Department of the Treasury

Internal Revenue Service

Publication 910 (Rev. 2005)

Catalog Number 15315W

www. irs .gov

12-
We’re doing more than ever to help you find out if you’re eligible for 

the Earned Income Tax Credit. Discover all the ways we’re here to help. 

Call us, talk to your tax preparer, or go to www.irs.gov/eitc and have 

the EITC Assistant walk you through each eligibility requirement.

Too bad everything can’t be as easy as 

knowing if you qualify for the EITC.

Internal Revenue Service

www.irs.gov/eitc 1.800.TAX.1040
2005 GUIDE TO FREE TAX SERVICES

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

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

• IRS Website .................................................................. 2

• IRS CD-ROM................................................................. 2

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

• Accessible IRS Tax Products......................................... 3

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

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

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

Requesting IRS Records under the Freedom of 

Information Act .......................................................5

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

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

• Tax Counseling for the Elderly (TCE)............................. 6

• Low-Income Taxpayer Clinics (LITC) Grant Program .... 6

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

• Community Outreach Tax Education.............................. 7

• Tax Information for Students......................................... 7

• Practitioner Education ................................................... 7

IRS TeleTax - Recorded Information by Phone .......7

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

• Millions Eligible for Free File.......................................... 8

• Electronic Federal Tax Payment System (EFTPS) .......... 8

Copies or Transcripts of Prior Year Returns ..........9

• Requesting Documents ............................................... 10

• Tax Return Transcript .................................................. 10

• Tax Account Transcript................................................ 10

• Photocopies of Tax Returns ........................................ 10

Installment Plan to Pay Your Taxes ......................10

Small Business Tax Workshops ............................11

• Small Business Newsletter.......................................... 11

IRS Telephone Numbers ........................................12

• Toll-free Service .......................................................... 12

• International Service ................................................... 12

• Before You Call the IRS ............................................... 13

• Before You Hang Up.................................................... 13

TeleTax Topic Menu Numbers ..........................14-15

Tax Publications ..............................................16-23

Index of Topics and Related Publications ......24-40
2005 GUIDE TO FREE TAX SERVICES

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 at other 

community locations. Most material can also be obtained via the 

Internet, 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, e-news subscriptions, and 

much more. There are also special 

information sections like “Where’s 

My Refund?” The website is available 24 hours a day, 7 days a 

week.

IRS CD-ROM:

• Publication 1796, IRS Tax Products CD, contains current and 

prior year tax forms, publications, 

and other useful tax information. It can be ordered from 

the National Technical Information Service (NTIS), by calling 

toll free (877) 233-6767 or via 

the Internet at www.irs.gov/

cdorders. (There is a fee for 

this item when ordered through 

the Internet.)

• Publication 3207, Small Business Resource Guide CD. 

This CD contains information 

The IRS Mission

“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.”

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.

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2005 GUIDE TO FREE TAX SERVICES

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 (free 

product).

Community Based Outlet 

Programs (CBOP): 

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 and office 

supply stores,

• Your company,

• Your credit union,

• Grocery stores and pharmacies,

• Your local government offices.

Businesses that would like to 

participate in CBOP should call 

(916) 974-5833.

Accessible IRS Tax Products:

Most IRS tax products are available in alternative formats such as 

Braille, large print, HTML, ACSII 

text, and speech friendly PDF. We 

recommend that you visit the accessibility page on www.irs.gov for 

a current list of accessible products available by download. If 

you cannot find the product you 

are looking for on our website, 

please call our forms ordering 

number at (800) 829-3676.

E-News Subscription Services:

Free e-News Subscription services are available at www.irs.gov 

– click on “The Newsroom,” then 

“IRS Subscriptions.” You can subscribe to any of the electronic publications listed below.

NOTE: In order to protect your 

privacy, the email addresses 

you furnish will only be used 

to provide the subscriptions 

you request and to make 

improvements to this service. 

Your email addresses will not 

be sold, used, or shared for 

any other purpose or with any 

other party.

IRS Guidewire: Guidewire subscribers are notified by email 

when the IRS issues advance 

copies of tax guidance such as 

Revenue Rulings, Revenue Procedures, Announcements, and 

Notices.

IRS Digital Dispatch: The Digital 

Dispatch provides national tax 

news and information about developments on the IRS website.

e-News for Tax Professionals: 

Provides email to tax professionals with localized, targeted, and 

immediate information specifically 

for their clients’ states.

IRS Newswire: Subscribe to IRS 

Newswire to get news releases by 

email from the IRS National Media 

Relations Office.

Employee Plans News: The 

quarterly newsletter is geared to 

retirement plan professionals, providing them with information about 

current developments and upcoming events within the retirement 

plan area.

Tax Stats Dispatch Mailing List: 

Get announcements covering the 

most recent tax statistics. 

Small Business/Self Employed 

(SB/SE) Mailing List: Provides 

information about IRS small business and self-employed outreach 

products and programs.

FSLG Newsletter: A newsletter 

from the Federal, State, & Local 

Governments office of the Tax 

Exempt and Government Entities 

Operating Division, it is issued 

periodically during the year and 

provides information about de-

3

IRS tax forms and publications are available

24 hours a day, 7 days a week 

through the IRS website, www.irs.gov.
2005 GUIDE TO FREE TAX SERVICES

velopments and events related to 

government entities.

EO Update: A newsletter from 

the Exempt Organizations Division 

of the Tax-Exempt and Government Entities Operating Division, 

EO Update is issued periodically 

through the year and provides information of interest to tax-exempt 

organizations and tax practitioners 

who represent them.

Quick Alerts e-file Messaging 

System: QuickAlerts is an electronic tool that communicates 

important messages to Authorized 

IRS e-file Providers. To find out 

more details about this system, including how to subscribe, visit the 

IRS website at www.irs.gov and 

insert the keyword, QuickAlerts. 

Retirement News for Employers: This quarterly newsletter 

provides information about establishing and maintaining retirement 

plans and is targeted at business 

owners.

Exempt Organizations Update: 

For tax professionals and representatives of tax-exempt organizations who want email updates and 

alerts from the IRS about developments in exempt organizations 

tax law and regulations, upcoming 

IRS training, events, and more.

Taxpayer Advocate Service

The Taxpayer Advocate Service is 

an independent organization within 

the IRS that promptly handles tax 

problems which have not been 

resolved through normal channels. 

There is at least one local Taxpayer Advocate in each state. The 

Taxpayer Advocate Service can 

help if you are facing:

• An economic harm or 

significant cost (including fees 

for professional representation), 

• A more than 30-day delay to 

resolve the issue, or

• An action, response, or 

resolution deadline that was 

promised by the IRS but has 

not been met.

Their service is free, confidential, and tailored to meet 

your needs, and is available 

for individuals as well as businesses. Qualified taxpayers will 

receive personalized service from 

a knowledgeable Advocate who 

will listen to your situation, help 

you understand what needs to be 

done to resolve it, and stay with 

you every step of the way until 

your problem is resolved. Because they are part of the IRS, 

Advocates know the tax system 

and how to navigate it. Because 

they are independent within the 

IRS, Advocates are impartial. 

You can gain quick access to 

the Taxpayer Advocate Service 

by calling their toll–free number: 

(877) 777-4778, (TTY/TTD (800) 

829-4059). You can call or write 

to your local Taxpayer Advocate, 

whose address and phone number are listed in your local telephone directory and in Publication 

1546, How to Get Help With Unresolved Tax Problems. You can 

also file Form 911, Application for 

Taxpayer Assistance Order, with 

the Taxpayer Advocate Service, 

or request that an IRS employee 

complete Form 911 on your behalf. To learn more about the 

Taxpayer Advocate Service, go to 

www.irs.gov/advocate.

The Office of Privacy

The Office of Privacy ensures 

that the personally identifiable 

information you provide to the 

IRS is protected. We review IRS 

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 information you give us 

is safe and that it is used only for 

the purposes we identify to you.

The Office of Privacy 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 email address: 

privacy@irs.gov.

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2005 GUIDE TO FREE TAX SERVICES

Requesting IRS Records under the 

Freedom of Information Act

The Freedom of Information Act 

(FOIA), 5 U.S.C. § 552, provides 

public access to agency records 

unless protected from disclosure 

by one of the FOIA’s nine exemptions or three exclusions. The 

FOIA applies to records created 

by federal agencies and does not 

cover records held by Congress, 

the courts, or state and local government agencies.

The Internal Revenue Service 

complies with the FOIA by:

• Maintaining publicly available 

materials on the Internet in the 

IRS Electronic Reading Room, 

• Staffing the IRS Freedom of 

Information Reading Room at 

1111 Constitution Avenue, NW, 

Washington, DC 20224 (call 

(202) 622-5164), and

• Responding to written requests 

for agency records not available 

in the Reading Room. 

While many FOIA requests are 

processed without charge to the 

requester, some may be subject to 

fees for duplication and, in some 

cases, for the time expended 

searching for and reviewing responsive records. Additional information relating to fees and other 

FOIA access questions may be 

found at irs.gov/foia/index.html.

Taxpayer Education and 

Assistance Programs

The IRS has programs that offer 

free assistance with tax return 

preparation and tax counseling 

using volunteers trained by IRS 

partners. 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 in tax law, help 

prepare basic tax returns for lowincome taxpayers.

VITA sites are generally located 

at community and neighborhood 

centers, libraries, schools, shopping malls, and other convenient 

locations. Many 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,

•	Screening taxpayers,

• Recruiting volunteers,

• Conducting quality reviews,

• Assisting with computers,

• Interpreting languages,

• 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.

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 

5
2005 GUIDE TO FREE TAX SERVICES

and instructors. Generally, these 

sessions are offered in December 

through January each year before 

the actual filing season starts.

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 nonprofit 

organizations that receive grants 

from the IRS. Grant funds are 

used to reimburse volunteers for 

out-of-pocket expenses including 

transportation, meals, and other 

expenses incurred by them in providing tax counseling assistance 

at locations convenient to the 

taxpayers. For more information 

on the TCE program or to find the 

locations, dates and hours of the 

closest TCE site, call the IRS tollfree number at (800) 829-1040.

As part of the IRS-sponsored 

Tax Counseling for the Elderly 

program, The AARP Foundation 

offers an AARP Tax-Aide counseling program at more than 10,000 

sites nationwide during the filing 

season. Trained with IRS material 

and certified by an IRS examination, AARP Tax-Aide 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) 227-7669, or access the 

Internet site locator at www.aarp.

org/taxaide/home.html.

Low-Income Taxpayer Clinics

If you are a low income taxpayer 

and cannot afford professional tax 

assistance, you may qualify for 

help from Low Income Taxpayer 

Clinics (LITCs). LITCs are operated by tax exempt organizations 

or programs at accredited law, 

business, and accounting schools. 

LITCs represent low income taxpayers before the IRS and inform 

individuals for whom English is 

a second language about their 

federal income tax responsibilities 

for free or for a nominal charge. To 

find the clinic nearest you, see the 

LITC pages on www.irs.gov/advocate or IRS Publication 4134, Low 

Income Taxpayer Clinic List. 

Low-Income Taxpayer Clinics 

(LITC) Grant Program

The IRS awards qualifying organizations matching grants of up 

to $100,000 a year to enhance 

access to legal services for low 

income taxpayers. 

To learn more about the grant 

program, call (800) 829-3676 and 

order a free copy of IRS Publication 3319, LITC Grant Application 

Package and Guidelines. Publication 3319 is also available on the 

IRS website at 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 in 

tax law are an important part of 

these programs. For times and 

locations of the available services 

in your community, call the IRS at 

(800) 829-1040.

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

Check out the educational website 

called Understanding Taxes. 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 

	 6	 
2005 GUIDE TO FREE TAX SERVICES

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 in English and 

Spanish 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.

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.

IRS TeleTax - Recorded 

Information by Phone

(800) 829-4477

Recorded tax information on 149 

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 14 – 15 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 70 million taxpayers who 

filed their tax returns electronically 

in 2005 using IRS e-file, the most 

accurate, safest, and fastest way 

to file your taxes. It offers a fast 

refund (and 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, 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 

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2005 GUIDE TO FREE TAX SERVICES

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, 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. If you don’t qualify for 

any of the Free File Options, 

our e-file Partners for Individuals page offers low-cost tax 

preparation and e-filing at www.

irs.gov.

• 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 

Free File allows qualified taxpayers to prepare and e-file their own 

tax returns for free using commercially available online tax preparation software. In 2005, more 

than 5 million Americans took 

advantage of Free File. Taxpayers can review online tax software 

provider offerings and determine 

if they are eligible by visiting the 

Free File page at www.irs.gov.

Electronic Federal Tax Payment 

System (EFTPS)

EFTPS is the easiest way to pay 

all your federal taxes, and, best of 

all, it’s free. 

With EFTPS, individuals and 

businesses can make tax payments using the Internet or phone. 

Here’s how it works: On the 

date you select, EFTPS will

move funds electronically, from 

your account to the U.S.Treasury. 

Your funds stay in your account 

until the date you select, and 

your tax records will be automatically updated with the IRS when 

the funds move. You can do this 

on the Internet, with EFTPS Online, or when you use EFTPS by 

Phone.

Use EFTPS Online to make a 

payment, cancel a payment, review your payment history, change 

bank account information, and 

more. EFTPS Online is easy to 

navigate and secure (requires a 

browser with 128 bit encryption,

as well as three pieces of unique 

information for identification and 

authorization: 

• your taxpayer identification 

number (Employer Identification Number or Social Security 

Number), 

• an EFTPS Personal Identification Number (PIN) and 

• Internet password).

EFTPS offers you total convenience. It’s available 24 hours a 

day, 7 days a week, and you can 

schedule payments in advance 

(businesses up to 120 days in 

	 8	 
2005 GUIDE TO FREE TAX SERVICES

advance of the tax due date, and 

individuals up to 365 days).

You can choose to use EFTPS 

through a service offered by a 

financial institution. If you decide 

to make tax payments using a service offered by a financial institution, you will instruct them to move 

funds from your account to the

Treasury’s account. (Not all financial institutions offer EFTPS. 

Please check with your financial 

institution to learn if they offer 

EFTPS and if you are eligible to 

use it. Some may charge a fee.)

Tax professionals, accountants, 

and payroll companies are discovering the added benefits for using 

EFTPS. There are four easy ways 

to make payments for your

clients:

• EFTPS Online

Use the Internet to make tax 

payments. Registration is not 

required for professionals; taxpayers must be enrolled. Visit 

www.eftps.gov for more information.

• EFTPS by Phone

Available to taxpayers or tax 

professionals who wish to 

make debit payments using the 

telephone. Registration is not 

required for professionals; taxpayers must be enrolled.

• EFTPS Batch Provider

Designed for payroll processors 

and tax professionals who wish 

to enroll their clients and submit batches of payments using 

free Windows-based software.

Registration is required and all 

clients must be enrolled.

• EFTPS Bulk Provider

Designed for payroll processors 

who initiate frequent payments 

from and desire automated enrollment through an Electronic 

Data Interchange (EDI) compatible system.

To enroll in EFTPS visit www.

eftps.gov. For additional information, call EFTPS Customer Service 

at (800) 555-4477 (Spanish (800) 

733-4829).

The IRS produces a number of 

documents that provide additional 

information on EFTPS:

• Form 9779, Business Enrollment Form

• Form 9783, Individual Enrollment Form

• Publication 966, The Secure 

Way to Pay Your Federal Taxes 

(for taxpayers)

• Publication 4169, Tax Professional Guide to EFTPS (for tax 

professionals)

 You can order these free by 

calling (800) 829-3676.

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, 

Request for Copy of Tax Return, 

or Form 4506-T, Request for Transcript of Tax Return, by mail or fax.

Requesting Documents

You can get transcripts, Form 

W-2 information, and verification 

of nonfiling by calling (800) 829-

1040, or by mailing or faxing Form 

4506T, Request for Transcript of 

Tax Return. (See instructions on 

Form 4506T.) If you need photocopies of your tax return, use 

Form 4506, Request for Copy of 

Tax Return. This form must be 

mailed with payment to the appropriate address in the instructions. You can even direct the 

documents to a third party. These 

forms can be obtained by calling 

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2005 GUIDE TO FREE TAX SERVICES

(800) TAX-FORM (800) 829-3676. 

They are also available 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 

30 days, 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 6 weeks after filing a 

current return before requesting 

copies. Copies are generally available for returns filed in the current 

year and past 6 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 the due date, 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. You 

can check the current interest rate 

by going to www.irs.gov, keyword 

interest rate. 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 

10 
2005 GUIDE TO FREE TAX SERVICES

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.

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2005 GUIDE TO FREE TAX SERVICES

IRS Telephone Numbers

Toll-free Service

IRS Toll-free Tax Assistance 

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

Our normal hours of operation are Monday through Friday 

8:00 a.m. to 8:00 p.m. local time. (Alaska and Hawaii should 

follow Pacific Time.)

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

Business taxpayers that have questions relating to their entity 

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

and Spanish).

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

Call IRS to apply for an Employer Identification Number 

(EIN).

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

IRS TE/GE Customer Account Services ......(877) 829-5500

You may direct your technical and procedural questions 

concerning charities and other non-profit organizations to 

IRS Tax Exempt and Government Entities Customer Account 

Services.

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 Canada ........................................(215) 516-2000

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

Community Based Outlet Program ..........(916) 974-5833

International Service

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. Telephone assistance is availabel Monday through 

Friday from 6:00 a.m. until 11:00 p.m. Eastern time (non-tollfree numbers).

Questions concerning Individual Taxpayer Identification Numbers (ITIN) .....................(215) 516-4846

fax: (215) 516-1171

(non-toll-free numbers)

Overseas Offices

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 

2005 filing season. Call your local U.S. embassy or consulate 

or visit one of our offices to find out the dates, times, and 

locations for assistance. 

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

(within Germany)......030-8305-11361140

FAX: 49-30-8305-1145

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

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

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

12 
2005 GUIDE TO FREE TAX SERVICES

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 may 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 several methods to evaluate our 

telephone service. One method is to record telephone calls (for quality assurance purposes only). 

A random sample of recorded calls is selected 

for review through the quality assurance process. 

Other methods include listening to live calls in 

progress and choosing a random selection of customers for participation in a Customer Satisfaction 

Survey.

13
14 2005 GUIDE TO FREE TAX SERVICES 

# Subject # Subject # Subject # Subject

IRS Help Available

101 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 Tax Help for Small Business and the 

 Self-employed

104 Taxpayer Advocate Program - Help for Problem 

Situations

106 Tax Relief for Victims of 

Terrorist Attacks

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 (Nonfilers) 

154 Forms W-2 and Form 

1099-R (What to Do If 

Not Received)

155 Forms and Publications 

- How to Order

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

159 Prior Year(s) Form W-2 

(How to Get a Copy of)

Collection

201 The Collection Process

202 How to Pay Your Taxes

203 Failure to Pay Child Support, Federal Nontax 

and State Income Tax

204 Offers-in-Compromise

205 Innocent Spouse Relief 

(and Separation of Liability and Equitable 

Relief)

Alternative Filing

Methods

251 Electronic Signatures

252 Electronic Filing

253 Substitute Tax Forms

254 How to Choose a Paid 

Tax Preparer

256 Filing Business Returns 

Electronically

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 

Savings Account

311 Power of Attorney 

Information

312 Disclosure Authorizations

313 Qualified Tuition Programs (QTPs)

351 Who Must File?

352 Which Form - 1040, 

1040A, or 1040EZ?

353 What is Your Filing Status?

354 Dependents

355 Estimated Tax

356 Decedents

357 Tax Information for 

Parents of Kidnapped 

Children

Types of Income

401 Wages and Salaries

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 Residential and 

Vacation Property

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 in Securities 

(Information for Form 

1040 Filers)

430 Exchange of Policyholder Interest for Stock

Adjustments to Income

451 Individual Retirement 

Arrangements (IRAs)

452 Alimony Paid

453 Bad Debt Deduction

455 Moving Expenses

456 Student Loan Interest 

Deduction

457 Tuition and Fees Deductions

458 Education Expense Deduction

Itemized Deductions

501 Should I Itemize? 

502 Medical and Dental 

Expenses

503 Deductible Taxes

504 Home Mortgage Points

505 Interest Expense

506 Contributions

TeleTax

Recorded Tax Information

(800) 829-4477

Topic Menu Numbers
2005 GUIDE TO FREE TAX SERVICES 15

# Subject # Subject # Subject # Subject

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 Casualty, Disaster, and 

Theft 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

610 Retirement Savings 

Contributions Credits

IRS Notices

651 Notices - What to Do

652 Notice of Under 

Reported Income - CP 

2000

653 IRS Notices and Bills, 

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 Individual Taxpayer 

Identification Number 

- Form W-7

858 Alien Tax Clearance

Tax Information for 	 	

Puerto Rico Residents

(in Spanish)

901 Quien Está Obligado 

a Radicar la Planilla 

Federal de Contribución Sobre Ingreso en 

Puerto Rico? (Who Is 

Required to File a U.S. 

Income Tax Return in 

Puerto Rico?)

902 Deducciones y Créditos 

Para Contribuyentes en 

Puerto Rico (Deductions and Credits for 

Puerto Rico Taxpayers)

903 Impuestos Patronales 

(Federales) en Puerto 

Rico (Federal Employment Taxes in Puerto 

Rico)

904 Asistencia Contributiva 

Para Residentes de 

Puerto Rico

 (Volunteer Tax Assistance for Puerto Rico 

Residents)
2005 GUIDE TO FREE TAX SERVICES

Tax Publications

IRS Publication 1, 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 by 

calling (800) 829-3676.

Publication 553, Highlights 

of 2005 Tax Changes, is a 

collection of the latest tax law 

changes that can affect your 

tax situation in the 2006 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 

(800) 829-3676.

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, 944.

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 (Circular PR), Guía Contributiva 

Federal Para Patronos Puertoriqueños 

(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 

apply to sole proprietors and statutory 

employees. This publication takes you 

step-by-step through each part of Schedule C (Form 1040).

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

4562.

16 
2005 GUIDE TO FREE TAX SERVICES

Pub 463, Travel, Entertainment, Gift, 

and Car Expenses — identifies business-related 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 

them, and how to treat insurance reimbursements you may receive for medical 

care. This publication includes information 

on how to treat impairment-related work 

expenses, health insurance premiums if 

you are self-employed, and the health coverage tax credit.

Form 1040 (Schedule A), 8885.

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 2006

Pub 510, Excise Taxes for 2006 — 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 Immigration 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.

17
2005 GUIDE TO FREE TAX SERVICES

Pub 517, Social Security and Other 

Information for Members of the Clergy 

and Religious Workers — discusses 

social security and Medicare taxes and 

exemptions from 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, 3903.

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 534, Depreciating Property Placed 

in Service Before 1987 — This publication explains how to figure and claim deductions for depreciation under ACRS.

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 carryover. 

Form 1045.

18 
2005 GUIDE TO FREE TAX SERVICES

Pub 537, Installment Sales — explains 

the tax treatment of installment sales. 

(Installment sales are sales where part or 

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 — discusses the 

general tax laws that apply to ordinary domestic 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 2005 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.

19
2005 GUIDE TO FREE TAX SERVICES

Pub 561, Determining the Value of Donated Property — defines fair market value and provides other guidance that may 

help you determine the value of 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 lump sum 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 578, Tax Information for Private 

Foundations and Foundation Managers

— explains what a private foundation is 

and discusses relevant tax information.

Form 990.

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 

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, Capital Construction Fund for 

Commercial Fisherman — 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.

20 
2005 GUIDE TO FREE TAX SERVICES

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 live or 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, English-Spanish 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 deductible 

expenses, tax credits, and taxable and 

non-taxable income.

Pub 908, Bankruptcy Tax Guide — explains the federal tax obligations of persons filing bankruptcy petitions and 

bankruptcy estates.

Forms 982, 1040, 1041.

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 website 

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 

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.

21
2005 GUIDE TO FREE TAX SERVICES

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 

website.

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 the general 

rules for depreciating property, 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 Backpay 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, Health Savings Accounts and 

Other Tax Favored Health Plans — explains what a health savings account is, 

who can have one, and how to report 

it. This publication also explains Archer 

medical savings accounts and Medicare 

Advantage MSAs.

Forms 8853, 8889, 1099-SA, 5498-SA.

Pub 970, Tax Benefits for Education

— 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 qualify for 

relief and how to apply for relief.

Form 8857.

Pub 972, Child Tax Credit — explains 

the child tax credit and provides Child Tax 

Credit Worksheets for those who cannot 

use the worksheet in their Form 1040 or 

Form 1040A instructions. It also provides 

the information on additional child tax 

credit and worksheets that may be necessary in the preparation of Form 8812.

Pub 1004, Identification Numbers Under 

ERISA

22 
2005 GUIDE TO FREE TAX SERVICES 23

Pub 1045, Information for Tax Practitioners

Pub 1212, List of Original Issue Dis-

count 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 publica-

tion 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 pay-

ments 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 Efec-

tivo 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 publica-

tions listed below. 
2005 GUIDE TO FREE TAX SERVICES

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.

24 

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, 

334, 538, 552

Accrual method | 225, 538

ACRS recovery tables | 534

Actuarial tables | 939

Additional child tax credit | 972

Address change | 17

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 | 596, 

596SP

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 and 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

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) | 225, 

946

Alternative minimum tax:

Corporations | 542

Individuals | 929

Amended returns:

U.S. citizens abroad | 54

Amortization | 535

Bond premium | 529, 550

Farmers | 225

Start-up costs | 535, 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 | 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
2005 GUIDE TO FREE TAX SERVICES 25

Extension of deadline | 3

Filing returns | 3

Home, sale of | 3, 523

Income taxes on death | 3, 559

Itemized deductions | 3

Moving expenses | 3, 521

Reservists | 463, 529

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 

| 225, 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

B

Babysitters | 926

Backup withholding | 505, 550

Bad debts:

Business | 334, 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 | 225, 550, 551

Adjusted | 225, 527, 530, 534, 551, 

564, 946

Bonds | 550, 551

Cars | 463

Casualty and theft losses | 547, 551

Condemnation | 544

Cost | 551, 564

Depreciable | 225, 946

Farm property | 225

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

Health savings accounts | 969

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 | 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:

Employee | 525

Employer’s deduction | 535

Books and records, business | 583

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)

Business (See also Deductions):

Bad debt | 334, 529, 535

Casualty losses | 547

Expenses | 334, 463, 535, 555

Overseas | 953

Sale of interest | 544

Start-up costs | 535, 542

Taxes | 334, 535, 583

Use of car | 334, 463, 529

Use of home | 334, 529, 587

C

Cafeteria plans | 15-B

Calendars, tax | 509

Calls and puts | 550

Campaign contributions:

Business expense | 535

Received | 525

Canadian tax treaty | 597
26 2005 GUIDE TO FREE TAX SERVICES 

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 contributions | 542

Capital expenditures:

Basis | 551, 946

Business | 535

Farm business expense | 225

Medical expense | 502

Capital gain distributions | 550, 564, 929

Capital gains and losses (See Gains and 

losses)

Capitalizing expenses | 535

Effect on basis | 551

Car expenses:

Business | 334, 463, 535

Carpool | 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 | 334

Investment interest expense | 550

Net operating loss | 536, 542

Termination of estate | 559

Carrying charges:

Capitalizing | 535

Straddles | 550

Cash method of accounting | 225, 334, 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, 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)

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, 579 SP

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

Excise taxes | 378, 510

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, 

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 website)

Combat zone:

Compensation exclusion | 3

Decedents | 3, 559 

Extension of deadline | 3

Filing returns | 3

Telephone excise taxes | 510

Commercial revitalization deduction | 954

Commissions | 525

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, 

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)

Health savings account | 969

Individuals | 526

Non-cash | 526, 561

Coverdell ESAs | 970

Medical Savings Accounts | 969
2005 GUIDE TO FREE TAX SERVICES 27

Partnership | 541

Retirement plans (including IRAs) 

| 334, 535, 560, 571, 590

Valuation | 561

Convention expenses | 463, 526

Conversion to rental property:

Personal home | 523, 527, 551

Cooperatives:

Income from | 225

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

Court, appeal to after examination | 556

Covenant not to compete (See Compete, 

agreement not to)

Credits:

Adoption | 968

Alcohol fuel | 334, 378

Biodiesel fuel | 334

Child and dependent care | 503

Child Tax Credit | 3, 17, 579SP, 972

Clean-fuel vehicle | 334

Disabled access | 334

Disability, permanent and total | 524

Earned income | 3, 555, 596, 596SP

Elderly, for | 524, 554

Electric vehicle | 334, 535

Empowerment zone employment 

 | 334, 954

Enhanced oil recovery | 334

Estimated tax | 505

Foreign tax | 514

General business | 334, 542

Health coverage tax | 502

Hope Credit | 970

Indian employment | 334, 954

Investment | 334

Liberty zone business employee | 334, 

954

Lifetime learning | 970

Low income housing | 334

Low sulfur diesel fuel production | 334

Mortgage interest | 530, 936

New markets | 954

Railroad retirement tax, overpaid | 505

Reforestation | 334

Renewal community employment | 954

Renewable electricity and refined coal 

production | 334

Research | 334

Retirement savings contributions | 590

Social security tax, overpaid | 505

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:

As income | 334

Compensation for | 525

Medical expenses | 502

Severance | 544

Danger pay | 516

Daycare 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 | 334, 535, 550

Canceled | 225, 334, 525, 551, 908

Qualified real property business | 334

Decedents | 3, 559, 950

Medical expenses | 502, 559

Declining balance depreciation method 

| 534, 946

Deductions:

Amortization | 535

Bad debts:

 Business | 334, 529, 535

 Nonbusiness | 334, 529, 550

Business use of home | 334, 529, 587

Car expenses | 334, 463

Casualty losses | 527, 547

Charitable contributions | 526, 561

Community property | 555

Convention expenses | 463

Corporations | 542

Dental expenses | 502

Depletion | 225, 535

Depreciation | 225, 463, 527, 534, 946

Disaster area losses |225, 547

Dividends received | 542

Domicile | 555

Educational assistance exclusion | 970

Educational expenses | 3, 970

Employee benefit programs | 334, 535

Employee business expenses | 463, 

529

Employee’s pay | 334, 535

Enterprise communities | 954

Entertainment expenses | 463

 Meals and entertainment | 334, 463, 

535

Estate tax | 950
28 2005 GUIDE TO FREE TAX SERVICES 

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

Health savings account | 969

Home leave | 516

Home mortgage interest deduction 

| 530, 936

Income, expenses of producing | 529, 

550

Interest expenses | 535, 550, 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

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 | 225, 946

Self-employed health insurance | 502, 

535, 541

Special depreciation allowance | 225, 

946

Standard | 501

Student loan interest | 970

Taxes | 334, 530, 535

Thefts | 334, 547

Travel, transportation | 3, 334, 463, 

Deferrals, elective | 560, 571, 590

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 | 225, 463, 527, 551, 946

Car | 225, 463, 946

Farm property | 225, 946

Home, business use | 587, 946

Home, rental use | 527

Indian reservations, used on | 954, 946

Methods | 534, 946

Modified accelerated cost recovery 

system (MACRS) | 225, 463, 527, 

946

Recapture | 334, 544

Sale of depreciable property | 334, 544

Trucks and vans | 463, 946

Determination letters:

Employee benefit plans | 560

Exempt organizations | 557

Development expenses for oil, gas, and 

geothermal wells | 535

Diesel fuel excise tax | 510

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:

Business property | 334

Depreciable property | 224, 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

Health savings account | 969

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)
2005 GUIDE TO FREE TAX SERVICES 29

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 | 225, 551

Income for granting | 225

Economic performance rule | 538

Education:

Educator expenses | 529, 970

Expenses | 3, 334, 529, 535, 970

Business | 334

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 | 334, 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) 

 | 225, 334, 510, 583, 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, 

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

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

Individual | 505, 520

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
30 2005 GUIDE TO FREE TAX SERVICES 

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 | 334, 535

Going into business | 225, 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

Investment | 550

Medical | 502

Personal | 529

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 | 225, 334, 526, 527, 537, 

544, 551, 561

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

Settlement costs | 551

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

Gift taxes | (Forms 706 & 709 

instructions)

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

Fixing-up expenses, home | 523

Flexible spending arrangements | 969

Flood losses | 547

Foreclosures | 225, 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 | 334, 525, 535, 15-B

Withholding | 505

Fuel tax credit or refund | 225, 378

Fulbright grants | 54, 970

Funeral expenses:

Estates | 559

Individuals | 502, 529

G

Gains and losses | 225, 544, 550

Basis | 550, 551

Capital gains | 550, 564, 919
2005 GUIDE TO FREE TAX SERVICES 31

Casualty losses | 527, 547

Condemnation | 225, 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 farm property | 225

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

Gasoline excise taxes | 510

General business credit | 225, 334

General depreciation system (GDS) | 225, 

527, 946

General rule, annuities | 939

Gift expenses | 463

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 | 225, 535, 

542

Goodwill:

Amortization | 535

Basis | 551

Depreciation | 534

Sale of | 544

Government officials | 529

(See Officials)

Grants | 970

Gross estate | (Forms 706 & 709 

instructions)

Gross income test, dependents | 501

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 coverage tax credit | 502

Health insurance | 502, 535, 554, 969

Health reimbursement arrangements | 969

Health savings accounts | 969

Hearing aids | 502

Highway-use tax | 510

Highlights of tax changes | 553

Holding period | 225, 523, 544, 550

Home:

Business use of | 529, 587

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, 596SP

H.R. 10 plans | 560

I

Identification numbers:

Adoption | 501, 968

Aliens | 501, 515, 519

Business taxpayers | 334

Employer | 225, 334, 583

ERISA | 1004

Social security | 501

Impairment related | 502, 529

Importers, excise taxes | 510

Improvements and repairs:

Assessments for | 527, 530

Business property | 535

Depreciation | 225, 946

Home | 530

Rental property | 527

Selling home | 523

Inclusion amount | 463

Income (See particular type of income) | 525

Accrual of | 538

Advance payments reported as income | 538

Alimony | 504

Business | 334

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

Decedent, in respect of | 3, 559

Disability | 525, 554, 907

Effectively connected with U.S. trade 

or business | 519
32 2005 GUIDE TO FREE TAX SERVICES 

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 | 334, 537, 

544, 946

Rental | 527 

S corporations | (Form 1120-S 

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 | 946, 

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 | (Forms 

2290, 2290SP, 2290-FR)

Sales | 225, 537

Insurance:

Accident and health | 502, 535, 15-B

Beneficiaries | 559

Business, deductible and 

nondeductible premiums | 334, 535

Casualty losses | 547

Employer-financed | 525

Estate tax | (Forms 706 & 709 

instructions)

Farm business, deductible premiums 

 | 225

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

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 | 334, 538, 946

Farm inventory | 225

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 | 225, 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

Travel expenses | 463

 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
2005 GUIDE TO FREE TAX SERVICES 33

Nonresident aliens | 3, 519

Signing | 501

Jury duty fees | 525

K

Keogh plans | 535, 560

Kerosene excise tax | 510

Kickbacks | 334, 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 | 334, 544, 550, 551

Limits:

Business meals | 463

Casualty, disaster, theft loss deductions 

| 547

Charitable contribution deductions 

| 526

Depreciation of business car | 225, 

463, 946

Depreciation of business truck or van | 

225, 946

Education credits | 970 

Entertainment | 463

Home mortgage interest deduction | 936

IRA contributions and deductions | 590

Section 179 deduction | 225, 946 

Liquidation:

Distributions in | 550

Partner’s interest | 541

Listed property | 225, 534, 946

Cars | 225, 463, 946

Livestock, raised | 225

Loan origination fees (points) | 523, 530, 

535, 551, 936

Loans, interest on:

Below market | 525, 535, 550

Business expense | 334, 535

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, 584SP

Estate | 559

Exchange of property | 544, 550, 551

Farm | 225

Gambling | 529

Home, sale of | 523

Involuntary conversions | 225, 544, 

547, 551

IRA investments | 590

Mutual funds | 564

Net operating | 225, 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 | 225, 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,

Charitable travel | 526

Furnished to employees | 15-B, 587, 

Medical expenses | 502, 554
34 2005 GUIDE TO FREE TAX SERVICES 

Moving expenses | 3, 521

Per diem rates | 1542

Standard meal allowance | 463

Taxability of reimbursements | 3, 525

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 | 969

Medicare tax (See Social security)

Memberships, club dues | 463, 529, 535

Mileage allowances:

Business car | 334, 463, 535

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) | 225, 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 | 334, 536, 542

New York Liberty Zone | 954

Nonaccountable 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

Nonresident U.S. citizens | 54, 593

Nontaxable exchanges | 225, 544, 550, 551

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, 946

Officials | 463

Oil and gas property:

Depletion | 535

Drilling and development expenses 

| 535

Operating loss, net | 536, 542

Options | 525, 550

Employee stock | 15-B

Stock | 550

Organization expenses | 541, 542

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:

Business | 594

Deductibility | 535

Early withdrawal of savings | 550

Estimated tax | 505

Failure to report large cash payment 

| 1544, 1544SP

Filing late | 510, 594, 594SP

IRAs | 590

Overstating the value of donated 

property | 561
2005 GUIDE TO FREE TAX SERVICES 35

Paying late | 510, 594, 594SP

Tax deposits not made | 509, 510, 594,

	 594SP

Trust fund recovery | 51, 594, 	 	

	 594SP

Underpayment of tax | 334, 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 | 225, 544

Physical presence test | 54

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

Political contributions | 529, 535

Pollution control facilities | 225, 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 | 550

Prepaid

Expenses | 225, 334, 535, 538

Interest | 535, 936

Medical insurance | 502, 554 

Present value, annuity | 721

Privacy act notice | 594, 594SP, Notice

609, Notice 609SP

Privacy, Confidentiality | 1, 1SP 

Private foundations | 557, 990

Prizes and awards | 525

Professional expenses | 529

Prohibited transactions | 560, 590

Prompt assessment, request for | 559

Property:

Abandoned | 523, 544, 946

Appreciation in value | 544

Assessments | 225, 535

Basis | 225, 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 | 225, 534, 946

Donated | 526, 561

Estate | 559, Form 706 instructions 

Exchanges | 225, 544, 550, 551

Gifts | (Forms 706 & 709 instructions)

Inherited | 544, 551, 559

Installment sales | 537

Intangible | 225, 535, 544, 551, 946

Investment | 550

Involuntary conversion | 225, 544, 547, 

551

Leased | 535, 946

 Cars | 463

Like-kind | 225, 544, 550, 551

Received for services | 525

Recovery property, percentage tables 

| 534, 946

Rental | 527

Repossessions | 523, 537, 544

Sales and exchanges | 225, 544, 550

Section 179 | 225, 946

Section 1231 gains and losses | 225, 544

Section 1244 stock | 550

Section 1245 | 225, 544

Section 1250 | 225, 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 real property business debt | 334

Qualified tuition program | 970

Qualified zone academy bonds | 954

R

Railroad retirement benefits | 525, 554, 

575, 915

Real estate investment trust (REIT) | 550
36 2005 GUIDE TO FREE TAX SERVICES 

Real estate mortgage investment conduit 

(REMIC) | 550, 938

Real estate taxes | 334, 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 | 334, 544, 946

Records and recordkeeping requirements:

Car expenses | 463

Charitable contributions | 526

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 | 225, 534, 946

Disposition of | 544

Reforestation expenses | 225, 535

Refund feature, annuities | 939

Refunds:

Claim for | 3, 17, 556

Decedents | 3, 559

Excise taxes | 225, 378

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 employment credit 

| 954

Rent expenses | 535

Rental:

Advance rent | 527

Allowance, clergy | 517

Cars | 463

Expenses | 334, 527

Home, use of | 527

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

Involuntary conversions | 225, 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

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 and 

employees, plans for | 535, 560

Returns:

Child’s | 929

Corporation | 542

Decedent | 559

Dependent’s | 929

Donee information | 557

Due dates | 3, 509
2005 GUIDE TO FREE TAX SERVICES 37

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, 2290, 2290SP, 

2290-FR

Income | 559, (Form 1041 

instructions)

Individual, final | 559

Information | 334, 557

Nonresident alien | 519

Partnership | 541

Political activity | 557

S corporations | (Form 1120-S 

instructions)

Steps to complete | 17

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 | 334, 525, 535

Salary reduction arrangement | 560, 571,

575, 590

Sales and exchanges:

Basis | 550, 551

 Farm property | 225

 Inherited property | 559

 Nontaxable exchanges | 551

 Taxable exchanges | 551

Business property | 544

Depreciable property | 544

Foreign move | 54

Holding period | 225, 544, 550

Home | 523

How to report | 225, 544, 550

Installment | 537

Investment property | 550

Like kind | 225, 544, 550, 551

Mutual funds | 564

Nonresident aliens | 519

Nontaxable exchanges | 225, 544, 550

Partnership interests | 541

Passive activity interests | 925

Patents and copyrights | 544

Personal items | 525

Reporting | 225, 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 | 334, 225, 

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 | 225, 544

Section 1244 stock | 550

Section 1245 property | 225, 544, 946

Section 1250 real property | 225, 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 individuals and employees, 

retirement plans for | 535, 560, 590

Self-employment contribution act (SECA)

Clergy and religious workers | 517

Self-employment income | 517

Clergy | 517

Self-employment tax | 225

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 | 225, 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 | 225, 544, 

550, 564

Sick pay (See also Disability):

Reporting | 15-A

Tax withholding on | 505

SIMPLE IRAs:

Treatment by employee | 535, 590

Treatment by employer | 535

SIMPLE retirement plans | 535, 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, recordkeeping for a | 583

Small business stock | 550
38 2005 GUIDE TO FREE TAX SERVICES 

Social security and Medicare:

Aliens | 519

Benefits | 525, 915

Christian Science tax professionals 

| 517

Church employees | 557

Clergy, religious workers | 517

Household workers | 926

Social security numbers for 

dependents | 501

Social security numbers for earned 

income tax credit | 501, 596, 596SP

Taxable benefits | 525, 554, 915

Taxes | 15, 15-A, 225, 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 | 334, 463

Start-up costs, amortization | 225, 535, 

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 | 225, 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

Foreign | 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

Substantiation:

Appraisals:

 Donated property | 526, 529, 561

Car expenses | 463, 911

Casualty or theft losses | 547

Entertainment expenses | 463

Gift expenses | 463

Itemized deductions | 552

Travel, transportation | 463

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 | 225, 

946

Tax calendars for 2006 | 509

Tax changes, highlights of 2005 | 553

Tax computation (capital gain) | 550

Tax counsel fees | 504, 529

Tax court | 556

Tax credit (See Credits)

Tax-exempt:

Bond financing | 954
2005 GUIDE TO FREE TAX SERVICES 39

Interest | 550, 564

Mutual funds | 564

Organizations | 557

Scholarship | 970

Tax-free exchanges | 225, 544, 550, 551

Tax home | 463

Tax obligations, aliens | 519, 927

Taxpayer Advocate Service | 1, 1SP, 17, 

225, 334, 535, 594, 594SP, 579SP

Tax penalties, estimated tax | 225, 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 | 334, 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

Deductibility | 17, 225, 334, 530, 535

Employment | 15, 15-A, 225, 334, 509, 

926

Estate | (Form 706 instructions)

Income | 559, (Form 1041 instructions)

Estimated | 225, 505, 542

Excise | 225, 378, 510, 590

Foreign | 514

IRAs | 590

Real estate | 530

Refunds | 378, 525, 556

Self-employment | 225, 517

Unrelated business income | 598

Taxpayer Privacy Rights | 1, 1SP

Telephone: 

Cellular | 529

Excise tax | 510

Residential | 529, 535

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 | 225, 535

Sale of | 225, 544

Tips | 531, 1244, 1244-PR

Report of, for employees | 531, 1244,

1244-PR

Reporting rules for employers | 531

Tax withholding | 505

Tools | 529

Trademarks and trade names | 535, 544, 

551

Trades, nontaxable | 550, 551

Transfer, moving expenses | 521

Transient | 463

Transportation and travel expenses:

Business | 3, 334, 463, 535

Charitable | 526

Educational | 3, 970

Employee | 463

Investment-related | 529, 550

Medical | 502

Moving | 3, 521

Reimbursements | 463, 535

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 | 225, 946

Expenses | 334

Highway-use tax | 510

Retail excise tax | 510

Trust fund recovery penalty | 594, 594SP

Trusts (See Estates and trusts)

Tuition and fees deduction | 970

U

Unadjusted basis, depreciation | 225, 463, 

527, 946

Underpayment penalty | 505

Undistributed capital gains | 564

Unemployment compensation | 525

Withholding on | 505

Unemployment tax (FUTA) | 15, 926

Uniform capitalization rules | 225, 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, 946

Usurious interest | 550

Utilities | 535

V

Vacation homes | 527
40 2005 GUIDE TO FREE TAX SERVICES 

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

Value, fair market, defined | 225, 537, 

544, 551, 561, 564

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, W-4 SP, or 

W-5, W-5 SP | 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

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, 334

Numbers

179 expense deduction | 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
We’re doing more than ever to help you find out if you’re eligible for 

the Earned Income Tax Credit. Discover all the ways we’re here to help. 

Call us, talk to your tax preparer, or go to www.irs.gov/eitc and have 

the EITC Assistant walk you through each eligibility requirement.

Too bad everything can’t be as easy as 

knowing if you qualify for the EITC.

Internal Revenue Service

www.irs.gov/eitc 1.800.TAX.1040
Department of the Treasury

Internal Revenue Service

Publication 910 (Rev. 2005)

Catalog Number 15315W

www. irs .gov

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