| Publication 519 |
2008 Tax Year |
This chapter provides the basic filing information that you may need.
Topics - This chapter discusses:
Useful Items - You may want to see:
Forms (and Instructions)
-
1040
U.S. Individual Income Tax Return
-
1040A
U.S. Individual Income Tax Return
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1040EZ
Income Tax Return for Single and Joint Filers With No Dependents
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1040NR
U.S. Nonresident Alien Income Tax Return
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1040NR-EZ
U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents
See chapter 12 for information about getting these forms.
What, When, and Where To File
What return you must file as well as when and where you file that return, depends on your status at the end of the tax year
as a resident or a
nonresident alien.
Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. The due date
for filing the return
and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later).
Under U.S. immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do
so may be regarded as
having abandoned status and may lose permanent resident status.
Extensions of time to file.
You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in
are outside the United States and
Puerto Rico on April 15. You can get an extension of time to October 15 to file your return if you get an extension by April
15 (June 15 if you
qualify for the June 15 extension). Use Form 4868 to get the extension to October 15. In addition to this 6-month extension,
taxpayers who are out of
the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to
file their returns (to
December 15 for calendar year taxpayers). To request this extension, you must send the IRS a letter explaining the reasons
why you need the additional
2 months. Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
You will not receive any notification from the IRS unless your request is denied for being untimely.
The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time
to file on Form 2350 (for U.S.
citizens and resident aliens abroad who expect to qualify for special tax treatment).
If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday,
Sunday, or legal
holiday.
You may be able to file your return electronically. See IRS e-file in your form instructions.
Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ.
If you are any of the following, you must file a return.
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A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2007.
(But see
Exceptions, later.)
You must file even if:
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Your income did not come from a trade or business conducted in the United States,
-
You have no income from U.S. sources, or
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Your income is exempt from income tax.
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A nonresident alien individual not engaged in a trade or business in the United States with U.S. income on which the tax liability
was not
satisfied by the withholding of tax at the source.
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A representative or agent responsible for filing the return of an individual described in (1) or (2).
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A fiduciary for a nonresident alien estate or trust.
You must also file if you want to:
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Claim a refund of overwithheld or overpaid tax, or
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Claim the benefit of any deductions or credits. For example, if you have no U.S. business activities but have income from
real property that
you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return
to take any allowable
deductions against that income. For information on what is timely, see When to file for deductions and credits under When To File,
later.
Exceptions.
You do not need to file Form 1040NR or Form 1040NR-EZ if:
-
Your only U.S. trade or business was the performance of personal services, and
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Your wages were less than $3,400, and
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You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source,
or to claim
income exempt or partly exempt by treaty, or
-
You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,”
“M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends,
etc.
Even if you have left the United States and filed a Form 1040-C, U.S. Departing Alien Income Tax Return, on departure, you
still must file an
annual U.S. income tax return. If you are married and both you and your spouse are required to file, you must each file a
separate return.
You can use Form 1040NR-EZ if all of the following conditions are met.
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You do not claim any dependents.
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You cannot be claimed as a dependent on someone else's U.S. tax return.
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If you were married, you cannot claim an exemption for your spouse.
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Your taxable income is less than $100,000.
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You are not claiming any itemized deductions (other than for state and local income taxes).
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Your only U.S. source income is from wages, salaries, tips, taxable refunds of state and local income taxes, and scholarship
or fellowship
grants. (If you had taxable interest or dividend income, you cannot use this form.)
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You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship
grants
excluded.
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You are not claiming any tax credits.
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This is not an “expatriation return.” See Expatriation Tax in chapter 4.
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The only taxes you owe are:
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The income tax from the Tax Table.
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The social security and Medicare tax from Form 4137 or Form 8919.
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You are not claiming a credit for excess social security and tier 1 RRTA tax withheld.
If you do not meet all of the above conditions, you must file Form 1040NR.
If you are an employee and you receive wages subject to U.S. income tax withholding, you will generally file by the 15th day
of the 4th month after
your tax year ends. If you file for the 2007 calendar year, your return is due April 15, 2008.
If you are not an employee who receives wages subject to U.S. income tax withholding, you must file by the 15th day of the
6th month after your tax
year ends. For the 2007 calendar year, file your return by June 16, 2008.
Extensions of time to file.
If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained
in the Form 4868 instructions.
For the 2007 calendar year, this will extend the due date to October 15, 2008 (December 15, 2008, if the regular due date
of your return is June 16,
2008). You must file the extension by the regular due date of your return.
In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States
and Puerto Rico and who
live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December
15 for calendar year
taxpayers). To request this extension, you must send the IRS a letter explaining the reasons why you need the additional two
months. Send the letter
by the extended due date (October 15 for calendar year taxpayers) to the following address:
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
You will not receive any notification from the IRS unless your request is denied for being untimely.
When to file for deductions and credits.
To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. For this
purpose, a return is timely if
it is filed within 16 months of the due date just discussed. However, if you did not file a 2006 tax return and 2007 is not
the first year for which
you are required to file one, your 2007 return is timely for this purpose if it is filed by the earlier of:
-
The date that is 16 months after the due date for filing your 2007 return, or
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The date the IRS notifies you that your 2007 return has not been filed and that you cannot claim certain deductions and credits.
The allowance of the following credits is not affected by this time requirement.
-
Credit for withheld taxes.
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Credit for excise tax on certain uses of gasoline and special fuels.
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Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed
long-term
capital gains.
Protective return.
If your activities in the United States were limited and you do not believe that you had any gross income effectively
connected with a U.S. trade
or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. By filing a protective
return, you
protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of
your income is effectively
connected. You are not required to report any effectively connected income or any deductions on the protective return, but
you must give the reason
the return is being filed.
If you believe some of your activities resulted in effectively connected income, file your return reporting that income
and related deductions by
the regular due date. To protect your right to claim deductions or credits resulting from other activities, attach a statement
to that return
explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities
produced
effectively connected income.
You can follow the same procedure if you believe you have no U.S. tax liability because of a U.S. tax treaty. Be sure
to also complete items L and
M on page 5 of Form 1040NR.
Waiver of filing deadline.
The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably
and in good faith in
failing to file a U.S. income tax return (including a protective return) and you cooperate with the IRS in determining your
U.S. income tax liability
for the tax year for which you did not file a return.
File Form 1040NR-EZ and Form 1040NR at the following address.
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
Aliens from the U.S. Virgin Islands.
If you are a bona fide resident of the U.S. Virgin Islands during your entire tax year and work temporarily in the United
States, you must pay your
income taxes to the U.S. Virgin Islands and file your income tax returns at the following address.
Virgin Islands Bureau of Internal Revenue
9601 Estate Thomas
Charlotte Amalie
St. Thomas, VI 00802
Report all income from U.S. sources, as well as income from other sources, on your return. For information on filing
U.S. Virgin Islands returns,
contact the U.S. Virgin Islands Bureau of Internal Revenue.
Chapter 8 discusses withholding from U.S. wages of U.S. Virgin Islanders.
Aliens from Guam or the Commonwealth of the Northern Mariana Islands.
If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire
tax year, you must file your
return and pay any tax due to Guam or the CNMI. Report all income, including income from U.S. sources, on your return. It
is not necessary to file a
separate U.S. income tax return.
Bona fide residents of Guam should file their Guam returns at the following address.
Department of Revenue and Taxation
Government of Guam
P.O. Box 23607
GMF, GU 96921
Bona fide residents of the CNMI should file their CNMI income tax returns at the following address.
Department of Revenue and Taxation
Commonwealth of the Northern Mariana Islands
P.O. Box 5234 CHRB
Saipan, MP 96950
If you are not a bona fide resident of Guam or the CNMI, see Pub. 570, Tax Guide for Individuals With Income From
U.S. Possessions, for information
on where to file your return.
The law provides penalties for failure to file returns or pay taxes as required.
If you do not file your return and pay your tax by the due date, you may have to pay a penalty. You may also have to pay a
penalty if you
substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number.
If you provide fraudulent
information on your return, you may have to pay a civil fraud penalty.
Filing late.
If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty.
The penalty is based on the
tax not paid by the due date (without regard to extensions). The penalty is usually 5% for each month or part of a month that
a return is late, but
not more than 25%.
Fraud.
If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is
late, up to a maximum of 75%.
Return over 60 days late.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller
of $100 or 100% of the unpaid
tax.
Exception.
You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not
because of willful neglect.
Paying tax late.
You will have to pay a failure-to-pay penalty of ½ of 1% (.50%) of your unpaid taxes for each month, or part of a
month, after the
due date that the tax is not paid. This penalty does not apply during the automatic 6-month extension of time to file period,
if you paid at least 90%
of your actual tax liability on or before the due date of your return and pay the balance when you file the return.
The monthly rate of the failure-to-pay penalty is half the usual rate (.25% instead of .50%) if an installment agreement
is in effect for that
month. You must have filed your return by the due date (including extensions) to qualify for this reduced penalty.
If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at
least 10 days after the day that
the notice is issued. If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of
the first month beginning
after the day that the notice and demand is issued.
This penalty cannot be more than 25% of your unpaid tax. You will not have to pay the penalty if you can show that
you had a good reason for not
paying your tax on time.
Combined penalties.
If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5%
(or 15%) failure-to-file penalty
is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended
due date, the minimum
penalty is the smaller of $100 or 100% of the unpaid tax.
Accuracy-related penalty.
You may have to pay an accuracy-related penalty if you underpay your tax because:
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You show “negligence” or “disregard” of rules or regulations, or
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You substantially understate your income tax.
The penalty is equal to 20% of the underpayment. The penalty will not be figured on any part of an underpayment on which the
fraud penalty
(discussed later) is charged.
Negligence or disregard.
The term “ negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care
in preparing a return. Negligence also includes failure to keep adequate books and records. You will not have to pay a negligence
penalty if you have
a reasonable basis for a position you took.
The term “ disregard” includes any careless, reckless, or intentional disregard.
Adequate disclosure.
You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position
that has at least a reasonable
basis. See Disclosure statement, later.
This exception will not apply to an item that is attributable to a tax shelter. In addition, it will not apply if
you fail to keep adequate books
and records, or substantiate items properly.
Substantial understatement of income tax.
You understate your tax if the tax shown on your return is less than the correct tax. The understatement is substantial
if it is more than the
larger of 10% of the correct tax or $5,000. However, the amount of the understatement is reduced to the extent the understatement
is due to:
-
Substantial authority, or
-
Adequate disclosure and a reasonable basis.
If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. However,
there is a reduction for a
position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not
the proper treatment.
Substantial authority.
Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances.
Consideration will be given
to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the
IRS and published in the
Internal Revenue Bulletin that involve the same or similar circumstances as yours.
Disclosure statement.
To adequately disclose the relevant facts about your tax treatment of an item, use
Form 8275, Disclosure Statement. You must also have a reasonable basis for treating the item the way you did.
In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2008-14, 2008-7
IRB 435 (or later update) are
considered adequately disclosed on your return without filing Form 8275.
Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations.
Reasonable cause.
You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. You
must also show that you acted
in good faith.
Filing erroneous claim for refund or credit.
You may have to pay a penalty if, after May 25, 2007, you file an erroneous claim for refund or credit. The penalty
is equal to 20% of the
disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. The penalty will not
be figured on any part of
the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties
are charged.
Frivolous tax submission.
You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. A frivolous
tax return is one that does
not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported
is substantially
incorrect. For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as
frivolous, see:
-
Notice 2008-14, 2008-4 IRB 310 for submissions made and issues raised after January 14, 2008, and
-
Notice 2007-30, 2007-14 IRB 883 for submissions made and issues raised between March 16, 2007, and January 14, 2008.
You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a
desire to delay or interfere
with the administration of federal tax laws. This includes altering or striking out the preprinted language above the space
provided for your
signature.
This penalty is added to any other penalty provided by law.
Fraud.
If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud
will be added to your tax.
Failure to supply taxpayer identification number.
If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the
SSN or ITIN of another person
where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. You will
also be subject to a
penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other
document.
For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. The number
must be shown on the Form
1099-INT or other statement the bank sends you. If you do not give the bank your SSN or ITIN, you will be subject to the $50
penalty. (You also may be
subject to “ backup” withholding of income tax.)
You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not
willful neglect.
You may be subject to criminal prosecution (brought to trial) for actions such as:
-
Tax evasion,
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Willful failure to file a return, supply information, or pay any tax due,
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Fraud and false statements, or
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Preparing and filing a fraudulent return.
Amended Returns and Claims for Refund
If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U.S. Individual
Income Tax Return.
Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa.
If you amend Form 1040NR
or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc.) to Form 1040X. Print
“Amended” across
the top. Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed
or within 2 years from the
time the tax was paid, whichever is later. A return filed before the final due date is considered to have been filed on the
due date.
Transportation of Currency or Monetary Instruments
FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments,
must be filed by each
person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or
other monetary instruments
in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into
the United States from any
place outside the United States. The filing requirement also applies to each person who receives in the United States currency
or monetary instruments
totaling more than $10,000 at one time from any place outside of the United States.
The term “monetary instruments” means the following:
-
Coin and currency of the United States or of any other country,
-
Travelers' checks in any form,
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Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery,
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Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction,
made out to a
fictitious payee, or otherwise in such form that title to them passes upon delivery, and
-
Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted.
However, the term does not include:
A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of
currency or bearer
monetary instruments is not required to be reported on FinCEN Form 105.
Filing requirements.
FinCEN Form 105 filing requirements follow.
Recipients.
Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within
15 days after receipt, with
the Customs officer in charge at any port of entry or departure, or by mail to the following address.
Commissioner of Customs
Attention: Currency Transportation Reports
Washington, DC 20229
Shippers or mailers.
If the currency or other monetary instrument does not accompany the person entering or departing the United States,
FinCEN Form 105 can be filed by
mail at the above address on or before the date of entry, departure, mailing, or shipping.
Travelers.
Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure,
when entering or departing the
United States.
Penalties.
Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions
or misstatements, or filing a
false or fraudulent report. Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture.
More information.
More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form.
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