General Information
Introduction
How To Avoid Common Mistakes
Mistakes can delay your refund or result in notices being sent to you.
Make sure you entered the correct name and social security number (SSN) for each dependent you claim on line 6c. Check that each dependent's name and SSN agrees with his or her social security card. For each child under age 17 who is a qualifying child for the child tax credit, make sure you either checked the box in line 6c, column (4), or completed Form 8901.
Check your math, especially for the child tax credit, earned income credit (EIC), taxable social security benefits, total income, itemized deductions or standard deduction, deduction for exemptions, taxable income, total tax, federal income tax withheld, and refund or amount you owe.
Be sure you use the correct method to figure your tax. See the instructions for line 44 that begin on page 33.
Be sure to enter your SSN in the space provided on page 1 of Form 1040. If you are married filing a joint or separate return, also enter your spouse's SSN. Be sure to enter your SSN in the space next to your name. Check that your name and SSN agree with your social security card.
Make sure your name and address are correct on the peel-off label. If not, enter the correct information. If you did not get a peel-off label, enter your (and your spouse's) name in the same order as shown on your last return.
If you are taking the standard deduction and you checked any box on line 39a or 39b or you (or your spouse if filing jointly) can be claimed as a dependent on someone else's 2007 return, see page 31 to be sure you entered the correct amount on line 40.
If you received capital gain distributions but were not required to file Schedule D, make sure you checked the box on line 13.
If you are taking the EIC, be sure you used the correct column of the EIC Table for your filing status and the number of children you have.
Remember to sign and date Form 1040 and enter your occupation(s).
Attach your Form(s) W-2 and other required forms and schedules. Put all forms and schedules in the proper order. See Assemble Your Return on page 62.
If you owe tax and are paying by check or money order, be sure to include all the required information on your payment. See the instructions for line 76 that begin on page 60 for details.
What Are Your Rights as a Taxpayer?
You have the right to be treated fairly, professionally, promptly, and courteously by IRS employees. Our goal at the IRS is to protect your rights so that you will have the highest confidence in the integrity, efficiency, and fairness of our tax system. To ensure that you always receive such treatment, you should know about the many rights you have at each step of the tax process. For details, see Pub. 1.
Innocent Spouse Relief
Generally, both you and your spouse are each responsible for paying the full amount of tax, interest, and penalties on your joint return. However, you may qualify for relief from liability for tax on a joint return if (a) there is an understatement of tax because your spouse omitted income or claimed false deductions or credits, (b) you are divorced, separated, or no longer living with your spouse, or (c) given all the facts and circumstances, it would not be fair to hold you liable for the tax. To request relief, you generally must file Form 8857 no later than 2 years after the date on which the IRS first attempted to collect the tax from you. For more information, see Pub. 971 and Form 8857 or you can call the Innocent Spouse office toll-free at 1-866-897-4270.
Income Tax Withholding and Estimated Tax Payments for 2008
If the amount you owe or the amount you overpaid is large, you may want to file a new Form W-4 with your employer to change the amount of income tax withheld from your 2008 pay. For details on how to complete Form W-4, see Pub. 919. If you have pension or annuity income, use Form W-4P. If you receive certain government payments (such as unemployment compensation or social security benefits) you can have tax withheld from those payments by giving the payer Form W-4V.
In general, you do not have to make estimated tax payments if you expect that your 2008 Form 1040 will show a tax refund or a tax balance due of less than $1,000. If your total estimated tax for 2008 is $1,000 or more, see Form 1040-ES. It has a worksheet you can use to see if you have to make estimated tax payments. For more details, see Pub. 505.
Do Both the Name and SSN on Your Tax Forms Agree With Your Social Security Card?
If not, certain deductions and credits may be reduced or disallowed, your refund may be delayed, and you may not receive credit for your social security earnings. If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. If the name or SSN on your social security card is incorrect, call the Social Security Administration at 1-800-772-1213.
Secure Your Tax Records from Identity Theft
Identity theft occurs when someone uses your personal information such as your name, social security number (SSN), or other identifying information, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund.
To reduce your risk:
Protect your SSN,
Ensure your employer is protecting your SSN, and
Be careful when choosing a tax preparer.
Call the IRS at 1-800-829-1040 if you think your identity has been used inappropriately for tax purposes.
Victims of identity theft who are experiencing economic harm or a systemic problem, or are seeking help in resolving tax problems that have not been resolved through normal channels, may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059.
Protect yourself from suspicious emails or phishing schemes. Phishing is the creation and use of email and websites designed to mimic legitimate business emails and websites. The most common form is the act of sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request detailed personal information through email or ask taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts.
If you receive an unsolicited email claiming to be from the IRS, forward the message to phishing@irs.gov. You may also report misuse of the IRS name, logo, forms, or other IRS property to the Treasury Inspector General for Tax Administration toll-free at 1-800-366-4484. You can forward suspicious emails to the Federal Trade Commission at spam@uce.gov or contact them at www.ftc.gov/idtheft or 1-877-IDTHEFT (1-877-438-4338).
How Do You Make a Gift To Reduce Debt Held By the Public?
If you wish to do so, make a check payable to “ Bureau of the Public Debt. ” You can send it to: Bureau of the Public Debt, Department G, P.O. Box 2188, Parkersburg, WV 26106-2188. Or you can enclose the check with your income tax return when you file. Do not add your gift to any tax you may owe. See page 60 for details on how to pay any tax you owe.
TIP: You may be able to deduct this gift on your 2008 tax return.
How Long Should Records Be Kept?
Keep a copy of your tax return, worksheets you used, and records of all items appearing on it (such as Forms W-2 and 1099) until the statute of limitations runs out for that return. Usually, this is 3 years from the date the return was due or filed or 2 years from the date the tax was paid, whichever is later. You should keep some records longer. For example, keep property records (including those on your home) as long as they are needed to figure the basis of the original or replacement property. For more details, see Pub. 552.
Amended Return
File Form 1040X to change a return you already filed. Generally, Form 1040X must be filed within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later. But you may have more time to file Form 1040X if you live in a Presidentially declared disaster area or you are physically or mentally unable to manage your financial affairs. See Pub. 556 for details.
Need a Copy of Your Tax Return?
If you need a copy of your tax return, use Form 4506. There is a $39 fee (subject to change) for each return requested. If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, this fee will be waived. If you want a free transcript of your tax return or account, use Form 4506-T or call us. See page 81 for the number.
Death of a Taxpayer
If a taxpayer died before filing a return for 2007, the taxpayer's spouse or personal representative may have to file and sign a return for that taxpayer. A personal representative can be an executor, administrator, or anyone who is in charge of the deceased taxpayer's property. If the deceased taxpayer did not have to file a return but had tax withheld, a return must be filed to get a refund. The person who files the return must enter “ Deceased, ” the deceased taxpayer's name, and the date of death across the top of the return. If this information is not provided, it may delay the processing of the return.
If your spouse died in 2007 and you did not remarry in 2007, or if your spouse died in 2008 before filing a return for 2007, you can file a joint return. A joint return should show your spouse's 2007 income before death and your income for all of 2007. Enter “ Filing as surviving spouse ” in the area where you sign the return. If someone else is the personal representative, he or she must also sign.
The surviving spouse or personal representative should promptly notify all payers of income, including financial institutions, of the taxpayer's death. This will ensure the proper reporting of income earned by the taxpayer's estate or heirs. A deceased taxpayer's social security number should not be used for tax years after the year of death, except for estate tax return purposes.
Claiming a Refund for a Deceased Taxpayer
If you are filing a joint return as a surviving spouse, you only need to file the tax return to claim the refund. If you are a court-appointed representative, file the return and attach a copy of the certificate that shows your appointment. All other filers requesting the deceased taxpayer's refund must file the return and attach Form 1310.
For more details, use TeleTax topic 356 (see page 79) or see Pub. 559.
Past Due Returns
The integrity of our tax system and well-being of our country depend, to a large degree, on the timely filing and payment of taxes by each individual, family, and business in this country. Those choosing not to file and pay their fair share increase the burden on the rest of us to support our schools, maintain and repair roadways, and the many other ways our tax dollars help to make life easier for all citizens.
Some people don't know they should file a tax return; some don't file because they expect a refund; and some don't file because they owe taxes. Encourage your family, neighbors, friends, and coworkers to do their fair share by filing their federal tax returns and paying any tax due on time.
If you or someone you know needs to file past due tax returns, use TeleTax topic 153 (see page 79)
Other Ways To Get Help
Send Your Written Tax Questions to the IRS
You should get an answer in about 30 days. For the mailing address, call us at 1-800-829-1040 (deaf customers with access to TTY/TDD equipment may call 1-800-829-4059). Do not send questions with your return.
Research Your Tax Questions Online
You can find answers to many of your tax questions online in several ways by accessing the IRS website at www.irs.gov/help and then clicking on “ Help With Tax Questions. ” Here are some of the methods you may want to try.
Frequently asked questions. This section contains an extensive list of questions and answers. You can select your question by category or keyword.
Tax trails. This is an interactive section which asks questions you can answer by selecting “ Yes ” or “ No. ”
Tax topics. This is an online version of the TeleTax topics listed on pages 79 and 80.
Free Help With Your Return
Free help in preparing your return is available nationwide from IRS-sponsored volunteers. These volunteers are trained and certified to prepare federal income tax returns by passing an IRS test. The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers. The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax return preparation. VITA/TCE tax preparation sites must adhere to strict quality standards necessary to prepare accurate returns. Free electronic filing is offered by IRS authorized e-file providers at many of the VITA/TCE locations nationwide. Volunteers will help you with claiming the credits and deductions you may be entitled to. If you are a member of the military, you can also get assistance on military tax benefits, such as combat zone tax benefits, at an office within your installation. To find the nearest AARP Tax-Aide site, visit AARP's website at www.aarp.org/taxaide or call 1-888-227-7669.
When you go for help, take proof of identity and social security numbers (or individual taxpayer identification numbers) for your spouse, your dependents, and yourself. Also take a copy of your 2006 tax return (if available), all your Forms W-2, 1099, and 1098 for 2007, and any other information about your 2007 income and expenses.
Everyday Tax Solutions
You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Call your local Taxpayer Assistance Center for an appointment.
Online Services
If you subscribe to an online service, ask about online filing or tax information.
Help for People With Disabilities
Telephone help is available using TTY/TDD equipment by calling 1-800-829-4059. Braille materials are available at libraries that have special services for people with disabilities.
Interest and Penalties
You do not have to figure the amount of any interest or penalties you may owe. Because figuring these amounts can be complicated, we will do it for you if you want. We will send you a bill for any amount due.
If you include interest or penalties (other than the estimated tax penalty) with your payment, identify and enter the amount in the bottom margin of Form 1040, page 2. Do not include interest or penalties (other than the estimated tax penalty) in the amount you owe on line 76.
Interest
We will charge you interest on taxes not paid by their due date, even if an extension of time to file is granted. We will also charge you interest on penalties imposed for failure to file, negligence, fraud, substantial valuation misstatements, substantial understatements of tax, and reportable transaction understatements. Interest is charged on the penalty from the due date of the return (including extensions).
Penalties
Late filing. If you do not file your return by the due date (including extensions), the penalty is usually 5% of the amount due for each month or part of a month your return is late, unless you have a reasonable explanation. If you do, attach it to your return. The penalty can be as much as 25% of the tax due. The penalty is 15% per month, up to a maximum of 75%, if the failure to file is fraudulent. If your return is more than 60 days late, the minimum penalty will be $100 or the amount of any tax you owe, whichever is smaller.
Late payment of tax. If you pay your taxes late, the penalty is usually ½ of 1% of the unpaid amount for each month or part of a month the tax is not paid. The penalty can be as much as 25% of the unpaid amount. It applies to any unpaid tax on the return. This penalty is in addition to interest charges on late payments.
Frivolous return. In addition to any other penalties, the law imposes a penalty of $5,000 for filing a frivolous return. A frivolous return is one that does not contain information needed to figure the correct tax or shows a substantially incorrect tax because you take a frivolous position or desire to delay or interfere with the tax laws. This includes altering or striking out the preprinted language above the space where you sign.
Other. Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, filing an erroneous refund claim, and fraud. Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. See Pub. 17 for details on some of these penalties.
Refund Information
Introduction
You can check on the status of your 2007 refund if it has been at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). But if you filed Form 8379 with your return, allow 14 weeks (11 weeks if you filed electronically).
Be sure to have a copy of your 2007 tax return available because you will need to know the filing status and the exact whole-dollar amount of your refund. Then, do one of the following.
Go to www.irs.gov and click on Where's My Refund .
Call 1-800-829-4477 24 hours a day, 7 days a week, for automated refund information.
Call 1-800-829-1954 during the hours shown on page 81.
TIP: Refunds are sent out weekly on Fridays. If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back.
Do not send in a copy of your return unless asked to do so.
To get a refund, you generally must file your return within 3 years from the date the return was due (including extensions).
What Is TeleTax?
Introduction
Recorded Tax Information
Recorded tax information is available 24 hours a day, 7 days a week. Select the number of the topic you want to hear. Then, call 1-800-829-4477. Have paper and pencil handy to take notes.
Topics by Internet
TeleTax topics are also available through the IRS website at www.irs.gov.
TeleTax Topics
All topics are available in Spanish.
IRS Help Available
101 IRS services—Volunteer tax assistance, toll-free telephone, walk-in assistance, and outreach programs
102 Tax assistance for individuals with disabilities and the hearing impaired
103 Tax help for small businesses and the self-employed
104 Taxpayer Advocate Service—Help for problem situations
105 Armed Forces tax information
107 Tax relief in disaster situations
IRS Procedures
151 Your appeal rights
152 Refund information
153 What to do if you haven't filed your tax return
154 Forms W-2 and Form 1099-R—What to do if not received
155 Forms and publications—How to order
156 Copy of your tax return—How to get one
157 Change of address—How to notify IRS
158 Ensuring proper credit of payments
159 Prior year(s) Form W-2—How to get a copy of
160 Form 1099-A (Acquisition or Abandonment of Secured Property) and Form 1099-C (Cancellation of Debt)
Collection
201 The collection process
202 Tax payment options
203 Failure to pay child support and federal nontax and state income tax obligations
204 Offers in compromise
205 Innocent spouse relief (and separation of liability and equitable relief)
Alternative Filing Methods
253 Substitute tax forms
General Information
301 When, where, and how to file
303 Checklist of common errors when preparing your tax return
304 Extension of time to file your tax return
305 Recordkeeping
306 Penalty for underpayment of estimated tax
307 Backup withholding
308 Amended returns
309 Roth IRA contributions
310 Coverdell education savings accounts
311 Power of attorney information
312 Disclosure authorizations
313 Qualified tuition programs (QTPs)
Filing Requirements, Filing Status, and Exemptions
352 Which form—1040, 1040A, or 1040EZ?
356 Decedents
Types of Income
401 Wages and salaries
403 Interest received
404 Dividends
407 Business income
409 Capital gains and losses
410 Pensions and annuities
411 Pensions—The general rule and the simplified method
412 Lump-sum distributions
413 Rollovers from retirement plans
414 Rental income and expenses
415 Renting residential and vacation property
416 Farming and fishing income
417 Earnings for clergy
418 Unemployment compensation
419 Gambling income and expenses
420 Bartering income
421 Scholarship and fellowship grants
423 Social security and equivalent railroad retirement benefits
424 401(k) plans
425 Passive activities—Losses and credits
427 Stock options
429 Traders in securities (information for Form 1040 filers)
430 Exchange of policyholder interest for stock
Adjustments to Income
451 Individual retirement arrangements (IRAs)
452 Alimony paid
453 Bad debt deduction
455 Moving expenses
456 Student loan interest deduction
457 Tuition and fees deduction
458 Educator expense deduction
Itemized Deductions
501 Should I itemize?
502 Medical and dental expenses
503 Deductible taxes
504 Home mortgage points
505 Interest expense
506 Contributions
507 Casualty and theft losses
508 Miscellaneous expenses
509 Business use of home
510 Business use of car
511 Business travel expenses
512 Business entertainment expenses
513 Educational expenses
514 Employee business expenses
515 Casualty, disaster, and theft losses
Tax Computation
551 Standard deduction
552 Tax and credits figured by the IRS
553 Tax on a child's investment income
554 Self-employment tax
555 Ten-year tax option for lump-sum distributions
556 Alternative minimum tax
557 Tax on early distributions from traditional and Roth IRAs
558 Tax on early distributions from retirement plans
Tax Credits
601 Earned income credit (EIC)
602 Child and dependent care credit
607 Adoption credit
608 Excess social security and RRTA tax withheld
610 Retirement savings contributions credit
IRS Notices
651 Notices—What to do
652 Notice of underreported income—CP 2000
653 IRS notices and bills, penalties, and interest charges
Basis of Assets, Depreciation, and Sale of Assets
701 Sale of your home
703 Basis of assets
704 Depreciation
705 Installment sales
Employer Tax Information
751 Social security and Medicare withholding rates
752 Form W-2—Where, when, and how to file
753 Form W-4—Employee's Withholding Allowance Certificate
754 Form W-5—Advance earned income credit
755 Employer identification number (EIN)—How to apply
756 Employment taxes for household employees
757 Forms 941 and 944—Deposit requirements
758 Form 941—Employer's Quarterly Federal Tax Return and Form 944—Employer's Annual Federal Tax Return
761 Tips—Withholding and reporting
762 Independent contractor vs. employee
Magnetic Media Filers—1099 Series and Related Information Returns
801 Who must file magnetically
802 Applications, forms, and information
803 Waivers and extensions
804 Test files and combined federal and state filing
805 Electronic filing of information returns
Tax Information for Aliens and U.S. Citizens Living Abroad
851 Resident and nonresident aliens
856 Foreign tax credit
857 Individual taxpayer identification number (ITIN)—Form W-7
858 Alien tax clearance
Tax Information for Residents of Puerto Rico (in Spanish only)
901 Is a person with income from Puerto Rican sources required to file a U.S. federal income tax return?
902 Credits and deductions for taxpayers with Puerto Rican source income that is exempt from U.S. tax
903 Federal employment tax in Puerto Rico
904 Tax assistance for residents of Puerto Rico
Topic numbers are effectiveJanuary 1, 2008.
Calling the IRS
Introduction
If you cannot find the answer to your question in these instructions or online, please call us for assistance. See Making the Call below. You will not be charged for the call unless your phone company charges you for toll-free calls. Our normal hours of operation are Monday through Friday from 7:00 a.m. to 10:00 p.m. local time. Assistance provided to callers from Alaska and Hawaii will be based on the hours of operation in the Pacific time zone.
TIP: If you want to check the status of your 2007 refund, see Refund Information on page 79.
Before You Call
IRS representatives care about the quality of the service provided to you, our customer. You can help us provide accurate, complete answers to your questions by having the following information available.
The tax form, schedule, or notice to which your question relates.
The facts about your particular situation. The answer to the same question often varies from one taxpayer to another because of differences in their age, income, whether they can be claimed as a dependent, etc.
The name of any IRS publication or other source of information that you used to look for the answer.
To maintain your account security, you may be asked for the following information, which you should also have available.
Your social security number.
The amount of refund and filing status shown on your tax return.
The “ Caller ID Number ” shown at the top of any notice you received.
Your personal identification number (PIN) if you have one.
Your date of birth.
The numbers in your street address.
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.
Evaluation of services provided. The IRS uses several methods to evaluate our telephone service. One method is to record telephone calls for quality purposes only. A random sample of recorded calls is selected for review through the quality assurance process. Other methods include listening to live calls in progress and random selection of customers for participation in a customer satisfaction survey.Making the Call
Call 1-800-829-1040 (deaf customers with access to TTY/TDD equipment may call 1-800-829-4059). Our menu allows you to speak your responses or use your keypad to select a menu option. After receiving your menu selection, the system will direct your call to the appropriate assistance.
Before You Hang Up
If you do not fully understand the answer you receive, or you feel our representative may not fully understand your question, our representative needs to know this. He or she will be happy to take additional time to be sure your question is answered fully.
By law, you are responsible for paying your share of federal income tax. If we should make an error in answering your question, you are still responsible for the payment of the correct tax. Should this occur, however, you will not be charged any penalty.
Quick and Easy Access to Tax Help and Tax Products
TIP: If you live outside the United States, see Pub. 54 to find out how to get help and tax products.
Internet You can access the IRS website 24 hours a day,
7 days a week, at www.irs.gov.
Online services and help. Go to www.irs.gov to:
Access Free File, a free commercial income tax preparation and electronic filing service available to taxpayers with adjusted gross income of $54,000 or less.
Check the status of your 2007 refund. Click on “ Where's My Refund. ”
See answers to many questions. Click on “ Frequently Asked Questions. ”
Figure your withholding allowances using our
Withholding Calculator at www.irs.gov/individuals.Sign up for e-News Subscriptions to get the latest tax news on a variety of topics by email.
Send us your comments or request help.
Get disaster relief information. Enter keyword “ Disaster. ”
Safeguard your privacy. Enter keyword “ Privacy Policy. ”
For forms and instructions, click on “ Form and Instruction number. ”
For publications, click on “ Publication number. ”
For a subject index to forms, instructions, and publications, click on “ Topical index. ”
For prior year forms, instructions, and publications, click on “ Previous years. ”
For current year products, click on “ Forms and publications by U.S. mail. ”
For a tax booklet of forms and instructions, click on “ Tax packages. ”
For tax products on a CD, click on “ Tax products on CD-ROM (Pub. 1796). ” See CD/DVD on this page.
Phone
Tax forms and publications. Call 1-800-TAX-FORM (1-800-829-3676) to order current and prior year forms, instructions, and publications. You should receive your order within 10 working days.
Tax help and questions. Call 1-800-829-1040.
Hearing Impaired TTY/TDD. Call 1-800-829-4059.
TeleTax information - 24 hour tax information. Call 1-800-829-4477. See pages 79 and 80 for topic numbers and details.
Refund hotline. Call 1-800-829-1954.
Walk-In You can pick up some of the most requested forms, instructions, and publications at many IRS offices, post offices, and libraries. Also, some grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have reproducible tax products available to photocopy or print from a CD.
Mail You can order forms, instructions, and publications by completing the order blank on page 85. You should receive your order within 10 days after we receive your request.
CD/DVD Buy IRS Publication 1796 (IRS Tax Products CD) for $35. Price is subject to change. There may be a handling fee. The CD includes current-year and prior-year forms, instructions, and publications; Internal Revenue Bulletins; and toll-free and email technical support. As a bonus, you will get the IRS Tax Products DVD. The CD is released twice during the year. The first release will ship the beginning of January 2008 and the final release (including the bonus DVD) will ship the beginning of March 2008. The CD does not support electronic filing.
Internet. Buy the CD from:
National Technical Information Service (NTIS) at
www.irs.gov/cdordersGovernment Printing Office (GPO) at
http://bookstore.gpo.gov (search for Pub. 1796)
NTIS at 1-877-233-6767
GPO at 1-866-512-1800
Disclosure, Privacy Act, and Paperwork Reduction Act Notice
The IRS Restructuring and Reform Act of 1998, the Privacy Act of 1974, and the Paperwork Reduction Act of 1980 require that when we ask you for information we must first tell you our legal right to ask for the information, why we are asking for it, and how it will be used. We must also tell you what could happen if we do not receive it and whether your response is voluntary, required to obtain a benefit, or mandatory under the law.
This notice applies to all papers you file with us, including this tax return. It also applies to any questions we need to ask you so we can complete, correct, or process your return; figure your tax; and collect tax, interest, or penalties.
Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return or statement with us for any tax you are liable for. Your response is mandatory under these sections. Code section 6109 requires that you provide your social security number or individual taxpayer identification number on what you file. This is so we know who you are, and can process your return and other papers. You must fill in all parts of the tax form that apply to you. But you do not have to check the boxes for the Presidential Election Campaign Fund or for the third-party designee. You also do not have to provide your daytime phone number.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.
We ask for tax return information to carry out the tax laws of the United States. We need it to figure and collect the right amount of tax.
If you do not file a return, do not provide the information we ask for, or provide fraudulent information, you may be charged penalties and be subject to criminal prosecution. We may also have to disallow the exemptions, exclusions, credits, deductions, or adjustments shown on the tax return. This could make the tax higher or delay any refund. Interest may also be charged.
Generally, tax returns and return information are confidential, as stated in Code section 6103. However, Code section 6103 allows or requires the Internal Revenue Service to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, U.S. commonwealths or possessions, and certain foreign governments to carry out their tax laws. We may disclose your tax information to the Department of Treasury and contractors for tax administration purposes; and to other persons as necessary to obtain information which we cannot get in any other way in order to determine the amount of or to collect the tax you owe. We may disclose your tax information to the Comptroller General of the United States to permit the Comptroller General to review the Internal Revenue Service. We may disclose your tax information to committees of Congress; federal, state, and local child support agencies; and to other federal agencies for the purposes of determining entitlement for benefits or the eligibility for and the repayment of loans. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
Please keep this notice with your records. It may help you if we ask you for other information. If you have questions about the rules for filing and giving information, please call or visit any Internal Revenue Service office.
We Welcome Comments on Forms
We try to create forms and instructions that can be easily understood. Often this is difficult to do because our tax laws are very complex. For some people with income mostly from wages, filling in the forms is easy. For others who have businesses, pensions, stocks, rental income, or other investments, it is more difficult.
You can write to Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send your return to this address. Instead, see the back cover.
Estimates of Taxpayer Burden
The table below shows burden estimates by form type and type of taxpayer. Time burden is further broken out by taxpayer activity. The largest component of time burden for all taxpayers is recordkeeping, as opposed to form completion and submission. In addition, the time burden associated with form completion and submission activities is closely tied to preparation method (self-prepared without software, self-prepared with software, and prepared by paid preparer).
Time spent and out-of-pocket costs are estimated separately. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples of out-of-pocket costs include tax return preparation and submission fees, postage, tax preparation software costs, photocopying costs, and phone calls (if not toll-free).
Both time and cost burdens are national averages and do not necessarily reflect a “ typical ” case. For instance, the average time burden for all taxpayers filing a 1040, 1040A, or 1040EZ was 26.4 hours, with an average cost of $207 per return. This average includes all associated forms and schedules, across all preparation methods and all taxpayer activities. Taxpayers filing Form 1040 had an average burden of about 34 hours, and taxpayers filing Form 1040A and Form 1040EZ averaged about 10 hours. However, within each of these estimates, there is significant variation in taxpayer activity. Similarly, tax preparation fees vary extensively depending on the taxpayer's tax situation and issues, the type of professional preparer, and the geographic area.
The data shown are the best estimates available as of September 24, 2007, from tax returns filed for 2006. The method used to estimate taxpayer burden incorporates results from a taxpayer burden survey conducted in 2000 and 2001. The estimates are subject to change as new data becomes available. The estimates do not include burden associated with post-filing activities. However, operational IRS data indicates that electronically prepared and e-filed returns have fewer errors, implying a lower overall post-filing burden.
If you have comments concerning the time and cost estimates below, you can contact us at either one of the addresses shown under We Welcome Comments on Forms on page 83.
The average time and costs required to complete and file Form 1040, Form 1040A, Form 1040EZ, their schedules, and accompanying forms will vary depending on individual circumstances. The estimated averages are: Average Time Burden (Hours) Major Form Filed orType of Taxpayer Percentage
of Returns Total
Time Record
Keeping Tax
Planning Form
Completion Form
Submission All
Other Average
Cost
(Dollars)
| All taxpayers | 100 | 26.4 | 15.0 | 4.7 | 3.3 | 0.6 | 2.8 | $207 | |
| Major forms filed | |||||||||
| 1040 | 69 | 33.5 | 19.8 | 5.9 | 3.7 | 0.6 | 3.4 | 267 | |
| 1040A & 1040EZ | 31 | 10.4 | 4.2 | 1.8 | 2.5 | 0.5 | 1.4 | 72 | |
| Type of taxpayer | |||||||||
| Nonbusiness* | 71 | 14.1 | 5.6 | 3.3 | 3.0 | 0.5 | 1.6 | 114 | |
| Business* | 29 | 56.9 | 38.4 | 8.0 | 4.2 | 0.7 | 5.7 | 440 | |
| *You are a “ business ” filer if you file one or more of the following with Form 1040: Schedule C, C-EZ, E, or F or Form 2106 or 2106-EZ. You are a “ nonbusiness ” filer if you did not file any of those schedules or forms with Form 1040. |
Order Blank for Forms and Publications
Introduction
The most frequently ordered forms and publications are listed on the order blank below. You will receive two copies of each form, one copy of the instructions, and one copy of each publication you order. To help reduce waste, please order only the items you need to prepare your return.
TIP: For faster ways of getting the items you need, go to www.irs.gov/formspubs.
How To Use the Order Blank
Circle the items you need on the order blank below. Use the blank spaces to order items not listed. If you need more space, attach a separate sheet of paper.
Print or type your name and address accurately in the space provided below to ensure delivery of your order. Enclose the order blank in an envelope and mail it to the IRS address shown on this page. You should receive your order within 10 days after receipt of your request.
Do not send your tax return to the address shown on this page. Instead, see the back cover.
Mail Your Order Blank To:
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
Major Categories of Federal Income and Outlays for Fiscal Year 2006
Federal Budget
On or before the first Monday in February of each year, the President is required by law to submit to the Congress a budget proposal for the fiscal year that begins the following October. The budget plan sets forth the President's proposed receipts, spending, and the surplus or deficit for the Federal Government. The plan includes recommendations for new legislation as well as recommendations to change, eliminate, and add programs. After receiving the President's proposal, the Congress reviews it and makes changes. It first passes a budget resolution setting its own targets for receipts, outlays, and the surplus or deficit. Next, individual spending and revenue bills that are consistent with the goals of the budget resolution are enacted.
In fiscal year 2006 (which began on October 1, 2005, and ended on September 30, 2006), federal income was $2.407 trillion and outlays were $2.655 trillion, leaving a deficit of $0.248 trillion.
Footnotes for Certain Federal Outlays
Note. The percentages on this page exclude undistributed offsetting receipts, which were $68 billion in fiscal year 2006. In the budget, these receipts are offset against spending in figuring the outlay totals shown above. These receipts are for the U.S. Government's share of its employee retirement programs, rents and royalties on the Outer Continental Shelf, and proceeds from the sale of assets.
Social security, Medicare, and other retirement: These programs provide income support for the retired and disabled and medical care for the elderly.
National defense, veterans, and foreign affairs: About 19% of outlays were to equip, modernize, and pay our armed forces and to fund the Global War on Terrorism and other national defense activities; about 3% were for veterans benefits and services; and about 1% were for international activities, including military and economic assistance to foreign countries and the maintenance of U.S. embassies abroad.
Physical, human, and community development: These outlays were for agriculture; natural resources; environment; transportation; aid for elementary and secondary education and direct assistance to college students; job training; deposit insurance, commerce and housing credit, and community development; and space, energy, and general science programs.
Social programs: About 13% of total outlays were for Medicaid, food stamps, temporary assistance for needy families, supplemental security income, and related programs; and the remaining outlays were for health research and public health programs, unemployment compensation, assisted housing, and social services.
1040 - Additional Material
| Where Do You File? | If an envelope came with this booklet, please use it. If you do not have one or if you moved during the year, mail your return to the address shown below that applies to you. If you want to use a private delivery service, see page 9. | Envelopes without enough postage will be returned to you by the post office. Your envelope may need additional postage if it contains more than five pages or is oversized (for example, it is over ¼″ thick). Also, include your complete return address. | ||||
| THEN use this address if you: | ||||||
| IF you live in... | Are not enclosing a check or money order... |
Are enclosing a check or money order... |
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| Alabama, Delaware, Florida, Georgia, North Carolina, Rhode Island, South Carolina, Virginia | Department of the Treasury Internal Revenue Service Center Atlanta, GA 39901-0002 | Department of the Treasury Internal Revenue Service Center Atlanta, GA 39901-0102 |
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| District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New York, Vermont | Department of the Treasury Internal Revenue Service Center Andover, MA 05501-0002 | Department of the Treasury Internal Revenue Service Center Andover, MA 05501-0102 |
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| Arkansas, Connecticut, Illinois, Indiana, Michigan, Missouri, New Jersey, Ohio, Pennsylvania, West Virginia | Department of the Treasury Internal Revenue Service Center Kansas City, MO 64999-0002 | Department of the Treasury Internal Revenue Service Center Kansas City, MO 64999-0102 |
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| Kentucky, Louisiana, Mississippi, Tennessee, Texas, APO, FPO | Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0002 | Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0102 |
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| Alaska, Arizona, California, Colorado, Hawaii, Idaho, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming | Department of the Treasury Internal Revenue Service Center Fresno, CA 93888-0002 | Department of the Treasury Internal Revenue Service Center Fresno, CA 93888-0102 |
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| American Samoa, nonpermanent residents of Guam or the Virgin Islands*, Puerto Rico (or if excluding income under Internal Revenue Code section 933), dual-status aliens, a foreign country: U.S. citizens and those filing Form 2555, 2555-EZ, or Form 4563 | Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA | Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA |
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| * Permanent residents of Guam should use: Department of Revenue and Taxation, Government of Guam, P.O. Box 23607, GMF, GU 96921; permanent residents of the Virgin Islands should use: V.I. Bureau of Internal Revenue, 9601 Estate Thomas, Charlotte Amalie, St. Thomas, VI 00802. | ||||||
Keeping Your Data Protected