public\" (i.e., in a \ncourt filing or to an agency, such as in the filing of a tax return), then the \nnecessary expectation of confidentiality does not exist and the attorney-client \nprivilege will not attach. United States v. Lawless, 709 F.2d 485, 487-488 (7th \nCir. 1983). \nAlthough recognizing that the attorney-client privilege clearly does extend to \nconfidential communications with attorneys within the government, the D.C. \nCircuit has held that a government attorney may not invoke the attorney-client \nprivilege to shield information related to criminal misconduct from disclosure to a \ngrand jury. In re Lindsey, 158 F.3d at 1272-78. \nB. Work Product Doctrine\nThe work product doctrine protects documents and other memoranda prepared \nin and in anticipation of litigation. Hickman v. Taylor, 329 U.S. 495, 510-12 \n(1947). Since its purpose is to protect the adversary trial process by insulating \nthe attorney's preparation from scrutiny, the work product doctrine does not \nattach until \"some articulable claim, likely to lead to litigation,\" has arisen. \nCoastal States Gas Corp. v. Dep’t of Energy, 617 F.2d 854, 865 (D.C. Cir. 1980). \nThe doctrine has a broad sweep: \n1. Litigation need not have actually commenced, so long as specific \nclaims have been identified which make litigation probable. Kent Corp. \nv. NLRB, 530 F.2d 612, 623 (5th Cir. 1976), cert. denied, 429 U.S. 920 \n(1976). Even documents prepared when the identity of the prospective \nlitigation opponent was unknown can suffice to come within the \ndoctrine. Delaney, Migdail & Young, Chtd. v. IRS, 826 F.2d 124, 127 \n(D.C. Cir. 1987) (“[The] plaintiff here is not trying to ascertain the \nagency’s view of the law in order to comply or to advise clients on how \nto comply; it is seeking the agency’s attorneys’ assessment of the \nprogram’s legal vulnerabilities in order to make sure it does not miss \nanything in crafting its legal case against the program.”). The mere fact \nthat it is conceivable that litigation may occur at some future time will \nnot be sufficient to protect documents generated by attorneys as work \nproduct. Senate of P.R. v. Dep’t of Justice, 823 F.2d 574, 586-87 (D.C. \nCir. 1987). The work product doctrine has also been held to attach to a \nlaw enforcement investigation where the investigation is “based upon a \nspecific wrongdoing and represent[s] an attempt to garner evidence \nand to build a case against the suspected wrongdoer.” Safecard \nServs., Inc. v. SEC, 926 F.2d 1197, 1202 (D.C. Cir. 1991). \nEven where a document is prepared for two or more disparate \npurposes, so long as litigation was a major factor in the decision to \n",
"10-5 \ncreate it, then the work product doctrine will attach. The majority rule is \nthat documents should be deemed prepared “in anticipation of \nlitigation” if “in light of the nature of the document and the factual \nsituation in the particular case, the document can fairly be said to have \nbeen prepared or obtained because of the prospect of litigation.@\n8 Charles Alan Wright, et al., FED. PRACTICE & PROCEDURE ' 2024 (3d \ned. 2010); accord United States v. Roxworthy, 457 F.3d 590, 593 (6th \nCir. 2006), nonacq., I.R.B. 2007-40 (Oct. 1, 2007) (Service will continue \nto aggressively seek the enforcement of summonses, challenging \nunjustified assertions of the work product doctrine in all appropriate \ncases) (Action on Decision is available at: http://www.irs.gov/pub/irs-\naod/aod200704.pdf); United States v. Adlman, 134 F.3d 1194, 1202-03 \n(2d Cir. 1998); Nat’l Union Fire Ins. Co. v. Murray Sheet Metal Co., Inc.,\n967 F.2d 980, 984 (4th Cir. 1992); Senate of P.R. v. Dep’t of Justice,\n823 F.2d at 586 n.42; Simon v. G.D. Searle & Co., 816 F.2d 397, 401 \n(8th Cir. 1986), cert. denied, 484 U.S. 917 (1987); Binks Mfg. Co. v. \nNat’l Presto Indus., Inc., 709 F.2d 1109, 1118-19 (7th Cir. 1983); In re\nGrand Jury Proceedings, 604 F.2d 798, 803 (3d Cir. 1979). The \nminority view limits the applicability of the work product doctrine to \ndocuments prepared “primarily” to assist in litigation. See, e.g., United \nStates v. El Paso Co., 682 F.2d 530, 543-44 (5th Cir. 1982), cert.\ndenied, 466 U.S. 944 (1984). \nNote that “‘documents that are prepared in the ordinary course of \nbusiness or that would have been created in essentially similar form \nirrespective of the litigation’ are not protected.” Pac. Gas and Elec. Co. \nv. United States, 69 Fed. Cl. 784, 798-99 (Fed. Cl. 2006) (quoting \nAdlman, 134 F.3d at 1202). Thus, documents prepared in the agency’s \nordinary course of business, e.g., review of a proposed statutory notice \nof deficiency or a draft summons, without more, may not be accorded \nprotection. Similarly, documents that are required to be created to \ncomply with the law are not protected by the work product doctrine. \nUnited States v. Richey, 632 F.3d 559, 567-568 (9th Cir. 2011); In re\nRaytheon Sec. Litig., 218 F.R.D. 354, 359 (D. Mass. 2003). But see\nUnited States v. Deloitte LLP, 610 F.3d 129, 137-39 (D.C. Cir. 2010). \nIn United States v. Textron, Inc. and Subsidiaries, 577 F.3d 21, 29-31 \n(1st Cir. 2009) (en banc), cert. denied, 130 S. Ct. 3320 (2010), the First \nCircuit concluded that tax accrual workpapers are indisputably \nprepared to support a company’s financial statement filings and to gain \nindependent auditor approval, and that these are purposes or functions \nthat are compelled by public requirements unrelated to litigation and \narise in the ordinary course of business for a public company. The \nFirst Circuit further concluded that the workpapers are not prepared for \n“use” in possible litigation and would not serve any useful purpose for \nTextron in conducting any litigation, if it arose. \n",
"10-6 \nThe work product doctrine has also been held to cover documents \nrelating to possible settlements of litigation, as well as the final decision \nto terminate litigation. Cities Serv. Co. v. FTC, 627 F. Supp. 827, 832 \n(D.D.C. 1984), aff'd, 778 F.2d 889 (D.C. Cir. 1985) (table cite). \n2. Rule 26(b)(3)(A) of the Federal Rules of Civil Procedure allows the \nwork product doctrine to be used to protect documents prepared “by or \nfor another party or its representative (including the other party’s \nattorney, consultant, surety, indemnitor, insurer, or agent).” FED. R.\nCIV. P. 26(b)(3)(A). Not only do documents prepared by agency \nattorneys who are responsible for the litigation of a case that is being \ndefended or prosecuted by DOJ qualify for the doctrine, but also \ndocuments prepared by an attorney not employed as a litigator. Cook \nv. Watt, 597 F. Supp. 545, 548 (D. Alaska 1983). Moreover, courts \nhave recognized that documents prepared by non-attorneys who are \nsupervised by attorneys may also qualify for protection as work \nproduct. Shacket v. United States, 339 F. Supp. 2d 1092, 1094-96 \n(S.D. Cal. 2004) (protecting from disclosure a special agent’s report \nused to summarize and analyze evidence and to recommend \nprosecution of defendant). \n3. The work product doctrine has been held to persist where the \ninformation has been shared with a party holding some common \ninterest with the agency. United States v. American Tel. and Tel. Co.,\n642 F.2d 1285, 1299-1300 (D.C. Cir. 1980). \n4. Factual information is fully entitled to work product protection. Tax \nAnalysts v. IRS, 117 F.3d 607, 620 (D.C. Cir. 1997); Martin v. Office of \nSpecial Counsel, 819 F.2d 1181, 1187 (D.C. Cir. 1987); A. Michael's \nPiano, Inc. v. FTC, 18 F.3d 138, 147 (2nd Cir. 1994), cert. denied, 513 \nU.S. 1015 (1994). \n5. The termination of litigation does not vitiate the protection for material \notherwise properly categorized as work product. FTC v. Grolier, Inc.,\n462 U.S. 19, 26-28 (1983). \n6. FED. R. CIV. P. 26(b)(2)(B) says that expert witnesses who provide a \nwritten report must disclose “the facts or data considered by the \nwitness in forming them.” “There is a split of authority, however, \nregarding whether amended Rule 26(a)(2)(B) – which requires that \ntestifying experts produce all information considered by them in forming \ntheir opinion – trumps Rule 26(b)(3), which protects attorney work \nproduct.” In re Teleglobe Commc’n Corp., 392 B.R. 561, 574 (Bankr. \nD. Del. 2008). The Courts of Appeals in the Fourth Circuit, Sixth \nCircuit, and Federal Circuit have required that experts disclose all \ninformation provided to them regardless of whether that information \n",
"10-7 \nwould otherwise be protected by the work product doctrine. See Elm \nGrove Coal Co. v. Dir., Office of Workers’ Comp. Programs, 480 F.3d \n278, 301 (4th Cir. 2007); Reg’l Airport Auth. of Louisville v. LFG, LLC,\n460 F.3d 697, 717 (6th Cir. 2006); In re Pioneer Hi-Bred Int’l, Inc., 238 \nF.3d 1370, 1375 (Fed. Cir. 2001). The Third Circuit has held that \ninformation given to an expert witness need not be disclosed if that \ninformation is protected by the work product doctrine. In re Cendant \nCorp. Sec. Litig., 343 F.3d 658, 665 (3d Cir. 2003). While the First and \nFifth Circuits have not ruled on this matter, several district courts have \naddressed the issue. See TV-3, Inc. v. Royal Ins. Co. of Am., 194 \nF.R.D. 585, 589 (S.D. Miss. 2000); and Nexxus Products Co. v. CVS \nNew York, Inc., 188 F.R.D. 7, 9 (D. Mass. 1999). \n7. The work product doctrine has two aspects. First is the “core work \nproduct,” or trial preparation material, which is virtually inviolate, and \nencompasses the mental impressions, conclusions, and legal theories \nof the attorney. Hickman, 329 U.S. at 509-10 (denial of production \nwould cause hardship or injustice). The second aspect is the more \nfactual information, such as witness statements, which may be subject \nto disclosure for good cause shown. Guilford Nat’l Bank v. Southern \nRy, 297 F.2d 921 (4th Cir. 1962) (good cause requires an inquiry into \nthe importance of and need for the materials as well as alternative \nsources for securing the same information.) \nC. Other Less Frequently Asserted Privileges\nIn drafting Article V of the Federal Rules of Evidence, the House Committee on \nthe Judiciary initially identified nine specific privileges that the federal courts must \nrecognize: required reports, lawyer-client, psychotherapist-patient, husband-wife, \ncommunications to a clergyman, political vote, trade secrets, secrets of state and \nother official information, and identity of informer. H.R. REP. NO. 93-650, at 7-8 \n(1975), reprinted in 1974 U.S.C.C.A.N. 7075, 7082-83. Ultimately, however, \nRule 501 provides for courts to evolve privileges as necessary. Trammel v. \nUnited States, 445 U.S. 40, 47 (1980). \nIn Fed. Open Mkt. Comm. v. Merrill, 443 U.S. 340, 356-57 (1979), the Supreme \nCourt recognized a privilege based upon FED. R. CIV. P. 26(c)(7), that provides \nthat “for good cause shown . . . a trade secret or other confidential research, \ndevelopment or commercial information” is protected from discovery. The rule \nhas been amended and is now FED. R. CIV. P. 26(c)(1)(G). \nRule 408 of the Federal Rules of Evidence generally prohibits the introduction of \nevidence of compromise and offers to compromise claims when offered to prove \nliability for, the invalidity of, or amount of a claim in a civil action. See FED. R. \nEVID. 408. While most courts have not recognized a formal settlement privilege, \nthe Court of Appeals for the Sixth Circuit expressly recognized a civil discovery \n",
"10-8 \nprivilege protecting communications in the course of settlement negotiations. \nSee Goodyear Tire & Rubber Co. v. Chiles Power Supply, Inc., 332 F.3d 976, \n981 (6th Cir. 2003) (“[A]ny communications made in furtherance of settlement \nare privileged.”). The court reasoned that the public interest in furthering judicial \nefficiency through settlement of claims, coupled with the exclusion of such \nevidence by Rule 408, and the fact that parties to settlement negotiations often \nmake statements that would belie their litigation position all supported recognition \nof a settlement privilege. Goodyear, 322 F. 3d 976. To date, no other court of \nappeals has adopted the Goodyear approach or recognized a formal settlement \nnegotiations privilege. The D.C. Circuit was provided with an opportunity but \ndeclined to rule on the basis that, in light of the facts and circumstances before it, \nsuch a decision would be premature. In re Subpoena Duces Tecum Issued to \nCommodity Futures Trading Comm’n, 439 F.3d 740, 754 (D.C. Cir. 2006). \nOn its face, Rule 408 is not a discovery rule. It only limits the admissibility of \nsome, but not all, evidence of events that occur during the course of settlement \nnegotiations. See FED. R. EVID. 408. Moreover, Rule 408 provides for the \nadmissibility of evidence relating to settlement negotiations for specific purposes. \nSee FED. R. EVID. 408(b) (permitting the introduction of evidence of compromise \nand offers to compromise to prove a witness's bias or prejudice, negate a \ncontention of undue delay, or to prove an effort to obstruct a criminal \ninvestigation). The only prohibited use of such evidence is to prove or disprove \nliability or the amount of a claim “or to impeach through a prior inconsistent \nstatement or contradiction.” Id. at 408(a). \nRule 501 authorizes federal courts to define new privileges in light of “reason and \nexperience.” FED. R. EVID. 501. Nonetheless, the Supreme Court has frequently \nwarned that the ability to create new privileges should be used sparingly. \nGenerally, the public has “a right to every man's evidence” and that “any \nexemptions which may exist are distinctly exceptional, being so many \nderogations from a positive general rule.” Jaffe v. Redmond, 518 U.S. 1, 9 \n(1996) (citing United States v. Bryan, 339 U.S. 323, 331 (1950)). \nMany courts have rejected the existence of a settlement privilege. See In re\nSubpoena Issued to Commodity Futures Trading Comm'n, 370 F. Supp. 2d 201, \n211-12 (D.D.C. 2005); Computer Assocs. Int’l, Inc. v. Am. Fundware, Inc., 831 F. \nSupp. 1516, 1531 (D.Colo. 1993) (Rule 408 is “not a broad discovery privilege”); \naccord NAACP Legal Defense and Educ. Fund, Inc. v. U.S. Dep't of Justice, 612 \nF. Supp. 1143, 1146 (D.D.C. 1985). See also In re Gen. Motors Corp. Engine \nInterchange Litig., 594 F.2d 1106, 1124 (7th Cir. 1979) (finding “no convincing \nbasis” for the proposition that “the conduct of settlement negotiations is protected \nfrom examination by some form of privilege”); Alcan Int'l, Ltd. v. S.A. Day Mfg. Co.,\n179 F.R.D. 403, 405 (W.D.N.Y. 1998) (noting that Rule 408 does not limit the \ndiscovery of evidence); JZ Buckingham Invs., LLC v. United States, 78 Fed. Cl. \n15, 22-23 (2007) (citing In re Subpoena favorably and disagreeing with Goodyear).\nSome courts have taken a middle-ground position and held that settlement-\n",
"10-9 \nnegotiation materials may not be disclosed absent a showing greater than that \nrequired for ordinary discovery under Rule 26. See, e.g., Bottaro v. Hatton \nAssocs., 96 F.R.D. 158, 160 (E.D.N.Y. 1982) (requiring a “particularized showing”). \nD. Governmental Privileges\n1. State Secrets Privilege\nThe state secrets privilege encompasses matters the disclosure of which \nwould harm national security or the conduct of our foreign relations. The \nprivilege has long been recognized as common law and was upheld by the \nSupreme Court in United States v. Reynolds, 345 U.S. 1 (1953). Although \nthe Reynolds Court expressly relied only on the common law, part of that \nopinion and opinions in other cases suggest that the privilege has a \nconstitutional basis founded on the President’s duties in the areas of \nnational security and foreign affairs. See Reynolds, 345 U.S. at 6 n.9; \nUnited States v. Nixon, 418 U.S. 683, 708 (1974). In the context of the \nService, the state secrets privilege is rarely invoked; when it has been \ninvoked, it has been with respect to treaty negotiation-related information \nand documents. See Xerox Corp. v. United States, 12 Cl. Ct. 93 (1987) \n(upholding government’s assertion of state secrets privilege because \nproduction would impair the government’s ability to deal with the tax \nauthorities of foreign governments). \nTo invoke the state secrets privilege successfully, the government needs \nto satisfy the court that “there is a reasonable danger that compulsion of \nthe evidence will expose military matters which, in the interest of national \nsecurity, should not be divulged.” Reynolds, 345 U.S. at 10. Once it is \nestablished that state secrets are involved, “the privilege is absolute.” Id.\nat 10. The litigant’s need is relevant only to establish how closely the \ncourt will examine the validity of the assertion of the privilege. See \ngenerally Trulock v. Wen Ho Lee, 66 F. App’x 472, 475-76 (4th Cir. 2003) \n(discussing the basis for privilege and the circumstances under which \ninvocation of privilege will force dismissal of the case). \n2. Deliberative Process Privilege\nThe government may also assert a privilege to protect opinions, \nrecommendations, and advice generated in the process of formulating \npolicies and making decisions—the so-called “deliberative process” of the \ngovernment. (As discussed below, courts sometimes use the more \ngeneral term “executive privilege” interchangeably with “deliberative \nprocess” or “governmental” privilege.) The deliberative process privilege \nrests in part on the same need for uninhibited communication that \nunderlies the attorney-client privilege. The underlying premise of the \nprivilege is that frank and open discussions within the government will be \n",
"10-10 \nstifled if disclosure of policy materials is compelled in litigation. NLRB v. \nSears, Roebuck & Co., 421 U.S. 132, 150-51 (1975). The district court in \nCarl Zeiss Stiftung v. V.E.B. Carl Zeiss, Jena, 40 F.R.D. 318 (D.D.C. \n1966), aff'd on opinion below, 384 F.2d 979 (D.C. Cir. 1967), cert. denied,\n389 U.S. 952 (1967), cited Aanother policy of equal vitality and scope@:\nThe judiciary, the courts declare, is not authorized “to probe the \nmental processes” of an executive or administrative officer. This \nsalutary rule forecloses investigation into the methods by which a \ndecision is reached, the matters considered, the contributing \ninfluences, or the role played by the work of others—results \ndemanded by exigencies of the most imperative character. No \njudge could tolerate an inquisition into the elements comprising his \ndecision—indeed, “[s]uch an examination of a judge would be \ndestructive of judicial responsibility”—and by the same token “the \nintegrity of administrative process must be equally respected.@\n40 F.R.D. at 325-26 (footnotes omitted) (quoting United States v. Morgan,\n313 U.S. 409, 422 (1941)). Cf. Nixon, 418 U.S. at 705-06 (finding that the \nprivilege for presidential communications is supported both by the need for \nconfidential communication within the government and the separation of \npowers under the Constitution but not reaching the issue of whether there \nis a constitutional basis for privileged communications between lower-\nranking officials). \nThe deliberative process privilege focuses on more than the adoption of \nagency policies. Judicial Watch, Inc. v. Clinton, 880 F. Supp. 1, 13 (D.D.C. \n1995) (in addressing the deliberative process privilege, parties should not \nexalt semantics over substance). The privilege is intended to protect the \ndeliberative process and, thereby, the quality of agency decisions. Sierra \nClub v. Dep’t of Interior, 384 F. Supp. 2d 1, 15 (D.D.C. 2004). See also\nNLRB v. Sears, Roebuck & Co., 421 U.S. 132, 149, (1975) (the deliberative \nprocess privilege shelters “documents reflecting advisory opinions, \nrecommendations and deliberations comprising part of a process by which \ngovernment decisions and policies are formulated”); Casad v. Dep’t of \nHealth and Human Servs., 301 F.3d 1247, 1251 (10th Cir. 2002) (noting \nthat the deliberative process privilege is intended to “enhance the quality of \nagency decisions by protecting open and frank discussion among those \nwho make them within the Government”); California Native Plant Soc’y v. \nEPA, 251 F.R.D. 408, 412 (N.D. Cal. 2008) (“[t]he privilege protects the \ndecision making process at large, and a document need not lead to a \nspecific decision, let alone a final decision, in order to be protected”). To \nproperly claim the privilege, an agency is not required to demonstrate a \nspecific final decision, but simply establish what deliberative process was \ninvolved and the role played by the contested evidence in the course of that \nprocess. Lurie v. Dep’t of the Army, 970 F. Supp. 19, 33 (D.D.C. 1997). \n",
"10-11 \nSee also Judicial Watch, Inc. v. Export-Import Bank, 108 F. Supp. 2d 19, 35 \n(D.D.C. 2000) (citing Formaldehyde Inst. v. Dep’t of Health & Human Servs,\n889 F.2d 1118, 1123 (D.C. Cir. 1989)). \nThe deliberative process privilege does not protect material if disclosure \nwould not hinder the government’s decision-making processes. For \nexample, factual material is not privileged, unless it is inextricably \nintertwined with policy recommendations, EPA v. Mink, 410 U.S. 73, 87-8 \n(1973), or selectively chosen so as to reflect the deliberative process itself, \nMead Data Cent., Inc. v. Air Force, 566 F.2d 242, 256 (D.C. Cir. 1977). \nThus, analytical portions, but not the entirety, of revenue agent reports, \nspecial agent reports, Appeals’ case memos, etc., may typically fall within \nthe deliberative process privilege. A document embodying an outcome of \nthe decision-making process (the decision itself) is not privileged, even \nthough it may have originally been drafted as a recommendation. For \nexample, a memorandum containing a recommendation of a subordinate \nto a superior, which includes an \"approved\" line that has been signed, is \nno longer privileged under the deliberative process privilege. Also not \nprivileged is a document that has been incorporated by reference in a final \nagency document. In contrast, where a subordinate provides a superior \nwith a memorandum recommending a decision, and the superior renders \na written decision consistent with the recommendation but does not \nattribute the reasons for the decision to the subordinate's memorandum, \nthe superior=s action does not vitiate the deliberative process privilege for \nthe recommendatory memorandum. See, e.g., Sears, 421 U.S. at 155-58. \nGenerally, drafts of documents are protected from disclosure under the \ndeliberative process privilege. Arthur Anderson & Co. v. IRS, 679 F.2d \n254, 257-58 (D.C. Cir. 1982). \nUnlike the state secrets privilege, the deliberative process privilege is not \nabsolute. In determining whether to recognize the privilege, a court must \nbalance the public interest in protecting the information with the litigant’s \nneed for it. The court may weigh factors such as the relevance of the \ninformation sought, its availability elsewhere, the nature of the case, the \ndegree to which disclosure would hinder the government’s ability to hold \nfrank discussions about contemplated policy, and the extent to which \nprotective orders may ameliorate any potential harm caused by disclosure. \n",
"10-12 \n3. Informant Privilege \nThe informant privilege allows the government to withhold the identities of \npersons who furnish information about violations of law to officers charged \nwith law enforcement. See, e.g., Roviaro v. United States, 353 U.S. 53, \n59 (1957). The rationale for the informant privilege has been explained as \nfollows: \n[I]t has been the experience of law enforcement officers that the \nprospective informer will usually condition cooperation on an \nassurance of anonymity, fearing that if disclosure is made, physical \nharm or other undesirable consequences may be visited upon him \nor his family. By withholding the identity of the informer, the \ngovernment profits in that the continued value of informants placed \nin strategic positions is protected, and other persons are \nencouraged to cooperate in the administration of justice. \nUnited States v. Tucker, 380 F.2d 206, 213 (2d Cir. 1967). The privilege \nbelongs to the government, not the informant. Roviaro, 353 U.S. at 59. \nMoreover, only the identity of the informant is privileged. Id. at 60. The \ninformation the informant provides may not be withheld unless its \ndisclosure would reveal the informant=s identity. Id.\nIn Dep’t of Justice v. Landano, 508 U.S. 165, 181 (1993), a case under \nFOIA, the Supreme Court held that the government is not entitled to a \npresumption that all sources supplying information to the FBI in the course \nof a criminal investigation are confidential sources within the meaning of \nexemption 7(D) of FOIA.67 On the other hand, the court held that \nexemption 7(D) is not limited only to those sources whom the FBI \npromised complete secrecy; the exemption would also encompass those \nsources who furnished information with the understanding that the “FBI \nwould not divulge the communications except to the extent the Bureau \nthought necessary for law enforcement purposes[,]” such as testimony. \nId. at 174. Moreover, confidentiality may be implied by the particular \nfactual circumstances, such as whether the informer is paid, and the type \nand nature of contact between the informer and agency. \nLike the deliberative process privilege, the informant privilege is qualified. \nThe government must show that its interest in effective law enforcement \noutweighs the litigant’s need for the information. Rovario, 353 U.S. at 60-\n61. Where the disclosure of an informer’s identity, or of the contents of his \ncommunication (where it would reveal the informer’s identity), is relevant \n67 Exemption 7(D) of FOIA, 5 U.S.C. § 552(b)(7)(D), provides protection for records or information \ncompiled for law enforcement purposes that could reasonably be expected to disclose the identity of a \nconfidential source. \n",
"10-13 \nand helpful to the defense of an accused, or is essential to a fair \ndetermination of a cause, the privilege must give way. Id. The privilege \nmay expire when the need for secrecy ceases to exist, but this does not \nnecessarily mean when the identity of the informer has become known to \nthe party seeking disclosure. United States v. Tejeda, 974 F.2d 210, 217 \n(1st Cir. 1992); United States v. Tenorio-Angel, 756 F.2d 1505, 1509-11 \n(11th Cir. 1985); United States v. Aguirre, 716 F.2d 293, 300 (5th Cir. \n1983). \n4. Investigatory Files Privilege\nInvestigatory files compiled for law enforcement purposes are privileged. \nSee, e.g., Friedman v. Bache Halsey Stuart Shields, Inc., 738 F.2d 1336, \n1342-43 (D.C. Cir. 1984); United States ex rel. Burroughs v. DeNardi \nCorp., 167 F.R.D. 680, 687 (S.D. Cal. 1996). The privilege is rooted in the \nneed to minimize disclosure of documents whose revelation might impair \nthe necessary functioning of a department of the executive branch. “The \nargument . . . that law enforcement operations cannot be effective if \nconducted in full public view is analogous to that made on behalf of intra-\nagency deliberations.” Black v. Sheraton, 564 F.2d 531, 542 (D.C. Cir. \n1977). The privilege is necessary to protect the law enforcement process. \nDisclosure of investigatory files would undercut the government’s efforts to \nprosecute criminals by disclosing investigative techniques, forewarning \nsuspects of the investigation, deterring witnesses from coming forward, \nand prematurely revealing the facts of the government’s case. In addition, \ndisclosure could prejudice the rights of those under investigation. \nThe investigatory files privilege is qualified and thus may be overcome if a \nlitigant’s need is sufficiently justified. Friedman, 738 F.2d at 1342-43. In \nFriedman, the court of appeals quoted with approval Frankenhauser v. \nRizzo, 59 F.R.D. 339, 344 (E.D. Pa. 1973), as setting forth the factors to \nbe considered in weighing the litigant’s need: \n(1) the extent to which disclosure will thwart governmental \nprocesses by discouraging citizens from giving the government \ninformation; (2) the impact upon persons who have given \ninformation of having their identities disclosed; (3) the degree to \nwhich governmental self-evaluation and consequent program \nimprovement will be chilled by disclosure; (4) whether the \ninformation sought is factual data or evaluating summary; (5) \nwhether the party seeking discovery is an actual or potential \ndefendant in any criminal proceeding either pending or reasonably \nlikely to follow from the incident in question; (6) whether the police \ninvestigation has been completed; (7) whether any \nintradepartmental disciplinary proceedings have arisen or may arise \nfrom the investigation; (8) whether the plaintiff's suit is non-frivolous \n",
"10-14 \nand brought in good faith; (9) whether the information sought is \navailable through other discovery or from other sources; and (10) \nthe importance of the information sought to the plaintiff's case. \nFriedman, 738 F.2d at 1342-43 (quoting Frankenhauser, 59 F.R.D. at \n344). \nGenerally, once an investigation is closed the files are no longer \nprivileged. Jabara v. Kelley, 75 F.R.D. 475, 494 (E.D. Mich. 1977). If the \ninvestigation is not formally closed but there is no intention to use the \ninformation gathered for a criminal prosecution, then the court must \naddress whether the files are still privileged because “[a]fter the expiration \nof a reasonable period of time, the privilege is lost.” Id. The privilege can \nbe extended to cover related investigations. For example, if charges are \npending against additional defendants. Solar Servs., Inc. v. United \nStates,142 F.3d 1033, 1040 (7th Cir. 1998). The privilege may still apply if \nthe government is considering additional charges against the original \ndefendants. Seized Prop. Recovery Corp. v. Customs & Border Patrol,\n502 F. Supp. 2d 50, 62 (D.D.C. 2007). The privilege may still apply if \nrelease of the files would affect investigations by other agencies. Cudzich \nv. ICE, 886 F. Supp. 101, 106-07 (D.D.C. 1995). Of course, information \ncontained in the files that is covered by another privilege may still be \nwithheld. \n5. How to Claim Governmental Privileges \na. Who Must Claim Governmental Privileges? \nThe procedural requirements for proper assertion of governmental \nprivilege differ depending on the forum in which the discovery \narises. Where there are no established procedures in any given \nforum, or the procedures appear to be unclear, the IRS generally \nwill “informally” assert the privilege in response to a document \nproduction request through the Chief Counsel trial attorney (in the \nTax Court), or the DOJ trial counsel (in the federal district courts or \nthe Court of Federal Claims). Chief Counsel attorneys should \nconduct a review of the responsive records and make a \ndetermination whether one or more privileges should be claimed; a \nprivilege log reflecting such determination should be prepared and \nmade available to opposing counsel. \nIn the Court of Federal Claims, the issue of who must assert the \ndeliberative process privilege has been settled. In United States v. \nReynolds, 345 U.S. 1, 8 n.20 (1953), aff’d on other grounds, 426 \nU.S. 394 (1976), the Supreme Court held the executive privilege “is \nnot to be lightly invoked. There must be a formal claim of privilege, \n",
"10-15 \nlodged by the head of the department which has control over the \nmatter, after personal consideration by that officer.” \nBut the particular government privilege at issue in Reynolds was \nthe state secrets privilege, and not the deliberative process \nprivilege. Some courts have confined Reynolds to its facts, finding \nthat a less burdensome process may be invoked for assertions of \nthe deliberative process privilege. In Landry v. FDIC, 204 F.3d \n1125 (D.C. Cir. 2000), cert denied, 531 U.S. 924 (2000), the D.C. \nCircuit noted that, when asserting the deliberative process privilege, \nthe declaration could be provided by a senior level official other \nthan the agency head. Citing Landry, the Federal Circuit drew a \ndistinction between the state secrets privilege and the deliberative \nprocess privilege, accepting the privilege’s assertion by a senior \nlevel official who has expertise in privileges, who is not directly \nresponsible for or involved in the substantive tax litigation, and who \noperated under criteria established by the agency head. Marriott \nInt’l Resorts, L.P. v. United States, 437 F.3d 1302, 1306-09 (Fed. \nCir. 2006). \nAttorneys who are assigned cases that are in the Court of Federal \nClaims, and in other circuit or district courts that require this formal \n“agency head” process, should look to Delegation Order No. 30-4 \n(formerly D.O. 220), in which the Commissioner has delegated the \nauthority to claim executive privilege (except for the state secrets \nprivilege) to the Deputy Associate Chief Counsel (Procedure & \nAdministration) in preparing the necessary declaration. See IRM \n1.2.53.5. \nNot all circuits have spoken to the issue of who must assert the \ndeliberative process privilege. Litigation Guideline Memorandum \nTL-98 (Oct. 7, 1992), “In re: Guidelines and Procedures for \nAsserting the Deliberative Process Privilege in Federal Civil Tax \nLitigation,” 1992 WL 1355874, identifies the varying requirements in \nthe circuits for assertion of the deliberative process privilege. Chief \nCounsel attorneys whose cases raise this issue should research \ncarefully the requirements in their forums. Currently, only the Ninth \nCircuit appears to require the formal assertion by the agency head \nand, accordingly, Delegation Order No. 30-4 should be followed in \nthe Ninth Circuit. Kerr v. U.S. District Court for the Northern District \nof California, 511 F.2d 192 (9th Cir. 1975), aff’d on other grounds,\n426 U.S. 394 (1976). Conversely, the Fifth Circuit appears to \naccept assertion of the deliberative process privilege by an official \nlower than an executive to whom authority was specifically \ndelegated under established guidelines. In Branch v. Phillips \nPetroleum Co. v. EEOC, 638 F.2d 873 (5th Cir. 1981), the court \n",
"10-16 \nheld that the Reynolds requirements were met when the Director of \nthe EEOC’s regional office asserted the privilege. In courts within \nthe Fifth Circuit as well as any other district courts that follow the \nBranch approach, a declaration prepared for the signature of either \nChief of Branch 6 or 7 in Procedure & Administration should suffice. \nIn United States v. O’Neill, 619 F.2d 222 (3d Cir. 1980), the Third \nCircuit did not allow the deliberative process privilege to stand \nwhen it was orally invoked by the city’s trial counsel because there \nhad been no showing that the head of the city’s Police Department \nhad conducted the personal review of the documents that must \nprecede assertion of the privilege. But the court specifically did not \ndecide whether the privilege could ever be claimed by trial counsel. \nb. Timing of an Executive Privilege Declaration \nIn those circuits that require the “agency head” process, when \nexactly does that obligation arise? As noted above, our practice is \nto not file a declaration formally asserting the privilege until after \nopposing counsel files a motion to compel. The rationale is that it is \n“unduly burdensome and impractical – and contrary to the spirit of \ncooperative discovery – to require a formal assertion of the \nprivilege (with a supporting declaration or affidavit) in response to a \nmere discovery request, before issues of relevance and scope have \neven been discussed among the parties, much less resolved.” \nFidelity Int’l Currency Advisor A Fund, LLC v. United States, Nos. \n05-40151 and 06-40130, slip op. at 4 n.3 (D. Mass. May 4, 2007). \nSee also In re Sealed Case, 121 F.3d 729 (D.C. Cir. 1997) (the \nWhite House did not have an obligation to formally invoke its \nprivileges in advance of a motion to compel). \nThe issue of timeliness of the assertion of the privilege is related to \nthe argument that the privilege is waived. In other words, opposing \ncounsel will contend that the agency has effectively waived the \nexecutive privilege because it has failed to follow the procedural \nrules, even though no timing is specifically stated in the rules. \nIn Tuite v. Henry, 98 F.3d 1411, 1416 (D.C. Cir. 1996), the D.C. \nCircuit reasoned that: \nCommon sense and the purpose of the rule dictate that the \n“subject to” language of Rule 45(c)(2)(B) does not mandate \nthat the full description required by Rule 45(d)(2) be provided \nat the time the initial objection is asserted. Although Rule \n45(d)(2) does not contain a specific time limit within which \nobjecting parties must supply the requisite privilege log, the \nAdvisory Committee Notes indicate that the purpose of the \nRule “is to provide a party whose discovery is constrained by \n",
"10-17 \na claim of privilege . . . with information sufficient to evaluate \nsuch a claim and to resist if it seems unjustified.” FED. R.\nCIV. P. 45(d)(2) advisory committee’s note. Consistent with \nthis purpose, the responsibility rests with the district court to \nensure that the information required under the Rule is \nprovided to the requesting party within a reasonable time, \nsuch that the claiming party has adequate opportunity to \nevaluate fully the subpoenaed documents and the \nrequesting party has ample opportunity to contest that claim. \nDistrict courts must then take account of the information \nprovided under Rule 45(d)(2) in ruling on a motion to comply. \nMoreover, the D.C. Circuit has recognized that because the \n“executive privilege exists to aid the governmental decision-making \nprocess, a waiver should not be lightly inferred.” In re Sealed \nCase, 121 F.3d at 741 (quoting SCM Corp. v. United States, 82 \nCust. Ct. 351, 473 F. Supp. 791, 796 (1979)). \nWhen the party asserting the privilege informs the requester that it \nbelieves the withheld documents are privileged, the asserting party \nsatisfies Rule 45(c)(2)(B) and Rule 45(d)(2) of the Federal Rules of \nCivil Procedure, which together require that “a party objecting to a \nsubpoena on the basis of privilege must both (1) object to the \nsubpoena and (2) state the claim of privilege within [the stipulated \nperiod] of service.” 98 F.3d at 1417. See also In re Sealed Case,\n856 F.2d 268, 272 n. 3 (D.C. Cir. 1988) (where government’s claim \nof privilege is well taken, remedy for any undue delay is not waiver \nbut fees and sanctions under Rule 37). \nWhen trial counsel informs the requesting party that the agency is \nasserting a privilege, the requesting party generally is not \nprejudiced by any alleged delay in the agency formally invoking its \nprivileges. Id. at 741-42. \nIn Pac. Gas & Elec. v. United States, 70 Fed. Cl. 128 (2006) \n(PG&E I), the Court of Federal Claims ruled that affidavits executed \nby Department of Energy officials in response to plaintiff’s motion to \ncompel failed to follow the procedural requirements necessary to \ninvoke the deliberative process privilege, in part because it \nconcluded the affidavits executed after receipt of the motion were \nuntimely. After receiving the government’s motion for \nreconsideration, the court ordered the government to submit ex\nparte affidavits for review in camera. Following the in camera\nreview, in Pac. Gas & Elec. v. United States, 71 Fed. Cl. 205 (2006) \n(PG&E II), the court opined that the ex parte affidavits provided a \n“precise and certain” description of the particular harm that would \n",
"10-18 \nflow from release of the document and ordered the government to \nprovide the affidavits to plaintiff. Plaintiff was thereby given an \nopportunity to review the government’s assertions and, if still \nunsatisfied, could move to compel release if plaintiff could \ndemonstrate that its evidentiary need outweighed the harm from \ndisclosure. Id. at 210. \nTo date, no circuits have adopted the PG&E I case. Another judge \nin the same court held that affidavits executed after a privilege log \nhad been provided to the plaintiff, but before a motion to compel, \nwere still timely filed. Huntleigh USA Corp v. United States, 71 \nFed. Cl. 726 (2006), relying in part on In re Sealed Case, 121 F.3d \n729 (D.C. Cir. 1997). \nc. Preparation of a Declaration Claiming Executive Privilege \nSee CCDM 35.4.6. \nd. Claiming Executive Privilege in Depositions \nFederal courts generally have recognized that the deliberative \nprocess privilege applies to testimony as well as documents. See, \ne.g., North Pacifica, LLC v. City of Pacifica, 274 F. Supp. 2d 1118, \n1121 n.1 (N.D. Cal. 2003) (ruling on pre-trial motion to prevent \nwitness testimony about certain topics based on deliberative \nprocess privilege); Newport Pac., Inc., v. Cnty. of San Diego, 200 \nF.R.D. 628, 637-38 (S.D. Cal. 2001) (ruling on motion for protective \norder to prohibit certain deposition testimony on the basis of the \ndeliberative process privilege). \nNote that Rule 26(b)(5)(A), which relates to the assertion of \nprivileges in response to discovery requests, provides: “When a \nparty withholds information otherwise discoverable by claiming that \nthe information is privileged . . . .” Thus, nothing in the plain \nlanguage of the Rule distinguishes between testimony and \ndocumentary evidence. Rather, it refers to information.\nA question has arisen whether the government must follow the \nformal protocol established for asserting the deliberative process \nprivilege for documents when opposing a motion to compel a \nwitness’s deposition testimony. The following cases suggest that it \ndoes not. \nIn the absence of prior knowledge of the questions to be asked, the \nhead of an agency cannot know whether a particular question will \ncall for a privileged answer. Scott v. PPG Indus., Inc., 142 F.R.D. \n",
"10-19 \n291 (N.D. W. Va. 1992). In Scott, the government attorney \ninstructed a witness not to answer because the question called for a \nprivileged response. PPG argued in its motion that the privilege was \ninapplicable because it was improperly invoked. In support of its \nargument, PPG cited Resident Advisory Bd. v. Rizzo, 97 F.R.D. 749 \n(E.D. Pa. 1983), for the proposition that the deliberative process \nprivilege must be invoked by the agency head, and not by the \ngovernment’s litigation attorney. The court aptly recognized that the \nproblem with relying on Rizzo was that, like most of the cases \nanalyzing the deliberative process privilege, the Rizzo court ruled on \nthe release of documents, rather than testimony. In ruling for the \ngovernment, the court opined, “Even if the requirement that the \nagency head consider allegedly privileged material and personally \ninvoke the privilege makes sense with regard to documents, it is \nludicrous to suggest that the agency head rather than the litigation \nattorney should be required to invoke the deliberative process \nprivilege in a deposition.” 142 F.R.D. at 293-94. \nLikewise, in Startzell v. City of Philadelphia, No. 05-05287, 2006 \nWL 2945226, at *2 (E.D. Pa. Oct. 13, 2006), the plaintiffs claimed \nthat the deliberative process privilege only prevented the discovery \nof documents and was inapplicable to their motion to compel \ndeposition testimony. The court flatly rejected that contention, \n(citing NLRB v. Bldg. & Constr. Trade Council, No. 88-3495, 1989 \nU.S. App. LEXIS 9411, at *2 (3d Cir. Apr. 6, 1989) (applying the \ndeliberative process privilege in the deposition context)) and Cipolla \nv. Cnty. of Rensselaer, No. 99-CV-1813, 2001 U.S. Dist. LEXIS \n16150 (N.D.N.Y. Oct. 10, 2001) (applying the deliberative process \nto protect deposition transcripts detailing the thought process \nbehind the district attorney’s decision to prosecute). The court also \nrejected the plaintiffs’ assertion that the privilege must be raised in \nwriting. “It is sufficient for the attorney for the city to assert the \nprivilege at Ms. Marcus’ deposition and in the Respondent’s \nresponsive motion. The manner of asserting the privilege is not an \nissue here.” Id.\nIn Eugene Burger Mgmt. Corp. v. Dep’t of Hous. and Urban Dev.,\n192 F.R.D. 1 (D.D.C. 1999), the Assistant United States Attorney \nobjected to several questions on the basis of deliberative process. \nThe U.S. Magistrate Judge did not condemn the manner in which \nthe privilege was raised, but simply evaluated claims of privilege on \na question-by-question basis. The only question was whether the \nprivilege was appropriate based on the questions asked. See Id. \nat 8-11. \n",
"10-20 \nNote: When the government seeks to protect oral testimony \nduring the course of a deposition, the government attorney \nmust be prepared to invoke appropriate privileges at \nappropriate times. Almost all IRS testimony authorizations \nprohibit witnesses from testifying as to privileged material \nand direct the witness to follow the advice of government \ncounsel. Still, it is incumbent upon the government attorney \nto assert the privilege as well as instruct the witness not to \nanswer the question. See Treas. Reg. § 301.9000-1 et seq.\nand Chapter 12, below. \nThe court in Cobell v. Norton, 213 F.R.D. 1 (D.D.C. 2003), applied \na different approach for the application of privilege. The court cited \nto the Scott case when ruling on the plaintiffs’ motion to compel \ndeposition testimony over defense objections based on deliberative \nprocess when it recognized the impossibility of following the \nprocedural protocols to invoke the privilege during the course of \ndeposition testimony. Id. at 9. But rather than adopt Scott’s\nconclusion that it is sufficient for an agency attorney to invoke the \nprivilege during a deposition, the court adopted a procedure first \nsuggested in In re “Agent Orange” Product Liability Litigation, 97 \nF.R.D. 427 (E.D.N.Y. 1983). Accordingly, it ordered that, if the \ngovernment asserted the deliberative process privilege in response \nto a deposition question, then the plaintiff’s had “seven days to \nsubmit to the Special Master or Special Master-Monitor, as \nappropriate, a copy of the unanswered questions, together with a \ndetailed statement setting out the reasons why they require \nanswers to these questions, and provide a copy of the statement \nand unanswered questions to defendants.” Id. Then: \nSeven days after this submission, defendants will be \nrequired to submit to the Special Master or Special Master-\nMonitor an affidavit that meets the requirements for formal \ninvocation of the deliberative process privilege, and provide \na copy to plaintiffs. At the same time that they file this \naffidavit, defendants will be required to file under seal with \nthe Special Master or Special Master-Monitor a detailed \nsummary of the responses that the witness would have \nprovided if defendants had not asserted the deliberative \nprocess privilege. The Special Master or Special Master-\nMonitor will then make a decision or recommendation as to \nthe applicability of the privilege to the deposition testimony \nfor which it is being asserted. His decision or \nrecommendation will be subject to review by this Court as \nappropriate, upon objections made by either party. \n",
"10-21 \nId. at 9-10 (footnote omitted). The Cobell case, like Agent Orange,\nwas a long-pending, multi-party litigation involving highly complex \nsubject matter. Each case had sitting special masters to handle \nongoing discovery disputes. The process adopted by the judges in \neach case, certainly within their discretion, appears to have been \nadopted in efforts to instill some order over the subject matters at \nissue. Accordingly, this process insured that the parties on each \nside truly believed they needed answers to specific questions or \nneeded to protect information in response to specific questions \nbefore seeking further court intervention. \nIn McCormac v. Dep’t of the Treasury, 2007 WL 1412281 (D.N.J. \nMay 14, 2007), a case that arose in the context of a motion for \nprotective order seeking to limit the subjects about which the \nwitness would testify, the court found that “[t]here has been no \nshowing by Defendants that the testimony sought by Plaintiffs . . . is \npre-decisional or that the information is deliberative in nature \ncontaining opinions, recommendations, or advice about agency \npolicies.” Id. at *8 (internal quotations deleted). Thus, the \nMcCormac court was not convinced the subject matters proffered \nfor questioning called for answers covered by the privilege. \nIn Export-Import Bank of the U.S. v. Asia Pulp & Paper Co., Ltd.,\n232 F.R.D. 103 (S.D.N.Y. 2005), during the course of a deposition \nof a government witness, the Assistant United States Attorney \nraised objections to a number of questions on the basis of the \nattorney-client and deliberative process privileges. Ruling on Asia \nPulp’s motion to compel deposition testimony, the court held that \nthe government had a “good faith basis for its objections,” because \nthe testimony sought concerned documents the court had ruled \nirrelevant earlier in the opinion. Id. at 109, 111. In addition, Asia \nPulp requested that the court compel the State Department “to \nproduce a sworn statement by a senior official justifying its \ninvocation of the deliberative process privilege.” The court \nsummarily rejected the request, holding, “Documents disclosing the \ninternal deliberations and opinions of the State Department staff \nhave no more relevance to APP than deliberative documents \nprepared by Ex-Im's staff . . . .” Id. at 112. \nThe Court of Federal Claims granted a Tax Division motion for \nprotective order prohibiting deposition testimony of three individuals \ninvolved in drafting certain Treasury regulations. Evergreen \nTrading, LLC v. United States, 75 Fed. Cl. 730 (Fed. Cl. 2007), \n(citing Bankers Trust N.Y. Corp. v. United States, 225 F.3d 1368 \n(Fed. Cir. 2000)). The court ruled that the personal views and \nintentions of the drafters were irrelevant to the plaintiffs’ challenge \n",
"10-22 \nto the validity of those regulations. Id. at 730-31. To the extent \nplaintiffs seek a witness’s personal opinions or recommendations \nabout the subject matter at issue, the government should make the \nargument that such views are similarly irrelevant, and thus the \nmanner in which the privilege is invoked should not matter. Id.\n",
" \n11-1\nCHAPTER 11 \nPART I: PERSONNEL AND CLAIMANT REPRESENTATIVE MATTERS \nI.R.C. § 6103(l)(4) \nI. INTRODUCTION \nSection 6103(l)(4) controls access to returns and return information for personnel and \nclaimant representative (i.e., practitioner) related matters. Section 6103(l)(4)(A) \nprovides standards under which employees or former employees of the Treasury \nDepartment and practitioners under Circular 230, or their representatives, may access \nreturns and return information in those matters, and section 6103(l)(4)(B) outlines \nstandards under which Treasury Department employees may access returns and return \ninformation to represent the agency in these matters. Section 6103(l)(4) is the exclusive \nauthority for disclosing returns and return information in these contexts. NTEU v. FLRA,\n791 F.2d 183, 187 (D.C. Cir. 1986). \nPersonnel matters include disciplinary and adverse actions, other personnel decisions \nand litigation proceedings arising out of or flowing from personnel actions or decisions \n(e.g., Equal Employment Opportunity discrimination matters, Merit Systems Protection \nBoard matters, Merit Systems Review Board proceedings, and unfair labor practice \nallegations under 5 U.S.C. § 7116(a)(1)). Matters arising under section 330 of Title 31 \n(Circular 230) involve the rights of persons (e.g., registered tax return preparers, \nenrolled agents, enrolled actuaries, enrolled retirement plan agents, attorneys, or \naccountants) who practice before the IRS in representing and assisting taxpayers. \nThey are referred to generally as \"claimant representative matters.\" See 31 U.S.C. \n§ 330.\nII. ACCESS BY EMPLOYEES, FORMER EMPLOYEES, PRACTITIONERS, AND \nAUTHORIZED LEGAL REPRESENTATIVES\nSection 6103(l)(4)(A) authorizes the disclosure of returns and return information: \nA. to the subject of a personnel related action or proceeding, to any person \nwhose rights are or may be affected by an administrative action or proceeding \nunder 31 U.S.C. § 330, or to their authorized legal representatives; \nB. upon written request; \nC. if the appropriate agency delegate determines that disclosure may be \nrelevant and material to the matter at issue. Within the Office of Chief \nCounsel, Delegation Order 11-2 delegates this authority to, inter alia, the \nAssociate Chief and Division Counsels and permits redelegation to \nsupervisors and Chief Counsel attorneys directly involved in the matter. \nI.R.S. Deleg. Order 11-2, IRM 1.2.49.3. \n",
" \n11-2\nAny returns and return information disclosed under this section carries with it a \nrestriction limiting use to the particular action or proceeding for which an individual \nrequests and receives access. In addition, disclosures of returns and return information \npursuant to section 6103(l)(4)(A) must be accounted for in accordance with section \n6103(p)(3). IRM 11.3.20.9.1(8). \n“Authorized legal representative” refers to any person designated by an employee or \npractitioner, for whom access to returns and return information is requested and \napproved; such persons must sign a letter, among other things, to acknowledge his or \nher awareness of the disclosure ramifications and penalties associated with accessing \nconfidential returns and return information. IRM 11.3.20.9.1(2). In a personnel matter \nwhere the NTEU represents an employee or former employee, an NTEU representative \n(including an NTEU attorney) cannot access returns and return information in \nconnection with the representation simply by virtue of NTEU’s status as the exclusive \nbargaining representative by dint of a negotiated agreement. The employee must \ndesignate, in writing, the NTEU representative as that person’s representative before he \nor she may make a written request for access to returns and return information on \nbehalf of the employee. Simply entering an appearance as the authorized \nrepresentative of the subject of a proceeding, without a specific written request by the \nrepresentative for access to returns and return information in connection with the \nproceeding, will not satisfy section 6103(l)(4)(A). NTEU's statutory right of access to \ninformation under 5 U.S.C. § 7114 does not supersede section 6103. See NTEU v. \nFLRA, 791 F.2d 183, 187 (D.C. Cir. 1986). Similarly, the union's right of access does \nnot automatically supersede the confidentiality of records provided by the Privacy Act. \n(See further discussion in Chapter 11, Part II, paragraph A, subparagraph 3.) \nIII. ACCESS BY DEPARTMENT OF TREASURY EMPLOYEES \nGeneral Legal Services attorneys and IRS labor relations specialists gain access to \nreturns and return information for use in personnel related matters under section \n6103(l)(4)(B). Unlike the \"relevancy and materiality\" predicate for access pursuant to \nsection 6103(l)(4)(A), the prerequisite to access and use under this section is necessity \n\"to advance or protect the interests of the United States.\" There is no written request \nrequirement and no accounting for disclosure is required. \nIV. MISCELLANEOUS \nA. The \"for use\" language in both subsections of section 6103(l)(4) \ncontemplates redisclosures by the authorized recipients consistent with the \npurpose for which the returns and return information were disclosed, e.g., to \nan administrative law judge, to a court, to an arbitrator, to Department of \nJustice attorneys to the extent they serve as the IRS's attorneys in a judicial \npersonnel proceeding, and to witnesses in the context of testimony \npreparation and in the proceeding. \nIn addition, Department of Treasury employees are authorized to disclose \nreturns and return information for the purpose of obtaining, verifying, or \n",
" \n11-3\nestablishing other information that is or may be relevant and material to \ninvestigations of personnel or claimant matters. See Treas. Reg. \n§ 301.6103(k)(6)-1(b). \nB. Although section 6103(l)(4) permits disclosure of returns and return \ninformation under the circumstances set forth in the provision, it is the \nService’s additional practice to sanitize records containing third party returns \nand return information by redacting identifying information before providing \nthem, together with a coded key, to subjects and their legal representatives, \nthereby affording those taxpayers greater privacy protection. See, e.g., IRM \n11.3.20.9.1(5)b. \nC. IRS employees, including NTEU officials, subpoenaed by claimants to testify \nin personnel actions or proceedings, e.g., at Federal Labor Relations \nAuthority hearings, are required to secure an authorization to testify pursuant \nto Treas. Reg. § 301.9000-3. See generally Chapter 12. \nV. REPORTING POSSIBLE ETHICAL VIOLATIONS \nSometimes during the course of a taxpayer’s dealings with the Service, an IRS \nemployee comes upon information he or she believes demonstrates possible \nprofessional misconduct on the part of an attorney representing the taxpayer. A \nquestion arises as to whether the employee may report the representative and the facts \nand circumstances underlying the possible professional misconduct to the appropriate \nauthorities. Any information learned in these situations is the taxpayer’s return \ninformation and appropriate disclosure authority must be found in section 6103. \nDisclosure of information other than returns or return information is governed solely by \nthe Privacy Act. \nCCDM 31.4.1.4(5) advises Chief Counsel employees that issues involving sanctions or \nethics must be formally coordinated with the Office of Chief Counsel, Procedure & \nAdministration. The Associate Chief Counsel (Procedure & Administration) is the \nsanctions officer for tax litigation matters; sanctions officer approval of such matters is \nrequired by the Executive Order on Civil Justice Reform. \nA. Office of Professional Responsibility\nAfter coordinating with and obtaining the approval of the Associate Chief Counsel \n(Procedure & Administration), a Chief Counsel employee may disclose to the IRS Office \nof Professional Responsibility information evidencing possible misconduct on the part of \na practitioner subject to Circular 230 representing a taxpayer, including the return \ninformation of that taxpayer, pursuant to section 6103(h)(1) and 5 U.S.C. § 552a(b)(1) \n(\"need to know\" in the course of tax administration duties). Kenny v. U.S., No. 10–\n4432, 2012 WL 2945683, (3rd. Cir. 2012) (OPR personnel have access to returns and \nreturn information under 6103(h)(1) and (l)(4) as part of tax administration duties \n",
" \n11-4\npertaining to a proceeding under 31 USC 330. Please consult Procedure and \nAdministration, Branches 1 and 2, as needed, for guidance. Other IRS employees may \nmake a direct referral to the Office of Professional Responsibility, after obtaining their \nmanager’s approval, by submitting a Form 8484. \nB. U.S. Tax Court\nIn the context of a Tax Court proceeding, Tax Court Rule 202 authorizes the \ncourt to perform bar disciplinary functions. Therefore, the IRS should report \npotential ethical violations directly to the Tax Court. However, before the IRS \nreports ethical violations to the Tax Court pursuant to section 6103(h)(4)(A), the \nmatter must be referred to the Counsel Sanctions Officer. See CCDM \n35.10.2.2.3(3). The disciplinary process, as it relates to an attorney's possible \nmisconduct before the court, constitutes tax administration as defined in section \n6103(b)(4). To the extent returns or return information are involved, they may be \ndisclosed pursuant to section 6103(h)(4)(A). Cf. McLarty v. United States, 741 F. \nSupp. 751, 755 (D. Minn. 1990) (stating that disclosure to DOJ and court of pro \nhac vice applicant’s 1982-85 federal tax returns and return information is not \nauthorized by section 6103(h)(4) because \"under no circumstances could a pro \nhac vice hearing be deemed a matter of tax administration\" pertaining to the \napplicant). \nC. State Bar\nThere is no authority for disclosure of returns and return information to state bar \nauthorities, absent consent from the taxpayer(s) involved. Information developed \nduring a Treasury Inspector General for Tax Administration (TIGTA) investigation \ninto the propriety of attorneys' conduct may constitute the returns and return \ninformation of the taxpayers represented by the attorneys and/or the attorneys \nthemselves. For example, information gathered by TIGTA with regard to the \npossible violation of section 7212 (interference with the administration of the \ninternal revenue laws) is the target’s return information because section 7212 is \npart of Title 26. O'Connor v. United States, 698 F. Supp. 204, 206 (D. Nev. \n1988), aff'd, 935 F.2d 275 (9th Cir. 1991) (Freedom of Information Act case). \nInformation pertaining to potential violations of section 7213 (unauthorized \ndisclosure of returns and return information) and 7214 (employee misconduct) is \nalso deemed the target’s return information. See generally Conn v. United \nStates, No. C-91-20192JW (PVT),1991 WL 333707, at *1 (N.D. Cal. Dec. 10, \n1991) (motion to quash subpoena served on revenue agent). \n",
"11-5 \nPART II: PRIVACY ACT \nI. INTRODUCTION \nThe purpose of the Privacy Act of 1974, 5 U.S.C. ' 552a, is to balance the \ngovernment’s need to maintain information about individuals with the rights of those \nindividuals to be protected against unwarranted invasions of their privacy stemming \nfrom the collection, maintenance, use, and disclosure of their personal information. Its \nprovisions seek to accomplish four basic policy objectives: \nA. Restrict disclosure of personally identifiable records maintained by federal \nagencies; \nB. Grant individuals the right of access to records about themselves maintained \nby federal agencies; \nC. Grant individuals the right to seek amendment of records about themselves \nmaintained by federal agencies if the individuals show the records are not \naccurate, timely, relevant, or complete; and \nD. Establish a code of fair information practices that requires federal agencies to \ncomply with statutory standards for collection, maintenance, and \ndissemination of records. \nThe Act's roots are founded in the aftermath of Watergate, the tremendous growth in \ninformation technology, and a concomitant increase in the nature and amount of \ninformation collected by federal agencies. But even Congress recognized that tax \nrecords have a special sensitivity that needed to be addressed. That came two years \nlater with the overhaul of section 6103 by the Tax Reform Act of 1976. Pub. L. No. 94-\n455, 90 Stat. 1520 (1976) (Tax Reform Act codified at scattered sections of 7, 26, and \n46 U.S.C.). \nThe Office of Management and Budget (OMB) has statutory authority for promulgating \nagency-wide guidance under the Privacy Act. 5 U.S.C. § 552a(v). The latest \ncomprehensive guidance from OMB is Circular No. A-130, Transmittal Memorandum \nNo. 4 (Nov. 28, 2000). Appendix I to Circular A-108 continues in effect the guidance \nOMB initially issued to interpret the Privacy Act at 40 Fed. Reg. 28,948-78 \n(July 9, 1975), and Final Guidance for Interpreting the Provisions of Public Law 100-\n503, the Computer Matching and Privacy Protection Act of 1988, at 54 Fed. Reg. \n25,818-29 (June 19, 1989). \n",
"11-6 \nII. DEFINITIONS\nThe Privacy Act applies only to \"records\" about \"individuals\" that are \"maintained\" by \nfederal “agencies” in \"systems of records.\" \nA. An \"individual\" is a citizen of the United States or an alien lawfully admitted \nfor permanent residence. 5 U.S.C. § 552a(a)(2). It does not include \ncorporations. St. Michael’s Convalescent Hosp. v. California, 643 F.2d 1369, \n1373 (9th Cir. 1981). Deceased individuals have no Privacy Act rights, nor do \nexecutors or next-of-kin on behalf of the estate. OMB Guidelines, 40 Fed. \nReg. 28,949, 28,951 (July 9, 1975); Crumpton v. United States, 843 F. Supp. \n751, 756 (D.D.C. 1994), aff’d on other grounds sub nom. Crumpton v. Stone,\n59 F.3d 1400 (D.C. Cir. 1995). For more on privacy issues surrounding \ndecedents, see generally FOIA exemption 6 in Chapter 9. Privacy Act rights \nare personal to the individual and they cannot be asserted derivatively by \nothers. See, e.g., Parks v. IRS, 618 F.2d 677, 684-85 (10th Cir. 1980) (union \nlacks standing to sue for damages to its members); Sirmans v. Caldera, 27 F. \nSupp. 2d 248, 250 (D.D.C. 1998) (plaintiffs “may not object to the Army’s \nfailure to correct the records of other officers”). But see National Fed’n of \nFed. Emps. v. Greenberg, 789 F. Supp. 430, 433 (D.D.C. 1992) (union had \nstanding because members whose interests union sought to represent would \nhave standing if they sued individually), vacated & remanded on other \ngrounds, 983 F.2d 286 (D.C. Cir. 1993). Note, however, that the Act \nspecifically provides that parents of a minor or the legal guardians of an \nincompetent individual may act on their behalf. 5 U.S.C. § 552a(h).\nOMB takes the position that the term \"individual\" does not include individuals \nacting in an entrepreneurial capacity. 40 Fed. Reg. at 28,951. The courts, \nhowever, have split on this issue. Compare Shermco Indus., Inc. v. United \nStates Air Force, 452 F. Supp. 306, 314-15 (N.D. Tex. 1978) (agreeing with \nOMB), rev'd & remanded on other grounds, 613 F.2d 1314 (5th Cir. 1980), \nwith Henke v. Dep’t of Commerce, Civ. No. 94-189 TAF, 1995 WL 904918, at \n*2 (D.D.C. May 26, 1995) (rejecting OMB rationale), vacated & remanded on \nother grounds, 83 F.3d 1453 (D.C. Cir. 1996). To provide maximum \nprotection to individuals, the IRS has determined that it will not rely upon the \nentrepreneurial distinction. \nB. \"Maintain\" includes not only retention, but also the collection, use, and \ndissemination of a record. 5 U.S.C. § 552a(a)(3). \nC. A \"record\" is any item or collection of information about an individual that is \nmaintained by an agency and contains that individual's name or other \nidentifying particular (e.g., social security number). 5 U.S.C. § 552a(a)(4). \nRecords need not be limited to paper. Voiceprints, fingerprints, photographs, \nand videotapes are records. Id.\n",
"11-7 \nD. A \"system of records\" is a group of records under the control of an agency \nfrom which information is retrieved by the name of the individual or by some \nother identifying particular assigned to the individual. 5 U.S.C. § 552a(a)(5). \nAccording to the Department of Justice, this technical definition of system of \nrecords is “perhaps the single most important Privacy Act concept, because \n[with certain exceptions] it makes coverage under the Act dependent upon the \nmethod of retrieval of a record rather than its substantive content.” U.S. Dep’t \nof Justice, Overview of the Privacy Act of 1974, Chapter 7, Section 5 \ncomment, paragraph 6, \nhttp://www.justice.gov/opcl/1974definitions.htm#system (Dec. 2010). The \nfocus is on the actual practice of the agency, not on the capacity or capability \nof a computer program. Henke v. Dep’t of Commerce, 83 F.3d 1453, at 1456 \nn.1. See also, York v. McHugh, ___ F. Supp. 2d ___, 2012 WL 1014503, \n(D.D.C. 2012) (an employee's medical information included in a shared drive \naccessible by other employees in the unit were not records in a system of \nrecords because the agency did not in practice retrieve the records by \nreference to individual identifiers); Paige v. DEA, 665 F.3d 1355, 1360-61 \n(D.C. Cir. 2012) (video of agent's accidental discharge of weapon appeared \non the internet. Citing Henke, 83 F.3d at 1460, court found video was not in a \nsystem of records, nor retrieved by individual identifier, at time of release so \nno Privacy Act violation occurred). \nAn IRS database containing an abstraction of information from two existing \nPrivacy Act systems of records did not create a new, illegal system of records \nbecause it could be “accessed only by the same users, and only for the same \npurposes,” as those published in the Federal Register for the original systems \nof records. Pippinger v. Rubin, 129 F.3d 519, 526 (10th Cir. 1997). \nInformation obtained by an IRS public affairs officer attending an open court \nproceeding is not retrieved from a system of records; thus, issuing a press \nrelease based upon that information does not violate the Privacy Act. Rice v. \nUnited States, 166 F.3d 1088, 1092 n.4 (10th Cir.), cert. denied, 528 U.S. 993 \n(1999). \nIn addition to IRS systems of records, there are Department-wide systems of \nrecords administered by the Department of the Treasury and government-\nwide systems of records administered by the Office of Personnel \nManagement, Office of Government Ethics, Equal Employment Opportunity \nCommission, Merit Systems Protection Board, Department of Labor, General \nServices Administration, and Federal Retirement Thrift Investment Board. \nThe most recent IRS and government-wide systems of records notices can be \nfound at the websites noted at the end of this chapter. \nNote: Where information about individual \"A\" is in a record pertaining to \nindividual “B” that is retrieved from a system of records by B’s name or \nindividual identifier, B is entitled to access to the entire record, including \nthe information about A, unless a statutory exemption applies. Voelker v. \n",
"11-8 \nIRS, 646 F.2d 332, 334 (8th Cir. 1981) (\"a federal agency does not have \ndiscretion to withhold information contained in a requesting individual's \nrecord on the ground that the information does not pertain to that \nindividual\"), rev’g 489 F. Supp. 40 (E.D. Mo. 1980); Topuridze v. United \nStates Info. Agency, 772 F. Supp. 662, 665-66 (D.D.C. 1991) (same). But\nsee DePlanche v. Califano, 549 F. Supp. 685, 696-99 (W.D. Mich. 1982) \n(requester was denied access to information about his estranged children \nlocated in a file retrieved by his social security number because the record \nrequested was not \"about him\" or \"pertaining to him\"); Nolan v. Dep’t of \nJustice, No. 89-A-2035, 1991 WL 36547, at *10 (D. Colo. 1991) \n(government was correct in determining that names of FBI agents and \nsupport staff fell outside scope of the Privacy Act because identities of FBI \nagents and personnel do not constitute a record about plaintiff). Note that \nindividual A is not entitled to Privacy Act access to any of the records \nretrieved by the name of individual B (unless B consents to the disclosure) \neven though A is mentioned in the record. Sussman v. United States \nMarshals Serv., 494 F.3d 1106, 1121 (D.C. Cir. 2007) (parties have \n“access only to their own records, not to all information pertaining to them \nthat happens to be contained in a system of records. For an assemblage \nof data to qualify as one of [plaintiff’s] records, it must not only contain his \nname or other identifying particulars but also be “about” him. That is, it \nmust actually describe him in some way.”) (internal quotations omitted); \nAguirre v. S.E.C., 671 F. Supp. 2d 113, 121 (D.D.C. 2009) (same). \nE. \"Routine use\" is the disclosure of a record outside the agency that maintains \nthe record for a purpose that is compatible with the purpose for which it was \ncollected. 5 U.S.C. § 552a(a)(7). Routine uses must be published in the \nFederal Register as part of the system of records notice. A published routine \nuse authorizes disclosure of the information, but does not require it. \nF. \"Disclosure\" is not defined in the statute. See Pilon v. Dep’t of Justice, 73 \nF.3d 1111, 1117-26 (D.D.C 1996) (thorough discussion of the definition of \n“disclose”). Courts have interpreted the term to mean \"the imparting of \ninformation which in itself has meaning and which was previously unknown to \nthe person to whom it is imparted.\" Sullivan v. United States Postal Serv.,\n944 F. Supp. 191, 196 (W.D.N.Y. 1996); King v. Califano, 471 F. Supp. 180, \n181 (D.D.C. 1979); Harper v. United States, 423 F. Supp. 192, 197 (D.S.C. \n1976). Disclosure includes any means of communication – oral, written, \nelectronic, or mechanical. \nG. All federal agencies are covered by the Privacy Act. Federal courts, \nCongress, and the Government Accountability Office are not. Likewise, state \nand local agencies, with one exception discussed below, are not covered.\nPrivate organizations are not covered, but if a private organization enters into \na contract with a federal agency to operate a system of records, the \norganization is covered by the Act regarding the operation of the system. \n",
"11-9 \nIII. PRIVACY ACT PROVISIONS \nA. No Disclosure Without Authority \nThe Privacy Act establishes the general rule that no record maintained in a \nsystem of records may be disclosed without the written consent of the individual \nto whom the record pertains. 5 U.S.C. § 552a(b). Nevertheless, there are twelve \nstatutory exceptions. Some of the more significant are disclosures: \n1. To employees of the agency that maintains the record who have a \nneed for the record in the performance of their official duties. 5 U.S.C. \n§ 552a(b)(1). For IRS purposes, \"agency\" includes the Department of \nTreasury and all of its constituent bureaus. For a discussion of \"need-\nto-know,\" see Pippinger v. Rubin, 129 F.3d 519, 529-30 (10th Cir. \n1997). See also Doe v. Dep’t of Justice, 660 F. Supp. 2d 31, 47-49 \n(D.D.C. 2009) (disclosure to senior supervisors and to security \npersonnel of basis for revoking employee’s security clearance is \nauthorized). \n2. Required by the Freedom of Information Act (FOIA). 5 U.S.C. \n§ 552a(b)(2). An actual FOIA request must be received by the agency \nbefore an assertion can be made that the FOIA requires disclosure; \nwithout a request, FOIA disclosure requirements are not invoked. \nBartel v. FAA, 725 F.2d 1403, 1411-13 (D.C. Cir. 1984), reh'g en banc \ndenied, No. 82-2473 (D.C. Cir. Mar. 23, 1984), on remand, 617 F. \nSupp. 190 (D.D.C. 1985). See also 5 U.S.C. § 552a(t). \n3. For a routine use. 5 U.S.C. § 552a(b)(3). Routine uses for each \nsystem of records are published in the Federal Register. For all \nsystems of records containing tax returns or return information, section \n6103 is the authorizing routine use. \na. The Privacy Act defines a routine use as \"the use of [a] record \nfor a purpose which is compatible with the purpose for which it is \ncollected.\" 5 U.S.C. § 552a(a)(7). By its terms, the Act sets \nforth two requirements for a proper routine use disclosure: (1) \nFederal Register publication, thereby providing constructive \nnotice to the public; and (2) compatibility. See, e.g., Britt v. \nNaval Investigative Serv., 886 F.2d 544, 547-50 (3d Cir. 1989). \nIn Covert v. Harrington, 876 F.2d 751, 754-56 (9th Cir. 1989), \naff’g 667 F. Supp. 730 (E.D. Wash. 1987), the court added a \nthird requirement: actual notice to the individual of the routine \nuse at the time information was collected from the individual, \npursuant to 5 U.S.C. § 552a(e)(3)(C). Accord United States \nPostal Serv. v. Nat’l Ass’n of Letter Carriers, 9 F.3d 138, 146 \n",
"11-10\n(D.C. Cir. 1993) (“[a]lthough the statute itself does not provide, \nin so many terms, that an agency’s failure to provide employees \nwith actual notice of its routine uses would prevent a disclosure \nfrom qualifying as a ‘routine use,’ that conclusion seems implicit \nin the structure and purpose of the Act”). See also Stafford v. \nSSA, 437 F. Supp. 2d 1113, 1118-22 (N.D. Cal. 2006); Doe v. \nDep’t of Justice, 660 F. Supp. 2d 31, 47-49 (D.D.C. 2009). The \nPrivacy Act Notice on various tax and personnel forms or their \ninstructions provides such actual notice. \nb. Compatibility encompasses (1) functionally equivalent uses, and \n(2) other uses that are necessary and proper. OMB Guidelines, \n51 Fed. Reg. 18,982, 18,985 (May 23, 1986). In NLRB v. \nUSPS, 660 F.3d 65, 71 (1st Cir. 2011) the union representing \npostal workers sought psychological test records used as part of \nthe application and eligibility determination for a specific job. A \nUSPS routine use authorized disclosure of personnel records to \nthe union \"[a]s required by applicable law ... when needed by \nthat organization to perform its duties as the collective \nbargaining representative of [the USPS] employees in an \nappropriate bargaining unit.\" Relying on the holding in Detroit \nEdison Co. v. NLRB, 440 U.S. 301 (1979), that the NLRA does \nnot require unconditional disclosure of psychological aptitude \ntest scores, USPS asserted that it did not have authority to \nprovide the test scores and required the union to provide \ndisclosure consent from each employee. The union filed an \nunfair labor practice complaint. NLRB held for the union, and \npetitioned the First circuit for enforcement of its ruling. The \nCircuit denied the NLRB's enforcement petition, noted that the \nduty of an employer to provide information relevant to the \nunion's duties, and the manner of such disclosure, turns on the \ncircumstances of the particular case, and remanded with an \norder requiring NLRB to conduct a balancing between the \nunion's right of access and the individual employees' right of \nprivacy in their psychological test results. \nc. Courts have, on occasion, refused to recognize broad \ncategorical routine uses. The court in Krohn v. Dep’t of Justice,\nNo. 78-1536 (D.D.C. Mar. 19, 1984), vacated in part on other \ngrounds (D.D.C. Nov. 29, 1984), invalidated a routine use \npermitting \"dissemination of records during appropriate legal \nproceedings.\" The court concluded that the routine use was \noverly broad and could encompass any disclosure in a judicial \ncontext. In response to Krohn, OPM suggested a routine use \nintended to ensure that the government meets the compatibility \nstandard. The three components of the routine use are: (1) that \n",
"11-11\nthe agency is a party in interest (not a disinterested third party); \n(2) the records are relevant and necessary to the litigation; and \n(3) not otherwise privileged. If the requirements of the OPM \nroutine use above are not met, discovery should be opposed. \nThe IRS systems of records notices include this routine use as \nappropriate. See also paragraph 6 below pertaining to \ndisclosures pursuant to a court order. \nd. In the IRS context, the court in Pippinger v. Rubin, 129 F.3d at \n532, found that disclosure of disciplinary records in an MSPB \nproceeding was authorized by a routine use even though \ndocuments were culled from two separate systems of records \nand maintained in a new database. The court held that the \ndatabase did not constitute a new system of records and that \nroutine uses applicable to each of the two source systems of \nrecords authorized the disclosures because they were \ncompatible with the purpose for which the records were created. \n4. To domestic federal and local law enforcement agencies upon the \nwritten request of the head of the agency. 5 U.S.C. § 552a(b)(7). \nAlthough a limited delegation to a supervisory position is permissible, \nthe request cannot be made at the working level. Law enforcement \nmay be civil, criminal, or administrative. Requests must identify the \nsubject individual(s) and the information sought. “Fishing expeditions” \nfor individuals meeting stated criteria are not permitted. See OMB \nGuidelines, 40 Fed. Reg. 28,494, 28,955 (July 9, 1975). \n5. To Congress, its committees, joint committees, and subcommittees, \nand its investigative arm, the Government Accountability Office. 5 \nU.S.C. § 552a(b)(9) and (10). The exception does not extend to \nindividual legislators, whether acting on their own behalf or on behalf of \na constituent. Responses to inquiries on behalf of constituents, \nhowever, can be furnished with the constituent’s consent. See \ngenerally Chapter 2, Part III. \n6. Pursuant to a federal, state or local court order. 5 U.S.C. \n§ 552a(b)(11). This only applies to judicial proceedings, not \nadministrative tribunals (i.e., orders of ALJs and MSPB do not qualify). \nSummonses and subpoenas are not orders under this provision, unless \nthey are actually signed by a judge or magistrate. Distinguishing \nbetween court orders and subpoenas, the court in Doe v. DiGenova,\n779 F.2d 74, 84-85 (D.C. Cir. 1985), held that the court order exception \nto the nondisclosure rule did not apply to routine subpoenas \nunendorsed by a court order. The same court later held that the \nVeterans Administration could not rely upon a routine use that \npermitted disclosures to comply with grand jury subpoenas because \n",
"11-12\nthat use, standing alone, was incompatible with the purposes for which \nthe information had been collected. Doe v. Stephens, 851 F.2d 1457, \n1466-67 (D.C. Cir. 1988). Compare with routine use for judicial \npurpose, above. \nNote: Returns or return information cannot be disclosed pursuant \nto a court order except to the extent such disclosure is authorized \nby Title 26 or under the Constitution (e.g., a “Brady order”). No \nprovision of Title 26 authorizes disclosure in response to a \nsubpoena. Thus, returns and return information of individuals \n(which are also Privacy Act covered) cannot be disclosed pursuant \nto a court order under this provision unless such disclosure is \nauthorized in Title 26. \nB. Accounting for Disclosures\nEach federal agency must keep an accounting of disclosures so that an \nindividual can be informed about disclosures made, trace information to be \ncorrected, and ensure compliance with the Privacy Act. 5 U.S.C. ' 552a(c). This \nrequirement is not absolute. Accountings need not be made for intra-agency \ndisclosures, FOIA-required disclosures, and when certain Privacy Act \nexemptions are invoked in systems of records notices to shield “accounting of \ndisclosures” records from production to the subject thereof pursuant to \nsubsection (c)(3). See 5 U.S.C. § 552a(j) and (k). Moreover, Code section \n6103(p)(3)(A) exempts from accounting requirements certain disclosure of tax \nreturn information. \nC. Access and Amendment\nGenerally, individuals have the right to seek access to records about themselves \ncontained in a system of records. 5 U.S.C. § 552a(d)(1). They may also request \namendment of a record about themselves they believe is not accurate, relevant, \ntimely, or complete. 5 U.S.C. § 552a(d)(2). Agencies are required to promulgate \nrules to carry out the access and amendment provisions of the Act. \n5 U.S.C. § 552a(f). The IRS access and amendment rules are covered by the \nDepartment of Treasury Privacy Act regulations found at 31 C.F.R. §§ 1.20 – \n1.36 and App. B. \nIndividual rights of access to, and amendment of, certain IRS records contained \nin systems of records are either limited or completely exempted by statute, \nregulation, or published systems notices. For example, section 6103 supersedes \nthe general access provisions of the Privacy Act if the records sought consist of \nreturns or return information. Lake v. Rubin, 162 F.3d 113, 115-16 (D.C. Cir. \n1998), cert. denied, 526 U.S. 1070 (1999). Thus, the access provisions of the \nPrivacy Act apply only to nontax records maintained in systems of records by the \n",
"11-13\nIRS. In addition, Treasury regulations list all the IRS systems of records that it \nhas exempted from various provisions of the Privacy Act. See 31 C.F.R. § 1.36. \nLikewise, records pertaining to the determination, collection, and payment of \nfederal taxes are not subject to amendment under the Act. I.R.C. § 7852(e); 31 \nC.F.R. § 1.27(f)(4). See also Gardner v. United States, 213 F.3d 735, 741 n.5 \n(D.C. Cir. 2000), cert. denied, 531 U.S. 1153 (2001); Weiss v. Sawyer, 28 F. \nSupp. 2d 1221, 1228 (W.D. Okla. 1997); O’Connor v. United States, 669 F. \nSupp. 317, 323 (D. Nev. 1987), aff’d, 935 F.2d 275 (9th Cir. 1991), cert. denied,\n502 U.S. 1104 (1992); Schlabach v. IRS, No. CV-09-298-FVS, 2010 WL \n3789074, at * 2, (E.D. Wash. 2010). Section 7852(e) also provides that the \nprovisions of subsection (g) of the Act do not apply to determinations of liability \nunder Title 26. Subsection (g) consists of all of the civil action provisions under \nthe Act. Most courts have observed that section 7852(e) deprives them of \njurisdiction to decide all Privacy Act issues relating to the determination of tax \nliability. See, e.g., McMillen v. Dep’t of Treasury, 960 F.2d 187, 188 (1st Cir. \n1991) (Act does not waive sovereign immunity \"directly or indirectly” if the lawsuit \nrelates to the determination of the existence or possible existence of liability (or \nthe amount thereof) of any person for any tax) (dicta); Mallas v. Kolak, 721 F. \nSupp. 748, 754 (M.D.N.C. 1989) (“section 7852(e) acts to supersede causes of \naction brought under section 552a(g) if the lawsuit relates directly or indirectly to \nthe determination of the existence or possible existence of an individual’s federal \ntax liability”), aff’d on other grounds, 54 F.3d 773 (4th Cir. 1995). More recently, \nhowever, the Circuit Court for the District of Columbia opined that section \n7852(e) prohibits civil litigation pertaining only to amendment of tax records and \nactions for damages – as opposed to actions for injunctive relief – for failure to \nprovide access to records covered by the Privacy Act. Lake v. Rubin, 162 F.3d \nat 115. The Lake court ultimately held, however, that the general access \nprovisions of the Privacy Act are superseded by section 6103, and that the \nplaintiff’s reliance upon the Privacy Act to compel disclosure of tax information \nwas misplaced. \nOne provision of the Privacy Act bars access to all “information compiled in \nreasonable anticipation of a civil action or proceeding.” 5 U.S.C. § 552a(d)(5). \nPrivacy Act subsection (d)(5) is sometimes overlooked because it is not located \nwith the other exemptions in sections (j) and (k). This provision reflects \nCongress’s intent to exclude civil litigation files from access under subsection \n(d)(1). See 120 Cong. Rec. 36,959-60 (1974), reprinted in Source Book at 936-\n38, available at http://www.loc.gov/rr/frd/Military_Law/pdf/LH_privacy_act-\n1974.pdf. This provision is designed to protect attorney work product, and \n(parallel to F.R.C. P. 26(b)(3)) the statutory language does not limit the \nexemption to the work product of lawyers and their staff. Hernandez v. \nAlexander, 671 F.2d 402, 408 (10th Cir. 1982); Varville v. Rubin, No. CIV 3: \n96CV00629 AVC, 1998 WL 681438, at *4 (D. Conn. Aug. 18, 1998); Smiertka v. \nUnited States, 447 F. Supp. 221, 227-28 (D.D.C. 1978). This provision does not \nrequire the head of the agency to publish a special notice of exemption to trigger \n",
"11-14\nits use. The exemption does not require that litigation ever actually occur, and \nthe exemption applies even after it becomes apparent that no litigation will ever \noccur. The determining factor as to the applicability of this exemption is whether \nat the time the record was created there was reasonable anticipation of a civil \naction or proceeding. \nBoth access and amendment rights are limited by other exemptions in the \nPrivacy Act. See 5 U.S.C. § 552a(j) and (k). Subsection (j) of the Privacy Act \npermits the head of an agency to exempt systems of records pertaining to \ncriminal investigation and enforcement from the access and amendment \nprovisions of the Act, so long as the records are maintained by a component of \nthe agency which “performs as its principal function any activity pertaining to the \nenforcement of criminal laws.” 5 U.S.C. § 552a(j)(2). Subsection (k) lists the \n“specific exemptions” that any agency, or component thereof, may utilize to bar \naccess to or amendment of records pertaining to, inter alia, national security, civil \nlaw enforcement investigations, and federal employment or contracting \nsuitability, eligibility or qualifications. 5 U.S.C. § 552a(k)(2). To be effective, \nexemptions declared by agency heads must be published in a system of records \nnotice along with a statement of the reasons the system is exempt from any \nprovision of the Privacy Act. The IRS publication of notices of exempt systems is \nin the Treasury Regulations at 31 C.F.R. § 1.36. \nNote that publication of exempt systems of records \"does not remove that entire \nfiling system from the requirements of the Act; rather . . . documents qualify for \nexemption only if they constitute law enforcement records within the meaning of \nthe statute.\" Doe v. FBI, 936 F.2d 1346, 1353 (D.C. Cir. 1991). Moreover, these \nexemptions travel with the records (any copies of a (j) or (k) exempt record are \nalso exempt) and remain applicable forever. Id. at 1356. This means that a \nrecord that is exempt in one system of records retains that exemption wherever \nthe record is found. See also 31 C.F.R. § 1.36(g). \nSection (t) of the Privacy Act provides that FOIA exemptions may not be invoked \nto deny access otherwise required by the Privacy Act, and that Privacy Act \nexemptions may not be invoked to deny disclosure otherwise required by the \nFOIA. In other words, information that an agency is required to disclose \npursuant to a FOIA request may not be withheld on the basis of a Privacy Act \nexemption. Where the agency has discretion under FOIA to withhold \ninformation, however, it is a violation of the Privacy Act to disclose that \ninformation if the Privacy Act requires it to be withheld. \nThe following decision template may be helpful in determining whether the IRS \nshould disclose information in response to an individual’s request for records \nabout himself (a “first party” request): \nIs the information exempt from disclosure pursuant to a Privacy Act \nexemption? \n",
"11-15\nNo. Disclose. \nYes. Is the information exempt from disclosure pursuant to a FOIA \nexemption? \nNo. Disclose and state in the response letter that, although \nexempt from disclosure under the Privacy Act, the disclosure \nis made pursuant to FOIA. \nYes. Withhold the information and cite both the Privacy Act \nand FOIA exemptions in the response letter. \nEven though the Privacy Act permits access to and amendment of nontax \nrecords, it may not be used to collaterally attack final agency decisions. The \nPrivacy Act was not \"intended to permit an individual collaterally to attack \ninformation in records pertaining to him which has already been the subject of or \nfor which adequate judicial review is available.\" OMB Guidelines, 40 Fed. Reg. \n28,949, 28,969 (July 9, 1975). See also, e.g., Reinbold v. Evers, 187 F.3d 348, \n360 (4th Cir. 1999) (“The Privacy Act does not permit an individual to force an \nagency to ‘rewrite history, changing the record in Orwellian fashion to pretend \nthat it reached some other conclusion.’ Further, the Privacy Act does not allow a \ncourt to alter records that accurately reflect an administrative decision, nor the \nopinions behind that administrative decision, no matter how contestable the \nconclusions may be.”) (internal citation and footnote omitted); Subh v. Dep’t of \nArmy, No. 1:10cv433 (LMB/TRG), 2010 WL 4961613, at *4 (E.D. Va. 2010) (“The \nPrivacy Act plainly does not exist to allow applicants to obtain such a ‘do-over’ of \ntheir security forms in the guise of an administrative ‘correction.’”); Pellerin v. \nVeterans Admin., 790 F.2d 1553, 1555 (11th Cir. 1986) (Veterans Administration \ndisability benefits determinations may not be collaterally challenged using the \nPrivacy Act); Houlihan v. Office of Pers. Mgmt., 909 F.2d 383, 385 (9th Cir. 1990) \n(plaintiff cannot bring an accuracy-related Privacy Act claim to challenge a \ndetermination made pursuant to the Civil Service Reform Act); Hobbs v. United \nStates, No. H-96-4260, 1999 WL 132432, at *8 (S.D. Tex. Jan. 22, 1999) \n(discharged IRS employee collaterally estopped from using Privacy Act \namendment claim to challenge agency personnel decision after MSPB decision), \naff’d on other grounds, 209 F.3d 408 (5th Cir. 2000); Lyon v. United States, 94 \nF.R.D. 69, 72 (W.D. Okla. 1982) (Federal Employees Compensation Act is \nexclusive method for determining federal employee on-the-job injury \ncompensation; cannot compel amendment of compensation determinations to a \ndifferent amount); Bashaw v. Dep’t of Treasury, 468 F. Supp. 1195, 1196 (E.D. \nWis. 1979) (Chief Counsel employee’s sex discrimination claim falls under Civil \nRights Act; may not seek amendment under Privacy Act of decision by agency to \ndeny claim). \n",
"11-16\nD. Relevance and Necessity \nAgencies may maintain only as much information about an individual as is \nrelevant and necessary to accomplish an agency purpose required under a \nstatute or executive order. 5 U.S.C. ' 552a(e)(1). Either the statute or the \nexecutive order must expressly authorize the maintenance of the records, or \nmaintenance of the records must be necessary to accomplish the purpose of the \nstatute or executive order. Civil and criminal investigatory records maintained in \nsystems of records may be exempted from this requirement pursuant to 5 U.S.C. \n' 552a(j) or (k) because it is not always possible for law enforcement agencies \n(or components) to determine the relevance and necessity of information at the \nmoment it is collected. \nE. Collecting Information Directly from Individual \nEach agency that maintains a system of records shall Acollect information to the \ngreatest extent practicable directly from the subject individual when the \ninformation may result in adverse determinations about an individual=s rights, \nbenefits, and privileges under Federal programs.@ 5 U.S.C. ' 552a(e)(2). The \nOMB Guidelines state that agencies should consider various factors in \ndetermining whether it is practicable to collect information from the subject \nindividual, including whether information can be obtained only from a third party, \nthe relative costs of obtaining the information from the subject or from a third \nparty, the risk of obtaining inaccurate information from the third party, and the \nneed to verify with a third party information obtained from the subject. 40 Fed. \nReg. 28,949, 28,961 (July 9, 1975). \n1. Tax Records \nThe IRS has exempted the investigatory records of Criminal Investigation \nfrom this requirement as permitted by 5 U.S.C. ' 552a(j)(2). On the other \nhand, Examination and Collection records are not exempt from this \nprovision, but, consistent with the factors identified by OMB, it is expected \nthat some information in these records will be obtained from third parties \nbefore contacting the taxpayer about the matter. The known cases \naddressing this requirement arise in the federal employment context \n(discussed below), but nevertheless provide some guidance on courts=\nviews of the tension between ensuring that the subject individual is \ncontacted first, whenever practicable, and ensuring that an investigation is \nconducted in a manner most likely to obtain true and accurate information. \n2. Employment Records \nCourts have approved contacting a third party before contacting the \nemployee in certain circumstances. For example, in Brune v. IRS, 861 \nF.2d 1284, 1287-88 (D.C. Cir. 1988), a group manager contacted \n",
"11-17\ntaxpayers to confirm a revenue agent’s visits prior to questioning the \nrevenue agent about Ainordinately numerous and lengthy visits.@ The \ncourt held that this was acceptable where Aan investigator reasonably \nconcludes . . . that contacting the suspect first would not, in all likelihood, \nmake it unnecessary thereafter to contact third parties but would entail \nsome risk of compromising such further inquiry.@ The court expressed \nconcern that the revenue agent was in a position to coerce taxpayers \nwhose returns he was examining into altering their testimony regarding the \nvisits. Consistent with Brune, two other decisions have upheld the IRS \npractice of contacting taxpayers before interviewing agents who were \nunder internal investigation. Alexander v. IRS, Civ. A. No. 86-0414-LFO, \n1987 WL 13958, at *6-7 (D.D.C. June 30, 1987); Merola v. Dep’t of the \nTreasury, No. 83-3323, slip op. at 5-9 (D.D.C. Oct. 24, 1986). \nWhere an employee’s ability to alter evidence or coerce a witness is \nvirtually nonexistent, the employee should be contacted before third \nparties. Waters v. Thornburgh, 888 F.2d 870, 873-74 (D.C. Cir. 1989). \nAlso, that an employee might be distressed, embarrassed, or angered by \nquestions about his conduct does not, standing alone, override the \ngeneral requirement that the employee be contacted first. Dong v. \nSmithsonian Inst., 943 F. Supp. 69, 73-74 (D.D.C. 1996), rev’d on other \ngrounds, 125 F.3d 877 (D.C. Cir. 1997), cert. denied, 524 U.S. 922 (1998). \nReviewing the agency’s own file of documents completed and provided by \nthe employee may be sufficient collection Afrom the subject individual@.\nDarst v. SSA, 172 F.3d 1065, 1068 (8th Cir. 1999) (SSA employee’s \napplication for SSA benefits reviewed); Olivares v. NASA, 882 F. Supp. \n1545, 1549-50 (D. Md. 1995), aff’d, 103 F.3d 119, No. 95-2343,1996 WL \n690065, at *2 (4th Cir. Dec. 3, 1996) (multiple Forms 171 provided by \nemployee, with signed authorizations for agency to investigate any \ninformation on the form), cert. denied, 522 U.S. 814 (1997). When an \ninvestigator determines that obtaining information from the subject \nindividual is not practicable, the reasons for the determination should be \narticulated in writing. \n3. EEO Records \nIn the context of equal employment opportunity complaints, it is important \nto keep in mind who is the \"subject\" of the record. The subject of the \nrecord created during EEO counseling (or \"pre-complaint\" counseling) \nconducted pursuant to 29 C.F.R. § 1614.105, is the complainant. These \nrecords are maintained in the system “Treasury/IRS 36.001, Appeals, \nGrievances, and Complaints”, and are retrieved by the identity of the \ncomplainant. Complaint records at the Treasury Regional Complaint \nCenter are also retrieved by the identity of the complainant. When an \ninquiry is made into whether discipline of the employee whose actions \nwere the basis of the EEO complaint is appropriate, the subject of this \n",
"11-18\ninquiry is the alleged wrongdoing employee. These records are \nmaintained in the General Personnel and Payroll system of records (IRS \n36.003), and are retrieved by the identity of the alleged wrongdoer. \nNeither of these systems is exempt from Privacy Act access by the subject \nof the record, but the applicability of 5 U.S.C. § 552a(d)(5) should be \nconsidered if a request for access is received from the subject employee. \nF. Notice Requirements\nThe Privacy Act requires each agency that maintains a system of records to \ninform each individual requested to supply information: \n1. The authority which authorizes the solicitation of the information, and \nwhether providing the information is voluntary or mandatory; \n2. The principal purpose(s) for which the information is intended to be \nused;\n3. The routine uses which may be made of the information; and \n4. The effects, if any, on the individual of not providing all or any part of \nthe requested information. \n5 U.S.C. ' 552a(e)(3). The notice requirement does not extend to individuals \nsolicited for information as witnesses. OMB Guidelines, 40 Fed. Reg. 28,949, \n28,961 (July 9, 1975). But see Saunders v. Schweiker, 508 F. Supp. 305, 309 \n(W.D.N.Y. 1981) (plain language of subsection (e)(3) “does not in any way \ndistinguish between first-party and third-party contacts”). The IRS has exempted \nits Criminal Investigation systems of records from this requirement, as authorized \nby 5 U.S.C. ' 552a(j)(2). \nThe various inquiries made of individuals by the IRS in the course of tax \nadministration are basically part of a single process. Rather than include the \nidentical notice information in numerous forms or letters, the IRS has adopted an \n\"umbrella\" approach. A universal Privacy Act notice is included in the Form \n1040/1040A/1040EZ instruction packages. Even though the universal notice is \nlegally adequate for subsequent inquiries, the IRS makes available an additional \nnotice, Notice 609. Notice 609 is distributed to taxpayers subject to collection \nactivity or taxpayers whose returns are selected for examination. Case law has \nembraced these notices as satisfying the requirements of subsection (e)(3). \nSee, e.g., United States v. Bressler, 772 F.2d 287, 292-93 (7th Cir. 1985), cert.\ndenied, 474 U.S. 1082 (1986); United States v. Wilber, 696 F.2d 79, 80 (8th Cir. \n1982); United States v. Annunziato, 643 F.2d 676, 678 (9th Cir.), cert. denied,\n452 U.S. 966 (1981). \n",
"11-19\nTaxpayers have attempted to quash summonses and indictments, suppress \nevidence, and otherwise collaterally attack IRS enforcement activities by claiming \nthat the IRS failed to provide a Privacy Act notice. Courts have universally \nrejected this argument. See, e.g., United States v. McAnlis, 721 F.2d 334, 337 \n(11th Cir. 1983); United States v. Berney, 713 F.2d 568, 572 (10th Cir. 1983); \nHernandez v. United States, No. CV-10-MC-9181, 2010 WL 5292339, at *3 (D. \nOr. 2010).68\nG. Accuracy, Relevance, Timeliness, and Completeness\nWhen records collected about an individual are to be used in making a \ndetermination about that individual, or are to be disseminated to another person \n(other than an agency and other than pursuant to any of the provisions of \nsubsection (b)(2)), the Privacy Act obligates the IRS to make reasonable efforts \nto ensure that the records are \"accurate, relevant, timely, and complete\" at that \ntime. 5 U.S.C. ' 552a(e)(5) and (6). Perfect records are not required by \nsubsection (e)(5); instead, “reasonableness” is the standard. See Johnston v. \nHorne, 875 F.2d 1415, 1421-22 (9th Cir. 1989). Likewise, subsection (e)(6) \nrequires agencies to make reasonable efforts to review records before they are \ndisseminated. NTEU v. IRS, 601 F. Supp. 1268, 1272 (D.D.C. 1985). Note that \nviolations of section (e)(5) and (e)(7) can occur even if records are not in a \nsystem of records, but damages are available only if the plaintiff can demonstrate \nan adverse effect. Gerlich v. DOJ, 828 F. Supp. 2d 284, 287 (D.D.C. 2011) \n(court also addressed issues of spoliation applicable to records destroyed prior to \nrelated investigation or litigation, but arguably not in compliance with Federal \nRecords Act). \nH. First Amendment Rights \nRecords that reflect the exercise of an individual's First Amendment rights may \nbe maintained by an agency only if (1) a statute specifically authorizes \nmaintenance; (2) the individual consents to maintenance; or (3) the records are \npertinent to and within the scope of an authorized law enforcement activity. \n5 U.S.C. ' 552a(e)(7). \nAgencies cannot exempt themselves from this requirement. Law enforcement \nincludes civil and criminal investigations, administrative, regulatory, or judicial \nproceedings, and information gathering. Courts that have considered the issue \nhave said that information on the exercise of First Amendment rights need not be \nin a system of records to be covered. See, e.g., Gerlich v. DOJ, 828 F. Supp. 2d \n68 This principle of law is so accepted that several appellate decisions rejecting efforts to quash \nsummonses on Privacy Act grounds are unpublished. See Theuring v. United States, 178 F.3d 1296 \n(table cite), No. 98-3378, 1999 WL 220135, at *2 (6th Cir. Mar. 18, 1999); United States v. Harris, 172 \nF.3d 54 (table cite), No. 98-3117, 1998 WL 870351, at *2 (7th Cir. Dec. 11, 1998); United States v. \nKoziol, 79 F.3d 1155 (table cite), No. 94-35981, 1996 WL 102582, at *1 (9th Cir. Mar. 6, 1996). \n",
"11-20\n284, 287 (D.D.C. 2011) (violations of section (e)(5) and (e)(7) can occur even if \nrecords are not in a system of records, but damages are available only if plaintiff \ncan demonstrate an adverse effect; court also addressed issues of spoliation \napplicable to records destroyed prior to related investigation or litigation, but \narguably not in compliance with Federal Records Act). Maydak v. United States,\n363 F.3d 512, 516 (D.C. Cir. 2004), aff’d in part and vacated in part on other \ngrounds by 630 F.3d 166 (D.C. Cir. 2010); MacPherson v. IRS, 803 F.2d 479, \n481 (9th Cir. 1986); Clarkson v. IRS, 678 F.2d 1368, 1372-77 (11th Cir. 1982), \nappeal after remand, 811 F.2d 1396 (11th Cir.), cert. denied, 481 U.S. 1031 \n(1987); Albright v. United States, 631 F.2d 915, 918-21 (D.C. Cir. 1980), related \nproceedings, 732 F.2d 181 (D.C. Cir. 1984). \nI. Legal Process: Notice to Individual of Disclosure \nAgencies must \"make reasonable efforts to serve notice on an individual when \nany record on such individual is made available to any person under compulsory \nlegal process when such process becomes a matter of public record.\" 5 U.S.C. \n' 552a(e)(8). This notice is not advance notice, but must be made to the last \nknown address of the individual within five working days after the disclosure is \nmade. This provision applies to: \n1. disclosures made pursuant to subpoenas or summonses; \n2. disclosures made pursuant to an \"order of a court of competent \njurisdiction\" under 5 U.S.C. ' 552a(b)(11) (but note that notice of \ndisclosures made pursuant to a sealed order should not be provided \nuntil after the order has been unsealed by the court); and \n3. disclosures of tax returns and return information pursuant to a \nsection 6103(i) ex parte order. \nThis provision does not apply to disclosures made pursuant to a written request \nby, or with the written consent of, the individual to whom the record pertains. \nNote: The IRS has exempted its Criminal Investigation systems of records \nfrom this provision of the Privacy Act.\nJ. Civil Remedies \nThe Act provides that an individual may seek judicial review over four types of \nactions: (1) refusal to grant access; (2) refusal to correct or amend a record; (3) \nfailure to maintain a record with accuracy, relevance, timeliness, or \ncompleteness; or (4) failure to comply with any of the other provisions of the \nPrivacy Act. 5 U.S.C. ' 552a(g)(1). The right of action created by the Act is \nlimited to actions against federal agencies, and not against employees of the \nagencies. Further, to prevail, the plaintiff needs to demonstrate that disclosure \n",
"11-21\nactually occurred. York v. McHugh, No. 09-075, ___F. Supp. 2d ___, 2012 WL \n1014503 (D.D.C. Mar. 27, 2012). \nThe right of action carries a two-year statute of limitations from the date on which \nthe cause of action arises. The only exception to the rule is where an agency \nhas materially and willfully misrepresented any information required by the \nPrivacy Act to be disclosed and that misrepresented information is material to \nestablishing the agency’s liability to the individual about whom the information \nrelates, in which case the statute of limitations is two years after discovery by the \nindividual of the misrepresentation. 5 U.S.C. § 552a(g)(5). \nThe Act provides a detailed scheme of exclusive judicial remedies (injunctive or \nmonetary relief), depending on the nature of the violation. Under principles of \nsovereign immunity, remedies not provided for in the Act are not available. \nThere is no right to trial by jury. Damages are not available for mental or \nemotional distress. FAA v. Cooper, 132 S.Ct. 1441 (2012) (In 5 - 3 opinion, \nusing sovereign immunity analysis, Court held that Privacy Act does not \nauthorize damages for mental or emotional distress; statutory minimum of $1,000 \nis available only if plaintiff demonstrates pecuniary loss). \nRemember, section 7852(e) provides that the provisions of subsection (g) of the \nPrivacy Act do not apply to determinations of liability under Title 26. See Section \nIII.C.3, above. \nK. Criminal Penalties \nThe Act also provides for criminal penalties against: (1) any agency employee \nwho makes a disclosure knowing it to violate the Act or who maintains a system \nof records without meeting the notice and publication requirements of section \n(e)(4); (2) a section (m)(1) contractor (or contractor’s employee) who violates the \nAct; or (3) any person who willfully obtains an individual’s records from an \nagency under false pretenses. 5 U.S.C. ' 552a(i). \nOnly one criminal case under the Privacy Act has ever been reported: United \nStates v. Trabert, 978 F. Supp. 1368 (D. Colo. 1997). In Trabert, the defendant \nprovided patient name and address information to a university hospital at the \nrequest of an Army medical center doctor. He was acquitted of the charge of \nunauthorized disclosure of records because the government did not prove \nwillfulness. \nL. Government Contractors\nThe Privacy Act provides that a government contractor that operates a system of \nrecords for a federal agency is subject to the same Privacy Act limitations as the \nfederal agency with respect to the system of records. 5 U.S.C. ' 552a(m)(1). \n",
"11-22\nThe agency is then required to enforce the recordkeeping and disclosure \nrestrictions of the Act upon the contractor and its employees. \nThis provision does not authorize disclosure of records to contractors. The \nauthority must otherwise exist; e.g., routine uses. Where routine use authority \ndoes exist, then it is necessary to determine whether the contractor is operating \na system of records to accomplish an agency function. \nThis provision does not extend to every government contractor who has access \nto Privacy Act covered records. The contract must call for the contractor to \n\"operate a system of records\" to accomplish an agency function. OMB Guidance \nstates that the statutory language was \"intended to limit the scope of the \ncoverage to those systems actually taking the place of a federal system which, \nbut for the contract, would have been performed by an agency and covered by \nthe Privacy Act.\" OMB Guidelines, 40 Fed. Reg. 28,949, 28,976 (July 9, 1975). \nM. Social Security Number (Privacy Act ' 7, Uncodified)\nThis is the only provision of the Act that extends beyond the federal government \nto also include state and local governments. Section 7(a)(1) of the Privacy Act, \nsee 5 U.S.C. § 552a note (Disclosure of Social Security Number), provides that it \nis “unlawful for any federal, state, or local government agency to deny any \nindividual any right, benefit, or privilege provided by law because of such \nindividual's refusal to disclose his or her social security number.” \nNotwithstanding the seemingly simple mandate above, it does not apply to \ndisclosures required by federal statute and by federal, state, or local government \nagencies maintaining systems of records in existence and operating before \nJanuary 1, 1975, if the disclosure was required under statute or regulation \nadopted prior to that date for the purpose of verifying an identity. See\nSection 7(a)(2)(A)-(B). Also, 42 U.S.C. ' 405(c)(2)(C)(i) and (iv) (2000), enacted \nby the Tax Reform Act of 1976 (Pub. L. No. 94-455, section 1211), expressly \nexempts state agencies from this restriction to the extent that SSNs are used “in \nthe administration of any tax, general public assistance, driver’s license, or motor \nvehicle registration law within its jurisdiction.” See, e.g., Stoianoff v. Dep’t of \nMotor Vehicles, 12 Fed. App’x 33, 35 (2d Cir. 2001) (finding that plaintiff’s \nPrivacy Act claim fails because section 405(c)(2)(C)(i) “expressly authorizes \nstates to require the disclosures of social security numbers in the administration \nof driver’s license programs” and further provides that “any federal law that \nconflicts with this section is ‘null, void, and of no effect’”), cert. denied, 534 U.S. \n954 (2001). \nInterestingly, although section 7 of the Privacy Act regulates state and local \ngovernments, the Ninth Circuit has held that individuals have a private cause of \naction only against federal agencies. Sutton v. Providence St. Joseph Med. Ctr.,\n192 F.3d 826, 844 (9th Cir. 1999) (private entity cannot be sued under the \n",
"11-23\nPrivacy Act); Dittman v. California, 191 F.3d 1020, 1026 (9th Cir. 1999) (AThe\ncivil remedy provisions of the statute do not apply against private individuals, \nstate agencies, private entities, or state and local officials@ (citing Unt v. \nAerospace Corp., 765 F.2d 1440, 1447 (9th Cir. 1985))), cert. denied, 530 U.S. \n1261 (2000). In contrast, the Eleventh Circuit rejected Dittman and specifically \nfound that a private remedy against state governments for violations of section 7 \nexists via the Civil Rights Act, 42 U.S.C. § 1983. See Schwier v. Cox, 340 F.3d \n1284, 1289-90 (11th Cir. 2003); see also Greidinger v. Davis, 988 F.2d 1344, \n1348-54 (4th Cir. 1993) (sustaining citizen’s claim, based upon Equal Protection \nClause of the 14th Amendment, that Virginia law requiring publication of \nprospective voter’s social security number violated section 7 of the Privacy Act). \nWhen an agency requests an individual to disclose his or her social security \nnumber, it must state whether compliance with the request is mandatory or \nvoluntary. The agency must also name the authority that authorizes solicitation \nof the number. In general, the authority for requiring the use of SSNs for tax \nadministration purposes is section 6109. Also, the agency must state the \nintended use of the information. Any penalties or other effects of failure or \nrefusal to provide the social security number must also be stated. These \nrequirements are in addition to the general notice requirements of the Privacy Act \nat 5 U.S.C. § 552a(e)(3), noted above. \nNotices requesting information and disclosure of SSNs not related to tax \nadministration are also subject to the Privacy Act (e.g., requests to IRS \nemployees for administrative and personnel purposes). In these cases, the \ninformation requested is so varied that particularized notices are used. The \nPrivacy Act Notice should be included in the form. Generally, Executive Order \n9397, Numbering System for Federal Accounts Relating to Individual Persons, is \nthe authority for soliciting social security numbers for personnel-related matters. \nSee Exec. Order No. 9397, 5 C.F.R., 1943 Supp., 2.6, as revised by Exec. Order \nNo. 13478 (73 FR 70239, Nov. 20, 2008).\nN. Requests or Demands for Production of Records Maintained in Systems \nof Records or Testimony from a System of Records \nThis section of the Privacy Act chapter is limited to IRS records maintained in \nsystems of records not containing tax information, e.g., personnel records. For a \nmore complete discussion of testimony authorizations, see generally Chapter 12. \nTypically, the IRS receives subpoenas for personnel records of a current or \nformer employee for use in a nontax proceeding to which the IRS is not a party. \nTo determine whether the information may be produced, first consider whether \nthe records are maintained in a Privacy Act system of records. For example, \ncompare payroll records (retrieved by individual name) with vacancy \nannouncement records (retrieved by vacancy announcement number, not by \napplicant's name). Only the former is covered by the Privacy Act. In fact, \n",
"11-24\nidentical information may be in different records that are afforded different status \nunder the Privacy Act, depending on the manner in which the records are stored \nand retrieved. \nAssuming that the record or information requested is kept in a system of records, \nlocate the current notice of the system of records, as published in the Federal \nRegister. Note that a system notice can be amended without full republication; \nbe sure to check for this. The most recent compilation of IRS SORNs can be \nfound at http://edocket.access.gpo.gov/2008/pdf/E8-4430.pdf; 73 Fed. Reg. \n13,284 (Mar. 12, 2008). The Privacy Act serves as an absolute statutory bar to \nthe production of subpoenaed records or the giving of testimony unless: (1) a \nconsent to disclosure is obtained pursuant to 5 U.S.C. ' 552a(b); (2) the \ndisclosure is required by FOIA, see 5 U.S.C. ' 552a(b)(2); or (3) the IRS \nexercises its discretionary authority to disclose the records or information in \naccordance with its published routine uses. Remember, published routine uses \nare discretionary, not mandatory. \nIf the IRS refuses to produce the subpoenaed records or testimony, the party \nissuing the subpoena may seek to compel production. If the court orders \nproduction, disclosure is permitted by subsection (b)(11) (\"order of a court of \ncompetent jurisdiction\"). See generally Doe v. DiGenova, 779 F.2d 74, 84-85 \n(D.C. Cir. 1985).69\nThis issue is also discussed in Litigation Guideline Memorandum DL-3, \n\"Disclosure of Personnel Records (Other Than Tax Information) Pursuant to \nSubpoena.\" See 1991 IRS LGM LEXIS 27 (Sept. 12, 1991). \nIV. MISCELLANEOUS CONSIDERATIONS \nA. Private Supervisory Notes \n“Private supervisory notes” are notes maintained by supervisors as “memory \njoggers” to assist with preparing appraisals of subordinate employees. By \ncontract, the IRS and Counsel have agreed that private supervisory notes will be \nshared with the affected employee. Therefore, although case law to the contrary \nexists, the IRS considers private supervisory notes as part of the system of \nrecords \"Treasury/IRS 36.003 - General Personnel and Payroll,\" and copies of \nany notes must be provided to the employee upon request. \n69 As noted above, this section pertains only to nontax information maintained in Privacy Act systems \nof records. If the subpoenaed records or information ordered disclosed constitute or contain tax \nreturn(s) or return information, then the court order also must satisfy the requirements of \nsection 6103. \n",
"11-25\nB. Employment Recommendations for Current or Former Subordinate \nEmployees \nMost employment records are located in the system “Treasury/IRS 36.003, \nGeneral Personnel and Payroll Records.” See Routine Use (1) (\"Provide \ninformation to a prospective employer of an IRS employee or former IRS \nemployee\"). If relying on records from a different system of records, determine \nwhether there is a published routine use authorizing disclosure for this purpose. \nRemember also that the routine use authorizes, but does not require, disclosure. \nInformation divulged from personal opinion stated from memory (and not derived \nfrom a Privacy Act record) is not a disclosure of a record from a system of \nrecords within the meaning of the Privacy Act. Krowitz v. Dep’t of Agric., 641 F. \nSupp. 1536, 1544-45 (W.D. Mich. 1986), aff’d, 826 F.2d 1063 (6th Cir. 1987), \ncert. denied, 484 U.S. 1009 (1988); King v. Califano, 471 F. Supp. at 181. See \nalso Doe v. Dep’t of Veterans Affairs, 519 F.3d 456, 463 (8th Cir. 2008) (relying \non Olberding v. Dep’t of Defense, 709 F.2d 621 (8th Cir. 1983), the Eighth Circuit \nheld that disclosing information from “personal knowledge and memories” is not \na violation of the Privacy Act, even if the same information is found in a system of \nrecords), cert. denied, 129 S. Ct. 1032 (2009); Armstrong v. Geithner, 608 F.3d \n854, 860 (D.C. Cir. 2010) (no Privacy Act violation when agency employee \ndiscloses information from her own complaint of unauthorized access, \nobservation, office “rumor mill,” and speculation, since she did not obtain any \ninformation from agency records); J.Q. Doe v. Dep’t of the Treasury, 706 \nF.Supp.2d 1 (D.D.C. 2009) (no Privacy Act violation when agency employee \ndisclosed information from personal observation, even if such information is also \ncontained in a record that employee neither created nor reviewed). But see\nWilborn v. HHS, 49 F.3d 597, 601 (9th Cir. 1995) (person involved in the creation \nof the record, or who makes a decision based on the information in the record, \nwho discloses information from memory violates the Privacy Act), abrogated on \nother grounds by Doe v. Chao, 540 U.S. 614, 618 (2004); Pilon v. U.S. Dep’t of \nJustice, 73 F.3d 1111, 1118 (D.C. Cir. 1996) (same); Bartel v. FAA, 725 F.2d at \n1408-11 (same, quoted in Pilon).\nC. Criminal Tax Trials \nTwo Ninth Circuit opinions establish the requirement that, upon request by a \ncriminal defendant, the government has an obligation to search its own files for \nexculpatory material including evidence affecting the credibility of its proposed \nwitnesses and to provide that material to counsel for the defendant. United \nStates v. Jennings, 960 F.2d 1488, 1490-91 (9th Cir. 1992); United States v. \nHenthorn, 931 F.2d 29, 30 (9th Cir. 1991). For government employee witnesses, \nthis includes a review of their personnel files. Jennings allows for review of \ngovernment files for potentially exculpatory material by various government \nemployees other than the Assistant United States Attorney assigned to the case. \nIn Kyles v. Whitley, 514 U.S. 419 (1995), the Court noted that the prosecutor was \n",
"11-26\nresponsible for ensuring that exculpatory material was provided to the defense. \nSee United States v. Lacy, 896 F.2d 982, 985 (N.D. Cal. 1995) (overruling of \nJennings recognized). Jennings makes clear that this requirement is based upon \nthe constitutional underpinnings of the Fifth Amendment as set forth in Brady v. \nMaryland, 373 U.S. 83 (1963). This requirement to review for, and provide to the \ndefense, exculpatory material overrides any Privacy Act considerations. \nV. LINKS TO OTHER RESOURCES \nIRS Privacy Act Systems of Records: \nhttp://edocket.access.gpo.gov/2008/pdf/E8-4430.pdf (check for amendments) \nGovernment wide systems of records: \nhttp://www.defenselink.mil/privacy/govwide/\nDepartment of Justice, Office of Privacy & Civil Liberties, Overview of the Privacy \nAct of 1974: \nhttp://www.justice.gov/opcl/1974privacyact-overview.htm\nTreasury Directive 25-04: \nhttp://www.treasury.gov/about/role-of-treasury/orders-directives/Pages/td25-\n04.aspx\nTreasury Department Privacy Act Handbook, TDP 25-04: \nhttp://www.treasury.gov/FOIA/Documents/tdp25-04.pdf\n",
"12-1 \nCHAPTER 12 \n TESTIMONY AUTHORIZATION \nI. INTRODUCTION \nIRS employees, including current and former employees of the Service, Office of Chief \nCounsel, and IRS contractors, may not testify about or produce official IRS records or \ninformation in response to a request or demand from outside the IRS without prior \nauthorization. \nTreas. Reg. §§ 301.9000-1 to 301.9000-7 establish procedures to be followed by \ncurrent and former employees and contractors of the IRS who receive requests for \ndisclosure of IRS records or information. The ultimate decision to disclose Service \nrecords or information belongs to the authorized official with delegated authority to \nauthorize testimony or disclosure of IRS records or information. Thus, the general rule \nis that when an authority outside the IRS seeks to depose an IRS employee or \ncontractor or requests that IRS records be produced by the government, disclosure is \nnot permitted absent authorization from the Commissioner or the Commissioner's \ndelegate in accordance with Treas. Reg. ' 301.9000-3(a). \nIRM 11.3.35 also provides detailed instructions and procedures concerning \nauthorization of testimony and the production of documents. \nII. TESTIMONY AUTHORIZATION \nA. Statutory/Regulatory Structure \nUnder the General Housekeeping Statute, 5 U.S.C. § 301, heads of executive or \nmilitary departments may prescribe regulations for, among other things, the \ncustody, use, and preservation of their records, papers, and property. Many \ndepartments and agencies have promulgated regulations under this statute for \nthe disclosure of their official records and information. Generally, these are \ntermed Touhy regulations, after the Supreme Court’s decision in United States \nex rel. Touhy v. Ragen, 340 U.S. 462 (1951). In Touhy, the Supreme Court held \nthat an agency employee could not be held in contempt for refusing to disclose \nagency records or information when following the instructions of his or her \nsupervisor regarding the disclosure. \nThe Service’s Touhy regulations concerning the production of written records by, \nand the oral testimony of, employees of the IRS are found at Treas. Reg. \n§§ 301.9000-1 to 301.9000-7. With limited exceptions, current and former IRS \nemployees and contractors may not testify or disclose IRS records or information \nto any court or governmental agency, the Congress, or to a committee or \nsubcommittee of the Congress, without express authority from the appropriate \nauthorizing official. An IRS employee who violates the regulations may be \n",
"12-2 \nsubject to administrative discipline, up to and including dismissal from \nemployment. Treas. Reg. § 301.9000-4(h). Current and former IRS contractors \nthat violate the regulations may be subject to applicable contractual sanctions \nand/or criminal penalties. Id.\n1. General Rule \nExcept as otherwise provided in the regulations, when a request or \ndemand for IRS records or information is made, no current or former IRS \nofficer, employee or contractor shall testify or disclose IRS records or \ninformation to any court, administrative agency or other authority, or to the \nCongress, or to a committee or subcommittee of the Congress without a \ntestimony authorization. Treas. Reg. ' 301.9000-3(a). \n2. Definitions \na. “IRS records or information” means any material (including \ncopies thereof) contained in the files (including paper, electronic \nor other media files) of the IRS, any information relating to \nmaterial contained in the files of the IRS, or any information \nacquired by an IRS officer or employee, while an IRS officer or \nemployee, as a part of the performance of official duties or \nbecause of that IRS officer or employee’s official status with \nrespect to the administration of the internal revenue laws or any \nother laws administered by or concerning the IRS. IRS records \nor information includes, but is not limited to, returns and return \ninformation as those terms are defined in section 6103(b)(1) and \n(2) of the Code, tax convention information as defined in section \n6105, information gathered during Bank Secrecy Act and money \nlaundering investigations, and personnel records and other \ninformation pertaining to IRS officers and employees. IRS \nrecords and information also includes information received, \ngenerated or collected by an IRS contractor pursuant to the \ncontractor’s contract or agreement with the IRS. The term does \nnot include records or information obtained by IRS officers and \nemployees while under the direction and control of the United \nStates Attorney’s Office during the conduct of a federal grand \njury investigation, but does include records or information \nobtained during the administrative stage of a criminal \ninvestigation (before the initiation of the grand jury), obtained \nfrom IRS files (such as transcripts or tax returns), or \nsubsequently obtained by the IRS for use in a civil investigation. \nTreas. Reg. § 301.9000-1(a). \nb. “IRS officers and employees” means all officers and \nemployees of the United States appointed by, employed by, or \n",
"12-3 \nsubject to the directions, instructions, or orders of the \nCommissioner or IRS Chief Counsel and also includes former \nofficers and employees. Treas. Reg. § 301.9000-1(b). \nc. “IRS contractor” means any person, including the person’s \ncurrent and former employees, maintaining IRS records or \ninformation pursuant to a contract or agreement with the IRS, \nand also includes former contractors. Treas. Reg. § 301.9000-\n1(c). \nd. A “request” is any request for testimony of an IRS officer, \nemployee or contractor or for production of IRS records or \ninformation, oral or written, by any person, which is not a \ndemand. Treas. Reg. § 301.9000-1(d). \n \n \n \n \ne. A “demand” is any subpoena or other order of any court, \nadministrative agency or other authority, or the Congress, or a \ncommittee or subcommittee of the Congress, and any notice of \ndeposition (either upon oral examination or written questions), \nrequest for admissions, request for production of documents or \nthings, written interrogatories to parties, or other notice of, \nrequest for, or service for discovery in a matter before any court, \nadministrative agency or other authority. Treas. Reg. \n§ 301.9000-1(e). \nf. An “IRS matter” is any matter before any court, administrative \nagency or other authority in which the United States, the \nCommissioner, the IRS, or any IRS officer or employee acting in \nan official capacity, or any IRS officer or employee (including an \nofficer or employee of IRS Chief Counsel’s office) in his or her \nindividual capacity if DOJ or the IRS has agreed to represent or \nprovide representation to the IRS officer or employee, is a party \nand that is directly related to official business of the IRS or to any \nlaw administered by or concerning the IRS, including, but not \nlimited to, judicial and administrative proceedings described in \nsection 6103(h)(4) and (l)(4). Treas. Reg. § 301.9000-1(f). \ng. An “IRS congressional matter” is any matter before the \nCongress, or a committee or subcommittee of the Congress, \nthat is related to the administration of the internal revenue laws \nor any other laws administered by or concerning the IRS, or to \nIRS records or information. Treas. Reg. § 301.9000-1(g). \nh. A “non-IRS matter” is any matter that is not an IRS matter or an \nIRS congressional matter. Treas. Reg. § 301.9000-1(h). \n",
"12-4 \ni. A “testimony authorization” is a written instruction, or oral \ninstruction memorialized in writing within a reasonable period, by \nan authorizing official that sets forth the scope of and limitations \non proposed testimony and/or disclosure of IRS records or \ninformation issued in response to a request or demand for IRS \nrecords or information. A testimony authorization may grant or \ndeny authorization to testify or disclose IRS records or \ninformation and may make an authorization effective only upon \nthe occurrence of a precedent condition, such as the receipt of a \nconsent complying with the provisions of section 6103(c). Treas. \nReg. § 301.9000-1(i). \nj. An “authorizing official” is a person with delegated authority to \nauthorize testimony and the disclosure of IRS records or \ninformation. Treas. Reg. § 301.9000-1(j). \n3. Procedures in Event of a Request or Demand \na. Notification of the disclosure officer: Except for requests or \ndemands in United States Tax Court cases, in personnel, labor \nrelations, government contract, IRS congressional matters, in \nmatters related to informant claims or the rules of Bivens v. Six \nUnknown Named Agents of Fed. Bureau of Narcotics, 403 U.S. \n388 (1971), or the Federal Tort Claims Act (FTCA), an IRS \nofficer, employee or contractor who receives a request or \ndemand for IRS records or information for which a testimony \nauthorization is or may be required shall notify promptly the \ndisclosure officer servicing the IRS officer’s, employee’s or \ncontractor’s geographic area. The IRS officer, employee or \ncontractor shall await instructions from the authorizing official \nconcerning the response to the request or demand. Treas. Reg. \n§ 301.9000-4(b). \nb. Requests or demands in United States Tax Court cases: An IRS \nofficer, employee or contractor who receives a request or \ndemand for IRS records or information on behalf of a petitioner \nin a United States Tax Court case shall notify promptly the IRS \nChief Counsel attorney assigned to the case. The IRS Chief \nCounsel attorney shall notify promptly the authorizing official. \nThe IRS officer, employee or contractor who received the \nrequest or demand shall await instructions from the authorizing \nofficial. Treas. Reg. § 301.9000-4(c). \n",
"12-5 \nc. Requests or demands in personnel, labor relations, government \ncontract, Bivens or FTCA matters, or matters related to \ninformant claims: An IRS officer, employee or contractor who \nreceives a request or demand, on behalf of an appellant, \ngrievant, complainant or representative, for IRS records or \ninformation involving informant claims shall promptly contact the \nPublic Contracts & Technology Law Branch in Washington, DC. \nFor all other matters involving personnel, labor relations, \ngovernment contracts, Bivens or FTCA matters, promptly notify \nthe IRS Associate Chief Counsel (General Legal Services \n(GLS)) attorney assigned to the case. If no IRS Associate Chief \nCounsel (GLS) attorney is assigned to the case, the IRS officer, \nemployee or contractor shall notify promptly the IRS Associate \nChief Counsel (GLS) attorney servicing the geographic area. \nThe IRS Associate Chief Counsel (GLS) attorney shall notify \npromptly the authorizing official. The IRS officer, employee or \ncontractor who received the request or demand shall await \ninstructions from the authorizing official. Treas. Reg. § \n301.9000-4(d). \nd. Requests or demands in IRS congressional matters: An IRS \nofficer, employee or contractor who receives a request or \ndemand in an IRS congressional matter shall notify promptly the \nIRS Office of Legislative Affairs. The IRS officer, employee or \ncontractor who received the request or demand shall await \ninstructions from the authorizing official. Treas. Reg. \n§ 301.9000-4(e). \nB. Testimony Authorization Not Required \nA testimony authorization is not required: \n1. To respond to a request or demand for IRS records or information by \nan attorney or other government representative regarding an IRS \nmatter; \n2. To respond solely in writing, under the direction of an attorney or other \nrepresentative of the government, to requests and demands in IRS \nmatters, including, but not limited to, admissions, document production, \nand written interrogatories to parties; \n3. To respond to a request or demand issued to a former IRS officer, \nemployee or contractor for expert or opinion testimony if the testimony \ninvolves general knowledge (such as information contained in \npublished procedures of the IRS or the IRS Office of Chief Counsel) \n",
"12-6 \ngained while the former IRS officer, employee or contractor was \nemployed or under contract with the IRS; or \n4. If a more specific procedure established by the Commissioner governs \ndisclosure of IRS records or information. These procedures include, \nbut are not limited to, those relating to: procedures pursuant to Treas. \nReg. § 601.702(d); Freedom of Information Act requests pursuant to \n5 U.S.C. § 552; Privacy Act requests pursuant to 5 U.S.C. § 552a; \ndisclosures to state tax agencies pursuant to section 6103(d); and \ndisclosures to DOJ pursuant to an ex parte order under section \n6103(i)(1). Treas. Reg. § 301.9000-3(b). It is sometimes possible for \nan opposing party to examine an IRS employee or contractor as a \nwitness even if the person does not have a prior written authorization. \nThe government trial attorney must agree to call the IRS employee as \na government witness for which no authorization is needed. Under \ngeneral adversarial rules the taxpayer will then be entitled to cross-\nexamine the witness. This procedure is discretionary with the \ngovernment trial attorney, however, and it will be utilized only rarely. \nIII. VALIDITY AND SCOPE OF TREAS. REG. § 301.9000\nA. Validity of Treas. Reg. §§ 301.9000-1 to 301.9000-7 \nFederal employees following instructions issued in conformity with Touhy \nregulations are protected from contempt citations. The Supreme Court \nspecifically recognized the authority of agency heads to restrict testimony of their \nsubordinates by regulations similar to Treas. Reg. §§ 301.9000-1 to 301.9000-7. \nUnited States ex rel. Touhy v. Ragen, 340 U.S. 462, 467-69 (1951); Boske v. \nComingore, 177 U.S. 459, 469-70 (1900). In Touhy, the Supreme Court held \nthat a DOJ officer properly refused to obey a subpoena pursuant to the Attorney \nGeneral's instructions under Disclosure or Use of Confidential Records and \nInformation, 11 Fed. Reg. 4920 (May 2, 1946). Much earlier, the Supreme Court \nin Boske reversed a contempt citation issued to a collector of Internal Revenue \nfor failing to produce copies of a distiller’s report in his possession. Because the \nregulation concerning submission of records to the courts vested discretion in the \nSecretary of the Treasury and was lawful, the subordinate was not held in \ncontempt. \nB. Scope of Authority to Withhold Information \n1. Generally \nThe General Housekeeping statute, 5 U.S.C. § 301, expressly provides \n\"[t]his section does not authorize withholding information from the public or \nlimiting the availability of records to the public.\" In addition, the Service’s \n",
"12-7 \nregulations provide “[n]othing in these regulations creates a separate \nprivilege or basis to withhold IRS records or information.” Treas. Reg. \n§ 301.9000-4(i). Generally, there must be a separate statutory or common \nlaw privilege applicable to the records sought and/or a sound policy \nreason for refusing to permit the testimony of a particular employee or \nclass of employees. See Part VI, below. Moreover, consistent with \nJustice Frankfurter's concurring opinion in Touhy, the protection of the \nregulations has been limited to protecting subordinate employees from \norders of contempt because they followed the instructions of their \nsuperiors. See, e.g., Orange Env’t, Inc. v. Cnty of Orange, 145 F.R.D. \n320, 322 (S.D.N.Y. 1992); Milton Hirsch, “‘The Voice Of Adjuration’: The \nSixth Amendment Right to Compulsory Process Fifty Years After United \nStates ex rel. Touhy v. Ragen,” 30 Fla. St. U.L. Rev. 81, 104-09 (2002). \n5 U.S.C. § 301 allows an agency to prohibit employees from responding to \nsubpoenas to preserve the agency’s privileges and other lawful interests, \nbut it does not create any privileges or protections independent of those \nfound elsewhere in law. Carter v. High Country Mercantile, Inc., No. 08-\n0835-CV-W-ODS, 2009 U.S. Dist. LEXIS 65619, at *11 (W.D. Mo. July 28, \n2009). An agency’s decision, made pursuant to agency regulations, to \nprovide or not provide agency records or to permit or deny employee \ntestimony in litigation not involving the agency is an \"agency action\" \nsubject to judicial review under the Administrative Procedure Act (APA), 5 \nU.S.C. §§ 701 to 706. EPA v. Gen. Elec. Co., 197 F.3d 592, 598 (2d Cir. \n1999). While the Second Circuit initially adopted the APA’s arbitrary and \ncapricious standard, on reconsideration it vacated the relevant portion of \nits decision and reserved the question for the future. EPA v. Gen. Elec. \nCo., 212 F.3d 689, 689-90 (2d Cir. 2000). \nOther Circuits have generally looked to two sources for the appropriate \nstandard when reviewing an agency’s refusal to comply with discovery \ndemands, those established by the APA and those found in the Federal \nRules of Civil Procedure. When applying the standards for review \nestablished by the APA, a court can overturn an agency's action restricting \nemployee testimony if the action was arbitrary, capricious, an abuse of \ndiscretion, or otherwise not in accordance with law. See Davis Enters. v. \nEPA, 877 F.2d 1181, 1186 (3d Cir. 1989), cert. denied, 493 U.S. 1070 \n(1990). Those courts that look to the standard established by the Federal \nRules of Civil Procedure, balance the interests favoring disclosure against \nthe interests asserted against disclosure in an attempt to ensure that the \nunique interests of the government are adequately considered. See SEC \nv. Chakrapani, No. 09 Civ. 325 (RJS) and No. 09 Civ. 1043 (RJS), 2010 \nU.S. Dist. LEXIS 65337, at *29 (S.D.N.Y. June 28, 2010). The question of \nwhich standard a court should apply is unsettled. The Fourth, Seventh and \nEleventh Circuits review the agency’s decision under the APA’s arbitrary \nand capricious standard because the APA contains the waiver of \n",
"12-8 \nsovereign immunity that allows review of the decision at all. See\nCOMSAT Corp. v. NSF, 190 F.3d 369, 272 (4th Cir. 1999); Edwards v. \nDep’t of Justice, 43 F.3d 312, 314-16 (7th Cir. 1994); Barnett v. Ill. State \nBd. of Educ., No. 02 C 2401, 2002 U.S. Dist. LEXIS 12908, at *5, n.1 \n(N.D. Ill. July 2, 2002); Moore v. Armour Pharm. Co., 927 F.2d 1194 (11th \nCir. 1991). The D.C. and Ninth Circuits look to the Federal Rules of Civil \nProcedure for their review of discovery disputes. See Linder v. Calero-\nPortocarrero, 251 F.3d 178, 181-82 (D.C. Cir. 2001); Exxon Shipping Co. \nv. Dep’t of the Interior, 34 F.3d 774, 779-80 (9th Cir. 1994). \n2. State Court Actions \nBased on sovereign immunity and the Supremacy Clause of the \nConstitution, the Service need not comply with a state court subpoena for \ntestimony or records. In the event the Service receives a state court \nsubpoena and decides not to comply, it should consider asking DOJ to \nremove the case to federal court to have the subpoena quashed. The \nService should decide as quickly as possible to allow sufficient time to \ncoordinate the removal effort with the local U.S. Attorney's office. \na. Sovereign Immunity\nThe federal government's sovereign immunity extends, in cases \nwhere the government has not consented to be subject to an \naction, to legal proceedings where the government is named, or \nwhere the net effect of the judgment would be to restrain the \ngovernment from acting or to force it to act: \nEven though the government is not a party to the \nunderlying action, the nature of the subpoena \nproceeding against a federal employee to compel him \nto testify about information obtained in his official \ncapacity is inherently that of an action against the \nUnited States because such a proceeding “interfere[s] \nwith the public administration” and compels the \nfederal agency to act in a manner different from that \nin which the agency would ordinarily choose to \nexercise its public function. Dugan v. Rank, 83 S. Ct. \n999 (1963). The subpoena proceedings fall within the \nprotection of sovereign immunity even though they \nare technically against the federal employee and not \nagainst the sovereign. \nBoron Oil Co. v. Downie, 873 F.2d 67, 70-71 (4th Cir. 1989) \n(emphasis added). A federal court's jurisdiction upon removal \nunder 28 U.S.C. § 1442(a)(1) is derivative of the state court \n",
"12-9 \njurisdiction. Thus, if a state court lacks jurisdiction to compel a \nfederal employee to testify or produce documents, a federal court \ncan acquire no jurisdiction to enforce a state court subpoena or \norder upon removal. \nCase law strongly supports the proposition that the doctrine of \nsovereign immunity prevents a state court from exercising \njurisdiction over United States government agency refusals to \npermit employee testimony. In Boron Oil, the Fourth Circuit found \nthat a state court did not have jurisdiction to compel an EPA \nemployee to \"testify contrary to EPA instructions,\" nor did it have \njurisdiction to review and set aside the agency's decision or its \nregulations promulgated pursuant to 5 U.S.C. ' 301. Id. at 70. See \nalso United States v. Williams, 170 F.3d 431, 433 (4th Cir. 1999) \n(an order of a state court seeking to compel a federal official to \ncomply with a state court subpoena is \"an action against the United \nStates, subject to the governmental privilege of sovereign \nimmunity\") (quoting Smith v. Cromer, 159 F.3d 875, 879 (4th Cir. \n1998)); Elko Cnty. Grand Jury v. Siminoe, 109 F.3d 554, 556 (9th \nCir. 1997), cert. denied, 522 U.S. 1027 (1997) (state grand jury \nlacked jurisdiction not only to compel a federal employee to testify, \nbut also to determine the validity of USDA’s Touhy regulations); \nEdwards, 43 F.3d at 317 (“the cases involving section 1442(a) \nremovals of state subpoena proceedings against unwilling federal \nofficers have held that sovereign immunity bars the enforcement of \nthe subpoena”); Hyde v. Stoner, No. 11-C- 4556, 2012 WL 689268, \nat *2, (N.D. Ill., March 2, 2012 (state court lacked jurisdiction to \ncompel testimony of EPA official in violation of agency regulations; \nsovereign immunity prohibits state courts from enforcing subpoenas \nagainst unwilling federal officers). \nb. Supremacy Clause \nA separate basis for opposing subpoenas or orders to comply with \ndiscovery issued by state courts is the Supremacy Clause of the \nUnited States Constitution, art. VI, cl. 2. Federal law provides the \nonly means through which access to federal documents may be \nsought and granted. See United States v. McLeod, 385 F.2d 734, \n751-52 (5th Cir. 1967) (Supremacy Clause dictates that a state \ngrand jury be enjoined from investigating federal agencies and \nenforcing subpoenas against federal employees); United States v. \nKaufman, 980 F. Supp. 1247, 1251-52 (S.D. Fl. 1997) (subpoena \nissued by state bar to federal judge concerning investigation of \ndefense attorney in ongoing federal criminal matter over which \njudge was presiding violated Supremacy Clause). \n",
"12-10\nc. Removal \nIn the event that a motion to quash or motion for protective order \nbased upon sovereign immunity or the Supremacy Clause is \nrefused by the state court, a Notice of Removal of Civil Subpoena \nunder 28 U.S.C. ' 1442(a)(1) should be filed. In some jurisdictions, \nthe U.S. Attorney's Office automatically files the notice of removal in \nfederal district court and files a Notice of Filing of Notice of \nRemoval of Civil Subpoena to the United States District Court in the \nstate court. Removal is authorized by 28 U.S.C. ' 1442, which \nprovides in relevant part: \n(a) A civil action or criminal prosecution \ncommenced in a State court against any of the \nfollowing may be removed by them to the \ndistrict court of the United States for the district \nand division embracing the place wherein it is \npending: \n(1) The United States or any agency thereof or \nany officer (or any person acting under that \nofficer) of the United States or of any agency \nthereof, sued in an official or individual capacity \nfor any act under color of such office or on \naccount of any right, title or authority claimed \nunder any Act of Congress for the \napprehension or punishment of criminals or the \ncollection of the revenue. \nThe filing of a notice of removal in federal court and the filing in the \nstate court of a notice of filing \"shall effect the removal\" of the \nsubpoena from the state court to the United States District Court, \n\"and the State court shall proceed no further unless and until the \n[matter] is remanded.\" 28 U.S.C. ' 1446(d). The Supreme Court \nhas held that “the right of removal is absolute for conduct \nperformed under color of federal office, and has insisted that the \npolicy favoring removal ‘should not be frustrated by a narrow, \ngrudging interpretation of [28 U.S.C.] § 1442(a)(1).’” Arizona v. \nManypenny, 451 U.S. 232, 242 (1981) (quoting Willingham v. \nMorgan, 395 U.S. 402, 407 (1969)). \n",
"12-11\nIV. WHO DETERMINES WHETHER TO AUTHORIZE TESTIMONY\nA. Delegation Order 11-2 – Cases Other than Tax Court Cases\nDelegation Order 11-2, dated June 15, 2004, identifies IRS and Chief Counsel \nofficials who may authorize disclosures of returns and return information that are \nconfidential pursuant to section 6103, but which may nonetheless be disclosed \npursuant to exceptions as provided by the Code. I.R.S. Deleg. Order 11-2 (Rev. \n17), IRM 1.2.49. It also contains tables that identify IRS and Chief Counsel \nofficials who may authorize (i.e., approve or deny) testimony and production of \nany documents when requested or demanded by any subpoena, notice of oral \ndeposition, notice of written interrogatory, or other order of a court, administrative \nagency, or other authority, pursuant to Treas. Reg. §§ 301.9000-1 to 301.9000-7. \nThese tables also identify the IRS and Chief Counsel employees who are to \nprepare testimony authorization documents and should be used in conjunction \nwith IRM 11.3.35, Requests and Demands for Testimony and Production of \nDocuments. \nB. General Counsel Order No. 4 – Tax Court Cases\nGeneral Counsel Order No. 4 delegates to the Chief Counsel the authority to \ndetermine whether to permit testimony and production of records in response to \na request, subpoena, or other order of the Tax Court. I.R.S. Gen. Couns. Order \nNo. 4 (Jan. 19, 2001); see also IRM 11.3.35.6(5). This authority has been \nredelegated to the Area Counsel. See IRM 11.3.35.6(6). \nV. COLLECTING THE NECESSARY INFORMATION \nGenerally, in preparing an authorization for a present or former IRS employee or \ncontractor to testify or produce records in response to a request or demand for records \nor information, it will be necessary to ascertain the following facts in addition to the \ncaption of the litigation, the nature of the litigation, and the court (or deposition) location: \nA. the return date of the request or demand; \nB. the name, title, and post-of-duty of the IRS employee or contractor upon \nwhom the request or demand was made; \nC. on whose behalf and by whom the request or demand was served; \nD. the nature of the testimony or documents subject to the request or demand; \nE. whether the request or demand would require the disclosure of information \nthat would identify, or tend to identify, a confidential informant, tax treaty \n(convention) information, or would require the release of other sensitive \ninformation;\n",
"12-12\nF. in the case of tax information, whether the party requesting or demanding the \ninformation is entitled to it under any of the provisions of section 6103; \nG. whether the request or demand would require the disclosure of information \nthat would seriously impair federal tax administration; \nH. whether there is an open civil or criminal tax investigation and, if so, the IRS \nfunction that has jurisdiction over the investigation; \nI. the availability or feasibility of producing the information or testimony sought, \ni.e., time limits and volume or format of documents; \nJ. whether a declaration by an IRS officer, employee, or contractor under \npenalty of perjury pursuant to 28 U.S.C. § 1746 would suffice in lieu of \ndeposition or trial testimony; \nK. whether deposition or trial testimony is necessary in a situation in which IRS \nrecords may be authenticated under applicable rules of evidence and \nprocedure; and \nL. whether IRS records or information are available from other sources. \nIRM 11.3.35.10(1); 11.3.35.12(1) and (2). \nVI. DETERMINING WHETHER EMPLOYEES SHOULD BE ALLOWED TO TESTIFY \nAND WHAT RECORDS MAY BE DISCLOSED \nA. Statutory Considerations\nThe Code, principally through section 6103, governs all disclosures of returns \nand return information. If it is apparent from the content of the request or \ndemand that section 6103 would not permit disclosure of the desired information, \nthe individual who served the request or demand should be contacted in an effort \nto get it withdrawn. In addition, section 6110 pertains to the disclosure of written \ndeterminations (rulings, determination letters, technical advice memoranda, and \nChief Counsel advice) and related background file documents. Section 6104 \nrequires disclosure of certain information concerning exempt organizations and \npension plans. Section 4424 governs the disclosure of wagering tax information. \nSection 6105 governs the disclosure of tax convention information. \nThe Privacy Act, 5 U.S.C. § 552a, also dictates the extent of permissible \ndisclosure of IRS records maintained and accessed by an individual’s name or \npersonal identifier, other than returns and return information (e.g., personnel \nrecords). The routine use (5 U.S.C. § 552a(b)(3)) and court order (5 U.S.C. \n",
"12-13\n§ 552a(b)(11)) provisions of the Privacy Act are consulted most frequently in \nconnection with requests or demands for testimony or production of these \n(nontax) IRS records. See Chapter 11. \nB. Confidential Sources\nInformation that would directly or indirectly reveal the identity of a person who \nsupplied information to the government under express assurances of \nconfidentiality or in circumstances from which those assurances may reasonably \nbe inferred may be protected by what is commonly referred to as the \"informant \nprivilege.\" Information withheld from disclosure pursuant to this privilege is \nbroader than, and not to be confused with, information relating to the term \n“confidential informant” as defined in the Criminal Investigation section of the \nIRM. See IRM 9.4.2.5. \nAlthough originally applied in the context of criminal proceedings, see Roviaro v. \nUnited States, 353 U.S. 53 (1957), this privilege is also applicable in civil cases. \nWestinghouse Elec. Corp. v. City of Burlington, Vt., 351 F.2d 762, 769-70 (D.C. \nCir. 1965). See also Holman v. Cayce, 873 F.2d 944, 946-47 (6th Cir. 1989) \n(where the informant was neither a witness nor an active participant in the \nconduct which gave rise to the civil cause of action, the party seeking to compel \ndisclosure of the identity of a confidential government informant shoulders a \nformidable burden in establishing a justification for overriding the privilege); Dole \nv. Local 1942, IBEW, 870 F.2d 368, 372-73 (7th Cir. 1989) (the privilege will not \nyield to permit a mere fishing expedition, nor upon bare speculation that the \ninformation may possibly prove useful). A court will look to the particular \ncircumstances, including balancing the public interest in effective law \nenforcement with the public interest in disclosing the identity of anyone whose \ntestimony would be relevant and helpful or is essential to a fair determination of a \ncase, to determine whether the privilege should be applied. See McCray v. \nIllinois, 386 U.S. 300, 312-14 (1967); United States v. Panton, 846 F.2d 1335, \n1336 (11th Cir. 1988). \nThe IRS will consider dismissing a case or will take sanctions rather than \nrevealing the identity of an informant. Section 7623 and Treas. Reg. § 301.7623-\n1, which provide for rewards for information relating to violations of internal \nrevenue laws, provide that no unauthorized person shall be advised of the \nidentity of the informant. CCDM 35.4.6.3.3.1(5) states that the IRS will not reveal \nthe identity of confidential informants without their consent. In criminal \ninvestigations, IRM 9.4.2.5.9 provides for maximum security and disclosure of \nthe identity of informants only to authorized persons. \nC. Investigatory Files Privilege \nThe law enforcement investigatory files privilege is a qualified common law \nprivilege to prevent \"the harm to law enforcement efforts which might arise from \n",
"12-14\npublic disclosure of . . . investigatory files.\" Raphael v. Aetna Cas. and Sur. Co.,\n744 F. Supp. 71, 74 (S.D.N.Y. 1990) (quoting Black v. Sheraton Corp., 564 F.2d \n531, 541 (D.C. Cir. 1977)). Law Enforcement Manual (LEM) material containing \ntolerances and criteria (e.g., dollar amount limitation on prosecution or collection) \nmay be subject to this privilege. If a request or demand seeks LEM material, the \nclassifying function must decide if the material is still LEM material. If not, it \nshould be declassified and produced, unless subject to another privilege or \nstatutory bar to production. If, however, the function decides to resist production, \nthe privilege should be invoked. If a court ultimately orders production, the \nclassifying function should decide whether to produce with an appropriate \nprotective order. See United States v. Moriarty, No. 67-C-244, 1969 U.S. Dist. \nLEXIS 12657, at *1 (E.D. Wis. Jan. 3, 1969). If, however, the decision is made \nnot to produce the LEM material in spite of the court order, the Service must \nconsider dismissing the case or taking sanctions. \nD. Other Privileges\nUnited States v. Elsass, No. 2:10-cv-00336, 2012 WL 1409624 (S.D. Ohio, \nApril 23, 2012). A motion for protective order is appropriate when employees are \nbeing asked about their personal views with respect to policy matters because \nsuch personal views are irrelevant to the underlying issue of whether taxpayers \nwere in violation of the tax law. Moreover, the deliberative process privilege \nprotects communications that are part of the decision-making process of a \ngovernmental agency. See Chapter 10. \nE. Subpoenas for Depositions of High-Ranking Officials\nGenerally, the Service should move to quash subpoenas for deposition of high-\nranking officials on grounds that the discovery sought would be burdensome and \noppressive. \n1. As a general principle, a party can conduct the deposition of any \nother person who possesses information relevant to a claim or \ndefense. Fed. R. Civ. P. 26(b)(1). The Supreme Court \napproved an exception to this rule as it applies to high-ranking \npublic officials in United States v. Morgan, 313 U.S. 409, 422 \n(1941). The Morgan doctrine recognizes that, left unprotected, \nhigh-ranking government officials would be inundated with \ndiscovery obligations involving scores of cases where the public \nofficial would have little or no personal knowledge of material \nfacts. Left unchecked, the litigation-related burdens placed upon \nthem would render their time remaining for government service \nsignificantly diluted or completely consumed. Morgan has come \nto stand for the notion that, as for high-ranking government \nofficials, their thought processes and discretionary acts will not \nbe subject to later inspection under the spotlight of deposition. \n",
"12-15\nDecision makers essentially enjoy a mental process privilege. In \nre United States (Reno), 197 F.3d 310, 313-14 (8th Cir. 1999); \nUnited States v. 11,950 Acres of Land (In re FDIC), 58 F.3d \n1055, 1060 (5th Cir. 1995); In re United States (Kessler), 985 \nF.2d 510, 512-13 (11th Cir. 1993), cert. denied, 510 U.S. 989 \n(1993); Simplex Time Recorder Co. v. Sec’y of Labor, 766 F.2d \n575, 586 (D.C. Cir. 1985); Kyle Eng’g Co. v. Kleppe, 600 F.2d \n226, 231-32 (9th Cir. 1979). This limited immunity from \ndiscovery is justified on the grounds that these officials must be \nallowed the freedom to perform their duties without the constant \ninterference of the discovery process. \n2. Courts may permit depositions when a high-ranking official has \nrelevant, first-hand knowledge of factual matters material to the lawsuit \nor when there are adequate grounds, not apparent in the administrative \nrecord, to suspect bad faith or improper behavior of the decision maker. \nSee, e.g., Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. \n402, 420-21 (1971) (subsequent history omitted); Alexander v. FBI, 186 \nF.R.D. 1, 5 (D.D.C. 1998); Sokaogon Chippewa Cmty. v. Babbitt, 929 \nF. Supp. 1165, 1176 (W.D. Wis. 1996); Cmty. Fed. Savings & Loan v. \nFed. Home Loan Bank Bd., 96 F.R.D. 619, 621 (D.D.C. 1983). \n3. There is a split in the circuits concerning whether government officials \nmay seek mandamus to compel a district court judge to withdraw an \norder permitting deposition testimony or must first find themselves in \ncontempt for failing to comply with such an order and seeking an \nimmediate appeal thereof. Compare In re United States (Reno), 197 \nF.3d at 313-14 and 11,950 Acres of Land (In re FDIC), 58 F.3d at 1060 \n(mandamus available), with In re Kessler, 100 F.3d 1015, 1017-18 \n(D.C. Cir. 1996) (order compelling deposition not final, and thus court \nlacks jurisdiction to consider agency official’s petition for mandamus). \nF. Expert Witnesses\nRequests for IRS employees as expert witnesses will normally be denied in \ncases in which neither the IRS nor its employees are a party, or in cases not \narising from IRS actions, unless the IRS has an interest in the issue and the \noutcome of the litigation. See 5 C.F.R. ' 2635.805; IRM 11.3.35.11(11). Note, \nhowever, that former employees need not obtain a testimony authorization for \nexpert or opinion testimony if the testimony involves general knowledge (such as \ninformation contained in published procedures of the IRS or the IRS Office of \nChief Counsel) gained while the former IRS officer, employee or contractor was \nemployed or under contract with the IRS. Treas. Reg. § 301.9000-3(b). \n",
"12-16\nG. Agency Resources, Impartiality, etc.\nAlthough it is not entirely accurate to say that the Service may deny a discovery \nrequest solely on the basis of administrative burden or limited agency resources, \nthere is a line of cases holding that a party seeking discovery from an agency \n(that is not a party to its lawsuit) must comply with the procedures set forth in that \nagency’s regulations. When a requester does not comply, it is perfectly \nappropriate for an agency to cite to the burden of lending its human and other \nresources to private litigation in which it has no vital interest, and it is likely that \nthe agency would prevail in a lawsuit brought under the APA challenging its \ndecision to resist discovery. In these cases, much of how to approach a court \ndepends on the precise posture of a discovery request – whether it comes from a \nstate or federal court; whether it is an informal request or pursuant to a \nsubpoena; or whether the issue arises on a motion to compel, an APA lawsuit or \nan order of contempt. \nIf the Service routinely permits employees to testify in private litigation, less time \nwill be available for them to perform official duties. Several agencies have \nsuccessfully argued that particular employees should not have to testify in private \nlitigation because of these \"resource\" considerations. In Moore v. Armour \nPharm. Co., 927 F.2d 1194, 1197-98 (11th Cir. 1991), the court upheld the \nCenter for Disease Control's decision not to let a researcher testify because the \nagency had received so many requests relating to AIDS litigation that it simply \ncould not grant all the requests and simultaneously carry on its governmental \nfunctions. Likewise, in Davis Enters. v. EPA, 877 F.2d 1181, 1186-87 (3d Cir. \n1989), the court upheld the EPA's refusal to provide an employee as a fact \nwitness in a lawsuit concerning liability for an underground gasoline spill based in \npart on the agency’s argument that compliance with a subpoena would put a \nstrain on agency resources. \nAssuming the court has jurisdiction, resource limitations most likely cannot be the \nsole basis upon which to resist discovery requests. Although “[t]he policy behind \nprohibition of testimony is to conserve governmental resources where the United \nStates is not a party to a suit, and to minimize governmental involvement in \ncontroversial matters unrelated to official business,” Reynolds Metals Co. v. \nCrowther, 572 F. Supp. 288, 290 (D. Mass. 1982), an agency’s Touhy \nregulations do not, by themselves, create a substantive basis upon which to \nrefuse discovery requests. An agency’s decision not to authorize an employee’s \ntestimony or production of documents on the sole basis of conservation of \nagency resources is evaluated against how well a plaintiff demonstrates the \nnecessity of the information sought from the government, see, e.g., Wade v. \nSinger Co., 130 F.R.D. 89, 92 (N.D. Ill. 1990), and whether the plaintiff cannot \nobtain the information sought through alternative means, such as certified \ndocuments. \n",
"12-17\nVII. PREPARING AND COORDINATING THE AUTHORIZATION \nA. Preparing the Authorization \nBased on the facts developed and legal considerations noted above, a written \nauthorization should be prepared setting forth the scope of the proposed \nauthorization, even if authority is denied. To the extent possible, it should be \nspecific as to the extent and limitations upon disclosure, including, as necessary, \nnames, tax periods, and classes of tax or returns. It should also include the \noperative facts upon which the authorization is premised (i.e., a description of the \ntestimony and production sought, and the nature of the testimony and production \nauthorized). Unless otherwise approved, the authorization instructions should \nexpressly prohibit testimony concerning the following matters, where applicable: \n(1) unrelated third-party returns and return information; (2) information that would \ntend to identify a confidential informant; (3) wagering tax information as defined \nin section 4424; (4) tax convention information as defined in section 6105; and \n(5) grand jury information subject to Federal Rules of Criminal Procedure 6(e). \nSee CCDM Exhibit 34.12.1-32 and Appendix, for examples of testimony \nauthorizations for current employees. See Appendix for an example of a \ntestimony authorization for former employees. \nRefer to Delegation Order 11-2 and its Exhibit 1.2.49-2 for determination as to \nwhich function is responsible for preparing and authorizing testimony or \nproduction of documents. I.R.S. Deleg. Order 11-2 (Rev. 17), IRM 1.2.49.3. \nB. Coordinating the Authorization\n1. Cases Referred to DOJ\nFor cases referred to DOJ, coordination entails soliciting the \nrecommendation of the Chief Counsel attorney assigned to the case, \ndiscussions with the DOJ attorney handling the case, and with the \ndisclosure officer servicing the IRS officer’s or employee’s geographic \narea. The nature and extent of the coordination is determined on a case-\nby-case basis. \n2. Other Cases \nChief Counsel attorneys are primarily expected to assure the accuracy of \nthe facts as developed and determine whether the proposed authorization \nis legally sound. In certain cases, it is necessary to coordinate with DOJ \nor the Office of the U.S. Attorney where a motion to quash and/or motion \nfor protective order may be sought or if the employee upon whom the \nrequest or demand was made may require legal assistance and guidance \nin court or at deposition. In cases where legal assistance and guidance is \nnecessary or helpful, Chief Counsel and DOJ attorneys should agree in \n",
"12-18\nadvance which agency is best suited, under the circumstances of the \ncase, to accompany the employee. \nVIII. COURT ORDERS AND CONTEMPT \nA. Court Orders to Disclose\n1. Section 6103 governs disclosure of returns and return information. \nWith one notable exception, see paragraph 2 below, it provides the \nexclusive means for gaining access to federal tax information. Lake v. \nRubin, 162 F.3d 113, 115-16 (D.C. Cir. 1998), cert. denied, 526 U.S. \n1070 (1999); Cheek v. IRS, 703 F.2d 271, 271-72 (7th Cir. 1983). \nSection 6103 does authorize certain court-ordered disclosures. See\nI.R.C. § 6103(h)(4)(D), (i)(1)(A), (i)(4)(A)(ii), (i)(5)(A), and (i)(7)(C). \nNevertheless, section 6103 does not provide for disclosure beyond that \nspecifically provided for in Title 26 and does not permit a court to create \njudicial exceptions to the general prohibition against disclosure \nestablished by the statute. Olsen v. Egger, 594 F. Supp. 644, 647 \n(S.D.N.Y. 1984); Dowd v. Calabrese, 101 F.R.D. 427, 438-39 (D.D.C. \n1984). \n2. In all criminal cases, the government is under a constitutional obligation \nto disclose, upon the defendant’s request, exculpatory evidence \nmaterial to either guilt or punishment. Brady v. Maryland, 373 U.S. 83, \n87-88 (1963). This includes evidence that may be used to impeach a \ngovernment witness. Giglio v. United States, 405 U.S. 150, 153-55 \n(1972). Returns and return information constituting exculpatory \nevidence existing in the government’s files used for purposes of \nprosecuting a federal tax administration crime may be disclosed in a \ncriminal tax proceeding pursuant to a constitutional obligation to \ndisclose it to a criminal defendant. As a result, the IRS generally \ncomplies with Brady-type court orders requiring disclosure. IRM \n11.3.35.14. In these situations, the United States should request the \ncourt to conduct an in camera review of any third-party return \ninformation prior to disclosure to defendant. If, after in camera review, \nthe court rules that the Constitution requires information to be provided \nto the defendant, the United States should request a protective order \nthat also imposes upon the parties conditions restricting the use of the \ninformation solely to the instant case, and preventing dissemination by \nany person in any manner outside the instant proceeding. For sample \nlanguage of an appropriate protective order, see United States v. \nMoriarty, No. 67-C-244, 1969 U.S. Dist. LEXIS 12657, at *1 (E.D. Wis. \nJan. 3, 1969). \n",
"12-19\nB. Court-Ordered Consents to Disclose\nWhen the court orders a taxpayer to consent to the disclosure of tax information, \nthose consents will generally be accepted by the IRS, subject to the normal \nlimitations and restrictions of section 6103(c). See Chapter 2. \nC. Contempt \nConsult Procedure and Administration (P&A), Branches 6 or 7 in any case in \nwhich an employee's refusal to testify or produce records results or may result in \nan order to show cause or an order of contempt. P&A is responsible for \ncoordination with DOJ in these matters. CCDM 34.9.1.5. \n",
"13-1 \nCHAPTER 13 \nPART I: PUBLIC INSPECTION OF WRITTEN DETERMINATIONS \nI.R.C. § 6110 \nNote: This chapter is intended to provide the legal framework, not the \nprocedures, for processing section 6110 material. Instructions for processing \nsection 6110 material are on the Office of Chief Counsel website and in CCDM \n37.1.1. \nI. BACKGROUND \nHistorically, the National Office of the IRS provides written advice to taxpayers on the \ntreatment of specific transactions, generally known as private letter rulings (PLRs). The \nfirst several revenue procedures issued by the IRS each year, published in the Internal \nRevenue Bulletin, contain detailed instructions on how a taxpayer is to submit requests \nto the IRS for PLRs and other written advice, such as technical advice memoranda \n(TAMs) or determination letters. \nIn the early 1970s, two separate United States Courts of Appeals determined that PLRs \nwere subject to the Freedom of Information Act (FOIA) and had to be disclosed, thereby \nrejecting the government’s argument that these written products were tax returns \nprotected by FOIA exemption 3 in conjunction with section 6103 as then written. The \ntwo courts differed, however, in their treatment of TAMs. The D.C. Circuit ruled that \nTAMs were a part of a tax return and therefore exempt from disclosure under FOIA, Tax \nAnalysts & Advocates v. IRS, 505 F.2d 350, 355 (D.C. Cir. 1974), whereas the Sixth \nCircuit ruled that TAMs should be open to inspection under FOIA. Fruehauf Corp. v. \nIRS, 522 F.2d 284, 290 (6th Cir. 1975), judgment vacated by IRS v. Fruehauf Corp.,\n429 U.S. 1085 (1975), aff’d, 566 F.2d 574 (6th Cir. 1977) (for reconsideration in light of \nthe Tax Reform Act of 1976). \nOne of the primary arguments raised by the plaintiffs in both cases was that the IRS \nwas developing a secret body of law that was available to only a few practitioners. \nGenerally, requests for PLRs were submitted by accounting firms or law firms on behalf \nof their clients. When the PLR was issued, the firm would retain a copy for historical \npurposes, thereby developing a library of issued determinations. This allowed the firm \nto have insight into the IRS’s interpretation of the law on a particular matter, as \ndemonstrated by the legal analyses within the PLRs or TAMs. These documents and \nthe insights they provided were not available to the general public, small firms or sole \npractitioners. Another argument was that, because the entire process was secret, there \nmay have been third parties attempting to influence the IRS’s determinations to obtain \noutcomes favorable to the taxpayer. See General Explanation of the Tax Reform Act of \n1976, H.R. 10612, Pub. L. No. 94-455 (JCS-33-76) (J. Comm. Print 1976).\nIn December 1974, the IRS issued proposed procedural rules that were intended to make \nPLRs and TAMs open to public inspection. The proposed rules set up a framework \nwhereby the full text version, including taxpayer identifying information but excluding trade \n",
"13-2 \nsecrets and matters pertaining to national defense or foreign policy, would be open to \npublic inspection. Id. at 303. The proposed rules were not implemented because of \nsubstantial public comments against the notion as well as comments from DOJ indicating \nthat the rules might be contrary to other principles of law. \nIn 1976, when the proposed section 6110 legislation was considered by Congress, the \ndebate centered primarily on the relationship between the necessity to protect taxpayer \nprivacy and the need for openness in government, i.e., to eliminate the perceived \ndevelopment of a secret body of law and to assure that there was no undue influence \nbeing used in the PLR process. See generally Public Inspection of IRS Private Letter \nRulings, Hearing Before the Subcomm. on Admin. of the Internal Revenue Code of the \nComm. on Fin. United States Senate, 94th Cong. 5 (1975) (remarks of Sen. Haskell). \nThe balance reached by Congress was to make written determinations (i.e., PLRs, \nTAMs, and determination letters) available to the public, but only after the taxpayer to \nwhom it pertained was notified of the IRS’s intent to disclose the document: \n \nBefore any written determination requested after October 26, 1976, is \nmade available for public inspection, any person who receives a ruling or \ndetermination letter or to whom a technical advice memorandum pertains \nmust be personally notified in writing that public disclosure is about to \noccur . . . . Such person will then have 60 days within which to discuss \nwith the IRS the information to be made available for public inspection and \nto bring a suit to restrain disclosure . . . . Such 60-day period will start on \nthe date the IRS actually mails a notice to the person to whom the \ndetermination pertains. \nGeneral Explanation of the Tax Reform Act of 1976, H.R. 10612, Pub. L. 94-455 (JCS-\n33-76), at 305-06 (J. Comm. Print 1976). \nIn 1997, the D.C. Circuit held that Field Service Advice Memoranda (FSAs), even \nthough they preceded the field office’s decision in a particular taxpayer’s case, \ncontributed to the development of the agency’s legal position on the matter, and as \nsuch, were statements of the agency’s policy. Accordingly, FSAs were not protected \nfrom disclosure by either the deliberative process or attorney-client privilege. Tax \nAnalysts v. IRS, 117 F.3d 607, 617-20 (D.C. Cir. 1997). \nOnce again, in response to a Tax Analysts suit, the 105th Congress was faced with the \nsame competing interests as the 94th Congress was faced with in 1975 and 1976: \nbalancing the public’s right to know against the individual taxpayer’s right to privacy.70\n70 Section 6110 of the Code, as amended by section 3509 of the Internal Revenue Service \nRestructuring and Reform Act of 1998, provides for the public inspection of National Office Chief \nCounsel advice or instruction to field IRS or field Counsel offices. Section 6110, as amended, \nresulted in the disclosure of a number of Counsel work products then being produced or as may be \nproduced in the future, such as Field Service Advice (FSAs), Service Center Advice (SCAs), \nTechnical Assistance (to the field), Litigation Guideline Memoranda (LGMs), (continued on next page) \n",
"13-3 \nThe conferees keenly recognized that the taxpayer’s right to privacy was extremely \nimportant: “[T]he privacy of the taxpayer who is the subject of the advice must be \nprotected. Any procedure for making such advice public must therefore include \nadequate safeguards for taxpayers whose privacy interests are implicated.” Bill Archer \net al., Conference Report on H.R. 2676, Internal Revenue Service Restructuring and \nReform Act of 1998, H.R. Rep No. 105-599, at 299 (1998). The conferees also \nrecognized that, because the Chief Counsel Advice (CCA) documents were subject to \nFOIA, there exists \nno mechanism by which taxpayers [could] participate in the administrative \nprocess of redacting their private information from such documents or to \nresolve disagreements in court . . . . [But] [t]here should be a mechanism \nfor taxpayer participation in the deletion of any private information. There \nshould also be a process whereby appropriate governmental privileges \nmay be asserted by the IRS and contested by the public or the taxpayer. \nId. By amending section 6110 to include CCA within the scope of that section, \nCongress struck a balance “designed to protect taxpayer privacy while allowing the \npublic inspection of these documents . . . . ” Id.\nSection 3509 of Pub. L. No. 105-206, 112 Stat. 685, 771-74 (1998) expanded section \n6110 to cover CCA, which includes FSAs, litigation guideline memoranda (LGMs), \nservice center advice (SCAs), tax litigation bulletins, criminal tax bulletins, general \nlitigation bulletins, and any other written advice prepared by any National Office Chief \nCounsel component and issued to Counsel or IRS field office employees that conveys a \nlegal interpretation or Counsel position or policy with respect to a revenue provision. (A \ntransition rule for certain CCA issued between 1986 and the October 22, 1998, effective \ndate was also set forth in section 3509, Pub. L. No. 105-206, 112 Stat. 685, 771-74 \n(1998).) \nIn December 2003, the D.C. Circuit ruled in Tax Analysts v. IRS, 350 F.3d 100, 104 \n(D.C. Cir. 2003), that letters denying tax-exempt status issued to certain organizations \napplying for that status, and the letters revoking the tax-exempt status of existing \nexempt organizations, were “written determinations” within the meaning of section \n6110(b)(1)(A).71\nand various Bulletins. For purposes of section 6110, as amended, these work products will be \ndefined as Chief Counsel Advice (CCAs). \nBecause there is no third-party input into the CCA process, the concern for undue influence, as \nexpressed by Senator Haskell with respect to the private letter ruling process, is absent. Therefore, \nthe balance is between the general public’s right to know how the agency conducts its business \nversus the taxpayer’s right to privacy and confidentiality of its returns and return information. \n71 The Service had declined to make these letter rulings available for public inspection because they \nfell within the exclusion of section 6110(l)(1), which provides that “this section shall not apply to any \nmatter to which section 6104 . . . applies.” Because section 6104 (continued on next page) \n",
"13-4 \nIn 2006, the D.C. Circuit held in Tax Analysts v. IRS, 495 F.3d 676, 681 (D.C. Cir. \n2007), that e-mails written by National Office attorneys containing interpretations of \nrevenue provisions and transmitted to field IRS or Counsel employees also constituted \nwritten determinations subject to the public inspection requirements of section 6110(i). \nII. GENERAL CONCEPTS\nA. General Rule - Public Inspection\nThe general rule concerning the public inspection of written determinations is set \nforth in section 6110(a), which provides: \nExcept as otherwise provided in this section, the text of any written \ndetermination and any background file document relating to such \nwritten determination shall be open to public inspection at such \nplace as the Secretary may by regulations prescribe. \nI.R.C. § 6110(a). \nB. Definitions\n1. “Written determination” means a ruling, determination letter, technical \nadvice memorandum, or CCA (including e-mail CCA). \nI.R.C. § 6110(b)(1)(A). Except that a written determination does not\ninclude any matter pertaining to an advanced pricing agreement, a \nclosing agreement entered into pursuant to section 7121, or the \nbackground information pertaining to an advanced pricing agreement \nor closing agreement. I.R.C. §§ 6110(b)(1)(B), 6103(b)(2)(C), (D). \n2. “Reference Written Determination” is any written determination which \nthe Commissioner determines has significant reference value. For \nexample, any written determination that the Commissioner decides to \nbe the basis for a published revenue ruling is a reference written \naddressed the manner in which tax exemption matters were to be disclosed (or not), the Service had \npromulgated Treas. Reg. §§ 301.6104(a)-1(i) and 301.6110-1(a) to the effect that denial and \nrevocation letter rulings were not subject to the public inspection provisions of either section 6104 or \nsection 6110. \nUntil the Tax Analysts decision, the letter rulings were treated as the confidential return information of \nthe organizations to which they related and were exempt from public access under section 6103 and \nFOIA exemption 3. The D.C. Circuit decision invalidated those particular paragraphs of the \nregulations, thereby requiring that the IRS make the EO letters available for public inspection \npursuant to section 6110.\n",
"13-5 \ndetermination until the revenue ruling is made obsolete, revoked, \nsuperseded, or otherwise held to have no effect. \n3. “Background file document” includes the request for the written \ndetermination, any written material submitted in support of the request \nor supplemental material submitted in support of the request, and any \ncommunication, written or otherwise, between the IRS and persons \noutside the IRS in connection with the written determination before \nissuance; except for communications between the IRS and DOJ \nrelating to a pending civil or criminal case or criminal investigation. \nI.R.C. § 6110(b)(2). \nNote: Documents in the written determination file that do not meet \nthe definition of “background file document” retain their identity as \nconfidential return information. I.R.C. § 6103(b)(2)(B). For \nexample, drafts of the document, any e-mail or notes of a telephone \ncall between the National Office attorney and the examining \nrevenue agent about the transaction and the effect on another tax \nyear would remain confidential return information (because it is \ninformation collected with respect to the taxpayer’s potential \nliability) because it is not available for public inspection under \nsection 6110. \n4. “CCA” is any written advice or instruction, under whatever name or \ndesignation, prepared by any National Office component of the Office \nof Chief Counsel which– \n(a) is issued to field or service center employees and \n(b) conveys: \n (i) any legal interpretation of a revenue provision; \n(ii) any IRS or Chief Counsel position or policy with regard \nto a revenue provision; or, \n(iii) any interpretation of state law, foreign law, or other \nfederal law relating to the assessment or collection of \nany liability under a revenue provision. I.R.C. \n§ 6110(i)(1)(A). \nNote: For purposes of determining the authorship of CCA, all \nAssociate Offices and the Chief Counsel Division Counsel \nHeadquarters Office is considered National Office. \n",
"13-6 \n5. “Revenue provision” means any existing or former internal revenue \nlaw, regulation, revenue ruling, revenue procedure, or other published \nor unpublished guidance, or tax treaty, either in general or as applied to \nspecific taxpayers. I.R.C. § 6110(i)(1)(B). \n6. “Taxpayer-specific Chief Counsel advice” means a CCA written \npertaining to a specific taxpayer or group of specific taxpayers. \nI.R.C. § 6110(i)(4)(B). Even if the written determination does not name \nthe taxpayer, if the facts are derived from and describe a specific \ntaxpayer’s case, it is a taxpayer-specific CCA.72\n7. “Nontaxpayer-specific Chief Counsel advice” means a CCA not \npertaining to any specific taxpayer or group of specific taxpayers, but \nrather, addresses a general issue. I.R.C. § 6110(i)(4)(A). \nC. Timing of Disclosures\nGenerally, written determinations are available for public inspection between 75 \nand 90 days after the written determination was issued to the recipient. \nI.R.C. § 6110(g). \nWith respect to PLRs, TAMs, and taxpayer-specific CCA, the time period begins \nafter the notice of intent to disclose is mailed to the taxpayer. I.R.C. \n§ 6110(i)(4)(B). Nontaxpayer-specific CCA must be made available for public \ninspection within 60 days after issuance. I.R.C. § 6110(i)(4)(A)(ii). \nNote: There is no need to send a notice to the taxpayer if the decision is \nto withhold the taxpayer-specific CCA from public disclosure because it is \nexempt in its entirety, e.g., a document subject to the attorney work \nproduct doctrine. \nWhere an action has been brought to either restrain or compel disclosure, the \nwritten determination will be made available for public inspection within 30 days \nafter the court order is final. I.R.C. § 6110(g)(1)(B). The court may order an \nextension or postponement if necessary. I.R.C. § 6110(g)(2). \nThe public availability of a written determination may be postponed for up to 90 \ndays at the written request of the party, or the party’s representative, to whom \nthe written determination pertains if a relevant transaction is not complete at the \ntime the written determination is issued. I.R.C. § 6110(g)(3). If the transaction is \nnot final after the additional 90 days, the person to whom the written \ndetermination pertains may obtain (up to) an additional 180 days delay in \n72 Note however, that for purposes of email CCA only, if the CCA contains only the identifying details \n(e.g., names, TINs, tax years, dollar amounts) we routinely redact, then the email is not treated as \ntaxpayer-specific. \n",
"13-7 \navailability, but only if the person can establish that good cause exists for the \nadditional delay. The fact that the transaction in question was not completed by \nthe end of the initial 90-day delay is not, by itself, good cause for the additional \ndelay. I.R.C. § 6110(g)(4). \nExamples: \n1. A corporate taxpayer finds itself the possible target of a hostile \ntakeover. The taxpayer enters into merger negotiations with a “white \nknight” corporation to obtain a more favorable treatment for the \nstockholders. Because written determinations are sanitized to prevent \na member of the general public (not an “insider” i.e., someone familiar \nwith the taxpayer) from identifying the taxpayer if release of the written \ndetermination could allow the hostile corporation to identify the \ntaxpayer and any potential weaknesses in the transaction with the \n“white knight” corporation, the hostile corporation could use the \ninformation to interfere with the negotiations and/or the merger \ntransaction. Using the same facts, if the taxpayer could be identified by \nthe public through the disclosure of the redacted written determination, \nrelease of the IRS’s advice might tip off investors, affect the stock \nmarket prices and trigger questions of insider trading. Either of these \npossibilities would constitute “good cause” for an additional 180-day \ndelay because they would interfere with the completion of the \ntransaction. \n \n2. “Good cause” is not shown if the person to whom the written \ndetermination pertains asks for a reconsideration of an adverse \ndetermination and requests delay of disclosure pending the \nreconsideration; if the person to whom the written determination \npertains requests delay of disclosure pending the outcome of litigation; \nor, if the person to whom a written determination pertains requests an \nadditional delay solely on the basis that the transaction is not yet \ncompleted. \nSpecial Rules: \n1. The IRS is not required to make available for public inspection any \nwritten determination or background file document of any matter which \nis the subject of a civil fraud or criminal investigation or jeopardy or \ntermination assessment until after the action relating to the written \ndetermination is completed, or– \n2. Any written determination or related background file document that \nrelates solely to approval of the Secretary of any adoption or change \nof– \n(i) the funding method or plan year of a plan under section 412; \n",
"13-8 \n(ii) a taxpayer’s annual accounting period under section 442; \n(iii) a taxpayer’s method of accounting under section 446(e); or \n(iv) a partnership’s or partner’s taxable year under section 706. \nNote, however, the IRS will make available for public inspection these \nitems upon written request after the date the written determination would \nhave been available for public inspection but for these provisions. \nI.R.C. § 6110(g)(5). \nD. Exemptions from Disclosure – Other than Chief Counsel Advice\nWritten determinations or background file documents, other than CCA, are \nsanitized or redacted according to the standards set forth in section \n6110(c)(1)-(7). \n1. The names, addresses, and other identifying details of the person to \nwhom the written determination pertains, and of any other person \n(other than a third-party contact described in section 6110(d)(1)) must \nbe redacted. Identifying details are those items of information which \nwould permit a member of the public to identify the person with \ninformation that is publicly available, e.g., through LEXIS or Westlaw, \nInternet or other search vehicles, court-filed documents, documents \nfiled with other agencies such as the SEC and available for public \ninspection (e.g., 10-K filings), state corporate databases, state tax rolls, \netc;\n2. Any information designated by Executive Order to remain secret \n in the interest of national security or foreign policy; \n3. Any information specifically exempt from disclosure by any statute \n other than Title 26; \n4. Trade secrets, commercial or financial information obtained from \n a person and privileged or confidential; \n5. Information which, if disclosed, would constitute a clearly \n unwarranted invasion of personal privacy; \n6. Information related to the examination, operation, or regulation \n of a financial institution; \n7. Geological or geophysical data concerning wells. \n",
"13-9 \nThe information designated in these paragraphs parallel FOIA exemptions \n(1)-(4), (6), (8) and (9). Id.\nE. Exemptions from Disclosure – Chief Counsel Advice \nThe conference report on H.R. 2676, Internal Revenue Service Restructuring \nand Reform Act of 1998, Pub. L. No. 105-206, 112 Stat. 685 (1998), added \nspecial rules for redactions from CCA to section 6110 at paragraph (i)(2). \nAlthough the amendment kept intact the provisions of section 6110(c)(1), \npertaining to the deletion of identifying details, it specifically provided that all of \nthe FOIA exemptions set forth in 5 U.S.C. § 552(b) and (c) apply to CCA. \nAccordingly, several additional FOIA exemptions are available to withhold \ninformation in CCA from release to the public. \nFor a detailed explanation of these exemptions, see Chapter 9. \nIII. DISPUTES RELATING TO DISCLOSURE \nA. Request for Additional Deletions\n1. Administrative Remedies \nTreasury Reg. § 301.6110-5(b)(1), drafted to implement section \n6110(f)(2)(B), permits a person to whom a written determination pertains, \nor to whom a background file document relates, to request that additional \ninformation be withheld from the document scheduled for release to the \npublic. These administrative provisions to restrain disclosure are also \navailable to a successor, or other person authorized to act on behalf of the \ntaxpayer or any individual who has a direct interest in maintaining the \nconfidentiality of the written determination or background file document. \nRequests for additional deletions are addressed to the Chief, Disclosure & \nLitigation Support Branch, Legal Processing Division of Procedure and \nAdministration. The request should identify the additional information to \nbe withheld and provide a reason for the additional deletions. Generally, \nthe branch paralegal will contact the attorney who authored the written \ndetermination for his or her recommendation as to whether the additional \ndeletions are necessary. \nNote: Third-party contacts, as described in section 6110(d), cannot \nrequest deletion of their identities.73\n73 The legislative history of section 6110, when it was enacted in 1976, describes congressional \nconcerns that third parties were influencing the IRS’s decisions with respect to the PLRs. \nAccordingly, they added subsection (d) to section 6110 so the IRS would identify any contacts by third \nparties so the public would be aware of them. \n",
"13-10\n2. Judicial Remedies \nIf the IRS denies a request for additional deletions (whether in whole or in \npart), the person to whom a written determination pertains or background \nfile relates (or successor, or other person authorized by law to act on \nbehalf of such person), or that has a direct interest in maintaining the \nconfidentiality of the written determination or background file document \nmay file a petition in U.S. Tax Court to restrain disclosure. \nI.R.C. § 6110(f)(3)(A). These proceedings are referred to as Disclosure \nActions and the rules concerning these actions are found in Title XXII of \nthe Tax Court’s Rules of Practice and Procedure. The Tax Court identifies \nthese cases by adding a “D” to the docket number. The petition must be \nfiled within 60 days of the mailing of the notice of intention to disclose. \nI.R.C. § 6110(f)(3)(A) (flush language). The petition may be filed \nanonymously. I.R.C. § 6110(f)(3)(A). The Tax Court may provide for \nproceedings or portions of hearings, testimony, evidence, and reports may \nbe closed to the public in order to preserve the anonymity or privacy of \nany person. I.R.C. § 6110(f)(6). \nThe IRS must notify any person to whom a written determination or \nbackground file document pertains (unless that individual is the petitioner) \nof the filing of the petition to restrain disclosure within 15 days of receipt of \nthe petition. That individual may intervene in any proceeding pertaining to \nthe petition–anonymously, if so desired. I.R.C. § 6110(f)(3)(A). \nIf the requester has not received a response to a properly submitted \nrequest within 180 days, the requester may seek the judicial remedy \ndescribed above. I.R.C. § 6110(g)(4). \n3. Intervention \nIf a proceeding is commenced with respect to any written determination or \nbackground file document, the Secretary shall, within 15 days after notice \nof the petition is served on him, send notice of the commencement of such \nproceeding to all persons who are identified by name and address in such \nwritten determination or background file document. Any person to whom \nsuch determination or background file document pertains may intervene in \nthe proceeding–anonymously, if appropriate. If such notice is sent, the \nSecretary shall not be required to defend the action and shall not be liable \nfor public disclosure of the written determination or background file \ndocument, or any portion thereof, in accordance with the final decision of \nthe court. I.R.C. § 6110(f)(4)(B). \n",
"13-11\nB. Request for Additional Disclosures\n1. Administrative Remedies \nTreasury regulations describe the administrative remedies available to any \nperson seeking additional disclosure of any written determination or \nbackground file document. Treas. Reg. § 301.6110-5(d)(1). Requests for \nadditional disclosure are to be addressed to: Internal Revenue Service, \nAttention: CC:PA:T, Ben Franklin Station, Post Office Box 7604, \nWashington, DC 20044. If the request is solely for the identity, i.e., name, \naddress and Taxpayer Identification Number of the person to whom the \nwritten determination pertains, the IRS will inform the requester that the \ninformation will not be disclosed. \n2. Judicial Remedies \nOnce the requester seeking additional disclosure has exhausted the \nadministrative remedies, that individual can file a petition in Tax Court or \nfile a complaint in the U.S. District Court for the District of Columbia \nrequesting an order to compel disclosure of additional information in the \nwritten determination or background file document. I.R.C. § 6110(f)(4). \nNote: No petition or complaint may be filed under section 6110(f)(4) \nto seek the identity of a third-party contact. These actions must be \nbrought pursuant to section 6110(d)(3). \nC. Judicial Remedies for Violations of I.R.C. § 6110\nIf the IRS fails to make the appropriate redactions to a written determination \nunder section 6110(c), fails to provide a notice of intention to disclose required by \nsection 6110(i)(4)(B), or fails to follow the timing requirements of section 6110(g), \nthe recipient of a written determination or any person identified in the written \ndetermination may bring suit in the United States Court of Federal Claims. \nI.R.C. § 6110(j)(1). \nThis provision is the exclusive remedy for violations of section 6110 provisions. \nI.R.C. § 6110(j)(1)(B). \nIf the court determines that an IRS officer or employee willfully or intentionally \nfailed to delete material, or failed to provide timely notice or act in accordance \nwith the timing requirements of section 6110(g), the United States will be liable \nfor the actual damages or, at the least, statutory damages of $1000 as well as \nattorneys fees and costs of the action. I.R.C. § 6110(j)(2). \n",
"13-12\nIV. SPECIAL PROVISIONS\nA. Precedent\nDocuments made available for public inspection pursuant to section 6110 are not\nto be used or cited as precedent. I.R.C. § 6110(k)(3). Consequently, Counsel \nattorneys authoring written determinations should refrain from citing to previously \nreleased written determinations as support for their position. \nB. Items Not Covered by I.R.C. § 6110\nSection 6110 does not apply to any matter to which sections 6104 or 6105 apply. \nThe framework of section 6104 sets forth specific methods for the public to \ninspect certain documents related to the entities described therein. \nI.R.C. § 6110(l)(1). The documents available for public inspection under section \n6104 are not covered by section 6110. Any matter involving tax convention \ninformation, as defined by section 6105, is not covered by section 6110. Id.74\n74 In Tax Analysts v. IRS, 350 F.3d 100 (D.C. Cir. 2003), the D.C. Circuit held invalid portions of the \nsection 6104 and 6110 regulations that excluded from public inspection under both statutes written \ndeterminations denying or revoking tax exemption. Accordingly, the provisions of section 6110 do \napply to those matters. \n",
"13-13\nPART II: CONFIDENTIALITY OF INFORMATION ARISING UNDER \nTREATY OBLIGATIONS – I.R.C. § 6105 \nI. BACKGROUND \nHistorically, the IRS took the approach that information received from a foreign country \nconcerning the tax liability of a taxpayer was protected by FOIA exemption 3 in \nconjunction with a tax treaty between the United States and the foreign government. \nExemption 3 protects information that is specifically exempted from disclosure by \nstatute, provided that the statute \"requires withholding in such a manner so as to leave \nno discretion on the issue, or establishes particular criteria for withholding or refers to \nparticular types of matters to be withheld.\" 5 U.S.C. § 552(b)(3). The IRS argued that a \ntax treaty stood on equal footing with a statute, such that its secrecy clauses–which bar \nspecific information from disclosure–qualified under exemption 3. \nUnder the United States Constitution, Senate-ratified treaties have the same status as \nstatutory law. See Whitney v. Robertson, 124 U.S. 190, 194 (1888) (“By the \nconstitution, a treaty is placed on the same footing, and made of like obligation, with an \nact of legislation . . . . When the two relate, to the same subject, the courts will always \nendeavor to construe them so as to give effect to both, if that can be done without \nviolating the language of either.”); Pub. Citizen v. U.S. Trade Representative, 804 F. \nSupp. 385, 388 (D.D.C. 1992) (\"[T]he GATT and its subsequent modifications were not \nSenate-ratified treaties, and they therefore did not have the status of statutory law.\") \n(citing Suramerica de Aleaciones Laminadas. v. United States, 966 F. 2d 660, 668 (Fed. \nCir. 1992)). \nAlthough there was no case law holding that a treaty qualifies as a statute for FOIA \nexemption 3 purposes, there was a sound basis in law for concluding that a treaty can \nqualify. As noted by the Supreme Court in Whitney, \"[b]oth [senate-ratified treaty and \nstatute] are declared by that instrument [constitution] to be the supreme law of the land, \nand no superior efficacy is given to either over the other.\" Whitney 124 U.S. at 194. \nII. STATUTORY FRAMEWORK \nIn 2000, the Consolidated Appropriations Act, FY-2001, Pub. L. No. 106-554, \n§ 304(b)(1), 114 Stat. 2763, 2763A-633 to 2763A-634, added section 6105 to the Code. \nSection 6105 provides, as a general rule, that “[t]ax convention information shall not be \ndisclosed.” \nA. Definitions \n1. The term “tax convention information” means any \n(a) agreement entered into with the competent authority of one or \nmore foreign governments pursuant to a tax convention; \n",
"13-14\n(b) application for relief under a tax convention; \n(c) background information related to the agreement or \n application; \n(d) document implementing the agreement; and \n(e) other information exchanged pursuant to a tax convention \n which is treated as confidential or secret under the tax \n convention. \n2. The term “tax convention” means any income tax or gift and estate \ntax convention, or any other convention or bilateral agreement \n(including multilateral conventions and agreements and any agreement \nwith a possession of the United States) providing for the avoidance of \ndouble taxation, the prevention of fiscal evasion, nondiscrimination with \nrespect to taxes, the exchange of tax relevant information with the \nUnited States, or mutual assistance in tax matters. \nI.R.C. § 6105(c)(1)-(2). \nB. Exception \nThe general rule of confidentiality does not apply to the disclosure of tax \nconvention information to persons or authorities (including courts and \nadministrative bodies) which are entitled to disclosure pursuant to a tax \nconvention, to any generally applicable procedural rules regarding applications \nfor relief under a tax convention, and to the disclosure of tax convention \ninformation on the same terms as return information may be disclosed under \nparagraph (3)(C) or (7) of section 6103(i). However, in the case of tax \nconvention information provided by a foreign government, no disclosure may be \nmade without the written consent of the foreign government, or, after \nconsultation with each other party to the tax convention (when the tax \nconvention information is not relating to a particular taxpayer) to ensure that \ndisclosure would not impair tax administration. I.R.C. § 6105(b). \nC. Case Law \nBecause the statute is relatively new, there are few cases interpreting the \nprovision. In Tax Analysts v. IRS, 152 F. Supp. 2d 1, 10 (D.D.C. 2001), aff’d in \npart, rev’d & remanded on other grounds, 294 F.3d 71 (D.C. Cir. 2002), the \ndistrict court held that an entire document written by the Office of Chief Counsel \nwith respect to a specific taxpayer, based on information obtained from a tax \nconvention partner, was exempt from disclosure under section 6105, and did not \nneed to be parsed to separate the hornbook law from the taxpayer-specific \ninformation. Relying on legislative history, the court reasoned that Congress had \n",
"13-15\nintended to exempt the entire document under section 6105. The court noted \nthat the section was added to the Code when the Tax Analysts “FSA” case was \nstill pending in the district court after remand from the D.C. Circuit’s opinion in \nTax Analysts v. IRS, 117 F.3d 607 (D.C. Cir. 1997). The court stated “Congress \nexpressed its clear intent that regardless of their exemption status under section \n6103, FSAs are fully exempt under section 6105 if they qualify as tax convention \ninformation.” 152 F. Supp. 2d at 12. Consequently, written determinations will \nbe withheld from public inspection and exempt from section 6110 when they \nconstitute tax convention information. \nIn Pacific Fisheries, Inc. v. IRS, No. C04-2436JLR, 2009 U.S. Dist. LEXIS 38495 \n(W.D. Wash. 2009), aff’d, 395 F. App’x 438 (9th Cir. 2010), the district court held \nthat a declaration from an attorney in the Office of Chief Counsel along with a \nsupplemental declaration from the IRS Director of Treaty Administration and \nInternational Coordination provided an “adequate factual basis from which it \ncould decide whether disclosure would seriously impair federal tax \nadministration.” Id. In the case, the company Pacific Fisheries, Inc. sought \ndocuments which the IRS used as the basis for third-party summonses later \nwithdrawn. The summonses were issued at the request of the Russian \ngovernment (pursuant to a tax convention between the United States and \nRussia) to aid a Russian investigation of a Pacific Fisheries employee. The IRS \nwithheld documents pursuant to FOIA exemption (b)(3) in conjunction with \n6105(a). \nThe court also held that confidentiality under the tax convention extends to the \ninformation provided to Russia by the IRS. The court agreed with the argument \nfrom the IRS that, “[F]rom the statutory definition and legislative history it is clear \nthat communications that relate to and reflect on information received from \nRussia are encompassed within the definition of tax convention information. Id.\nat *14 (emphasis added). \nIn Erika A. Kellerhals, P.C. v. IRS, Civ. No. 2009-90, 2011 U.S. Dist. LEXIS \n113156 (D.V.I. Sept. 30, 2011), the district court held that drafts of the working \nagreement between the United States and the U.S. Virgin Islands, requests for \nexchange of information, and requests made under the working agreement all \nqualified as tax convention information under section 6105, and thus, were \nexempt from disclosure under FOIA. The district court noted that the items were \ndescribed in section 6105(c)(1)(E) based on a declaration by a Service employee \nstating that the documents had been treated as confidential by both parties and \nthat tax administration would be impaired if they were disclosed. Id. The district \ncourt also noted that the Service was not required to identify which specific \nsubsection of section 6105 was applicable to the documents when the \ndocuments were submitted for an in camera review. Id.\n",
"13-16\nPART III: PUBLICITY OF INFORMATION REQUIRED \nFROM CERTAIN EXEMPT ORGANIZATIONS – I.R.C. § 6104 \nI. BACKGROUND \nWith the passage of the Revenue Act of 1950, Congress required that certain tax \nexempt educational and charitable organizations annually file information to be made \navailable to the public. See Pub. L. No 81-814, ch. 994, 64 Stat. 906 (1950) (amended \nby 65 Stat. 124 and 66 Stat 820). In 1958, Congress amended section 6104 to include \nthese organizations’ applications for tax exempt status, as well as annual returns \nreflecting the organizations’ gross income, expenses, disbursements for charitable \npurpose, accumulations of income and a balance sheet. See Technical Amendments \nAct of 1958, Pub. L. No. 85-866, § 75(a), 72 Stat. 1606, 1660-61. In 2000, Congress \namended section 6104 to require publicity of certain information filed by political \norganizations granted exempt status under section 527. See Pub. L. No. \n106-230, § 1(b)(1)(A)(i)-(vi), 114 Stat. 477, 78. \nII. STATUTORY PROVISIONS \nA. In General \nThe application filed by any organization exempt from taxation under section \n501(a) or a political organization exempt from taxation under section 527, for \nany taxable year, or any papers submitted in support of an application for \nexempt status, and any letter or other document issued by the Service granting \nthe qualified or exempt status are open to public inspection. \nI.R.C. § 6104(a)(1)(A). In addition, any application filed with respect to the \nqualification of a pension, profit sharing, or stock bonus plan under sections \n401(a) or 403(a), an individual retirement account described in section 408(a), \nor an individual retirement annuity described in section 408(b), any application \nfiled with respect to the exemption from tax under section 501(a) of an \norganization forming part of a plan or account are open to public inspection. \nI.R.C. § 6104(a)(1)(B). Any inspection under section 6104 may be made as \nprovided by regulations. See Treas. Reg. § 301.6104(a)-1. \nInformation not open to public inspection includes information from which the \ncompensation (including deferred compensation) of any individual may be \nascertained. Moreover, at the request of the organization submitting any \nsupporting papers, the IRS will withhold from public inspection any information \nwhich relates to any trade secret, patent, process, style of work, or apparatus of \nthe organization, if public disclosure of the information would adversely affect \nthe organization. In addition, the IRS will withhold from public inspection any \ninformation contained in supporting papers if public disclosure would adversely \naffect the national defense. Treas. Reg. § 301.6104(a)-5(a)(2). \n",
"13-17\nThere are some exceptions from the disclosure requirements. If an organization \nis not a private foundation (within the meaning of section 509(a)) or a political \norganization exempt from taxation under section 527, the name or address of \nany contributor to the organization is not disclosed. If an organization is \ndescribed in section 501(d), no partnership returns or names may be disclosed. \nI.R.C. § 6104(d)(3)(A). \nCommittees of Congress, as described in section 6103(f), can inspect the \napplication for exemption of any section 501(c) or (d) organization or notice of \nstatus of any exempt section 527 political organization, and any qualified plan \nas well as any other papers which relate to the application. I.R.C. §§ 6103(f), \n6104(a)(2). \nInformation concerning exempt political organizations is available on the Internet \nat http://www.irs.gov/charities/political or http://www.guidestar.org, or can be \ninspected in person. The available information consists of: \n1. A list of all political organizations which file a notice with the Secretary \nunder section 527(i); and \n2. The name, address, electronic mailing address, custodian of records, \nand contact person for the organization. \nInformation must be made available no later than five business days after the \nIRS receives a notice from a political organization under section 527(i). \nI.R.C. § 6104(a)(3). \nIndividuals may also make a request to inspect copies of annual returns, \nreports, and exempt status application materials, or materials will be provided to \nthe requester without charge other than a reasonable fee for any reproduction \nand mailing costs. The request may be made in person at the organization’s \nprincipal, regional or district office, or in writing. I.R.C. § 6104(d)(1)(B). \nB. Definitions \n1. “Exempt status application materials” include the application for \nrecognition of exemption under section 501 and any papers submitted \nin support of the application, along with any letter or other document \nissued by the IRS with respect to the application. I.R.C. § 6104(d)(5). \n2. “Notice materials” mean the notice of status filed under section 527(i) \nand any papers submitted in support of the notice and any letter or \nother document issued by the IRS with respect to the notice. \nI.R.C. § 6104(d)(6). \n",
"13-18\nC. Disclosure of Reports by Internal Revenue Service\nAny report filed by an organization under section 527(j) (relating to required \ndisclosure of expenditures and contributions) must be made available to the \npublic at whatever times and in whatever places as the Secretary may prescribe \nby regulation. Treas. Reg. § 301.6104(a)-(1). Section 6104 indicates that such \ndocuments are available for public inspection at the national office of the \nInternal Revenue Service. Copies of such documents are open to public \ninspection at the appropriate field office of the Internal Revenue Service. \nI.R.C. § 6104(a)(1)(A), 6104(d)(6). \nD. Disclosures to State Officials \nSection 6104(c) governs when the IRS may disclose to the appropriate state \nofficials (usually the Attorney General) certain information about organizations \ndescribed in section 501(c)(3), organizations that have applied for recognition as \norganizations described in section 501(c)(3), and certain other exempt \norganizations. \nThe Service is authorized to disclose information about certain proposed \nrevocations and proposed denials before an administrative appeal has been \nmade and a final revocation or denial has been issued. For those organizations \nthat have received a determination letter stating that they are described in \nsection 501(c)(3), the Service may disclose a proposed revocation (before any \nadministrative appeal) to an appropriate state official. The Service is also \nauthorized to disclose final revocations and final denials issued after any \nadministrative appeal has been concluded for any section 501(c)(3) organization. \nUnder the authority of section 6104(c)(2)(D) the IRS may disclose returns or \nreturn information of any section 501(c)(3) organization to appropriate state \nofficials on its own initiative (regardless of whether it has initiated an \nexamination) if it determines that the information may be evidence of \nnoncompliance with state laws under the jurisdiction of the appropriate state \nofficer. Thus, if the IRS believes these conditions are met, it may, for example, \ndisclose to appropriate state officers a proposed revocation of exemption for a \nsection 501(c)(3) organization that does not have a determination letter. All \ndisclosures authorized under section 6104(c) may be made only if the state \nreceiving the information is following applicable disclosure, recordkeeping and \nsafeguard procedures. \nIII. INTERRELATION OF I.R.C. §§ 6104 AND 6110\nSee Part I, above. \n",
" \n14-1\nCHAPTER 14 \nDISCLOSURE GUIDE FOR TAX-EXEMPT BOND EXAMINATIONS \nI. GENERAL DISCLOSURE CONCEPTS \nA. Is Information Relating to Compliance with the Bond Provisions Return \nInformation?\nInformation collected or received by the IRS relating to compliance with the tax- \nexempt bond provisions involves the liability or potential liability of specific \npersons under the Code. As such, it is return information protected by section \n6103. The Code does not contain any exceptions to the confidentiality of returns \nand return information that are specific to tax-exempt bond matters. Rather, \nvarious other disclosure provisions discussed in detail elsewhere in this \nhandbook, and as specific to tax-exempt bonds in this chapter, allow for \ndisclosure in the tax-exempt bond arena as necessary. \nB. Whose Return Information Is It? \nThe next critical step in any disclosure analysis is determining, with respect to \nany item of information, whose return information it is. This is because persons \ncan generally access their own return information, while access to the return \ninformation of others is strictly limited. Generally, the determination focuses on \nwhose liability under the Code is at issue when the information is collected. \nThus, information collected during the examination of taxpayer A is taxpayer A's \nreturn information, even if it is collected from a third party. I.R.C. § 6103(b)(3). \nThe same principles apply with respect to a group of taxpayers. If an \ninvestigation is of a specifically targeted group of taxpayers, the information \ncollected becomes the return information of each person in the group. Then, as \nthe Service develops information and issues unique to each taxpayer, that latter \ninformation is the return information solely of the specific taxpayer. The bond \narea, involving the potential liability of bondholders, issuers, conduit borrowers, \nand others, is susceptible to this \"taxpayer group\" type of analysis.75\nAfter commencement of a bond examination, the IRS collects information \nregarding the taxability of interest on the bonds generally, without regard to the \nconsequences to a particular bondholder. Technical advice may be requested, \nand the IRS may attempt to settle with the issuer. Information collected during \nthese steps is the return information of both the issuer and bondholders. If \n75 For purposes of this chapter, we assume the reader is familiar with the concepts and definitions of \nbondholder, issuer, trustee, conduit borrower, bond counsel, underwriter, letter of credit provider, and \nother terms related to tax-exempt bonds. I.R.C. § 150. \n",
" \n14-2\nsettlement discussions are unavailing, the IRS may progress to the point of \nissuing notices of deficiency to bondholders. A bondholder's notice of deficiency, \nand any other information generated during the examination of an individual \nbondholder, will be the return information solely of the affected bondholder (not \nthe issuer or any other bondholder). Similarly, if the IRS determines that there is \na potential for application of a section 6700 (promoting abusive tax shelters) \npenalty against the issuer, information collected thereafter relating to the penalty \nwould be solely the issuer's information. See I.R.C. § 6700. \nLikewise, information generated during the examination of a conduit borrower is \nthe conduit borrower's return information. Even if there is some relationship to a \nbond matter, the information remains the conduit borrower's return information so\nlong as the information pertains to some aspect of the conduit borrower's liability \nunder the Code. For example, tax-exempt bond proceeds may have been used \nin an unrelated trade or business of a section 501(c)(3) organization. Even \nthough there is some relationship to a bond matter, the information collected \nduring the organization's examination related to whether the organization has \nunrelated business taxable income would be the section 501(c)(3) organization's \nreturn information. After a separate bond examination is opened (which would \noccur after bond issues are identified in the conduit borrower's examination), \nhowever, information gathered under the auspices of the bond examination \nwould be the issuer's and bondholders' return information. \nDepending on the facts of the case, issuers, conduit borrowers and others \nassociated with the bond issuance may have liability under section 6700. \nInformation collected during an investigation for potential application of the \nsection 6700 penalty would be the return information of the subject or subjects of \nthe section 6700 examination. \nWhile it is critical to determine the “owner” of return information for purposes of \ndisclosure, it does not necessarily mean that the Service cannot provide access \nto a third party. It merely means that one or more subsections of section 6103 \nmust authorize the disclosure of the information, as discussed below. \nII. AUTHORIZED DISCLOSURES \nOther chapters discuss at length the various exceptions to the general rule of \nconfidentiality, many of which may be implicated or available in the tax-exempt bond \narena. \nSection 6103(e)(1)(A) provides that, upon written request, an individual's \"return\" shall \nbe open to inspection by or disclosure to that individual. A corporation's return is \ngenerally available upon written request to, among others, persons with authority\ndesignated by resolution of its board of directors or other similar governing body to act \nfor the corporation. I.R.C. § 6103(e)(1)(D); see generally IRM 11.3.2.4.3. A person's \n\"return information\" may also be disclosed to that person, pursuant to section \n",
" \n14-3\n6103(e)(7), unless the IRS determines the disclosure will seriously impair federal tax \nadministration. See Chapter 2. \nIRM 11.3.32, Disclosure to States for Tax Administration Purposes, provides that \nreturns and return information of a taxpayer, including a state or local government, may \nbe disclosed to any state agency, body or commission, or its legal representative \ncharged under the laws of the state with the responsibility for administration of any state \ntax law. IRM 11.3.32.3. Generally, verification that the requester is an appropriate \ngovernment official, for example, the Director of Taxation, will be sufficient to indicate \nentitlement to returns and return information. \nA taxpayer may authorize another person to receive returns or return information \nthrough a power of attorney. I.R.C. § 6103(e)(6), (7). See generally Chapter 2, Part III. \nThe taxpayer may also designate a person to receive returns or return information \nthrough a \"waiver\" or \"consent.” I.R.C. § 6103(c); see Appendix for sample disclosure \nconsents for bond matters. See generally Chapter 2, Part III. \nAn IRS employee may disclose return information (but not the return) in connection with \nofficial duties relating to an audit, collection activity, or civil or criminal tax investigation, \nto the extent such disclosure is necessary in obtaining information which is not \notherwise reasonably available, with respect to the correct determination of tax, liability \nfor tax or the amount to be collected under Title 26. I.R.C. § 6103(k)(6). Disclosures \nunder section 6103(k)(6) may be made only in situations and under conditions as \nprescribed in regulations. See Chapter 4. \nSection 6103(h)(4) provides that a return or return information may be disclosed in a \nfederal judicial or administrative proceeding pertaining to tax administration in three \nsituations: \n(A) if the taxpayer is a party to the proceeding, or the proceeding arose out of, or \nin connection with, determining the taxpayer's civil or criminal liability, or the \ncollection of such civil liability, in respect of any tax imposed under [the \nCode]; \n(B) if the treatment of an item reflected on the taxpayer’s return is directly related \nto the resolution of an issue in the proceeding; or \n(C) if the return or return information directly relates to a transactional \nrelationship between a person who is a party to the proceeding and the \ntaxpayer which directly affects the resolution of an issue in the proceeding[.] \nSee Chapter 3. \nAs discussed below, the transactional relationship that exists among the bondholders, \nissuer, trustee, and conduit borrower may provide a basis for disclosure under section \n",
" \n14-4\n6103(h)(4)(B) and/or (C), depending on what issues must be resolved in the \nproceeding. \nThe definition of return information excludes statistical studies and other compilations of \ndata in a form which cannot be associated with, or otherwise identify, directly or \nindirectly, a particular taxpayer. I.R.C. § 6103(b)(2). This does not mean that the IRS \ncan disclose information from a bond examination even if identifying information is \nredacted. Information retains its status as return information even if the identifiers are \ndeleted. See Church of Scientology of Cal. v. IRS, 484 U.S. 9, 15 (1987). The IRS may \ndisclose amalgamations of data, e.g., that it is examining particular classes of cases or \nparticular types of abuses, so long as the individual issuances being looked at cannot \nbe identified. In addition, non-identifiable statistical data (such as that compiled in the \nStatistics of Income Bulletin) may be disclosed. \nIII. APPLICATION OF SECTION 6103 TO BOND PROGRAM \nA. Bond Examination \nA Revenue Agent opens a bond examination on 1993 County A general revenue \nbonds. May the IRS disclose return information relating to whether interest on \nthe bonds is tax exempt to the issuer, the bondholders, or the trustee? \nThe IRS could discuss whether interest on the bonds is exempt from tax with the \nissuer and any bondholder because it is their own return information. In addition, \nthe information could be discussed with the representatives of the issuer or \nbondholders, but only if a valid power of attorney is filed with the IRS. \nAs a general rule, absent the issuer’s consent, the information could not be \ndiscussed with the trustee. Disclosure of discrete items of return information to \nthe trustee would nevertheless be permitted if the disclosure were necessary to \nobtain information that is not otherwise reasonably available (e.g., a bondholder \nlist). I.R.C. § 6103(k)(6). As discussed in section III.E., below, if the trustee must \nfile Forms 1099, the Service could disclose to the trustee information necessary \nto perform those responsibilities. \nB. Bond Issue Involving Conduit Borrower \nA Revenue Agent examines a bond issue, the proceeds of which were loaned to \na taxable organization to build a low income housing project. \n1. May the IRS disclose return information relating to whether \ninterest on the bonds is tax exempt to the issuer, the \nbondholders, the trustee, or the conduit borrower? \nInformation relating to whether the interest on the bonds is tax exempt \nmay be disclosed to the issuer and bondholders. \n",
" \n14-5\nDisclosures to the conduit borrower in this situation are much more \nrestricted. As noted above, the IRS can disclose information regarding the \nbonds to obtain information that is not otherwise reasonably available. \nI.R.C. § 6103(k)(6). The conduit borrower, for example, may have \ninformation regarding bond compliance. Tax information may be \ndisclosed in connection with the bond examination to the conduit \nborrower, or to any other person involved in the bond issuance, in the \nsame manner and under the same rules as other third party investigative \ninquiries. \nSection 6103(k)(6) would not authorize the IRS to discuss wide-ranging \nbond issues with the conduit borrower. Consent from the issuer is \nrequired to make any disclosures to the conduit borrower beyond those \nminimal disclosures authorized by section 6103(k)(6). For example, if it \nbecomes clear that the conduit borrower wants to participate in the \nexamination, the issuer's consent to disclosure must be obtained. \nSample consents permitting disclosures of bond examination information \nto the conduit borrower and conduit borrower's counsel are in the \nAppendix. All persons that will be involved in meetings, discussions, or \ncorrespondence with IRS personnel concerning the bond matter should be \nlisted in the consent as appointees. In addition, no disclosures should be \nmade to any representative of the conduit borrower, or to the conduit \nborrower's counsel, unless they are listed in the consent. For additional \ninformation on consents, including the requirements for oral consents, see\nChapter 2, Part III. \nDisclosures to the trustee would ordinarily be predicated on section \n6103(k)(6) (investigative purposes) or section 6103(c) (consent). \n2. May the conduit borrower be notified of the referral of an issue \nfor technical advice? \nA conduit borrower may be notified of the referral of an issue for technical \nadvice only with the consent of the issuer. I.R.C. § 6103(c). \nC. Revocation of Exempt Status \nWhile examining a tax-exempt hospital, a revenue agent discovers that the \nhospital's earnings inure to its staff physicians. The IRS determines that the \nhospital is no longer exempt from tax under section 501(c)(3). The revenue \nagent also discovers that the hospital facilities were constructed with the \nproceeds of a tax-exempt bond issue. As such, the bonds are no longer tax-\nexempt. The IRS decides to issue notices of deficiency to the bondholders. \n",
" \n14-6\n1. What can the IRS disclose to the issuer or bondholders \nconcerning the hospital's examination? \nThe IRS could disclose the fact of revocation to the issuer or bondholders. \nThe fact of revocation being the linchpin to the tax liability regarding the \nbonds, it is the issuer's and bondholders' return information (as well as the \nhospital's). Moreover, the fact that contributions to the organization are no \nlonger deductible is published in the Cumulative Bulletin. This disclosure \nis authorized by section 7428. On the other hand, other information \nconcerning the hospital's examination should not, in most circumstances, \nbe disclosed. \n2. What can the IRS disclose to the hospital concerning the bonds? \nWithout consent, the IRS should not disclose information about the bond \nexamination to the hospital, although it certainly could inquire of the \nhospital about the bonds, to the extent necessary, under section \n6103(k)(6). If specifically asked by the hospital about the bonds, the IRS \ncould state the general legal principle that the revocation of an \norganization's exemption would also render the bonds taxable.\nD. Bond Examination Arising out of Conduit Borrower Examination with \nCommon Issues \nWhile examining a section 501(c)(3) organization, a revenue agent discovers that \nthe organization borrowed the proceeds of a tax-exempt bond issue for use in \nthe construction of a multi-purpose center. The bonds are purportedly qualified \nsection 501(c)(3) bonds. Based on concerns about the private activity limitations \nof sections 141 and 145, the revenue agent opens a separate bond examination \nto develop the bond issues. The revenue agent also has concerns about the \nunrelated business taxable income (UBIT) implications for the organization, as \nwell as the potential application of section 150(b)(3). \nThis is perhaps the most difficult area to analyze because of the overlapping \nissues and the two possibly simultaneous examinations. From a disclosure \nstandpoint, it is critical to segregate which information came from which \nexamination. In addition, because the third party information disclosure rules of \nsection 6103(h)(4)(B) and (C) are implicated, the relevance of each item of data \nto each examination must be carefully scrutinized. The basic rules are \nsummarized as follows: \n\u0003 In the bond examination, information from the bond examination \nrelating to whether the interest on the bonds is tax-exempt may be \ndisclosed to the issuer and bondholders. See I.R.C. § 6103(e), \n(h)(4)(A). \n",
" \n14-7\n\u0003 In the conduit borrower's examination, information from the conduit \nborrower's examination relating to the UBIT issue and other information \nrelating to the organization's section 501(c)(3) status may be disclosed \nto the conduit borrower. See I.R.C. § 6103(e), (h)(4)(A). \n\u0003 In the bond examination, the conduit borrower must obtain the issuer's \nconsent (see sample consents in the Appendix) to discuss issues \nrelated to the taxability of the bond interest. As a general matter, the \nissuer's consent should be filled out to permit disclosures to the conduit \nborrower, the conduit borrower's representative, and other persons \nparticipating in the bond examination. \n\u0003 In the conduit borrower's examination, no consent is necessary to \ndisclose factual information to the conduit borrower that relates to the \nconduit borrower's UBIT liability, even if the information originated in the \nbond examination. See I.R.C. § 6103(h)(4)(B), (C). \n\u0003 In the bond examination, information from the conduit borrower's \nexamination relating to whether interest on the bonds is tax-exempt may \nbe disclosed to the issuer. See I.R.C. § 6103(h)(4)(B), (C).76\nE. Disclosure to Trustee (or Other Person Paying Interest) that Bond \nInterest is Taxable \nUnder section 6049, generally, a person making payments of taxable interest is \nrequired to send Forms 1099 to the interest recipients. This would include \npayments of municipal bond interest if the IRS determines that the bond interest \nis not exempt from tax. Thus, at a minimum, it will be necessary to inform the \ntrustee or other person making the interest payments to the beneficial owners of \nthe bonds of the IRS's determination. Because it is the interest payor's \nresponsibility to file Forms 1099 with the IRS and to send the forms to the \nbondholders, the information triggering the requirement to file--the fact that \ninterest on the bonds is no longer exempt – is the interest payor's return \ninformation (as well as the issuer's and bondholders'), and may be disclosed to \nthe trustee or other interest payor under section 6103(e). \nF. Disclosures to Issuer or Bondholders of Settlements with Individual \nBondholders\nAny settlement reached with an individual bondholder is that bondholder's return \ninformation, and may not be disclosed to the issuer or other bondholders. \nFactual information collected during an individual bondholder's audit, which \n76 We have assumed that the issuer has no interest in the conduit borrower’s potential UBIT liability. \nTo the extent that liability may arise in discussions where the issuer or its representatives may be \npresent, however, consent from the conduit borrower should be obtained. \n",
" \n14-8\nrelates to the bond issue, could be disclosed to the issuer under section \n6103(h)(4)(B) and/or (C), assuming the issuer's examination is ongoing and the \ninformation directly relates to an issue to be resolved in the issuer’s examination. \nG. Bond Counsel \nBond counsel would have the same right to returns or return information as their \nclient under section 6103(e)(6) and (7), if they have a power of attorney (Form \n2848) or section 6103(c) consent (Form 8821). \nH. Underwriter, Letter of Credit Provider \nBond examination data may be disclosed to the underwriter or letter of credit \nprovider if the disclosure is necessary to obtain information that is not otherwise \nreasonably available pursuant to section 6103(k)(6), or with the issuer's consent, \nsection 6103(c). \nI. Securities and Exchange Commission and State Oversight Authorities \nSection 6103(k)(6) can justify limited disclosures to obtain information from any \nperson, including a state bond oversight authority or the Securities and \nExchange Commission (SEC). Disclosures to these authorities can also be \npremised on the issuer's consent, pursuant to section 6103(c). \nAs discussed above, information does not lose its character as return information \nmerely because identifying information is deleted. As such, no disclosure to the \nSEC or a state bond oversight authority could be predicated on a \"redacted\" fact \npattern. On the other hand, amalgamated information about the types and \nclasses of cases the IRS is looking into, as well as statistical information, may be \ndisclosed to any person as long as it does not directly or indirectly identify a \nparticular taxpayer. \n",
"15-1 \nCHAPTER 15 \nAPPENDICES \nAPPENDIX-1 \nCONSENT TO DISCLOSURE OF TAX INFORMATION \nAPPENDIX-2 \nCONSENT TO DISCLOSURE OF RETURN INFORMATION \nAPPENDIX-3 \nTESTIMONY REPORT AND AUTHORIZATION \nAPPENDIX-4 \nPOWER OF ATTORNEY AND DECLARATION OF \nREPRESENTATIVE \nAPPENDIX-5 \nTAX INFORMATION AUTHORIZATION\nAPPENDIX-6 \nTAX DISCLOSURES \nAPPENDIX-7 \nCURRENT IRS EMPLOYEE TESTIMONY AUTHORIZATION\nAPPENDIX-8 \nFORMER IRS EMPLOYEE TESTIMONY AUTHORIZATION\nAPPENDIX-9 \nBOND EXAMINATION – CONSENTS \nAPPENDIX-10 \nLINKS\n",
"15-2 \nAPPENDIX-1 \nCONSENT TO DISCLOSURE OF TAX INFORMATION \n",
"15-3 \n",
"15-4 \nAPPENDIX-2 \nCONSENT TO DISCLOSURE OF RETURN INFORMATION \n",
"15-5 \n",
"15-6 \nAPPENDIX-3 \nTESTIMONY REPORT AND AUTHORIZATION \n",
"15-7 \n",
"15-8 \nAPPENDIX-4 \nPOWER OF ATTORNEY AND DECLARATION OF REPRESENTATIVE \n",
"15-9 \n",
"15-10 \nAPPENDIX-5 \nTAX INFORMATION AUTHORIZATION \n",
"15-11 \n",
"15-12 \n",
"15-13 \n",
"15-14 \nAPPENDIX-6 \nTAX DISCLOSURES \n",
"15-15 \n",
"15-16 \nAPPENDIX-7 \nCURRENT IRS EMPLOYEE TESTIMONY AUTHORIZATION \nOffice of Chief Counsel \nInternal Revenue Service \nMemorandum\n CC:PA:B06:XXXXXX \n DL-XXXXXXXX \ndate:\nto: XXXXXXXXXX \nRevenue Agent \nIRS\n[provide function/post of duty information]\nfrom: [appropriate delegated authority as provided for in Delegation Order 11-2 and its Exhibit \ntable] \nsubject: Testimony Authorization in re: \nXXXXXXXX. v. Internal Revenue Service, Civil No. XXXXXXXXXXXXXX \nIn connection with the above-captioned matter, Counsel for the Plaintiffs has served \nXXXXXXXXXXXXXXXXXXXXX with a Notice (or subpoena) to appear at a [insert \nappropriate information here—for example: deposition scheduled to begin March 11, \n2011, at 1:30 p.m. and continue to March 14, 2011 at 10:00 a.m. at the offices of [name, \naddress of cite of deposition or place of trial]. \nYou are to testify in your official capacity as an Internal Revenue Service employee, \nspecifically with respect to your involvement with [provide a description of the matter \nemployee was involved with that gave rise to the testimony]. \nPursuant to Delegation Order 11-2 and 26 C.F.R. 301.9000-1, you are authorized to \nappear and give testimony, under the guidance of Government counsel, subject to the \nlimitations listed below. \nUnless prohibited in the next section, you may:\n• Testify as to facts of which you have personal knowledge in your official capacity \nduring the period of time that you were employed in [insert appropriate \ninformation here—for example: the Atlanta field office of IRS, Criminal \nInvestigation regarding the Federal grand jury investigation in which Plaintiffs \n",
"15-17 \nwere the subject and during the period of time that Plaintiffs’ FOIA requests have \nbeen under consideration by the Service]. \nYou may not: \n• Produce any privileged documents or records of the Internal Revenue Service;\n• Testify as to facts of which you have no personal knowledge;\n• Testify regarding the thought processes of agency personnel or answer \nhypothetical questions;\n• Speculate as to matters of which you have no sure knowledge;\n• Testify in response to general questions concerning the positions, policies, \nprocedures, or records of the Internal Revenue Service that are not relevant to \nthe proceeding or reasonably calculated to lead to the discovery of admissible \nevidence;\n• Testify as to other cases or other matters of official business not relevant to the \nproceeding or reasonably calculated to lead to the discovery of admissible \nevidence;\n• Disclose any information that is protected by the attorney-client privilege, the \nattorney work product doctrine or the executive privilege, except, and only to the \nextent, these protections are waived by this authorization;\n• Disclose any returns or return information of any taxpayer who is not a party to \nthis matter;\n• Disclose information that may tend to identify a confidential informant, if any; \n• Disclose tax convention information, if any. \nIf for any reason the dates and/or times of this testimony are changed, this authorization \nshall remain valid until the testimony is canceled or completed, provided there is no \nmaterial change as to the nature of your testimony. \nInquiries concerning the matter should be directed to Department of Justice, Tax \nDivision Attorney XXXX at 202-XXX-XXXX. You may also contact Procedure and \nAdministration, Attorney XXXXX at (202) XXX-XXXX if you have further questions. \n \n \n \n",
"15-18 \nOFFICE OF\nCHIEF COUNSEL\nAPPENDIX-8 \nFORMER IRS EMPLOYEE TESTIMONY AUTHORIZATION \nDEPARTMENT OF THE TREASURY \nI N T ER N AL R E V E N U E S E R V I C E \nWASHINGTON, D.C. 20224 \nMr. XXXXX \n(Address) \nIn re: United States of America v . ….. \nDear Mr. XXXXX: \nIt is our understanding that the taxpayer in the above-referenced federal criminal tax \ncase has requested your testimony and that such testimony is scheduled for July 9, \n2009 continuing into July 10, 2009, if necessary. \nPursuant to 31 C.F.R., § 1.8-1, 12, 26 C.F.R. § 301.9000-1, as a former IRS employee, \nyou are authorized to appear and give testimony, under the guidance of Government \ncounsel, subject to the limitations listed below. \nWith respect to the deposition on oral examination, unless prohibited in the next section, \nyou may testify as to facts within your personal knowledge concerning: \n• Matters you were involved with or observed while working as a [Special \nAgent with IRS Criminal Investigation… on the investigation \ninvolving…which resulted in the prosecution of …. In the case of…???] or \nwhatever is appropriate here.\nYou may not: \n• Testify as to facts not within your personal knowledge. \n• Testify in response to hypothetical questions. \n• Testify in response to general questions concerning the current or former \npositions, policies, procedures, or records of the Internal Revenue \nService. \n• Testify as to matters of official business not relevant to the proceeding or \nreasonably calculated to lead to the discovery of admissible evidence. \n",
"15-19 \n• Disclose any information that is protected by the attorney-client privilege, \nthe attorney work product doctrine, or deliberative process privilege, \nexcept and only to the extent waived by this authorization. \n• Disclose returns or return information of any unrelated third party taxpayer \n(i.e., a taxpayer not a party to this proceeding) except as may be \nauthorized by I.R.C. § 6103(h)(4). \n• Disclose information that may tend to identify a confidential informant, if \nany. \n• Disclose information subject to I.R.C. § 6105, if any. \n• Disclose information that is secret pursuant to Fed. R. Crim. P. 6(e), if any. \nYou may not: \n• Provide, produce, permit inspection of, or otherwise make available, any \ndocuments that you obtained while employed by the IRS. \nIf for any reason the date, time, or location of your testimony is changed, this \nauthorization shall remain valid until the testimony is canceled or completed, provided \nthere is no material change in the facts related to the disclosure/ nondisclosure of \nrequested information in this lawsuit. \nInquiries concerning this matter may be directed to [office of CC:CT Area Counsel \nresponsible for signing this authorization]. \nSincerely, \n \n[this should be signed by the \nappropriate official delegated \nauthority by Delegation Order 11-2] \n\u0002\n\u0002\n\u0002\n\u0002\n\u0002\n\u0002\n \n \n",
"15-20 \nAPPENDIX-9 \nBOND EXAMINATION - CONSENTS \n \nI authorize the Internal Revenue Service to disclose to the representatives of \nABC Hospital and DEF Law Firm appearing on the attached list, any of the returns and \nreturn information, as those terms are defined in section 6103(b) of the Internal \nRevenue Code, of XYZ County Health Facilities Development Authority relating to the \n$47,000,000 XYZ County Health Facilities Development Authority Hospital Revenue \nBonds Series 1996. \n \nI am aware that without this authorization, the returns and return information of \nXYZ County Health Facilities Development Authority are confidential and are protected \nby law under the Internal Revenue Code. \n \nI certify that I am authorized by law to bind XYZ County Health Facilities \nDevelopment Authority and that I have authority to execute this consent to disclose tax \ninformation on the Authority's behalf. \nTaxpayer Name \n \nXYZ County Health Facilities \n \n \n \n \n \n \n \n \nDevelopment Authority_____ \nAddress: \n \n \n \n \n 444 Muni Way___________ \n \n \n \n \n \n \n City, State 12345________ \nEmployer Identification No. \n \n 12-3456789_____________ \nName and Title of Corporate \nOfficer or Authorized Person: \n \n Sigmund Issuer, President__ \nSignature of Corporate \nOfficer or Authorized Person: \n \n/s/______________________ \nDate: \n \n \nxx/xx/20xx____ \nTreasury regulations require that the consent must be received by the Internal Revenue \nService within sixty days after signing by the taxpayer. \n",
"15-21 \n",
"15-22 \nAPPENDIX-10 \nLINKS\nGeneral Counsel Order No. 4, \nDelegation of Authority to Chief \nCounsel (CCDM 30.2.2-6)\nhttp://www.irs.gov/irm/part30/irm_30-002-002.html#d0e512\nDelegation Order 11-2 \n(Formerly Delegation Order 156, \nRev. 17) \nInternal Revenue Manual - 1.2.49 Delegation of Authorities for \nCommunications, Liaison and Disclosure Activities\nDelegation Order 30-4 \n(Formerly Delegation Order 220, \nRev. 3)\nInternal Revenue Manual - 1.2.53 Delegation of Authorities for \nChief Counsel Activities\nIRM 1.2.2, Servicewide Policies \nand Authorities, Delegations of \nAuthority \nhttp://publish.no.irs.gov/cat12.cgi?request=CAT1&catnum=73276\nQ\nIRM Chapter 11 \nhttp://www.irs.gov/irm/part11/index.html\nIRS Privacy Act \nSystems of Records \nhttp://edocket.access.gpo.gov/2008/pdf/E8-4430.pdf\nGovernment Wide \nSystems of Records \nhttp://www.defenselink.mil/privacy/govwide/\nDepartment of Justice, Office of \nPrivacy & Civil Liberties, Overview \nof the Privacy Act of 1974 \nhttp://www.justice.gov/opcl/1974privacyact-overview.htm\nTreasury Directive 25-04 \nhttp://www.treasury.gov/about/role-of-treasury/orders-\ndirectives/Pages/td25-04.aspx\nTreasury Department Privacy Act \nHandbook, TDP 25-04 \nhttp://www.treasury.gov/FOIA/Documents/tdp25-04.pdf\n"
] |
f8838.pdf
|
0207 Form 8838 (PDF)
|
https://www.irs.gov/pub/irs-pdf/f8838.pdf
|
[
"Form 8838\n(Rev. December 2012) \nDepartment of the Treasury \nInternal Revenue Service \nConsent To Extend the Time To Assess Tax Under \nSection 367—Gain Recognition Agreement \n ▶ Attach to your income tax return.\n ▶ Information about Form 8838 and its instructions is at www.irs.gov/form8838.\nOMB No. 1545-1395\nAttachment \nSequence No. 145 \nName(s) of consenting taxpayer(s)\nIdentifying number (see instructions)\nSocial security number of spouse (only if a joint income tax \nreturn was filed) \nNumber, street, and room or suite no. (If a P.O. box, see instructions.)\nCity or town, state, and ZIP code\nThe taxpayer(s) listed above and the Commissioner of Internal Revenue, pursuant to the regulations under section 367, agree to the \nfollowing: \n1 \nThe amount of any federal income tax due relating to the transfer described in item 5, below, on any income tax return made \nby or for the above taxpayer(s) for the tax year ended \nmonth \n, \nday\n, \nyear\n, may be \nassessed at any time on or before \nmonth \n, \nday\n, \nyear\n, (expiration date—see instructions). \n2 \nThis consent establishes an extended period for assessing tax. The expiration of the extended period may be suspended or \notherwise affected by the operation of law in the same manner as the original period. For example, if a notice of deficiency in\ntax covered by this consent is issued, the period for assessing tax will not end prior to the end of the suspension period \nprovided for by section 6503(a), plus any time that remains in the assessment period, as extended, at the time the suspension \ntakes effect. Under no circumstances will this consent reduce the period of time otherwise provided by law for making an \nassessment. \n3 \nThe consenting taxpayer(s) may file a claim for credit or refund for the tax assessed by reason of this consent within 6 months\nafter the period ends for assessing tax established by this consent. \n4 \nThe amount of any deficiency assessment covered by this consent will be limited to the amount of any federal income tax due \nrelating to the recognition of gain on the transfer described in item 5, including any penalties, additions to tax, and interest \nattributable thereto and consequential changes to other items based on that adjustment. \n5 \nComplete the following information (see instructions): \na Date of transfer \nb Description of the property transferred\nc Name of transferee and identifying number, if any \nUnder penalties of perjury, I declare that I have examined this consent, including accompanying statements and schedules, and to the best of my knowledge and belief, it is \ntrue, correct, and complete. A signed consent, properly completed in accordance with this form and its instructions, is deemed to have been executed by the \nCommissioner of Internal Revenue. \n▲\nSignature of consenting taxpayer (see instructions) \n▲\nDate\n▲\nSignature of spouse (complete only if a joint return is filed) \n▲\nDate\n▲\nTaxpayer’s representative sign here \n▲\nDate\n▲\nCorporate officer(s) sign here \n▲\nDate\nFor Paperwork Reduction Act Notice, see the instructions. \nCat. No. 20471F \nForm 8838 (Rev. 12-2012) \n",
"Form 8838 (Rev. 12-2012) \nPage 2 \nGeneral Instructions \nSection references are to the Internal Revenue Code unless otherwise \nnoted. \nFuture Developments\nFor the latest information about developments related to Form 8838 and \nits instructions, such as legislation enacted after they were published, \ngo to www.irs.gov/form8838.\nPurpose of Form \nForm 8838 must be used for gain recognition agreements under \nsections 367(a) and 367(e)(2). \nFor more information about transfers of stock and securities to a \nforeign corporation described in section 367(a), see Regulations \nsections 1.367(a)-3 and 1.367(a)-8. For information about a liquidation of \na domestic subsidiary into a foreign parent under section 332, see \nRegulations section 1.367(e)-2. \nConsent to extend the time to assess tax. Although you are not \nrequired to extend the period of limitations under the terms and \nconditions provided in this form, failure to do so in a timely manner will \ninvalidate the gain recognition agreement and the transfer of property \nwill be treated as a taxable exchange as required by Regulations \nsections 1.367(a)-8(c) and 1.367(a)-8(j). \nWho Must File \nA United States transferor must file Form 8838 (or a similar statement) if \nit enters into a gain recognition agreement pursuant to section 367(a) \nwith respect to the transferred property. \nFor purposes of section 367(a), the term “United States transferor” \nincludes: \n• A citizen or resident of the United States. \n• A domestic corporation. \n• A U.S. citizen, resident, or domestic corporation that is directly or \nindirectly a partner in a domestic or foreign partnership that transfers \nproperty to a foreign corporation. See Temporary Regulations section \n1.367(a)-1T(c)(3). \n• Any estate or trust (other than a foreign estate or trust under section \n7701(a)(31)). \nIn the case of an exchange described in section 361(a) or 361(b) that \nis subject to section 367(a)(5), see Regulations sections 1.367(a)-8(f) and \n1.367(a)-3(e). \nThe domestic corporation and distributee foreign corporation must \nfile Form 8838 (or a similar statement) if a gain recognition agreement \nunder section 367(e)(2) is entered into. \nHow To File \nAttach Form 8838 to the U.S. transferor’s income tax return for the tax \nyear the transfer is made. \nSpecific Instructions \nIdentifying Number \nThe identifying number of an individual is the social security number. \nFor all other taxpayers, it is the employer identification number. \nAddress \nInclude the suite, room, or other unit number after the street address. If \nthe Post Office does not deliver mail to the street address and the \ntransferor has a P.O. box, show the box number instead. \nLine 1 \nThe correct expiration date to be entered on line 1 depends on the type \nof transaction. \nTransfers under section 367(a). A U.S. transferor must agree to \nextend the statute on transfers described in section 367(a) for at least 8 \ntax years following the tax year of the transfer. \nLiquidations under section 367(e)(2). Domestic liquidating \ncorporations and foreign distributee corporations must agree to extend \nthe statute for liquidations described in section 367(e)(2) for at least 3 \nyears after the date on which all items of property distributed to the \nforeign distributee are no longer used in a trade or business within the \nUnited States. However, the period of extension may not exceed 13 \nyears from the filing of the original U.S. income tax return for the tax \nyear of the last distribution of any item of property included in the \nliquidation. \nLine 5 \nIf Form 8838 is filed by a successor U.S. transferor because of a \ntransaction described in Regulations section 1.367(a)-8(k), the \ninformation required in lines a, b, and c refers to the initial transfer. \nSignature \nJoint returns. If this consent is made for any year for which a joint \nincome tax return is filed, both husband and wife must sign Form 8838 \nunless one, acting under a power of attorney, signs as an agent for the \nother. \nCorporation. If the taxpayer is a corporation, a responsible officer of the \ncorporation must sign the return and show his or her title. Affiliated \ngroups filing a consolidated income tax return should see Regulations \nsection 1.1502-77 for rules about a common parent signing as an agent \nfor subsidiaries and alternative agents for affiliated groups. Also see \nRegulations section 1.367(a)-(8)(d)(3). \nAttorney or Agent. If you are an attorney or agent of the taxpayer(s), \nyou may sign this consent if that action is specifically authorized by a \npower of attorney. Form 2848, Power of Attorney and Declaration of \nRepresentative, provides the authority on line 5, Acts authorized. Attach \na copy of Form 2848 with Form 8838. \nFiduciaries. If you are acting as a trustee and you sign this consent, \nyou must attach a copy of Form 56, Notice Concerning Fiduciary \nRelationship, and the trust instrument. If you are acting as an executor, \nadministrator, or other fiduciary of an estate, you must attach a copy of \nForm 56, and the certified copy of letters of testamentary or court \ncertificate certifying as to the present status of the estate, including the \nname of the present fiduciary and capacity. \nBankruptcy case under Title 11, United States Code. The trustee \nmust sign the consent in a case under Title 11 if the trustee has \npossession of, or holds title to, all or substantially all of the property or \nbusiness of a corporation. \nPaperwork Reduction Act Notice \nWe ask for the information on this form to carry out the Internal \nRevenue laws of the United States. You are required to give us the \ninformation. We need it to ensure that you are complying with these \nlaws and to allow us to figure and collect the right amount of tax. \nYou are not required to provide the information requested on a form \nthat is subject to the Paperwork Reduction Act unless the form displays \na valid OMB control number. Books or records relating to a form or its \ninstructions must be retained as long as their content may become \nmaterial in the administration of any Internal Revenue law. Generally, \ntax returns and return information are confidential, as required by Code \nsection 6103. \nThe time needed to complete and file this form will vary depending \non individual circumstances. The estimated burden for individual \ntaxpayers filing this form is approved under OMB control number \n1545-0074 and is included in the estimates shown in the instructions for \ntheir individual income tax return. The estimated burden for all other \ntaxpayers who file this form is shown below. \nRecordkeeping\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. 4 hr., 18 min. \nLearning about the law or the form .\n.\n.\n.\n.\n. 1 hr., 53 min. \nPreparing the form .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. 2 hr., 2 min. \nCopying, assembling, and sending \nthe form to the IRS .\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n. 0 min. \nIf you have comments concerning the accuracy of these time \nestimates or suggestions for making this form simpler, we would be \nhappy to hear from you. See the instructions for the tax return with \nwhich this form is filed. \n"
] |
f8329.pdf
|
0109 Form 8329 (PDF) v1
|
https://www.irs.gov/pub/irs-pdf/f8329.pdf
|
[
"Form 8329\n(Rev. October 2012)\nDepartment of the Treasury \nInternal Revenue Service \nLender's Information Return for \nMortgage Credit Certificates (MCCs)\nFor calendar year ending \n▶ Information about Form 8329 and its instructions is at www.irs.gov/form8329.\nOMB No. 1545-0922 \nPart I \nReporting Authority \nLender’s name \nEmployer identification number \nLender’s address (number, street, or P.O. box no., if mail is not delivered to street address) \nRoom/suite \nCity, town, or post office, state, and ZIP code \nPart II \nIssuing Authority \nIssuer’s name \nEmployer identification number \nIssuer’s address (number, street, or P.O. box no., if mail is not delivered to street address) \nRoom/suite \nElection date \nCity, town, or post office, state, and ZIP code \nNonissued bond amount \nPart III \nRecipients of Mortgage Credit Certificates (If more than five recipients, see instructions.) \n (a) \nName(s) \n(b) \nAddress \nDo not use a P.O. box number. \n(c) \nSocial Security Number(s) \n1 \n2 \n3 \n4 \n5 \nPart IV \nComputation of the Total Amount of Mortgage Credit Certificates (Note: Match the information \nentered on each line with information entered on each corresponding line in Part III.) \n(d) \nDate of Issue of MCC \n(e) \nCertified Indebtedness Amount \nof Each MCC Issued \n(f) \nCertificate Credit Rate\n(g) \nAmount of MCC Issued \n(column (e) x column (f)) \n1 \n2 \n3 \n4 \n5 \n6 Total amount of MCCs issued. (See instructions.) \n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n.\n ▶\nSign \nHere \nUnder penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge \nand belief, it is true, correct, and complete. Declaration of preparer (other than representative of lender) is based on all information of which preparer has any \nknowledge.\n▲\nSignature of authorized representative of lender\nDate\n▲\nTitle\nPaid \nPreparer \nUse Only\nPrint/Type preparer’s name\nPreparer's signature\nDate\nCheck if \nself-employed\nPTIN\nFirm’s name ▶\nFirm's address ▶\nFirm's EIN ▶\nPhone no.\nFor Paperwork Reduction Act Notice, see instructions. \nCat. No. 13902F \nForm 8329 (Rev. 10-2012) \n",
"Form 8329 (Rev. 10-2012) \nPage 2 \nGeneral Instructions \nSection references are to the Internal Revenue Code \nunless otherwise noted. \nAny person who makes a loan that is a “certified \nindebtedness amount” on any mortgage credit \ncertificate (MCC) must maintain books and records \nof the activity and file Form 8329. (See Temporary \nRegulations section 1.25-8T(a).) \nA separate Form 8329 must be filed for each \nissue of MCCs for which the lender made mortgage \nloans during the calendar year. Each issue of MCCs \ncorresponds to the MCC program relating to the \nnonissued bond amount that was the subject of the \nelection made on the election date. Both the \nnonissued bond amount and the election date are to \nbe provided in Part II of this Form 8329. \nFuture Developments\nFor the latest information about developments \nrelated to Form 8329 and its instructions, such as \nlegislation enacted after they were published, go to \nwww.irs.gov/form8329. \nPurpose of Form \nForm 8329 is used by lenders of certified \nindebtedness amounts to provide the IRS with \ninformation regarding the issuance of MCCs under \nsection 25. \nThe MCC must be issued under a program that \nmeets the residence requirements of section 143(c). \nUnder these requirements, the residence must: (1) \nbe a single-family residence that can reasonably be \nexpected to become the principal residence of the \nmortgagor within a reasonable time after the \nfinancing is provided, and (2) be located in the \njurisdiction of the authority issuing the certificate. \nSee section 25(c)(2) for additional requirements. \nWho Must File \nAny person who makes a loan that is a certified \nindebtedness amount on any MCC must file Form \n8329. \nWhen To File \nFile Form 8329 by January 31 following the close of \nthe calendar year in which the lender made certified \nindebtedness loans. \nThe IRS may grant an extension of time to file \nForm 8329 if there is reasonable cause for not filing \non time. \nWhere To File \nFile Form 8329 with the Department of the Treasury, \nInternal Revenue Service Center, Ogden, UT 84201. \nPenalty \nAny person required to file Form 8329 may be \nsubject to a $200 penalty for each form that is not \nfiled by the due date. The maximum penalty is \n$2,000. \nDefinitions \nMortgage Credit Certificate. A mortgage credit \ncertificate is a certificate issued under a “qualified \nmortgage credit certificate program” by the state or \npolitical subdivision having the authority to issue \nqualified mortgage bonds to provide financing for \nthe acquisition, qualified rehabilitation, or qualified \nhome improvement of a taxpayer’s principal \nresidence. For more information, see section 25(c)(1).\nQualified mortgage credit certificate program. A \nqualified mortgage credit certificate program is a \nprogram established for any calendar year by a \nstate or political subdivision that is authorized to \nissue qualified mortgage bonds under section 143 \n(and for which there has been an appropriate \nallocation of state volume cap for that calendar \nyear under section 146) but elected instead to \nissue mortgage credit certificates. (See section \n25(c)(2) for additional requirements.) \nAggregate amount. The aggregate amount (the \ncertified indebtedness times the certificate credit \nrate for each MCC, totaled for all mortgage credit \ncertificates issued under a single MCC program), \nmay not exceed 25% of the nonissued bond \namount for which the election not to issue bonds \nwas made. See section 25(d)(2). \nCertified indebtedness amount. The certified \nindebtedness amount is the amount of indebtedness \nspecified in the MCC and incurred by a taxpayer: \na. To acquire his or her principal residence, \nb. To make qualified home improvements on that \nresidence, or \nc. To make a qualified rehabilitation of that \nresidence. \nCertificate credit rate. The certificate credit rate is \nthe rate specified by the issuer on the MCC. \nHowever, the rate cannot be less than 10% nor \nmore than 50%. For other limitations, see \nTemporary Regulations section 1.25-2T(b). \nSpecific Instructions \nPart I. Reporting Authority \nProvide information about the mortgage lender. \nPart II. Issuing Authority \nProvide information about the mortgage credit \ncertificate issuer. \nElection date. Enter the date the issuing authority \nelected to issue MCCs in lieu of qualified mortgage \nbonds for the MCC program that included the \namounts listed in Part IV, column (e). \nNonissued bond amount. Enter the total amount of \nqualified mortgage bonds (as defined in section \n143(a)(1) and the related regulations) that the issuer \nhas authority to issue but elected instead on the \nelection date to convert into authority to issue \nMCCs. \nPart III. Recipients of Mortgage \nCredit Certificates \nColumn (a). Enter the name(s) of the MCC holder(s) \nto whom the lender made certified indebtedness \nloan(s) during the calendar year. If an MCC lists \nmore than one holder, enter all of the holders on \none line. \nColumn (b). Enter the number and street, city, state, \nand ZIP code of the property for which the MCC \nwas issued. Do not use a P.O. box number. \nColumn (c). Enter the social security number(s) of \nthe holder(s) listed on the MCC. \nPart IV. Computation of the Total \nAmount of Mortgage Credit \nCertificates \nColumn (d). Enter the date the issuing authority \nissued the certificate for the amount included in \ncolumn (e). Do not give the date the loan was made \nnor the date when any preliminary approval to issue \nan MCC was given by the issuer. \nIf the loan is for a reissued MCC as permitted by \nthe regulations, the date of the reissued certificate \nshould be given, preceded by the word “Reissued.” \nFor example, “Reissued, July 25, 2008.” \nColumn (f). Enter the certificate credit rate for each \nMCC. \nColumn (g). For each certificate amount listed in \ncolumn (e), multiply by the certificate credit rate \nassociated with that certificate shown in column (f). \nLine 6. This is the aggregate amount of MCCs \nissued (Part IV, column (g)) in connection with the \nlender’s loans relating to the issuer’s MCC program \nfor the calendar year. The total should reflect all of \nthe MCCs described on the lender’s Form 8329, \nincluding any attachments, for the MCC program for \nthe calendar year. \nAdditional Entries \nIf the lender must report on more than 5 mortgage \ncredit certificates, it should report these additional \ncertificates on an attached statement formatted like \nForm 8329. \nInstead of formatting its own statement, the lender \nmay use one Form 8329 as a transmittal document \nand use additional Forms 8329 as statements. In \nsuch a case, draw an “X” across the 5 lines of Parts \nIII and IV of the Form 8329 used as a transmitting \ndocument. Complete the remainder of this Form \n8329, making certain that all mortgage credit \ncertificate amounts reported in all the statements in \nPart IV, column (g) are totaled for line 6 of the \ntransmittal document. Sign only the transmittal Form \n8329 and indicate in the top margin the number of \nForms 8329 attached to this Form 8329. \nOn the attached Forms 8329, show the lender’s \nname and employer identification number in Part I \nand enter mortgage credit certificate information on \nthe 5 lines of Parts III and IV. \nSignature \nForm 8329 must be signed by an authorized \nrepresentative of the lender. \nPaid Preparer Use Only\nAnyone who prepares the return but does not \ncharge the organization should not sign the return. \nCertain others who prepare the return should not \nsign. For example, a regular, full-time employee of \nthe lender, such as a clerk, secretary, etc., should \nnot sign.\nGenerally, anyone who is paid to prepare a return \nmust sign it and fill in the other blanks in the Paid \nPreparer Use Only area of the return. A paid preparer \ncannot use a social security number in the paid Paid \nPreparer Use Only box. The paid preparer must use \na preparer tax identification number (PTIN). If the \npaid preparer is self-employed, the preparer should \nenter his or her address in the box. The paid \npreparer must:\n• Sign the return in the space provided for the \npreparer’s signature,\n• Enter the preparer information, and\n• Give a copy of the return to the lender.\nPaperwork Reduction Act Notice. We ask for the \ninformation on this form to carry out the Internal \nRevenue laws of the United States. You are required \nto give us the information. We need it to ensure that \nyou are complying with these laws. \nYou are not required to provide the information \nrequested on a form that is subject to the \nPaperwork Reduction Act unless the form displays a \nvalid OMB control number. Books or records \nrelating to a form or its instructions must be retained \nas long as their contents may become material in \nthe administration of any Internal Revenue law. \nGenerally, tax returns and return information are \nconfidential, as required by section 6103. \nThe time needed to complete and file this form \nwill vary depending on individual circumstances. The \nestimated average time is: \nRecordkeeping .\n.\n.\n.\n.\n. 3 hr., 35 min. \nLearning about the \nlaw or the form .\n.\n.\n.\n.\n.\n 1 hr., 5 min.\nPreparing and sending \nthe form to the IRS .\n.\n.\n.\n. 1 hr., 12 min. \nIf you have comments concerning the accuracy of \nthese time estimates or suggestions for making this \nform simpler, we would be happy to hear from you. \nYou can write to the Internal Revenue Service, Tax \nProducts Coordinating Committee, \nSE:W:CAR:MP:T:M:S, 1111 Constitution Ave. NW, \nIR-6526, Washington, DC 20224. Do not send the \nform to this address. Instead, see Where To File on \nthis page. \n"
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