File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2014 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Nd State Income Tax

File 1040ez ElectronicallyFiling 2009 Taxes In 2013File Taxes Online Free 20122006 Tax ReturnFreetaxusa 20122005 Tax Return Software FreeHrblock Free FileFree Tax Filing 2010Filing 1040x ElectronicallyCt 1040xIncome Tax Deductions 2012Irs Forms And PublicationsFiling A Tax AmendmentHow To File My 2012 TaxesAmend 2010 Tax Return FreeHow To File An Amended Tax Return For 2013Irs Tax Form 20101040ez Instructions 20121040ez Tax Form For 2012Free E File 2012I Need To File My 2011 Tax ReturnFile State Income Tax For FreeFiling 1040ezHow To File An Amended Tax Return2012 Tax Forms OnlineHow Much Does It Cost To Do State Taxes On Turbotax1040 Ez Calculator1040ez Printable Form2011 Tax Forms EzIncome State Tax FormsHow Do I File 2011 Tax ReturnPenalties For Filing Taxes LateH&r Block Free 1040ez1040nr Tax CalculatorIrs Form 10402010 Tax AmendmentFederal Tax Forms 1040ezHow To File A Tax Return For 20122011 Tax Returns2011 1040a

Nd State Income Tax

Nd state income tax 23. Nd state income tax   Interest Expense Table of Contents Introduction Useful Items - You may want to see: Home Mortgage InterestAmount Deductible Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement Investment InterestInvestment Property Allocation of Interest Expense Limit on Deduction Items You Cannot DeductPersonal Interest Allocation of Interest How To ReportMore than one borrower. Nd state income tax Mortgage proceeds used for business or investment. Nd state income tax Introduction This chapter discusses what interest expenses you can deduct. Nd state income tax Interest is the amount you pay for the use of borrowed money. Nd state income tax The following are types of interest you can deduct as itemized deductions on Schedule A (Form 1040). Nd state income tax Home mortgage interest, including certain points and mortgage insurance premiums. Nd state income tax Investment interest. Nd state income tax This chapter explains these deductions. Nd state income tax It also explains where to deduct other types of interest and lists some types of interest you cannot deduct. Nd state income tax Use Table 23-1 to find out where to get more information on various types of interest, including investment interest. Nd state income tax Useful Items - You may want to see: Publication 936 Home Mortgage Interest Deduction 550 Investment Income and Expenses Home Mortgage Interest Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). Nd state income tax The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. Nd state income tax You can deduct home mortgage interest if all the following conditions are met. Nd state income tax You file Form 1040 and itemize deductions on Schedule A (Form 1040). Nd state income tax The mortgage is a secured debt on a qualified home in which you have an ownership interest. Nd state income tax (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interest of the lender. Nd state income tax The term “qualified home” means your main home or second home. Nd state income tax For details, see Publication 936. Nd state income tax )  Both you and the lender must intend that the loan be repaid. Nd state income tax Amount Deductible In most cases, you can deduct all of your home mortgage interest. Nd state income tax How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. Nd state income tax Fully deductible interest. Nd state income tax   If all of your mortgages fit into one or more of the following three categories at all times during the year, you can deduct all of the interest on those mortgages. Nd state income tax (If any one mortgage fits into more than one category, add the debt that fits in each category to your other debt in the same category. Nd state income tax )   The three categories are as follows: Mortgages you took out on or before October 13, 1987 (called grandfathered debt). Nd state income tax Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2013 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). Nd state income tax Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2013 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2). Nd state income tax The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. Nd state income tax   See Part II of Publication 936 for more detailed definitions of grandfathered, home acquisition, and home equity debt. Nd state income tax    You can use Figure 23-A to check whether your home mortgage interest is fully deductible. Nd state income tax Figure 23-A. Nd state income tax Is My Home Mortgage Interest Fully Deductible? Please click here for the text description of the image. Nd state income tax Figure 23-A. Nd state income tax Is My Interest Fully Deductible? Limits on deduction. Nd state income tax   You cannot fully deduct interest on a mortgage that does not fit into any of the three categories listed earlier. Nd state income tax If this applies to you, see Part II of Publication 936 to figure the amount of interest you can deduct. Nd state income tax Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. Nd state income tax It also describes certain special situations that may affect your deduction. Nd state income tax Late payment charge on mortgage payment. Nd state income tax   You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan. Nd state income tax Mortgage prepayment penalty. Nd state income tax   If you pay off your home mortgage early, you may have to pay a penalty. Nd state income tax You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. Nd state income tax Sale of home. Nd state income tax   If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of sale. Nd state income tax Example. Nd state income tax John and Peggy Harris sold their home on May 7. Nd state income tax Through April 30, they made home mortgage interest payments of $1,220. Nd state income tax The settlement sheet for the sale of the home showed $50 interest for the 6-day period in May up to, but not including, the date of sale. Nd state income tax Their mortgage interest deduction is $1,270 ($1,220 + $50). Nd state income tax Prepaid interest. Nd state income tax   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. Nd state income tax You can deduct in each year only the interest that qualifies as home mortgage interest for that year. Nd state income tax However, there is an exception that applies to points, discussed later. Nd state income tax Mortgage interest credit. Nd state income tax   You may be able to claim a mortgage interest credit if you were issued a mortgage credit certificate (MCC) by a state or local government. Nd state income tax Figure the credit on Form 8396, Mortgage Interest Credit. Nd state income tax If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. Nd state income tax   For more information on the credit, see chapter 37. Nd state income tax Ministers' and military housing allowance. Nd state income tax   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you can still deduct your home mortgage interest. Nd state income tax Hardest Hit Fund and Emergency Homeowners' Loan Programs. Nd state income tax   You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. Nd state income tax You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. Nd state income tax You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. Nd state income tax If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received from payer(s) / borrower(s)), box 4 (mortgage insurance premiums) and box 5 (real property taxes). Nd state income tax However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. Nd state income tax Mortgage assistance payments under section 235 of the National Housing Act. Nd state income tax   If you qualify for mortgage assistance payments for lower-income families under section 235 of the National Housing Act, part or all of the interest on your mortgage may be paid for you. Nd state income tax You cannot deduct the interest that is paid for you. Nd state income tax No other effect on taxes. Nd state income tax   Do not include these mortgage assistance payments in your income. Nd state income tax Also, do not use these payments to reduce other deductions, such as real estate taxes. Nd state income tax Divorced or separated individuals. Nd state income tax   If a divorce or separation agreement requires you or your spouse or former spouse to pay home mortgage interest on a home owned by both of you, the payment of interest may be alimony. Nd state income tax See the discussion of Payments for jointly-owned home in chapter 18. Nd state income tax Redeemable ground rents. Nd state income tax   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. Nd state income tax   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. Nd state income tax For more information, see Publication 936. Nd state income tax Nonredeemable ground rents. Nd state income tax   Payments on a nonredeemable ground rent are not mortgage interest. Nd state income tax You can deduct them as rent if they are a business expense or if they are for rental property. Nd state income tax Reverse mortgages. Nd state income tax   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. Nd state income tax With a reverse mortgage, you retain title to your home. Nd state income tax Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Nd state income tax Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. Nd state income tax Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until the loan is paid in full. Nd state income tax Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Publication 936. Nd state income tax Rental payments. Nd state income tax   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. Nd state income tax This is true even if the settlement papers call them interest. Nd state income tax You cannot deduct these payments as home mortgage interest. Nd state income tax Mortgage proceeds invested in tax-exempt securities. Nd state income tax   You cannot deduct the home mortgage interest on grandfathered debt or home equity debt if you used the proceeds of the mortgage to buy securities or certificates that produce tax-free income. Nd state income tax “Grandfathered debt” and “home equity debt” are defined earlier under Amount Deductible. Nd state income tax Refunds of interest. Nd state income tax   If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. Nd state income tax If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. Nd state income tax However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. Nd state income tax This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. Nd state income tax    If you received a refund of interest you overpaid in an earlier year, you generally will receive a Form 1098, Mortgage Interest Statement, showing the refund in box 3. Nd state income tax For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. Nd state income tax   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in chapter 12. Nd state income tax Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Nd state income tax Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. Nd state income tax A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. Nd state income tax See Points paid by the seller , later. Nd state income tax General Rule You generally cannot deduct the full amount of points in the year paid. Nd state income tax Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. Nd state income tax See Deduction Allowed Ratably , next. Nd state income tax For exceptions to the general rule, see Deduction Allowed in Year Paid , later. Nd state income tax Deduction Allowed Ratably If you do not meet the tests listed under Deduction Allowed in Year Paid , later, the loan is not a home improvement loan, or you choose not to deduct your points in full in the year paid, you can deduct the points ratably (equally) over the life of the loan if you meet all the following tests. Nd state income tax You use the cash method of accounting. Nd state income tax This means you report income in the year you receive it and deduct expenses in the year you pay them. Nd state income tax Most individuals use this method. Nd state income tax Your loan is secured by a home. Nd state income tax (The home does not need to be your main home. Nd state income tax ) Your loan period is not more than 30 years. Nd state income tax If your loan period is more than 10 years, the terms of your loan are the same as other loans offered in your area for the same or longer period. Nd state income tax Either your loan amount is $250,000 or less, or the number of points is not more than: 4, if your loan period is 15 years or less, or 6, if your loan period is more than 15 years. Nd state income tax Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. Nd state income tax (You can use Figure 23-B as a quick guide to see whether your points are fully deductible in the year paid. Nd state income tax ) Your loan is secured by your main home. Nd state income tax (Your main home is the one you ordinarily live in most of the time. Nd state income tax ) Paying points is an established business practice in the area where the loan was made. Nd state income tax The points paid were not more than the points generally charged in that area. Nd state income tax You use the cash method of accounting. Nd state income tax This means you report income in the year you receive it and deduct expenses in the year you pay them. Nd state income tax (If you want more information about this method, see Accounting Methods in chapter 1. Nd state income tax ) The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Nd state income tax The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. Nd state income tax The funds you provided are not required to have been applied to the points. Nd state income tax They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. Nd state income tax You cannot have borrowed these funds from your lender or mortgage broker. Nd state income tax You use your loan to buy or build your main home. Nd state income tax The points were computed as a percentage of the principal amount of the mortgage. Nd state income tax The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. Nd state income tax The points may be shown as paid from either your funds or the seller's. Nd state income tax Figure 23-B. Nd state income tax Are My Points Fully Deductible This Year? Please click here for the text description of the image. Nd state income tax Figure 23-B. Nd state income tax Are My Points Fully Deductible This Year? Note. Nd state income tax If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan. Nd state income tax Home improvement loan. Nd state income tax   You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met. Nd state income tax Second home. Nd state income tax You cannot fully deduct in the year paid points you pay on loans secured by your second home. Nd state income tax You can deduct these points only over the life of the loan. Nd state income tax Refinancing. Nd state income tax   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. Nd state income tax This is true even if the new mortgage is secured by your main home. Nd state income tax   However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed under Deduction Allowed in Year Paid , earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Nd state income tax You can deduct the rest of the points over the life of the loan. Nd state income tax Example 1. Nd state income tax In 1998, Bill Fields got a mortgage to buy a home. Nd state income tax In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. Nd state income tax The mortgage is secured by his home. Nd state income tax To get the new loan, he had to pay three points ($3,000). Nd state income tax Two points ($2,000) were for prepaid interest, and one point ($1,000) was charged for services, in place of amounts that ordinarily are stated separately on the settlement statement. Nd state income tax Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. Nd state income tax The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. Nd state income tax Bill's first payment on the new loan was due July 1. Nd state income tax He made six payments on the loan in 2013 and is a cash basis taxpayer. Nd state income tax Bill used the funds from the new mortgage to repay his existing mortgage. Nd state income tax Although the new mortgage loan was for Bill's continued ownership of his main home, it was not for the purchase or improvement of that home. Nd state income tax He cannot deduct all of the points in 2013. Nd state income tax He can deduct two points ($2,000) ratably over the life of the loan. Nd state income tax He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. Nd state income tax The other point ($1,000) was a fee for services and is not deductible. Nd state income tax Example 2. Nd state income tax The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. Nd state income tax Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. Nd state income tax His deduction is $500 ($2,000 × 25%). Nd state income tax Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. Nd state income tax This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. Nd state income tax The total amount Bill deducts in 2013 is $550 ($500 + $50). Nd state income tax Special Situations This section describes certain special situations that may affect your deduction of points. Nd state income tax Original issue discount. Nd state income tax   If you do not qualify to either deduct the points in the year paid or deduct them ratably over the life of the loan, or if you choose not to use either of these methods, the points reduce the issue price of the loan. Nd state income tax This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. Nd state income tax Amounts charged for services. Nd state income tax   Amounts charged by the lender for specific services connected to the loan are not interest. Nd state income tax Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. Nd state income tax You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. Nd state income tax Points paid by the seller. Nd state income tax   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. Nd state income tax Treatment by seller. Nd state income tax   The seller cannot deduct these fees as interest. Nd state income tax But they are a selling expense that reduces the amount realized by the seller. Nd state income tax See chapter 15 for information on selling your home. Nd state income tax Treatment by buyer. Nd state income tax    The buyer reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them. Nd state income tax If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. Nd state income tax If any of those tests are not met, the buyer deducts the points over the life of the loan. Nd state income tax   For information about basis, see chapter 13. Nd state income tax Funds provided are less than points. Nd state income tax   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the funds you provided were less than the points charged to you (test (6)), you can deduct the points in the year paid, up to the amount of funds you provided. Nd state income tax In addition, you can deduct any points paid by the seller. Nd state income tax Example 1. Nd state income tax When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). Nd state income tax You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. Nd state income tax Of the $1,000 charged for points, you can deduct $750 in the year paid. Nd state income tax You spread the remaining $250 over the life of the mortgage. Nd state income tax Example 2. Nd state income tax The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. Nd state income tax In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). Nd state income tax You spread the remaining $250 over the life of the mortgage. Nd state income tax You must reduce the basis of your home by the $1,000 paid by the seller. Nd state income tax Excess points. Nd state income tax   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the points paid were more than generally paid in your area (test (3)), you deduct in the year paid only the points that are generally charged. Nd state income tax You must spread any additional points over the life of the mortgage. Nd state income tax Mortgage ending early. Nd state income tax   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. Nd state income tax However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. Nd state income tax Instead, deduct the remaining balance over the term of the new loan. Nd state income tax    A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. Nd state income tax Example. Nd state income tax Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. Nd state income tax He deducts $200 points per year. Nd state income tax Through 2012, Dan has deducted $2,200 of the points. Nd state income tax Dan prepaid his mortgage in full in 2013. Nd state income tax He can deduct the remaining $800 of points in 2013. Nd state income tax Limits on deduction. Nd state income tax   You cannot fully deduct points paid on a mortgage unless the mortgage fits into one of the categories listed earlier under Fully deductible interest . Nd state income tax See Publication 936 for details. Nd state income tax Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. Nd state income tax The insurance must be in connection with home acquisition debt and the insurance contract must have been issued after 2006. Nd state income tax Qualified mortgage insurance. Nd state income tax   Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Nd state income tax   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. Nd state income tax If provided by the Rural Housing Service, it is commonly known as a guarantee fee. Nd state income tax These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. Nd state income tax Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. Nd state income tax Special rules for prepaid mortgage insurance. Nd state income tax   Generally, if you paid premiums for qualified mortgage insurance that are allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. Nd state income tax You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained. Nd state income tax No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. Nd state income tax This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. Nd state income tax See the Example below. Nd state income tax Example. Nd state income tax Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. Nd state income tax Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. Nd state income tax Since the $9,240 in private mortgage insurance is allocable to periods after 2012, Ryan must allocate the $9,240 over the shorter of the life of the mortgage or 84 months. Nd state income tax Ryan's adjusted gross income (AGI) for 2012 is $76,000. Nd state income tax Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2012. Nd state income tax For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less. Nd state income tax In this example, the mortgage insurance premiums are allocated over 84 months, which is shorter than the life of the mortgage of 15 years (180 months). Nd state income tax Limit on deduction. Nd state income tax   If your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated. Nd state income tax See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. Nd state income tax If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. Nd state income tax Form 1098, Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. Nd state income tax You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. Nd state income tax A governmental unit is a person for purposes of furnishing the statement. Nd state income tax The statement for each year should be sent to you by January 31 of the following year. Nd state income tax A copy of this form will also be sent to the IRS. Nd state income tax The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. Nd state income tax However, it should not show any interest that was paid for you by a government agency. Nd state income tax As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. Nd state income tax However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. Nd state income tax See Points , earlier, to determine whether you can deduct points not shown on Form 1098. Nd state income tax Prepaid interest on Form 1098. Nd state income tax   If you prepaid interest in 2013 that accrued in full by January 15, 2014, this prepaid interest may be included in box 1 of Form 1098. Nd state income tax However, you cannot deduct the prepaid amount for January 2014 in 2013. Nd state income tax (See Prepaid interest , earlier. Nd state income tax ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. Nd state income tax You will include the interest for January 2014 with the other interest you pay for 2014. Nd state income tax See How To Report , later. Nd state income tax Refunded interest. Nd state income tax   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. Nd state income tax See Refunds of interest , earlier. Nd state income tax Mortgage insurance premiums. Nd state income tax   The amount of mortgage insurance premiums you paid during 2013 may be shown in box 4 of Form 1098. Nd state income tax See Mortgage Insurance Premiums, earlier. Nd state income tax Investment Interest This section discusses interest expenses you may be able to deduct as an investor. Nd state income tax If you borrow money to buy property you hold for investment, the interest you pay is investment interest. Nd state income tax You can deduct investment interest subject to the limit discussed later. Nd state income tax However, you cannot deduct interest you incurred to produce tax-exempt income. Nd state income tax Nor can you deduct interest expenses on straddles. Nd state income tax Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. Nd state income tax Investment Property Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. Nd state income tax It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Nd state income tax Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). Nd state income tax Partners, shareholders, and beneficiaries. Nd state income tax   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. Nd state income tax Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. Nd state income tax Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. Nd state income tax The allocation is not affected by the use of property that secures the debt. Nd state income tax Limit on Deduction Generally, your deduction for investment interest expense is limited to the amount of your net investment income. Nd state income tax You can carry over the amount of investment interest that you could not deduct because of this limit to the next tax year. Nd state income tax The interest carried over is treated as investment interest paid or accrued in that next year. Nd state income tax You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. Nd state income tax Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. Nd state income tax Investment income. Nd state income tax    This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). Nd state income tax Investment income does not include Alaska Permanent Fund dividends. Nd state income tax It also does not include qualified dividends or net capital gain unless you choose to include them. Nd state income tax Choosing to include qualified dividends. Nd state income tax   Investment income generally does not include qualified dividends, discussed in chapter 8. Nd state income tax However, you can choose to include all or part of your qualified dividends in investment income. Nd state income tax   You make this choice by completing Form 4952, line 4g, according to its instructions. Nd state income tax   If you choose to include any amount of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. Nd state income tax Choosing to include net capital gain. Nd state income tax   Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). Nd state income tax However, you can choose to include all or part of your net capital gain in investment income. Nd state income tax    You make this choice by completing Form 4952, line 4g, according to its instructions. Nd state income tax   If you choose to include any amount of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. Nd state income tax    Before making either choice, consider the overall effect on your tax liability. Nd state income tax Compare your tax if you make one or both of these choices with your tax if you do not. Nd state income tax Investment income of child reported on parent's return. Nd state income tax    Investment income includes the part of your child's interest and dividend income that you choose to report on your return. Nd state income tax If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814, Parents' Election To Report Child's Interest and Dividends. Nd state income tax Child's qualified dividends. Nd state income tax   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. Nd state income tax However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. Nd state income tax   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). Nd state income tax Child's Alaska Permanent Fund dividends. Nd state income tax   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. Nd state income tax To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. Nd state income tax Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. Nd state income tax Subtract the result from the amount on Form 8814, line 12. Nd state income tax Child's capital gain distributions. Nd state income tax    If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D, line 13, or Form 1040, line 13) generally does not count as investment income. Nd state income tax However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. Nd state income tax   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). Nd state income tax Investment expenses. Nd state income tax   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Nd state income tax Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. Nd state income tax Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A, line 27. Nd state income tax Losses from passive activities. Nd state income tax   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). Nd state income tax See Publication 925, Passive Activity and At-Risk Rules, for information about passive activities. Nd state income tax Form 4952 Use Form 4952, Investment Interest Expense Deduction, to figure your deduction for investment interest. Nd state income tax Exception to use of Form 4952. Nd state income tax   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. Nd state income tax Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. Nd state income tax You do not have any other deductible investment expenses. Nd state income tax You have no carryover of investment interest expense from 2012. Nd state income tax If you meet all of these tests, you can deduct all of your investment interest. Nd state income tax More Information For more information on investment interest, see Interest Expenses in chapter 3 of Publication 550. Nd state income tax Items You Cannot Deduct Some interest payments are not deductible. Nd state income tax Certain expenses similar to interest also are not deductible. Nd state income tax Nondeductible expenses include the following items. Nd state income tax Personal interest (discussed later). Nd state income tax Service charges (however, see Other Expenses (Line 23) in chapter 28). Nd state income tax Annual fees for credit cards. Nd state income tax Loan fees. Nd state income tax Credit investigation fees. Nd state income tax Interest to purchase or carry tax-exempt securities. Nd state income tax Penalties. Nd state income tax   You cannot deduct fines and penalties paid to a government for violations of law, regardless of their nature. Nd state income tax Personal Interest Personal interest is not deductible. Nd state income tax Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. Nd state income tax It includes the following items. Nd state income tax Interest on car loans (unless you use the car for business). Nd state income tax Interest on federal, state, or local income tax. Nd state income tax Finance charges on credit cards, retail installment contracts, and revolving charge accounts incurred for personal expenses. Nd state income tax Late payment charges by a public utility. Nd state income tax You may be able to deduct interest you pay on a qualified student loan. Nd state income tax For details, see Publication 970, Tax Benefits for Education. Nd state income tax Allocation of Interest If you use the proceeds of a loan for more than one purpose (for example, personal and business), you must allocate the interest on the loan to each use. Nd state income tax However, you do not have to allocate home mortgage interest if it is fully deductible, regardless of how the funds are used. Nd state income tax You allocate interest (other than fully deductible home mortgage interest) on a loan in the same way as the loan itself is allocated. Nd state income tax You do this by tracing disbursements of the debt proceeds to specific uses. Nd state income tax For details on how to do this, see chapter 4 of Publication 535. Nd state income tax How To Report You must file Form 1040 to deduct any home mortgage interest expense on your tax return. Nd state income tax Where you deduct your interest expense generally depends on how you use the loan proceeds. Nd state income tax See Table 23-1 for a summary of where to deduct your interest expense. Nd state income tax Home mortgage interest and points. Nd state income tax   Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. Nd state income tax If you paid more deductible interest to the financial institution than the amount shown on Form 1098, show the larger deductible amount on line 10. Nd state income tax Attach a statement explaining the difference and print “See attached” next to line 10. Nd state income tax    Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. Nd state income tax If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11. Nd state income tax The seller must give you this number and you must give the seller your TIN. Nd state income tax A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Nd state income tax Failure to meet any of these requirements may result in a $50 penalty for each failure. Nd state income tax The TIN can be either a social security number, an individual taxpayer identification number (issued by the Internal Revenue Service), or an employer identification number. Nd state income tax See Social Security Number (SSN) in chapter 1 for more information about TINs. Nd state income tax    If you can take a deduction for points that were not reported to you on Form 1098, deduct those points on Schedule A (Form 1040), line 12. Nd state income tax   Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. Nd state income tax More than one borrower. Nd state income tax   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Nd state income tax Show how much of the interest each of you paid, and give the name and address of the person who received the form. Nd state income tax Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Nd state income tax Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. Nd state income tax   Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. Nd state income tax You should let each of the other borrowers know what his or her share is. Nd state income tax Mortgage proceeds used for business or investment. Nd state income tax    If your home mortgage interest deduction is limited, but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 23-1. Nd state income tax It shows where to deduct the part of your excess interest that is for those activities. Nd state income tax Investment interest. Nd state income tax    Deduct investment interest, subject to certain limits discussed in Publication 550, on Schedule A (Form 1040), line 14. Nd state income tax Amortization of bond premium. Nd state income tax   There are various ways to treat the premium you pay to buy taxable bonds. Nd state income tax See Bond Premium Amortization in Publication 550. Nd state income tax Income-producing rental or royalty interest. Nd state income tax   Deduct interest on a loan for income-producing rental or royalty property that is not used in your business in Part I of Schedule E (Form 1040). Nd state income tax Example. Nd state income tax You rent out part of your home and borrow money to make repairs. Nd state income tax You can deduct only the interest payment for the rented part in Part I of Schedule E (Form 1040). Nd state income tax Deduct the rest of the interest payment on Schedule A (Form 1040) if it is deductible home mortgage interest. Nd state income tax Table 23-1. Nd state income tax Where To Deduct Your Interest Expense IF you have . Nd state income tax . Nd state income tax . Nd state income tax THEN deduct it on . Nd state income tax . Nd state income tax . Nd state income tax AND for more information go to . Nd state income tax . Nd state income tax . Nd state income tax deductible student loan interest Form 1040, line 33, or Form 1040A, line 18 Publication 970. Nd state income tax deductible home mortgage interest and points reported on Form 1098 Schedule A (Form 1040), line 10 Publication 936. Nd state income tax deductible home mortgage interest not reported on Form 1098 Schedule A (Form 1040), line 11 Publication 936. Nd state income tax deductible points not reported on Form 1098 Schedule A (Form 1040), line 12 Publication 936. Nd state income tax deductible mortgage insurance premiums Schedule A (Form 1040), line 13 Publication 936. Nd state income tax deductible investment interest (other than incurred to produce rents or royalties) Schedule A (Form 1040), line 14 Publication 550. Nd state income tax deductible business interest (non-farm) Schedule C or C-EZ (Form 1040) Publication 535. Nd state income tax deductible farm business interest Schedule F (Form 1040) Publications 225 and 535. Nd state income tax deductible interest incurred to produce rents or royalties Schedule E (Form 1040) Publications 527 and 535. Nd state income tax personal interest not deductible. Nd state income tax Prev  Up  Next   Home   More Online Publications
Español

Know Your Options

Airline delays caused by bad weather, traffic control problems, and mechanical repairs are hard to predict. If your flight is canceled, most airlines will rebook you on the earliest flight possible to your destination, at no additional charge. If you're able to find a flight on another airline, ask the first airline to endorse your ticket to the new carrier. This could save you a fare increase, but there is no rule requiring them to do this.

Each airline has its own policies about what it will do for delayed passengers; there are no federal requirements. If your flight is delayed or canceled, ask the airline if it will pay for meals or a phone call. Contrary to what many people believe, airlines are not required to do so.

Tarmac Delays

Under new federal rules, U.S. airlines operating domestic flights must allow passengers to deplane after a tarmac delay of three hours. The only exceptions allowed are for safety or security, or if air traffic control advises the pilot otherwise. Carriers are also required to provided adequate food and drinking water within two hours of being delayed on the tarmac; they must also maintain operable lavatories and, if necessary, provide medical attention.
There are other protections as well, such as prohibiting airlines from scheduling chronically delayed flights. For more information, search for Airline Passenger Protections on the Department of Transportation's website.

Overbooked Flights

Selling more tickets than there are seats is not illegal. Most airlines overbook their flights to compensate for "no-shows." If there are more passengers than seats just before a plane is scheduled to depart, you could be "bumped" or left behind against your will. Whether you are bumped or not may depend on when you officially check-in for your flight, so try to arrive early. The U.S. Department of Transportation requires airlines to ask people to give up their seats voluntarily, in exchange for compensation. Airlines decide what to offer volunteers, such as money, a free trip, food or lodging.

Federal rules protect you if you are "bumped" on most flights within the United States and on outbound international flights. Passengers who are involuntarily bumped are protected under Federal Aviation Administration guidelines. If you volunteer to be bumped, your agreement with the airline that is not regulated and will depend on negotiating at the gate.
The airline must give you a written statement describing your rights, as well as the airline's boarding priority rules and criteria. If the airline is not able to get you to your final destination within one hour of your original arrival time, the airline must pay you an amount equal to 200% of your one-way fare, with a maximum of $650. To receive this payment, you must have a confirmed reservation. You must also meet the airline's deadlines for ticketing and check-in. An airline may offer you a free ticket on a future flight in place of a check, but you have the right to insist on a check.

The Nd State Income Tax

Nd state income tax Publication 947 - Main Content Table of Contents Practice Before the IRSWhat Is Practice Before the IRS? Who Can Practice Before the IRS? Who Cannot Practice Before the IRS? How Does an Individual Become Enrolled? What Are the Rules of Practice? Authorizing a RepresentativeWhat Is a Power of Attorney? When Is a Power of Attorney Required? When Is a Power of Attorney Not Required? How Do I Fill Out Form 2848? What Happens to the Power of Attorney When Filed? How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Nd state income tax Practice Before the IRS The Office of Professional Responsibility and the Return Preparer Office generally are responsible for administering and enforcing the regulations governing practice before the IRS. Nd state income tax The Office of Professional Responsibility generally has responsibility for matters related to practitioner conduct and exclusive responsibility for discipline, including disciplinary proceedings and sanctions. Nd state income tax The Return Preparer Office is responsible for matters related to the authority to practice, including acting on applications for enrollment and administering competency testing and continuing education. Nd state income tax What Is Practice Before the IRS? Practice before the IRS covers all matters relating to any of the following. Nd state income tax Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS. Nd state income tax Representing a taxpayer at conferences, hearings, or meetings with the IRS. Nd state income tax Preparing and filing documents, including tax returns, with the IRS for a taxpayer. Nd state income tax Providing a client with written advice which has a potential for tax avoidance or evasion. Nd state income tax Furnishing information at the request of the IRS or appearing as a witness for the taxpayer is not practice before the IRS. Nd state income tax Who Can Practice Before the IRS? The following individuals can practice before the IRS. Nd state income tax However, any individual who is recognized to practice (a recognized representative) must be designated as the taxpayer's representative and file a written declaration with the IRS stating that he or she is authorized and qualified to represent a particular taxpayer. Nd state income tax Form 2848 can be used for this purpose. Nd state income tax Attorneys. Nd state income tax   Any attorney who is not currently under suspension or disbarment from practice before the IRS and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Nd state income tax Certified public accountants (CPAs). Nd state income tax   Any CPA who is not currently under suspension or disbarment from practice before the IRS and who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Nd state income tax Enrolled agents. Nd state income tax   Any enrolled agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Nd state income tax Enrolled retirement plan agents. Nd state income tax   Any enrolled retirement plan agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Nd state income tax The practice of enrolled retirement plan agents is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Nd state income tax Enrolled actuaries. Nd state income tax   Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Nd state income tax The practice of enrolled actuaries is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Nd state income tax Student. Nd state income tax    Under certain circumstances, a student who is supervised by a practitioner may request permission to represent another person before the IRS. Nd state income tax For more information, see Authorization for special appearances, later. Nd state income tax Registered tax return preparers and unenrolled return preparers. Nd state income tax   A registered tax return preparer is an individual who has passed an IRS competency test and is authorized to prepare and sign tax returns as the preparer. Nd state income tax An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or regulations) to sign the return. Nd state income tax   Registered tax return preparers and unenrolled return preparers may only represent taxpayers before revenue agents, customer service representatives, or similar officers and employees of the Internal Revenue Service (including the Taxpayer Advocate Service) during an examination of the taxable year or period covered by the tax return they prepared and signed. Nd state income tax Registered tax return preparers and unenrolled return preparers cannot represent taxpayers, regardless of the circumstances requiring representation, before appeals officers, revenue officers, counsel or similar officers or employees of the Internal Revenue Service or the Department of Treasury. Nd state income tax Registered tax return preparers and unenrolled return preparers cannot execute closing agreements, extend the statutory period for tax assessments or collection of tax, execute waivers, execute claims for refund, or sign any document on behalf of a taxpayer. Nd state income tax   If the unenrolled return preparer does not meet the requirements for limited representation, you may file Form 8821 to allow the preparer to inspect your tax information and receive copies of notices sent to you by the IRS. Nd state income tax See Form 8821. Nd state income tax Practice denied. Nd state income tax   Any individual engaged in limited practice before the IRS who is involved in disreputable conduct is subject to disciplinary action. Nd state income tax Disreputable conduct includes, but is not limited to, the list of items under Incompetence and Disreputable Conduct shown later under What Are the Rules of Practice. Nd state income tax Other individuals who may serve as representatives. Nd state income tax   Because of their special relationship with a taxpayer, the following individuals can represent the specified taxpayers before the IRS, provided they present satisfactory identification and, except in the case of an individual described in (1) below, proof of authority to represent the taxpayer. Nd state income tax An individual. Nd state income tax An individual can represent himself or herself before the IRS and does not have to file a written declaration of qualification and authority. Nd state income tax A family member. Nd state income tax An individual can represent members of his or her immediate family. Nd state income tax Immediate family includes a spouse, child, parent, brother, or sister of the individual. Nd state income tax An officer. Nd state income tax A bona fide officer of a corporation (including a parent, subsidiary, or other affiliated corporation), association, or organized group can represent the corporation, association, or organized group. Nd state income tax An officer of a governmental unit, agency, or authority, in the course of his or her official duties, can represent the organization before the IRS. Nd state income tax A partner. Nd state income tax A general partner may represent the partnership before the IRS. Nd state income tax An employee. Nd state income tax A regular full-time employee can represent his or her employer. Nd state income tax An employer can be, but is not limited to, an individual, partnership, corporation (including a parent, subsidiary, or other affiliated corporation), association, trust, receivership, guardianship, estate, organized group, governmental unit, agency, or authority. Nd state income tax A fiduciary. Nd state income tax A fiduciary (trustee, executor, personal representative, administrator, receiver, or guardian) stands in the position of a taxpayer and acts as the taxpayer, not as a representative. Nd state income tax See Fiduciary under When Is a Power of Attorney Not Required, later. Nd state income tax Representation Outside the United States Any individual may represent an individual or entity, who is outside the United States, before personnel of the IRS when such representation occurs outside the United States. Nd state income tax See section 10. Nd state income tax 7(c)(1)(vii) of Circular 230. Nd state income tax Authorization for Special Appearances The Commissioner of Internal Revenue, or delegate, can authorize an individual who is not otherwise eligible to practice before the IRS to represent another person for a particular matter. Nd state income tax The prospective representative must request this authorization in writing from the Office of Professional Responsibility. Nd state income tax However, it is granted only when extremely compelling circumstances exist. Nd state income tax If granted, the Commissioner, or delegate, will issue a letter that details the conditions related to the appearance and the particular tax matter for which the authorization is granted. Nd state income tax The authorization letter should not be confused with a letter from an IRS center advising an individual that he or she has been assigned a Centralized Authorization File (CAF) number. Nd state income tax The issuance of a CAF number does not indicate that an individual is either recognized or authorized to practice before the IRS. Nd state income tax It merely confirms that a centralized file for authorizations has been established for the individual under that number. Nd state income tax Students in LITCs and the STCP. Nd state income tax   A student who works in a Low Income Taxpayer Clinic (LITC) or Student Tax Clinic Program (STCP) who is supervised by a practitioner may request permission to represent another person before the IRS. Nd state income tax Authorization requests must be made to the Office of Professional Responsibility. Nd state income tax If granted, a letter authorizing the student's special appearance and detailing any conditions related to the appearance will be issued. Nd state income tax Students receiving an authorization letter generally can represent taxpayers before any IRS function or office subject to any conditions in the authorization letter. Nd state income tax If you intend to have a student represent you, review the authorization letter and ask your student, your student's supervisor, or the Office of Professional Responsibility if you have questions about the terms of the authorization. Nd state income tax Who Cannot Practice Before the IRS? In general, individuals who are not eligible or who have lost the privilege as a result of certain actions cannot practice before the IRS. Nd state income tax If an individual loses eligibility to practice, the IRS will not recognize a power of attorney that names the individual as a representative. Nd state income tax Corporations, associations, partnerships, and other persons that are not individuals. Nd state income tax   These organizations (or persons) are not eligible to practice before the IRS. Nd state income tax Loss of Eligibility Generally, individuals lose their eligibility to practice before the IRS in the following ways. Nd state income tax Not meeting the requirements for renewal of enrollment (such as continuing professional education). Nd state income tax Requesting to be placed in inactive retirement status. Nd state income tax Being suspended or disbarred by the Office of Professional Responsibility for violating the regulations governing practice before the IRS. Nd state income tax Failure to meet requirements. Nd state income tax   Individuals who fail to comply with the requirements for eligibility for renewal of enrollment will be notified by the IRS. Nd state income tax The notice will explain the reason for noncompliance and provide the individual with an opportunity to furnish information for reconsideration. Nd state income tax The individual has 60 days from the date of the notice to respond. Nd state income tax Inactive roster. Nd state income tax   An individual will be placed on the roster of inactive individuals for a period of three years, if he or she: Fails to respond timely to the notice of noncompliance with the renewal requirements, Fails to file timely the application for renewal, or Does not satisfy the requirements of eligibility for renewal. Nd state income tax The individual must file an application for renewal and satisfy all requirements for renewal after being placed in inactive status. Nd state income tax Otherwise, at the conclusion of the next renewal cycle, he or she will be removed from the roster and the enrollment or registration terminated. Nd state income tax Inactive retirement status. Nd state income tax   Individuals who request to be placed in an inactive retirement status will be ineligible to practice before the IRS. Nd state income tax They must continue to adhere to all renewal requirements. Nd state income tax They can be reinstated to an active enrollment status by filing an application for renewal and providing evidence that they have completed the required continuing professional education hours for the enrollment cycle or registration year. Nd state income tax Suspension and disbarment. Nd state income tax   Individuals authorized to practice before the IRS are subject to disciplinary proceedings and may be suspended or disbarred for violating any regulation governing practice before the IRS. Nd state income tax This includes engaging in acts of disreputable conduct. Nd state income tax For more information, see Incompetence and Disreputable Conduct under What are the Rules of Practice, later. Nd state income tax   Practitioners who are suspended in a disciplinary proceeding are not allowed to practice before the IRS during the period of suspension. Nd state income tax See What Is Practice Before the IRS, earlier. Nd state income tax   Practitioners who are disbarred in a disciplinary proceeding are not allowed to practice before the IRS. Nd state income tax However, a practitioner can seek reinstatement from the Office of Professional Responsibility five years after disbarment. Nd state income tax   If the practitioner seeks reinstatement, he or she may not practice before the IRS until the Office of Professional Responsibility authorizes reinstatement. Nd state income tax The Office of Professional Responsibility may reinstate the practitioner if it is determined that: The practitioner's future conduct is not likely to be in violation of the regulations, and Granting the reinstatement would not be contrary to the public interest. Nd state income tax How Does an Individual Become Enrolled? The Return Preparer Office can grant enrollment to practice before the IRS to an applicant who demonstrates special competence in tax matters by passing a written examination administered by the IRS. Nd state income tax Enrollment also can be granted to an applicant who qualifies because of past service and technical experience in the IRS. Nd state income tax In either case, certain application forms, discussed next, must be filed. Nd state income tax Additionally, an applicant must not have engaged in any conduct that would justify suspension or disbarment from practice before the IRS. Nd state income tax See Incompetence and Disreputable Conduct, later. Nd state income tax Form 2587. Nd state income tax   Applicants can apply to take the special enrollment examination by filing Form 2587, Application for Special Enrollment Examination. Nd state income tax Form 2587 can be filed online, by mail, or by fax. Nd state income tax For more information, see instructions and fees listed on the form. Nd state income tax To get Form 2587, see How To Get Tax Help, later. Nd state income tax Form 23 and Form 23-EP. Nd state income tax   Individuals who have passed the examination or are applying on the basis of past service and technical experience with the IRS can apply for enrollment by filing Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, or Form 23-EP, Application for Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent. Nd state income tax The application must include a check or money order in the amount of the fee shown on Form 23 or Form 23-EP. Nd state income tax Alternatively, payment may be made electronically pursuant to instructions on the forms. Nd state income tax To get Form 23 or Form 23-EP, see How To Get Tax Help, later. Nd state income tax Form 5434. Nd state income tax   An individual may apply as an enrolled actuary on the basis of past employment with the IRS and technical experience by filing Form 5434, Application for Enrollment, with the Joint Board for the Enrollment of Actuaries. Nd state income tax The application must include a check or money order in the amount of the fee shown on Form 5434. Nd state income tax To get Form 5434, see How To Get Tax Help, later. Nd state income tax Period of enrollment. Nd state income tax   An enrollment card will be issued to each individual whose enrollment application is approved. Nd state income tax The individual is enrolled until the expiration date shown on the enrollment card or certificate. Nd state income tax To continue practicing beyond the expiration date, the individual must request renewal of the enrollment by filing Form 8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service, or Form 8554-EP, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent (ERPA). Nd state income tax What Are the Rules of Practice? The rules governing practice before the IRS are published in the Code of Federal Regulations at 31 C. Nd state income tax F. Nd state income tax R. Nd state income tax part 10 and reprinted in Treasury Department Circular No. Nd state income tax 230 (Circular 230). Nd state income tax An attorney, CPA, enrolled agent, enrolled retirement plan agent, registered tax return preparer, or enrolled actuary authorized to practice before the IRS (referred to hereafter as a practitioner) has the duty to perform certain acts and is restricted from performing other acts. Nd state income tax In addition, a practitioner cannot engage in disreputable conduct (discussed later). Nd state income tax Any practitioner who does not comply with the rules of practice or engages in disreputable conduct is subject to disciplinary action. Nd state income tax Also, unenrolled preparers must comply with the rules of practice and conduct to exercise the privilege of limited practice before the IRS. Nd state income tax See Publication 470 for a discussion of the special rules for limited practice by unenrolled preparers. Nd state income tax Duties Practitioners must promptly submit records or information requested by officers or employees of the IRS, except when the practitioner believes on reasonable belief and good faith that the information is privileged. Nd state income tax Communications with respect to tax advice between a federally authorized tax practitioner and a taxpayer generally are confidential to the same extent that communication would be privileged if it were between a taxpayer and an attorney if the advice relates to: Noncriminal tax matters before the IRS, or Noncriminal tax proceedings brought in federal court by or against the United States. Nd state income tax Communications regarding corporate tax shelters. Nd state income tax   This protection of tax advice communications does not apply to any written communications between a federally authorized tax practitioner and any person, including a director, shareholder, officer, employee, agent, or representative of a corporation if the communication involves the promotion of the direct or indirect participation of the corporation in any tax shelter. Nd state income tax Duty to advise. Nd state income tax   A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return, document, affidavit, or other required paper, has the responsibility to advise the client promptly of the noncompliance, error, or omission, and the consequences of the noncompliance, error, or omission. Nd state income tax Due diligence. Nd state income tax   A practitioner must exercise due diligence when performing the following duties. Nd state income tax Preparing or assisting in the preparing, approving, and filing of returns, documents, affidavits, and other papers relating to IRS matters. Nd state income tax Determining the correctness of oral or written representations made by him or her to the Department of the Treasury. Nd state income tax Determining the correctness of oral or written representations made by him or her to clients with reference to any matter administered by the IRS. Nd state income tax Restrictions Practitioners are restricted from engaging in certain practices. Nd state income tax The following paragraphs discuss some of these restricted practices. Nd state income tax Delays. Nd state income tax   A practitioner must not unreasonably delay the prompt disposition of any matter before the IRS. Nd state income tax Assistance from disbarred or suspended persons and former IRS employees. Nd state income tax   A practitioner must not knowingly, directly or indirectly, do the following. Nd state income tax Accept assistance from, or assist, any person who is under disbarment or suspension from practice before the IRS if the assistance relates to matters considered practice before the IRS. Nd state income tax Accept assistance from any former government employee where provisions of Circular 230 or any federal law would be violated. Nd state income tax Performance as a notary. Nd state income tax   A practitioner who is a notary public and is employed as counsel, attorney, or agent in a matter before the IRS, or has a material interest in the matter, cannot engage in any notary activities related to that matter. Nd state income tax Negotiations of taxpayer refund checks. Nd state income tax   Practitioners must not endorse or otherwise negotiate (cash) any refund check (including directing or accepting payment by any means, electronic or otherwise, in an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to the taxpayer. Nd state income tax Incompetence and Disreputable Conduct Any practitioner or unenrolled return preparer may be disbarred or suspended from practice before the IRS, or censured, for incompetence or disreputable conduct. Nd state income tax The following list contains examples of conduct that is considered disreputable. Nd state income tax Being convicted of any criminal offense under the revenue laws or of any offense involving dishonesty or breach of trust. Nd state income tax Knowingly giving false or misleading information in connection with federal tax matters, or participating in such activity. Nd state income tax Soliciting employment by prohibited means as discussed in section 10. Nd state income tax 30 of Circular 230. Nd state income tax Willfully failing to file a federal tax return, evading or attempting to evade any federal tax or payment, or participating in such actions. Nd state income tax Misappropriating, or failing to properly and promptly remit, funds received from clients for payment of taxes or other obligations due the United States. Nd state income tax Directly or indirectly attempting to influence the official action of IRS employees by the use of threats, false accusations, duress, or coercion, or by offering gifts, favors, or any special inducements. Nd state income tax Being disbarred or suspended from practice as an attorney, CPA, public accountant, or actuary, by the District of Columbia or any state, possession, territory, commonwealth, or any federal court, or any federal agency, body, or board. Nd state income tax Knowingly aiding and abetting another person to practice before the IRS during a period of suspension, disbarment, or ineligibility of that other person. Nd state income tax Using abusive language, making false accusations and statements knowing them to be false, circulating or publishing malicious or libelous matter, or engaging in any contemptuous conduct in connection with practice before the IRS. Nd state income tax Giving a false opinion knowingly, recklessly, or through gross incompetence; or following a pattern of providing incompetent opinions in questions arising under the federal tax laws. Nd state income tax Censure, Disbarments, and Suspensions The Office of Professional Responsibility may censure or institute proceedings to censure, suspend or disbar any attorney, CPA, or enrolled agent who has violated Circular 230. Nd state income tax A practitioner will be given the opportunity to demonstrate compliance with the rules before any disciplinary action is taken. Nd state income tax Authorizing a Representative You may either represent yourself, or you may authorize an individual to represent you before the IRS. Nd state income tax If you chose to have someone represent you, your representative must be a person eligible to practice before the IRS. Nd state income tax See Who Can Practice Before the IRS, earlier. Nd state income tax What Is a Power of Attorney? A power of attorney is your written authorization for an individual to act on your behalf. Nd state income tax If the authorization is not limited, the individual generally can perform all acts that you can perform. Nd state income tax The authority granted to a registered tax return preparer or an unenrolled preparer is limited. Nd state income tax For information on the limits regarding registered tax return preparers, see Circular 230 §10. Nd state income tax 3(f). Nd state income tax For information on the limits regarding unenrolled preparers, see Publication 470. Nd state income tax Acts performed. Nd state income tax   Any representative, other than a registered tax return preparer or an unenrolled return preparer, can usually perform the following acts. Nd state income tax Represent you before any office of the IRS. Nd state income tax Sign an offer or a waiver of restriction on assessment or collection of a tax deficiency, or a waiver of notice of disallowance of claim for credit or refund. Nd state income tax Sign a consent to extend the statutory time period for assessment or collection of a tax. Nd state income tax Sign a closing agreement. Nd state income tax Signing your return. Nd state income tax   The representative named under a power of attorney is not permitted to sign your income tax return unless: The signature is permitted under the Internal Revenue Code and the related regulations (see Regulations section 1. Nd state income tax 6012-1(a)(5)). Nd state income tax You specifically authorize this in your power of attorney. Nd state income tax For example, the regulation permits a representative to sign your return if you are unable to sign the return due to: Disease or injury. Nd state income tax Continuous absence from the United States (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return. Nd state income tax Other good cause if specific permission is requested of and granted by the IRS. Nd state income tax When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. Nd state income tax For more information, see the Form 2848 instructions. Nd state income tax Limitation on substitution or delegation. Nd state income tax   A recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized by you on the power of attorney. Nd state income tax   After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. Nd state income tax If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent you. Nd state income tax Disclosure of returns to a third party. Nd state income tax   Your representative cannot execute consents that will allow the IRS to disclose tax return or return information to a third party unless you specifically delegate this authority to your representative on line 5 of Form 2848. Nd state income tax Incapacity or incompetency. Nd state income tax   A power of attorney is generally terminated if you become incapacitated or incompetent. Nd state income tax   The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on line 5 “Other” of the Form 2848 and if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. Nd state income tax See Non-IRS powers of attorney, later. Nd state income tax When Is a Power of Attorney Required? Submit a power of attorney when you want to authorize an individual to represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney. Nd state income tax A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf. Nd state income tax Represent you at a meeting with the IRS. Nd state income tax Prepare and file a written response to the IRS. Nd state income tax Form Required Use Form 2848 to appoint a recognized representative to act on your behalf before the IRS. Nd state income tax Individuals recognized to practice before the IRS are listed under Part II, Declaration of Representative, of Form 2848. Nd state income tax Your representative must complete that part of the form. Nd state income tax Non-IRS powers of attorney. Nd state income tax   The IRS will accept a non-IRS power of attorney, but a completed Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. Nd state income tax For more information, see Processing a non-IRS power of attorney, later. Nd state income tax   If you want to use a power of attorney document other than Form 2848, it must contain the following information. Nd state income tax Your name and mailing address. Nd state income tax Your social security number and/or employer identification number. Nd state income tax Your employee plan number, if applicable. Nd state income tax The name and mailing address of your representative(s). Nd state income tax The types of tax involved. Nd state income tax The federal tax form number. Nd state income tax The specific year(s) or period(s) involved. Nd state income tax For estate tax matters, the decedent's date of death. Nd state income tax A clear expression of your intention concerning the scope of authority granted to your representative(s). Nd state income tax Your signature and date. Nd state income tax You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. Nd state income tax This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. Nd state income tax The statement should read: I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority, I am aware of the regulations contained in Circular 230, I am authorized to represent the taxpayer(s) identified in the power of attorney, and I am an individual described in 26 CFR 601. Nd state income tax 502(b). Nd state income tax Required information missing. Nd state income tax   The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. Nd state income tax You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. Nd state income tax If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next. Nd state income tax Procedure for perfecting a non-IRS power of attorney. Nd state income tax   Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf. Nd state income tax The original non-IRS power of attorney grants authority to handle federal tax matters (for example, general authority to perform any acts). Nd state income tax The attorney-in-fact attaches a statement (signed under penalty of perjury) to the Form 2848 stating that the original non-IRS power of attorney is valid under the laws of the governing jurisdiction. Nd state income tax Example. Nd state income tax John Elm, a taxpayer, signs a non-IRS durable power of attorney that names his neighbor and CPA, Ed Larch, as his attorney-in-fact. Nd state income tax The power of attorney grants Ed the authority to perform any and all acts on John's behalf. Nd state income tax However, it does not list specific tax-related information such as types of tax or tax form numbers. Nd state income tax Shortly after John signs the power of attorney, he is declared incompetent. Nd state income tax Later, a federal tax matter arises concerning a prior year return filed by John. Nd state income tax Ed attempts to represent John before the IRS but is rejected because the durable power of attorney does not contain required information. Nd state income tax If Ed attaches a statement (signed under the penalty of perjury) that the durable power of attorney is valid under the laws of the governing jurisdiction, he can sign a completed Form 2848 and submit it on John's behalf. Nd state income tax If Ed can practice before the IRS (see Who Can Practice Before the IRS, earlier), he can name himself as representative on Form 2848. Nd state income tax Otherwise, he must name another individual who can practice before the IRS. Nd state income tax Processing a non-IRS power of attorney. Nd state income tax   The IRS has a centralized computer database system called the CAF system. Nd state income tax This system contains information on the authority of taxpayer representatives. Nd state income tax Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. Nd state income tax Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the CAF. Nd state income tax It also enables the IRS to automatically send copies of notices and other IRS communications to your representative if you specify that your representative should receive those communications. Nd state income tax   You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed Form 2848 and submitting it to the IRS. Nd state income tax Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848). Nd state income tax Preparation of Form — Helpful Hints The preparation of Form 2848 is illustrated by an example, later under How Do I Fill Out Form 2848. Nd state income tax However, the following will also assist you in preparing the form. Nd state income tax Line-by-line hints. Nd state income tax   The following hints are summaries of some of the line-by-line instructions for Form 2848. Nd state income tax Line 1—Taxpayer information. Nd state income tax   If a joint return is involved, the husband and wife each file a separate Form 2848 if they both want to be represented. Nd state income tax If only one spouse wants to be represented in the matter, that spouse files a Form 2848. Nd state income tax Line 2—Representative(s). Nd state income tax   Only individuals may be named as representatives. Nd state income tax If your representative has not been assigned a CAF number, enter “None” on that line and the IRS will issue one to your representative. Nd state income tax If the representative's address or phone number has changed since the CAF number was issued, you should check the appropriate box. Nd state income tax Enter your representative's fax number if available. Nd state income tax   If you want to name more than three representatives, attach additional Form(s) 2848. Nd state income tax The IRS can send copies of notices and communications to two of your representatives. Nd state income tax You must, however, check the boxes on line 2 of the Form 2848 if you want the IRS to routinely send copies of notices and communications to your representatives. Nd state income tax If you do not check the boxes, your representatives will not routinely receive copies of notices and communications. Nd state income tax Line 3—Tax matters. Nd state income tax   You may list any tax years or periods that have already ended as of the date you sign the power of attorney. Nd state income tax However, you may include on a power of attorney only future tax periods that end no later than 3 years after the date the power of attorney is received by the IRS. Nd state income tax The 3 future periods are determined starting after December 31 of the year the power of attorney is received by the IRS. Nd state income tax However, avoid general references such as “all years” or “all taxes. Nd state income tax ” Any Form 2848 with general references will be returned. Nd state income tax Line 4—Specific use not recorded on Centralized Authorization File (CAF). Nd state income tax   Certain matters cannot be recorded on the CAF system. Nd state income tax Examples of such matters include, but are not limited to, the following. Nd state income tax Requests for a private letter ruling or technical advice. Nd state income tax Applications for an employer identification number (EIN). Nd state income tax Claims filed on Form 843, Claim for Refund and Request for Abatement. Nd state income tax Corporate dissolutions. Nd state income tax Requests for change of accounting method. Nd state income tax Requests for change of accounting period. Nd state income tax Applications for recognition of exemption under sections 501(c)(3), 501(a), or 521 (Forms 1023, 1034, or 1028). Nd state income tax Request for a determination of the qualified status of an employee benefit plan (Forms 5300, 5307, or 5310). Nd state income tax Application for Award for Original Information under section 7623. Nd state income tax Voluntary submissions under the Employee Plans Compliance Resolution System (EPCRS). Nd state income tax Freedom of Information Act requests. Nd state income tax If the tax matter described on line 3 of Form 2848 concerns one of these matters specifically, check the box on line 4. Nd state income tax If this box is checked, the representative should mail or fax the power of attorney to the IRS office handling the matter. Nd state income tax Otherwise, the representative should bring a copy of the power of attorney to each meeting with the IRS. Nd state income tax Where To File a Power of Attorney Generally, you can mail or fax a paper Form 2848 directly to the IRS. Nd state income tax To determine where you should file Form 2848, see Where To File in the instructions for Form 2848. Nd state income tax If Form 2848 is for a specific use, mail or fax it to the office handling that matter. Nd state income tax For more information on specific use, see the Instructions for Form 2848, line 4. Nd state income tax FAX copies. Nd state income tax   The IRS will accept a copy of a power of attorney that is submitted by facsimile transmission (fax). Nd state income tax If you choose to file a power of attorney by fax, be sure the appropriate IRS office is equipped to accept this type of transmission. Nd state income tax Your representative may be able to file Form 2848 electronically via the IRS website. Nd state income tax For more information, your representative can go to www. Nd state income tax irs. Nd state income tax gov and under the Tax Professionals tab, click on e-services–Online Tools for Tax Professionals. Nd state income tax If you complete Form 2848 for electronic signature authorization, do not file Form 2848 with the IRS. Nd state income tax Instead, give it to your representative, who will retain the document. Nd state income tax Updating a power of attorney. Nd state income tax   Submit any update or modification to an existing power of attorney in writing. Nd state income tax Your signature (or the signature of the individual(s) authorized to sign on your behalf) is required. Nd state income tax Do this by sending the updated Form 2848 or non-IRS power of attorney to the IRS office(s) where you previously sent the original(s), including the center where the related return was, or will be filed. Nd state income tax   A recognized representative may substitute or delegate authority if you specifically authorize your representative to substitute or delegate representation in the original power of attorney. Nd state income tax To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed. Nd state income tax A written notice of substitution or delegation signed by the recognized representative. Nd state income tax A written declaration of representative made by the new representative. Nd state income tax A copy of the power of attorney that specifically authorizes the substitution or delegation. Nd state income tax Retention/Revocation of Prior Power(s) of Attorney A newly filed power of attorney concerning the same matter will revoke a previously filed power of attorney. Nd state income tax However, the new power of attorney will not revoke the prior power of attorney if it specifically states it does not revoke such prior power of attorney and either of the following are attached to the new power of attorney. Nd state income tax A copy of the unrevoked prior power of attorney, or A statement signed by the taxpayer listing the name and address of each representative authorized under the prior unrevoked power of attorney. Nd state income tax Note. Nd state income tax The filing of Form 2848 will not revoke any  Form 8821 that is in effect. Nd state income tax Revocation of Power of Attorney/Withdrawal of Representative If you want to revoke an existing power of attorney and do not want to name a new representative, or if a representative wants to withdraw from representation, mail or fax a copy of the previously executed power of attorney to the IRS, or if the power of attorney is for a specific matter, to the IRS office handling the matter. Nd state income tax If the taxpayer is revoking the power of attorney, the taxpayer must write “REVOKE” across the top of the first page with a current signature and date below this annotation. Nd state income tax If the representative is withdrawing from the representation, the representative must write “WITHDRAW” across the top of the first page with a current signature and date below this annotation. Nd state income tax If you do not have a copy of the power of attorney you want to revoke or withdraw, send a statement to the IRS. Nd state income tax The statement of revocation or withdrawal must indicate that the authority of the power of attorney is revoked or withdrawn, list the matters and periods, and must be signed and dated by the taxpayer or representative as applicable. Nd state income tax If the taxpayer is revoking, list the name and address of each recognized representative whose authority is revoked. Nd state income tax When the taxpayer is completely revoking authority, the form should state “remove all years/periods” instead of listing the specific tax matter, years, or periods. Nd state income tax If the representative is withdrawing, list the name, TIN, and address (if known) of the taxpayer. Nd state income tax To revoke a specific use power of attorney, send the power of attorney or statement of revocation to the IRS office handling your case, using the above instructions. Nd state income tax A power of attorney held by a student will be recorded on the CAF system for 130 days from the receipt date. Nd state income tax If you are authorizing a student to represent you after that time, you will need to submit a current and valid Form 2848. Nd state income tax When Is a Power of Attorney Not Required? A power of attorney is not required when the third party is not dealing with the IRS as your representative. Nd state income tax The following situations do not require a power of attorney. Nd state income tax Providing information to the IRS. Nd state income tax Authorizing the disclosure of tax return information through Form 8821, Tax Information Authorization, or other written or oral disclosure consent. Nd state income tax Allowing the IRS to discuss return information with a third party via the checkbox provided on a tax return or other document. Nd state income tax Allowing a tax matters partner or person (TMP) to perform acts for the partnership. Nd state income tax Allowing the IRS to discuss return information with a fiduciary. Nd state income tax How Do I Fill Out Form 2848? The following example illustrates how to complete Form 2848. Nd state income tax The two completed forms for this example are shown on the next pages. Nd state income tax Example. Nd state income tax Stan and Mary Doe have been notified that their joint tax returns (Forms 1040) for 2009, 2010, and 2011 are being examined. Nd state income tax They have decided to appoint Jim Smith, an enrolled agent, to represent them in this matter and any future matters concerning these returns. Nd state income tax Jim, who has prepared returns at the same location for years, already has a Centralized Authorization File (CAF) number assigned to him. Nd state income tax Mary does not want Jim to sign any agreements on her behalf, but Stan is willing to have Jim do so. Nd state income tax They want copies of all notices and written communications sent to Jim. Nd state income tax This is the first time Stan and Mary have given power of attorney to anyone. Nd state income tax They should each complete a Form 2848 as follows. Nd state income tax Line 1—Taxpayer information. Nd state income tax   Stan and Mary must each file a separate Form 2848. Nd state income tax On his separate Form 2848, Stan enters his name, street address, and social security number in the spaces provided. Nd state income tax Mary does likewise on her separate Form 2848. Nd state income tax Line 2—Representative(s). Nd state income tax   On their separate Forms 2848, Stan and Mary each enters the name and current address of their chosen representative, Jim Smith. Nd state income tax Both Stan and Mary want Jim Smith to receive notices and communications concerning the matters identified in line 3, so on their separate Forms 2848, Stan and Mary each checks the box in the first column of line 2. Nd state income tax They also enter Mr. Nd state income tax Smith's CAF number, his telephone number, and his fax number. Nd state income tax Mr. Nd state income tax Smith's address, telephone number, and fax number have not changed since the IRS issued his CAF number, so Stan and Mary do not check the boxes in the second column. Nd state income tax Line 3—Tax Matters. Nd state income tax   On their separate Forms 2848, Stan and Mary each enters “income” for the type of tax, “1040” for the form number, and “2009, 2010, and 2011” for the tax years. Nd state income tax Line 4—Specific use not recorded on Centralized Authorization File (CAF). Nd state income tax   On their separate Forms 2848, Stan and Mary make no entry on this line because they do not want to restrict the use of their powers of attorney to a specific use that is not recorded on the CAF. Nd state income tax See Preparation of Form — Helpful Hints, earlier. Nd state income tax Line 5—Acts authorized. Nd state income tax   Mary wants to sign any agreement that reflects changes to her and Stan's joint 2009, 2010, and 2011 income tax liability, so she writes “Taxpayer must sign any agreement form” on line 5 of her Form 2848. Nd state income tax Stan does not wish to restrict the authority of Jim Smith in this regard, so he leaves line 5 of his Form 2848 blank. Nd state income tax If either Mary or Stan had chosen, they could have listed other restrictions on line 5 of their separate Forms 2848. Nd state income tax Line 6—Retention/revocation of prior power(s) of attorney. Nd state income tax   Stan and Mary are each filing their first powers of attorney, so they make no entry on this line. Nd state income tax However, if they had filed prior powers of attorney, the filing of this current power would revoke any earlier ones for the same tax matter(s) unless they checked the box on line 6 and attached a copy of the prior power of attorney that they wanted to remain in effect. Nd state income tax   If Mary later decides that she can handle the examination on her own, she can revoke her power of attorney even though Stan does not revoke his power of attorney. Nd state income tax (See Revocation of Power of Attorney/Withdrawal of Representative, earlier, for the special rules that apply. Nd state income tax ) Line 7—Signature of taxpayer. Nd state income tax   Stan and Mary each signs and dates his or her Form 2848. Nd state income tax If a taxpayer does not sign, the IRS cannot accept the form. Nd state income tax Part II—Declaration of Representative. Nd state income tax   Jim Smith must complete this part of Form 2848. Nd state income tax If he does not sign this part, the IRS cannot accept the form. Nd state income tax What Happens to the Power of Attorney When Filed? A power of attorney will be recognized after it is received, reviewed, and determined by the IRS to contain the required information. Nd state income tax However, until a power of attorney is entered on the CAF system, IRS personnel may be unaware of the authority of the person you have named to represent you. Nd state income tax Therefore, during this interim period, IRS personnel may request that you or your representative bring a copy to any meeting with the IRS. Nd state income tax This image is too large to be displayed in the current screen. Nd state income tax Please click the link to view the image. Nd state income tax Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Nd state income tax Please click the link to view the image. Nd state income tax Filled-in Form 2848 - Page 2 This image is too large to be displayed in the current screen. Nd state income tax Please click the link to view the image. Nd state income tax Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Nd state income tax Please click the link to view the image. Nd state income tax Filled-in Form 2848 - Page 2 Processing and Handling How the power of attorney is processed and handled depends on whether it is a complete or incomplete document. Nd state income tax Incomplete document. Nd state income tax   If Form 2848 is incomplete, the IRS will attempt to secure the missing information either by writing or telephoning you or your representative. Nd state income tax For example, if your signature or signature date is missing, the IRS will contact you. Nd state income tax If information concerning your representative is missing and information sufficient to make a contact (such as an address and/or a telephone number) is on the document, the IRS will try to contact your representative. Nd state income tax   In either case, the power of attorney is not considered valid until all required information is entered on the document. Nd state income tax The individual(s) named as representative(s) will not be recognized to practice before the IRS, on your behalf, until the document is complete and accepted by the IRS. Nd state income tax Complete document. Nd state income tax   If the power of attorney is complete and valid, the IRS will take action to recognize the representative. Nd state income tax In most instances, this includes processing the document on the CAF system. Nd state income tax Recording the data on the CAF system enables the IRS to direct copies of mailings to authorized representatives and to readily recognize the scope of authority granted. Nd state income tax Documents not processed on CAF. Nd state income tax   Specific-use powers of attorney are not processed on the CAF system (see Preparation of Form – Helpful Hints, earlier). Nd state income tax For example, a power of attorney that is a one-time or specific-issue grant of authority is not processed on the CAF system. Nd state income tax These documents remain with the related case files. Nd state income tax In this situation, you should check the box on line 4 of Form 2848. Nd state income tax In these situations, the representative should bring a copy of the power of attorney to each meeting with the IRS. Nd state income tax Dealing With the Representative After a valid power of attorney is filed, the IRS will recognize your representative. Nd state income tax However, if it appears the representative is responsible for unreasonably delaying or hindering the prompt disposition of an IRS matter by failing to furnish, after repeated requests, nonprivileged information, the IRS can contact you directly. Nd state income tax For example, in most instances in which a power of attorney is recognized, the IRS will contact the representative to set up appointments and to provide lists of required items. Nd state income tax However, if the representative is unavailable, does not respond to repeated requests, and does not provide required items (other than items considered privileged), the IRS can bypass your representative and contact you directly. Nd state income tax If a representative engages in conduct described above, the matter can be referred to the Office of Professional Responsibility for consideration of possible disciplinary action. Nd state income tax Notices and other correspondence. Nd state income tax   If you have a recognized representative, you and the representative will routinely receive notices and other correspondence from the IRS (either the original or a copy) if you checked the box in the left column of line 2 of Form 2848. Nd state income tax If the power of attorney is processed on the CAF system, the IRS will send your representative(s) a duplicate of all computer-generated correspondence that is sent to you. Nd state income tax This includes notices and letters produced either at the Martinsburg Computing Center, or other IRS centers. Nd state income tax The IRS employee handling the case is responsible for ensuring that the original and any requested copies of each manually-generated correspondence are sent to you and your representative(s) in accordance with your authorization. Nd state income tax How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Nd state income tax By selecting the method that is best for you, you will have quick and easy access to tax help. Nd state income tax Free help with your return. Nd state income tax   Free help in preparing your return is available nationwide from IRS-certified volunteers. Nd state income tax The Volunteer Income Tax Assistance (VITA) program is designed to help low and 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. Nd state income tax 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. Nd state income tax To find the nearest VITA or TCE site, visit IRS. Nd state income tax gov or call 1-800-906-9887 or 1-800-829-1040. Nd state income tax   As part of the TCE program, AARP offers the Tax-Aide counseling program. Nd state income tax To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Nd state income tax aarp. Nd state income tax org/money/taxaide. Nd state income tax   For more information on these programs, go to IRS. Nd state income tax gov and enter keyword “VITA” in the upper right-hand corner. Nd state income tax Internet. Nd state income tax You can access the IRS website at IRS. Nd state income tax gov 24 hours a day, 7 days a week to: E-file your return. Nd state income tax Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Nd state income tax Check the status of your refund. Nd state income tax Go to IRS. Nd state income tax gov and click on Where's My Refund. Nd state income tax 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. Nd state income tax If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Nd state income tax Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Nd state income tax Download forms, including talking tax forms, instructions, and publications. Nd state income tax Order IRS products online. Nd state income tax Research your tax questions online. Nd state income tax Search publications online by topic or keyword. Nd state income tax Use the online Internal Revenue Code, regulations, or other official guidance. Nd state income tax View Internal Revenue Bulletins (IRBs) published in the last few years. Nd state income tax Figure your withholding allowances using the withholding calculator online at www. Nd state income tax irs. Nd state income tax gov/individuals. Nd state income tax Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Nd state income tax irs. Nd state income tax gov/individuals. Nd state income tax Sign up to receive local and national tax news by email. Nd state income tax Get information on starting and operating a small business. Nd state income tax Phone. Nd state income tax Many services are available by phone. Nd state income tax   Ordering forms, instructions, and publications. Nd state income tax Call 1-800-TAX -FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Nd state income tax You should receive your order within 10 days. Nd state income tax Asking tax questions. Nd state income tax Call the IRS with your tax questions at 1-800-829-1040. Nd state income tax Solving problems. Nd state income tax You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Nd state income tax An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Nd state income tax Call your local Taxpayer Assistance Center for an appointment. Nd state income tax To find the number, go to www. Nd state income tax irs. Nd state income tax gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Nd state income tax TTY/TDD equipment. Nd state income tax If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Nd state income tax TeleTax topics. Nd state income tax Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Nd state income tax Refund information. Nd state income tax To check the status of your refund, call 1-800-829-1954 or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Nd state income tax 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. Nd state income tax If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Nd state income tax Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Nd state income tax 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. Nd state income tax Other refund information. Nd state income tax To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Nd state income tax Evaluating the quality of our telephone services. Nd state income tax To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Nd state income tax One method is for a second IRS representative to listen in on or record random telephone calls. Nd state income tax Another is to ask some callers to complete a short survey at the end of the call. Nd state income tax Walk-in. Nd state income tax Many products and services are available on a walk-in basis. Nd state income tax   Products. Nd state income tax You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Nd state income tax 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. Nd state income tax Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Nd state income tax Services. Nd state income tax You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Nd state income tax An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Nd state income tax 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. Nd state income tax No appointment is necessary—just walk in. Nd state income tax If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Nd state income tax A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Nd state income tax If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Nd state income tax All other issues will be handled without an appointment. Nd state income tax To find the number of your local office, go to  www. Nd state income tax irs. Nd state income tax gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Nd state income tax Mail. Nd state income tax You can send your order for forms, instructions, and publications to the address below. Nd state income tax You should receive a response within 10 days after your request is received. Nd state income tax  Internal Revenue Service 1201 N. Nd state income tax Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Nd state income tax   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Nd state income tax Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Nd state income tax 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. Nd state income tax Remember, the worst thing you can do is nothing at all. Nd state income tax   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. Nd state income tax You face (or your business is facing) an immediate threat of adverse action. Nd state income tax 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. Nd state income tax   If you qualify for our help, we’ll do everything we can to get your problem resolved. Nd state income tax You will be assigned to one advocate who will be with you at every turn. Nd state income tax We have offices in every state, the District of Columbia, and Puerto Rico. Nd state income tax Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Nd state income tax And our services are always free. Nd state income tax   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Nd state income tax Our tax toolkit at www. Nd state income tax TaxpayerAdvocate. Nd state income tax irs. Nd state income tax gov can help you understand these rights. Nd state income tax   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. Nd state income tax irs. Nd state income tax gov/advocate. Nd state income tax You can also call our toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Nd state income tax   TAS also handles large-scale or systemic problems that affect many taxpayers. Nd state income tax If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Nd state income tax irs. Nd state income tax gov/advocate. Nd state income tax Low Income Taxpayer Clinics (LITCs). Nd state income tax   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Nd state income tax Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Nd state income tax 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. Nd state income tax Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Nd state income tax For more information and to find a clinic near you, see the LITC page on www. Nd state income tax irs. Nd state income tax gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Nd state income tax This publication is also available by calling 1-800-829-3676 or at your local IRS office. Nd state income tax Free tax services. Nd state income tax   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Nd state income tax Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Nd state income tax The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Nd state income tax The majority of the information and services listed in this publication are available to you free of charge. Nd state income tax If there is a fee associated with a resource or service, it is listed in the publication. Nd state income tax   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Nd state income tax DVD for tax products. Nd state income tax You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Nd state income tax Prior-year forms, instructions, and publications. Nd state income tax Tax Map: an electronic research tool and finding aid. Nd state income tax Tax law frequently asked questions. Nd state income tax Tax Topics from the IRS telephone response system. Nd state income tax Internal Revenue Code—Title 26 of the U. Nd state income tax S. Nd state income tax Code. Nd state income tax Links to other Internet based Tax Research Materials. Nd state income tax Fill-in, print, and save features for most tax forms. Nd state income tax Internal Revenue Bulletins. Nd state income tax Toll-free and email technical support. Nd state income tax Two releases during the year. Nd state income tax  – The first release will ship the beginning of January. Nd state income tax  – The final release will ship the beginning of March. Nd state income tax Purchase the DVD from National Technical Information Service (NTIS) at www. Nd state income tax irs. Nd state income tax 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). Nd state income tax Prev  Up  Next   Home   More Online Publications