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Guide To Free Tax Services
for Tax Year
1999
1999 Guide to Free Tax Services
Table of Contents
Customer Service .........................................................1 Small Business Tax Education Program (STEP)
Taxpayer Rights s Your Business Tax Kit (YBTK)
Good Service Taxpayer Assistance Programs ................................30
Still Collect the Taxes
Volunteer Income Tax Assistance (VITA)
Tax Information — Where to Get It..........................2 Tax Counseling for the Elderly (TCE)
s AARP Tax-Aide
Tax Information Available Electronically
s IRS Home Page Bank, Post Office, and Library Program
s IRS Tax Fax Student Tax Clinic Program (STCP)
s IRS CD-ROM
Low-Income Taxpayer Clinics (LITC)
IRS Community-Based Outlet Programs Grant Program
s IRS Post Office Program
Taxpayer Advocate Service.....................................31
s IRS Library Program
s IRS Copy Center Program
Taxpayer Education Programs .................................32
s IRS Corporate Partnership Program
s IRS Credit Union Program Community Outreach Tax Education
s IRS Grocery Store Program Understanding Taxes Program for Students
s IRS Newspaper Supplement Program Practitioner Education
TeleTax (Recorded Tax Info, Automated Refund
Info, TeleTax Topics by Computer) .....................3 Important Tax Subjects You Should
s TeleTax Topic Menu Numbers Know About ...............................................................33
Tax Publications..........................................................5 Amending a Return
s Tax Publications and Related Forms
Adoption Taxpayer Identification Number (ATIN)
s Index of Topics and Related Publications .............11
Collection Process
Videotapes and Brochures on Specific Tax Topics ...23
Copies of Prior Year Returns
1-800 Tax Assistance Telephone Number .............24
Credits
TTY/TDD Telephone Service .................................25
Disaster/Casualty Losses........................................34
Braille Tax Materials
Estimated Tax
International Service
Examination of Returns
Explore IRS e-file .......................................................26 Form W-4, Employee’s Withholding Allowance
IRS e-file Using an Authorized Provider Certificate
IRS e-file Using a Personal Computer Form W-5, Earned Income Credit Advance Payment
IRS e-file Using a Touch-Tone Telephone Certificate ...............................................................35
IRS e-file Through Employers and Financial Form W-7, Application for IRS Individual Taxpayer
Institutions Identification Number
IRS e-file at Authorized VITA and TCE Sites Form W-7A, Application for Taxpayer Identification
Number for Pending U.S. Adoptions
Business Tax Services and Information ................27 Late (Overdue) Returns
IRS e-file Programs for Businesses Social Security Number (SSN)
s File Form 941 by Telephone s Name Change
s File Form 941 Using a Reporting Agent s Dependent’s SSN
s File Form 941 Using a Personal Computer
Electronic Federal Tax Payment System (EFTPS) Tips When Filing Your Return ................................36
Independent Contractor or Employee ................28 Important Parts of Your Return
Publication 1518, Year 2000 Tax Calendar for Small Important Double-Checks on Your Paper Return
Businesses Before Mailing
Office of Public Liaison/Small Business Affairs ..29 Important Mailing Procedures
SSA/IRS (Social Security Administration/Internal
Revenue Service) Reporter (Newsletter) ‘Where to File’ Your Taxes for Tax Year 1999.........37
1999 Guide to Free Tax Services
Guide to Free Tax Services
Guide to Free Tax Services identifies the many IRS tax materials and services available to you, and how, when, and
where you can get them. Most materials and programs are free and most are available year-round through the IRS.
Internet, telephone, and fax access of tax materials; filing options; tax publications; tax education and assistance pro-
grams; and tax tips are covered in this Guide. Publication 910 also gives direction to access recorded tax information
and automated refund information. Please read on to see which IRS tax services will help make your tax filing easier.
Customer Service
Customer Service — taxpayer rights and good service and still collect the taxes — The Restructuring and Reform Act
was truly a landmark in the history of the IRS. It laid out a fundamentally new direction for the agency — the first
one since Harry Truman was in the White House. And since there are many detailed and complex provisions in the
Bill, including 71 new taxpayer rights, it’s easy to get lost in specifics and overlook the whole picture. Through this
Act, the IRS was given a new direction and a new challenge, namely to measure its success or failure in terms of its
effect on the people it serves as well as the taxes it collects. This new direction relies heavily on improved manage-
ment, improved business practices, and improved technology.
Taxpayer Rights Good Service
The IRS Restructuring and Reform Act of 1998, signed into In conjunction with the implementation of new taxpayer rights,
law on July 22, 1998, contains the Taxpayer Bill of Rights 3. the IRS has made many improvements in customer service.
The Taxpayer Bill of Rights 3 preserves the balance between The Agency expanded hours of operations nationwide for both
safeguarding the rights of the individual taxpayers and its tax assistance toll-free lines and its walk-in assistance at
enabling the Internal Revenue Service to administer the tax convenient locations. The Agency further increased options
laws efficiently, fairly, and with the least amount of burden for filing and paying electronically, improved access to the
to the taxpayer. taxpayer advocate, and set up ‘problem solving days’ in com-
Under this Bill, taxpayer rights were expanded in several munities nationwide to resolve particularly difficult tax cases.
areas: Still Collect the Taxes
s The burden of proof shifted to the IRS in certain
The IRS works around the clock to provide revised tax
court proceedings. materials to taxpayers. Publications, forms, instructions,
s In certain cases, taxpayers may be awarded damages
booklets, brochures, CD-ROMs, videos, and etc., reflect the
and fees, and get liens released. latest tax legislation. These products are available to help
s Penalties will be eased when the IRS exceeds speci-
taxpayers meet their tax responsibilities. Publication 553,
fied time limits between when a return is filed and Highlights of 1999 Tax Changes, is a collection of the latest tax
when the taxpayer is notified of a tax liability. law changes that may affect you this filing season. You can
s Interest will be eliminated in certain cases involving
download Publication 553 and nearly 100 other tax publica-
federally-declared disaster areas. tions listed in this booklet from the IRS Web site
s There are new rules for collection actions by levy.
(www.irs.gov), and you can request a free copy of any IRS
s Innocent spouse relief provisions are strengthened.
tax publication by calling the IRS at 1-800-829-3676.
s In certain situations, taxpayer-requested installment
agreements must be accepted. Taxpayers will get Advances in technology have provided new tools and new
annual status reports of their installment agreements. skills and have enabled significant improvements in operating
processes and procedures. Currently, the IRS is capitalizing on
The IRS revised Publications 1, Your Rights as a Taxpayer, and these advances and is undertaking the enormous job of mod-
1SP, Derechos del Contribuyente, to incorporate Taxpayer Bill of ernizing and replacing information computer systems designed
Rights 3 with some of the most important rights. These publica- in the early ’60s. These improvements will greatly enhance
tions can be downloaded from the IRS Web site (www.irs.gov) the Agency’s ability to achieve its goal of top quality service
or ordered through the IRS by calling 1-800-829-3676. including timely and accurate responses to the taxpayers.
Restructuring a new IRS that meets new expectations of the public and the Congress will require years of sustained
effort. The new IRS mission statement, “Provide America’s taxpayers top quality service by helping them understand and
meet their tax responsibilities and by applying the tax law with integrity and fairness to all,” clearly points to the Agency’s
new direction. In the past twelve months, the IRS has clarified its direction, developed a new attitude, and created
new and exciting business practices. The IRS has taken the first bold steps toward achieving the goals as directed in
the IRS Restructuring and Reform Act of 1998.
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1999 Guide to Free Tax Services
Tax Information — Where to Get It
The Internal Revenue Service produces and provides publications, forms, and other tax materials and information
to help taxpayers meet their tax responsibilities. In addition to getting these materials over the telephone, through
the mail, at local IRS offices, and at community locations, most materials can be obtained electronically — via the
Internet, through a fax machine, and on CD-ROM.
Tax Information Available Electronically ticipate in this program. There may be a nominal fee if you
From a computer, you can download and print any of 700 need to reproduce a tax form where stock is not available.
federal tax forms with instructions, approximately 100 tax IRS Copy Center Program: Each year, the IRS furnishes
publications, and other tax materials. Also for your conve- thousands of copy centers (nationwide) either the IRS
nience, you can request and receive forms through a fax Publication 1796, Federal Tax Products on CD-ROM, or IRS
machine or you can order the Federal Tax Products on Publication 3195, Laminated Tax Forms. Through this program,
CD-ROM of IRS forms and publications. quick copy centers and office supply stores can offer taxpayers
IRS Home Page: The IRS home page offers convenient access a wide variety of IRS forms with instructions for copying. It
to information 24 hours a day, 7 days a week. The Web site may be a good idea to call the store nearest you prior to visit-
has tax forms with instructions, publications, the latest tax ing since not all copy centers have this material. There is
law changes, and specific tax information for individuals and often a nominal charge associated with making copies.
businesses. Access the IRS Web site at www.irs.gov IRS Corporate Partnership Program: The IRS and employers
IRS Tax Fax: To get a faxed index of nearly 100 more fre- with 100 or more employees are working together to get tax
quently requested IRS tax forms, dial (703) 368-9694 from a materials to their employees. Upon request, the IRS provides
fax machine. Follow the voice prompts and key in your employers with a free copy of Publication 1796, Federal Tax
response. You may select up to three (3) items to order dur- Products on CD-ROM, that contains tax forms with instructions
ing a single call. The forms are generally available for fax and publications. The employer can then load this information
transmission at all times. Your order will be faxed back to on their Intranet or local area network so their employees can
you through your fax machine. access the tax information. Employees will be able to view and
print more than 700 current IRS tax forms with instructions
IRS CD-ROM: Publication 1796, Federal Tax Products on
and publications. Prior-year forms, tax regulations, IR bulletins
CD-ROM, of current and prior year tax publications
are also available on the CD. For companies that have employ-
and forms can be purchased from the National Technical
ees that do not have computer access, the IRS can provide a
Information Service (NTIS). Order by calling toll free
free copy of Publication 1132, Reproducible Copies of Federal Tax
1-877-233-6767 (1-877-CDFORMS) or via the Internet at
Forms. This publication is a compilation of over 150 tax forms
www.irs.gov/cdorders. (Cost is less when ordered through
with instructions that can be photocopied and used. The forms
the Internet.)
are in camera-ready format for better quality reproduction.
IRS Credit Union Program: The IRS and credit unions are
IRS Community-Based Outlet Programs partnering to offer credit union members another outlet to
The IRS and local community businesses across the United access tax forms. Through this program, credit unions can
States are working together to increase accessibility of tax get a free copy of IRS tax products on CD-ROM and IRS
publications, forms, and other tax materials for your conve- reproducible tax forms (Publications 1132, 1132L, and 3194).
nience. In addition to community outlets listed below, the Credit unions also have the option to load the CD-ROM on
IRS supplies tax forms and publications to a number of tech- their Internet site or they can link to the IRS Web site. Then
nical schools, military bases, prisons, and community col- credit union members can obtain tax materials at work or at
leges nationwide. Most banks are no longer tax form home via their credit union Internet Web site or they can
distribution outlets. However, banks that participate in the photocopy forms at their credit union.
electronic filing program or are a VITA/TCE site may IRS Grocery Store Program: Grocery store chains across the
distribute tax forms. For businesses that would like to nation are partnering with the IRS to get tax forms to their cus-
participate in one or more of these programs, call the IRS at tomers. IRS provides Publication 3194, Laminated Tax Forms, to
916-636-7703. Post offices and libraries need to call the IRS these stores. Then grocery stores may attach this Publication
at 1-800-829-2765. to a self-service copy machine so customers can make copies.
IRS Post Office Program: The IRS supplies free tax IRS Newspaper Supplement Program: Through this pro-
materials to many post offices nationwide. Most post gram, the IRS provides print media outlets with a package of
offices stock Forms 1040 (U.S. Individual Income Tax Return), the most frequently used IRS tax forms. The IRS will provide
1040A, and 1040EZ with the instructions and related requested quantities of this package to insert in newspapers.
schedules. Newspapers can also obtain a free copy of Publication 1796,
IRS Library Program: Members of the American Library Federal Tax Products on CD-ROM, to load to their Web site.
Association and the Public Library Association continue to And, when a newspaper is affiliated with a TV or radio sta-
partner with the IRS to provide taxpayers access to a wide tion, the TV or radio station may want to take advantage of
variety of tax products. Currently, over 14,000 libraries par- loading Publication 1796 on their Web site.
2
1999 Guide to Free Tax Services
TELETAX (Recorded Tax Information, Automated security number shown on your return, the filing status,
Refund Information, and TeleTax Topics by Computer) and the exact whole dollar amount of your refund. Then
call 1-800-829-4477 and follow the recorded instructions.
TeleTax is the IRS toll-free telephone service that provides
The IRS updates refund information every 7 days. If you
both recorded tax information and automated refund
call to find out about the status of your refund and do not
information.
receive a refund mailing date, please wait 7 days before
Recorded Tax Information consists of approximately 150 calling back. This Touch-Tone service is available Monday
recorded topics, listed below, that provide basic tax infor- through Friday from 7:00 a.m. to 11:00 p.m. and on
mation. This Touch-Tone service is available 24 hours a day, Saturday from 7:00 a.m. to 4:00 p.m.
7 days a week. Select, by number, the topic you want to
TeleTax Topics by Computer at www.irs.gov is another way
hear, and then call 1-800-829-4477. For the directory of top-
to get the listing of TeleTax topics.
ics, listen to topic #123. You may listen to as many topics as
you like during your call. Have paper and pencil handy to
take notes. NOTE: This year, all TeleTax recorded messages
Automated Refund Information allows you to check the status on the TeleTax topics listed below will be
of your refund. Be sure to have a copy of your current tax available in Spanish language.
return available since you will need to know the first social
TeleTax Topic Menu Numbers Menu #s Subject Menu #s Subject
Topic numbers are effective January 1, 2000 Collection Filing Requirements, Filing
201 The collection process Status, and Exemptions
Menu #s Subject 202 What to do if you can’t pay your 351 Who must file
IRS Help Available tax 352 Which form - 1040, 1040A, or
101 IRS services - volunteer income 203 Failure to pay child support and 1040EZ
tax assistance, toll-free telephone, other federal obligations 353 What is your filing status
walk-in assistance, and outreach 204 Offers in compromise 354 Dependents
programs 205 Innocent spouse relief (and 355 Estimated tax
102 Tax assistance for individuals separation of liability and 356 Decedents
with disabilities and the hearing- equitable relief)
impaired
Types of Income
103 Small Business Tax Education Alternative Filing Methods 401 Wages and salaries
Program (STEP) - tax help for 251 Form 1040PC tax return
small businesses 402 Tips
252 Electronic filing 403 Interest received
104 Taxpayer Advocate Service - help
253 Substitute tax forms 404 Dividends
for problem situations
254 How to choose a tax preparer 405 Refunds of state and local taxes
105 Public libraries - tax information
tapes and reproducible tax forms 255 TeleFile 406 Alimony received
407 Business income
IRS Procedures General Information 408 Sole proprietorship
151 Your appeal rights 301 When, where, and how to file 409 Capital gains and losses
152 Refunds - how long they should 302 Highlights of tax changes 410 Pensions and annuities
take 303 Checklist of common errors when 411 Pensions - The general rule and
153 What to do if you haven’t filed preparing your tax return the simplified method
your tax return (non-filers) 304 Extensions of time to file your tax 412 Lump-sum distributions
154 Form W-2 - what to do if not return
413 Rollovers from retirement plans
received 305 Recordkeeping
414 Rental income and expenses
155 Forms and publications - how to 306 Penalty for underpayment of
415 Renting vacation property and
order estimated tax
renting to relatives
156 Copy of your tax return - how to 307 Backup withholding
416 Farming and fishing income
get one 308 Amended returns
417 Earnings for clergy
157 Change of address - how to notify 309 Roth IRA contributions
418 Unemployment compensation
the IRS 310 Education IRA contributions
419 Gambling income and expenses
158 Ensuring proper credit of 311 Power of attorney information
payments 420 Bartering income
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1999 Guide to Free Tax Services
Menu #s Subject Menu #s Subject
421 Scholarship and fellowship grants Tax Credits
422 Nontaxable income 601 Earned income tax credit (EITC)
IRS recorded tax information
423 Social security and equivalent 602 Child and dependent care credit available 24 hours a day,
railroad retirement benefits 603 Credit for the elderly or the
424 401(k) plans disabled 7 days a week
425 Passive activities - losses and 604 Advance earned income tax credit
credits 605 Education credits
426 Other income 606 Child tax credits Menu #s Subject
427 Stock options 607 Adoption credit Magnetic Media Filers -
428 Roth IRA distributions 608 Excess social security and RRTA 1099 Series and Related
tax withheld Information Returns
Adjustments to Income 801 Who must file magnetically
451 Individual retirement IRS Notices 802 Applications, forms, and
arrangements (IRAs) 651 Notices - what to do information
452 Alimony paid 652 Notice of under-reported income - 803 Waivers and extensions
453 Bad debt deduction CP 2000 804 Test files and combined federal
454 Tax shelters 653 IRS notices and bills and penalty and state filing
455 Moving expenses and interest charges 805 Electronic filing of information
456 Student loan interest deduction returns
Basis of Assets, Depreciation,
Itemized Deductions and Sale of Assets Tax Information for Aliens and
501 Should I itemize 701 Sale of your home - U.S. Citizens Living Abroad
after May 6, 1997 851 Resident and nonresident aliens
502 Medical and dental expenses
702 Sale of your home - 852 Dual status alien
503 Deductible taxes
before May 7, 1997 853 Foreign earned income exclusion
504 Home mortgage points
703 Basis of assets - general
505 Interest expense
704 Depreciation 854 Foreign earned income exclusion
506 Contributions
705 Installment sales - who qualifies
507 Casualty losses
855 Foreign earned income exclusion
508 Miscellaneous expenses - what qualifies
Employer Tax Information
509 Business use of home 856 Foreign tax credit
751 Social security and Medicare
510 Business use of car withholding rates 857 Individual Taxpayer Identification
511 Business travel expenses 752 Form W-2 - where, when, and Number - Form W-7
512 Business entertainment expenses how to file 858 Alien tax clearance
513 Educational expenses 753 Form W-4 - employee’s
514 Employee business expenses withholding allowance certificate Tax Information for Puerto Rico
515 Disaster area losses 754 Form W-5 - advance earned Residents (in Spanish)
income credit 901 Who must file a U.S. income tax
Tax Computation 755 Employer identification number return in Puerto Rico
551 Standard deduction (EIN) - how to apply 902 Deductions and credits for Puerto
552 Tax and credits figured by the IRS 756 Employment taxes for household Rico filers
employees 903 Federal employment taxes in
553 Tax on a child’s investment
income 757 Form 941 - deposit requirements Puerto Rico
554 Self-employment tax 758 Form 941 - employer’s quarterly 904 Tax assistance for Puerto Rico
federal tax return residents
555 Five- or ten-year tax options for
lump-sum distributions 759 Form 940/940-EZ - deposit
requirements
556 Alternative minimum tax
760 Form 940/940-EZ - employer’s
557 Tax on early distributions from
annual federal unemployment tax
traditional and Roth IRAs
return
558 Tax on early distributions from
761 Tips - withholding and reporting
retirement plans
762 Independent contractor vs
employee
4
1999 Guide to Free Tax Services
Tax Publications
The IRS produces many free publications to help you fill out your tax return and to answer your tax questions.
All IRS publications and forms can be downloaded from the Internet or ordered at no charge by calling the IRS at
1-800-829-3676. You can also get forms faxed to you. See section IRS Tax Fax under Tax Information Available
Electronically.
Tax Publications and Related Forms: You may want to get one or more of the publications listed below for informa-
tion on a specific topic. Where the publication title may not be enough to describe the contents of the publication, there
is a brief description. Forms and schedules related to the contents of each publication are shown after each listing.
Most Popular Publications! Pub 15, Circular E, Employer’s Tax
Guide — Forms 940, 941.
Pub 17, Your Federal Income Tax (For Individuals) — can help you prepare your
Pub 15-A, Employer’s Supplemental
individual tax return. This publication takes you step-by-step through each part
Tax Guide
of the return. It explains the tax law in a way that will help you better under-
stand your taxes so that you pay only as much as you owe and no more. This Pub 51, Circular A, Agricultural
publication also includes information on various kinds of credits you may be Employer’s Tax Guide — Form 943.
able to take to reduce your tax. (Note to Tax Professionals only: There is a fee to
Pub 54, Tax Guide for U.S. Citizens and
order this publication.)
Resident Aliens Abroad — explains the
Forms 1040 (Schedules A,B,D,E,EIC,R) 1040A, 1040EZ, 2106, 2119, 2441, 3903, W-2.
special tax rules for U.S. citizens and
Pub 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or resident aliens who live and work
C-EZ) — explains federal tax laws that apply to sole proprietors and statutory abroad or who have income earned in
employees. (Note to Tax Professionals only: There is a fee for this publication.) foreign countries. In particular, this
Forms 1040 (Schedule C, C-EZ, SE), 4562. publication explains the rules for
excluding income and excluding or
Pub 553, Highlights of 1999 Tax Changes — provides detailed information about
deducting certain housing costs.
tax law changes that may affect you this filing season. There were a number of
Forms 1040, 1116, 2555, 2555-EZ.
tax law changes that occurred in the Taxpayer Relief Act of 1997 and the IRS
Restructuring and Reform Act of 1998 that may apply to many individuals and Pub 80, Federal Tax Guide for
business owners over the next few years. Pub 553 includes these tax law changes. Employers in the Virgin Islands, Guam,
American Samoa, and the
Pub 579SP, Cómo Preparar la Declaración de Impuesto Federal (How to Prepare
Commonwealth of the Northern
the Federal Income Tax Return) —
Mariana Islands (Circular SS) —
Forms 1040, 1040A, (Schedules 1 and 2), 1040EZ, and Schedule EIC.
Forms 940, 941SS, 943.
Pub 179, Guía Contributiva Federal
Pub 1, Your Rights as a Taxpayer — and excluded from gross income, com- Para Patronos Puertorriqueños
explains some of your most important bat zone exclusion, alien status, depen- (Circular PR) (Federal Tax Guide for
rights as a taxpayer. It also explains the dency exemptions, sale of residence, Employers in Puerto Rico) —
examination, appeal, collection, and itemized deductions, tax liability, exten- Forms 940PR, 941PR, 943PR, W-3PR.
refund processes. To ensure that you sion of deadline, and filing returns. Pub 225, Farmer’s Tax Guide — identi-
always receive fair treatment in tax Forms 1040, 1040A, 1040EZ, 1040NR, fies the kind of farm income you must
matters, you should know what your 1040X, 1310, 2106, 2688, 2848, 3903, report and the different deductions you
rights are. 4868, 8822, 9465, W-2. can take.
Pub 1SP, Derechos del Contribuyente Pub 4, Student’s Guide to Federal Forms 1040 (Schedules F,J,SE), 4562,
(Your Rights as a Taxpayer) — Income Tax — explains the federal tax 4684, 4797.
(Publication 1 in Spanish.) laws that are of particular interest to Pub 378, Fuel Tax Credits and Refunds
high school and college students. It — explains the credit or refund that
Pub 3, Armed Forces Tax Guide — gives
describes student’s responsibilities to may be allowable for the federal excise
information about the special tax situa-
pay taxes and file returns and explains taxes on certain fuels. Also discusses
tions of active members of the Armed
how to file and get help, if needed. the alcohol fuel credit.
Forces. This publication contains infor-
Forms 1040 (Schedules C-EZ and SE), Forms 720, 4136, 6478, 8849.
mation on items that are included in
1040EZ, 4070, W-2, W-4.
5
1999 Guide to Free Tax Services
Pub 463, Travel, Entertainment, Gift, environmental taxes; communications required to withhold and report tax on
and Car Expenses — identifies busi- and air transportation taxes; fuel taxes; payments to nonresident aliens and
ness-related travel, entertainment, gift, manufacturers’ taxes; tax on vaccines; foreign corporations. This publication
and local transportation expenses that tax on heavy trucks, trailers, and includes information on required with-
may be deductible. tractors; luxury taxes; and the ship pas- holding upon the disposition of a U.S.
Forms 2106, 2106EZ. senger tax. This publication briefly real property interest by a foreign per-
describes other excise taxes and which son. Also, it includes three tables listing
Pub 501, Exemptions, Standard
forms to use in reporting and paying U.S. tax treaties and some of the treaty
Deduction, and Filing Information —
the taxes. provisions that provide for reduction of
discusses some tax rules that affect
Forms 11-C, 637, 720, 730, 6197, 6627. or exemption from withholding for cer-
every person who may have to file a
tain types of income.
federal income tax return, such as who Pub 513, Tax Information for Visitors to
Forms 1001, 1042, 1042S, 1078, 4224,
must file, what filing status to use, and the United States — briefly reviews the
8233, 8288, 8288-A, 8288-B, 8709, 8804,
how many exemptions to claim. general requirements of U.S. income tax
8805, 8813, W-8 series.
Forms 2120, 8332. rules for foreign visitors who may have
to file a U.S. income tax return during Pub 516, U.S. Government Civilian
Pub 502, Medical and Dental Expenses
their visit. Most visitors who come to Employees Stationed Abroad
— explains which medical and dental
the United States are not allowed to
expenses are deductible, how to deduct Pub 517, Social Security and Other
work in this country. Check with the
them, and how to treat insurance reim- Information for Members of the Clergy
Immigration and Naturalization Service
bursements you may receive for med- and Religious Workers — discusses
before taking a job.
ical care. social security and Medicare taxes and
Forms 1040C, 1040-ES (NR), 1040NR,
Form 1040 (Schedule A). exemptions from them for ministers
2063.
and religious workers. This publication
Pub 503, Child and Dependent Care
Pub 514, Foreign Tax Credit for also explains the income tax treatment
Expenses — explains that you may be
Individuals — explains the foreign tax of certain income and expense items of
able to claim a credit if you pay some-
credit that is allowed for income taxes interest to the clergy.
one to care for your dependent who is
paid to a foreign government on Forms 1040 (Schedules C-EZ, SE),
under age 13 or your spouse or depen-
income taxed by both the United States 2106EZ, 4029, 4361.
dent who is unable to care for himself
and a foreign country.
or herself. Tax rules covering depen- Pub 519, U.S. Tax Guide for Aliens —
Form 1116.
dent care benefits from your employer gives guidelines on how nonresident
are also explained. See Publication 926 Pub 515, Withholding of Tax on aliens determine their U.S. tax status
for information on the employment Nonresident Aliens and Foreign and figure their U.S. income tax.
taxes you may have to pay if you are a Corporations — provides information Forms 1040, 1040C, 1040NR, 1040NR-
household employer. for withholding agents who are EZ, 2063.
Forms 1040A (Schedule 2), 2441.
Pub 504, Divorced or Separated
Individuals — Form 8332.
Pub 505, Tax Withholding and
Estimated Tax — Forms 1040-ES, 2210,
2210F, W-4, W-4P, W-4S, W-4V.
Pub 508, Tax Benefits for Work-Related
Education — identifies work-related
educational expenses that may be
deductible. Also discusses the exclusion
for employer-provided educational
assistance.
Forms 1040 (Schedule A), 2106,
2106EZ.
Pub 509, Tax Calendars for 2000
Pub 510, Excise Taxes for 2000 — covers
in detail the various federal excise taxes
reported on Form 720. These include
6
1999 Guide to Free Tax Services
Pub 520, Scholarships and Fellowships charitable contributions, moving Pub 538, Accounting Periods and
— explains the tax rules that apply to expenses, interest, taxes, or medical and Methods — explains some of the rules
U.S. citizens and resident aliens who dental expenses. for accounting periods and methods.
study, teach, or conduct research in the Forms 1040 (Schedule A), 2106, This publication is not intended as a
United States or abroad under scholar- 2106EZ. guide to general business and tax
ship and fellowship grants. accounting rules.
Pub 530, Tax Information for First-
Forms 1040, 1040A, 1040EZ. Forms 1128, 3115.
Time Homeowners
Pub 521, Moving Expenses — explains Forms 1040 (Schedule A), 8396. Pub 541, Partnerships — Form 1065
whether certain expenses of moving are (Schedules K, K-1).
Pub 531, Reporting Tip Income —
deductible. For example, if you
explains how tip income is taxed and Pub 542, Corporations — Forms 1120,
changed job locations last year or
the rules for keeping records and 1120-A.
started a new job, you may be able to
reporting tips to your employers. This
deduct your moving expenses. You Pub 544, Sales and Other Dispositions
publication focuses on employees of
may also be able to deduct expenses of of Assets — explains how to figure gain
food and beverage establishments, but
moving to the United States if you and loss on various transactions, such
recordkeeping rules and other informa-
retire while living and working over- as trading, selling, or exchanging an
tion may also apply to other workers
seas or if you are a survivor or depen- asset used in a trade or business. This
who receive tips, such as hairdressers,
dent of a person who died while living publication defines capital and noncap-
cab drivers, and casino dealers. (See
and working overseas. ital assets and the tax results of differ-
Publication 1244.)
Form 3903. ent types of gains and losses.
Forms 4070, 4070A.
Forms 1040 (Schedule D), 4797, 8824.
Pub 523, Selling Your Home — explains
Pub 533, Self-Employment Tax —
how to treat any gain or loss from sell- Pub 547, Casualties, Disasters, and
explains how people who work for
ing your main home. Thefts (Business and Non-Business) —
themselves figure and pay self-employ-
Form, 8828. helps you identify a deductible disaster,
ment tax on their earned income. Self-
casualty, or theft loss. This publication
Pub 524, Credit for the Elderly or the employment tax consists of social
also explains how to figure and prove
Disabled — explains who qualifies for security and Medicare taxes.
your loss and how to treat the reim-
the credit and how to figure it. Form 1040 (Schedule SE).
bursement you receive from insurance
Forms 1040 (Schedule R),
Pub 534, Depreciating Property Placed or other sources.
1040A (Schedule 3).
in Service Before 1987 — Form 4562. Form 4684.
Pub 525, Taxable and Nontaxable
Pub 535, Business Expenses — dis- Pub 550, Investment Income and
Income
cusses in detail common business Expenses — covers investment income
Pub 526, Charitable Contributions — expenses and explains what is and is such as interest and dividends,
describes organizations that are quali- not deductible. expenses related to investments, and
fied to receive charitable contributions. sales and trades of investment property
Pub 536, Net Operating Losses — dis-
It also describes contributions you can including capital gains and losses.
cusses net operating losses (NOLs) for
(and cannot) deduct and explains Forms 1040 (Schedules B, D), 1099-
individuals, estates, and trusts. Such
deduction limits. DIV, 1099-INT, 4952, 6781, 8815.
topics include:how to figure an NOL;
Forms 1040 (Schedule A), 8283.
when to use an NOL; how to claim an Pub 551, Basis of Assets — explains
Pub 527, Residential Rental Property NOL deduction; and how to figure an how to determine the basis of property,
— explains rental income and expenses NOL carry-over. which is usually its cost.
and how to report them on your return. Form 1045.
Pub 552, Recordkeeping for Individuals
This publication also defines other spe-
Pub 537, Installment Sales — explains — highlights and serves as a ready ref-
cial rules that apply to rental activity.
the tax treatment of installment sales. erence on general recordkeeping for
Forms 1040 (Schedule E), 4562.
(Installment sales provide that part or individual income tax filing.
Pub 529, Miscellaneous Deductions — all of the selling price be paid after the
Pub 554, Older Americans’ Tax Guide
identifies expenses you may be able to year of the sale.) If you finance the
— provides helpful information on tax
take as miscellaneous deductions on buyer’s purchase of your property,
topics that may be of interest to older
Form 1040 (Schedule A), such as instead of having the buyer get a loan
Americans. This guide also covers cer-
employee business expenses and or mortgage from a bank (or other
tain provisions that give special tax
expenses of producing income. This lender), you probably have an install-
treatment to them.
publication does not discuss other item- ment sale.
ized deductions, such as the ones for Form 6252.
7
1999 Guide to Free Tax Services
of property you donated to a qualified Pub 584, Casualty, Disaster, and Theft
organization. Loss Workbook (Personal-Use
Call the IRS @ Form 8283. Property) — contains schedules for list-
1-800-829-3676 Pub 564, Mutual Fund Distributions —
ing contents of your residence and for
determining your losses on personal-
explains the tax treatment of distribu-
for a free copy tions paid or allocated to an individual
use property.
of IRS publications shareholder of a mutual fund, and Pub 584SP, Registro de Pérdidas
explains how to figure gain or loss on Personales Causadas por Hechos
the sale of mutual fund shares. Fortuitos (Imprevistos) o Robos —
Forms 1040 (Schedules B, D), (Publication 584 in Spanish.)
Pub 555, Community Property — pro- 1099-DIV.
vides helpful information to married Pub 587, Business Use of Your Home
taxpayers who reside in a community Pub 570, Tax Guide for Individuals (Including Use by Day-Care Providers)
property state — Arizona, California, With Income From U.S. Possessions — — explains rules for claiming deduc-
Idaho, Louisiana, Nevada, New provides tax guidance for individuals tions for business use of your home and
Mexico, Texas, Washington, or with income from American Samoa, what expenses may be deducted.
Wisconsin. If you and your spouse file Guam, the Commonwealth of the
Pub 590, Individual Retirement
separate tax returns, you should under- Northern Mariana Islands, Puerto Rico,
Arrangements (IRAs) (Including Roth
stand how community property laws and the U.S. Virgin Islands. This publi-
IRAs and Education IRAs) — explains
affect the way you figure your income cation also gives information and
the tax rules that apply to IRAs and the
on your federal income tax return. addresses for filing U.S. possession tax
penalties for not following them. Rules
returns, if required.
Pub 556, Examination of Returns, discussed include those affecting con-
Forms 1040, 1040-SS, 4563, 5074,
Appeal Rights, and Claims for Refund tributions, deductions, transfers
8689.
— Forms 1040X, 1120X. (including rollovers) and withdrawals.
Pub 571, Tax-Sheltered Annuity This publication includes tax rules for
Pub 557, Tax-Exempt Status for Your Programs for Employees of Public traditional IRAs, Roth IRAs, SEPs,
Organization — explains the rules and Schools and Certain Tax-Exempt SIMPLEs, and Education IRAs.
procedures that apply to organizations Organizations — explains the rules Forms 1040, 1040A, 5329, 8606.
applying for exemption from federal that apply to tax-sheltered annuities
income tax under section 501 of the Pub 593, Tax Highlights for U.S.
offered by qualified employers to eligi-
Internal Revenue Code. Citizens and Residents Going Abroad
ble employees. Rules discussed include
Forms 990, 990EZ, 990PF, 1023, 1024. — provides a brief overview of various
the limit on elective deferrals, the exclu-
U.S. tax provisions that apply to U.S.
Pub 559, Survivors, Executors, and sion allowance, and the limit on
citizens and resident aliens who live or
Administrators — provides helpful employer contributions that affect con-
work abroad and expect to receive
information for reporting and paying tributions to tax-sheltered annuities.
income from foreign sources.
the proper federal income taxes if you Form 5330.
are responsible for settling a decedent’s Pub 594, Understanding the Collection
Pub 575, Pension and Annuity Income
estate. This publication answers many Process — defines your rights and
— explains how to determine the tax
questions that a spouse or other sur- duties as a taxpayer that owes federal
treatment of distributions received from
vivor faces when a person dies. taxes. This publication also explains
a qualified pension and annuity
Forms 1040, 1041. how the IRS fulfills its legal obligation
income. It also discusses the optional
to collect these taxes.
Pub 560, Retirement Plans for Small tax treatment you can choose to use for
Business (SEP, SIMPLE, and Keogh lump-sum distributions received from Pub 594SP, Comprendiendo el Proceso
Plans) — provides guidance relevant to an employer’s qualified plan (pension, de Cobro (Understanding the Collection
retirement plans available to small busi- from stock bonus, or profit-sharing Process) — (Publication 594 in
nesses (including the self-employed). It plans). Additionally, this publication Spanish.)
covers the simplified employee pen- also covers rollovers and qualified
Pub 595, Tax Highlights for
sions (SEPs), Keogh (H.R. 10), and sav- retirement plans.
Commercial Fishermen — is primarily
ings incentive match plan for Forms 1040, 1040A, 1099-R, 4972.
intended for sole proprietors who use
employees (SIMPLE) retirement plans. Pub 583, Starting a Business and Form 1040 (Schedules C or C-EZ) to
Pub 561, Determining the Value of Keeping Records — provides basic fed- report profit or loss from fishing. This
Donated Property — defines fair mar- eral tax information for people who are publication does not cover corporations
ket value and provides other guidance starting a business. It also provides or partnerships in detail.
that may help you determine the value information on keeping records and Forms 1040 (Schedules C, C-EZ ),
illustrates a recordkeeping system. 1099-MISC.
8
1999 Guide to Free Tax Services
Pub 596, Earned Income Credit — Pub 901, U.S. Tax Treaties — explains Pub 919, Is My Withholding Correct
explains who may receive the credit, the reduced tax rates and exemptions for 2000? — discusses Form W-4 and
how to figure and claim the credit, and from U.S. taxes provided under U.S. tax offers guidance for getting the right
how to receive advance payments of treaties with foreign countries. This amount of tax withheld from your pay.
the credit. publication provides helpful informa- Form W-4.
Forms 1040, 1040A, Schedule EIC, tion for residents of those countries
Pub 925, Passive Activity and At-Risk
EIC Worksheets, W-5. who receive income from U.S. sources.
Rules — Form 8582.
It may be useful to U.S. citizens and
Pub 596SP, Crédito por Ingreso del
residents with income from abroad. Pub 926, Household Employer’s Tax
Trabajo (Earned Income Credit) —
Forms 1040NR, 1040NR-EZ, 8833. Guide (For Wages Paid in 2000) —
(Publication 596 in Spanish.)
identifies “household employees.”
Pub 907, Tax Highlights for Persons
Pub 597, Information on the United Included are tax rules you should
with Disabilities — briefly explains tax
States-Canada Income Tax Treaty — know about when you employ a house-
laws that apply to persons with disabil-
reproduces the text of the U.S.-Canada hold worker such as a babysitter, maid,
ities and directs readers to sources of
income tax treaty and defines its key yard worker, or similar domestic
detailed information, such as Pub 502,
provisions. This publication also worker. This publication explains what
Medical and Dental Expenses; Pub 503,
explains certain tax problems that may federal employment taxes to withhold
Child and Dependent Care Expenses;
be encountered by U.S. residents who and pay and what records to keep.
Pub 524, Credit for the Elderly or the
temporarily work in Canada. Forms 1040 (Schedule H), W-2, W-3,
Disabled; Pub 525, Taxable and
W-4, W-5.
Pub 598, Tax on Unrelated Business Nontaxable Income; and Pub 915,
Income of Exempt Organizations — Social Security and Equivalent Railroad Pub 929, Tax Rules for Children and
explains the tax provisions, that apply Retirement Benefits. For information on Dependents — explains filing require-
to most tax-exempt organizations, and the disabled access credit, see Pub 334, ments and the standard deduction
explains that the tax may apply if an Tax Guide for Small Business. For amount for dependents. This publica-
organization regularly operates a trade business tax information on deducting tion also explains when and how a
or business that is not substantially costs of removing architectural or child’s parents may include their
related to its exempt purpose. transportation barriers, see Pub 535, child’s interest and dividend income on
Form 990-T. Business Expenses. their return and when and how a
child’s interest, dividends, and other
Pub 686, Certification for Reduced Tax Pub 908, Bankruptcy Tax Guide —
investment income are taxed at the par-
Rates in Tax Treaty Countries — explains the federal tax obligations of
ents’ tax rate.
explains how U.S. citizens, residents, persons filing bankruptcy petitions and
Forms 8615, 8814.
and domestic corporations may certify bankruptcy estates.
to a foreign country that they are enti- Forms 982, 1040, 1041. Pub 936, Home Mortgage Interest
tled to tax treaty benefits. Deduction — Form 1040 (Schedule A).
Pub 911, Direct Sellers — provides
Pub 721, Tax Guide to U.S. Civil information on figuring income and Pub 938, Real Estate Mortgage
Service Retirement Benefits — Forms deductible expenses for your direct- Investment Conduits (REMICs)
1040, 1040A. sales business. A direct seller is a per- Reporting Information (and other
son who sells consumer products to Collateralized Debt Obligations
Pub 850, English-Spanish Glossary of
others on a person-to-person basis, [CDOs]) — contains directories of
Words and Phrases Used in
such as door-to-door, at sales parties, or REMICs and CDOs to assist brokers
Publications Issued by the Internal
by appointment in someone’s home. and middlemen with their reporting
Revenue Service
Form 1040 (Schedules C, SE). requirements. Available on the IRS Web
site.
Pub 915, Social Security and
Equivalent Railroad Retirement Pub 939, General Rule for Pensions
Benefits — explains taxability of social and Annuities — covers the method
security and equivalent railroad retire- used to figure the tax-free part of pen-
Access the IRS ment benefits. sion and annuity payments from non-
Forms SSA-1042S and RRB-1042S, qualified plans, using life expectancy
Home Page for IRS SSA-1099 and RRB-1099, Social actuarial tables. The General Rule is
publications @ Security Benefits Worksheets. used primarily for nonqualified plans,
such as purchased commercial annu-
Pub 918, Drafts of Worksheets in IRS
www.irs.gov Publications — available on IRS Web
ities, private annuities, and nonquali-
fied employee plans.
site and IRS CD only.
9
1999 Guide to Free Tax Services
Pub 946, How To Depreciate Property
— Form 4562
Pub 947, Practice Before the IRS and
Power of Attorney — explains who can
Your They’re your pride and joy.
And they can save you up to
represent a taxpayer before the IRS and
what forms are used to authorize a per-
son to represent a taxpayer or to receive
information from IRS regarding a tax-
children
are a real
$500 each, subtracted off your
federal income tax.The ChildTax
Credit is an important benefit
of the Taxpayer Relief Act.
payer.
Forms 2848, 8821.
Pub 950, Introduction to Estate and
Gift Taxes — provides general informa-
credıt
to you.
Who qualifies? Each dependent
child, or descendant, stepchild
or foster child under 17 as of
.
12/31/99 Must be a U.S. citizen
$5oo each
tion on the federal gift and estate taxes. or resident.
It explains when these taxes apply and
Credit is reduced when your
how they can be eliminated or reduced
by the unified credit. modified Adjusted Gross Income
Forms 706, 709. exceeds certain limits. Special
Pub 954, Tax Incentives for rules apply for three or more
Empowerment Zones and Other children.
Distressed Communities For full details, se e your
Pub 957, Reporting Back Pay and 1999 tax booklet. Or check the
Special Wage Payments to the Social IRS Web site: www.irs.gov
Security Administration
Pub 967, The IRS Will Figure Your Tax
— explains the procedures for choosing The Internal Revenue Service Working to put service first
to have the IRS figure the tax on Forms
1040, 1040A, and 1040EZ.
Pub 968, Tax Benefits for Adoption —
Pub 972, Child Tax Credit — provides Pub 1542, Per Diem Rates
explains the adoption tax credit and the
the Child Tax Credit Worksheet for
exclusion from income on certain Pub 1544, Reporting Cash Payments of
those who cannot use the worksheet in
employer-provided amounts you pay Over $10,000 (Received in a Trade or
their Form 1040 or Form 1040A instruc-
to adopt a child. Business) — explains when and how
tions.
Form 8839. persons in a trade or business must file
Pub 1004, Identification Numbers a Form 8300 when they receive cash
Pub 969, Medical Savings Accounts
Under ERISA payments of more than $10,000 from
(MSA) — explains the pilot program for
certain employees of small businesses Pub 1045, Information for Tax one buyer. It also discusses the substan-
and self-employed individuals. This Practitioners tial penalties for not filing the form.
publication also explains what a med- Form 8300.
Pub 1212, List of Original Issue
ical savings account is, who can have Pub 1544SP, Informe de Pagos en
Discount Instruments — helps brokers
one, and how to report it on a tax Efectivo en Exceso de $10,000
and other middlemen identify publicly
return. This publication also explains (Recibidos en una Ocupacion o
offered original issue discount debt
Medicare plus choice MSAs. Negocio) — explains in Spanish when
instruments so that they can file Forms
Forms 8853, 1098-MSA, 1099-MSA. and how persons in a trade or business
1099-OID or Forms 1099-INT as
Pub 970, Tax Benefits for Higher required. This publication also assists must file a Form 8300 or 8300SP when
Education — Form 8863. owners of publicly offered OID instru- they receive cash payments of more
ments to determine the OID to report than $10,000 from one buyer. It also
Pub 971, Innocent Spouse Relief, (And discusses the substantial penalties
on their income tax returns.
Separation of Liability and Equitable for not filing the form.
Relief) — explains who may quality for Pub 1244, Employee’s Daily Record of
relief and how to apply for relief. Tips and Report to Employers — Forms Pub 1546, The Problem Resolution
4070, 4070-A. Program of the Internal Revenue
Service
10
1999 Guide to Free Tax Services
Index of Topics and Related Publications
Look over the following index to find the topic you have questions about. The number listed after
each topic is the related publication. Where more than one number is listed after a topic, bold type
has been used to identify the publication that provides the most detailed information about that topic.
Refer to previous section titled Tax Publications for a brief description of many of the publications
listed below.
A Air transportation of persons or Appraisals (See Valuation)
Abandonment of assets | 544 property, excise tax | 510 Appreciation in value of property:
Abroad, tax highlights for U.S. citizens Air travel facilities excise tax | 510 Charitable donation | 526
and residents going |593 Alcohol fuels credit | 378 Sale of asset | 544
Accelerated cost recovery system Aliens: Armed forces:
(ACRS): Spouses | 3 Alien status | 3
Depreciation | 534 Tax obligations | 3, 519 Combat zone compensation | 3
Accelerated death benefits | 559 Tax treaties, U.S. | 901 Combat zone forgiveness | 3
Accident and health plans | 535 Visitors to U.S. | 513, 519 Decedents | 3
Accident insurance, medical expense Withholding on nonresident | 515 Dependency exemptions | 3, 501
| 502, 554, 907 Alimony | 504 Earned income tax credit | 3, 596,
Accountable plan | 463, 535 Allocated tips | 531 596SP
Accounting periods and methods Alternate depreciation system (ADS) Extension of deadline | 3
| 538, 552, 911 | 946 Filing returns | 3
Accrual method | 538 Alternative minimum tax: Home, sale of | 3, 523
ACRS recovery tables | 534 Corporations | 542 Income taxes on death | 3, 559
ACTION volunteers | 525 Farmers | 225 Itemized deductions | 3
Actuarial tables | 939 Individuals | 596, 596SP, 929 Moving expenses | 3, 521
Adjusted basis (See Basis) Amended returns: Tax liability | 3
Adjustments to income: Claims for fuel tax credit | 378, 556 Taxable and nontaxable income | 3
Alimony paid | 504 U.S. citizens abroad | 54 Transportation expenses of reservists
IRAs (including traditional Roth & Amortization | 535 | 463
education IRAs), contributions to Bond premium | 529, 535, 550 Travel expenses | 3, 463
| 590 Start-up costs | 535, 541, 542 Uniforms | 3, 529
Keogh plan, contributions to | 535, Annuities (See also Pensions): Articles of organization | 557
560 Civil service | 721, 939 Assessments for local improvements
Medical savings accounts | 969 Estate and gift taxes | (Forms 706 & | 530, 535, 551
Moving expenses | 521 709 instructions) Assets (See Property)
Penalty for early withdrawal of Joint and survivor | 575, 939 Associations:
savings | 550 Loans from employer plans Investment clubs | 550
Self-employed health insurance | 560, 575 At-risk rules | 925
| 502, 535 Older persons | 554 Attorney fee:
Self-employment tax | 533, 596, Other than civil service | 575, 939 Business expenses | 535
596SP, 911 Self-employed | 560 Divorce | 504
Administrators of estates | 559, 950 Tax-sheltered | 571 Investment expense | 550
Adoption assistance programs | 968 Tax treatment | 554, 575, 939 Personal legal expenses | 529
Adoption expenses: Variable | 575 Automobile expense (See Car expenses)
Credit for | 968 Withholding on | 505, 575, 721 Aviation fuel, excise tax | 510
Medical expenses, before adoption Anticipated liabilities | 535 Awards and prizes | 525, 535, 911
| 502 Apartment, condominium, cooperative:
Advance payments: Owner’s deductions | 530 B
Earned income tax credit | 596, Rental of | 527 Babysitters | 926
596SP, 926 Sale of | 523 Backup withholding | 505, 550
For sales from services | 538 Appeal of erroneous lien | 594, 594SP Bad debts:
Advertising expenses | 535 Appeal procedures, exempt Business | 529, 535
Age 59 1/2 rule | 590 organizations | 557 Nonbusiness | 550
Age 65 or older: Appeal rights and claims for refund Bankruptcy | 594, 594SP, 908
Standard deduction | 501, 554, 929 | 556 Bar examination fees | 529
Tax credit | 524, 554 Application procedures, exempt Bargain purchases | 526, 544, 551
organizations | 557 Barter income | 525
11
1999 Guide to Free Tax Services
Basis | 550, 551 Bonuses: Car expenses:
Adjusted | 527, 530, 534, 551, 564, Direct sellers | 911 Business | 463, 535, 911
946 Employee | 525 Car pool | 463, 525
Bonds | 550, 551 Employer’s deduction | 535 Charitable | 463, 526
Cars | 463 Books and records, business | 583, 911 Depreciation | 463, 946
Casualty and theft losses | 547, 551 Boycotts, international | 514 Education | 508
Condemnation | 544 Braille materials | 502, 907 Medical | 502
Cost | 551, 564 Bribes and kickbacks | 535 Moving | 521
Gifts | 551, 564 Brokerage fees | 550, 564 Carrybacks and carryovers:
Home | 523, 530 Buildings: Capital loss | 536, 542, 544, 550, 564
Inherited property | 551, 555, 559, Depreciation of | 946 Charitable contributions | 526
564 Sale of | 544 Foreign tax credit | 514
Intangible assets | 551 Burial expenses (See Funeral expenses) General business credit | 225, 334
Mutual funds | 564 Buses, highway use tax | (Form 2290) Investment interest expense | 550
Partner’s interest in partnerships | Business (See also Deductions): Net operating loss | 536, 542
541 Bad debt | 529, 535 Termination of estate | 559
Other than cost | 551 Casualty losses | 547 Carrying charges:
Rental property | 527, 551 Expenses | 463, 535, 555, 911 Capitalizing | 535
S corporation stock | (Form 1120-S Overseas | 953 Straddles | 550
instructions) Sale of interest | 544 Cash method of accounting | 538
Stocks | 550, 551 Start-up costs | 535, 541, 542 Cash or deferred arrangements | 575
Below market loans | 550 Taxes | 535, 583, 911 Cash transactions over $10,000 | 1544,
Beneficiaries: Use of car | 463, 529, 911 1544SP
Annuity | 575, 721 Use of home | 529, 587, 911 Casualty losses, nonbusiness | 547
Estate | 559 Workbook | 584, 584SP
Inheritance | 525, 559 C Cellular telephones | 529, 535, 946
IRA | 590 Cafeteria plans | 535 Cemetery, contribution for | 526
Life insurance | 525 Calendars, tax | 509 Certificates of compliance (See Sailing
Medical savings accounts | 969 Calls and puts | 550 permit)
Bequests (See Gifts, bequests, and Campaign contributions: Charitable contributions (See
inheritances) Business expense | 535 Contributions)
Billing information | 594, 594SP Received | 525 Charitable deductions, estate and gift
Bingo games, exempt organizations Canadian tax treaty | 597 taxes | (Forms 706 & 709
| 598 Contribution | 526 instructions)
Blindness: Cancellation of debt: Chemicals excise tax (See ozone-
Guide animals | 502 Bankruptcy | 908 depleting chemicals)
Medical deduction for special Effect on basis | 551 Child:
schools and equipment | 502 Farmers | 225 Credit for care of | 503
Standard deduction | 501 Income | 525 Divorced or separated parents | 504
Blocked income | 54, 520 Insolvency | 908 Exclusion of dependent care
Blood donations | 526 Qualified real property business assistance benefits for care of| 503
Board and lodging (See Meals and indebtedness | 334 Exemptions | 501
lodging) Cancellation of lease | 521, 544 Support payments | 504, 594, 594SP
Bona fide residence test | 54 Capital assets (See Property) Tax Credit | 17
Bonds: Capital construction fund for: Tax rules | 929
Amortization of premium | 535, 550 Commercial fishermen | 595 Christian science practitioners | 502,
Basis | 550, 551 Capital contributions |542 517
Coupon, stripped | 550, 1212 Capital expenditures: Circulation expenses | 535
Discounted [original issue discount Basis | 551, 946 Citizens abroad | 54, 593
(OID)] | 550, 1212 Business | 535, 911 Civil service annuities:
List of original issue discount | 1212 Medical expense | 502 Community property | 555
Market discount | 550 Capital gain distributions | 550, 564, Disability annuity | 721
Original issue discount (OID) | 550, 929 Retirement annuity | 721
1212 Capital gains and losses (See Gains and Survivors | 721
State or local | 550 losses) Claim procedures | 3, 378, 556, 594,
Treasury | 550 Capitalizing expenses | 535, 911 594SP
U.S. savings | 550 Effect on basis | 551 Clean-fuel vehicle property | 535, 551
Acquired from decedent | 550, 559
12
1999 Guide to Free Tax Services
Cleaning and laundry expenses: Partnership | 541 Special motor fuels | 378
Business expense when traveling Retirement plans (including IRAs) Student credits — Hope, lifetime
| 463 | 535, 560, 590 learning | 970
Work clothes | 529 Valuation | 561 Unified, estate and gift taxes |
Clergy: Convention expenses | 463, 526 (Forms 706 & 709 instructions)
Earned income tax credit | 596, Conversion to rental property: | 950
596SP Personal home | 523, 527, 551 Welfare-to-work | 334, 954
Income | 517, 525 Cooperatives: Withholding tax | 505
Self-employment tax | 15-A, 517, Interest payments | 530, 936 Work opportunity | 334, 954
533, 596, 596SP Owner’s deductions | 530 Crops, unharvested | 225
Social security | 15-A, 517 Rental | 527 Cruise ship | 463
Closing costs | 523, 530, 551 Copyrights: Custodial fees | 529
Clothes, work | 526, 529 Basis | 551 Custodial parent | 501, 504
Club dues | 463, 529, 535 Depreciation | 946 Custody | 501, 504
Collection of income, expenses of | 529, Sale of | 544
550 Corporations | 542 D
Collection process: Corporations electing to be S Damaged property | 334, 547
Income tax accounts | 594, 594SP corporations | (Form 1120-S Damages:
Employment tax accounts | 594, instructions) Compensation for | 525
594SP Corporations, small business stock Medical expenses | 502
Your rights | 1, 1SP, 594, 594SP losses | 550 Severance | 544
Collateralized debt obligations | 938 Cosmetic surgery | 502 Danger pay | 516
(Available on the IRS Web site) Cost annuity | 575, 721, 939 Day care facility | 587
Combat zone: Cost depletion | 535 DC zone assets, exclusion of gains | 954
Compensation exclusion | 3 Cost-of-living allowance | 525 Deaf, guide dogs for | 502
Decedents | 3, 559 Cost of goods sold | 334, 911 Death benefit exclusion | 525, 559, 575,
Extension of deadline | 3 Court, appeal to after examination 721, 939
Filing returns | 3 | 556 Death benefits | 525
Telephone excise taxes | 510 Convenant not to compete (See Debt-financed income or property
Commercial fishermen | 595 Compete, agreement not to) | 598
Commissions | 525 Credits: Debts:
Brokers | 550 Adoption | 968 Bad debts | 535, 550
Direct sellers | 911 Alcohol fuel | 378 Canceled | 334, 525, 551, 908
Sale of home | 523 Aviation fuel | 378 Decedents | 3, 559, 950
Commitment fees | 535 Aviation gasoline | 378 Medical expenses | 502, 559
Communications excise tax | 510 Child and dependent care | 503 Declining balance depreciation | 534,
Community income and property Child tax credit | 17 946
| 504, 555 Compressed natural gas | 378 Deductions:
Commuting | 529, 463 Diesel fuel | 378 Amortization | 535
Compensation | 15-A, 525, 535, 560, 590 Disability, permanent and total | 524 Bad debts:
Damages | 525 Earned income | 3, 555, 596, 596SP Business | 535
Unemployment | 525 Elderly, for | 524, 554 Nonbusiness | 529, 550
Compete, agreement not to | 535, 544, Electric vehicle | 535 Business use of home | 529, 587, 911
946 Empowerment zone employment Car expenses | 463, 911
Computer, home | 529 | 334, 954 Casualty losses | 527, 547
Condemnations | 523, 544 Estimated tax | 505 Charitable contributions | 526, 561
Condominiums | 527 Foreign tax | 514 Community property | 555
Conservation contribution, qualified Gasohol blending | 378 Convention expenses | 463
| 561 Gasoline | 378 Corporations | 542
Contributions: General business | 225, 334 Dental expenses | 502
Appreciated property | 526, 561 Indian employment | 334, 954 Depletion | 535
Capital | 542 Kerosene | 378 Depreciation | 527, 534, 911, 946
Charitable: Liquefied petroleum gas | 378 Disaster area losses | 547
Corporation | 542 Mortgage interest | 530, 936 Dividends received | 542
Estates | 559 (Forms 706 & 709 Prior year minimum tax | 542 Domicile | 555
instructions) Railroad retirement tax, overpaid Educational assistance exclusion
Individuals | 526 | 505 | 508
Non-cash | 526, 561 Social security tax, overpaid | 505 Educational expenses | 3, 508, 529,
970
13
1999 Guide to Free Tax Services
Employee benefit programs | 535 Dependent care assistance programs Medical savings accounts | 969
Employee business expenses | 463 | 535 Mutual funds | 564
Employees | 529 Dependent care credit | 503 Partnership | 541
Employee’s pay | 535 Dependents | 3, 501, 504 Retirement plans | 575, 721
Entertainment expenses | 463 Medical expenses of | 502 S corporations | (Form 1120-S
Meals and entertainment | 535, Rules for children and | 929 instructions)
911 Social security numbers | 501 Dividends | 542, 550, 564
Estate tax | 950 Depletion | 535 Capital gain distributions | 564
Expenses of producing income | 529, Deposits: Children’s | 929
550 Corporate taxes | 542 Estate | 559
Final income tax return of decedent Due dates | 509 Exempt - interest | 564
| 559 Employment taxes | 15 Mutual fund | 564
Fines: Excise taxes | 510 Received, deduction for corporations
Business | 535 Frozen | 550, 590 | 542
Personal | 529 Loss on | 529, 547, 564 Reinvestment of | 550, 564
Foreign housing costs | 54 Depreciation, depreciable property: S corporations | (Form 1120-S
Foreign income taxes | 514 Accelerated cost recovery system instructions)
Fringe benefits | 525, 535 (ACRS) | 527, 534 Divorced taxpayers | 504
Gambling losses | 525, 529 Basis | 527, 551, 946 Exemptions | 501, 504
Gift expenses | 463, 911 Car | 463, 946 Individual retirement arrangement
Home leave | 516 Home, business use | 587, 911 transfer | 590
Home mortgage interest deduction Indian reservations, used on | 954 Doctors, medical | 502
| 530, 936 Home, rental use | 527 Domestic help | 926
Income, expenses of producing Methods | 534, 946 Donations (See Contributions)
| 529, 550 Modified accelerated cost recovery Donee information return | 557
Interest expenses | 535, 550, 911, 936 system (MACRS) | 463, 527, 946 Drilling expenses for oil, gas, and
Investment expenses | 550, 564 Recapture | 544 geothermal wells | 535
IRA contributions | 590 Sale of depreciable property | 544 Drug expenses | 502
Itemized deductions, recovery of Determination letters: Dual status tax year | 519
| 525 Employee benefit plans | 560 Due dates | 509
Keogh plan contributions | 560 Exempt organizations | 557 Dues | 529, 535
Legal expenses: Development expenses for oil, gas, and
Business | 535 geothermal wells | 535 E
Divorce | 504 Diesel fuel credit | 378 Earned income:
Personal | 504, 529 Diesel fuel excise tax | 510 Advance payment | 596, 596SP
Meals and lodging furnished to Direct sellers | 911 Filing requirements, dependents
employees | 535, 595 Directors’ fees | 525 | 501, 929
Medical expenses | 502, 535, 554 Disability: Foreign | 54
Medical savings accounts | 969 Civil service retirement | 721 Tax credit | 3, 596, 596SP
Miscellaneous | 529 Income | 525 Easement | 544
Moving expenses | 3, 521, 554 Persons with a | 502 Contribution of | 561
Partnerships | 541 Tax credit for | 524, 554 Effect on basis | 551
Pension plan, contributions to | 535, Disabled dependent care | 502, 503 Economic performance rule | 538
560, 575 Disaster area losses | 547 Education:
Personal exemptions | 501 Disclosures required | 557, 590 Expenses | 3, 508, 529, 535
Rental expenses | 527 Discount, original issue | 550, 1212 Savings bond program | 550
Section 179 expense | 946 Dispositions: Scholarships and fellowships | 520
Self-employed health insurance Depreciable property | 544, 946 Student credits — Hope, lifetime
| 502, 535, 541 Installment obligations | 537 learning | 970
Standard | 501 Mutual funds | 564 Elderly persons:
Taxes | 334, 530, 535, 911 Partner’s interest | 541 Sale of home | 523, 554
Thefts | 334, 547 Passive activity | 925 Tax credit for | 524, 554
Travel, transportation | 3, 463, 595, Distributions: Elective deferrals | 560, 571, 590
911 Capital gains | 564 Electric vehicle tax credit | 535, 551
Deferrals, elective | 560, 571, 575, 590 Corporate | 542, 550 Embezzlement | 547
Demonstrators | 911 Estates | 559 Employee benefit programs | 535, 560
Dental expenses | 502 Individual retirement arrangements Employee expenses | 463, 529
Departing aliens | 513, 519 (IRAs) | 554, 590 Car | 463
14
1999 Guide to Free Tax Services
Home | 587 Your rights | 1, 1SP Partnerships | 541
Employees, defined | 15-A Excess accumulations, IRA | 590 S corporations | (Form 1120-S
Employees’ pay | 535 Excess contributions, IRA | 590 instructions)
Employer identification number (EIN) Exchanges of property (See Property
| 510, 583, 911, 926 and sales and exchanges) F
Employer-paid Excise taxes | 510 Fair market value:
Accident and health insurance | 535 Credits and refunds of excise taxes Charitable contributions | 526, 561
Adoption expenses | 535, 968 | 378 Defined | 526, 527, 537, 544, 551, 561,
Dependent care | 503, 535 Exclusion of: 946
Education | 508, 535, 970 Capital gains from DC zone assets Mutual funds | 564
Life insurance | 535 | 954 Valuation | 561
Employment abroad: Employer-provided dependent care Family:
U.S. citizens | 54 | 503, 535 Employees | 15, 225, 926
U.S. government civilians | 516 Employer-provided educational Partnerships | 541
U.S. possessions | 570 assistance | 508, 535 Related persons | 544, 550, 946
Employment agency fees | 529 Gain on sale of home | 523 Farmers and farming | 225
Employment taxes: Income earned abroad | 54, 593 Estimated tax | 225, 505
Collection process | 594 U.S. possessions | 570 Federal employees compensation act
Collection process (Spanish) | 594SP Executors of estates | 559 (FECA) payments | 525, 721
Employer information | 15, 583, 911, Exempt income | 525 Federal employees overseas | 516
926 Exempt-interest dividends | 550, 564 Federal insurance contributions act
Exempt organizations | 15-A Exempt organizations | 557 (FICA) | 1517
Household employees | 503, 926 Application procedures | 557 Clergy and religious workers | 1517
Empowerment zones | 954 Filing requirements | 557 Federal retirees | 721
Empowerment zone employment credit Income from unrelated business Federal retirees, disabled | 721
| 334, 954 | 598 Federal unemployment tax (FUTA)
Endowment insurance proceeds | 525 Exemption from withholding | 505 | 15, 926
Enterprise communities | 954 Exemptions | 3, 501, 554 Fees:
Entertainment expenses | 463, 535 Expenses (See particular type of Appraisal | 526, 529, 547, 561
Environmental cleanup costs | 535, 954 expense): Check-writing | 529
Environmental excise taxes | 510 Accrual method | 538 Club dues and membership | 463,
ERISA, identification numbers under | Business | 535, 911 529,535
1004 Going into business | 535, 542, 583 Commitment | 535
Estate and gift taxes | 950 (Forms 706 & Car | 463 Custodial | 529, 550, 564
709 instructions) Cash method | 538 Directors’ | 525
Annual exclusion | 950 Condemnation award, securing Legal | 529, 535
Basis | 559 | 544 License and regulation | 535
Disclaimers | (Forms 706 & 709 Decedent, in respect of | 559 Personal services | 525
instructions) Employee | 463 Service, broker | 529, 550, 564
Divorced or separated | 504 Exploration, mineral deposits | 535 Fellowships | 520
Filing requirements | 559, 950 Foreign housing costs | 54 Fiduciaries | 559
Interrelated computations | 904 Income-producing | 529, 550 Filing requirements:
Marital deduction | 950 Inventory | 911 Age 65 or over | 501, 554, 915
Unified credit | 950 Investment | 550 Corporations | 542
Unified rate schedule | (Forms 706 & Personal | 529, 911 Dependents | 501, 929
709 instructions) Receipts | 552 Employee benefit plans | 1004
Valuation methods | (Forms 706 & Recovery of | 525 Estates | (Forms 706 & 709
709 instructions) Rental | 527 instructions)
Estates and trusts, income from | 525, Extension of time to file tax return: Excise taxes | 510
559 Corporations | 542 Exempt organizations | 557, 598
Estimated tax: Estate | 950 (Forms 706 & 709 Gift taxes | (Forms 706 & 709
Corporations | 542 instructions) instructions)
Exempt organizations | 598 Income | 559 (Form 1041 Information returns | 911
Farmers | 225 instructions) IRA | 590
Fishermen | 595 Gift | (Forms 706 & 709 instructions) Partnerships | 541
Individual | 505, 520, 911 Income |4, 501, 929 S corporations | (Form 1120-S
Nonresident aliens | 519 Living abroad |54 instructions)
Examination of returns | 556 Members of armed forces | 3 Filing status | 501, 554
15
1999 Guide to Free Tax Services
Gift tax (See also Estate and gift taxes)
| 504, 950
don’t
What’s more, you can convert
many traditional IRA accounts Gifts, bequests, and inheritances | 559,
You to a Roth IRA. And you can 950
pay tax
contribute to a Roth IRA after Basis | 551, 559
the age of 70 1/2.
You will need to meet the Business | 463
guidelines, and make careful Depreciable property | 544
on a comparisons to determine Exclusion from income | 525
Roth
which choice is best for you.
Home | 523
Other IRA options also offer
tax advantages. For example, Mutual funds | 564
you can withdraw up to Partnership interest | 541
This is the big attraction of a $10,000 from most IRA Property received as | 559
I R A Roth IRA—you don’t pay tax
when you make a qualified
withdrawal, not even on the
earnings and gains that build up.
accounts without paying an
early-withdrawal tax, if you use
the funds to buy a first home or
pay for higher education.
Survivor annuities | 559, 575
Going-into-business expenses | 535,
541, 542
You must follow certain rules, For all the facts on Roth and Goodwill:
such as holding the Roth IRA other IRA benefits, see your
for at least 5 years and reaching 1999 tax booklet. Or check the
Amortization | 535, 946
the age of 591/2. IRS Web site: www.irs.gov Basis | 551
Depreciation | 534, 946
The Internal Revenue Service Working to put service first Sale of | 544
Government officials | 529
(See Officials)
Grants | 520
Final return, individual | 559 G Gross estate | (Forms 706 & 709
Fines | 529, 535 Gains and losses | 544, 550
instructions)
Fire losses | 527, 547 Basis | 550, 551
Gross income test, dependents | 501
First-in first-out (FIFO) inventory Capital gain distributions | 550, 564
Gross profit on sales | 911
method | 538, 911 Casualty losses | 527, 547
Gross profit percentage | 537
Fishermen, commercial | 595 Condemnation | 544
Ground rent | 530, 936
Fishing expenses | 595 Corporations | 542
Group exemption letter | 557
Five-year or ten-year tax options, Depreciable property | 544
Group health plans | 535
pension lump-sums | 575 Employee stock options | 525
Group-term life insurance | 525, 535
Fixing-up expenses, home | 523 Estate | 559
Guaranteed payments to partners | 541
Flood losses | 547 Investment property | 550
Guaranteed annual wage | 525
Foreclosures | 544 Liquidating dividends | 550
Guide dogs for the blind and deaf
Foreign: Loss on savings deposits | 529, 550
| 502, 554
Convention expenses | 463 Mutual funds | 564
Corporations, withholding on | 515 Nonresident aliens | 519
H
Earned income | 54 Partner’s interest | 541
Health insurance | 502, 535, 554, 969
Employer | 525 Rental property | 527
Hearing aids | 502
Income taxes | 514 S corporations | (Form 1120-S
Heavy highway-vehicle-use tax
Moving expenses | 3, 54, 521 instructions)
| (Form 2290)
Person, disposition of U.S. real Sale of assets | 544, 550
Highlights of tax changes | 553
property by a | 515 Sale of home | 523, 554
Holding period | 523, 544, 550
Service representation and official Stock options | 550
Home:
residence expenses | 516 Theft losses | 527, 547
Business use of | 529, 587, 911
Tax credit | 514 Gambling winnings and losses | 525,
Changed to rental | 527, 551, 946
Visitors to the United States | 513, 529
Computer | 529
519 Withholding requirements, winnings
Construction | 523
Franchises | 535, 544, 551 | 505, 515
First-time owner’s deductions | 530
Fraternal societies, contributions to Gas guzzler excise tax | 510
Main | 523
| 526 Gasohol tax, credit or refund | 378, 510
Mortgage interest deduction | 530,
Fringe benefits | 525, 535 Gasoline excise taxes | 510
936
Withholding | 15-A, 505 Gasoline tax, credit or refund | 378
Purchase | 530
Fuel tax credit or refund | 378, 595 General business credit | 225, 334
Repairs and improvements | 530
Fulbright grants | 54, 520 General depreciation system (GDS)
Sale of | 3, 523
Funeral expenses: | 527, 946
Tax | 463
Estates | 559 General rule, annuities | 939
Hope Credit | 970
Individuals | 502, 529 Gift expenses | 463, 911
16
1999 Guide to Free Tax Services
Hospital insurance (See Social security) Taxes on death | 3, 559 Home mortgage | 530, 936
Hospitalization | 502, 554 Tips | 531, 1244 Limit on home mortgage
Household employers | 503, 926 Unemployment compensation | 525 interest | 936
Housekeeper, child care | 503, 926 Unrelated business, exempt Investment | 550, 564
Housing allowances | 525 organization | 598 Prepaid interest | 530, 535
H.R. 10 plans | 560 When included | 538 Unstated | 537
Income tax withholding | 505, 515 International air travel facilities, excise
I Indebtedness (See Debts) tax | 510
Identification numbers: Indefinite assignment | 463, 970 International boycott | 514
Adoption | 501, 968 Indian employment credit | 334, 954 Interrelated computations, estate and
Aliens | 501, 519 Indian reservations, depreciation | 954 gift taxes | 904
Employer | 225, 334, 583, 911, 926 Individual retirement arrangements Interview expenses:
ERISA | 1004 (IRAs) | 3, 535, 554, 590, 970 Business | 535
Social security | 501 Inheritance (See Gifts, bequests, and Reimbursed | 525
Impairment related | 529 inheritances) Inventories | 538, 911
Importers, excise taxes | 510 Innocent spouse relief | 971 Substantially appreciated in value
Improvements and repairs: Installment: | 541
Assessments for | 527, 530 Agreements | 594, 594SP Uniform capitalization rules | 538
Business property | 535 Obligations, disposition of | 537 Investment:
Depreciation | 946 Payments, estate tax | (Forms 706 & Annuity contract | 575
Home | 530 709 instructions) Clubs | 550
Rental property | 527 Payments, highway-use tax Counsel fees | 550, 564
Selling home | 523 | (Form 2290) Income and expenses | 550, 564, 929
Inclusion amount | 463 Sales | 537 Interest | 550, 564
Income (See particular type of income) Insurance: Property | 550
| 525 Accident and health | 535 Investigation, crime | 529
Accrual of | 538 Beneficiaries | 559 Involuntary conversions | 544, 547, 551
Advance income | 538 Business, deductible and Itemized deduction recoveries | 525
Alimony | 504 nondeductible premiums | 535
Clergy | 517, 525 Casualty losses | 547 J
Collection process | 594 Employer-financed | 525 Job:
Collection process (Spanish) | 594SP Estate tax | (Forms 706 & 709 Empowerment zone employment
Combat zone compensation | 3 instructions) credit | 334, 954
Constructive receipt | 525, 538 Foreign insurer, excise tax | 510 Expenses of looking for a new job
Corporate | 542 Group-term life | 525, 535 | 529
Cost of goods sold | 334, 538, 911 Home | 529 Indian employment credit | 334, 954
Decedent, in respect of | 3, 559 Interest on policy | 550 Interview | 535
Disability | 525, 554, 907 Life | 525, 529, 535, 554 Moving expenses | 521, 535
Effectively connected with U.S. trade Malpractice | 529 Transportation expenses | 463, 911
or business | 519 Medical | 502, 535, 554 Travel expenses | 463, 911
Foreign source | 54 Medical for self-employed | 502, 535, Welfare-to-work credit | 334, 954
Investment | 550 554 Work opportunity credit | 334, 954
Leasing a car | 911 Proceeds, life | 525 Joint and survivor annuities | 575, 939
Miscellaneous | 525 Thefts | 547 Joint interests, gross estate | (Forms 706
Mutual fund distributions | 564 Interest income: & 709 instructions)
Nontaxable | 3, 525, 554 Below-market loans | 525, 550 Joint return:
Other than cash | 525 Children’s | 929 Decedent and surviving spouse | 3,
Partnership | 541 Education savings bond program 501, 559
Railroad retirement benefits | 525, | 550, 970 Filing | 501
554, 915 General | 550, 554 Nonresident aliens | 3, 519
Recapture of depreciation | 537, 544, Original issue discount (OID) | 550, Signing | 501
946 1212 Jury duty fees | 525
Rental | 527 Unstated | 537
S corporations | (Form 1120-S Interest expense: K
instructions) Below-market interest rate loans Keogh plans | 535, 560
Social security benefits | 525, 554, | 535 Kerosene tax credit | 378
915 Business | 535, 911 Kerosene excise tax | 510
Taxable | 3, 525 Capitalization of | 535 Kickbacks | 535
17
1999 Guide to Free Tax Services
L Deposits | 529, 547, 550 Charitable travel | 526
Land (See Real property) Disaster | 547 Furnished to employees | 535, 595
Last-in first-out (LIFO) inventory Workbook | 584 Medical expenses | 502, 554
method | 538, 911 Estate | 559 Moving expenses | 3, 521, 535
Leases | 535 Exchange of property | 544, 550, 551 Per diem rates | 1542
Cancellation | 521 Gambling | 529 Standard meal allowance | 463
Cars | 463, 911 Home, sale of | 523 Taxability of reimbursements | 3, 525
Leveraged | 535 Involuntary conversions | 544, 547, Medical savings accounts | 969
Legal expenses (See Attorney fee) 551 Decedent | 559
Letters, memoranda, etc. | 544 IRA investments | 590 Medical reimbursement plans | 535
Levy | 594, 594SP Mutual funds | 564 Medical expenses | 502, 554, 934
Liabilities: Net operating | 536, 542 Decedent | 502, 559
At-risk rules | 925 Options | 550 Guide dogs for blind and deaf | 502,
Contested | 535, 538 Partnerships | 541 554
Partnership | 541 Passive activity limits | 925 Insurance for self-employed | 502,
Release from | 525 Recovery in later year | 525, 547 535, 554
License fees | 529 Related party transactions | 550 Medical savings accounts | 559, 969
Lien | 594, 594SP Rental | 527 Medicare | 502, 554
Lifetime learning credit | 970 Reporting | 544, 547, 550 Reimbursement | 502
Like-kind exchanges | 544, 550, 551 S corporations | (Form 1120-S Schools, special | 502
Limits: instructions) Medical savings accounts | 535, 969
Business meals and entertainment Sales and other dispositions | 544, Medicare tax (See Social security)
| 463 550, 564 Memberships, club dues | 463, 529, 535
Casualty, disaster, theft loss Section 1231 | 544 Mileage allowances:
deductions | 547 Section 1244 stock | 550 Business car | 463, 535, 911
Charitable contribution deductions Small business corporation | 550 Charitable contributions | 526
| 526 Straddles | 550 Medical expenses | 502, 554
Depreciation of business car | 463 Thefts | 547 Moving expenses | 521
Home mortgage interest deduction Wash sales rules | 550 Military personnel (See Armed forces)
| 936 Worthless securities | 550 Mines | 535
IRA contributions and deductions Lost property | 547 Minimum distributions:
| 590 Lump-sum payments: IRAs | 590
Liquidation: Civil service annuities | 721 Retirement plans | 575
Distributions in | 550 Employees’ plan | 554, 575 Minimum tax credit | 542
Partner’s interest | 541 Retirement annuities | 554, 575 Ministers (See Clergy)
Listed property | 534, 946 Rollover, tax-free | 575, 590 Miscellaneous deductions | 529
Cars | 463, 946 Special 5-year or 10-year tax options Modified accelerated cost recovery
Livestock, raised | 225 | 575 system (MACRS) | 946
Loan origination fees (points) | 530, Wages | 525 Mortgage assistance payments | 525,
535, 551, 936 Withholding on | 505 936
Loans, interest on: Luxury excise taxes | 510 Mortgage credit certificates | 530
Below market | 525, 535, 550 Mortgaged property:
Business expense | 535, 911 M Sale of | 544
Lobbying expenses | 529, 535 MACRS percentage tables | 946 Contribution of | 526
Exempt organizations | 557 Main home | 523 Mortgages:
Lockout and strike benefits | 525 Maintenance of household: Basis | 551
Lodging and meals furnished to Child and dependent care | 503 Installment sales, assumed |537
employees | 535 Divorced or separated | 504 Interest deduction, home | 530, 936
Long-term care | 502 Exemptions | 501 Property exchanged, effect on | 544
Long-term gains and losses | 550, 564 Head of household | 501 Motor fuels excise tax, special | 510
Losses: Household employer | 926 Motor vehicle, excise tax | 510
Abandonment | 544 Manufacturers excise taxes | 510 Moving expenses | 3, 521, 535
At-risk limits | 925 Excise taxes | 510 Foreign move | 3, 54, 516, 521
Bad debt | 535, 550 Marital deduction, estate and gift taxes Multiple support agreement | 501
Business expenses | 535 | (Forms 706 & 709 instructions) Municipal bonds | 550
Business property | 544 Market discount bonds | 550 Musical compositions, sale of | 544
Casualty | 547 Meals and lodging: Mutual funds | 550, 564
Condemnations | 544 Business travel | 463, 535, 911
18
1999 Guide to Free Tax Services
N Passive activities | 925 Personal exemption | 501, 554
Net operating losses | 536, 542 Patents: Personal injury, damages | 502, 525
Non-accountable plan | 463, 535 Basis | 551 Personal property:
Nonbusiness bad debt | 550 Depreciation | 946 Depreciation | 534, 946
Nondeductible contributions: Payments: Installment sales | 537
IRAs | 590 Beneficiaries, to | 559 Repossessions | 537, 544
Keogh plans | 560 Cash, large | 1544, 1544SP Sale of | 544
Nonresident aliens | 3, 513, 519, 559 Employee plans | 535, 560 Section 1245 | 544
Beneficiaries of estate | 559 Installment | 537, 594, 594SP Physical presence test | 54
Joint return | 519 Large cash | 1544, 1544SP Points | 521, 523, 530, 535, 551, 936
Withholding on | 515 Procedures | 594, 594SP Political contributions | 529, 535
Nonresident U.S. citizens | 54, 593 Peace Corps | 516, 525 Pollution control facilities | 535
Nontaxable exchanges | 544, 550 Penalties: Possessions, U.S., exclusion for citizens
Nontaxable income | 525, 554 Accuracy related | 550, 911 in | 570
Notes, interest on | 550 Business | 594 Post differentials | 516
Nursing services | 502, 554 Deductibility | 535 Power of attorney | 556, 947
Early withdrawal of savings | 550 Practice before the IRS | 947
O Estimated tax | 505 Premature distributions:
Offers in compromise | 594, 594SP Excessive credit or refund claimed IRA | 554, 590
Office expenses | 535 | 378 Keogh plan | 560
Office in home | 529, 587, 911 Failure to file | 911 Pension plan | 575
Officials | 463 Failure to pay | 911 Premium, bond amortization | 535, 550
Oil and gas property: Failure to report large cash payment Prepaid
Depletion | 535 | 1544, 1544SP Expenses | 535, 538
Drilling and development expenses False or fraudulent claims | 378 Interest | 535, 936
| 535 Filing late | 510, 594, 594SP Medical insurance | 502, 554
Operating loss, net | 536, 542 Frivolous return | 911 Present value, annuity | 575, 721
Operation desert shield/storm: Information reporting | 911 Privacy act notice | 594, 594SP
Combat zone compensation IRAs (including traditional, Roth, Private foundations | 557
exclusion | 3 and education IRAs) | 590 Prizes and awards | 525, 911
Decedents | 3 Overstating the value of donated Professional expenses | 529
Extension of deadline | 3 property | 561 Prohibited transactions | 560, 590
Filing returns | 3 Paying late | 510, 594, 594SP Prompt assessment, request for | 559
Options | 525, 550 Tax deposits not made | 510, 594, Property:
Employee stock | 525 594SP Abandoned | 523, 544, 946
Stock | 550 Trust fund recovery | 594, 594SP Appreciation in value | 544
Original issue discount (OID) | 550, Underpayment of tax | 505 Assessments | 535
1212 Pensions: Basis | 551, 946
Original issue discount obligations, list Civil service | 721, 939 Business, sale of | 544
of | 1212 Loans from employer plans | 554, Business use, partial | 463, 587
Out-of-pocket expenses, contributions 560, 575 Capital assets | 544, 550
| 526 Lump-sum distributions | 554, 575, Casualty losses | 547
Overseas: 590, 721 Change to business or rental use
Business | 953 Other than civil service | 575, 939 | 551
Citizens and residents, U.S. | 54 Self-employed, retirement plans for Charitable contributions | 526, 561
Government, U.S., civilian the | 560 Community | 551, 555
employees | 516 SIMPLE IRA plan | 560, 590 Condemned | 544
Possessions, U.S. | 570 Simplified employee pension (SEP) Depletion | 535
Scholars | 520 | 535, 560, 590 Depreciable | 534, 946
Tax highlights, citizens and residents Small business, retirement plans for Donated | 526, 561
| 593 | 560 Estate (Form 706 instructions) | 559
Ozone-depleting chemicals excise tax Taxation of | 554, 575, 939 Exchanges | 544, 550, 551
| 510 Withholding on | 15-A, 505, 575, 721 Gifts | (Forms 706 & 709
Percentage depletion | 535 instructions)
P Per diem allowances | 463, 535, 1542 Inherited | 544, 551, 559
Paid-in capital | 542 Performing artists | 529 Installment sales | 537
Parking fees and tolls | 463 Permanent and total disability: Intangible | 544, 551, 946
Partial liquidation (See Liquidation) Credit | 524, 554 Investment | 550
Partners and partnerships | 541 Defined | 524
19
1999 Guide to Free Tax Services
Involuntary conversion | 544, 547, Records and record keeping Rental:
551 requirements: Advance rent | 527
Leased | 535, 946 Car expenses | 463, 911 Allowance, clergy | 517
Cars | 463 Charitable contributions | 526 Business expenses | 535
Like-kind | 544, 550 Credit or refund claims | 378 Cars | 463, 911
Received for services | 525 Employee’s business expenses | 463 Expenses | 527
Recovery property, percentage tables Employment taxes | 926 Home, use of | 527, 911
| 534, 946 Entertainment | 463 Income | 527
Rental | 527 Excise taxes | 510 Passive activity rules | 527, 925
Repossessions | 523, 537, 544 Gambling | 529 Property | 527
Sales and exchanges | 544, 550 Gifts, business | 463, 911 Sale of property | 544
Section 179 | 946 Home ownership | 530 Temporary, sale of home | 523
Section 1231 gains and losses | 544 Individuals | 552 Repairs and improvements (See
Section 1244 stock | 550 Listed property | 534, 946 Improvements and repairs)
Section 1245 | 544 Medical | 502 Repayment of items previously
Section 1250 | 544 Small business | 583, 911 reported as income | 525
Section 1256 contracts | 550 Tip Income | 531 Replacement period:
Settlements | 504 Travel | 463, 911 Home | 3, 523
Taxes | 535 Recoveries: Involuntary conversions | 544, 547
Theft losses | 547 Bad debt | 535 Reporting requirements:
Prosecution, crime | 529 Expenses | 525, 535 Additional taxes | 590
Protective clothing | 529 Income | 525 Cash payments, large | 1544, 1544SP
Protest, written, after examination Itemized deductions | 525 Charitable contributions | 526, 561
| 556 Losses | 547 Sale of main home | 523
Public assistance payments | 525 Tax refunds | 525 Tip Income | 531
Public safety officer’s benefits | 525, Recovery property | 534, 946 Withholding taxes | 15
559 Disposition of | 544 Repossessions | 537, 544
Puts and calls | 550 Reforestation expenses | 535 Representation | 594, 594SP, 947
Refund feature, annuities | 939 Required distributions:
Q Refunds: IRAs | 590
Qualified domestic relations order Claim for | 3, 556 Retirement plans | 575
(QDRO) | 504, 590 Decedents | 3, 559 Research and experimentation expenses
Qualified joint interest | 551 Excise taxes | 378, 595 | 535
Qualified plans | 535, 560 Net operating loss | 536, 542 Residence (See Home)
Qualified zone academy bonds | 954 State income tax | 525 Residence test, bona fide | 54
Reimbursements and allowances: Resident aliens | 519
R Accountable plan | 463, 535 Retained earnings | 542
Railroad retirement benefits | 525, 554, Car expenses | 3, 463, 911 Retirement:
575, 915 Casualty or theft losses | 547 Bonds | 550
Real estate investment trust (REIT) Employee’s expenses | 3, 463 Income | 554
| 550 Involuntary conversions | 544 IRAs | 554, 590
Real estate mortgage investment Medical expenses | 502 Self-employed individuals, plans for
conduit (REMIC) | 550, 938 Moving expenses | 3, 521, 535 | 535, 560
Real estate taxes | 523, 530, 535 Nonaccountable plan | 463, 535 Returns:
Real property: Travel, transportation | 3, 463, 535, Child’s | 929
Basis | 551, 559 911 Corporation | 542
Depreciable | 534, 544, 946 Reinvested dividends | 550, 564 Decedent | 559
Foreign investment in U.S. | 515, 519 Related persons: Dependent’s | 929
Installment sales | 537 Dependents | 501 Donee information | 557
Passive activity rules | 925 Employee’s expenses | 463 Due dates | 3, 509
Rental | 527 Gains and losses on transactions Employment tax | 15
Repossessions | 537 | 544, 550, 564 Estate | (Forms 706 & 709
Sale | 544 Relatives, payments to | 503 instructions)
Taxes | 551 Religious organizations, contributions Income | 559 (Form 1041
Trade or business | 544 to | 526 instructions)
Valuation, estate | (Forms 706 & 709 Religious workers, social security for Excise | 510
instructions) | 15-A, 517, 533 Exempt organization business
Rebates | 525 Relocation payments | 521 income tax | 598
Recapture of depreciation | 544, 946 REMICs | 550, 938 Fiduciary | 559
20
1999 Guide to Free Tax Services
Gift | (Forms 706 & 709 instructions) Cars | 463 Small business investment company
Heavy highway-vehicle-use tax Section 401(k) plans | 560, 575 stock | 550
| 510 Section 444 election | 538 Small business, record-keeping for a
Individual, final | 559 Section 501(c)(3) organizations | 557 | 583
Information | 334, 557, 911 Section 911 exclusion | 54 Small business stock | 550
Nonresident alien | 519 Section 1231 gains and losses | 544 Social security and Medicare:
Partnership | 541 Section 1244 stock | 550 Aliens | 519
Political activity | 557 Section 1245 property | 544, 946 Benefits | 525, 915
S corporations | (Form 1120-S Section 1250 real property | 544 Christian science tax professionals
instructions) Section 1256 contracts | 550 | 517
Rights as a taxpayer | 1, 1SP Securities, worthless | 550 Church employees | 557
Rollover of gain from sale of securities Seizure and sales | 594, 594SP Clergy, religious workers | 517, 533
| 550 Self-employed medical insurance | 502, Household workers | 926
Rollovers to an IRA | 571, 575, 590 535 Social security numbers for
Royalty income | 525 Self-employed, medical savings dependents | 501
account | 969 Social security numbers for earned
S Self-employed, retirement plans for the income tax credit | 501, 596
S corporations | (Form 1120-S | 535, 560, 590 Taxable benefits | 525, 554, 915
instructions) Self-employment contribution act Taxes | 15, 15-A, 225, 533, 926
Sailing permit | 513, 519 (SECA) Withholding on benefits | 505
Salaries | 525, 535 Clergy and religious workers | 517 Withholding requirements | 15, 15-A
Salary reduction arrangement | 560, Self-employment income | 517, 533, 911 Sole proprietorship, sale of | 544
571, 575, 590 Clergy | 517 Spanish language publications:
Sales and exchanges: Self-employment tax | 533, 595, 911 Earned income tax credit | 596SP
Basis | 550, 551 Exemption from | 517 How to prepare the federal income
Inherited property | 559 Selling expenses: tax return | 579SP
Nontaxable exchanges |551 Home, sale of | 523 Nonbusiness disaster, casualty, and
Taxable exchanges | 551 Separated spouses | 504 theft loss workbook | 584SP
Business property | 544 Community property states | 504, The collection process | 594SP
Depreciable property | 544 555 Your rights as a taxpayer | 1SP
Foreign move | 54 Separate maintenance decree | 504 Specialized small business investment
Holding period | 544, 550 Separation agreement, alimony | 504 company | 550
Home | 523 Series E, EE, H, and HH bonds | 550 Sporting events, college | 526
Age 55 or older | 523, 554 Settlement costs | 530, 551 Spouse:
How to report | 544, 550 Severance damages | 544 Alien | 3, 519
Installment | 537 Severance pay | 525 Business expenses for | 463
Investment property | 550 Sewer assessments (See Assessments Child and dependent care credit
Like kind | 544, 550 for local improvements) | 530 | 503
Mutual funds | 564 Shareholder, corporation choosing not Divorced | 504
Nonresident aliens | 519 to be taxed | 550 Exemption for | 501, 504
Nontaxable exchanges | 544, 550 Shareholder, mutual funds | 564 IRA for | 590
Partnership interests | 541 Ship passenger excise tax | 510 Medical expenses of | 502, 554
Passive activity interests | 925 Short sale of stock | 550 Surviving | 559
Patents and copyrights | 544 Short tax year | 538 Standard deduction | 501, 554, 929
Personal items | 525, 911 Depreciation | 534, 946 Standard meal allowance | 463
Reporting | 544, 550 Short-term gains and losses | 544, 550, Standard mileage rate | 463
Sales tax | 535 564 Start-up costs, amortization | 535, 541,
Salvage value | 534 Sick pay (See also Disability): 542
Savings account interest | 550 Reporting | 15-A Starting a business | 583
Savings bonds, U.S. | 550, 559 Tax withholding on | 505 State or local bonds | 550
Savings incentive match plans for SIMPLE IRAs State income tax refunds | 525
employees (SIMPLE) plans Treatment by employee | 590 State or local income taxes | 535
Treatment by employees | 590 SIMPLE retirement plans | 560 State or local transfer taxes | 550
Schedule D (capital gain) tax Simplified employee pension (SEP): Statute of limitations | 594, 594SP
computation | 550, 564 Treatment by employee | 590 Stock:
Scholars and scholarships | 4, 519, 520 Treatment by employer | 535, 560 Basis | 550, 551
Scrip dividends | 550 Simplified method, pensions | 554, 575, Charitable donation of | 526, 561
Section 179 expense deduction | 911, 721 Compensation paid in | 525, 535
946 Distribution of | 542, 550
21
1999 Guide to Free Tax Services
Dividends | 542, 550 Support, decree of | 504 Real estate | 530
Employee options | 525 Support of dependents | 3, 501, 504 Refunds | 378, 525, 556, 595
Exchange of (trades) | 544, 550 Survivor: Self-employment | 533, 595, 911
Identifying | 550 Annuities | 559, 575, 721 Unrelated business income | 598
Investment income and expense Of federal employee | 721 Taxpayer identification
| 550 Of federal retiree | 721 Teachers, education expenses | 508
Mutual funds | 564 Survivors, general | 559 Telephone:
Options | 550, 525 Cellular | 529, 535
Sale of | 550 T Excise tax | 510
Short sales | 550 Tangible property, depreciation of | 946 Residential | 529, 535, 911
Small business | 550 Tax calendars for 2000 | 509 Temporary assignment | 463
Splits | 550 Tax changes, highlights of 1999 | 553 $10,000, cash payments over | 1544,
Wash sales | 550, 564 Tax computation (capital gain) | 550 1544SP
Worthless | 550 Tax counsel fees | 504, 529 Ten-year or five-year averaging,
Stockholders: Tax court | 556 lump-sum pensions | 554, 575
Contribution by | 542 Tax credit (See Credits) Termination, estate | 559
Distribution of property | 542 Tax-exempt: Theft losses | 547
Investments | 550 Bond financing | 954 Threat of condemnation | 544
Meetings | 529 Interest | 550, 564 Timber, coal, and iron ore:
S corporations | (Form 1120-S Mutual funds | 564 Depletion | 535
instructions) Organizations | 557 Sale of | 225, 544
Transactions with corporations | 542 Scholarship | 520 Tips | 531, 1244
Stolen or embezzled property | 547 Tax-free exchanges | 544, 550, 551 Report of, for employees | 531, 1244
Storm damage | 547 Tax home | 463 Reporting rules for employers | 531
Straddles | 550 Tax obligations, aliens | 519, 927 Tax withholding | 505
Straight line depreciation | 534, 946 Taxpayer advocate service | 1, 1SP, 17, Tools | 529
Street assessment (See Assessments for 225, 334, 594, 594SP Trademarks and trade names | 535,
local improvements) Tax penalties, estimated tax | 505 544, 551, 946
Strike and lockout benefits | 525 Tax preparation | 529 Trades, nontaxable | 550, 551
Students: Tax-sheltered annuities | 571 Transfer, moving expenses | 521
Charitable contribution for expenses Tax shelters | 550 Transient workers | 463
of | 526 Tax treaties: Transportation and travel expenses:
Credits — Hope, lifetime learning Canada | 597 Business | 3, 463, 535, 595, 911
| 970 Reduced tax rates | 519, 686, 901 Charitable | 526
Exemptions, dependency | 501 U.S. citizens and residents overseas Educational | 3, 508
Expenses | 508 | 54 Employee | 463
Guide to federal income tax | 4 Withholding on nonresident aliens Investment-related | 529, 550
Interest paid on loans | 970 | 515, 519 Medical | 502
Scholarships | 520 Tax withholding (See Withholding) Moving | 3, 521
Subchapter C corporations (See Tax year | 538 Reimbursements | 535, 911
Corporations) Taxable and nontaxable income | 3, 525 Rental | 527
Subchapter S corporations (See S Taxable estate | (Forms 706 & 709 Reservists | 463
corporations) instructions) Transportation of persons or property
Subdivisions of land | 551 Taxable gift | (Forms 706 & 709 by air, excise tax | 510
Subscriptions, professional journals instructions) Transportation of persons by ship | 510
deductibility | 529, 535, 911 Taxable income defined | 525 Treasury bills, bonds, and notes | 550,
Substantiation: Taxable income, estate | 559 (Form 559
Appraisals: 1041 instructions) Treaties, tax | 54, 515, 519, 597, 901
Donated property | 526, 529, 561 Taxes: Treaty countries, certification for
Car expenses | 463, 911 Business | 535, 583 reduced tax rates | 686
Casualty or theft losses | 547 Deductibility | 530, 535 Trucks:
Entertainment expenses | 463, 911 Employment | 15, 15-A, 926 Heavy highway-vehicle-use tax
Gift expenses | 463, 911 Estate | (Form 706 instructions) | Form 2290
Itemized deductions | 552 Income | 559 (Form 1041 Retail excise tax | 510
Travel, transportation | 463, 911 instructions) Trust fund recovery penalty | 594,
Supplemental unemployment benefits Estimated | 225, 505, 542, 595, 911 594SP
| 525 Excise | 378, 510, 590 Trusts (See Estates and trusts)
Supplies and materials | 535, 911 Foreign | 514 Tuition reduction | 520
IRAs | 590
22
1999 Guide to Free Tax Services
U Wagering (See Gambling winnings and Work clothes | 529
Unadjusted basis, depreciation | 463, losses) Work opportunity credit | 334, 954
527, 946 Wages | 525 Workers’ compensation insurance | 525
Underpayment penalty | 505 Wash sales | 550 Worthless debts:
Undistributed capital gains | 564 Welfare benefit funds | 535 Business | 535
Unemployment compensation | 525 Welfare-to-work credit | 334, 954 Nonbusiness | 550
Withholding on | 505 Withholding:
Unemployment tax (FUTA) | 15, 926 Backup | 505, 550, 594, 594SP Y
Uniform capitalization rules | 551 Correct | 919 Year deductible | 538
Uniforms | 3, 526, 529 Credit for | 505 Year taxable | 538
Union: Dispositions, U.S. real property Your rights as a taxpayer | 1, 1SP
Assessments | 529 interest | 515, 519
Benefits | 525 Employer information, reporting
Dues | 529 requirements | 15
Unpaid expenses | 535 Exemption from | 505, 929 Numbers
Unrealized receivables, partnership Foreign corporations | 515
| 541 Forms W-2, W-2c, W-4, or W-5 | 15, 179 expense deduction | 911, 946
Unrelated business income, exempt 505, 919 401(k) plans | 560, 575
organization | 598 Forms W-4P, W-4S | 15-A
Unstated interest | 537 Fringe benefits | 15-A, 505 444 election | 538
U.S. court of federal claims | 556 Gambling winnings | 505 501(c)(3) organizations | 557
U.S. court of appeals for the federal Household employees | 926
circuit | 556 IRA distributions | 590 911 exclusion | 54
U.S. district court | 556 Keogh distributions | 560, 575 1231 gains and losses | 544
U.S. real property interest | 515, 519 Methods | 15, 15-A
U.S. tax court | 556 Nonresident aliens | 515, 519 1244 stock | 550
Useful life, depreciation | 534 Pensions and annuities | 15-A, 505,
1245 property | 544
Usurious interest | 550 575, 721
Utilities | 535 Salaries | 15, 505 1250 real property | 544
Sick pay | 15-A, 505
1256 contracts | 550
V Social security benefits | 505
Vacation homes | 527 Tips | 505, 531 $10,000, cash payments over | 1544,
Vacation pay, accrual | 535, 538 Unemployment compensation | 505 1544SP
Valuation: Wages | 15, 505, 919
Casualty or theft losses | 547
Charitable contributions | 526, 561
Condemnation | 544
Employer-provided car | 535
Estate | (Forms 706 & 709
instructions)
Fringe benefits | 535 Videotapes and Brochures on Specific Tax Topics
Gifts | (Forms 706 & 709 The IRS produces a variety of audiovisual materials and printed information
instructions) materials (brochures, notice stuffers, posters, flyers) to keep you “in the know” of
Inventories | 538, 911 the latest tax law changes, ongoing tax issues, and programs. Many of these
Value, fair market, defined | 524, 537,
materials are available in Spanish.
544, 551, 561, 564, 946
Vandalism loss | 547 s Videotapes on selected topics are available year-round for loan (without
Vehicles, heavy: charge) to interested groups or organizations. You can call your local IRS
Highway-use tax | Form 2290 Public Affairs Officer/Communications Manager or Taxpayer Education
Retail excise tax | 510 Coordinator to find out if there is a video available on your specific tax topic
Veterans’ benefits | 525 of interest.
Educational | 508 s Free printed materials are available year-round through the IRS. Educational
VISTA | 525
facilities, libraries, and community service groups can use brochures,
stuffers, flyers, and posters. If you have an interest in a specific topic, call
W
Wage bracket method of withholding your local IRS office to see what print materials are available on that topic.
| 15-A Many print materials can be downloaded from the IRS Web site and most
print products can be ordered by calling the IRS at 1-800-829-3676.
23
1999 Guide to Free Tax Services
1-800 Tax Assistance Telephone Number
If you cannot answer your tax question by reading the tax form instructions or our free tax publications, please call
the IRS for assistance at 1-800-829-1040 beginning January 3, 2000, 24 hours a day, seven (7) days a week. To check
on the status of your refund, call TeleTax at 1-800-829-4477.
Before You Call Before You Hang Up
NOTE: Toll-free Spanish If you do not fully understand the
IRS representatives care about the qual-
ity of service you get. We can better Assistance Available — answer you receive, or you feel the IRS
provide you with accurate and com- representative may not fully under-
Beginning January 3, 2000, stand your question, the representative
plete answers to your tax questions if
you have the following information Spanish speaking assistance needs to know. The representative will
available. be happy to take additional time to be
will be available by calling sure he or she has answered your ques-
The tax form, schedule, or notice
1-800-829-1040. tion fully.
to which your question relates.
By law, you are responsible for paying
The facts about your particular your fair share of federal income tax. If
situation. (The answer to the same Making the Call we should make an error in answering
question often varies from one Call 1-800-829-1040. If you are using a your question, you are still responsible
taxpayer to another because of pulse or rotary dial phone, stay on the for the payment of the correct tax.
differences in their age, income, line and an IRS assistor will answer. If Should this occur, however, you will
whether they can be claimed as a you are using a Touch-Tone telephone not be charged any penalty.
dependent, etc.) to dial the number, you can then press 1 The IRS uses different methods to
The name of any IRS publication to enter the IRS automated telephone evaluate the quality of this telephone
or other source of information system. Listen for and press the num- service. To make sure that IRS represen-
that you used to look for the ber for a specific topic of interest. tatives give accurate and courteous
answer. Selecting the correct topic helps us answers, a second IRS representative
serve you faster and more efficiently. sometimes listens in. And some callers
To protect and maintain your individ- The system allows you to order tax
ual account security, you may also be are asked to complete a short survey at
forms and publications; to find out the the end of the call.
asked for your social security number status of your refund or what you owe;
(SSN), date of birth, or personal identi- to find out if we adjusted your account
fication number (PIN) if you have one. or received your payment; or to request
You may also need to provide the a transcript of your account.
amount of your refund, filing status
shown on your tax return, the “caller
ID number” shown at the top of any
notice you received, the numbers in
your street address, or your ZIP code.
If you are asking for an installment
agreement to pay your tax, you will be
asked for the highest amount you can
pay each month and the date on which
you can pay it.
24
1999 Guide to Free Tax Services
TTY/TDD Telephone Service
Toll-free telephone tax assistance is available for the deaf Did You Know?
and hearing-impaired with access to teletypewriter/
telecommunications device for the deaf (TTY/TDD) equip- Recorded tax information
ment. Call the IRS at 1-800-829-4059 for tax information
assistance. is an IRS Touch-Tone service available
Note: This number is answered by TTY/TDD equipment only. 24 hours a day, 7 days a week?
Braille Tax Materials
Braille tax materials are available for review at Regional Taxpayers residing in Canada may call our Puerto Rico
Libraries for the Visually Impaired in conjunction with the call-site for assistance:
National Library Service for the Blind and Physically
s With tax questions of a technical nature or for a spe-
Handicapped. Currently, these materials are limited to
cific account-related issue, call (787) 759-5100.
copies of Publication 17, Your Federal Income Tax; Publication
334, Tax Guide for Small Business; Forms 1040, 1040A, and s If you received an IRS notice about your account that
1040EZ, with related instructions; and the Tax Tables. asked you to call the IRS, dial (787) 759-6262.
Taxpayers residing overseas can write or fax technical and
International Service account questions to:
If you are a taxpayer who lives outside the United States, Internal Revenue Service
the IRS has a full-time permanent staff at 7 U.S. Embassies OP:IN:D:CS
and Consulates. These offices have tax forms and publica- 950 L’Enfant Plaza South, SW
tions, can help you with account problems, and answer Washington, DC, 20024
your questions about notices and bills. Fax number: (202)874-5440
From January 1 through June 15 each year, taxpayer service (Taxpayers residing overseas can also call the Puerto Rico call-site
representatives travel to many cities worldwide to assist at (787) 759-5100.)
taxpayers outside the U.S. Federal tax forms with instructions, publications, and
You may call your nearest U.S. Embassy, Consulate, or IRS other tax materials can be obtained from the IRS Web site
office listed below to find out when and where assistance at www.irs.gov. You can also obtain IRS tax forms and
will be available. These IRS telephone numbers include the some other tax information through the IRS Tax Fax system.
country or city codes required if you are outside the local From a fax machine, dial the following appropriate fax
dialing area. number and follow voice prompts to get materials faxed
back to you 24 hours a day, 7 days a week. International
Berlin, Germany {49} (30) 8305-1140 fax numbers are:
London, England {44} (207) 408-8077
San Juan (787) 759-4524
Mexico City, Mexico {52} (5) 209-9100
Tokyo [81] (3) 3224-5465
ext. 3557 or 3559
Paris, France {33} (1) 4312-2555 You can also use the Virginia, USA, fax number
Rome, Italy {39} (06) 4674-2560 (703) 368-9694.
Singapore {65} 476-9413
Tokyo, Japan {81} (3) 3224-5466
25
1999 Guide to Free Tax Services
Explore IRS e-file
Join the 30 million Americans who file their tax returns electronically using an IRS e-file option. IRS e-file is the
quickest and most accurate way to file your taxes. It offers a fast refund (twice as fast as filing on paper, even faster
with direct deposit); a better likelihood for an error-free return (IRS e-file has less than 1% error rate); the opportu-
nity to file your federal and state tax returns together; proof within 48 hours that your return has been accepted;
privacy; and security. If you have a balance due, you may choose to file now and pay later (up until April 17, 2000)
using a direct debit from your checking or savings account or using a credit card. To pay by credit card, call 888-
2pay-tax (1-888-272-9829). Check out the IRS Web site at www.irs.gov for more information on electronic filing.
Here’s how you can IRS e-file:
IRS e-file Through an IRS e-file Using a Personal
Authorized Provider Computer Parents!
(Look for an “Authorized IRS e-file If you have a modem, a personal com-
Provider” sign) If your children receive a
puter, and tax preparation software,
Many tax professionals file returns elec- you can e-file your tax return. Tax TeleFile Tax Package
tronically for their clients. You can pre- preparation software that offers the IRS
in the mail, please encourage
pare your return and have a e-file option is available at computer
professional transmit it electronically to retailers and through various Web sites them to use TeleFile.
the IRS; or you can have a professional over the Internet. Access a list of partic-
prepare your return and transmit it for ipating software companies via the
you electronically. Tax professionals Internet at www.irs.gov, click on
IRS e-file Through Employers
may charge a fee to IRS e-file. Fees may “Electronic Services,” and then click on
and Financial Institutions
vary depending on the professional and “On-Line Filing Companies.” You can
the specific services rendered. also find a list of IRS partners that pro- Some businesses offer e-filing services
vide free or low-cost IRS e-file options to their employees for free. Others offer
by clicking on “Electronic Services,” it to their customers for a fee. See if
and then on “IRS e-file Partners.” By your employer or financial institution
Join the
using your personal computer,
IRS e-file is available 24 hours a day,
offers IRS e-file to employees, members,
or customers. If they don’t, ask them to
provide IRS e-file as a service this filing
30 million 7 days a week.
season.
Americans IRS e-file Using a Touch-Tone
who e.file Telephone
For millions of eligible taxpayers,
IRS e-file at Authorized VITA
and TCE Sites
TeleFile is the easiest way to file. Volunteer Income Tax Assistance
TeleFile allows you to file your simple (VITA) and Tax Counseling for the
federal tax return using a Touch-Tone Elderly (TCE) sites are open to assist
telephone. If you are eligible to use individuals with low income, individu-
TeleFile, the IRS will automatically als with special needs, and the elderly.
send you a TeleFile tax package Both programs are free and can be
through the mail. Just fill in the tax found in community locations, such as
Thirty million Americans use IRS record in the booklet, pick up a tele- libraries, colleges, universities, shop-
e-file.Get your federal tax refund in phone, and call the toll-free number ping malls, and retirement and senior
less than half the usual time.
Or, if you owe tax, e-file early but listed in the tax package, any time — centers. Ask for IRS e-file at these sites.
wait until April 17th to pay.Visit day or night. TeleFile is completely
our Web site: www.irs.gov paperless — there are no forms to mail.
It usually takes about 10 minutes and is
CLICK. ZIP.
FAST ROUND TRIP
absolutely free.
The Internal Revenue Service
Working to put service first
26
1999 Guide to Free Tax Services
Business Tax Services and Information
The IRS has many publications containing information about the federal tax laws that apply to businesses.
Publication 334, Tax Guide for Small Business, is a good place to start to learn more about sole proprietors and statu-
tory employees. Publication 583, Starting a Business and Keeping Records, covers basic tax information for those who
are starting a business. Look in section Tax Publications for other materials that can explain your business tax
responsibilities. For electronic assistance, you may go to the IRS Digital Daily Web site at www.irs.gov and access
“Electronic Services.” Then look for “IRS e-file Options for Business.”
IRS e-file Programs for Businesses purchasing off-the-shelf software. With the appropriate
software, almost any 941 filer can transmit his/her return.
File Form 941 by Telephone
To file using the IRS 941e-file program, an applicant should
Employers nationwide have the opportunity to file Form obtain a copy of Publication 1911, Instructions for Preparing
941, Employer’s Quarterly Federal Tax Return, using a Touch- and Submitting Form 8655, Reporting Agent Authorization, and
Tone telephone, toll-free telephone number, and simple Publication 3062, Requirements of the Electronic Filing
instructions. Businesses that meet certain qualifications are Program for Reporting of Form 941, Employer’s Quarterly
invited to participate in the paperless, 941TeleFile program. Federal Tax Return. You can order these items free of charge
Eligible filers will receive a special 941TeleFile Tax Record through an IRS Area Distribution Center by calling the IRS
and instructions with their Form 941 tax package. at 1-800-829-3676. Additional information on how to partic-
If you receive the purple tax package in the mail with your ipate in 941e-file can be obtained by contacting the IRS
traditional Form 941 and meet the qualifications in the electronic filing TCC Help Desk on 901-546-2690,
instructions, you can use 941TeleFile. It’s easy and Free. ext 7519 or the AUSC Help Desk on 512-460-4069.
File your 941 in three easy steps:
s complete the 941TeleFile Tax Record
File Form 941 Using a Personal Computer
s with a Touch-Tone telephone, call the toll-free Businesses that have a computer, modem, and off-the-shelf
TeleFile number provided in the 941TeleFile tax tax preparation software can transmit tax return informa-
package tion to a third party transmitter. The third party transmitter
s keep the 941TeleFile Tax Record as part of your will batch, and then electronically forward, the return to the
permanent business records. Austin Service Center. This program accepts and processes
Form 941 in Electronic Data Interchange (EDI) format. The
The 941TeleFile system automatically calculates your tax
program also automatically conducts security checks, sends
liability and any overpayment or balance due during the
acknowledgments, and formats records to be processed by
call. It also gives you a confirmation number as proof of fil-
current IRS computer systems.
ing your return. The call only takes about 10 minutes. The
system is available 24 hours a day, 7 days a week. And, Business filers are responsible for obtaining a personal
there is nothing to mail to the IRS. identification number (PIN) to be used as the electronic sig-
nature. You may request a PIN through a Letter of
File Form 941 Using a Reporting Agent Application. The Letter of Application is included in the soft-
The 941e-file program accepts and processes Forms 941, ware and can be electronically transmitted to the Austin
Employer’s Quarterly Federal Tax Return in the Electronic Service Center via the third party transmitter.
Data Interchange (EDI) format. Returns are transmitted Payment options are available through the Federal Tax
nationwide via dial-up phone lines and menu-driven soft- Deposit (FTD) coupon system or through the Electronic
ware directly to the IRS where they are processed at the Federal Tax Payment System (EFTPS). For more informa-
Tennessee Computing Center (TCC) or the Austin Service tion on the newer EFTPS system, see the EFTPS section
Center (AUSC). An electronic acknowledgment is returned below.
within 48 hours of receipt of the return. 941e-file accepts
both timely filed returns, and late filed returns for the cur- Electronic Federal Tax Payment System (EFTPS)
rent tax year as well as for one (1) preceding tax year.
Several year ago, the U.S. Department of Treasury designed
Large payroll processing companies, bulk-filer reporting EFTPS to modernize ‘making tax payments’ — from a
agents, and/or large businesses capable of developing their paper-based payment system to an electronic one. Today,
own software are ideally suited to participate in this 2.5M business taxpayers are enrolled in EFTPS. This tax
941e-file program. Small businesses or reporting agents may payment system helps individuals and business owners
also participate by developing their own software or by save time and money in paying their federal business taxes
27
1999 Guide to Free Tax Services
and in making their federal tax pay- more information on EFTPS, call EFTPS Publication 1779, Independent
ments electronically — either by tele- Customer Service at 1-800-945-8400 or Contractor or Employee, has detailed
phone, personal computer, or through 1-800-555-4477. En Espanol communi- information about these facts.
the transfer of funds offered by their cation, call 1-800-945-8600 or s An independent contractor will
financial institution. All federal tax 1-800-244-4829. With access to usually maintain an office and
payments (including payroll taxes, cor- teletypewriter/telecommunications staff, advertise, and have a finan-
porate income taxes, partnership, and device for the deaf (TTY/TDD) equip- cial investment risk. Independent
fiduciary taxes) can be made using ment only, call 1-800-945-8900 or contractors will generally file a
EFTPS. 1-800-733-4829. Schedule C and may be able to
You will find that EFTPS is easy to use, The IRS produces a number of print deduct certain expenses that an
convenient, accurate, fast, and materials that can provide you with employee would not.
s Generally, an employee is con-
economical. additional information on EFTPS. You
s Individuals and business owners can order these forms and publications trolled by an employer in ways that
can use EFTPS-Direct to make free through the IRS Area Distribution a true independent contractor is
their tax payments by telephone Centers by calling 1-800-829-3676. not. If the employer has the legal
or personal computer, 24 hours a s Form 9779, Business Enrollment Form
right to control the details of how
day, seven days a week. For your and Instructions the services are performed, the
computer, free Windows-based s Form 9783, Individual Enrollment
worker is generally an employee,
software is available when you Form and Instructions not an independent contractor.
enroll in EFTPS and use EFTPS- s Publication 966, The Easiest Way to Those who should be classified as
Direct. Using EFTPS-Direct only Pay Your Federal Taxes employees, but aren’t, may lose out on
takes a few minutes — no check s Publication 3110, EFTPS social security and Medicare benefits,
writing; no trips to the bank; and Information Stuffer workers’ compensation, unemployment
no courier, checks, stamps, and s Publication 3127, EFTPS Fact Sheet benefits, and, in many cases, group
envelope expenses. And as an s Publication 3425, 4 Easy Ways to insurance (including life and health),
added convenience, EFTPS-Direct Use EFTPS — for tax professionals, and retirement benefits.
lets taxpayers ‘warehouse’ their tax accountants, and payroll If you are not sure whether you are an
payment instructions up to 30 days companies independent contractor or an
in advance of a tax due date to Some forms can be downloaded from employee, get Form SS-8, Determination
automatically make their payments the IRS Web site at www.irs.gov, and of Employee Work Status for Purposes of
on the tax due date. you can also get some forms via the IRS Federal Employment Taxes and Income Tax
s Financial institutions are integrat-
Tax Fax by dialing (703) 368-9694 from Withholding.
ing EFTPS into the many services a fax machine and following the voice
they offer their clients. Under the Publication 1779, Independent Contractor
prompts to get tax forms faxed back to or Employee, and Publication 15-A,
client’s direction, funds can be you.
transferred from the client’s Employer’s Supplemental Tax Guide, pro-
account into Treasury’s account on vide additional information on inde-
Independent Contractor or pendent contractor or employee status.
a specified date. Employee
s Tax professionals have a number of IRS publications and forms can be
options to make federal tax pay- For Federal tax purposes, this is an downloaded from the Internet at
ments for their clients: important distinction. Worker classifi- www.irs.gov. You can also order a free
EFTPS Voice Response System — cation affects how you pay your copy of IRS publications and forms
make multiple payments with a Federal income tax, social security and when you call the IRS at
single telephone call Medicare taxes, and how you file your 1-800-829-3676.
EFTPS PC Debit — use return. Classification affects your eligi-
Windows-based software to send bility for employer and social security Publication 1518, Year 2000 Tax
payments and Medicare benefits and your tax Calendar for Small Businesses
EFTPS Batch — use Windows- responsibilities.
Business owners who are opening their
based software to send batches of A worker is either an independent con- doors for the first time or are hiring
payments electronically tractor or an employee. The classifica-
EFTPS Bulk — make frequent
their first employees may benefit from
tion is determined by relevant facts that this 12-month wall calendar.
consolidated payments from an fall into three main categories: behav- Publication 1518 shows all the 2000 due
EDI-compatible system ioral control; financial control; and rela- dates for making payroll deposits, pay-
To participate in EFTPS, you must first tionship of the parties. In each case, it is ing estimated taxes, and for filing busi-
enroll. For an enrollment form and for very important to consider all the facts ness tax forms. It also includes general
— no single fact provides the answer.
28
1999 Guide to Free Tax Services
information on basic business tax law, channels, small business owners should SSA/IRS (Social Security
where to go for assistance, helpful contact their local IRS Taxpayer Administration/Internal Revenue
bookkeeping and recordkeeping hints, Advocate Service for assistance. See Service) Reporter (newsletter)
and facts about IRS notices and penal- section in this booklet on Taxpayer
If you are an employer and have not
ties. Call the IRS at 1-800-829-3676 to Advocate Service (TAS) under
been receiving a copy of the SSA/IRS
order a free copy of this calendar. Taxpayer Assistance Programs for
Reporter, tell your local IRS Public
more information.
Affairs Officer/Communications
Office of Public Liaison and The IRS produces a number of print Manager.
Small Business Affairs and electronic information materials to
The SSA/IRS Reporter is a quarterly
As a national public liaison for small help new businesses. The following IRS
newsletter that keeps you up-to-date on
businesses, this office maintains daily tax publications and small business
changes to taxes and employee wage
contact and exchanges business tax CD-ROM can be ordered free through
obligations. This newsletter, produced
information with IRS external stake- the IRS by calling 1-800-829-3676.
jointly by the Social Security
holders — national organizations repre- s Publication 334, Tax Guide for Small
Administration and the IRS, is mailed
senting tax professionals, payroll Business (For Individuals Who Use
to approximately seven million
processors, volunteers and social ser- Schedule C or C-EZ)
employers along with each quarterly
vices, electronic commerce, state s Publication 583, Starting a Business
Form 941, Employer’s Quarterly Federal
departments of revenue, small business and Keeping Records
Tax Return, and instructions.
organizations, and large corporate tax- s Publication 1066, Small Business Tax
payers. This office also works with the Workshop (booklet), provides gen-
Small Business Tax Education
Small Business Administration and eral information about different
Program (STEP)
other government agencies to initiate types of business organizations,
and foster programs and actions to record-keeping requirements, and Small business owners and other self-
reduce small business burdens business tax returns. This booklet is employed individuals can learn about
government-wide. used as an education tool in small business taxes through a unique part-
business workshops given by local nership between the IRS and local orga-
The Office of Public Liaison and Small
IRS offices. nizations. Through workshops or
Business Affairs provides ‘one-stop’
s Publication 1518, Year 2000 Tax in-depth tax courses, instructors pro-
service for sharing ‘small business’
Calendar for Small Businesses, notes vide training on starting a business,
information. Some of these services
the most common tax filing dates. recordkeeping, preparing business tax
include:
A specific tax tip is highlighted returns, self-employment tax issues,
s working to establish partnering
each month, in the calendar, to help and employment taxes.
opportunities
s providing forums to discuss new
small businesses not only during Some courses are offered free as a com-
ideas and feedback the tax-filing season, but also munity service. Courses given by an
s tracking issues and sharing infor-
throughout the year. educational facility may include costs
s Publication 1853, Small Business
mation for materials and tuition. Other courses
s coordinating liaison meetings
Talk, tells of the Office of Public may have a nominal fee to offset
s coordinating IRS participation at
Liaison and Small Business Affairs, administrative costs of sponsoring
meetings and conferences and lists services and tax materials organizations.
available to small businesses.
You can write to the IRS Office of Public s Publication 3207, Small Business
Liaison and Small Business Affairs if Resource Guide 2000: What You Need
you have suggestions regarding tax to Know About Taxes and Other Your Business Tax Kit (YBTK)
laws, regulations, or policy. Topics (CD-ROM). This CD-ROM The YBTK, in booklet format, con-
Internal Revenue Service includes tax information, tains various IRS business tax forms
The Office of Public Liaison and provided by multiple government and publications that may be used
Small Business Affairs CL:PL agencies, to help small business to prepare and file business tax
IR Room 7559 entrepreneurs meet regulatory returns. Besides forms and publica-
1111 Constitution Avenue NW requirements. tions, the kit includes information
Washington, DC 20224 Many IRS information products are on quick and easy access to IRS tax
*public_liaison@m1.irs.gov also available on the small business help. To order, call 1-800-829-3676
This office does not handle small busi- corner of the IRS Web site @ and ask for Publication 454, Your
ness owners’ individual tax problems. www.irs.gov/prod/bus_info/sm_bus/ Business Tax Kit.
If a problem has not been resolved after index.html.
repeated attempts through normal IRS
29
1999 Guide to Free Tax Services
Taxpayer Assistance Programs
The IRS has programs that offer free assistance with tax return preparation and tax counseling using volunteers
trained by the IRS. Call the IRS office in your area and ask for the Taxpayer Education Coordinator or the Public
Affairs Officer/Communications Manager for more information on these programs. They can provide you with
times and locations of services and information on becoming a volunteer.
Volunteer Income Tax Assistance Tax Counseling for the Elderly Bank, Post Office, and Library
(VITA) (TCE) (BPOL) Program
The VITA program offers free tax help The TCE program provides free tax Even though free filing materials
to people who cannot afford paid pro- help to people age 60 and older. (forms and instructions) are placed in
fessional assistance. Volunteers, trained Volunteers who provide tax counseling participating banks, post offices, and
by the IRS, help prepare basic tax are often retired individuals associated libraries nationwide, patrons may still
returns for taxpayers with special needs with non-profit organizations that need assistance to get the proper tax
— including people with disabilities, receive grants from the IRS. Grant publications, forms, and instruction
those with a low to fixed income, non- funds are used to reimburse volunteers booklets to file their tax return. The IRS
English speaking people, and the for out-of-pocket expenses. Some of the may be able to provide volunteers to
elderly. VITA sites are generally located expenses may include transportation, assist taxpayers at BPOL outlets in your
at community and neighborhood cen- meals, and other expenses incurred in community during the filing season.
ters, libraries, schools, shopping malls, training or in providing tax counseling You can call your local IRS office and
and other convenient locations. A num- assistance in any of the locations where ask to speak to the Taxpayer Education
ber of locations also offer free electronic the elderly are located (retirement Coordinator to request a volunteer for
filing. homes, neighborhood sites, or private your community BPOL outlet, and to
Volunteers (college students; law stu- houses of the homebound). find out how to become a BPOL volun-
dents; members of professional busi- Call your local IRS office for more teer. You can also call the IRS at 1-800-
ness and accounting organizations; and information on this program and to 829-1040 for volunteer information.
members of retirement, religious, mili- find locations of TCE assistance in your
tary, and community groups) may take area. Student Tax Clinic Program
part in various VITA program activities: (STCP)
s directly preparing returns As part of the IRS-sponsored Tax The STCP is designed to provide free
s teaching taxpayers to prepare their Counseling for the Elderly pro- tax counseling to taxpayers who would
own returns gram, the American Association of not normally obtain counsel in audit,
s managing a VITA site Retired Persons (AARP) Foundation appeals, and tax court cases. Law and
s arranging publicity offers an AARP Tax-Aide counseling graduate accounting students staff the
The IRS provides VITA training materi- program at more than 10,000 sites STCP. These students must receive spe-
als and instructors. Training is con- nationwide during the filing season. cial permission from the IRS National
ducted at times and locations Trained with IRS materials and certi- Headquarters Director of Practice to
convenient to volunteers and instruc- fied by an IRS examination, AARP represent taxpayers before the IRS
tors. Generally, these sessions are Tax-Aide volunteer counselors can during examination and appeals
offered in December through January help with most tax circumstances proceedings.
each year. faced by low and moderate-income
taxpayers age 60 and older. Younger Low-Income Taxpayer Clinics
For more information about the VITA taxpayers are helped as counselor-
program, becoming a VITA volunteer, (LITC) Grant Program
time permits.
and to find the location of the VITA site The IRS LITC grant program, autho-
in your area, call your local IRS office To find an AARP Tax-Aide volunteer rized under the IRS Restructuring and
and ask to speak to the Taxpayer site in your community call Reform Act of 1998, gives grants to
Education Coordinator, or call IRS tax 1-888-AARPNOW, or from a com- organizations that:
assistance at 1-800-829-1040. puter access the Internet site locator at s provide legal assistance to low-
www.aarp.org/taxaide/home.html income taxpayers in controversy
with the IRS
30
1999 Guide to Free Tax Services
s inform individuals (whose second Taxpayer Advocate Service Hardship situations and other issues
language is English) of their tax that are referred to the Taxpayer
If you have an ongoing tax issue with
rights and responsibilities Advocate are reviewed on the individ-
the IRS, that has not been resolved
The grants are not available to individ- ual merits of each case. It is important
through normal channels, you may
uals. However, through this grant to remember, that the Taxpayer
contact the Taxpayer Advocate Service
program, the IRS awards qualifying Advocate is not a substitute for estab-
(formerly the Problem Resolution
organizations grants of up to $100,000 lished IRS procedures or the formal
Program) for assistance. The Taxpayer
per year to develop, expand, and con- appeals process. The Taxpayer
Advocate Service has the ability to cut
tinue low-income taxpayer clinics. The Advocate cannot reverse legal or tech-
through red tape and can often help
clinics are administered and sponsored nical tax determinations.
with delayed refunds, unanswered
by accredited law, business, and inquiries, and incorrect billing notices. To reach a Taxpayer Advocate, call
accounting schools where students rep- Generally, the Taxpayer Advocate can 1-877-777-4778. You can also call the IRS
resent taxpayers in tax controversies help if, as a result of the administration at 1-800-829-1040 and ask for Taxpayer
before the IRS or before the courts. In of the tax laws, you: Advocate assistance. Deaf and hearing-
addition, the clinics may be adminis- s are suffering, or are about to suffer, impaired, with access to teletype-
tered and sponsored by non-profit a significant hardship writer/telecommunication device for
organizations that meet program s are facing an immediate threat of the deaf (TTY/TDD) equipment, may
requirements. adverse action (penalties, interest, call the IRS at 1-800-829-4059.
To learn more about the Low-Income liens) For more information about Taxpayer
s will incur significant costs (includ-
Taxpayer Clinics Grant Program, call Advocate Service and for a list of
your local IRS office and ask to speak ing fees for professional representa- Taxpayer Advocate telephone numbers
to the Taxpayer Education Coordinator. tion) and addresses, listen to TeleTax topic
s will suffer irreparable injury or
You can also call the IRS at #104 (See Table of Contents in this
1-800-829-3676 and order a free copy of long-term adverse impact booklet for TeleTax page number), or
s have experienced a delay of more
Publication 3319, LITC Grant Application call the IRS at 1-800-829-3676 for a copy
Package and Guidelines. Each year, than 30 days to resolve an issue of Publication 1546, The Taxpayer
s have not received a response or res-
Publication 3319 is revised to provide Advocate Service of the Internal Revenue
the current year application deadline date. olution through normal channels Service. You may also download this
This product is available on the IRS by the date promised publication from the IRS Web site at
Web site. www.irs.gov
31
1999 Guide to Free Tax Services
Taxpayer Education Programs
The IRS has year-round education programs designed to help you understand the tax laws and IRS procedures.
Volunteers trained by the IRS are an important part of these programs. For times and locations of the available
services in your community, or to become a volunteer, call the IRS office in your area and ask for the Taxpayer
Education Coordinator or the Public Affairs Officer/Communications Manager.
Community Outreach Tax which our tax system is based. s TAX Interactive (TAXi) is an on-
Education line learning lab designed for high
s The eighth grade program, Taxes in
school student and teacher use.
Through this program, IRS staff or U.S. History, details the roles that
Visit TAX Interactive on the IRS
trained volunteers will speak to groups taxes have played in our nation’s
Web site at www.irs.gov/taxi for
of people (retirees, farmers, small busi- history. It is designed for U.S. his-
an educational and entertaining
ness owners, and employees) with com- tory classes. Students learn how tax
way to learn about tax rights and
mon tax concerns. This program offers policies of the past have con-
responsibilities.
two kinds of assistance. tributed to tax policies in effect
s line-by-line self-help income tax today. Teachers can integrate the s The post-secondary program,
return preparation program into standard curricula. Taxes and You, is designed to assist
s tax seminars on various tax topics adult learners in becoming respon-
s The high school program,
Outreach sessions may be co-sponsored sible participants in the tax system.
Understanding Taxes, explains how
by community organizations and other Students will learn how taxes affect
to prepare and file a simple tax
government agencies. people and the economy and how
return and teaches about the his-
to interpret and prepare tax forms.
tory, politics, and economics of our
Understanding Taxes Program By learning how to pay only what
tax system. The variety of topics
for Students is owed, managing personal
covered in their modular format
finances will become a lot easier.
Understanding Taxes consists of four allows the course to be used in a
separate tax education courses number of different classes, such as
Practitioner Education
designed to teach students about their history, economics, consumer edu-
federal tax rights and responsibilities cation, social studies, government, Through this program, training is pro-
and the economics and history on civics, and business education. vided to people who prepare tax
returns and counsel taxpayers for a fee.
Classes are held in every state in coop-
eration with the state bureau of rev-
enue, colleges, universities, and
professional accounting groups. Tax
professional institutes alert participants
of the tax law changes and work with
participants to improve the quality of
return preparation to reduce errors.
32
1999 Guide to Free Tax Services
Important Tax Subjects You Should Know About
The IRS has many programs and processes that can reduce anxieties of taxes. A description of some of the more
popular ones follows. In most cases, the description lists free IRS publications for additional information.
Amending a Return is paid. it to the IRS address for your area.
If you are not able to pay the taxes you See “Where to File” Your Taxes for
If you find that you made a mistake on
owe in full, IRS staff will work with Tax Year 1999 on last page. There is
your tax return, you can correct it by
you to find the best way to meet your a fee of $23 for each return
filing a Form 1040X, Amended U.S.
tax obligations. This may include an requested. Please allow up to 60
Individual Income Tax Return. Generally,
installment agreement or acceptance of days to receive your copy.
you must file this form within three
an offer to settle the account. If taxes,
s For a transcript that reflects most
years from the date you filed your orig-
interest, and penalties are not paid in items from your return, send a
inal return or within two years from the
full, a Federal tax lien may also be filed. completed Form 4506 to the IRS
date you paid your tax, whichever is
Under certain conditions, the IRS may address where the return was filed.
later. File Form 1040X with the Internal
enforce collection and seize personal There is no charge at this time. You
Revenue Service Center for your area.
assets, including income and other should receive the transcript within
(Your state tax liability may be affected
property. The collection process can be 7 - 10 workdays from the IRS
by a change made on your federal
stopped at any stage if the amount office’s receipt of your request.
income tax return. For more informa-
owed is paid in full.
s For tax account information, you
tion on this, contact your state tax
can visit an IRS office or call the
authority.) More information about your rights IRS toll-free number listed in your
and the collection process are found in telephone directory. This list of
Adoption Taxpayer Publication 1, Your Rights as a Taxpayer, basic tax data, like marital status,
Identification Number (ATIN) and Publication 594, What You Should type of return filed, adjusted gross
If you are in the process of adopting a Know About the IRS Collection Process. income, and taxable income, is
child and are able to claim the child as Both publications are available in available free of charge. Do not use
your dependent or are able to claim the Spanish. Form 4506 to request this informa-
child care credit, you may need an tion. Please allow 15 days for deliv-
ATIN for your adoptive child. The Copies Of Prior Year Returns ery.
Internal Revenue Service can issue an There are occasions when you may To obtain Form 4506, download from
ATIN as a temporary taxpayer identifi- need a copy of your prior year(s) the IRS Web site, use IRS Tax Fax sys-
cation number for children who are Federal Tax Forms 1040, 1040A, and tem (See IRS Tax Fax under Tax
being adopted. Parents will use the 1040EZ, a transcript of return, or Information Available Electronically),
ATIN to identify the child on their account information. or order by calling the IRS at
Federal Income Tax Return while final
A transcript of return contains informa- 1-800-829-3676.
adoption is pending. See FORM W-7A,
Application for Taxpayer Identification tion from the original return. It does not
contain information regarding Credits
Number for Pending U.S. Adoptions, in
this section. amended returns or subsequent pay- The tax laws include a number of cred-
ments. If amended returns or subse- its you may be entitled to take. The fol-
Collection Process quent payment summary is needed, lowing are several of the more popular
account information can be secured. credits available.
When the IRS sends you a notice of tax
Examples of when you may need a s adoption credit
due, do not ignore it — pay the amount
copy of a return or a transcript of return s child and dependent care credit
owed, or contact your local IRS office
include applying for a home mortgage s child tax credit
by telephone or through written corre-
loan or financial aid for education. s earned income tax credit
spondence about the notice. If you
While there is a fee for requesting a s education credits: Hope, lifetime
believe a bill from the IRS is incorrect,
photocopy of a return, transcripts are learning
you will need to provide information
free of charge. Make sure a transcript is s foreign tax credit
showing why you think the bill is
acceptable by the company or establish- s mortgage interest
wrong. If the IRS agrees with you, then
your account will be corrected. ment needing your income information. Turn to the Index of Topics and
s You can get a copy of a prior
However, if the bill is correct, interest Related Publications section and look
and penalties will be charged on the year(s) tax return by completing under “Credits” for a list of the credits
amount owed until the full amount due Form 4506, Request for Copy or and the related publications for details.
Transcript of Tax Form, and mailing
33
1999 Guide to Free Tax Services
Disaster/Casualty Losses interest on taxes due for the length of Examination of Returns
any extension granted for filing your
When property is damaged or lost in a If your return is selected for examina-
tax return. For details, get Publication
hurricane, earthquake, fire, flood, or tion, you may be asked to show records
547, Casualties, Disasters, and Thefts
similar event that is sudden, unex- such as canceled checks, receipts, or
(Business and Nonbusiness). You can also
pected, or unusual, it is called a casu- other supporting documents to verify
download a copy of Publication 1600,
alty. Your unreimbursed loss from a entries on your return. You can appeal
Disaster Losses — Help From the IRS,
casualty may be deductible on your tax if you disagree with the examination
from the IRS Web site.
return for the year the casualty results. Your appeal rights will be
occurred. If the loss happened in an explained to you.
Estimated Tax
area the President designated as a dis- You may act on your own behalf or
aster area, you may not have to wait If you are self-employed or have other
have an attorney, a certified public
until the end of the year to file a tax income not subject to income tax with-
accountant, or an individual (enrolled
return and claim a loss. You may be holding, you may have to make esti-
to practice before the IRS) represent or
able to file an amended return for last mated tax payments. For details on
accompany you. The Student Tax Clinic
year right now and get a refund of who must pay estimated taxes and how
Program is available in some areas to
taxes you have already paid. If you and when to make payments, get
help people during examination and
were located in a Presidentially- Publication 505, Tax Withholding and
appeal proceedings. Call your local IRS
declared disaster area, there will be no Estimated Tax.
office and ask the Taxpayer Education
Coordinator or the Public Affairs
Officer/Communications Manager
about this program.
How do you If you work hard but don’t
earn a high income, EITC can
For more information on the examina-
tion of returns, get Publication 556,
qualify for mean you’ll pay less tax, no
tax or even get a refund.
Examination of Returns, Appeal Rights,
and Claims for Refund, and Publication 1,
the Your Rights as a Taxpayer. Also see
Earned
Income Tax
You may be eligible if you have
two qualifying children and
earnings under $30,580 in
Publication 947, Practice Before the IRS
and Power of Attorney. Publication 1 is
available in Spanish.
Form W-4, Employee’s
1999. Or one qualifying
Credit? child and earnings under
$26,928. Or no child and
earnings under $10,200.
Withholding Allowance
Certificate
Each time you start working for an
employer, you should complete a Form
W-4. The information you provide will
To get all the facts, call help your employer know how much
federal tax to withhold from your
1-800-829-3676 for IRS wages. If your tax situation changes,
Pub.596, Earned Income Credit. complete a new Form W-4 so that the
correct amount of tax will be withheld.
IRS Web site: www.irs.gov For more information on tax withhold-
ing, get Publication 919, Is My
Withholding Correct for 2000?
The Internal Revenue Service Working to put service first
34
1999 Guide to Free Tax Services
Form W-5, Earned Income Credit Form W-7A, Application Social Security Number (SSN)
Advance Payment Certificate for Taxpayer Identification Your SSN is not posted anywhere in
In 2000, you may be able to file a Form Number for Pending U.S. your tax package. So...make sure you
W-5 with your employer for the Adoptions write your SSN on your Form 1040,
Advance EITC if: If you have a child placed in your home 1040A, or 1040EZ and on each support-
1) you expect you will be eligible for for legal adoption, the adoption is not ing schedule or form that you include
the Earned Income Tax Credit yet final, and you cannot obtain an SSN with your return when you file it. List
(EITC), and for that child, you must get an adoption the complete and correct SSN issued by
2) if you will have a qualifying child taxpayer identification number (ATIN) the Social Security Administration
on your 2000 Federal Tax Return. if you want to claim various tax bene- (SSA) for yourself, spouse, and each
Filing for the Advance EITC will allow fits (but not the earned income tax dependent on your tax return.
you to receive partial payment of the credit). When the adoption is final, you
should no longer use the ATIN. Instead, Name Change
EITC during the year rather than only
when you file your tax return. The you must obtain a social security If your name has changed for some
amount of the Advance EITC payments number issued by the Social Security reason, like marriage or divorce, notify
you receive will be shown on your Administration and use it. the Social Security Administration
Form W-2, Wage and Tax Statement. For (SSA) immediately.
more information, get Publication 596, Late (Overdue) Returns
If the name and social security number
Earned Income Credit. This publication is Sometimes people do not file their tax you show on your tax return does not
available in Spanish. return(s) because of personal problems, match the one SSA has on record, there
no money to pay, lost records, or confu- can be a processing delay, which could
Form W-7, Application for IRS sion over complex tax rules. hold up your refund.
Individual Taxpayer If you have not filed your federal
Identification Number Dependent’s SSN
income tax return for a year or more
If you are required to have an and should have filed, IRS staff will If you claim an exemption for a depen-
identifying number for federal tax pur- work with you to help you get back on dent, you are required to show his or
poses, but cannot obtain a social secu- track. Copies of missing documents her social security number on your tax
rity number (SSN), the IRS will issue an like Form W-2, Wage and Tax Statement, return.
individual taxpayer identification can often be retrieved. If you owe taxes, If you do not list a complete and correct
number (ITIN). The IRS will issue this the IRS will explain your payment social security number issued by the
number for a nonresident or resident options. And if you have a refund com- SSA, the IRS may disallow the exemp-
alien who does not have and is not ing, they will explain the time limit on tion for that dependent.
eligible to get an SSN issued by the getting it.
Social SecurityAdministarion (SSA). To To get a social security number, contact
Call your local IRS office or call the nearest Social Security
apply for an ITIN, file Form W-7 with toll-free 1-800-829-1040 for assistance.
the IRS. Administration office to get Form SS-5,
Remember, interest and penalties are Application for a Social Security Card.
adding up if you owe taxes, and time is
running out if you are due a refund. If you are not eligible to obtain a
NOTE: An ITIN is social security number from the SSA,
use an IRS individual taxpayer
for tax use only. identification number (ITIN) instead
It does not entitle you to of a social security number. To get an
ITIN, contact the IRS to get Form W-7,
social security benefits or Application for IRS Individual Taxpayer
change your employment Identification Number.
or immigration status
under U.S. law.
35
1999 Guide to Free Tax Services
Tips When Filing Your Return
Gathering forms, receipts, and other paperwork to file your taxes is only half the battle. Once you’ve completed
your forms, it is equally important to double-check your figures, information, and packaging procedures (as
applicable to your filing method).
Make certain that you include your social security number (SSN) on each page of your return and supporting
schedules and forms when you file your return. (If you use your tax package, remember your SSN is not pre-printed
on the address label or the forms.) Always review your filing entries for misprinted or overlooked data. And with a
paper return, also review your forms for miscalculations. Any mistake can cause processing delays that may hold
up your refund. When mailing a paper return, make sure you have enough postage and your complete return
address on the IRS envelope to avoid mailing delays. If you owe taxes, remember any delay could cause you
notices, penalties, and interest charges.
The tips below can serve as your checklist to prevent filing mistakes.
Important Parts of Your Return
s Enter Social Security Number(S)? security tax) withheld. Remember to use the amount for
Make sure your social security number is on your return federal income tax withheld on your return to calculate
and all supporting schedules and forms. your total income tax payments.
s Check Age/Blindness Box? s Enter Correct Standard Deduction Amount?
If you are age 65 or older or blind, or your spouse is age If you do not itemize deductions, use the correct standard
65 or older or blind, make sure you notate the appropriate deduction chart to find the right amount.
box(es) on Form 1040 or Form 1040A. s Check Refund or Balance Due Amount?
s Claim Child Tax Credit? On paper return, check your addition and subtraction. If
If you have income below a certain level, and a child your total payments are more than your total tax, you are
under age 17, you may be able to claim this credit. Read due a refund. A balance due is figured when your taxes
about this credit in your Forms 1040 or 1040A due are more than the amount you have already paid. If
Instructions. you make a payment by check, you should make the
s Claim Earned Income Credit; Figure Correctly? check out to the United States Treasury.
This tax credit can help some people who work and have s Take Correct Tax from Tax Table?
income below a certain level. For more information on When using the tax table, first you have to take the
whether you qualify and how to figure the credit, get amount shown on the taxable income line of your Form
Publication 596, Earned Income Credit, or Publication 1040, 1040A, or 1040EZ and find the line in the tax table
596SP, Crédito por Ingreso del Trabajo. showing that amount. Next, find the column for your
s Enter Federal Income Tax Withheld, not Social Security marital status (married filing joint, single, etc.) and read
Tax, on the Return? Form W-2, Wage and Tax Statement, down the column. The amount shown where the income
shows both the federal income tax and FICA (social line and filing status column meet is your tax.
Important Double-Checks on Your Paper Return Important Mailing Procedures
Before Mailing
s Attach Copy B of all Forms W-2. s If you owe tax, include your s Use preprinted envelope that
s Attach all required forms and check or money order payable came in the tax package to mail
related schedules. Write your to United States Treasury. your return. If you do not have
SSN (and spouse’s if filing joint) Write your social security one, address an envelope to the
on your return form and number, daytime telephone Internal Revenue Service Center
supporting schedules and forms. number, tax form number, and for your state.
s Place preprinted address label on tax year on your check or
your return and make any neces- money order. s Write your complete return
sary changes on it. s Make a copy of the return for address on the envelope.
s Sign and date your return your records.
(both husband and wife must s Attach the correct postage.
sign a joint return).
36
1999 Guide to Free Tax Services
‘Where to File’ Your Taxes for Tax Year 1999
This filing season (for Tax Year 1999) most 1040 tax packages will contain an envelope with two labels. The two
labels will enable the IRS to more efficiently sort the refund returns from the remittance returns.
These labels will contain the address of the IRS Service Center and separate zip+4 zip codes and PostNet barcodes.
One of the labels will be used by taxpayers filing for a refund, or the other label will be used by taxpayers filing a
balance due return and remittance.
In addition, the ‘Where to File’ instructions will have the same service center addresses with the same two zip codes.
This will allow the taxpayers or practitioners to place a handwritten address on their tax return envelope and the
U.S. Postal Service will imprint the proper PostNet barcode on the face of the envelope. Barcodes will permit the tax
returns to be sorted.
If You Are Requesting a Refund, If You ARE NOT Requesting a REFUND,
use the IRS Service Center mailing address below for use the IRS Service Center mailing address below for
your area: your area:
Internal Revenue Service Internal Revenue Service Internal Revenue Service Internal Revenue Service
Atlanta GA 39901-0102 Fresno CA 93888-0102 Atlanta GA 39901-0002 Fresno CA 93888-0002
Internal Revenue Service Internal Revenue Service Internal Revenue Service Internal Revenue Service
Andover MA 05501-0102 Kansas City MO 64999-0102 Andover MA 05501-0002 Kansas City MO 64999-0002
Internal Revenue Service Internal Revenue Service Internal Revenue Service Internal Revenue Service
Austin TX 73301-0102 Memphis TN 37501-0102 Austin TX 73301-0002 Memphis TN 37501-0002
Internal Revenue Service Internal Revenue Service Internal Revenue Service Internal Revenue Service
Holtsville NY 00501-0102 Ogden UT 84201-0102 Holtsville NY 00501-0002 Ogden UT 84201-0002
Internal Revenue Service Internal Revenue Service Internal Revenue Service Internal Revenue Service
Cincinnati OH 45999-0102 Philadelphia PA 19255-0102 Cincinnati OH 45999-0002 Philadelphia PA 19255-0002
37
1999 Guide to Free Tax Services
Department of the Treasury Publication 910 (Rev. 12-99)
Internal Revenue Service Catalog Number 15315W
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