Frequently Downloaded Forms and Publications (PDF)

Form 1040	- (Instructions)
Form 1040-A	- (Instructions)
Form 1040-EZ	- (Instructions)
Form 1040-ES	- (instructions included)
Form 1040 Sch A	- (Instructions)
Form 1040 Sch B	- (instructions included)
Form 1040 Sch C	- (Instructions)

Form 1040 Sch D	- (Instructions)
Form 8949	- (Instructions)
Form 1040 Sch SE	- (Instructions)
Form 1040-X	- (Instructions)
Inst 1040 Tax Tables
Form W-2	- (Instructions)
Form W-4	- (instructions included)

Form W-9	- (Instructions)
Form 941	- (Instructions)
Form 1099-MISC	- (Instructions)
Pub 2043 (e-file refund date chart)
Form 4868	- (instructions included)
Form 8863	- (Instructions)
Form 8917	- (instructions included)

Topic #18 – Refund, Amount You Owe, Third Party Designee, Sign Here, Paid Preparer Use Only, Part II

Line 77 - Estimated tax penalty (see instructions)

You may owe this penalty if:

1) Line 76 is at least $1,000 and it is more than 10% of the tax shown on your return, or

2) You did not pay enough estimated tax by any of the due dates. This is true even if you are due a refund. For most people, the “tax shown on your return” is the amount on your 2011 Form1040, line 61, minus the total of any amounts shown on lines 64a, 65, 66, 67, and 70 and Forms 8828, 4137, 5329 (Parts III through VIII only), 8801 (line 27 only), 8839, 8885, and 8919. Also subtract from line 61 any tax on an excess parachute payment, any excise tax on insider stock compensation of an expatriated corporation, any uncollected social security and Medicare or RRTA tax on tips or group-term life insurance, any look-back interest due under section 167(g) or 460(b), and any write-in tax included on line 60 from Form 8885. When figuring the amount on line 61, include household employment taxes only if line 62 is more than zero or you would owe the penalty even if you did not include those taxes.

Exception

You will not owe the penalty if your 2010 tax return was for a tax year of 12 full months and either of the following applies.

1) You had no tax shown on your 2010 return and you were a U.S. citizen or resident for all of 2010.

2) The total of lines 62, 63, and 69 on your 2011 return is at least 100% of the tax shown on your 2010 return (110% of that amount if you are not a farmer or fisher-man, and your adjusted gross income(AGI) shown on your 2010 return was more than $150,000 (more than $75,000 if married filing separately for 2011)). Your estimated tax payments for 2011 must have been made on time and for the required amount.

For most people, the “tax shown on your 2010 return” is the amount on your 2010Form 1040, line 60, minus the total of any amounts shown on lines 63, 64a, 65, 66, and 67 and Forms 8828, 4137, 4136, 5329 (Parts III through VIII only), 8801 (line 27 only), 8885, and 8919. Also subtract from line 60 any tax on an excess parachute payment, any excise tax on insider stock compensation of an expatriated corporation, any uncollected social security and Medicare or RRTA tax on tips or group-term life insurance, any look-back interest due under section 167(g) or 460(b), and any write-in tax included on line 60 from Form 8885.

When figuring the amount on line 60, include household employment taxes only if line 61 is more than zero or you would have owed the estimated tax penalty for 2010 even if you did not include those taxes. But if you entered an amount on your 2010 Schedule H, line 7, include the total of that amount plus the household employment taxes on your 2010 Form 1040, line 59.

Figuring the Penalty

If the Exception just described does not apply and you choose to figure the penalty yourself, use Form 2210 (or 2210-F for farmers and fishermen). Enter any penalty on line 77. Add the penalty to any tax due and enter the total on line 76.

However, if you have an overpayment on line 73, subtract the penalty from the amount you would otherwise enter on line 74a or line 75. Lines 74a, 75, and 77 must equal line 73.

If the penalty is more than the overpayment on line 73, enter -0- on lines 74a and 75. Then subtract line 73 from line 77 and enter the result on line 76.

Do not file Form 2210 with your return unless Form 2210 indicates that you must do so. Instead, keep it for your records.

TIP

Because Form 2210 is complicated, you can leave line 77 blank and the IRS will figure the penalty and send you a bill. We will not charge you interest on the penalty if you pay by the date specified on the bill. If your income varied during the year, the annualized income installment method may reduce the amount of your penalty.

But you must file Form 2210 because the IRS cannot figure your penalty under this method. See the Instructions for Form 2210 for other situations in which you may be able to lower your penalty by filing Form 2210.

Third Party Designee

If you want to allow your preparer, a friend, a family member, or any other person you choose to discuss your 2011 tax return with the IRS, check the “Yes” box in the “Third Party Designee” area of your return. Also, enter the designee’s name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN).

If you check the “Yes” box, you, and your spouse if filing a joint return, are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. You are also authorizing the designee to:

1) Give the IRS any information that is missing from your return,

2) Call the IRS for information about the processing of your return or the status of your refund or payment(s),

3) Receive copies of notices or transcripts related to your return, upon request, and

4) Respond to certain IRS notices about math errors, offsets, and return preparation. You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the IRS. If you want to expand the designee’s authorization, see Pub. 947.

The authorization will automatically end no later than the due date (without regard to extensions) for filing your 2012 tax return. This is April 15, 2013, for most people. If you wish to revoke the authorization before it ends, see Pub. 947.

Sign Here

Form 1040 is not considered a valid return unless you sign it. If you are filing a joint return, your spouse must also sign. If your spouse cannot sign the return, see Pub. 501. Be sure to date your return and enter your occupation(s). If you have someone prepare your return, you are still responsible for the correctness of the return. If your return is signed by a representative for you, you must have a power of attorney attached that specifically authorizes the representative to sign your return. To do this, you can use Form 2848. If you are filing a joint return as a surviving spouse, see Death of a Taxpayer,  later.

Child’s Return

If your child cannot sign the return, either parent can sign the child’s name in the space provided. Then, enter “By (your signature), parent for minor child.”

Daytime Phone Number

Providing your daytime phone number may help speed the processing of your return. We may have questions about items on your return, such as the earned income credit, credit for child and dependent care expenses, etc. If you answer our questions over the phone, we may be able to continue processing your return without mailing you a letter. If you are filing a joint return, you can enter either your or your spouse’s day- time phone number.

Electronic Return Signatures!

To file your return electronically, you must sign the return electronically using a personal identification number (PIN). If you are filing online using software, you must use a Self-Select PIN. If you are filing electronically using a tax practitioner, you can use a Self-Select PIN or a Practitioner PIN.

Self-Select PIN

The Self-Select PIN method allows you to create your own PIN. If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. A PIN is any combination of five digits you choose except five zeros. If you use a PIN, there is nothing to sign and nothing to mail—not even your Forms W-2.

To verify your identity, you will be prompted to enter your adjusted gross in- come (AGI) from your originally filed 2010 federal income tax return, if applicable. Do not use your AGI from an amended return (Form 1040X) or a math error correction made by IRS. AGI is the amount shown on your 2010 Form 1040, line 38; Form 1040A, line 22; or Form 1040EZ, line 4. If you do not have your 2010 income tax return, call the IRS at 1-800-908-9946 to get a free transcript of your return or visit IRS.gov and click on “Order a Tax Return or Account Transcript.” (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. The prior year PIN is the five digit PIN you used to electronically sign your 2010 return.) You will also be prompted to enter your date of birth (DOB).

CAUTION

You cannot use the Self-Select PIN method if you are a first-time filer under age 16 at the end of 2011.

TIP

If you cannot locate your prior year AGI or prior year PIN, use the Electronic Filing PIN Request. This can be found at IRS.gov. Click on “Tools” and then “Electronic Filing PIN Request.” Or you can call 1-866-704-7388.

Practitioner PIN

The Practitioner PIN method allows you to authorize your tax practitioner to enter or generate your PIN.

The practitioner can provide you with details.

Form 8453

You must send in a paper Form 8453 if you have to attach certain forms or other documents that cannot be electronically filed. For details, see Form8453.

Identity Protection PIN

If the IRS gave you an identity protection personal identification number (PIN) because you were a victim of identity theft, enter it in the spaces provided below your daytime phone number. If the IRS has not given you this type of number, leave these spaces blank.

Paid Preparer Use Only

Generally, anyone you pay to prepare your return must sign it and include their Preparer Tax Identification Number (PTIN) in the space provided. The preparer must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign your return.

Assemble Your Return

Assemble any schedules and forms behind Form 1040 in order of the “Attachment Sequence No.” shown in the upper right corner of the schedule or form. If you have supporting statements, arrange them in the same order as the schedules or forms they support and attach them last. Do not attach correspondence or other items unless required to do so. Attach a copy of Forms W-2 and 2439 to the front of Form 1040. If you received a Form W-2c (a corrected Form W-2), attach a copy of your original

Forms W-2 and any Forms W-2c. Also attach Forms W-2G and 1099-R to the front of Form 1040 if tax was withheld.

This concludes our series on the 2011 Form 1040 Exclusive.

Upcoming series: Important tax topics

Thanks for reading my blogs.

Topic #17 - Refund, Amount You Owe, Third Party Designee, Sign Here, Paid Preparer Use Only

Refund

Line 73 – If line 72 is more than line 61, subtract line 61 from line 72. This is the amount you overpaid

If line 73 is under $1, we will send a refund only on written request. If the amount you overpaid is large, you may want to decrease the amount of income tax withheld from your pay by filing a new Form W-4. See Income Tax Withholding and Estimated Tax Payments for 2012 under General Information, later.

Refund Offset

If you owe past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain federal nontax debts, such as student loans, all or part of the overpayment on line 73 may be used (offset) to pay the past-due amount. Offsets for federal taxes are made by the IRS. All other offsets are made by the Treasury Department’s Financial Management Service (FMS). For federal tax offsets, you will receive a notice from the IRS. For all other offsets, you will receive a notice from FMS. To find out if you may have an offset or if you have any questions about it, contact the agency to which you owe the debt.

Injured Spouse

If you file a joint return and your spouse has not paid past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or a federal nontax debt, such as a student loan, part or all of the overpayment on line 73 may be used (offset) to pay the past-due amount. But your part of the overpayment may be refunded to you if certain conditions apply and you complete Form 8379.

For details, use Tele Tax topic 203 or see Form 8379.

Line 74a – Amount of line 72 you want refunded to you. If Form 8888 is attached, check here; Line 74b – Routing number; Line 74c - Checking, Saving; Line 74d – Account number

If you want to check the status of your refund, see  Refund Information, later. Before checking the status of your refund, please wait at least 72 hours after IRS ac- knowledges receipt of your e-filed return (3 to 4 weeks after you mail a paper return). But if you filed Form 5405, 8379, or 8839 with your return, allow 14 weeks (11 weeks if you filed electronically).

Effect of refund on benefits

Any refund you receive cannot be counted as income when determining if you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. These programs include Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security

Income (SSI), and Supplemental Nutrition Assistance Program (food stamps). In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Check with your local benefit coordinator to find out if your refund will affect your benefits.

Fast Refunds!

Choose direct deposit—a fast, simple, safe, secure way to have your refund deposited automatically to your checking or savings account, including an individual retirement arrangement (IRA). See the information about IRAs later.

If you want us to directly deposit the amount shown on line 74a to your checking or savings account, including an IRA, at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) in the United States:

1) Complete lines 74b through 74d (if you want your refund deposited to only one account), or

2) Check the box on line 74a and attach Form 8888 if you want to split the direct deposit of your refund into more than one account or use all or part of your refund to buy paper series I savings bonds.

If you do not want your refund directly deposited to your account, do not check the box on line 74a. Draw a line through the boxes on lines 74b and 74d. We will send you a check instead.

Why Use Direct Deposit?

1) You get your refund faster by direct deposit than you do by check.

2) Payment is more secure. There is no check that can get lost or stolen.

3) It is more convenient. You do not have to make a trip to the bank to deposit your check.

4) It saves tax dollars. It costs the government less to refund by direct deposit.

CAUTION

If you file a joint return and check the box on line 74a and attach Form 8888 or fill in lines 74b through 74d, your spouse may get at least part of the refund.

IRA

You can have your refund (or part of it) directly deposited to a traditional IRA, Roth IRA, or SEP-IRA, but not a SIMPLE IRA. You must establish the IRA at a bank or other financial institution before you request direct deposit. Make sure your direct deposit will be accepted. You must also notify the trustee or custodian of your account of the year to which the deposit is to be applied (unless the trustee or custodian will not accept a deposit for 2011). If you do not, the trustee or custodian can assume the deposit is for the year during which you are filing the return. For example, if you file your 2011 return during 2012 and do not notify the trustee or custodian in advance, the trustee or custodian can assume the deposit to your IRA is for 2012. If you designate your deposit to be for 2011, you must verify that the deposit was actually made to the account by the due date of the return (without regard to extensions). If the deposit is not made by that date, the deposit is not an IRA contribution for 2011. In that case, you must file an amended 2011 return and reduce any IRA deduction and any retirement savings contributions credit you claimed.

CAUTION

You and your spouse, if filing jointly, each may be able to contribute up to $5,000 ($6,000 if age 50 or older at the end of 2011) to a traditional IRA or Roth IRA for 2011. The limit for 2012 is also $5,000

($6,000 if age 50 or older at the end of 2012). You may owe a penalty if your contributions exceed these limits.

For more information on IRAs, see Pub. 590.

TreasuryDirect®

You can request a deposit of your refund (or part of it) to a TreasuryDirect® online account to buy U.S. Treasury marketable securities and savings bonds. For more information, go to  www.treasurydirect.gov.

Form 8888

You can have your refund directly deposited into more than one account or use it to buy up to $5,000 in paper series I savings bonds. You do not need a TreasuryDirect® account to do this. For more information, see the Form 8888 instructions.

Line 74a

You cannot file Form 8888 to split your refund into more than one account or buy paper series I savings bonds if Form 8379 is filed with your return.

Line 74b

The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32. On the sample check below, the routing number is 250250025. Tony and Jennifer Maple would use that routing number unless their financial institution instructed them to use a different routing number for direct deposits.

Ask your financial institution for the correct routing number to enter on line 74b if:

1) The routing number on a deposit slip is different from the routing number on your checks,

2) Your deposit is to a savings account that does not allow you to write checks, or

3) Your checks state they are payable through a financial institution different from the one at which you have your checking account.

Line 74c

Check the appropriate box for the type of account. Do not check more than one box. If the deposit is to an account such as an IRA, health savings account, brokerage account, or other similar account, ask your financial institution whether you should check the “Checking” or “Savings” box. You must check the correct box to ensure your deposit is accepted. For a TreasuryDirect® online account, check the “Savings” box

Line 74d

The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. If the direct deposit to your account(s) is different, you will receive an explanation in the mail different from the amount you expected, about 2 weeks after your refund is deposited.

Reasons Your Direct Deposit Request May Be Rejected

If any of the following apply, your direct deposit request will be rejected and a check will be sent instead.

1) Any numbers or letters on lines 74b through 74d are crossed out or whited out.

2) Your financial institution(s) will not allow a joint refund to be deposited to an individual account. The IRS is not responsible if a financial institution rejects a direct deposit.

3) You request a deposit of your refund to an account that is not in your name (such as your tax preparer’s own account).

4) You file your 2011 return after December 31, 2012.

CAUTION

The IRS is not responsible for a lost refund if you enter the wrong account information. Check with your financial institution to get the correct routing and account numbers and to make sure your direct deposit will be accepted.

Line 75 – Amount of line 73 you want applied to your 2012 estimated tax

Enter on line 75 the amount, if any, of the overpayment on line 73 you want applied to your 2012 estimated tax. We will apply this amount to your account unless you include a statement requesting us to apply it to your spouse’s account. Include your spouse’s social security number in the statement.

CAUTION

This election to apply part or all of the amount overpaid to your 2012 estimated tax cannot be changed later.

Amount You Owe

IRS e-file offers you the electronic payment option of electronic funds withdrawal (EFW). EFW can be used to pay your current year balance due and can be used to make up to four estimated tax payments. If you are filing early, you can schedule your payment for withdrawal from your account on a future date, up to and including April 17, 2012. If you file your return after April 17, 2012, you can include interest and penalty in your payment. Visit www.irs.gov/e-pay for details.

You can also pay using EFTPS, a free tax payment system that allows you to make payments online or by phone. For more information or details on enrolling, visit www.irs.gov/e-pay or www.eftps.gov or call EFTPS’ Customer Service at 1-800-316-6541. TTY/TDD help is available by calling 1-800-733-4829.

Line 76 – Amount you owe. Subtract line 72 from line 61. For details on how to pay, see instruction

TIP

To save interest and penalties, pay your taxes in full by April 17, 2012. You do not have to pay if line 76 is under $1. Include any estimated tax penalty from line 77 in the amount you enter on line 76. You can pay by check, money order, credit or debit card, or EFTPS. Do not include any estimated tax payment for 2012 in this payment. Instead, make the estimated tax payment separately.

To pay by check or money order

Make your check or money order payable to the “United States Treasury” for the full amount due. Do not send cash. Do not attach the payment to your return. Write “2011 Form 1040” and your name, address, daytime phone number, and social security number (SSN) on your payment. If you are filing a joint return, enter the SSN shown first on your tax return.

To help us process your payment, enter the amount on the right side of the checklike this: $ XXX.XX. Do not use dashes or lines (for example, do not enter “$ XXX –” or “$ XXX xx 100 ”).

Then, complete Form 1040-V following the instructions on that form and enclose it in the envelope with your tax return and payment. Although you do not have to use Form 1040-V, doing so allows us to process your payment more accurately and efficiently.

Bad check or payment

The penalty for writing a bad check to the IRS is $25 or 2% of the check, whichever is more. This penalty also applies to other forms of payment if the IRS does not receive the funds. Use Tele Tax topic 206.

To pay by credit or debit card or EFTPS

For information on these payment methods, go to www.irs.gov/e-pay. You may need to (a) increase the amount of income tax withheld from your pay by filing a new Form W-4, (b) increase the tax withheld from other income by filing Form W-4P or W-4V, or (c) make estimated tax payments for 2012. See Income Tax Withholding and Estimated Tax Payments for 2012 under General Information, later.

What If You Cannot Pay?

If you cannot pay the full amount shown on line 76 when you file, you can ask for:

1) An installment agreement, or

2) An extension of time to pay.

Installment agreement

Under an installment agreement, you can pay all or part of the tax you owe in monthly installments. However, even if your request to pay in installments is granted, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 17,2012. You must also pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible when you file. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan or credit card payment.

To ask for an installment agreement, you can apply online or use Form 9465 or 9465-FS. To apply online, go to IRS.gov and click on “Tools” and then “Online Payment Agreement.”

Extension of time to pay

If paying the tax when it is due would cause you an undue hardship, you can ask for an extension of time to pay by filing Form 1127 by April 17, 2012. An extension generally will not be granted for more than 6 months. If you pay after April 17, 2012, you will be charged interest on the tax not paid by April 15, 2012. You must pay the tax before the extension runs out. If you do not, penalties may be imposed.

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Next up: Topic #17 - Refund, Amount You Owe, Third Party Designee, Sign Here, Paid Preparer Use Only, Part II