Publication 550
taxmap/pubs/p550-030.htm#en_us_publink100010765You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. By selecting the method that is best for you, you will have quick and easy access to tax
help.
taxmap/pubs/p550-030.htm#en_us_publink1000265057Free help in preparing your return is available nationwide from IRS-certified volunteers. The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. To find the nearest VITA or TCE site, visit IRS.gov or call 1-800-906-9887 or
1-800-829-1040.
As part of the TCE program, AARP offers the Tax-Aide counseling program. To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website
at
www.aarp.org/money/taxaide.
For more information on these programs, go to IRS.gov and enter keyword "VITA" in the upper right-hand
corner.
 | Internet.
You can access the IRS website at IRS.gov 24 hours a day, 7 days a week to:
- E-file your return. Find out about commercial tax preparation and
e-file services available free to eligible taxpayers.
- Check the status of your 2011 refund. Go to IRS.gov and click on
Where's My Refund. Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your
refund.
- Download forms, including talking tax forms, instructions, and
publications.
- Order IRS products online.
- Research your tax questions online.
- Search publications online by topic or keyword.
- Use the online Internal Revenue Code, regulations, or other official
guidance.
- View Internal Revenue Bulletins (IRBs) published in the last few
years.
- Figure your withholding allowances using the withholding calculator online at
www.irs.gov/individuals.
- Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at
www.irs.gov/individuals.
- Sign up to receive local and national tax news by email.
- Get information on starting and operating a small business.
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 | Phone.
Many services are available by phone.
- Ordering forms, instructions, and publications.
Call 1-800-TAX -FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. You should receive your order within 10
days.
- Asking tax questions.
Call the IRS with your tax questions at 1-800-829-1040.
- Solving problems.
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. To find the number, go to
www.irs.gov/localcontacts or look in the phone book under
United States Government, Internal Revenue Service.
- TTY/TDD equipment.
If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and
publications.
- TeleTax topics.
Call 1-800-829-4477 to listen to pre-recorded messages covering various tax
topics.
- Refund information.
To check the status of your 2011 refund, call 1-800-829-1954 or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 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.
- Other refund information.
To check the status of a prior-year refund or amended return refund, call
1-800-829-1040.
____ Evaluating the quality of our telephone services.
To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. One method is for a second IRS representative to listen in on or record random telephone calls. Another is to ask some callers to complete a short survey at the end of the
call. |
 | Walk-in.
Many products and services are available on a walk-in basis.
- Products.
You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research
purposes.
- Services.
You can walk in to your local Taxpayer Assistance Center every business day for
personal, face-to-face tax help. An employee can explain IRS letters, request
adjustments to your tax account, or help you set up a payment plan. If you need
to resolve a tax problem, have questions about how the tax law applies to your
individual tax return, or you are more comfortable talking with someone in
person, visit your local Taxpayer Assistance Center where you can spread out
your records and talk with an IRS representative face-to-face. No appointment is
necessary—just walk in. If you prefer, you can call your local Center and
leave a message requesting an appointment to resolve a tax account issue. A
representative will call you back within 2 business days to schedule an
in-person appointment at your convenience. If you have an ongoing, complex tax
account problem or a special need, such as a disability, an appointment can be
requested. All other issues will be handled without an appointment. To find the
number of your local office, go to
www.irs.gov/localcontacts or look in the phone book under
United States Government, Internal Revenue Service.
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 | Mail.
You can send your order for forms, instructions, and publications to the address below. You should receive a response within 10 days after your request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613
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taxmap/pubs/p550-030.htm#en_us_publink1000265063The Taxpayer Advocate Service (TAS) is your voice at the IRS. Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Remember, the worst thing you can do is nothing at
all.
TAS can help if you can’t resolve your problem with the IRS and:
- Your problem is causing financial difficulties for you, your family, or your
business.
- You face (or your business is facing) an immediate threat of adverse
action.
- You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date
promised.
If you qualify for our help, we’ll do everything we can to get your problem resolved. You will be assigned to one advocate who will be with you at every turn. We have offices in every state, the District of Columbia, and Puerto Rico. Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. And our services are always
free.
As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Our tax toolkit at
www.TaxpayerAdvocate.irs.gov can help you understand these rights.
If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at
www.irs.gov/advocate. You can also call our toll-free number at 1-877-777-4778 or TTY/TDD
1-800-829-4059.
TAS also handles large-scale or systemic problems that affect many taxpayers. If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at
www.irs.gov/advocate.
Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. For more information and to find a clinic near you, see the LITC page on
www.irs.gov/advocate or IRS Publication
4134,
Low Income Taxpayer Clinic List. This publication is also available by calling 1-800-829-3676 or at your local IRS
office.
Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Learn about free tax information from the IRS, including publications, services, and education and assistance programs. The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. The majority of the information and services listed in this publication are available to you free of charge. If there is a fee associated with a resource or service, it is listed in the
publication.
Accessible versions of IRS published products are available on request in a variety of alternative formats for people with
disabilities.
 | DVD for tax products.
You can order Publication 1796, IRS Tax Products DVD, and obtain:
- Current-year forms, instructions, and publications.
- Prior-year forms, instructions, and publications.
- Tax Map: an electronic research tool and finding aid.
- Tax law frequently asked questions.
- Tax Topics from the IRS telephone response system.
- Internal Revenue Code—Title 26 of the U.S. Code.
- Links to other Internet based Tax Research Materials.
- Fill-in, print, and save features for most tax forms.
- Internal Revenue Bulletins.
- Toll-free and email technical support.
- Two releases during the year.
– The first release will ship the beginning of January
2012.
– The final release will ship the beginning of March
2012.
Purchase the DVD from National Technical Information Service (NTIS) at
www.irs.gov/cdorders
for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for
$30 (plus a $6 handling fee). |
An accounting method under which you report your income when you earn it, whether or not you have received it. You generally deduct your expenses when you incur a liability for them, rather than when you pay them.
Rules that limit the amount of loss you may deduct to the amount you risk losing in the activity.
Basis is the amount of your investment in property for tax purposes. The basis of property you buy is usually the cost. Basis is used to figure gain or loss on the sale or disposition of investment property.
A demand loan (defined later) on which interest is payable at a rate below the applicable federal rate, or a term loan where the amount loaned is more than the present value of all payments due under the loan.
An option that entitles the purchaser to buy, at any time before a specified future date, property such as a stated number of shares of stock at a specified price.
An accounting method under which you report your income in the year in which you actually or constructively receive it. You generally deduct your expenses in the year you pay them.
A person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade designated as a contract market by the Commodities Futures Trading Commission.
A contract made on a commodity exchange, calling for the sale or purchase of a fixed amount of a commodity at a future date for a fixed price.
For purposes of Form 1099-B, a covered security is any of the following:
- A specified security (defined below) acquired for cash in an account after 2010, except stock for which the average basis method is
available.
- Stock for which the average basis method is available and that is acquired for cash in an account after
2011.
- A specified security transferred to an account if the broker or other custodian of the account receives a transfer statement reporting the security as a covered
security.
- A security acquired due to a stock dividend, stock split, reorganization, redemption, stock conversion, recapitalization, corporate division, or other similar action, if the basis of the acquired security is determined from the basis of a covered
security.
A "specified security" is any share of stock (or any interest treated as stock, such as an American Depositary Receipt) in an entity organized as, or treated for federal tax purposes as, a corporation (foreign or domestic). For this purpose, a security classified as stock by the issuer is treated as stock. If the issuer has not classified the security, the security is not treated as stock unless the broker knows that the security is reasonably classified as stock under general federal tax
principles.
See the Instructions for Form 1099-B for more details.
Conversion transaction:
(p83)Any transaction that you entered into after April 30, 1993, that meets both of these tests.
- Substantially all of your expected return from the transaction is due to the time value of your net investment.
- The transaction is one of the following.
- A straddle, including any set of offsetting positions on stock.
- Any transaction in which you acquire property (whether or not actively traded) at substantially the same time that you contract to sell the same property or substantially identical property at a price set in the contract.
- Any other transaction that is marketed or sold as producing capital gains from a transaction described in (1).
A loan payable in full at any time upon demand by the lender.
A distribution of money or other property made by a corporation to its shareholders out of its earnings and profits.
Any option:
- To buy or sell stock, or
- That is valued directly or indirectly by reference to any stock or narrow-based security
index.
The price at which property would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts.
The amount of interest that would be payable for any period if interest accrued at the applicable federal rate and was payable annually on December 31, minus any interest payable on the loan for that period.
A contract to deliver a substantially fixed amount of property (including cash) for a substantially fixed price.
An exchange-traded contract to buy or sell a specified commodity or financial instrument at a specified price at a specified future date. See also
Commodity future.
Any below-market loan where the forgone interest is in the nature of a gift.
Compensation for the use or forbearance of money.
Investment interest:
(p83)The interest you paid or accrued on money you borrowed that is allocable to property held for investment.
A partner whose participation in partnership activities is restricted, and whose personal liability for partnership debts is limited to the amount of money or other property that he or she contributed or may have to
contribute.
Any option that is traded on, or subject to the rules of, a qualified board or exchange.
Marked to market rule:
(p83)The treatment of each section 1256 contract (defined later) held by a taxpayer at the close of the year as if it were sold for its fair market value on the last business day of the year.
The stated redemption price of a bond at maturity minus your basis in the bond immediately after you acquire it. Market discount arises when the value of a debt obligation decreases after its issue date.
Market discount bond:
(p83)Any bond having market discount except:
- Short-term obligations with fixed maturity dates of up to 1 year from the date of
issue,
- Tax-exempt obligations that you bought before May 1, 1993,
- U.S. savings bonds, and
- Certain installment obligations.
A mutual fund is a regulated investment company generally created by "pooling" funds of investors to allow them to take advantage of diversity of investments and professional
management.
A person who receives, in his or her name, income that actually belongs to someone else.
Noncovered security:
(p83)A noncovered security, for purposes of Form 1099-B, is any security that is not a covered security. The following securities are not covered securities:
- Stock acquired in 2011 that is transferred in 2011 to a dividend reinvestment plan that meets the requirements of Regulations section 1.1012-1(e)(6). However, a covered security acquired in 2011 and transferred to a dividend reinvestment plan after 2011 remains a covered security. For purposes of this rule, stock is considered transferred to a dividend reinvestment plan if it is held in a plan that is not a dividend reinvestment plan and the plan amends its plan documents to become a dividend reinvestment plan. The stock is considered transferred as of the effective date of the plan
amendments.
- A security acquired due to a stock dividend, stock split, reorganization, redemption, stock conversion, recapitalization, corporate division, or other similar action, if the basis of the acquired security is determined from the basis of a noncovered
security.
- A security that, when acquired, did not have to be reported on Form 1099-B because it was acquired from an exempt recipient or an exempt foreign person as defined in Regulations section
1.6045-1(g)(1).
- A security for which reporting is required by Regulations section 1.6049-5(d)(3)(ii) (certain securities owned by a foreign intermediary or flow-through
entity).
See the Instructions for Form 1099-B for more details.
Any listed option that is not an equity option, such as debt options, commodity futures options, currency options, and broad-based stock index options.
Any person registered with an appropriate national securities exchange as a market maker or specialist in listed options.
Original issue discount (OID):
(p84)The amount by which the stated redemption price at maturity of a debt instrument is more than its issue price.
An activity involving the conduct of a trade or business in which you do not materially participate and any rental activity. However, the rental of real estate is not a passive activity if both of the following are true.
- More than one-half of the personal services you perform during the year in all trades or businesses are performed in real property trades or businesses in which you materially
participate.
- You perform more than 750 hours of services during the year in real property trades or businesses in which you materially
participate.
Gross income from interest, dividends, annuities, or royalties that is not derived in the ordinary course of a trade or business. It includes gains from the sale or trade of property (other than an interest in a passive activity) producing portfolio income or held for investment.
The amount by which your cost or other basis in a bond right after you get it is more than the total of all amounts payable on the bond after you get it (other than payments of qualified stated interest).
Private activity bond:
(p84)A bond that is part of a state or local government bond issue of which:
- More than 10% of the proceeds are to be used for a private business use,
and
- More than 10% of the payment of the principal or interest
is:
- Secured by an interest in property to be used for a private business use (or payments for the property),
or
- Derived from payments for property (or borrowed money) used for a private business use.
An option that entitles the purchaser to sell, at any time before a specified future date, property such as a stated number of shares of stock at a specified price.
Real estate mortgage investment conduit (REMIC):
(p84)An entity that is formed for the purpose of holding a fixed pool of mortgages secured by interests in real property, with multiple classes of interests held by investors. These interests may be either regular or residual.
Regulated futures contract:
(p84)A section 1256 contract that:
- Provides that amounts that must be deposited to, or may be withdrawn from, your margin account depend on daily market conditions (a system of marking to market),
and
- Is traded on, or subject to the rules of, a qualified board of exchange, such as a domestic board of trade designated as a contract market by the Commodity Futures Trading Commission or any board of trade or exchange approved by the Secretary of the Treasury.
Stock you get for services you perform that is nontransferable and is subject to a substantial risk of forfeiture.
Section 1256 contract:
(p84)Any:
- Regulated futures contract,
- Foreign currency contract as defined in chapter 4 under
Foreign currency contract in
Section 1256 Contracts Marked to Market,
- Nonequity option,
- Dealer equity option, or
- Dealer securities futures contract.
For tax years beginning after July 21, 2010, a section 1256 contract does not include certain swaps as listed in
Exceptions under
Section 1256 Contracts Marked to Market in chapter 4.
Securities futures contract:
(p84)A contract of sale for future delivery of a single security or of a narrow-based security index.
The sale of property that you generally do not own. You borrow the property to deliver to a buyer and, at a later date, you buy substantially identical property and deliver it to the lender.
Generally, a set of offsetting positions on personal property. A straddle may consist of a purchased option to buy and a purchased option to sell on the same number of shares of the security, with the same exercise price and period.
Stripped preferred stock:
(p84)Stock that meets the following tests.
- There has been a separation in ownership between the stock and any dividend on the stock that has not become
payable.
- The stock:
- Is limited and preferred as to dividends,
- Does not participate in corporate growth to any significant extent,
and
- Has a fixed redemption price.
Any loan that is not a demand loan.
A sale of stock or securities at a loss within 30 days before or after you buy
or acquire in a fully taxable trade, or acquire a contract or option to buy,
substantially identical stock or securities.
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