IRS Form 8844 - 2010 - PDF

					       8844                                      Empowerment Zone and Renewal                                                                    OMB No. 1545-1444
                                                  Community Employment Credit                                                                      2010
Department of the Treasury                                                                                                                       Attachment
Internal Revenue Service
                                                                 ▶   Attach to your tax return.                                                  Sequence No. 99
Name(s) shown on return                                                                                                              Identifying number

  1     Enter the total qualified wages paid or incurred during calendar year 2010 only (see instructions)
      a Qualified empowerment zone wages          . . . . . . $                                   × 20% (.20)                            1a
      b Skip line 1b (see instructions) . . . . . . . . . $                                       × 0% (.00)                             1b

  2      Enter the amount from line 1a. See instructions for the adjustment you must make to salaries and wages                           2

  3      Empowerment zone and renewal community employment credit from partnerships, S corporations,
         cooperatives, estates, and trusts . . . . . . . . . . . . . . . . . . . . . . .                                                  3

  4      Add lines 2 and 3. Partnerships and S corporations, report this amount on Schedule K; all others, go to
         line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                             4

  5      Empowerment zone and renewal community employment credit included on line 4 from passive
         activities (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . .                                                  5

  6      Subtract line 5 from line 4 .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    6

  7      Passive activity credit allowed for 2010 (see instructions)         .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    7

  8      Carryforward of empowerment zone and renewal community employment credit to 2010 .                              .   .   .   .    8

  9      Carryback of empowerment zone employment credit from 2011 (see instructions)                                                     9

 10      Add lines 6 through 9. Cooperatives, estates, and trusts, go to line 11. All others, report this amount on
         Form 3800, line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                        10

 11      Amount allocated to the patrons of the cooperative or the beneficiaries of the estate or trust (see
         instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                         11

 12      Cooperatives, estates, and trusts. Subtract line 11 from line 10. Report this amount on Form 3800,
         line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                           12
For Paperwork Reduction Act Notice, see instructions.                                            Cat. No. 16145S                                    Form 8844 (2010)
Form 8844 (2010)                                                                                                              Page 2

General Instructions                         • Columbus, OH                                • Has his or her principal residence
                                                                                           within that empowerment zone while
                                             • Oklahoma City, OK
Section references are to the Internal                                                     performing those services (employees
Revenue Code.                                • Philadelphia, PA/Camden, NJ
                                                                                           who work in the Washington, DC,
                                             • Columbia/Sumter, SC                         empowerment zone may live anywhere
What's New                                   • Knoxville, TN                               in the District of Columbia).
The Tax Relief, Unemployment Insurance       • El Paso, TX                                    See Qualified Employees on page 3 for
Reauthorization, and Job Creation Act of
                                             • San Antonio, TX                             a list of persons who are not qualified
2010 extended the empowerment zone
                                             • Norfolk/Portsmouth, VA                      employees.
employment credit. However, the
renewal community employment credit          • Huntington, WV/Ironton, OH                  Renewal Communities
has expired for calendar years after         Washington, DC. Under section 1400,
2009.                                                                                      Parts of the following areas are renewal
                                             parts of Washington, DC, are treated as       communities. You can find out if your
                                             an empowerment zone. For details, use
Purpose of Form                              the RC/EZ/EC Address Locator at
                                                                                           business or an employee’s residence is
                                                                                           located within a renewal community by
Use Form 8844 to claim the          or see Notice           using the RC/EZ/EC Address Locator at
empowerment zone and renewal                 98-57, on page 9 of Internal Revenue or by calling
community employment (EZRCE) credit.         Bulletin 1998-47 at                           1-800-998-9999.
For tax years that include December 31,
2010, the credit is 20% of the                                                             Note. The renewal community
                                             Rural areas. Parts of the following rural     designation does not apply to periods
employer’s qualified wages (up to
                                             areas are empowerment zones. You can          after 2009.
$15,000) paid or incurred during
                                             find out if your business or an
calendar year 2010 on behalf of qualified                                                  • Greene-Sumter County, AL
                                             employee’s residence is located within a
empowerment zone employees.                                                                • Mobile County, AL
                                             rural empowerment zone by using the
  The credit is a component of the           RC/EZ/EC Address Locator at                   • Southern Alabama
general business credit, and a special or by calling           • Los Angeles, CA
tax liability limit applies. The allowable   1-800-998-9999.
credit is figured in Part II of Form 3800,                                                 • Orange Cove, CA
                                             • Desert Communities, CA (part of             • Parlier, CA
General Business Credit.
                                             Riverside County)
                                                                                           • San Diego, CA
Empowerment Zones                            • Southwest Georgia United, GA (part of
                                             Crisp County and all of Dooly County)         • San Francisco, CA
Urban areas. Parts of the following
urban areas are empowerment zones.                                                         • Atlanta, GA
                                             • Southernmost Illinois Delta, IL (parts of
You can find out if your business or an      Alexander and Johnson Counties and all        • Chicago, IL
employee’s residence is located within       of Pulaski County)                            • Eastern Kentucky
an urban empowerment zone by using           • Kentucky Highlands, KY (part of Wayne       • Central Louisiana
the RC/EZ/EC Address Locator at              County and all of Clinton and Jackson         • New Orleans, LA or by calling          Counties)
1-800-998-9999.                                                                            • Northern Louisiana
                                             • Aroostook County, ME (part of               • Ouachita Parish, LA
• Pulaski County, AR                         Aroostook County)
• Tucson, AZ                                                                               • Lawrence, MA
                                             • Mid-Delta, MS (parts of Bolivar,            • Lowell, MA
• Fresno, CA                                 Holmes, Humphreys, Leflore, Sunflower,
• Los Angeles, CA (city and county)          and Washington Counties)                      • Detroit, MI
• Santa Ana, CA                              • Griggs-Steele, ND (part of Griggs           • Flint, MI
• New Haven, CT                              County and all of Steele County)              • West Central Mississippi
• Jacksonville, FL                           • Oglala Sioux Tribe, SD (parts of            • Turtle Mountain Band of Chippewa, ND
• Miami/Dade County, FL                      Jackson and Bennett Counties and all of       • Camden, NJ
                                             Shannon County)                               • Newark, NJ
• Chicago, IL
• Gary/Hammond/East Chicago, IN              • Middle Rio Grande FUTURO                    • Buffalo-Lackawanna, NY
                                             Communities, TX (parts of Dimmit,             • Jamestown, NY
• Boston, MA                                 Maverick, Uvalde, and Zavala Counties)
• Baltimore, MD                                                                            • Niagara Falls, NY
                                             • Rio Grande Valley, TX (parts of
• Detroit, MI                                                                              • Rochester, NY
                                             Cameron, Hidalgo, Starr, and Willacy
• Minneapolis, MN                            Counties)                                     • Schenectady, NY
• St. Louis, MO/East St. Louis, IL           Qualified empowerment zone                    • Hamilton, OH
• Cumberland County, NJ                      employee. A qualified empowerment             • Youngstown, OH
• New York, NY                               zone employee is any employee                 • Philadelphia, PA
                                             (full-time or part-time) of the employer      • Charleston, SC
• Syracuse, NY                               who:
• Yonkers, NY                                                                              • Chattanooga, TN
                                             • Performs substantially all of the
• Cincinnati, OH                                                                           • Memphis, TN
                                             services for that employer within an
• Cleveland, OH                              empowerment zone in the employer’s            • Corpus Christi, TX
                                             trade or business and                         • El Paso County, TX
                                                                                           • Burlington, VT
                                                                                           • Tacoma, WA
                                                                                           • Yakima, WA
                                                                                           • Milwaukee, WI
Form 8844 (2010)                                                                                                                Page 3

Qualified renewal community
employee for calendar years before
                                              • Any individual employed by the
                                              employer in a trade or business of which
                                                                                            Specific Instructions
2010. A qualified renewal community           the principal activity is farming (see Note   Complete lines 1 and 2 to figure the
employee is any employee (full-time or        below), but only if at the close of the tax   current year credit for your trade or
part-time) of the employer who:               year the sum of the following amounts         business. Skip lines 1 and 2 if you are
                                              exceeds $500,000.                             only claiming a credit that was allocated
• Performs substantially all of the                                                         to you from a pass-through entity.
services for that employer within a              1. The larger of the unadjusted bases
renewal community in the employer’s           or fair market value of the farm assets       Line 1a—Qualified Empowerment
trade or business and                         owned by the employer.                        Zone Wages
• Has his or her principal residence             2. The value of the farm assets leased     Enter the total qualified empowerment
within that renewal community while           by the employer.                              zone wages paid or incurred during the
performing those services.                    Note. Certain farming activities are          calendar year 2010. The credit must be
   See Qualified Employees below for a        described in section 2032A(e)(5)(A) or (B).   figured using only the wages that you
list of persons who are not qualified         Early termination of employee.                paid or incurred in the calendar year that
employees.                                    Generally, an individual is not a qualified   ended with or within your tax year. For
                                              zone employee unless employed for at          example, if your tax year began on April
Qualified Employees                           least 90 days. The 90-day requirement         1, 2010, and ended on March 31, 2011,
Any person may be a qualified employee        does not apply in the following               you must figure wages based on the
except the following.                         situations.                                   calendar year that began on January 1,
• Any relative of the employer described                                                    2010, and ended on December 31, 2010.
                                              • The employee is terminated because of       Wages paid after the end of the calendar
in sections 152(d)(2)(A) through              misconduct as determined under the
152(d)(2)(G).                                                                               year may be used only to figure the
                                              applicable state unemployment                 credit claimed on the following year’s tax
• A dependent of the employer                 compensation law.                             return.
described in section 152(d)(2)(H).            • The employee becomes disabled                  Qualified empowerment zone wages
• If the employer is a corporation, any       before the 90th day. However, if the          are qualified wages paid or incurred by
individual who bears any of the               disability ends before the 90th day, the      an employer for services performed by
relationships described in sections           employer must offer to reemploy the           an employee while the employee is a
152(d)(2)(A) through 152(d)(2)(G), or is a    former employee.                              qualified empowerment zone employee
dependent, as described in section               An employee is not treated as              (defined earlier). The maximum wages
152(d)(2)(H), of an individual who owns       terminated if the corporate employer is       that may be taken into account for each
(or is considered to own under section        acquired by another corporation under         employee is limited to $15,000. The
267(c)) more than 50% in value of the         section 381(a) and the employee               $15,000 amount for any employee is
outstanding stock of the corporation.         continues to be employed by the               reduced by the amount of wages paid or
• If the employer is an entity other than a   acquiring corporation. Nor is a mere          incurred during the calendar year on
corporation, any individual who owns          change in the form of conducting the          behalf of that employee that are used in
directly or indirectly more than 50% of       trade or business treated as a                figuring the work opportunity credit
the capital and profits interest, including   termination if the employee continues to      (Form 5884).
constructive ownership, in the entity.        be employed in such trade or business
                                              and the taxpayer retains a substantial        Line 1b—Qualified Renewal
• If the employer is an estate or trust,                                                    Community Wages
any individual who is a grantor,              interest therein.
beneficiary, or fiduciary of the estate or                                                  The renewal community employment
trust (or a dependent, as described in
                                              Wages                                         credit for calendar years after 2009 has
section 152(d)(2)(H), of such an              Wages are defined in section 51(c) and        expired. Skip line 1b and enter the
individual), or any individual who is a       generally are wages (excluding tips)          amount from line 1a on line 2.
relative, as described in sections            subject to the Federal Unemployment              Qualified renewal community wages
152(d)(2)(A) through 152(d)(2)(G), of the     Tax Act (FUTA), without regard to the         are qualified wages paid or incurred by
grantor, beneficiary, or fiduciary of the     FUTA dollar limitation. The following are     an employer for services performed by
estate or trust.                              also treated as wages.                        an employee while the employee is a
• Any person who owns (or is considered       • Amounts paid or incurred by the             qualified renewal community employee
to own under section 318) more than 5%        employer as educational assistance            (defined earlier). The maximum wages
of the outstanding or voting stock of the     payments excludable from the                  that may be taken into account for each
employer, or if not a corporate employer,     employee’s gross income under section         employee is limited to $10,000. The
more than 5% of the capital or profits        127. However, this does not apply if the      $10,000 amount for any employee is
interest in the employer.                     employee has a relationship to the            reduced by the amount of wages paid or
                                              employer described in section 267(b) or       incurred during the calendar year on
• Any individual employed by the
                                              707(b)(1) (substituting "10 percent" for      behalf of that employee that are used in
employer for less than 90 days. For
                                              “50 percent” in those sections) or the        figuring the work opportunity credit
exceptions, see Early termination of
                                              employer and employee are engaged in          (Form 5884).
employee, later.
                                              trades or businesses under common
• Any individual employed by the              control (within the meaning of sections
employer at any private or commercial         52(a) and (b)).
golf course, country club, massage
                                              • Amounts paid or incurred by the
parlor, hot tub facility, suntan facility,
                                              employer on behalf of an employee
racetrack or other facility used for
                                              under age 19 for a youth training
gambling, or any store the principal
                                              program operated by that employer in
business of which is the sale of alcoholic
                                              conjunction with local education officials.
beverages for consumption off premises.
Form 8844 (2010)                                                                                                                 Page 4

Line 2                                        Line 7                                            You are not required to provide the
In general, you must reduce your              Enter the passive activity credit allowed      information requested on a form that is
deduction for salaries and wages and          for the 2010 EZRCE credit from Form            subject to the Paperwork Reduction Act
certain educational and training costs by     8582-CR or Form 8810. See the                  unless the form displays a valid OMB
the line 2 credit amount. You must make       instructions for the applicable form for       control number. Books or records
this reduction even if you cannot take        details.                                       relating to a form or its instructions must
the full credit this year because of the                                                     be retained as long as their contents
tax liability limit. If you capitalized any   Line 9                                         may become material in the
costs on which you figured the credit,        Use only if you amend your 2010 return         administration of any Internal Revenue
reduce the amount capitalized by the          to carry back an unused credit from            law. Generally, tax returns and return
amount of the credit attributable to these    2011.                                          information are confidential, as required
costs.                                                                                       by section 6103.
                                              Line 11
   Members of a controlled group of                                                             The time needed to complete and file
                                              A cooperative described in section             this form will vary depending on
corporations and businesses under             1381(a) must allocate to its patrons the
common control are treated as a single                                                       individual circumstances. The estimated
                                              credit in excess of its tax liability limit.   burden for individual taxpayers filing this
employer in determining the credit. The       Therefore, to figure the unused amount
members share the credit in the same                                                         form is approved under OMB control
                                              of the credit allocated to patrons, the        number 1545-0074 and is included in the
proportion that they paid or incurred         cooperative must first figure its tax
qualifying wages.                                                                            estimates shown in the instructions for
                                              liability. While any excess is allocated to    their individual income tax return. The
Line 5                                        patrons, any credit recapture applies as       estimated burden for all other taxpayers
                                              if the cooperative had claimed the entire      who file this form is shown below.
Enter the amount included on line 4 that
is from a passive activity. Generally, a                                                     Recordkeeping . . . . 4 hr., 4 min.
passive activity is a trade or business in                                                   Learning about the
which you did not materially participate.     Paperwork Reduction Act Notice. We
                                                                                             law or the form . . . . 2 hr., 22 min.
Rental activities are generally considered    ask for the information on this form to
passive activities, whether or not you        carry out the Internal Revenue laws of         Preparing and sending
                                              the United States. You are required to         the form to the IRS . . 2 hr., 33 min.
materially participate. For details, see
Form 8582-CR, Passive Activity Credit         give us the information. We need it to            If you have comments concerning the
Limitations (for individuals, trusts, and     ensure that you are complying with these       accuracy of these time estimates or
estates), or Form 8810, Corporate             laws and to allow us to figure and collect     suggestions for making this form
Passive Activity Loss and Credit              the right amount of tax.                       simpler, we would be happy to hear from
Limitations (for corporations).                                                              you. See the instructions for the tax
                                                                                             return with which this form is filed.

Description: IRS Form 8844 - Empowerment Zone and Renewal Community Employment Credit - 2010