2003 Guide to Free Tax Services 1

The IRS Mission..............................................2

Free Tax Services............................................2

• IRS Web site.............................................................2

• IRS Tax Fax...............................................................3

• IRS CD-ROM.............................................................3

• IRS Partnership Programs........................................3

• Braille Tax Material....................................................3

• E-News Subscription Services..................................3

Taxpayer Advocate Service.................................4

Office of the Privacy Advocate............................4

Taxpayer Education and Assistance Programs..........5

• Volunteer Income Tax Assistance (VITA)..................5

• Tax Counseling for the Elderly (TCE)........................5

• Low-Income Taxpayer Clinics (LITC) Grant 

Program...............................................................5

• Taxpayer Education Programs..................................6

• Community Outreach Tax Education.........................6

• Tax Information for Students....................................6

• Practitioner Education...............................................6

IRS Teletax - Recorded Information by phone...........7

Explore IRS e-file............................................................7

• Millions Eligible for Free File.....................................7

• Electronic Federal Tax Payment 

System (EFTPS)........................................................7

Copies or Transcripts of Prior Year Returns.............8

• Requesting Documents.............................................8

• Tax Return Transcript................................................9

• Tax Account Transcript.............................................9

• Photocopies of Tax Returns......................................9

Installment Plan to Pay Your Taxes.......................9

Small Business Tax Workshops............................9

• Small Business Newsletter........................................9

IRS Telephone Numbers ...................................10

• Toll-free Service......................................................10

• International Service................................................1

• Before You Call the IRS...........................................1

• Before You Hang Up................................................1

Tele Tax Topic Menu Numbers........................12-13

Tax Publications.........................................14-2

Index of Topics and Related Publications..........22-39

Contents
Free Tax Services

The Internal Revenue Service produces

and provides publications, forms and other

tax material and information to help

taxpayers meet their tax responsibilities.

Material is available by phone or mail, at

local IRS offices and other community

locations. Most material can also be

obtained via the Internet, by fax machine,

and on CD-ROM.

IRS website:

www.irs.gov – This is the BEST place to

get information on how to interact with the

IRS electronically. The website includes

information on electronic filing (e-file) and

paying options for individuals and

businesses, and provides all the

information you need to get started. 

In addition, you will find tax forms and

publications, instructions, where to file

addresses, the latest tax law changes,

specific tax information for individuals and

businesses, information on tax refunds, enews subscriptions and much more.

There are also special information sections

like – “Where’s My Refund?” and “Your

2003 Advance Child Tax Credit”. The

website is available 24 hours a day, 7 days

a week.

IRS Tax Fax: 

To get a faxed index of nearly 100

frequently requested IRS tax forms, dial

(703) 368-9694 from a fax machine.

Follow the voice prompts and key in your

response. You can select up to three (3)

items to order during a single call. The

forms are generally available for fax

transmission at all times. Your order will

be faxed back to you through your fax

machine.

“Provide America’s taxpayers top quality service

by helping them understand and meet their tax

responsibilities and by applying the tax law with

integrity and fairness to all.”

The IRS Mission

PUBLICATION 910 - IRS Guide to Free Tax Services

The IRS Guide to Free Tax Services identifies the many IRS tax

material and services available to you, and how, when, and where 

you can get them. Most material and programs are free and most 

are available year-round through the IRS. Internet, telephone and 

fax services and tax tips are covered in this Guide. You will also find

recorded tax information and automated refund information. 

2
2003 Guide to Free Tax Services 3

IRS CD-ROM:

• Publication 1796, Federal Tax 

Products on CD-ROM, contains of 

current and prior year tax publications 

and forms and can be purchased from 

the National Technical 

Information Service (NTIS). 

Order by calling toll free (877) 233-

6767 {(877) CDFORMS} or via the 

Internet at www.irs.gov. (There is a 

fee for this item. It costs less when 

ordered through the Internet.)

• Publication 3207, Small Business 

Resource Guide CD. This CD contains 

information on electronic filing and 

paying options, how to prepare a 

business plan, finding financing for 

your business, all of the business tax 

forms, instructions and publications 

needed by small business owners and 

much more. Order via the Internet at 

www.IRS.gov/smallbiz or by calling 

(800) 829-3676.

IRS Partnership Programs:

Places where you can get IRS tax material.

You can always get tax material at

www.irs.gov and at most IRS offices, but

the IRS supplies federal tax material to

many public and private institutions to

offer easy availability for taxpayers. Some

places where you can find tax material are:

• Post Offices

• Libraries

• Copy Centers

• Your Company

• Your Credit Union

• Supermarkets and Grocery Stores

• Your City or County Government 

Offices

(Businesses that would like to participate

should call the IRS at (916) 636-7705.

Post offices and libraries, call (800) 829-

2765).

Remember, all IRS Tax Forms and

Publications are available 24 hours a day,

7 days a week through the IRS website,

www.irs.gov.

Braille Tax Material:

A variety of Braille tax products can be

ordered at no charge by calling the IRS at

(800) 829-3676. In addition, Braille tax

products are available for review at

Regional Libraries for the Visually

Impaired in conjunction with the National

Library Service for the Blind and Physically

Handicapped. These are limited to the

following products:

• Publication 17, “Your Federal Income 

Tax ”

• Publication 334, “Tax Guide for Small 

Business”

• Form 1040, “U.S. Individual Income 

Tax Return”

• Form 1040A, “U.S. Individual Tax 

Return”

• Form 1040EZ, “Income Tax Return for 

Single Filers and Joint Filers with No 

Dependents”

All of these products come with related

schedules, instructions and tax tables. You

can also download accessible products by

visiting the Accessibility section of the IRS

website at www.irs.gov.

E-News Subscription Services:

Free E-News Subscription Services are

available at www.irs.gov – click on

“newsroom”, then “IRS Subscriptions”.

You can elect to subscribe to any of the

electronic publications listed below.

IRS Digital Dispatch: The IRS Digital

Dispatch is our national list server. The

Digital Dispatch, a free service, provides

national tax news and information about

new developments on the IRS web site at

www.irs.gov.

e-News for Tax Professionals: E-News

for Tax Professionals is an electronic mail

service designed to provide localized,

targeted and immediate information for tax

professionals specifically for their clients’

states.

Quick Alerts e-file Messaging

System: Let Quick Alerts provide you

with first-hand knowledge of any

inadvertent IRS delays, the moment they

happen.

NOTE: In order to protect your privacy,

the e-mail addresses you furnish will

only be used to provide the subscriptions

you request and to make improvements

to this service. Your e-mail addresses

will not be sold, used, or shared for any

other purpose or with any other party.
4 2003 Guide to Free Tax Services

Employee Plans News: This newsletter

is issued quarterly during the year and

provides information about current

developments and upcoming events within

the retirement plan arena.

IRS Newswire: Subscribe to IRS

Newswire to get news releases via e-mail

from the National Media Relations Office.

IRS Tax Tips: Subscribe to Tax Tips to

get tax information via e-mail from the

IRS, daily during the tax-filing season and

periodically throughout the rest of the year.

Tax Stats Dispatch Mailing List: Get

announcements covering the most recent

tax statistics. 

Small Business/Self Employed

(SB/SE) Mailing List: The SB/SE

Mailing List is a nationwide list server and

provides information about IRS small

business and self-employed outreach

products and programs. To join the SB/SE

Mailing List go to www.IRS.gov/smallbiz

and click on “Join Mailing List”.

Subscribe to the FSLG Newsletter: A

publication of the Federal, State, & Local

Governments office of the Tax Exempt and

Government Entities Operating Division,

this newsletter is issued periodically

during the year and provides information

about current developments and upcoming

events of interest to government entities.

Taxpayer Advocate Service

If you have an ongoing tax issue with the

IRS that has not been resolved through

normal channels, you can contact the

Taxpayer Advocate Service for assistance.

The Taxpayer Advocate Service (TAS) is an

IRS program that provides an independent

system to assure that unresolved tax

problems are handled promptly and fairly.

Generally, the Taxpayer Advocate can help

if, as a result of the administration of the

tax laws, you:

• are suffering, or are about to suffer, a 

significant hardship

• are facing an immediate threat of 

adverse action (penalties, interest, 

liens)

• will incur significant costs (including 

fees for professional representation)

• will suffer irreparable injury or longterm adverse impact

• have experienced a delay of more than 

30 days to resolve an issue 

• have not received a response or 

resolution through normal channels by 

the date promised

Hardship situations and other issues that

are referred to the Taxpayer Advocate are

reviewed on the individual merits of each

case. It is important to remember that the

Taxpayer Advocate is not a substitute for

established IRS procedures or the formal

appeals process. The Taxpayer Advocate

cannot reverse legal or technical tax

determinations.

To reach a Taxpayer Advocate, call (877)

777-4778. You can also call the IRS at

(800) 829-1040 and ask for Taxpayer

Advocate assistance. 

Taxpayers who are either deaf and/or

hearing impaired and have access to

teletypewriter/telecommunication device

for the deaf (TTY/TDD) equipment can call

the IRS at (800) 829-4059 for assistance.

To hear more information about the

Taxpayer Advocate Service and for a list of

Taxpayer Advocate telephone numbers and

addresses, listen to TeleTax topic 104 (see

Table of Contents in this booklet for the

TeleTax page number), or call the IRS at

(800) 829-3676 for a copy of Publication

1546, The Taxpayer Advocate Service of

the Internal Revenue Service. You can

also download this publication from the

IRS website at www.irs.gov. 

Office of the Privacy

Advocate

The Office of the Privacy Advocate is here

to ensure that the personally identifiable

information you provide to the IRS is

protected. In addition, we review our

information systems regularly to certify

that they collect only the information we

need to do our jobs or to enable us to

respond to your requests for service. We

want taxpayers to remain confident in our

ability to protect personal information. 

You can be sure that the personal and tax
2003 Guide to Free Tax Services 5

information you give us is safe and that it

is used only for the purposes we identify

to you.

The IRS Privacy Advocate is here to help

you with any privacy concern. If there is

anything you wish to discuss with us, we

can be reached at our e-mail address:

privacy.advocate@irs.gov.

Taxpayer Education and

Assistance Programs

The IRS has programs that offer free

assistance with tax return preparation and

tax counseling using volunteers trained by

the IRS. For more information on the

times and locations of assistance or to

learn how to become a volunteer, call the

IRS at (800) 829-1040 or go to

www.irs.gov.

Volunteer Income Tax Assistance

(VITA)

The VITA Program offers free tax help to

people who cannot afford paid

professional assistance. Volunteers,

trained by the IRS, help prepare basic tax

returns for low-income taxpayers.

VITA sites are generally located at

community and neighborhood centers,

libraries, schools, shopping malls, and

other convenient locations. A number of

locations also offer free electronic filing.

Volunteers (which include college

students, law students, members of

professional business and accounting

organizations, and members of retirement,

religious, military, and community groups,

and others) can take part in various VITA

program activities including:

• preparing tax returns

• teaching taxpayers to prepare their 

own returns

• managing a VITA site

• arranging publicity

For more information about the VITA

Program, or to find the location of a VITA

site in your area, call the IRS at (800) 829-

1040.

Tax Counseling for the Elderly (TCE)

The TCE program provides free tax help to

people age 60 and older. Volunteers who

provide tax counseling are often retired

individuals associated with non-profit

organizations that receive grants from the

IRS. Grant funds are used to reimburse

volunteers for out-of-pocket expenses.

As part of the IRS-sponsored Tax

Counseling for the Elderly program, The

American Association of Retired Persons

(AARP) Foundation offers an AARP TaxAide counseling program at more than

10,000 sites nationwide during the filing

season. Trained with IRS material and

certified by an IRS examination, AARP TaxAide volunteer counselors can help with

most tax circumstances faced by low and

moderate-income taxpayers age 60 and

older. Younger taxpayers are helped as

counselor time permits.

To find an AARP Tax-Aide volunteer site in

your community, call (888) AARPNOW, or

from a computer, access the internet site

locator at www.aarp.org/taxaide/home.html

Low-Income Taxpayer Clinics (LITC)

Grant Program

The IRS LITC grant program, authorized

under the IRS Restructuring and Reform

Act of 1998, gives grants to organizations

that:

• provide legal assistance to low-income 

taxpayers who have a matter in 

controversy with the IRS

• inform individuals whose second 

language is English, of their tax rights 

and responsibilities

The grants are not available to individuals.

However, through this grant program, the

IRS awards qualifying organizations grants

of up to $100,000 per year to develop,

expand, and continue low-income taxpayer

clinics. The clinics are administered and

sponsored by accredited law, business,

and accounting schools where students

represent taxpayers in tax controversies

before the IRS or before the courts. 

If you wish to become a VITA volunteer:

The IRS provides VITA training material

and instructors. Training is conducted

at times and locations convenient for

volunteers and instructors. Generally,

these sessions are offered in December

through and January each year before

the actual filing season starts
6 2003 Guide to Free Tax Services

In addition, the clinics can be administered

and sponsored by non-profit organizations

that meet program requirements.

To learn more about the Low-Income

Taxpayer Clinics Grant Program, call the

IRS at (800) 829-3676 and order a free

copy of Publication 3319, LITC Grant

Application Package and Guidelines. Each

year, Publication 3319 is revised to provide

the current year application deadline date.

This product is also available on the IRS

website, www.irs.gov.

Taxpayer Education Programs

The IRS has year-round education

programs designed to help you understand

the tax laws and IRS procedures.

Volunteers trained by the IRS are an

important part of these programs. For

times and locations of the available

services in your community, or to become

a volunteer, call the IRS at (800) 829-1040

and ask for the SPEC Education

Coordinator.

Community Outreach Tax Education

Through this program, IRS staff or trained

volunteers will speak to groups of people

(retirees, farmers, small business owners,

and employees) with common tax

concerns. This program offers tax

seminars on various tax topics.

Outreach sessions can be co-sponsored by

community organizations and other

government agencies

Tax Information for Students

A new educational website called

Understanding Taxes is now on the

Internet. It is divided into two content

areas – the How’s of Taxes and the Why’s

of Taxes – Understanding Taxes is

designed to teach middle school and older

students about their federal tax rights and

responsibilities and the economics and

history on which our tax system is based.

To find this site, go to www.irs.gov, then

click Individuals, then Students, then

Understanding Taxes.

• Twelve tutorials will guide students 

through the basics of tax preparation, 

introducing them to the concept of 

filing their tax returns electronically. 

The student homepage offers links to 

36 student lessons, word puzzles, tax 

trivia questions, story problems, and 

real-life examples of how and why 

taxes affect and influence our daily 

lives.

• A teacher’s page includes 36 detailed 

lesson plans featuring both web-based 

and downloadable print (PDF) material, 

along with 75 interactive students’

activities, student assessments and 

PowerPoint presentations.

• Tax Interactive (TAXI) is an online 

learning lab designed for high school 

student and teacher use. Tax trivia 

and VITA e3 (a Volunteer Income Tax 

Assistance program emphasizing 

electronic filing for schools) are also 

found under the heading of “Cool Stuff”

on both the student and the teacher’s 

web pages.

Practitioner Education

Through this program, training is provided

to people who prepare tax returns and

counsel taxpayers for a fee. Classes are

held in every state bureau of revenue,

colleges, universities, and professional

accounting groups. Tax professional

institutes alert participants of the tax law

changes and work with participants to

improve the quality of return preparation to

reduce errors.
2003 Guide to Free Tax Services 7

(877) 829-4477

Recorded tax information on more than

150 subjects and refund information is

available 24 hours a day, 7 days a week.

This touch-tone service provides basic tax

information on the topics listed below.

For a directory of topics, listen to topic

123. You may listen to as many topics as

you like during the call. Have paper and

pencil ready to take notes. See pages 12 –

13 in this publication for a list of topics.

For refund information, have a copy of

your current tax return (Form 1040), your

Social Security Number (SSN) or the first

SSN that appears on a jointly filed tax

return, your filing status from the front of

your Form 1040 and the exact whole dollar

amount of your refund.

Explore IRS e-file

Join the 53 million taxpayers who filed

their tax returns electronically in 2003

using an IRS option. IRS e-file is the most

accurate, safest, and fastest way to file

your taxes. It offers a fast refund (twice as

fast as filing on paper, even faster with

Direct Deposit); a good possibility that the

return will be error-free; the opportunity to

file your federal and state returns at the

same time; privacy, security and proof

within 48 hours that your return has been

received by the IRS for processing. You

can even sign electronically. If you owe tax,

you can e-file and pay your taxes

electronically in a single step by

authorizing an electronic funds withdrawal

from your checking or savings account.

And you can even schedule your payment

for withdrawal up to and including the

return due date, April 15, 2004, or pay by

credit card. IRS e-file...a quick, easy,

smart way to get your taxes where you 

want them to be – Done! Check out the

IRS website at www.irs.gov for more

information on IRS e-file.

Here’s how you can use IRS e-file:

• Use an Authorized IRS e-file Provider

Look for an “Authorized IRS e-file 

Provider” sign. Our website, 

www.irs.gov/efile, contains a database 

of providers searchable by ZIP code. 

• Use a Personal Computer 

A computer with a modem or Internet 

access and tax preparation software 

are all you need. You can e-file your 

tax return from the comfort of your 

home 24 hours a day, 7 days a week. 

Best of all, you may qualify for Free 

File. See Free File Options below or 

visit www.irs.gov for details.

• Use a Touch-tone Telephone to TeleFile

If you are eligible to use TeleFile, the 

IRS automatically sends you a TeleFile 

tax package through the mail.

• IRS e-file through employers and 

financial Institutions

Some businesses offer free e-file to 

their employees, members, or 

customers. Ask your employer or 

financial institution if they offer IRS 

e-file as an employee, member, or 

customer benefit.

Millions Eligible for Free File

Introduced in 2003, Free File allows

qualified taxpayers to prepare and e-file

their own tax returns for free using

commercially available online tax

preparation software. In 2003, nearly 3

million Americans took advantage of Free

File. More than 60 percent of American

taxpayers - 78 million people - who file an

individual income tax return are eligible to

use Free File. Taxpayers can review online

tax software provider offerings and

determine if they are eligible by visiting the

Free File page.

Electronic Federal Tax Payment

System (EFTPS)

EFTPS is the easiest way to pay all your

federal taxes, and it’s free. With EFTPS

individuals and businesses can make tax

payments using the internet, or phone to

input all tax payment information. On the

date you select, you instruct EFTPS to

move the funds from your account to the

Treasury’s account. Funds will not move

from your account until the date you

select. No government agency has access

to your account, and your tax records will

be updated with the IRS. All EFTPS

payment methods are interchangeable.

Use EFTPS-Online to make a payment,

cancel a payment, review your payment

history, change bank account information

and more through the Internet. EFTPSOnline is easy to navigate and is secure

with both a personal identification number

(PIN) and internet password combination.

IRS TeleTax - Recorded

Information by phone
8 2003 Guide to Free Tax Services

EFTPS offers you total convenience. If you

choose to make your payments using

EFTPS, you can do so 24 hours a day, 7

days a week. As an added convenience

EFTPS offers payment scheduling.

Businesses can schedule payments up to

120 days in advance of the tax due date,

and individuals can schedule payments up

to 365 days, and EFTPS will automatically

make payments on the due date you

indicate. Remember that EFTPS allows

you to select how you want to make your

payments. You can choose EFTPS-Direct

or EFTPS-Through a Financial Institution.

If you decide to make payments using a

service offered by a financial institution,

you will instruct them to electronically

move funds from your account to the

Treasury’s account. Please check with

your financial institution first to learn if

they offer this service, if they charge a fee

and if you are eligible to use it. Not all

financial institutions offer this service. 

Tax practitioners, accountants and payroll

companies are discovering the added

benefits for using EFTPS. There are four

easy ways to make payments for your

business or clients.

• EFTPS-Online

Use the internet to make payments for 

your business or clients. Registration 

is not required for practitioners, 

however taxpayers must be enrolled. 

Visit www.eftps.gov

• EFTPS-Phone

Available to taxpayers or providers 

who wish to make debit payments 

using the telephone

• EFPTS-Batch Provider

Designed for payroll processors and 

others who wish to enroll their clients 

and submit batches of payments 

using Windows-based software

• EFTPS-Bulk Provider 

Designed for payroll processors who 

initiate frequent payments from and 

desire automated enrollment through 

an Electronic Data Interchange (EDI) 

compatible system.

When you use EFTPS, you are in control of

initiating your tax payments. If you would

like to enroll or need additional information

call EFTPS Customer Service or visit us

online at www.eftps.gov.

EFTPS Customer Service:

(800) 555-4477 or (800) 945-8400

(800) 945-8600 or (800) 244-4829

(Espanol)

(800) 945-8900 or (800) 733-4829

(TTY/TDD)

The IRS produces a number of print

materials that can provide you with

additional information on EFTPS. You can

order these forms and publications free

through the IRS Area Distribution Centers

by calling (800) 829-3676.

• Form 9779, Business Enrollment Form

• Form 9783, Individual Enrollment 

Form

• Publication 966, Electronic Choices to 

Pay All Your Federal Taxes

• Publication 3425, 4 Easy Ways to Use 

EFTPS, for Tax Professionals, 

Accountants, and Payroll Companies

• Publication 3806, The Easiest Way to 

Pay Your Federal Taxes for Individuals

Forms can also be downloaded from the

IRS Web site at www.irs.gov, and you can

also get some forms via the IRS Tax Fax

by dialing (703) 368-9694 from a fax

machine and following the voice prompts

to get tax forms faxed back to you

Copies or Transcripts of Prior

Year Tax Returns

You have two easy and convenient options

for requesting copies of your tax return

information from the IRS - by phone at

(800) 829-1040 or by mail using Form

4506/4506T, Request for Copy or

Transcript of Tax Form. You can request

the information you need using the option

that's most convenient for you. Three

different types of tax data are available -

tax return transcripts, tax account

transcripts, and photocopies of tax returns.

Copies are also available through your tax

preparer who is enrolled in IRS e-services.

Requesting Documents

You can get transcripts, Form W-2

information and verification of non-filing

by calling (800) 829-1040. Or, by

completing and mailing Form 4506T,

Request for Transcript of Tax Form. For

photocopies, use Form 4506, Request for

Copy of Tax Form. You can even direct the
2003 Guide to Free Tax Services 9

documents to a third party. Mail the

appropriate form to the address in the

instructions and, if ordering photocopies,

include payment. Call (800) TAX-FORM

{(800) 829-3676} to order the form by mail

or use the handset of a fax machine to dial

IRS TaxFax at (703) 368-9694 and have it

faxed. It is also on the IRS website in a

fill-in format at www.irs.gov.

Tax Return Transcript

A tax return transcript shows most line

items contained on the return (1040 series

only) as it was originally filed, including

any accompanying forms and schedules. It

does not reflect any changes made by you,

your tax representative or the IRS after the

return was filed. In many cases, a return

transcript will meet the requirements of

lending institutions, such as those offering

mortgages and student loans. Tax return

transcripts are available for the current and

three prior calendar years, are delivered in

approximately two weeks and are provided

free of charge.

Tax Account Transcript

A tax account transcript includes any later

adjustments either you or the IRS made

after the tax return was filed. This

transcript shows basic data, including

marital status, type of return filed, adjusted

gross income and taxable income. Tax

account transcripts are delivered by mail in

approximately two weeks and are provided

free of charge.

Photocopies of Tax Returns

When you need a copy of a tax return

because a transcript does not meet your

needs, the IRS can provide one for a fee of

$39 for each tax year requested. You

should wait at least six weeks after filing a

current return before requesting copies.

Copies are generally available for returns

filed in the current and past six years. Tax

forms filed more than 6 years ago may not

be available for making photocopies.

However, tax account transcripts are

generally still available for these periods.

Certified photocopies for court or

administrative proceedings are also

available on request. Allow at least 60 days

from IRS receipt for delivery.

An Installment Plan to Pay

Your Taxes

If you are not able to pay all your federal

taxes by April 15, a monthly payment plan

may be the answer. The process isn't

automatic and there may be alternatives,

but if you are eligible, this could be the

solution that makes paying taxes easier.

Apply for a payment plan by completing

Form 9465, Installment Agreement

Request. This form also has details about

eligibility requirements. 

Generally, you may have up to 60 months

to pay, but paying the full amount as soon

as possible will save you money in

penalties and interest. The late payment

penalty is usually 0.5 percent a month,

every month, up to 25 percent of the tax

owed. Interest rates vary because they are

set quarterly. The current interest rate is 4

percent per year, compounded daily.

Interest and penalties are figured on the

declining monthly balance throughout the

life of the payment plan. There is also a

$43 set-up fee for an installment

agreement, which is taken from your first

payment under the plan. Do not send the

$43 with Form 9465.

Small Business Tax

Workshops

Small business owners can learn more

about their tax responsibilities by making

use of free IRS Tax Workshops. There are

several options available:

• Attend a live workshop coordinated by 

one of our partner organizations.

• Take a workshop online, 24/7, through 

a self-directed e-learning workshop 

that uses the same material as the live 

workshop, or through a streaming 

video workshop.

• Take a workshop off-line using IRS 

Publication 3700, A Virtual Small 

Business Workshop, on CD-ROM; 

Publication 3693, Introduction to 

Federal Taxes, on CD-ROM; or 

Publication 1066, Small Business Tax 

Workshop Workbook. 

You can view these workshops or order

the CD-ROMs via the internet at

www.irs.gov/smallbiz.

Small Business Newsletter

The SSA/IRS Reporter is a quarterly

newsletter that keeps you up to date on

changes to taxes and employee wage

obligations. This newsletter, produced

jointly by the Social Security

Administration and the IRS, is mailed to

approximately seven million employers

along with each quarterly Form 941,

Employer’s Quarterly Federal Tax Return.

You can also download a copy of the

newsletter from www.IRS.gov.
10 2003 Guide to Free Tax Services

Toll-free Service

IRS toll-free Tax Assistance

(in English and Spanish)........................................(800) 829 -1040

Monday through Friday, 7:00 a.m. until 10:00 p.m., Saturday from

10:00 a.m. until 3:00 p.m. (Alaska and Hawaii hours are 10:00

a.m. until 3:00 p.m. Pacific Time)

Order Tax Forms and Material..............................(800) 829-3676

IRS Partnership Program......................................(916) 636-7705

Post offices and libraries....................................(800) 829-2756

Businesses that would like to participate in the IRS Partnership

program can call the IRS or apply online at www.IRS.gov

(special phone number for Post Offices and libraries).

IRS Business & Specialty Help Line.....................(800) 829-4933

Business taxpayers that have questions relating to their entity can

call the IRS at for business and specialty help (in English and

Spanish). Available Monday through Friday, 7:00 a.m. to 10:00

p.m.

Employer Identification Number...........................(800) 829-4933

Call IRS to apply for an Employer Identification Number (EIN).

IRS Refund Hotline................................................(800) 829-1954

For refund information, have a copy of your current tax return,

your social security number, filing status from the front of your

form 1040 and the exact whole dollar amount of your refund.

TTY/TDD Telephone Service..................................(800) 829-4059

Available for the deaf and hearing-impaired who have access to a

teletypewriter/telecommunications device for the deaf (TTY/TDD)

equipment. Note: This number is answered only by TTY/TDD

equipment.

Tax Help for US Taxpayers residing in Cana........(215) 516-2000

IRS Taxpayer Advocate.........................................(877) 777-4778

International Service

Taxpayers In the United States...............................(800) 829-1040

Call for assistance Monday through Friday from 7:00 a.m. until

10:00 p.m. From January 2, 2004 through April 16, 2004, 

Saturday service will also be available from 9:00 a.m. until to 5:00

p.m. Callers from Alaska and Hawaii will be assisted during the

same hours of operation as in the Pacific Time zone.

Taxpayers calling from outside the 

United States..........................................................(215) 516-2000

FAX...........................(215) 516-2555

IRS will answer your tax questions and help with account

problems at our Philadelphia IRS office. The Philadelphia office

provides telephone assistance Monday through Friday from 6:00

a.m. until 2:00 a.m. Eastern time. Call or fax your questions to at

(non toll-free numbers).

Questions concerning Individual Taxpayer Identification 

Numbers (ITIN)......................................................(215) 516-4846

FAX...........................(215) 516-1171

(non toll-free numbers)

You can phone, write or visit one of our overseas offices. Just be

sure to have a copy of last year’s tax return, your wage and

income statements, and your other tax records with you.

Traveling IRS tax assistors will visit foreign cities during the 2004

filing season. Call your local U.S. embassy or consulate, or visit

on of our offices to find out the dates, time and locations for

assistance. The phone numbers are listed in the following listing:

Berlin, Germany.............(outside Germany) 49-30-8305-11361140

(within Germany) 030-8305-11361140

London, England..................................................44-20-7408-8077

Paris, France..........................................................33-1-4312-2555

Rome, Italy...........................................................39-06-4674-2560

Tokyo, Japan..................................(International) 81-3-3224-5466

(Local) 03-3224-5466

Fax: (International) 81-3-3224-5274

Fax: (Local) 03-3224-5274

Taxpayers residing overseas with technical 

account questions...........................................Fax: (215) 516-2555

Or write: Internal Revenue Service

P.O. Box 920, International Section

Bensalem, PA 19020-8518

IRS Tax Fax (International)

San Juan, Puerto Rico............................................(787) 759-4524

Tokyo, Japan..................................(International) 81-3-3224-5465

(Local) 30-3224-5465

You can obtain tax forms and other tax information through the

Tax Fax system 24 hours a day, seven days a week. From a fax

machine, dial the fax number and follow the voice prompts.

IRS Telephone Numbers
2003 Guide to Free Tax Services 11

Before You Call the IRS

We will be able to provide you with more accurate and complete

answers to your tax questions if you have the following

information available: the tax form, schedule, or notice to which

your question relates, the facts about your particular situation and

the name of any IRS publication or other source of information

that you used to look for the answer. (The answer to the same

question often varies from one taxpayer to another because of

differences in their age, income, or whether they can be claimed

as a dependent, etc.)

To protect and maintain your individual account security, you will

also be asked for your Social Security Number (SSN), date of

birth, or IRS Personal Identification Number (PIN) if you have

one. You will also need to provide the amount of your refund, the

filing status shown on your tax return, the “caller ID number”

shown at the top of any notice you received and the numbers in

your street address, or your ZIP code.

If you are asking for an installment agreement to pay your tax,

you will be asked for the highest amount you can pay each month

and the date on which you can pay it.

Before You Hang Up

If you do not fully understand the answer to your question, or you

feel the IRS representative did not fully understand the question,

please tell the representative. The representative will be happy to

take additional time to be sure he or she has answered your

question fully.

By law, you are responsible for paying your fair share of federal

income tax. If we should make an error in answering your

question, you are still responsible for the payment of the correct

tax. You will not be charged any penalty due to an IRS error.

The IRS uses different methods to evaluate the quality of our

telephone service. To make sure that IRS representatives give

accurate and courteous answers, a second IRS representative

sometimes listens in or the call may be recorded. Some callers

are asked to complete a short survey at the end of the call.
12 2003 Guide to Free Tax Services

IRS Help Available

01 IRS services - Volunteer tax 

assistance, toll-free telephone, 

walk-in assistance, and outreach 

programs

102 Tax assistance for individuals with 

disabilities and the hearing impaired

103 Intro to Federal taxes for small 

business/self-employed

104 Taxpayer Advocate Program - Help 

for problem situations

105 Public libraries - Tax information 

tapes and reproducible tax forms

IRS Procedures

151 Your appeal rights

152 Refunds - How long they should 

take

153 What to do if you haven’t filed your 

tax return (Non-filers) 

154 Form W-2 - What to do if not 

received

155 Forms and publications - How to 

get

156 Copy of your tax return - How to 

get one

157 Change of address - How to notify 

the IRS

158 Ensuring proper credit of 

payments

Collection

201 The collection process

202 What to do if you can’t pay your tax

203 Failure to pay child support, federal 

non-tax obligations and state 

income tax

204 Offers in compromise

205 Innocent spouse relief 

Alternative Filing Methods

251 Signing your return with a selfselected PIN

252 Electronic filing

253 Substitute tax forms

254 How to choose a paid tax preparer

255 TeleFile

General Information

301 When, where, and how to file

302 Highlights of tax changes

303 Checklist of common errors when 

preparing your tax return

304 Extensions of time to file your tax 

return

305 Recordkeeping

306 Penalty for underpayment of 

estimated tax

307 Backup withholding

308 Amended returns

309 Roth IRA contributions

310 Coverdell education saving account

311 Power of attorney information

Filing Requirements, Filing Status

and Exemptions

351 Who must file?

352 Which form - 1040, 1040A, or 

1040EZ?

353 What is your filing status?

354 Dependents

355 Estimated tax

356 Decedents

Types of Income

401 Wages and salaries

402 Tips

403 Interest received

404 Dividends

405 Refunds of state and local taxes

406 Alimony received

407 Business income

408 Sole proprietorship

409 Capital gains and losses

410 Pensions and annuities

411 Pensions - The general rule and the 

simplified method

412 Lump-sum distributions

413 Rollovers from retirement plans

414 Rental income and expenses

415 Renting vacation property and 

renting to relatives

416 Farming and fishing income

417 Earnings for clergy

418 Unemployment compensation

419 Gambling income and expenses

420 Bartering income

421 Scholarship and fellowship grants

422 Nontaxable income

423 Social security and equivalent 

railroad retirement benefits

424 401(k) plans

425 Passive activities - Losses and 

credits

426 Other income

427 Stock options

428 Roth IRA distributions 

429 Traders

430 Demutualization

431 Sale of assets held-for more than 5 

years

Adjustments to Income

451 Individual retirement arrangements 

(IRAs)

452 Alimony paid

453 Bad debt deduction

454 Tax shelters

455 Moving expenses

456 Student loan interest deduction

457 Deduction for higher education 

expenses

Itemized Deductions

501 Should I itemize? 

Menu #s Subject Menu #s Subject

TeleTax Topic Menu Numbers

Menu #s Subject
2003 Guide to Free Tax Services 13

502 Medical and dental expenses

503 Deductible taxes

504 Home mortgage points

505 Interest expense

506 Contributions

507 Casualty and theft losses

508 Miscellaneous expenses

509 Business use of home

510 Business use of car

511 Business travel expenses

512 Business entertainment expenses

513 Educational expenses

514 Employee business expenses

515 Disaster area losses 

Tax Computation

551 Standard deduction

552 Tax and credits figured by the IRS

553 Tax on a child’s investment 

income

554 Self-employment tax

555 Ten-year tax option for lump-sum 

distributions

556 Alternative minimum tax

557 Tax on early distributions from 

traditional and Roth IRAs

558 Tax on early distributions from 

retirement plans

Tax Credits

601 Earned Income Credit (EIC)

602 Child and dependent care credit

603 Credit for the elderly or the disabled

604 Advance earned income credit

605 Education credits

606 Child tax credits

607 Adoption credit

608 Excess social security and RRTA tax 

withheld

609 Rate reduction credit

IRS Notices

651 Notices - what to do

652 Notice of under reported income - 

CP 2000

653 IRS notices and bills, and penalties 

and interest charges

Basis of Assets, Depreciation, and 

Sale of Assets

701 Sale of your home

703 Basis of assets

704 Depreciation

705 Installment sales

Employer Tax Information

751 Social security and Medicare 

withholding rates

752 Form W-2 - Where, when, and how 

to file

753 Form W-4 - Employee’s withholding 

allowance certificate

754 Form W-5 - Advance earned 

income credit 

755 Employer Identification Number 

(EIN) - How to apply

756 Employment taxes for household 

employees

757 Form 941 - Deposit requirements

758 Form 941 - Employer’s quarterly 

federal tax return

759 Form 940 and 940-EZ - Deposit 

requirements

760 Form 940 and 940-EZ -Employer’s 

Annual Federal Unemployment Tax 

Returns

761 Tips - Withholding and reporting

762 Independent contractor vs 

employee

Magnetic Media Filers -

1099 Series and Related 

Information Returns

801 Who must file magnetically

802 Applications, forms, and 

information

803 Waivers and extensions

804 Test files and combined federal and 

state filing

805 Electronic filing of information 

returns

Tax Information for Aliens and 

U.S. Citizens Living Abroad

851 Resident and nonresident aliens

852 Dual-status alien 

853 Foreign earned income exclusion 

- General

854 Foreign earned income exclusion 

- Who qualifies?

855 Foreign earned income exclusion 

- What qualifies?

856 Foreign tax credit

857 IRS Individual Taxpayer 

Identification Number - Form W-7

858 Alien tax clearance

Tax Information for Puerto Rico 

Residents (in Spanish)

901 Who must file a U.S. income tax 

return in Puerto Rico

902 Deductions and credits for Puerto 

Rico filers

903 Federal employment taxes in 

Puerto Rico

904 Tax assistance for Puerto Rico 

residents 

Menu #s Subject Menu #s Subject Menu #s Subject
14 2003 Guide to Free Tax Services

Pub 1, Your Rights as a Taxpayer —

explains some of your most important

rights as a taxpayer. It also explains the

examination, appeal, collection, and refund

processes. To ensure that you always

receive fair treatment in tax matters, you

should know what your rights are. 

Pub 1SP, Derechos del Contribuyente

(Your Rights as a Taxpayer) — Publication

1 in Spanish.

Pub 3, Armed Forces’ Tax Guide —

gives information about the special 

tax situations of active members of the

Armed Forces. This publication contains

information on items that are included in

and excluded from gross income, combat

zone exclusion, alien status, dependency

exemptions, sale of residence, itemized

deductions, tax liability, extension of

deadline, and filing returns. 

Forms 1040, 1040A, 1040EZ, 1040NR,

1040X, 1310, 2106, 2688, 2848, 3903,

4868, 8822, 9465, W-2.

Pub 15, Circular E, Employer’s Tax Guide

—Forms 940, 941.

Pub 15-A, Employer’s Supplemental Tax

Guide 

Pub 15-B, Employer’s Tax Guide to Fringe

Benefits

Pub 17, Your Federal Income Tax (For

Individuals) — can help you prepare your

individual tax return. This publication takes

you step-by-step through each part of the

return. It explains the tax law in a way that

will help you better understand your taxes

so that you pay only as much as you owe

and no more. This publication also

includes information on various kinds of

credits you may be able to take to reduce

your tax. (Note to Tax Professionals only:

There is a fee to order this publication.)

Forms 1040 (Schedules A, B, D, E, EIC,

R), 1040A, 1040EZ, 2106, 2119, 2441,

3903, W-2. 

Pub 51, Circular A, Agricultural

Employer’s Tax Guide — Form 943.

Pub 54, Tax Guide for U.S. Citizens and

Resident Aliens Abroad — explains the

special tax rules for U.S. citizens and

resident aliens who live and work abroad

or who have income earned in foreign

countries. In particular, this publication

explains the rules for excluding income

and excluding or deducting certain

housing costs. 

Forms 1040, 1116, 2555, 2555-EZ.

Pub 80, Circular SS, Federal Tax Guide

for Employers in the Virgin Islands,

Guam, American Samoa, and the

Commonwealth of the Northern Mariana

Islands — Forms 940, 941SS, 943.

Pub 179, Guía Contributiva Federal Para

Patronos Puertorriqueños (Circular PR)

(Federal Tax Guide for Employers in Puerto

Rico) — in Spanish.

Forms 940PR, 941PR, 943PR, W-3PR.

Pub 225, Farmer’s Tax Guide — explains

how the federal tax laws apply to farming,

incuding the kind of farm income you must

report and the different deductions you can

take.

Forms 1040 (Schedules D, F, J, SE),

4562, 4684, 4797.

Pub 334, Tax Guide for Small Business

(For Individuals Who Use Schedule C or

C-EZ) — explains federal tax laws that

applies to sole proprietors and statutory

employees. (Note to Tax Professionals

only: There is a fee for this publication.)

Forms 1040 (Schedule C, C-EZ, SE),

4562.

Pub 378, Fuel Tax Credits and Refunds—

explains the credit or refund of the federal

excise taxes on certain fuels that you may

claim. Also discusses the alcohol fuel

credit.

Forms 720, 4136, 6478, 8849.

Pub 463, Travel, Entertainment, Gift,

and Car Expenses — identifies businessrelated travel, entertainment, gift, and

transportation expenses that may be

deductible.

Forms 2106, 2106EZ.

Pub 501, Exemptions, Standard

Deduction, and Filing Information —

explains the rules for determining who

must file a federal income tax return, what

filing status to use, how many exemptions

to claim and who cannot take the standard

deduction.

Forms 2120, 8332.

Pub 502, Medical and Dental Expenses

— explains which medical and dental

expenses are deductible, how to deduct

Tax Publications

IRS Publication, Your Rights as a Taxpayer, and 1SP, Derechos del Contribuyente, 

highlight some of the most important rights. You can download these publications 

from the IRS website at www.irs.gov or order the paper document from the IRS by 

calling (800)-829-3676.

Publication 553, Highlights of 2003 Tax Changes, is a collection of the latest tax law 

changes that can affect your tax situation in the 2004 filing season. You can 

download Publication 553 and nearly 100 other tax publications listed in this booklet 

from the IRS website at www.irs.gov. You can request a free copy of any IRS tax 

publication by calling the IRS at (800)-829-3676.
2003 Guide to Free Tax Services 15

them, and how to treat insurance

reimbursements you may receive for

medical care.

Form 1040 (Schedule A).

Pub 503, Child and Dependent Care

Expenses — explains how you may be

able to claim a credit if you pay someone

to care for your dependent who is under

age 13, or your spouse or dependent who

is unable to care for himself or herself. Tax

rules covering dependent care benefits

from your employer are also explained.

See Publication 926 for information on the

employment taxes you may have to pay if

you are a household employer.

Forms 1040A (Schedule 2), 2441.

Pub 504, Divorced or Separated

Individuals — Form 8332.

Pub 505, Tax Withholding and 

Estimated Tax — Forms 1040-ES, 2210, 

2210F, W-4, W-4P, W-4S, W-4V.

Pub 509, Tax Calendars for 2004

Pub 510, Excise Taxes for 2004 — covers

in detail the various federal excise taxes

reported on Form 720. These include

environmental taxes; communications and

air transportation taxes; fuel taxes;

manufacturers taxes; tax on heavy trucks,

trailers, and tractors; and the ship

passenger tax. This publication also

provides information on wagering activities

reported on Form 11-C and 730.

Forms 11-C, 637, 720, 730, 6197, 6627.

Pub 513, Tax Information for Visitors to

the United States — briefly reviews the

general requirements of U.S. income tax

rules for foreign visitors who may have to

file a U.S. income tax return during their

visit. Most visitors who come to the United

States are not allowed to work in this

country. Check with the Bureau of

Citizenship and Immmigration Services

(BCIS) before taking a job.

Forms 1040C, 1040-ES (NR), 1040NR,

2063.

Pub 514, Foreign Tax Credit for

Individuals — explains the foreign tax

credit that is allowed for income taxes paid

to a foreign government on income taxed

by both the United States and a foreign

country. 

Form 1116.

Pub 515, Withholding of Tax on

Nonresident Aliens and Foreign Entities

— provides information for withholding

agents who are required to withhold and

report tax on payments to nonresident

aliens, foreign partnerships and foreign

corporations. This publication includes

information on required withholding upon

the disposition of a U.S. real property

interest by a foreign person. Also, it

includes three tables listing U.S. tax

treaties and some of the treaty provisions

that provide for reduction of or exemption

from withholding for certain types of

income.

Forms 1042, 1042S, 8233, 8288, 8288-

A, 8288-B, 8804, 8805, 8813, W-8 series

(BEN, ECI, EXP, IMY).

Pub 516, U.S. Government Civilian

Employees Stationed Abroad —

discusses many of the allowances,

reimbursements, expenses and property

sales that U.S. Government civilian

employees may have while working

overseas.

Pub 517, Social Security and Other

Information for Members of the Clergy

and Religious Workers — discusses

social security and Medicare taxes and

exemptions from them for ministers and

religious workers. This publication also

explains the income tax treatment of

certain income and expense items of

interest to the clergy.

Forms 1040 (Schedules C-EZ, SE),

2031, 2106EZ, 4029, 4361.

Pub 519, U.S. Tax Guide for Aliens —

gives guidelines on how nonresident aliens

determine their U.S. tax status and figure

their U.S. income tax.

Forms 1040, 1040C, 1040NR, 1040NREZ, 2063.

Pub 521, Moving Expenses — explains

whether certain expenses of moving are

deductible. For example, if you changed

job locations last year or started a new job,

you may be able to deduct your moving

expenses. You may also be able to deduct

expenses of moving to the United States if

you retire while living and working

overseas or if you are a survivor or

dependent of a person who died while

living and working overseas.

Form 1040 (Schedule D)
16 2003 Guide to Free Tax Services

Pub 523, Selling Your Home — explains

how to treat any gain or loss from selling

your main home.

Form 1040 (Schedule D).

Pub 524, Credit for the Elderly or the

Disabled — explains who qualifies for the

credit and how to figure it.

Forms 1040 (Schedule R), 1040A

(Schedule 3).

Pub 525, Taxable and Nontaxable Income

Pub 526, Charitable Contributions —

explains how to claim a deduction for

charitable contributions and describes

organizations that are qualified to receive

charitable contributions. It also describes

contributions you can (and cannot) deduct

and explains deduction limits.

Forms 1040 (Schedule A), 8283.

Pub 527, Residential Rental Property —

explains rental income and expenses and

how to report them on your return. This

publication also defines other special rules

that apply to rental activity.

Forms 1040 (Schedule E), 4562.

Pub 529, Miscellaneous Deductions —

identifies expenses you may be able to

take as miscellaneous deductions on Form

1040 (Schedule A), such as employee

business expenses and expenses of

producing income. This publication does

not discuss other itemized deductions,

such as the ones for charitable

contributions, moving expenses, interest,

taxes, or medical and dental expenses.

Forms 1040 (Schedule A), 2106,

2106EZ.

Pub 530, Tax Information for First-Time

Homeowners — Forms 1040 (Schedule

A), 8396.

Pub 531, Reporting Tip Income —

explains how tip income is taxed and the

rules for keeping records and reporting

tips to your employers. This publication

focuses on employees of food and

beverage establishments, but

recordkeeping rules and other information

may also apply to other workers who

receive tips, such as hairdressers, cab

drivers, and casino dealers. (See

Publication 1244.)

Forms 4070, 4070A.

Pub 533, Self-Employment Tax —

explains how people who work for

themselves figure and pay selfemployment tax on their earned income.

Self-employment tax consists of social

security and Medicare taxes.

Form 1040 (Schedule SE).

Pub 534, Depreciating Property Placed

in Service Before 1987 — Form 4562.

Pub 535, Business Expenses — discusses

in detail common business expenses and

explains what is and is not deductible.

Pub 536, Net Operating Losses (NOLs) for

Individuals, Estates and Trusts —

discusses net operating losses (NOLs) for

individuals, estates, and trusts. Such

topics include: how to figure an NOL; when

to use an NOL; how to claim an NOL

deduction; and how to figure an NOL

carry-over. 

Form 1045.

Pub 537, Installment Sales — explains

the tax treatment of installment sales.

(Installment sales are sales where part or
2003 Guide to Free Tax Services 17

all of the selling price is paid after the year

of the sale.) If you finance the buyer’s

purchase of your property, instead of

having the buyer get a loan or mortgage

from a bank (or other lender), you

probably have an installment sale.

Form 6252.

Pub 538, Accounting Periods and

Methods — explains some of the rules for

accounting periods and methods. This

publication is not intended as a guide to

general business and tax accounting rules.

Forms 1128, 2553, 3115.

Pub 541, Partnerships — Form 1065

(Schedules K, K-1).

Pub 542, Corporations — Forms 1120,

1120-A.

Pub 544, Sales and Other Dispositions of

Assets — explains how to figure gain and

loss on various transactions, such as

trading, selling, or exchanging an asset

used in a trade or business. This

publication defines capital and noncapital

assets and the tax results of different types

of gains and losses.

Forms 1040 (Schedule D), 4797, 8824.

Pub 547, Casualties, Disasters, and

Thefts — helps you identify a deductible

disaster, casualty, or theft loss. This

publication also explains how to figure and

prove your loss and how to treat the

reimbursement you receive from insurance

or other sources.

Form 4684.

Pub 550, Investment Income and

Expenses — covers investment income

such as interest and dividends, expenses

related to investments, and sales and

trades of investment property including

capital gains and losses.

Forms 1040 (Schedules B, D), 1099-

DIV, 1099-INT, 4952, 6781, 8815.

Pub 551, Basis of Assets — explains how

to determine the basis of property, which

is usually its cost.

Pub 552, Recordkeeping for Individuals

— highlights and serves as a ready

reference on general recordkeeping for

individual income tax filing.

Pub 553, Highlights of 2003 Tax Changes

— provides detailed information about tax

law changes that may affect you this filing

season. 

Pub 554, Older Americans’ Tax Guide —

provides helpful information on tax topics

that may be of interest to older Americans.

This guide also covers certain provisions

that give special tax treatment to them.

Pub 555, Community Property —

provides helpful information to married

taxpayers who reside in a community

property state — Arizona, California,

Idaho, Louisiana, Nevada, New Mexico,

Texas, Washington, or Wisconsin. If you

and your spouse file separate tax returns,

you should understand how community

property laws affect the way you figure

your income on your federal income tax

return.

Pub 556, Examination of Returns, Appeal

Rights, and Claims for Refund — Forms

1040X.

Pub 557, Tax-Exempt Status for Your

Organization — explains the rules and

procedures that apply to organizations

applying for exemption from federal

income tax under section 501 of the

Internal Revenue Code.

Forms 990, 990 EZ, 990 PF, 1023, 1024,

8871, 8872.

Pub 559, Survivors, Executors, and

Administrators — provides helpful

information for reporting and paying the

proper federal income taxes if you are

responsible for settling a decedent’s estate.

This publication answers many questions

that a spouse or other survivor faces when

a person dies.

Forms 1040, 1041.

Pub 560, Retirement Plans for Small

Business (SEP, SIMPLE, and Qualified

Plans) — provides guidance relevant to

retirement plans available to small

businesses (including the self-employed).

It covers simplified employee pensions

(SEPs), qualified plans, and savings

incentive match plan for employees

(SIMPLE) retirement plans.

Pub 561, Determining the Value of

Donated Property — defines fair market

value and provides other guidance that

may help you determine the value of
18 2003 Guide to Free Tax Services

property you donated to a qualified

organization. 

Form 8283.

Pub 564, Mutual Fund Distributions —

explains the tax treatment of distributions

paid or allocated to an individual

shareholder of a mutual fund, and explains

how to figure gain or loss on the sale of

mutual fund shares.

Forms 1040 (Schedules B, D), 1099-

DIV.

Pub 570, Tax Guide for Individuals with

Income from U.S. Possessions —

provides tax guidance for individuals with

income from American Samoa, Guam, the

Commonwealth of the Northern Mariana

Islands, Puerto Rico, and the U.S. Virgin

Islands. This publication also gives

information and addresses for filing U.S.

possession tax returns, if required.

Forms 1040, 1040-SS, 4563, 5074,

8689.

Pub 571, Tax-Sheltered Annuity Plans

(403(b) Plans) for Employees of Public

Schools and Certain Tax-Exempt

Organizations — explains the contribution

rules that apply to tax-sheltered annuity

plans offered by qualified employers to

eligible employees. Rules discussed

include the limit on elective deferrals and

the limit on annual additions.

Form 5330.

Pub 575, Pension and Annuity Income —

explains how to determine the tax

treatment of distributions received from a

qualified pension and annuity plans. It also

discusses the optional tax treatment you

can choose to use for lumpsum

distributions received from a pension,

from stock bonus and profit-sharing plans.

Additionally, this publication discusses

how to roll over distributions from a

qualified plan.

Forms 1040, 1040A, 1099-R, 4972.

Pub 579SP, Cómo Preparar la

Declaración de Impuesto Federal (How to

Prepare the Federal Income Tax Return)

— in Spanish.

Forms 1040, 1040A (Schedules 1 and

2), 1040EZ, and Schedule EIC.

Pub 583, Starting a Business and

Keeping Records — provides basic federal

tax information for people who are starting

a business. It also provides information on

keeping records and illustrates a

recordkeeping system.

Pub 584, Casualty, Disaster, and Theft

Loss Workbook (Personal-Use Property)

— contains schedules for listing contents

of your residence and is designed to help

you figure your losses on personal-use

property in the event of a casualty, disaster

or theft.

Pub 584-B, Business Casualty, Disaster,

and Theft Loss Workbook — contains

schedules for listing your income

producing property and is designed to help

you figure your losses on the property in

the event of a casualty, disaster or theft.

Pub 584SP, Registro de Pérdidas

Personales Causadas por Hechos

Fortuitos (Imprevistos) o Robos —

Publication 584 in Spanish.

Pub 587, Business Use of Your Home

(Including Use by Daycare Providers) —

explains rules for claiming deductions for

business use of your home and what

expenses may be deducted.

Pub 590, Individual Retirement

Arrangements (IRAs) — explains the tax

rules that apply to IRAs and the penalties

for not following them. Rules discussed

include those affecting contributions,

deductions, transfers (including rollovers)

and withdrawals. This publication includes

tax rules for traditional IRAs, Roth IRAs,

SEPs, and SIMPLEs.

Forms 1040, 1040A, 5329, 8606.

Pub 593, Tax Highlights for U.S. Citizens

and Residents Going Abroad — provides

a brief overview of various U.S. tax

provisions that apply to U.S. citizens and

resident aliens who live or work abroad

and expect to receive income from foreign

sources.

Pub 594, Understanding the Collection
2003 Guide to Free Tax Services 19

Process — defines your rights and duties

as a taxpayer who owes federal taxes. This

publication also explains how the IRS

fulfills its legal obligation to collect these

taxes.

Pub 594SP, Comprendiendo el Proceso

de Cobro (Understanding the Collection

Process) — Publication 594 in Spanish.

Pub 595, Tax Highlights for Commercial

Fishermen — is primarily intended for

sole proprietors who use Form 1040

(Schedules C or C-EZ) to report profit or

loss from fishing. This publication does

not cover corporations or partnerships in

detail.

Forms 1040 (Schedules C, C-EZ ),

1099-MISC.

Pub 596, Earned Income Credit —

explains who may receive the credit, how

to figure and claim the credit, and how to

receive advance payments of the credit.

Forms 1040, 1040A, Schedule EIC, EIC

Worksheets, W-5.

Pub 596SP, Crédito por Ingreso del

Trabajo (Earned Income Credit) —

Publication 596 in Spanish.

Pub 597, Information on the U.S.-Canada

Income Tax Treaty — this publication

explains certain tax provisions that may

apply to U.S. residents who temporarily

work in Canada.

Pub 598, Tax on Unrelated Business

Income of Exempt Organizations —

explains how the tax applies to most taxexempt organizations. It explains the rules

that apply if an organization regularly

operates a trade or business that is not

substantially related to its exempt purpose.

Form 990-T.

Pub 686, Certification for Reduced Tax

Rates in Tax Treaty Countries — explains

how U.S. citizens, residents, and domestic

corporations may certify to a foreign

country that they are entitled to tax treaty

benefits.

Pub 721, Tax Guide to U.S. Civil Service

Retirement Benefits — explains how the

federal income tax rules apply to civil

service retirement benefits received by

retired federal employees (including those

disabled) or their survivors. 

Forms 1040, 1040A.Pub 850, EnglishSpanish Glossary of Words and Phrases

Used in Publications Issued by the Internal

Revenue Service

Pub 901, U.S. Tax Treaties — explains the

reduced tax rates and exemptions from

U.S. taxes provided under U.S. tax treaties

with foreign countries. This publication

provides helpful information for residents

of those countries who receive income

from U.S. sources. It may be useful to U.S.

citizens and residents with income from

abroad.

Pub 907, Tax Highlights for Persons with

Disabilities — briefly explains tax laws

that apply to persons with disabilities and

directs readers to sources of detailed

information on topics such as deductable

expenses, tax credits and taxable and nontaxable income.

Pub 908, Bankruptcy Tax Guide —

explains the federal tax obligations of

persons filing bankruptcy petitions and

bankruptcy estates.

Forms 982, 1040, 1041.

Pub 911, Direct Sellers — provides

information on figuring income and

deductible expenses for your direct-sales

business. A direct seller is a person who

sells consumer products to others on a

person-to-person basis, such as door-todoor, at sales parties, or by appointment in

someone’s home. 

Form 1040 (Schedules C, SE).

Pub 915, Social Security and Equivalent

Railroad Retirement Benefits — explains

taxability of social security and equivalent

railroad retirement benefits.

Forms SSA-1042S and RRB-1042S,

SSA-1099 and RRB-1099, Social Security

Benefits Worksheets.

Pub 918, Drafts of Worksheets in IRS

Publications — available on IRS Web site

and IRS CD only.

Pub 919, How Do I Adjust My Tax

Withholding ? — discusses Form W-4 and

offers guidance for getting the right

amount of tax withheld from your pay. 

Form W-4.

Pub 925, Passive Activity and At-Risk

Rules — discusses two sets of rules that

may limit the losses you can deduct on

your tax return from any trade, business,

rental or other income-producing activity.

Form 8582.

Pub 926, Household Employer’s Tax

Guide For Wages Paid in 2004 —

identifies “household employees.” Included

are tax rules you should know when you

employ a household worker such as a

babysitter, maid, yard worker, or similar

domestic worker. This publication explains
20 2003 Guide to Free Tax Services

what federal employment taxes to withhold

and pay and what records to keep.

Forms 1040 (Schedule H), W-2, W-3,

W-4, W-5.

Pub 929, Tax Rules for Children and

Dependents — explains filing

requirements and the standard deduction

amount for dependents. This publication

also explains when and how a child’s

parents may elect to include their child’s

interest and dividend income on their

return, and when and how a child’s

interest, dividends, and other investment

income reported on the child’s return are

taxed at the parents’ tax rate.

Forms 8615, 8814.

Pub 936, Home Mortgage Interest

Deduction — discusses the rules for

deducting home mortgage interest limits

on the deduction and how to report it on

your tax return. 

Form 1040 (Schedule A).

Pub 938, Real Estate Mortgage

Investment Conduits (REMICs) Reporting

Information (And Other Collateralized

Debt Obligations (CDOs) — contains

directories of REMICs and CDOs to assist

brokers and middlemen with their

reporting requirements. Available on the

IRS Web site.

Pub 939, General Rule for Pensions and

Annuities — covers the method used to

figure the tax-free part of pension and

annuity payments from nonqualified plans,

using life expectancy actuarial tables. The

General Rule is used primarily for

nonqualified plans, such as purchased

commercial annuities, private annuities,

and nonqualified employee plans. 

Pub 946, How to Depreciate Property —

This publication explains how to figure and

claim deductions for depreciation under

MACRS and the special depreciation

allowance. It also explains how you can

elect to take a section 179 deduction for

certain property and additional rules for

listed property.

Form 4562.

Pub 947, Practice Before the IRS and

Power of Attorney — explains who can

represent a taxpayer before the IRS and

what forms are used to authorize a person

to represent a taxpayer or to receive

information from IRS regarding a taxpayer.

Forms 2848, 8821.

Pub 950, Introduction to Estate and Gift

Taxes — provides general information on

the federal gift and estate taxes. It explains

when these taxes apply and how they can

be eliminated or reduced by the unified

credit. — Forms 706, 709.

Pub 954, Tax Incentives for Distressed

Communities

Pub 957, Reporting Back Pay and

Special Wage Payments to the Social

Security Administration

Pub 967, The IRS Will Figure Your Tax —

explains the procedures for choosing to

have the IRS figure the tax on Forms 1040,

1040A, and 1040EZ.

Pub 968, Tax Benefits for Adoption —

explains the adoption tax credit and the

exclusion from income on certain

employer-provided amounts you pay to

adopt a child.

Form 8839.

Pub 969, Medical Savings Accounts

(MSAs) — explains the program for certain

employees of small businesses and selfemployed individuals. This publication also

explains what a medical savings account

is, who can have one, and how to report it

on a tax return. This publication also

explains Medicare plus choice MSAs.

Forms 8853, 1098-MSA, 1099-MSA.

Pub 970, Tax Benefits for Education —
2003 Guide to Free Tax Services 21

explains the tax benefits that may be

available to you if you are saving for or

paying higher education costs for yourself

or another student. Includes information

previously contained in Publications 508

and 520, such as deducting work-related

education expenses and the taxability of

scholarships and other types of

educational assistance.

Form 8839.

Pub 971, Innocent Spouse Relief (And

Separation of Liability and Equitable

Relief) — explains who may quality for

relief and how to apply for relief.

Form 8857.

Pub 972, Child Tax Credit — provides

Child Tax Credit Worksheets for those who

cannot use the worksheet in their Form

1040 or Form 1040A instructions. It also

provides the additional child tax credit

worksheet for those who cannot use the

worksheet in the Form 8812 instructions.

Pub 1004, Identification Numbers Under

ERISA

Pub 1045, Information for Tax

Practitioners

Pub 1212, List of Original Issue Discount

Instruments 

— helps brokers and other

middlemen identify publicly offered

original issue discount debt instruments

so that they can file Forms 1099-OID or

Forms 1099-INT as required. This

publication also assists owners of publicly

offered OID instruments to determine the

OID to report on their income tax returns.

Pub 1244, Employee’s Daily Record of

Tips and Report to Employers 

—

Forms 4070, 4070-A.

Pub 1542, Per Diem Rates — provides

the maximum per diem allowances for

business travel within the continental

U.S.A. 

Pub 1544, Reporting Cash Payments of

Over $10,000 (Received in a Trade or

Business) 

— explains when and how

persons in a trade or business must file a

Form 8300 when they receive cash

payments of more than $10,000 from one

buyer. It also discusses the substantial

penalties for not filing the Form.

Form 8300.

Pub 1544SP, Informe de Pagos en

Efectivo en Exceso de $10,000

(Recibidos en una Ocupacion o Negocio) — explains in Spanish when and how

persons in a trade or business must file a

Form 8300 or 8300SP when they receive

cash payments of more than $10,000 from

one buyer. It also discusses the substantial

penalties for not filing the form. 

Pub 1546, Taxpayer Advocate Service of

the IRS — Index of Topics and Related

Publications. Look over the following index

to find the topic you have questions about.

The number listed after each topic is the

related publication. Where more than one

number is listed after a topic, bold type

has been used to identify the publication

that provides the most detailed information

about that topic. Refer to previous section

titled Tax Publications for a brief

description of many of the publications

listed below. 
22 2003 Guide to Free Tax Services

Look over the following index to find the topic you have questions about. The number listed

after each topic is the related publication. Where more than one number is listed after a topic,

bold type has been used to identify the publication that provides the most detailed information

about that topic. Refer to previous section titled Tax Publications for a brief description of

many of the publications listed below. 

A

Abandonment of assets | 544

Abroad, tax highlights for U.S. citizens and 

residents going | 593

Accelerated cost recovery system (ACRS) 

| 534

Accelerated death benefits | 559

Depreciation | 534

Accident and health plans | 535

Accident insurance, medical expense 

| 502, 554, 907

Accountable plan | 463, 535

Accounting periods and methods | 225, 

538, 552, 911

Accrual method | 538

ACRS recovery tables | 534

ACTION volunteers | 525

Actuarial tables | 939

Additional child tax credit | 972

Adjusted basis (See Basis)

Adjustments to income:

Alimony paid | 504

IRAs (including traditional & Roth

Education IRAs), contributions to | 590

Keogh plan, contributions to | 535, 560

Medical savings accounts | 969

Moving expenses | 521

Penalty for early withdrawal of savings 

| 550

Self-employed health insurance | 502, 

535

Self-employment tax | 533, 596, 596SP,

911

Administrators of estates | 559, 950

Adoption assistance programs | 968

Adoption expenses:

Credit for | 968

Medical expenses, before adoption | 502

Advance payments:

Earned income tax credit | 596, 596SP, 

926

For sales from services | 538

Advertising expenses | 535

Age 59 1/2 rule | 590

Age 65 or older:

Standard deduction | 501, 554, 929

Tax credit | 524, 554

Agricultural Employment | 51

Air transportation of persons or property, 

excise tax | 510

Air travel facilities excise tax | 510

Alcohol fuels credit | 378 

Aliens:

Spouses | 3, 519

Tax obligations | 3, 519

Tax treaties, U.S. | 901

Visitors to U.S. | 513, 519

Withholding on nonresident | 515

Alimony | 504

Allocated tips | 531

Alternate depreciation system (ADS) | 946

Alternative minimum tax:

Corporations | 542

Farmers | 225

Individuals | 596, 596SP, 929

Amended returns:

U.S. citizens abroad | 54

Amortization | 535

Bond premium | 529, 535, 550

Farmers | 225

Start-up costs | 535, 541, 542

Annuities (See also Pensions):

Civil service | 721, 939

Estate and gift taxes | (Forms 706 & 

709 instructions)

Joint and survivor | 575, 939

Loans from employer plans | 560, 575

Older persons | 554

Other than civil service | 575, 939

Ruling request | 939

Self-employed | 560

Tax-sheltered | 571

Tax treatment | 554, 575, 939

Variable | 575

Withholding on | 505, 575, 721

Anticipated liabilities | 535

Apartment, condominium, cooperative:

Depreciation of | 946

Owner’s deductions | 530

Rental of | 527

Sale of | 523

Appeal of erroneous lien | 594, 594SP

Appeal procedures, exempt organizations 

| 557

Appeal rights and claims for refund 

| 556

Application procedures, exempt 

organizations | 557

Appraisals (See Valuation)

Appreciation in value of property:

Charitable donation | 526

Sale of asset | 544

Armed forces:

Alien status | 3

Combat zone compensation | 3

Combat zone forgiveness | 3

Decedents | 3

Dependency exemptions | 3, 501

Earned income tax credit | 3, 596, 

596SP

Extension of deadline | 3

Filing returns | 3

Home, sale of | 3, 523

Index of Topics and Related Publications
2003 Guide to Free Tax Services 23

Income taxes on death | 3, 559

Itemized deductions | 3

Moving expenses | 3, 521

Tax liability | 3

Taxable and nontaxable income | 3, 525

Transportation expenses of reservists 

| 3, 463

Travel expenses | 3, 463

Uniforms | 3, 529

Articles of organization | 557

Assessments for local improvements 

| 530, 535, 551

Assets (See Property)

Associations:

Investment clubs | 550

At-risk rules | 925

Attorney fee:

Business expenses | 535

Divorce | 504

Investment expense | 550

Personal legal expenses | 529

Automobile expense (See Car expenses)

Aviation fuel, excise tax | 510

Awards and prizes | 525, 535, 911

B

Babysitters | 926

Backup withholding | 505, 550

Bad debts:

Business | 529, 535

Nonbusiness | 550

Bankruptcy | 594, 594SP, 908

Bar examination fees | 529

Bargain purchases | 526, 551

Bargain sale to charity | 544

Barter income | 525

Basis | 550, 551

Adjusted | 527, 530, 534, 551, 564, 946

Bonds | 550, 551

Cars | 463

Casualty and theft losses | 547, 551

Condemnation | 544

Cost | 551, 564

Depreciable | 946

Gifts | 551, 564

Home | 523, 530

Inherited property | 551, 555, 559, 564

Intangible assets | 551

Mutual funds | 564

Partner’s interest in partnerships | 541

Other than cost | 551

Rental property | 527, 551

S corporation stock 

| (Form 1120-S instructions)

Stocks | 550, 551

Below market loans | 550

Beneficiaries:

Annuity | 575, 721

Estate | 559

Inheritance | 525, 559

IRA | 575, 590

Life insurance | 525

Medical savings accounts | 969

Bequests (See Gifts, bequests, and 

inheritances)

Billing information | 594, 594SP

Bingo games, exempt organizations | 598

Blindness:

Guide animals | 502

Medical deduction for special schools 

and equipment | 502

Standard deduction | 501

Blocked income | 54

Blood donations | 526

Board and lodging 

(See Meals and lodging)

Bona fide residence test | 54

Bonds:

Amortization of premium | 535, 550

Basis | 550, 551

Coupon, stripped | 550, 1212

Discounted [original issue discount 

(OID)] | 550, 1212

List of original issue discount | 1212

Market discount | 550

Original issue discount (OID) | 550, 

1212

State or local | 550

Treasury | 550

U.S. savings | 550

Acquired from decedent | 550, 559

Used for education | 550, 970

Bonuses:

Direct sellers | 911 

Employee | 525

Employer’s deduction | 535

Books and records, business | 583, 911

Boycotts, international | 514

Braille materials | 502, 907

Bribes and kickbacks | 535

Brokerage fees | 550, 564

Buildings:

Depreciation of | 946

Sale of | 544

Burial expenses (See Funeral expenses)

Buses, highway use tax | (Form 2290)

Business (See also Deductions):

Bad debt | 529, 535

Casualty losses | 547

Expenses | 463, 535, 555, 911

Overseas | 953

Sale of interest | 544

Start-up costs | 535, 541, 542

Taxes | 535, 583, 911

Use of car | 463, 529, 911

Use of home | 529, 587, 911

C

Cafeteria plans | 15-B

Calendars, tax | 509

Calls and puts | 550

Campaign contributions:

Business expense | 535

Received | 525

Canadian tax treaty | 597

Contribution | 526

Cancellation of debt:

Bankruptcy | 908

Effect on basis | 551

Farmers | 225

Income | 525

Insolvency | 908

Qualified real property business 

indebtedness | 334

Cancellation of lease | 521, 544

Capital assets (See Property)

Capital construction fund for:

Commercial fishermen | 595

Capital contributions | 542

Capital expenditures:

Basis | 551, 946

Business | 535, 911

Medical expense | 502

Capital gain distributions | 550, 564, 929

Capital gains and losses (See Gains and 

losses)

Capitalizing expenses | 535, 911

Effect on basis | 551

Car expenses:

Business | 463, 535, 911
24 2003 Guide to Free Tax Services

Car pool | 525

Charitable | 526

Depreciation | 463, 946

Education | 970

Medical | 502

Moving | 521

Carrybacks and carryovers:

Capital loss | 536, 542, 544, 550, 564

Charitable contributions | 526

Foreign tax credit | 514

General business credit | 225, 334

Investment interest expense | 550

Net operating loss | 536, 542

Termination of estate | 559

Carrying charges:

Capitalizing | 535

Straddles | 550

Cash method of accounting | 538

Cash or deferred arrangements | 575

Cash transactions over $10,000 | 1544, 

1544SP

Casualty losses, nonbusiness | 547

Workbook | 584, 584-B, 584SP

Cellular telephones | 529, 535, 946

Cemetery, contribution for | 526

Certificates of compliance 

(See Sailing permit)

Charitable contributions (See 

Contributions)

Charitable deductions, estate and gift taxes 

| (Forms 706 & 709 instructions)

Chemicals excise tax (See Ozone-depleting 

chemicals)

Child:

Credit for care of | 503

Divorced or separated parents | 504

Exclusion of dependent care assistance 

benefits for care of | 503

Exemptions | 501

Support payments | 504, 594, 594SP

Tax Credit | 17

Tax rules | 929

Christian science practitioners | 502, 517

Circulation expenses | 535

Citizens abroad | 54, 593

Civil service annuities:

Community property | 555

Disability annuity | 721

Retirement annuity | 721

Survivors | 721

Claim procedures | 3, 556, 594, 594SP

Clean-fuel vehicle property | 535, 551

Cleaning and laundry expenses:

Business expense when traveling | 463

Work clothes | 529

Clergy | 517

Earned income tax credit | 596, 596SP

Income | 517, 525

Self-employment tax | 15-A, 517, 533, 

596, 596SP

Social security | 15-A, 517

Closing costs | 523, 530, 551

Clothes, work | 526, 529

Club dues | 463, 529, 535

Collection of income, expenses of | 529, 

550

Collection process:

Income tax accounts | 594, 594SP

Employment tax accounts | 594, 594SP

Your rights | 1, 1SP, 594, 594SP

Collateralized debt obligations (CDOs) 

| 938 (Available on the IRS Web site)

Combat zone:

Compensation exclusion | 3

Decedents | 3, 559 

Extension of deadline | 3

Filing returns | 3

Telephone excise taxes | 510

Commercial fishermen | 595

Commercial revitalization deduction | 954

Commissions | 525

Brokers | 550

Direct sellers | 911 

Sale of home | 523

Commitment fees | 535

Communications excise tax | 510

Community income and property | 504, 

555

Commuting | 529, 463

Compensation | 15-A, 525, 535, 560, 590

Damages | 525

Unemployment | 525

Compete, agreement not to 

| 535, 544, 946

Computer, home | 529, 946

Condemnations | 523, 544

Condominiums | 527

Conservation contribution, qualified | 561

Contributions:

Appreciated property | 526, 561

Capital | 542

Charitable:

Corporation | 542

Estates | 559 (Forms 706 & 709 

instructions)

Individuals | 526

Non-cash | 526, 561

Coverdell ESAs | 970

Medical Savings Accounts | 969

Partnership | 541

Retirement plans (including IRAs) 

| 535, 560, 571, 590

Valuation | 561

Convention expenses | 463, 526

Conversion to rental property:

Personal home | 523, 527, 551

Cooperatives:

Interest payments | 530, 936

Owner’s deductions | 530

Rental | 527

Copyrights:

Basis | 551

Depreciation | 946

Sale of | 544

Corporations | 542

Corporations electing to be S corporations 

| (Form 1120-S instructions)

Corporations, small business stock losses 

| 550

Cosmetic surgery | 502

Cost annuity | 575, 721, 939

Cost depletion | 225, 535

Cost-of-living allowance | 525

Cost of goods sold | 334, 911

Court, appeal to after examination | 556

Covenant not to compete (See Compete, 

agreement not to)

Credits:

Adoption | 968

Alcohol fuel | 378

Aviation fuel | 378

Child and dependent care | 503

Child Tax Credit | 3, 17, 972

Compressed natural gas | 378

Diesel fuel | 378

Disability, permanent and total | 524

Earned income | 3, 555, 596, 596SP

Elderly, for | 524, 554

Electric vehicle | 535

Empowerment zone employment 

| 334, 954

Estimated tax | 505

Foreign tax | 514
2003 Guide to Free Tax Services 25

Foreign tax | 514

Gasohol blending | 378

Gasoline | 378

General business | 225, 334

Health insurance | 502

Hope Credit | 970

Indian employment | 334, 954

Kerosene | 378

Liberty zone business employee 

| 334, 954

Lifetime learning | 970

Liquefied petroleum gas | 378 

Mortgage interest | 530, 936

New Markets | 334, 954

Railroad retirement tax, overpaid | 505

Renewal community employment | 954

Retirement savings contributions | 590

Social security tax, overpaid | 505

Special motor fuels | 378

Student credits — Hope, lifetime 

learning | 970

Unified, estate and gift taxes | (Forms 

706 & 709 instructions | 950

Welfare-to-work | 334, 954

Withholding tax | 505

Work opportunity | 334, 954

Crops, unharvested | 225

Cruise ships | 463

Custodial fees | 529

Custodial parent | 501, 504

Custody | 501, 504

D

Damaged property | 334, 547

Damages:

Compensation for | 525

Medical expenses | 502

Severance | 544

Danger pay | 516

Day care facility | 587

DC zone assets, exclusion of gains | 954

Deaf, guide dogs for | 502

Death benefits | 525

Debt-financed income or property | 598

Debts:

Bad debts | 535, 550

Canceled | 225, 334, 525, 551, 908

Decedents | 3, 559, 950

Medical expenses | 502, 559

Declining balance depreciation | 534, 946

Deductions:

Amortization | 535

Bad debts:

Business | 529, 535

Nonbusiness | 529, 550

Business use of home | 529, 587, 911

Car expenses | 463, 911

Casualty losses | 527, 547

Charitable contributions | 526, 561

Community property | 555

Convention expenses | 463

Corporations | 542

Dental expenses | 502

Depletion | 535

Depreciation | 527, 534, 911, 946

Disaster area losses | 547

Dividends received | 542

Domicile | 555

Educational assistance exclusion | 970

Educational expenses | 3, 529, 970

Employee benefit programs | 535

Employee business expenses | 463, 529

Employee’s pay | 535

Enterprise communities | 954

Entertainment expenses | 463

Meals and entertainment 

| 535, 911

Estate tax | 950

Expenses of producing income

| 529, 550

Final income tax return of decedent

| 559

Fines:

Business | 535

Personal | 529

Foreign housing costs | 54

Foreign income taxes | 514

Fringe benefits | 525, 15-B

Gambling losses | 525, 529

Gift expenses | 463, 911

Home leave | 516

Home mortgage interest deduction

| 530, 936

Income, expenses of producing 

| 529, 550

Interest expenses | 535, 550, 911, 936

Investment expenses | 550, 564

IRA contributions | 590

Itemized deductions, recovery of | 525

Keogh plan contributions | 560

Legal expenses:

Business | 535

Divorce | 504

Personal | 504, 529

Meals and lodging furnished to 

employees | 15-B 535, 595

Medical expenses | 502, 535, 554

Medical savings accounts | 969

Miscellaneous | 529

Moving expenses | 3, 521, 554

Partnerships | 541

Pension plan, contributions to | 535,

560, 571, 575

Personal exemptions | 501

Rental expenses | 527

Section 179 deduction | 946

Self-employed health insurance | 502, 

535, 541

Standard | 501

Student loan interest | 970

Taxes | 334, 530, 535, 911

Thefts | 334, 547

Travel, transportation | 3, 463, 595, 911

Deferrals, elective | 560, 571, 590

Demonstrators | 911

Dental expenses | 502

Departing aliens | 513, 519

Dependent care assistance programs 

| 15-B

Dependent care credit | 503

Dependents | 3, 501, 504

Medical expenses of | 502

Rules for children and | 929

Social security numbers | 501

Depletion | 225, 535

Deposits:

Corporate taxes | 542

Due dates | 509

Employment taxes | 15

Excise taxes | 510

Frozen | 550, 590

Loss on | 529, 547, 564

Depreciation, depreciable property:

Accelerated cost recovery system 

(ACRS) | 534

Basis | 527, 551, 946

Car | 463, 946

Farm property | 225

Home, business use | 587, 911

Home, rental use | 527

Indian reservations, used on | 954

Methods | 534, 946
26 2003 Guide to Free Tax Services

Modified accelerated cost recovery system 

(MACRS) | 463, 527, 946

Recapture | 544

Sale of depreciable property | 544

Trucks and vans | 946

Determination letters:

Employee benefit plans | 560

Exempt organizations | 557

Development expenses for oil, gas, and 

geothermal wells | 535

Diesel fuel credit | 378

Diesel fuel excise tax | 510

Direct sellers | 911

Directors’ fees | 525

Disability:

Civil service retirement | 721

Income | 525

Persons with a | 502

Tax credit for | 524, 554

Disabled dependent care | 502, 503, 907

Disaster area losses | 547

Disclosures required | 557, 590

Discount, original issue | 550, 1212

Dispositions:

Depreciable property | 544, 946

Farm property | 225

Installment obligations | 537

Mutual funds | 564

Partner’s interest | 541

Passive activity | 925

Distributions:

Capital gains | 564

Corporate | 542, 550

Coverdell ESAs | 970

Estates | 559

Individual retirement arrangements 

(IRAs) | 554, 590

Medical savings accounts | 969

Mutual funds | 564

Partnership | 541

Retirement plans | 560, 575, 721

S corporations | (Form 1120-S 

instructions)

Dividends | 542, 550, 564

Capital gain distributions | 550, 564

Children’s | 929

Estate | 559

Exempt - interest | 564

Mutual fund | 564

Received, deduction for 

corporations | 542

Reinvestment of | 550, 564

S corporations | (Form 1120-S 

instructions)

Divorced taxpayers | 504

Exemptions | 501, 504

Individual retirement arrangement

transfer | 590

Doctors, medical | 502

Domestic help | 926

Donations (See Contributions)

Donee information return | 557

Drilling expenses for oil, gas, and 

geothermal wells | 535

Drug expenses | 502

Dual status tax year | 519

Due dates | 509, 225

Dues | 529, 535

E

Earned income:

Advance payment | 596, 596SP

Filing requirements, dependents | 501, 

929

Foreign | 54

Tax credit | 3, 596, 596SP

Easement | 544

Contribution of | 561

Effect on basis | 551

Economic performance rule | 538

Education:

Expenses | 3, 529, 535, 970

Savings bond program | 550, 970

Scholarships and fellowships | 970

State tuition programs | 970

Student credits — Hope, lifetime 

learning | 970

Student loans | 970

Elderly persons:

Sale of home | 523, 554

Tax credit for | 524, 554

Elective deferrals | 525, 560, 571, 590

Electric vehicle tax credit | 535, 551

Embezzlement | 547

Employee benefit programs | 15-B, 560

Employee business expenses | 463, 529

Car | 463

Home | 587

Employees, defined | 15-A

Employees’ pay | 535

Employer identification number (EIN) 

| 510, 583, 911, 926

Employer-paid

Accident and health insurance | 15-B, 

502

Adoption expenses | 15-B, 968

Dependent care | 503, 15-B

Education | 15-B, 970

Life insurance | 15-B

Employment abroad:

U.S. citizens | 54

U.S. government civilians | 516

U.S. possessions | 570

Employment agency fees | 529

Employment taxes:

Agricultural employers | 51

Collection process | 594

Collection process (Spanish) | 594SP

Employer information | 15, 225, 583, 

911, 926

Exempt organizations | 15-A

Household employees | 503, 926

Empowerment zones | 954

Empowerment zone employment credit 

| 334, 954

Endowment insurance proceeds | 525

Enterprise communities | 954

Entertainment expenses | 463, 535

Environmental cleanup costs | 535, 954

Environmental excise taxes | 510

Equitable relief | 971

ERISA, identification numbers under 

| 1004

Estate and gift taxes | 950, (Forms 706 & 

709 instructions)

Annual exclusion | 950

Basis | 559

Disclaimers | (Forms 706 & 709 

instructions)

Divorced or separated | 504

Filing requirements | 559, 950

Marital deduction | 950

Unified credit | 950

Unified rate schedule | (Forms 706 & 

709 instructions)

Valuation methods | (Forms 706 & 709 

instructions)

Estates and trusts, income from | 525, 559

Estimated tax:

Corporations | 542

Exempt organizations | 598

Farmers | 225
2003 Guide to Free Tax Services 27

Farmers | 225

Fishermen | 595

Individual | 505, 520, 911

Nonresident aliens | 519

Examination of returns | 556

Your rights | 1, 1SP

Excess accumulations, IRA | 590

Excess contributions, IRA | 590

Exchanges of property (See Property and 

sales and exchanges)

Excise taxes | 510

Credits and refunds of excise taxes

| 225, 378, 510

Exclusion of:

Capital gains from DC zone assets | 954

Employer-provided dependent care

| 503, 15-B

Employer-provided educational

assistance | 15-B, 970

Gain on sale of home | 523

Income earned abroad | 54, 593

U.S. possessions | 570

Executors of estates | 559

Exempt income | 525

Exempt-interest dividends | 550, 564

Exempt organizations | 557

Application procedures | 557

Filing requirements | 557

Income from unrelated business | 598

Exemption from withholding | 505

Exemptions | 3, 501, 554

Expenses (See particular type of expense):

Accrual method | 538

Business | 535, 911

Going into business | 535, 542, 583

Car | 463

Cash method | 538

Condemnation award, securing | 544

Decedent, in respect of | 559

Dental | 502

Employee | 463

Exploration, mineral deposits | 535

Farm business expenses | 225

Foreign housing costs | 54

Income-producing | 529, 550

Inventory | 334, 538, 911

Investment | 550

Medical | 502

Personal | 529, 911

Receipts | 552

Recovery of | 525

Rental | 527

Extension of time to file tax return:

Corporations | 542

Estate | 950, (Forms 706 & 709

instructions)

Gift | (Forms 706 & 709 instructions)

Income | 559, (Form 1041 instructions)

Income | 501, 929

Living abroad | 54

Members of armed forces | 3

Partnerships | 541

S corporations | (Form 1120-S 

instructions)

F

Fair market value:

Charitable contributions | 526, 561

Defined | 526, 527, 537, 544, 551, 561,

946

Mutual funds | 564

Valuation | 561

Family:

Employees | 15, 225, 926

Partnerships | 541

Related persons | 544, 550, 946

Farmers and farming | 225

Employment taxes | 51

Federal employees compensation act 

(FECA) payments | 525, 557, 721

Federal employees overseas | 516

Federal insurance contributions act 

(FICA) | 517

Clergy and religious workers | 517

Federal retirees | 721

Federal retirees, disabled | 721

Federal unemployment tax (FUTA) 

| 15, 926 

Fees:

Appraisal | 526, 529, 547, 561

Check-writing | 529

Club dues and membership | 463, 529, 

535

Commitment | 535

Custodial | 529, 550, 564

Directors’ | 525

Legal | 529, 535

License and regulation | 535

Personal services | 525

Service, broker | 529, 550, 564

Fellowships | 970

Fiduciaries | 559

Filing requirements:

Age 65 or over | 501, 554, 915

Corporations | 542

Dependents | 501, 929

Employee benefit plans | 1004

Estates | (Forms 706 & 709 

instructions)

Excise taxes | 510

Exempt organizations | 557, 598

Farmers | 225

Gift taxes | (Forms 706 & 709\

instructions)

Information returns | 911

IRA | 590

Partnerships | 541

S corporations | (Form 1120-S 

instructions)

Filing status | 501, 554

Final return, individual | 559

Fines | 529, 535

Fire losses | 527, 547

First-in first-out (FIFO) inventory method 

| 538, 911

Fishermen, commercial | 595

Fishing expenses | 595

Fixing-up expenses, home | 523

Flood losses | 547

Foreclosures | 544

Foreign:

Convention expenses | 463

Earned income exclusion | 54

Employer | 525

Entities, withholding on | 515

Income taxes | 514

Moving expenses | 3, 54, 521

Person, disposition of U.S. real property 

by a | 515

Service representation and official

residence expenses | 516

Tax credit | 514

Visitors to the United States | 513, 519

Franchises | 535, 544, 551

Fraternal societies, contributions to | 526

Fringe benefits | 525, 15-B

Withholding | 505

Fuel tax credit or refund | 378, 595

Fulbright grants | 54, 970

Funeral expenses:
28 2003 Guide to Free Tax Services

Funeral expenses:

Estates | 559

Individuals | 502, 529

G

Gains and losses | 225, 544, 550

Basis | 550, 551

Capital gain distributions | 550, 564,

919

Casualty losses | 527, 547

Condemnation | 544

Corporations | 542

Depreciable property | 544

Employee stock options | 525

Estate | 559

Investment property | 550

Liquidating dividends | 550

Loss on savings deposits | 529, 550

Mutual funds | 564

Nonresident aliens | 519

Partner’s interest | 541

Rental property | 527

S corporations | (Form 1120-S

instructions)

Sale of assets | 544, 550

Sale of home | 523, 554

Stock options | 550

Theft losses | 527, 547

Gambling winnings and losses | 525, 529

Withholding requirements, winnings 

| 505, 515

Gas guzzler excise tax | 510

Gasohol tax, credit or refund | 378

Gasoline excise taxes | 510

Gasoline tax, credit or refund | 378

General business credit | 225, 334

General depreciation system (GDS) | 527, 

946

General rule, annuities | 939

Gift expenses | 463, 911

Gift tax (See also Estate and gift taxes)

| 504, 950

Gifts, bequests, and inheritances | 559,

950

Basis | 551, 559

Business | 463

Depreciable property | 544

Exclusion from income | 525

Home | 523

Mutual funds | 564

Partnership interest | 541

Property received as | 559

Survivor annuities | 559, 575

Going-into-business expenses | 535, 541, 

542

Goodwill:

Amortization | 535, 946

Basis | 551

Depreciation | 534, 946

Sale of | 544

Government officials | 529

(See Officials)

Grants | 970

Gross estate | (Forms 706 & 709

instructions)

Gross income test, dependents | 501

Gross profit on sales | 911

Gross profit percentage | 225, 537

Ground rent | 530, 936

Group exemption letter | 557

Group health plans | 15-B

Group-term life insurance | 525, 15-B

Guaranteed payments to partners | 541

Guaranteed annual wage | 525

Guide dogs for the blind and deaf 

| 502, 554

H

Health insurance | 502, 535, 554, 969

Hearing aids | 502

Highway-use tax | 510

Highlights of tax changes | 553

Holding period | 523, 544, 550

Home:

Business use of | 529, 587, 911

Changed to rental | 527, 551, 946

Computer | 529

Construction | 523

First-time owner’s deductions | 530

Main | 523

Mortgage interest deduction | 530, 936

Purchase | 530

Repairs and improvements | 530

Sale of | 3, 523

Hope Credit | 970

Hospital insurance (See Social security)

Hospitalization | 502, 554

Household employers | 503, 926

Housekeeper, child care | 503, 926

Housing allowances | 525, 596

H.R. 10 plans | 560

I

Identification numbers:

Adoption | 501, 968

Aliens | 501, 515, 519

Employer | 225, 334, 583, 911

ERISA | 1004

Social security | 501

Impairment related | 529

Importers, excise taxes | 510

Improvements and repairs:

Assessments for | 527, 530

Business property | 535

Depreciation | 946

Home | 530

Rental property | 527

Selling home | 523

Inclusion amount | 463

Income (See particular type of income) 

| 525

Accrual of | 538

Advance income | 538

Alimony | 504

Clergy | 517, 525

Collection process | 594

Collection process (Spanish) | 594SP

Combat zone compensation | 3

Constructive receipt | 525, 538

Corporate | 542

Cost of goods sold | 334, 538, 911

Decedent, in respect of | 3, 559

Disability | 525, 554, 907

Effectively connected with U.S. trade or 

business | 519

Farm | 225

Foreign source | 54

Investment | 550

IRA | 590

Miscellaneous | 525

Mutual fund distributions | 564

Nontaxable | 3, 525, 554

Other than cash | 525

Partnership | 541

Railroad retirement benefits | 525, 554, 

915

Recapture of depreciation | 537, 544,

946

Rental | 527 

S corporations | (Form 1120-S 
2003 Guide to Free Tax Services 29

instructions)

Social security benefits | 525, 554, 915

Taxable | 3, 525

Taxes on death | 3, 559

Tips | 531, 1244

Unemployment compensation | 525

Unrelated business, exempt 

organization | 598

When included | 538

Income tax withholding | 505, 515

Indebtedness (See Debts)

Indefinite assignment | 463

Indian employment credit | 334, 954

Indian reservations, depreciation | 954

Individual retirement arrangements (IRAs) 

| 3, 535, 554, 590, 970

Inheritance (See Gifts, bequests, and 

inheritances)

Innocent spouse relief | 971

Installment:

Agreements | 594, 594SP

Obligations, disposition of | 537

Payments, estate tax | (Forms 706 & 

709 instructions)

Payments, highway-use tax | (Form 

2290)

Sales | 225, 537

Insurance:

Accident and health | 502, 535, 15-B

Beneficiaries | 559

Business, deductible and nondeductible 

premiums | 535

Casualty losses | 547

Employer-financed | 525

Estate tax | (Forms 706 & 709

instructions)

Foreign insurer, excise tax | 510

Group-term life | 525, 15-B

Health | 502 

Home | 529

Interest on policy | 550

Life | 525, 529, 535, 554

Long-term care | 502, 535

Malpractice | 529

Medical | 502, 535, 554

Medical for self-employed | 502, 535, 

554

Proceeds, life | 525

Thefts | 547

Interest income:

Below-market loans | 525, 550

Children’s | 929

Education savings bond program | 550, 

970

General | 550, 554

Original issue discount (OID) | 550, 

1212

Unstated | 537

Interest expense:

Below-market interest rate loans | 535

Business | 535, 911

Capitalization of | 535

Home mortgage | 530, 936

Limit on home mortgage 

interest | 936

Investment | 550, 564

Prepaid interest | 530, 535

Unstated | 537

International air travel facilities, excise tax 

| 510

International boycott | 514

Interrelated computations, estate and gift 

taxes | 904

Interview expenses:

Business | 535

Reimbursed | 525

Inventories | 538, 911

Substantially appreciated in value | 541

Uniform capitalization rules | 538

Investment:

Annuity contract | 575

Clubs | 550

Counsel fees | 550, 564

Income and expenses | 550, 564, 929

Interest | 550, 564

Property | 550

Investigation, crime | 529

Involuntary conversions | 544, 547, 551

Itemized deduction recoveries | 525

J

Job:

Empowerment zone employment credit 

| 334, 954

Expenses of looking for a new job | 529

Indian employment credit | 334, 954

Interview | 535

Moving expenses | 521, 535

Transportation expenses | 463, 911

Travel expenses | 463, 911

Welfare-to-work credit | 334, 954

Work opportunity credit | 334, 954

Joint and survivor annuities | 575, 939

Joint interests, gross estate | (Forms 706 

& 709 instructions)

Joint return:

Decedent and surviving spouse | 3, 501, 

559

Filing | 501

Nonresident aliens | 3, 519

Signing | 501

Jury duty fees | 525

K

Keogh plans | 535, 560

Kerosene tax credit | 378

Kerosene excise tax | 510

Kickbacks | 535

L

Land (See Real property)

Last-in first-out (LIFO) inventory method 

| 538, 911

Leases | 535

Cancellation | 521

Cars | 463

Leveraged | 535

Legal expenses (See Attorney fee)

Letters, memoranda, etc. | 544

Levy | 594, 594SP

Liabilities:

At-risk rules | 925

Contested | 535, 538

Partnership | 541

Release from | 525

License fees | 529

Lien | 594, 594SP

Lifetime learning credit | 970

Like-kind exchanges | 544, 550, 551

Limits:

Business meals | 463

Casualty, disaster, theft loss deductions 

| 547

Charitable contribution deductions | 526

Depreciation of business car | 463, 946

Depreciation of business truck or van 

| 946

Education credits | 970 

Entertainment | 463

Home mortgage interest deduction 

| 936
30 2003 Guide to Free Tax Services

IRA contributions and deductions | 590

Section 179 deduction | 946 

Liquidation:

Distributions in | 550

Partner’s interest | 541

Listed property | 534, 946

Cars | 463, 946

Livestock, raised | 225

Loan origination fees (points) | 523, 530, 

535, 551, 936

Loans, interest on:

Below market | 525, 535, 550

Business expense | 535, 911

Lobbying expenses | 529, 535

Exempt organizations | 557

Lockout and strike benefits | 525

Lodging and meals furnished to employees 

| 15-B, 587

Long-term care | 502

Long-term gains and losses | 550, 564

Losses:

Abandonment | 544

At-risk limits | 925

Bad debt | 535, 550

Business expenses | 535

Business property | 544

Casualty | 547

Condemnations | 544

Deposits | 529, 547, 550

Disaster | 547

Workbook | 584, 584B,

Estate | 559

Exchange of property | 544, 550, 551

Gambling | 529

Home, sale of | 523

Involuntary conversions | 544, 547, 551

IRA investments | 590

Mutual funds | 564

Net operating | 536, 542

Options | 550

Partnerships | 541

Passive activity limits | 925

Recovery in later year | 525, 547

Related party transactions | 550

Rental | 527

Reporting | 544, 547, 550

S corporations | (Form 1120-S 

instructions)

Sales and other dispositions | 544, 550, 

564

Section 1231 | 544

Section 1244 stock | 550

Small business corporation | 550

Straddles | 550

Thefts | 547

Wash sales rules | 550

Worthless securities | 550

Lost property | 547

Lump-sum payments:

Civil service annuities | 721

Employees’ plan | 554, 575

Retirement annuities | 554, 575

Rollover, tax-free | 575, 590

Special 5-year or 10-year tax options 

| 575

Wages | 525

Withholding on | 505

M

MACRS percentage tables | 946

Main home | 523

Maintenance of household:

Child and dependent care | 503

Divorced or separated | 504

Head of household | 501

Household employer | 926

Manufacturers excise taxes | 510

Marital deduction, estate and gift taxes 

| (Forms 706 & 709 instructions)

Market discount bonds | 550

Meals and lodging:

Business travel | 15-B, 463, 911

Charitable travel | 526

Furnished to employees | 15-B, 587, 

595

Medical expenses | 502, 554

Moving expenses | 3, 521, 535

Per diem rates | 1542

Standard meal allowance | 463

Taxability of reimbursements | 3, 525

Medical savings accounts | 969

Decedent | 559

Medical reimbursement plans | 15-B

Medical expenses | 502, 554, 934

Decedent | 502, 559

Guide dogs for blind and deaf | 502,

554 

Insurance for self-employed | 502, 535,

554

Medical savings accounts | 559, 969

Medicare | 502, 554

Reimbursement | 502

Schools, special | 502

Medical savings accounts | 535, 969

Medicare tax (See Social security)

Memberships, club dues | 463, 529, 535

Mileage allowances:

Business car | 463, 535, 911

Charitable contributions | 526

Medical expenses | 502, 554

Moving expenses | 521

Military personnel (See Armed forces)

Mineral property | 535

Minimum distributions:

IRAs | 590

Retirement plans | 575

Ministers (See Clergy)

Miscellaneous deductions | 529

Modified accelerated cost recovery system 

(MACRS) | 946

Modified adjusted gross income | 590

Mortgage assistance payments | 525, 936

Mortgage credit certificates | 530

Mortgaged property:

Sale of | 544

Contribution of | 526

Mortgages:

Basis | 551

Installment sales, assumed |537

Interest deduction, home | 530, 936

Property exchanged, effect on | 544

Moving expenses | 3, 521, 535

Foreign move | 3, 54, 516, 521

Multiple support agreement | 501

Municipal bonds | 550

Musical compositions, sale of | 544

Mutual funds | 550, 564

N

Net operating losses | 225, 536, 542

New York Liberty Zone | 954

Non-accountable plan | 463, 535

Nonbusiness bad debt | 550

Nondeductible contributions:

IRAs | 590

Qualified plans | 560

Nonresident aliens | 3, 513, 519, 559

Beneficiaries of estate | 559

Joint return | 519

Withholding on | 515
2003 Guide to Free Tax Services 31

Withholding on | 515

Nonresident U.S. citizens | 54, 593

Nontaxable exchanges | 544, 550

Nontaxable income | 525, 554

Notes, interest on | 550

Nursing services | 502, 554

O

Offers in compromise | 594, 594SP

Office expenses | 535

Office in home | 529, 587, 911

Officials | 463

Oil and gas property:

Depletion | 535

Drilling and development expenses 

| 535

Operating loss, net | 225, 536, 542

Options | 525, 550

Employee stock | 15-B

Stock | 550

Original issue discount (OID) | 527, 550, 

1212

Original issue discount obligations, list of 

| 1212

Out-of-pocket expenses, contributions 

| 526

Overseas:

Citizens and residents, U.S. | 54

Government, U.S., civilian employees 

| 516

Possessions, U.S. | 570

Scholars | 970

Tax highlights, citizens and residents 

| 593

Ozone-depleting chemicals excise tax | 510

P

Paid-in capital | 542

Parking fees and tolls | 463

Partial liquidation (See Liquidation)

Partners and partnerships | 541

Passive activities | 925

Patents:

Basis | 551

Depreciation | 946

Sale of | 544

Payments:

Beneficiaries, to | 559

Cash, large | 1544, 1544SP

Employee plans | 535, 560

Installment | 537, 594, 594SP

Large cash | 1544, 1544SP

Procedures | 594, 594SP

Peace Corps | 516, 525

Penalties:

Accuracy related | 911

Business | 594

Deductibility | 535

Early withdrawal of savings | 550

Estimated tax | 505

Excessive credit or refund claimed | 378

Failure to file | 911

Failure to pay | 911

Failure to report large cash payment 

| 1544, 1544SP

False or fraudulent claims | 378

Filing late | 510, 594, 594SP

Frivolous return | 911

Information reporting | 911

IRAs | 590

Overstating the value of donated 

property | 561

Paying late | 510, 594, 594SP

Tax deposits not made | 509, 510, 594, 

594SP

Trust fund recovery | 51, 225, 594, 

594SP

Underpayment of tax | 505

Pensions:

Civil service | 721, 939

Loans from employer plans | 554, 560, 

575

Lump-sum distributions | 554, 575, 

590, 721

Other than civil service | 575, 939

Self-employed, retirement plans for the 

| 560

SIMPLE IRA plan | 560, 590

Simplified employee pension (SEP) 

| 535, 560, 590

Small business, retirement plans for 

| 560

Tax-sheltered annuity plans | 571

Taxation of | 554, 575, 939

Withholding on | 15-A, 505, 575, 721

Percentage depletion | 225, 535

Per diem allowances | 463, 535, 1542

Performing artists | 529

Permanent and total disability:

Credit | 524, 554

Defined | 524

Personal exemption | 501, 554

Personal injury, damages | 525

Personal property:

Depreciation | 534, 946

Installment sales | 537

Repossessions | 537, 544

Sale of | 544

Section 1245 | 544

Physical presence test | 54

Points | 521, 523, 527, 530, 535, 551, 936

Political contributions | 529, 535

Pollution control facilities | 535

Possessions, U.S., exclusion for citizens in 

| 570

Post differentials | 516

Power of attorney | 556, 947

Practice before the IRS | 947

Premature distributions:

IRA | 554, 590

Qualified plan | 560

Pension plan | 575

Premium, bond amortization | 535, 550

Prepaid

Expenses | 225, 535, 538

Interest | 535, 936

Medical insurance | 502, 554

Present value, annuity | 721

Privacy act notice | 594, 594SP

Private foundations | 557

Prizes and awards | 525, 911

Professional expenses | 529

Prohibited transactions | 560, 590

Prompt assessment, request for | 559

Property:

Abandoned | 523, 544, 946

Appreciation in value | 544

Assessments | 535

Basis | 551, 946

Business, sale of | 544

Business use, partial | 463, 587

Capital assets | 544, 550

Casualty losses | 547

Change to business or rental use

| 551, 946

Charitable contributions | 526, 561

Community | 551, 555

Condemned | 544

Depletion | 535

Depreciable | 534, 946

Donated | 526, 561

Estate | 559, Form 706 instructions 
32 2003 Guide to Free Tax Services

Exchanges | 544, 550, 551

Gifts | (Forms 706 & 709 instructions)

Inherited | 544, 551, 559

Installment sales | 537

Intangible | 544, 551, 946

Investment | 550

Involuntary conversion | 544, 547, 551

Leased | 535, 946

Cars | 463

Like-kind | 544, 550, 551

Received for services | 525

Recovery property, percentage tables 

| 534, 946

Rental | 527

Repossessions | 523, 537, 544

Sales and exchanges | 544, 550

Section 179 | 946

Section 1231 gains and losses | 544

Section 1244 stock | 550

Section 1245 | 544

Section 1250 | 544

Section 1256 contracts | 550

Settlements | 504

Taxes | 535

Theft losses | 547

Prosecution, crime | 529

Protective clothing | 529

Protest, written, after examination | 556

Public assistance payments | 525

Public safety officer’s benefits | 525, 559

Puts and calls | 550

Q

Qualified domestic relations order (QDRO) 

| 504, 590

Qualified joint interest | 551

Qualified plans | 535, 560

Qualified zone academy bonds | 954

R

Railroad retirement benefits | 525, 554, 

575, 915

Real estate investment trust (REIT) | 550

Real estate mortgage investment conduit 

(REMIC) | 550, 938

Real estate taxes | 523, 530, 535

Real property:

Basis | 527, 551, 559

Depreciable | 534, 544, 946

Foreign investment in U.S. | 515, 519

Installment sales | 537

Passive activity rules | 925

Rental | 527

Repossessions | 537

Sale | 544

Taxes | 551

Trade or business | 544

Valuation, estate | (Forms 706 & 709 

instructions)

Rebates | 525

Recapture of depreciation | 544, 946

Records and record keeping requirements:

Car expenses | 463, 911

Charitable contributions | 526

Credit or refund claims | 378

Employee’s business expenses | 463

Employment taxes | 926

Entertainment | 463

Excise taxes | 510

Farmers | 225

Gambling | 529

Gifts, business | 463, 911

Home ownership | 530

Individuals | 552

Listed property | 534, 946

Medical | 502

Small business | 583, 911

Tip income | 531

Travel | 463, 911

Recoveries:

Bad debt | 535

Expenses | 525, 535

Income | 525

Itemized deductions | 525

Losses | 547

Tax refunds | 525

Recovery property | 534, 946

Disposition of | 544

Reforestation expenses | 225, 535

Refund feature, annuities | 939

Refunds:

Claim for | 3, 556

Decedents | 3, 559

Excise taxes | 378, 595

Net operating loss | 536, 542

State income tax | 525

Reimbursements and allowances:

Accountable plan | 463, 535

Car expenses | 3, 463

Casualty or theft losses | 547

Employee’s expenses | 3, 463

Involuntary conversions | 544

Medical expenses | 502

Moving expenses | 3, 521, 535

Nonaccountable plan | 463, 535

Travel, transportation | 3, 463, 535, 911

Reinvested dividends | 550, 564

Related persons:

Dependents | 501

Employer | 463

Gains and losses on transactions | 544, 

550, 564

Relatives, payments to | 503

Religious organizations, contributions to 

| 526

Religious workers, social security for 

| 15-A, 517, 533

Relocation payments | 521

REMICs | 550, 938

Renewal communities | 954

Renewal community emplyment credit 

| 954

Rental:

Advance rent | 527

Allowance, clergy | 517

Business expenses | 535

Cars | 463, 911

Expenses | 527

Home, use of | 527, 911

Income | 527

Passive activity rules | 527, 925

Property | 527

Sale of property | 544

Temporary, sale of home | 523

Repairs and improvements (See 

Improvements and repairs)

Repayment of items previously reported as 

income | 525

Replacement period:

Home | 3, 523

Involuntary conversions | 544, 547

Reporting requirements:

Additional taxes | 590

Cash payments, large | 1544, 1544SP

Charitable contributions | 526, 561

Sale of main home | 523

Tip income | 531

Withholding taxes | 15

Repossessions | 537, 544

Representation | 594, 594SP, 947

Required distributions:

IRAs | 590
2003 Guide to Free Tax Services 33

Retirement plans | 575

Research and experimentation expenses 

| 535

Residence (See Home)

Residence test, bona fide | 54

Resident aliens | 519

Retained earnings | 542

Retirement:

Bonds | 550, 590

Income | 554

IRAs | 554, 590

Self-employed individuals, plans for 

| 535, 560

Returns:

Child’s | 929

Corporation | 542

Decedent | 559

Dependent’s | 929

Donee information | 557

Due dates | 3, 509

Employment tax | 15

Estate | (Forms 706 & 709 instructions)

Excise | 509, 510

Exempt organization business income 

tax | 598

Fiduciary | 559

Gift | (Forms 706 & 709 instructions) 

Highway-use tax | 510

Income | 559, (Form 1041 instructions)

Individual, final | 559

Information | 334, 557, 911

Nonresident alien | 519

Partnership | 541

Political activity | 557

S corporations | (Form 1120-S 

instructions)

Rights as a taxpayer | 1, 1SP

Rollover of gain from sale of securities 

| 550

Rollovers to an IRA | 571, 575, 590

Royalty income | 525

S

S corporations | (Form 1120-S 

instructions)

Sailing permit | 513, 519

Salaries | 525, 535

Salary reduction arrangement | 560, 571, 

575, 590

Sales and exchanges:

Basis | 550, 551

Inherited property | 559

Nontaxable exchanges | 551

Taxable exchanges | 551

Business property | 544

Depreciable property | 544

Foreign move | 54

Holding period | 544, 550

Home | 523

Age 55 or older | 523, 554

How to report | 544, 550

Installment | 537

Investment property | 550

Like kind | 544, 550, 551

Mutual funds | 564

Nonresident aliens | 519

Nontaxable exchanges | 544, 550

Partnership interests | 541

Passive activity interests | 925

Patents and copyrights | 544

Personal items | 525, 911

Reporting | 544, 550

Sales tax | 535

Salvage value | 534

Savings account interest | 550

Savings bonds, U.S. | 550, 559, 970

Savings incentive match plans for 

employees (SIMPLE) plans:

Treatment by employees | 590

Schedule D (capital gain) tax computation 

| 550, 564

Scholars and scholarships | 7, 519, 520

Scrip dividends | 550

Section 179 expense deduction | 225, 911, 

946

Cars | 463

Section 197 intangibles | 225, 535

Section 401(k) plans | 560, 575

Section 444 election | 538

Section 501(c)(3) organizations | 557, 571

Section 911 exclusion | 54

Section 1231 gains and losses | 544

Section 1244 stock | 550

Section 1245 property | 544, 946

Section 1250 real property | 544

Section 1256 contracts | 550

Securities, worthless | 550

Seizure and sales | 594, 594SP

Self-employed medical insurance | 502,

535

Self-employed, medical savings account 

| 969

Self-employed, retirement plans for the 

| 535, 560, 590

Self-employment contribution act (SECA)

Clergy and religious workers | 517

Self-employment income | 517, 533, 911

Clergy | 517

Self-employment tax | 225, 533, 595, 911

Exemption from | 517

Selling expenses:

Home, sale of | 523

Separated spouses | 504 

Community property states | 504, 555

Separate maintenance decree | 504

Separation agreement, alimony | 504

Series E, EE, H, HH and I bonds | 550

Settlement costs | 530, 551

Severance damages | 544

Severance pay | 525

Sewer assessments (See Assessments for 

local improvements) | 530

Shareholder, corporation choosing not to 

be taxed | 550

Shareholder, mutual funds | 564

Ship passenger excise tax | 510

Short sale of stock | 550

Short tax year | 538

Depreciation | 534, 946

Short-term gains and losses | 544, 550, 

564

Sick pay (See also Disability):

Reporting | 15-A

Tax withholding on | 505

SIMPLE IRAs,

Treatment by employee | 590

SIMPLE retirement plans | 560

Simplified employee pension (SEP):

Treatment by employee | 590

Treatment by employer | 535, 560

Simplified method, pensions | 554, 575, 

721

Small business investment company stock 

| 550

Small business, record-keeping for a | 583

Small business stock | 550

Social security and Medicare:

Aliens | 519

Benefits | 525, 915

Christian science tax professionals | 517

Church employees | 557

Clergy, religious workers | 517, 533

Household workers | 926
34 2003 Guide to Free Tax Services

Social security numbers for dependents 

| 501

Social security numbers for earned 

income tax credit | 501, 596

Taxable benefits | 525, 554, 915

Taxes | 15, 15-A, 225, 533, 926

Withholding on benefits | 505

Withholding requirements | 15, 15-A

Sole proprietorship, sale of | 544

Spanish language publications:

Earned income tax credit | 596SP

How to prepare the federal income tax 

return | 579SP

Nonbusiness disaster, casualty, and 

theft loss workbook | 584SP

The collection process | 594SP

Your rights as a taxpayer | 1SP

Special depreciation allowance | 225, 463, 

527, 946

Specialized small business investment 

company | 550

Sporting events, college | 526

Spouse:

Alien | 3, 519

Business expenses for | 463

Child and dependent care credit | 503

Divorced | 504

Exemption for | 501, 504

IRA for | 590

Medical expenses of | 502, 554

Surviving | 559

Standard deduction | 501, 554, 929

Standard meal allowance | 463

Standard mileage rate | 463

Start-up costs, amortization | 535, 541, 

542

Starting a business | 583

State or local bonds | 550

State income tax refunds | 525

State or local income taxes | 535

State or local transfer taxes | 550

Statute of limitations | 594, 594SP

Stock:

Basis | 550, 551

Charitable donation of | 526, 561

Compensation paid in | 525, 535

Distribution of | 542, 550

Dividends | 542, 550

Employee options | 525

Exchange of (trades) | 544, 550

Identifying | 550

Investment income and expense | 550

Mutual funds | 564

Options | 550

Sale of | 550

Short sales | 550

Small business | 550

Splits | 550

Wash sales | 550, 564

Worthless | 550

Stockholders:

Contribution by | 542

Distribution of property | 542

Investments | 550

Meetings | 529

S corporations | (Form 1120-S 

instructions)

Transactions with corporations | 542

Stolen or embezzled property | 547

Storm damage | 547

Straddles | 550

Straight line depreciation | 534, 946

Street assessment (See Assessments for 

local improvements)

Strike and lockout benefits | 525

Students:

Charitable contribution for expenses of 

| 526

Credits — Hope, lifetime learning | 970

Exemptions | 501

Expenses | 970

Interest paid on loans | 970

Scholarships | 970

Subchapter C corporations (See 

Corporations)

Subchapter S corporations (See 

S corporations)

Subdivisions of land | 551

Subscriptions, professional journals 

deductibility | 529, 535, 911

Substantiation:

Appraisals:

Donated property | 526, 529, 561

Car expenses | 463, 911

Casualty or theft losses | 547

Entertainment expenses | 463, 911

Gift expenses | 463, 911

Itemized deductions | 552

Travel, transportation | 463, 911

Supplemental unemployment benefits 

| 525

Supplies and materials | 535, 911

Support, decree of | 504

Support of dependents | 3, 501, 504

Survivor:

Annuities | 559, 575, 721

Of federal employee | 721

Of federal retiree | 721

Survivors, general | 559

T

Tangible property, depreciation of | 946

Tax calendars for 2004 | 509

Tax changes, highlights of 2003 | 553

Tax computation (capital gain) | 550

Tax counsel fees | 504, 529

Tax court | 556

Tax credit (See Credits)

Tax-exempt:

Bond financing | 954

Interest | 550, 564

Mutual funds | 564

Organizations | 557

Scholarship | 970

Tax-free exchanges | 544, 550, 551

Tax home | 463

Tax obligations, aliens | 519, 927

Taxpayer Advocate Service | 1, 1SP, 17, 

225, 334, 594, 594SP

Tax penalties, estimated tax | 505

Tax preparation | 529

Tax-sheltered annuities | 571

Tax shelters | 550

Tax treaties:

Canada | 597

Reduced tax rates | 519, 686, 901

U.S. citizens and residents overseas 

| 54

Withholding on nonresident aliens 

| 515, 519

Tax withholding (See Withholding)

Tax year | 538

Taxable and nontaxable income | 3, 525

Taxable estate | (Forms 706 & 709 

instructions)

Taxable gift | (Forms 706 & 709 

instructions)

Taxable income defined | 525

Taxable income, estate | 559, (Form 1041 

instructions)

Taxes:

Business | 535, 583
2003 Guide to Free Tax Services 35

Deductibility | 530, 535

Employment | 15, 15-A, 225, 509, 926

Estate | (Form 706 instructions)

Income | 559, (Form 1041 

instructions)

Estimated | 225, 505, 542, 595, 911

Excise | 225, 378, 510, 590

Foreign | 514

IRAs | 590

Real estate | 530

Refunds | 378, 525, 556, 595

Self-employment | 225, 517, 533, 595, 

911

Unrelated business income | 598

Teachers, education expenses | 501

Telephone: 

Cellular | 529, 535

Excise tax | 510

Residential | 529, 535, 911

Temporary assignment | 463

$10,000, cash payments over | 1544, 

1544SP

Ten-year averaging, lump-sum pensions 

| 554, 575

Termination, estate | 559

Theft losses | 547

Threat of condemnation | 544

Timber, coal, and iron ore:

Depletion | 535

Sale of | 225, 544

Tips | 531, 1244

Report of, for employees | 531, 1244

Reporting rules for employers | 531

Tax withholding | 505

Tools | 529

Trademarks and trade names | 535, 544, 

551, 946

Trades, nontaxable | 550, 551

Transfer, moving expenses | 521

Transient | 463

Transportation and travel expenses:

Business | 3, 463, 535, 595, 911

Charitable | 526

Educational | 3, 970

Employee | 463

Investment-related | 529, 550

Medical | 502

Moving | 3, 521

Reimbursements | 535, 911

Rental | 527

Reservists | 463

Transportation of persons or property by 

air, excise tax | 510

Transportation of persons by ship | 510

Treasury bills, bonds, and notes | 550, 559

Treaties, tax | 54, 515, 519, 597, 901

Treaty countries, certification for reduced 

tax rates | 686

Trucks:

Depreciation | 946

Highway-use tax | 510

Retail excise tax | 510

Trust fund recovery penalty | 594, 594SP

Trusts (See Estates and trusts)

Tuition reduction | 970

U

Unadjusted basis, depreciation | 463, 527, 

946

Underpayment penalty | 505

Undistributed capital gains | 564

Unemployment compensation | 525

Withholding on | 505

Unemployment tax (FUTA) | 15, 926

Uniform capitalization rules | 551

Uniforms | 3, 526, 529

Union:

Assessments | 529

Benefits | 525

Dues | 529

Unpaid expenses | 535

Unrealized receivables, partnership | 541

Unrelated business income, exempt 

organization | 598

Unstated interest | 537

U.S. court of federal claims | 556

U.S. court of appeals for the federal circuit 

| 556

U.S. district court | 556

U.S. real property interest | 515, 519

U.S. tax court | 556

Useful life, depreciation | 534

Usurious interest | 550

Utilities | 535

V

Vacation homes | 527

Vacation pay, accrual | 535, 538

Valuation:

Casualty or theft losses | 547

Charitable contributions | 526, 561

Condemnation | 544

Employer-provided car | 535

Estate | (Forms 706 & 709 instructions)

Fringe benefits | 15-B

Gifts | (Forms 706 & 709 instructions)

Inventories | 538, 911

Value, fair market, defined | 537, 544,

551, 561, 564, 946

Vandalism loss | 547

Vehicles, heavy:

Highway-use tax | 510

Retail excise tax | 510

Veterans’ benefits | 525

Educational | 970

VISTA | 525

W

Wage bracket method of withholding 

| 15-A

Wagering, excise taxes on | 510

Wages | 525

Wash sales | 550

Welfare benefit funds | 535

Welfare-to-work credit | 334, 954

Withholding:

Aliens | 515

Backup | 505, 550, 594, 594SP

Correct | 919

Credit for | 505

Dispositions, U.S. real property interest 

| 515, 519

Employer information, reporting 

requirements | 15

Exemption from | 505, 929

Foreign corporations | 515

Foreign partnerships | 515

Forms W-2, W-2C, W-4, or W-5 | 15, 

505, 919

Forms W-4P, W-4S | 15-A, 505

Fringe benefits | 15-A, 15-B, 505,

Gambling winnings | 505

Household employees | 926

IRA distributions | 575, 590

Distributions, qualified plan | 560

Methods | 15, 15-A

Nonresident aliens | 515, 519

Pensions and annuities | 15-A, 505,

575, 721

Salaries | 15, 505

Sick pay | 15-A, 505
36 2003 Guide to Free Tax Services

Social security benefits | 505

Tips | 505, 531

Unemployment compensation | 505

Wages | 15, 505, 919

Work clothes | 529

Work opportunity credit | 334, 954

Workers’ compensation insurance | 525

Worthless debts:

Business | 535

Nonbusiness | 550

Y

Year deductible | 538

Year taxable | 538

Your rights as a taxpayer | 1, 1SP

Numbers

179 expense deduction | 911, 946

403(b) plans | 571

401(k) plans | 560, 575

444 election | 538

501(c)(3) organizations | 557, 571

911 exclusion | 54

1231 gains and losses | 544

1244 stock | 550

1245 property | 544

1250 real property | 544

1256 contracts | 550

$10,000, cash payments over | 1544, 

1544SP

Your direct link to tax information – 24/7

www.irs.gov

Get up to date information on your taxes, including:

And Lots More!

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English and Spanish

• Tax Forms and Publications

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Department of the Treasury

Internal Revenue Service

Publication 910 (Rev. 1-2004)

Catalog Number 15315W

www. irs .gov