Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Amend 2008 Tax Return

How Do You Fill Out A 1040x Form1040ez Tax Form 2014Hand R Block Taxes2011 Irs Form 1040I Need Tax Instruction Booklet For 1040ezHr Block 2011 Tax SoftwareFree E File State Tax ReturnForm 1040x Amended Us Individual Income Tax ReturnIrs Forms 20092012 1040 Tax ReturnE File My State Taxes For FreeTax Forms OnlineE-file Back Taxes Free For Past 3 Years Taxe2011 Taxes Free OnlineCan I File 2012 Taxes In 2013Turbotax Login 2010Form 1040 Schedule AFree E-file Taxes State And FederalForm 1040 Ez 2013Income Tax Form 1040ez InstructionsForm 1040ez InstructionsHow Can I File My 2012 Taxes OnlineAmend My Taxes OnlineHow To File State Income Tax For FreeMilitary TurbotaxFile 1040ez For Free2007 Tax ReturnsTax Forms Download Ez 1040Where Can I File Only My State Taxes For FreeWww Irs Gov Form 1040x2008 Federal Tax FormsTax Form 1040 EzEfile Free2012 Form 1040ezFree Tax Filing For 2012Ez Form 1040How To File An Amended Tax Return For 2011How To File Taxes For 2012File Taxes Last YearMyfreetax

Amend 2008 Tax Return

Amend 2008 tax return 2. Amend 2008 tax return   Tax Shelters and Other Reportable Transactions Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Abusive Tax SheltersRules To Curb Abusive Tax Shelters Investor Reporting Penalties Whether To Invest Introduction Investments that yield tax benefits are sometimes called “tax shelters. Amend 2008 tax return ” In some cases, Congress has concluded that the loss of revenue is an acceptable side effect of special tax provisions designed to encourage taxpayers to make certain types of investments. Amend 2008 tax return In many cases, however, losses from tax shelters produce little or no benefit to society, or the tax benefits are exaggerated beyond those intended. Amend 2008 tax return Those cases are called “abusive tax shelters. Amend 2008 tax return ” An investment that is considered a tax shelter is subject to restrictions, including the requirement that it be disclosed, as discussed later. Amend 2008 tax return Topics - This chapter discusses: Abusive Tax Shelters , Rules To Curb Abusive Tax Shelters , Investor Reporting , Penalties , and Whether To Invest . Amend 2008 tax return Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 556 Examination of Returns, Appeal Rights, and Claims for Refund 561 Determining the Value of Donated Property 925 Passive Activity and At-Risk Rules Form (and Instructions) 8275 Disclosure Statement 8275-R Regulation Disclosure Statement 8283 Noncash Charitable Contributions 8886 Reportable Transaction Disclosure Statement See chapter 5, How To Get Tax Help , for information about getting these publications and forms. Amend 2008 tax return Abusive Tax Shelters Abusive tax shelters are marketing schemes involving artificial transactions with little or no economic reality. Amend 2008 tax return They often make use of unrealistic allocations, inflated appraisals, losses in connection with nonrecourse loans, mismatching of income and deductions, financing techniques that do not conform to standard commercial business practices, or mischaracterization of the substance of the transaction. Amend 2008 tax return Despite appearances to the contrary, the taxpayer generally risks little. Amend 2008 tax return Abusive tax shelters commonly involve package deals designed from the start to generate losses, deductions, or credits that will be far more than present or future investment. Amend 2008 tax return Or, they may promise investors from the start that future inflated appraisals will enable them, for example, to reap charitable contribution deductions based on those appraisals. Amend 2008 tax return (But see the appraisal requirements discussed under Rules To Curb Abusive Tax Shelters , later. Amend 2008 tax return ) They are commonly marketed in terms of the ratio of tax deductions allegedly available to each dollar invested. Amend 2008 tax return This ratio (or “write-off”) is frequently said to be several times greater than one-to-one. Amend 2008 tax return Because there are many abusive tax shelters, it is not possible to list all the factors you should consider in determining whether an offering is an abusive tax shelter. Amend 2008 tax return However, you should ask the following questions, which might provide a clue to the abusive nature of the plan. Amend 2008 tax return Do the tax benefits far outweigh the economic benefits? Is this a transaction you would seriously consider, apart from the tax benefits, if you hoped to make a profit? Do shelter assets really exist and, if so, are they insured for less than their purchase price? Is there a nontax justification for the way profits and losses are allocated to partners? Do the facts and supporting documents make economic sense? In that connection, are there sales and resales of the tax shelter property at ever increasing prices? Does the investment plan involve a gimmick, device, or sham to hide the economic reality of the transaction? Does the promoter offer to backdate documents after the close of the year? Are you instructed to backdate checks covering your investment? Is your debt a real debt or are you assured by the promoter that you will never have to pay it? Does this transaction involve laundering United States source income through foreign corporations incorporated in a tax haven and owned by United States shareholders? Rules To Curb Abusive Tax Shelters Congress has enacted a series of income tax laws designed to halt the growth of abusive tax shelters. Amend 2008 tax return These provisions include the following. Amend 2008 tax return Disclosure of reportable transactions. Amend 2008 tax return   You must disclose information for each reportable transaction in which you participate. Amend 2008 tax return See Reportable Transaction Disclosure Statement , later. Amend 2008 tax return   Material advisors with respect to any reportable transaction must disclose information about the transaction on Form 8918, Material Advisor Disclosure Statement. Amend 2008 tax return To determine whether you are a material advisor to a transaction, see the Instructions for Form 8918. Amend 2008 tax return   Material advisors will receive a reportable transaction number for the disclosed reportable transaction. Amend 2008 tax return They must provide this number to all persons to whom they acted as a material advisor. Amend 2008 tax return They must provide the number at the time the transaction is entered into. Amend 2008 tax return If they do not have the number at that time, they must provide it within 60 days from the date the number is mailed to them. Amend 2008 tax return For information on penalties for failure to disclose and failure to maintain lists, see Internal Revenue Code sections 6707, 6707A, and 6708. Amend 2008 tax return Requirement to maintain list. Amend 2008 tax return   Material advisors must maintain a list of persons to whom they provide material aid, assistance, or advice on any reportable transaction. Amend 2008 tax return The list must be available for inspection by the IRS, and the information required to be included on the list generally must be kept for 7 years. Amend 2008 tax return See Regulations section 301. Amend 2008 tax return 6112-1 for more information (including what information is required to be included on the list). Amend 2008 tax return Confidentiality privilege. Amend 2008 tax return   The confidentiality privilege between you and a federally authorized tax practitioner does not apply to written communications made after October 21, 2004, regarding the promotion of your direct or indirect participation in any tax shelter. Amend 2008 tax return Appraisal requirement for donated property. Amend 2008 tax return   If you claim a deduction of more than $5,000 for an item or group of similar items of donated property, you generally must get a qualified appraisal from a qualified appraiser and complete and attach section B of Form 8283 to your return. Amend 2008 tax return If you claim a deduction of more than $500,000 for the donated property, you generally must attach the qualified appraisal to your return. Amend 2008 tax return If you file electronically, see Form 8453, U. Amend 2008 tax return S. Amend 2008 tax return Individual Income Tax Transmittal for an IRS e-file Return, and its instructions. Amend 2008 tax return For more information about appraisals, including exceptions, see Publication 561. Amend 2008 tax return Passive activity loss and credit limits. Amend 2008 tax return   The passive activity loss and credit rules limit the amount of losses and credits that can be claimed from passive activities and limit the amount that can offset nonpassive income, such as certain portfolio income from investments. Amend 2008 tax return For more detailed information about determining and reporting income, losses, and credits from passive activities, see Publication 925. Amend 2008 tax return Interest on penalties. Amend 2008 tax return   If you are assessed an accuracy-related or civil fraud penalty (as discussed under Penalties , later), interest will be imposed on the amount of the penalty from the due date of the return (including any extensions) to the date you pay the penalty. Amend 2008 tax return Accounting method restriction. Amend 2008 tax return   Tax shelters generally cannot use the cash method of accounting. Amend 2008 tax return Uniform capitalization rules. Amend 2008 tax return   The uniform capitalization rules generally apply to producing property or acquiring it for resale. Amend 2008 tax return Under those rules, the direct cost and part of the indirect cost of the property must be capitalized or included in inventory. Amend 2008 tax return For more information, see Publication 538. Amend 2008 tax return Denial of deduction for interest on an underpayment due to a reportable transaction. Amend 2008 tax return   You cannot deduct any interest you paid or accrued on any part of an underpayment of tax due to an understatement arising from a reportable transaction (discussed later) if the relevant facts affecting the tax treatment of the item are not adequately disclosed. Amend 2008 tax return This rule applies to reportable transactions entered into in tax years beginning after October 22, 2004. Amend 2008 tax return Authority for Disallowance of Tax Benefits The IRS has published guidance concluding that the claimed tax benefits of various abusive tax shelters should be disallowed. Amend 2008 tax return The guidance is the conclusion of the IRS on how the law is applied to a particular set of facts. Amend 2008 tax return Guidance is published in the Internal Revenue Bulletin for taxpayers' information and also for use by IRS officials. Amend 2008 tax return So, if your return is examined and an abusive tax shelter is identified and challenged, published guidance dealing with that type of shelter, which disallows certain claimed tax shelter benefits, could serve as the basis for the examining official's challenge of the tax benefits you claimed. Amend 2008 tax return In such a case, the examiner will not compromise even if you or your representative believes you have authority for the positions taken on your tax return. Amend 2008 tax return The courts have generally been unsympathetic to taxpayers involved in abusive tax shelter schemes and have ruled in favor of the IRS in the majority of the cases in which these shelters have been challenged. Amend 2008 tax return Investor Reporting You may be required to file a reportable transaction disclosure statement. Amend 2008 tax return Reportable Transaction Disclosure Statement Use Form 8886 to disclose information for each reportable transaction (discussed later) in which you participated. Amend 2008 tax return Generally, you must attach Form 8886 to your return for each tax year in which you participated in the transaction. Amend 2008 tax return Under certain circumstances, a transaction must be disclosed within 90 days of the transaction being identified as a listed transaction or a transaction of interest (discussed later). Amend 2008 tax return In addition, for the first year Form 8886 is attached to your return, you must send a copy of the form to: Internal Revenue Service OTSA Mail Stop 4915 1973 North Rulon White Blvd. Amend 2008 tax return  Ogden, UT 84404 If you file your return electronically, the copy sent to OTSA must show exactly the same information, word for word, provided with the electronically filed return and it must be provided on the official IRS Form 8886 or an exact copy of the form. Amend 2008 tax return If you use a computer-generated or substitute Form 8886, it must be an exact copy of the official IRS form. Amend 2008 tax return If you fail to file Form 8886 as required or fail to include any required information on the form, you may have to pay a penalty. Amend 2008 tax return See Penalty for failure to disclose a reportable transaction , later under Penalties. Amend 2008 tax return The following discussion briefly describes reportable transactions. Amend 2008 tax return For more details, see the Instructions for Form 8886. Amend 2008 tax return Reportable transaction. Amend 2008 tax return   A reportable transaction is any of the following. Amend 2008 tax return A listed transaction. Amend 2008 tax return A confidential transaction. Amend 2008 tax return A transaction with contractual protection. Amend 2008 tax return A loss transaction. Amend 2008 tax return A transaction of interest entered into after November 1, 2006. Amend 2008 tax return Note. Amend 2008 tax return Transactions with a brief asset holding period were removed from the definition of reportable transaction for transactions entered into after August 2, 2007. Amend 2008 tax return Listed transaction. Amend 2008 tax return   A listed transaction is the same as, or substantially similar to, one of the types of transactions the IRS has determined to be a tax-avoidance transaction. Amend 2008 tax return These transactions have been identified in notices, regulations, and other published guidance issued by the IRS. Amend 2008 tax return For a list of existing guidance, see Notice 2009-59 in Internal Revenue Bulletin 2009-31, available at www. Amend 2008 tax return irs. Amend 2008 tax return gov/irb/2009-31_IRB/ar07. Amend 2008 tax return html. Amend 2008 tax return Confidential transaction. Amend 2008 tax return   A confidential transaction is offered to you under conditions of confidentiality and for which you have paid an advisor a minimum fee. Amend 2008 tax return A transaction is offered under conditions of confidentiality if the advisor who is paid the fee places a limit on your disclosure of the tax treatment or tax structure of the transaction and the limit protects the confidentiality of the advisor's tax strategies. Amend 2008 tax return The transaction is treated as confidential even if the conditions of confidentiality are not legally binding on you. Amend 2008 tax return Transaction with contractual protection. Amend 2008 tax return   Generally, a transaction with contractual protection is one in which you or a related party has the right to a full or partial refund of fees if all or part of the intended tax consequences of the transaction are not sustained, or a transaction for which the fees are contingent on your realizing the tax benefits from the transaction. Amend 2008 tax return For information on exceptions, see Revenue Procedure 2007-20 in Internal Revenue Bulletin 2007-7, available at www. Amend 2008 tax return irs. Amend 2008 tax return gov/irb/2007-07_IRB/ar15. Amend 2008 tax return html. Amend 2008 tax return Loss transaction. Amend 2008 tax return   For individuals, a loss transaction is one that results in a deductible loss if the gross amount of the loss is at least $2 million in a single tax year or $4 million in any combination of tax years. Amend 2008 tax return A loss from a foreign currency transaction under Internal Revenue Code section 988 is a loss transaction if the gross amount of the loss is at least $50,000 in a single tax year, whether or not the loss flows through from an S corporation or partnership. Amend 2008 tax return   Certain losses (such as losses from casualties, thefts, and condemnations) are excepted from this category and do not have to be reported on Form 8886. Amend 2008 tax return For information on other exceptions, see Revenue Procedure 2004-66 in Internal Revenue Bulletin 2004-50, as modified and superseded by Revenue Procedure 2013-11, (or future published guidance) available at www. Amend 2008 tax return irs. Amend 2008 tax return gov/irb/2004-50_IRB/ar11. Amend 2008 tax return html. Amend 2008 tax return Transaction of interest. Amend 2008 tax return   A transaction of interest is a transaction entered into after November 1, 2006, that is the same as, or substantially similar to, one of the types of transactions that the IRS has identified by notice, regulation, or other form of published guidance as a transaction of interest. Amend 2008 tax return The IRS has identified the following transactions of interest. Amend 2008 tax return “Toggling” grantor trusts as described in Notice 2007-73, 2007-36 I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 545, available at www. Amend 2008 tax return irs. Amend 2008 tax return gov/irb/2007-36_IRB/ar20. Amend 2008 tax return html. Amend 2008 tax return Certain transactions involving contributions of a successor member interest in a limited liability company as described in Notice 2007-72, 2007-36 I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 544, available at www. Amend 2008 tax return irs. Amend 2008 tax return gov/irb/2007-36_IRB/ar19. Amend 2008 tax return html. Amend 2008 tax return Certain transactions involving the sale or other disposition of all interests in a charitable remainder trust and claiming little or no taxable gain as described in Notice 2008-99, 2008-47 I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 1194, available at www. Amend 2008 tax return irs. Amend 2008 tax return gov/irb/2008-47_IRB/ar11. Amend 2008 tax return html. Amend 2008 tax return Certain transactions involving a U. Amend 2008 tax return S. Amend 2008 tax return taxpayer owning controlled foreign corporations (CFCs) that hold stock of a lower-tier CFC through a domestic partnership to avoid reporting income as described in Notice 2009-7, 2009-3 I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 312, available at www. Amend 2008 tax return irs. Amend 2008 tax return gov/irb/2009-03_IRB/ar10. Amend 2008 tax return html. Amend 2008 tax return   For updates to this list, go to www. Amend 2008 tax return irs. Amend 2008 tax return gov/Businesses/Corporations/Abusive-Tax-Shelters-and-Transactions. Amend 2008 tax return Penalties Investing in an abusive tax shelter may lead to substantial expenses. Amend 2008 tax return First, the promoter generally charges a substantial fee. Amend 2008 tax return If your return is examined by the IRS and a tax deficiency is determined, you will be faced with payment of more tax, interest on the underpayment, possibly a 20%, 30%, or even 40% accuracy-related penalty, or a 75% civil fraud penalty. Amend 2008 tax return You may also be subject to the penalty for failure to pay tax. Amend 2008 tax return These penalties are explained in the following paragraphs. Amend 2008 tax return Accuracy-related penalties. Amend 2008 tax return   An accuracy-related penalty of 20% can be imposed for underpayments of tax due to: Negligence or disregard of rules or regulations, Substantial understatement of tax, Substantial valuation misstatement (increased to 40% for gross valuation misstatement), Transaction lacking economic substance (increased to 40% for undisclosed transaction lacking economic substance), or Undisclosed foreign financial asset understatement (40% in all cases). Amend 2008 tax return Except for a transaction lacking economic substance, this penalty will not be imposed if you can show you had reasonable cause for any understatement of tax and that you acted in good faith. Amend 2008 tax return Your failure to disclose a reportable transaction is a strong indication that you failed to act in good faith. Amend 2008 tax return   If you are charged an accuracy-related penalty, interest will be imposed on the amount of the penalty from the due date of the return (including extensions) to the date you pay the penalty. Amend 2008 tax return   The 20% penalties do not apply to any underpayment attributable to a reportable transaction understatement subject to an accuracy-related penalty (discussed later). Amend 2008 tax return Negligence or disregard of rules or regulations. Amend 2008 tax return   The penalty for negligence or disregard of rules or regulations is imposed only on the part of the underpayment due to negligence or disregard of rules or regulations. Amend 2008 tax return The penalty will not be charged if you can show you had reasonable cause for understating your tax and that you acted in good faith. Amend 2008 tax return    Negligence includes any failure to make a reasonable attempt to comply with the provisions of the Internal Revenue Code. Amend 2008 tax return It also includes any failure to keep adequate books and records. Amend 2008 tax return A return position that has a reasonable basis is not negligence. Amend 2008 tax return   Disregard includes any careless, reckless, or intentional disregard of rules or regulations. Amend 2008 tax return   The penalty for disregard of rules and regulations can be avoided if all the following are true. Amend 2008 tax return You keep adequate books and records. Amend 2008 tax return You have a reasonable basis for your position on the tax issue. Amend 2008 tax return You make an adequate disclosure of your position. Amend 2008 tax return Use Form 8275 to make your disclosure and attach it to your return. Amend 2008 tax return To disclose a position contrary to a regulation, use Form 8275-R. Amend 2008 tax return Use Form 8886 to disclose a reportable transaction (discussed earlier). Amend 2008 tax return Substantial understatement of tax. Amend 2008 tax return   An understatement is considered to be substantial if it is more than the greater of: 10% of the tax required to be shown on the return, or $5,000. Amend 2008 tax return An “understatement” is the amount of tax required to be shown on your return for a tax year minus the amount of tax shown on the return, reduced by any rebates. Amend 2008 tax return The term “rebate” generally means a decrease in the tax shown on your original return as the result of your filing an amended return or claim for refund. Amend 2008 tax return   For items other than tax shelters, you can file Form 8275 or Form 8275-R to disclose items that could cause a substantial understatement of income tax. Amend 2008 tax return In that way, you can avoid the substantial understatement penalty if you have a reasonable basis for your position on the tax issue. Amend 2008 tax return Disclosure of the tax shelter item on a tax return does not reduce the amount of the understatement. Amend 2008 tax return   Also, the understatement penalty will not be imposed if you can show there was reasonable cause for the underpayment caused by the understatement and that you acted in good faith. Amend 2008 tax return An important factor in establishing reasonable cause and good faith will be the extent of your effort to determine your proper tax liability under the law. Amend 2008 tax return Substantial valuation misstatement. Amend 2008 tax return   In general, you are liable for a 20% penalty for a substantial valuation misstatement if all the following are true. Amend 2008 tax return The value or adjusted basis of any property claimed on the return is 150% or more of the correct amount. Amend 2008 tax return You underpaid your tax by more than $5,000 because of the misstatement. Amend 2008 tax return You cannot establish that you had reasonable cause for the underpayment and that you acted in good faith. Amend 2008 tax return   You may be assessed a penalty of 40% for a gross valuation misstatement. Amend 2008 tax return If you misstate the value or the adjusted basis of property by 200% or more of the amount determined to be correct, you will be assessed a penalty of 40%, instead of 20%, of the amount you underpaid because of the gross valuation misstatement. Amend 2008 tax return The penalty rate is also 40% if the property's correct value or adjusted basis is zero. Amend 2008 tax return Transaction lacking economic substance. Amend 2008 tax return   The economic substance doctrine only applies to an individual that entered into a transaction in connection with a trade or business or an activity engaged in for the production of income. Amend 2008 tax return For transactions entered into after March 30, 2010, a transaction has economic substance for you as an individual taxpayer only if: The transaction changes your economic position in a meaningful way (apart from federal income tax effects), or You have a substantial purpose (apart from federal income tax effects) for entering into the transaction. Amend 2008 tax return   For purposes of determining whether economic substance exists, a transaction's profit potential will only be taken into account if the present value of the reasonably expected pre-tax profit from the transaction is substantial compared to the present value of the expected net tax benefits that would be allowed if the transaction were respected. Amend 2008 tax return   If any part of your underpayment is due to any disallowance of claimed tax benefits by reason of a transaction lacking economic substance or failing to meet the requirements of any similar rule of law, that part of your underpayment will be subject to the 20% accuracy-related penalty even if you had a reasonable cause and acted in good faith concerning that part. Amend 2008 tax return   Additionally, the penalty increases to 40% if you do not adequately disclose on your return or in a statement attached to your return the relevant facts affecting the tax treatment of a transaction that lacks economic substance. Amend 2008 tax return Relevant facts include any facts affecting the tax treatment of the transaction. Amend 2008 tax return    Any excessive amount of an erroneous claim for an income tax refund or credit (other than a refund or credit related to the earned income credit) that results from a transaction found to be lacking economic substance will not be treated as having a reasonable basis and could be subject to a 20% penalty. Amend 2008 tax return Undisclosed foreign financial asset understatement. Amend 2008 tax return   For tax years beginning after March 18, 2010, you may be liable for a 40% penalty for an understatement of your tax liability due to an undisclosed foreign financial asset. Amend 2008 tax return An undisclosed foreign financial asset is any asset for which an information return, required to be provided under Internal Revenue Code section 6038, 6038B, 6038D, 6046A, or 6048 for any taxable year, is not provided. Amend 2008 tax return The penalty applies to any part of an underpayment related to the following undisclosed foreign financial assets. Amend 2008 tax return Any foreign business you control, reportable on Form 5471, Information Return of U. Amend 2008 tax return S. Amend 2008 tax return Persons With Respect To Certain Foreign Corporations, or Form 8865, Return of U. Amend 2008 tax return S. Amend 2008 tax return Persons With Respect to Certain Foreign Partnerships. Amend 2008 tax return Certain transfers of property to a foreign corporation or partnership, reportable on Form 926, Return by a U. Amend 2008 tax return S. Amend 2008 tax return Transferor of Property to a Foreign Corporation, or certain distributions to a foreign person, reportable on Form 8865. Amend 2008 tax return Your ownership interest in certain foreign financial assets, temporarily reportable on Form 8275 or 8275-R. Amend 2008 tax return    Instead of, or in addition to, Form 8275 or 8275-R, you may have to file Form 8938, Statement of Specified Foreign Financial Assets, with your tax return. Amend 2008 tax return See the Instructions for Form 8938 for details. Amend 2008 tax return    Your acquisition, disposition, or substantial change in ownership interest in a foreign partnership, reportable on Form 8865. Amend 2008 tax return Creation or transfer of money or property to certain foreign trusts, reportable on Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. Amend 2008 tax return Penalty for incorrect appraisals. Amend 2008 tax return   The person who prepares an appraisal of the value of property may have to pay a penalty if: He or she knows, or reasonably should have known, that the appraisal would be used in connection with a return or claim for refund; and The claimed value of the property on a return or claim for refund based on that appraisal results in a substantial valuation misstatement or a gross valuation misstatement as discussed earlier. Amend 2008 tax return For details on the penalty amount and exceptions, see Publication 561. Amend 2008 tax return Penalty for failure to disclose a reportable transaction. Amend 2008 tax return   If you fail to include any required information regarding a reportable transaction (discussed earlier) on a return or statement, you may have to pay a penalty of 75% of the decrease in tax shown on your return as a result of such transaction (or that would have resulted if the transaction were respected for federal tax purposes). Amend 2008 tax return For an individual, the minimum penalty is $5,000 and the maximum is $10,000 (or $100,000 for a listed transaction). Amend 2008 tax return This penalty is in addition to any other penalty that may be imposed. Amend 2008 tax return   The IRS may rescind or abate the penalty for failing to disclose a reportable transaction under certain limited circumstances but cannot rescind the penalty for failing to disclose a listed transaction. Amend 2008 tax return For information on rescission, see Revenue Procedure 2007-21 in Internal Revenue Bulletin 2007-9 available at www. Amend 2008 tax return irs. Amend 2008 tax return gov/irb/2007-09_IRB/ar12. Amend 2008 tax return html. Amend 2008 tax return Accuracy-related penalty for a reportable transaction understatement. Amend 2008 tax return   If you have a reportable transaction understatement, you may have to pay a penalty equal to 20% of the amount of that understatement. Amend 2008 tax return This applies to any item due to a listed transaction or other reportable transaction with a significant purpose of avoiding or evading federal income tax. Amend 2008 tax return The penalty is 30% rather than 20% for the part of any reportable transaction understatement if the transaction was not properly disclosed. Amend 2008 tax return You may not have to pay the 20% penalty if you meet the strengthened reasonable cause and good faith exception. Amend 2008 tax return The reasonable cause and good faith exception does not apply to any part of a reportable transaction understatement attributable to one or more transactions that lack economic substance. Amend 2008 tax return   This penalty does not apply to the part of an understatement on which the fraud penalty, gross valuation misstatement penalty, or penalty for nondisclosure of noneconomic substance transactions is imposed. Amend 2008 tax return Civil fraud penalty. Amend 2008 tax return   If any underpayment of tax on your return is due to fraud, a penalty of 75% of the underpayment will be added to your tax. Amend 2008 tax return Joint return. Amend 2008 tax return   The fraud penalty on a joint return applies to a spouse only if some part of the underpayment is due to the fraud of that spouse. Amend 2008 tax return Failure to pay tax. Amend 2008 tax return   If a deficiency is assessed and is not paid within 10 days of the demand for payment, an investor can be penalized with up to a 25% addition to tax if the failure to pay continues. Amend 2008 tax return Whether To Invest In light of the adverse tax consequences and the substantial amount of penalties and interest that will result if the claimed tax benefits are disallowed, you should consider tax shelter investments carefully and seek competent legal and financial advice. Amend 2008 tax return Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding Your CP05A Notice

We are examining your return and we need documentation to verify the following:

  • Your income
  • The withholding you reported on your income and social security benefits
  • The tax credits you claimed
  • The household help you claimed
  • Your business income.

We are holding your refund pending the results of the examination.


What you need to do

  • Read the notice carefully. It explains the information you must send to us.
  • Provide copies of the documentation we request to verify the items that we are auditing.
  • Tear off the voucher on the last page of this notice and attach it to the documents you are submitting.
  • Send the requested information within 30 days from the date of this notice to the address shown on the notice.

You may want to

  • Review this notice with your tax preparer.
  • If you are experiencing economic harm, believe an IRS system or procedure isn’t working as it should, or are seeking help in resolving tax problems that have not been resolved through normal channels, you may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach them at 1-877-777-4778 or TTY/TTD 1-800-829-4059.

Answers to Common Questions

Why is my return being reviewed?
While most returns are accepted as filed, some are selected for examination. The IRS examines some federal tax returns to determine if income, expenses, and credits are being reported accurately. The IRS selects returns for examination using various methods which include random sampling, computerized screening, and comparison of information received by the IRS such as Forms W-2 and 1099. Having your return selected for examination does not suggest that you made an error or were dishonest.

What if I did not file a tax return claiming the items you are questioning and someone else is using my name and social security number?
Send us a completed and signed Form 14039, Identity Theft Affidavit. You can download this form online at www.irs.gov. You can also refer to the IRS Identity Theft resource page for more information.


Tips for next year

  • Review all of your income and withholding documents for completeness and review your return to make sure you are eligible to claim all income, credits and business income that you reported
Page Last Reviewed or Updated: 19-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Amend 2008 Tax Return

Amend 2008 tax return Publication 510 - Introductory Material Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Excise Taxes Not Covered What's New Medical device excise tax. Amend 2008 tax return  The Affordable Care Act (the “Act”) (Public Law 111-148, amended by Public Law 111-152) imposes a 2. Amend 2008 tax return 3% (. Amend 2008 tax return 023) excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device. Amend 2008 tax return The tax applies to sales of taxable medical devices after December 31, 2012. Amend 2008 tax return See Taxable Medical Devices in chapter 5, later. Amend 2008 tax return Tax on seasonal flu vaccines. Amend 2008 tax return  Sales of all vaccines against seasonal influenza are now subject to the section 4131 excise tax at the existing rate of $. Amend 2008 tax return 75 per dose of taxable vaccine. Amend 2008 tax return Previously, only trivalent influenza vaccines were subject to this tax. Amend 2008 tax return See Vaccines in chapter 5, later. Amend 2008 tax return Patient-centered outcomes research fee. Amend 2008 tax return  The Act imposes a fee on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4576) to help fund the Patient-Centered Outcomes Research Institute. Amend 2008 tax return The fee, required to be reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st, is based on the average number of lives covered under the policy or plan. Amend 2008 tax return The fee applies to policy or plan years ending on or after October 1, 2012. Amend 2008 tax return See chapter 11, later. Amend 2008 tax return Extension of fuel tax credits. Amend 2008 tax return  The following section 6426 credits, previously expired on December 31, 2011, are retroactively extended. Amend 2008 tax return Biodiesel or renewable diesel mixture credit. Amend 2008 tax return Alternative fuel credit. Amend 2008 tax return Alternative fuel mixture credit. Amend 2008 tax return See Notice 2013–26 (fuel tax credits) on page 984 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2013–18 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb13-18. Amend 2008 tax return pdf; also see chapter 2, later. Amend 2008 tax return Alternative fuel mixture credit can be claimed on Schedule C (Form 720) only. Amend 2008 tax return  For alternative fuel mixtures produced after December 31, 2011, the section 6426 alternative fuel mixture credit can be claimed on Schedule C (Form 720) only, not on Form 4136, Credit for Federal Tax Paid on Fuels, or Schedule 3 (Form 8849), Claim for Refund of Excise Taxes, and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel, and kerosene. Amend 2008 tax return See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit in chapter 2, later. Amend 2008 tax return Expiration of alcohol fuel mixture credit. Amend 2008 tax return  The section 6426 alcohol fuel mixture credit expired after December 31, 2011. Amend 2008 tax return Expiration of alcohol fuels credits. Amend 2008 tax return  The section 40 alcohol, alcohol mixture, and small ethanol producer credits expired after December 31, 2011. Amend 2008 tax return Second generation biofuel producer credit and excise tax. Amend 2008 tax return  The section 40 cellulosic biofuel producer credit was retroactively extended to include fuel sold or used through January 2, 2013. Amend 2008 tax return After January 2, 2013, cellulosic biofuel is renamed second generation biofuel, which adds algae-based fuel. Amend 2008 tax return The second generation biofuel producer credit is for fuel sold or used after January 2, 2013, and before January 1, 2014. Amend 2008 tax return You are liable for an excise tax on each gallon of cellulosic or second generation biofuel at the rate you used to figure the credit if you do not use the fuel for the purposes described under Qualified Cellulosic Biofuel Production or Qualified Second Generation Biofuel Production, later. Amend 2008 tax return Report the tax on Form 720. Amend 2008 tax return See Cellulosic or Second Generation Biofuel Not Used as Fuel, later; also see Form 6478, Biofuel Producer Credit, for more information. Amend 2008 tax return Extension of section 40A biodiesel fuels credit. Amend 2008 tax return  The biodiesel fuels credit, previously expired on December 31, 2011, is retroactively extended. Amend 2008 tax return Future developments. Amend 2008 tax return  The IRS has created a page on IRS. Amend 2008 tax return gov that includes information about Publication 510 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub510. Amend 2008 tax return Information about any future developments will be posted on that page. Amend 2008 tax return Reminders Publication 510 updates. Amend 2008 tax return  Publication 510 is not updated annually. Amend 2008 tax return Instead, it will be updated only when there are major changes in the tax law. Amend 2008 tax return Use of international air travel facilities. Amend 2008 tax return  Generally, the tax on the use of international air travel facilities increases annually. Amend 2008 tax return See the Instructions for Form 720 for the tax rate. Amend 2008 tax return For more information, see Air Transportation Taxes in chapter 4. Amend 2008 tax return Aviation fuels for use in foreign trade. Amend 2008 tax return  Aviation gasoline and kerosene for use in aviation are exempt from the leaking underground storage tank (LUST) tax. Amend 2008 tax return Arrow shafts, tax rate. Amend 2008 tax return  Generally, the tax on arrow shafts increases annually. Amend 2008 tax return See Form 720 for the tax rate. Amend 2008 tax return Disregarded entities and qualified subchapter S subsidiaries. Amend 2008 tax return  Qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax and reporting purposes. Amend 2008 tax return QSubs and eligible single-owner disregarded entities must pay and report excise taxes (other than IRS Nos. Amend 2008 tax return 31, 51, and 117), register for most excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). Amend 2008 tax return These actions cannot take place under the owner's taxpayer identification number (TIN). Amend 2008 tax return Some QSubs and disregarded entities may already have an EIN. Amend 2008 tax return However, if you are unsure, please call the IRS Business and Specialty Tax line at 1-800-829-4933. Amend 2008 tax return Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). Amend 2008 tax return For more information on these regulations, see Treasury Decision (T. Amend 2008 tax return D. Amend 2008 tax return ) 9356, T. Amend 2008 tax return D. Amend 2008 tax return 9462, and T. Amend 2008 tax return D. Amend 2008 tax return 9596. Amend 2008 tax return You can find T. Amend 2008 tax return D. Amend 2008 tax return 9356 on page 675 of Internal Revenue Bulletin (I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return ) 2007-39 at  www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb07-39. Amend 2008 tax return pdf;  T. Amend 2008 tax return D. Amend 2008 tax return 9462 on page 504 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2009-42 at  www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb09-42. Amend 2008 tax return pdf;  and T. Amend 2008 tax return D. Amend 2008 tax return 9596 on page 84 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2012-30 at  www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb12-30. Amend 2008 tax return pdf. Amend 2008 tax return Registration for certain activities. Amend 2008 tax return  You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the bulk transfer/terminal system. Amend 2008 tax return See the instructions for Form 637 for the list of activities for which you must register. Amend 2008 tax return Also see Registration Requirements under Fuel Taxes in chapter 1 for information on registration for activities related to fuel. Amend 2008 tax return Each business unit that has, or is required to have, a separate employer identification number must be registered. Amend 2008 tax return To apply for registration, complete Form 637 and provide the information requested in its instructions. Amend 2008 tax return If your application is approved, you will receive a Letter of Registration showing the activities for which you are registered, the effective date of the registration, and your registration number. Amend 2008 tax return A copy of Form 637 is not a Letter of Registration. Amend 2008 tax return Photographs of missing children. Amend 2008 tax return  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Amend 2008 tax return Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Amend 2008 tax return You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Amend 2008 tax return Introduction This publication covers the excise taxes for which you may be liable and which are reported on Form 720 and other forms. Amend 2008 tax return It also covers fuel tax credits and refunds. Amend 2008 tax return For information on fuel credits against income tax (the section 40 credits for the production of cellulosic biofuel and second generation biofuel, and the section 40A credit for biodiesel and renewable diesel used as fuel) see the instructions for Form 6478 and Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Amend 2008 tax return Comments and suggestions. Amend 2008 tax return   We welcome your comments about this publication and your suggestions for future editions. Amend 2008 tax return   You can write to us at the following address: Internal Revenue Service Individual and Specialty Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Amend 2008 tax return NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Amend 2008 tax return Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Amend 2008 tax return   You can email us at taxforms@irs. Amend 2008 tax return gov. Amend 2008 tax return Please put “Publications Comment” on the subject line. Amend 2008 tax return You can also send us comments from www. Amend 2008 tax return irs. Amend 2008 tax return gov/Forms-&-Pubs/More-Information/ and select “Comment on Tax Forms and Publications”. Amend 2008 tax return   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Amend 2008 tax return Useful Items - You may want to see: Publication 509 Tax Calendars Form (and Instructions) 11-C Occupational Tax and Registration Return for Wagering 637 Application for Registration (For Certain Excise Tax Activities) 720 Quarterly Federal Excise Tax Return 720X Amended Quarterly Federal Excise Tax Return 730 Monthly Tax Return for Wagers 1363 Export Exemption Certificate 2290 Heavy Highway Vehicle Use Tax Return 2290(SP) Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras 4136 Credit for Federal Tax Paid on Fuels 6197 Gas Guzzler Tax 6478 Biofuel Producer Credit 6627 Environmental Taxes 8849 Claim for Refund of Excise Taxes, and Schedules 1–3, 5, 6, and 8 8864 Biodiesel and Renewable Diesel Fuels Credit Information Returns    Form 720-TO, Terminal Operator Report Form 720-CS, Carrier Summary Report   See How To Get Tax Help in chapter 17 for information about ordering forms and publications. Amend 2008 tax return Guidance    You can find Notice 2005-4 (fuel tax guidance) on page 289 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2005-2 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb05-02. Amend 2008 tax return pdf. Amend 2008 tax return Notice 2005-62 (biodiesel and aviation-grade kerosene) on page 443 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2005-35 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb05-35. Amend 2008 tax return pdf. Amend 2008 tax return Notice 2005-80 (LUST, kerosene, claims by credit card issuers, and mechanical dye injection) on page 953 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2005-46 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb05-46. Amend 2008 tax return pdf. Amend 2008 tax return Notice 2006-92 (alternative fuels and alternative fuel mixtures) on page 774 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2006-43 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb06-43. Amend 2008 tax return pdf. Amend 2008 tax return Notice 2008-110 (biodiesel and cellulosic biofuel) on page 1298 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2008-51 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb08-51. Amend 2008 tax return pdf. Amend 2008 tax return Notice 2010-68 (Alaska dyed diesel exemption) on page 576 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2010-44 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb10-44. Amend 2008 tax return pdf. Amend 2008 tax return Notice 2012-27 (fractional aircraft ownership programs fuel surtax) on page 849 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2012-17 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb12-17. Amend 2008 tax return pdf. Amend 2008 tax return Notice 2013-26 (fuel tax credits) on page 984 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2013-18 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb13-18. Amend 2008 tax return pdf. Amend 2008 tax return T. Amend 2008 tax return D. Amend 2008 tax return 9604 and Notice 2012–77 (medical device tax) on pages 730 and 781, respectively, of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2012-52 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb12-52. Amend 2008 tax return pdf. Amend 2008 tax return T. Amend 2008 tax return D. Amend 2008 tax return 9602 (patient-centered outcomes research fee) on page 746 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2012-52 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb12-52. Amend 2008 tax return pdf. Amend 2008 tax return Revenue Procedure 2012-41 (inflation adjustments) on page 539 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2012-45 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb12-45. Amend 2008 tax return pdf. Amend 2008 tax return T. Amend 2008 tax return D. Amend 2008 tax return 9621 (indoor tanning services tax) on page 49 of I. Amend 2008 tax return R. Amend 2008 tax return B. Amend 2008 tax return 2013-28 at www. Amend 2008 tax return irs. Amend 2008 tax return gov/pub/irs-irbs/irb13-28. Amend 2008 tax return pdf. Amend 2008 tax return Excise Taxes Not Covered In addition to the taxes discussed in this publication, you may have to report certain other excise taxes. Amend 2008 tax return For tax forms relating to alcohol, firearms, and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www. Amend 2008 tax return ttb. Amend 2008 tax return gov. Amend 2008 tax return Heavy highway vehicle use tax. Amend 2008 tax return   You report the federal excise tax on the use of certain trucks, truck tractors, and buses used on public highways on Form 2290, Heavy Highway Vehicle Use Tax Return. Amend 2008 tax return The tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Amend 2008 tax return Vans, pickup trucks, panel trucks, and similar trucks generally are not subject to this tax. Amend 2008 tax return Note. Amend 2008 tax return A Spanish version (Formulario 2290(SP)) is also available. Amend 2008 tax return See How To Get Tax Help in chapter 17. Amend 2008 tax return Registration of vehicles. Amend 2008 tax return   Generally, you must prove that you paid your heavy highway vehicle use tax to register your taxable vehicle with your state motor vehicle department or to enter the United States in a Canadian or Mexican registered taxable vehicle. Amend 2008 tax return Generally, a copy of Schedule 1 (Form 2290) is stamped by the IRS and returned to you as proof of payment. Amend 2008 tax return    If you have questions on Form 2290, see its separate instructions, or you can call the Form 2290 call site at 1-866-699-4096 (toll free) from the United States, and 1-859-669-5733 (not toll free) from Canada and Mexico. Amend 2008 tax return The hours of service are 8:00 a. Amend 2008 tax return m. Amend 2008 tax return to 6:00 p. Amend 2008 tax return m. Amend 2008 tax return Eastern time. Amend 2008 tax return Wagering tax and occupational tax. Amend 2008 tax return   The information on wagering tax can be found in the instructions for Form 730, Tax on Wagering, and Form 11-C, Occupational Tax and Registration Return for Wagering. Amend 2008 tax return Prev  Up  Next   Home   More Online Publications