Department of the Treasury

Internal Revenue Service

Publication 595

(Rev. October 2021)

Cat. No. 15171E

Capital 

Construction 

Fund for 

Commercial 

Fishermen

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Contents

Introduction .............................. 1

Important Reminder ........................ 1

Capital Construction Fund ................... 1

How To Get Tax Help ....................... 5

Future Developments

For the latest information about developments related to 

Pub. 595, such as legislation enacted after it was 

published, go to IRS.gov/Pub595.

Introduction

This publication discusses the fishing vessel Capital Construction Fund (CCF). The CCF is a special investment 

program administered by the National Oceanic and Atmospheric Administration (NOAA), National Marine Fisheries Service (NMFS), and the Internal Revenue Service 

(IRS). This program allows fishermen to defer paying income tax on certain income they invest in a CCF account 

and later use to acquire, build, or rebuild fishing vessels.

This publication does not discuss all the tax rules that 

may apply to your fishing trade or business. For general 

information about the federal tax laws that apply to individuals, including commercial fishermen, who file Schedule C (Form 1040), see Pub. 334, Tax Guide for Small 

Business. If your trade or business is a partnership or corporation, see Pub. 541, Partnerships, or Pub. 542, Corporations.

Important Reminder

Photographs of missing children. The IRS is a proud 

partner with the National Center for Missing & Exploited 

Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring 

these children home by looking at the photographs and 

calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Capital Construction Fund

The following sections discuss CCF accounts and the 

types of bookkeeping accounts you must maintain when 

you invest in a CCF account. They also discuss the income tax treatment of CCF deposits, earnings, and withdrawals.

Sep 28, 2021
CCF Accounts

This section explains who can open a CCF account and 

how to use the account to defer income tax.

Opening a CCF account. If you are a U.S. citizen and 

you own or lease one or more eligible vessels (defined 

later), you can open a CCF account. However, before you 

open your CCF account, you must enter into an agreement with the Secretary of Commerce through the NMFS. 

This agreement will establish the following.

• Agreement vessels. Eligible vessels named in the 

agreement that will be the basis for the deferral of income tax.

• Planned use of withdrawals. Use of CCF funds to acquire, build, or rebuild a vessel.

• CCF depository. Where your CCF funds will be held.

You can request an application kit or get additional information from NMFS at the following address.

NOAA/NMFS, Financial Services Division, F/MB5

Capital Construction Fund Program

1315 East-West Highway

Silver Spring, MD 20910-3282

You can obtain information on the Capital Construction Fund Program at the following website: 

www.fisheries.noaa.gov/national/funding-andfinancial-services/capital-construction-fund-program.

You can call NMFS to request an application kit or 

get additional information at 301-427-8784. Their 

fax number is 301-713-1939.

Eligible vessels. There are two types of vessels that 

may be considered eligible, those weighing 5 tons or more 

and those weighing less than 5 tons. For each type, certain requirements must be met.

Vessel weighing 5 tons or more. To be considered 

eligible, the vessel must meet all the following requirements.

• Be built or rebuilt in the United States.

• Be documented under the laws of the United States.

• Be used commercially in the fisheries of the United 

States.

• Be operated in the foreign or domestic commerce of 

the United States.

Vessel weighing less than 5 tons. A small vessel, 

weighing at least 2 net tons but less than 5 net tons, must 

meet all the following requirements to be considered eligible.

• Be built or rebuilt in the United States.

• Be owned by a U.S. citizen.

• Have a home port in the United States.

• Be used commercially in the fisheries of the United 

States.

Deferring tax on CCF deposits and earnings. You can 

use a CCF account to defer income tax by taking the following actions.

• Making deposits to your CCF account from taxable income.

• Excluding from income deposits assigned to certain 

accounts (discussed later).

• Making withdrawals from your CCF account when you 

acquire, build, or rebuild fishing vessels.

• Reducing the basis of fishing vessels you acquire, 

build, or rebuild to recapture amounts previously excluded from tax.

Reporting requirements. Beginning with the tax 

year in which you establish your agreement, you 

must report annual deposit and withdrawal activity 

to the NMFS on NOAA Form 34-82. The Form 34-82 must 

be signed and be attached to a complete copy of the tax 

return (as filed with the IRS). This form is due within 30 

days after you file your federal income tax return even if 

no deposits or withdrawals are made. For more information, contact the NMFS at the address or phone number 

given earlier.

Types of Accounts You Must Maintain 

Within a CCF

This section discusses the three types of bookkeeping accounts you must maintain when you invest in a CCF account. Your total CCF deposits and earnings for any given 

year are limited to the amount attributed to these three accounts for that year.

Capital account. The capital account consists primarily 

of amounts attributable to the following items.

1. Allowable depreciation deductions for agreement vessels.

2. Any nontaxable return of capital from either (a) or (b), 

below.

a. The sale or other disposition of agreement vessels.

b. Insurance or indemnity proceeds attributable to 

agreement vessels.

3. Any tax-exempt interest earned on state or local 

bonds in your CCF account.

Capital gain account. The capital gain account consists 

of amounts attributable to the following items reduced by 

any capital losses from assets held in your CCF account 

for more than 6 months.

1. Any capital gain from either of the following sources.

a. The sale or other disposition of agreement vessels 

held for more than 6 months.

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Page 2 Publication 595 (October 2021)
b. Insurance or indemnity proceeds attributable to 

agreement vessels held for more than 6 months.

2. Any capital gain from assets held in your CCF account for more than 6 months.

Ordinary income account. The ordinary income account consists of amounts attributable to the following 

items.

1. Any earnings (without regard to the carryback of any 

net operating or net capital loss) from the operation of 

agreement vessels in the fisheries of the United 

States or in the foreign or domestic commerce of the 

United States.

2. Any capital gain from the following sources reduced 

by any capital losses from assets held in your CCF 

account for 6 months or less.

a. The sale or other disposition of agreement vessels 

held for 6 months or less.

b. Insurance or indemnity proceeds attributable to 

agreement vessels held for 6 months or less.

c. Any capital gain from assets held in your CCF account for 6 months or less.

3. Any ordinary income (such as depreciation recapture) 

from either of the following sources.

a. The sale or other disposition of agreement vessels.

b. Insurance or indemnity proceeds attributable to 

agreement vessels.

4. Any interest (not including tax-exempt interest from 

state and local bonds), most dividends, and other ordinary income earned on the assets in your CCF account.

Tax Treatment of CCF Deposits

This section explains the tax treatment of income used as 

the basis for CCF deposits.

Capital gains. Do not report any transaction that produces a capital gain if you deposit the net proceeds into your 

CCF account. This treatment applies to either of the following transactions.

• The sale or other disposition of an agreement vessel.

• The receipt of insurance or indemnity proceeds attributable to an agreement vessel.

Depreciation recapture. Do not report any transaction 

that produces depreciation recapture if you deposit the 

net proceeds into your CCF account. This treatment applies to either of the following transactions.

• The sale or other disposition of an agreement vessel.

• The receipt of insurance or indemnity proceeds attributable to an agreement vessel.

Earnings from operations. Report earnings from the 

operation of agreement vessels on your Schedule C 

(Form 1040) even if you deposit part of these earnings 

into your CCF account. You subtract any part of the earnings you deposited into your CCF account from the 

amount you would otherwise enter as taxable income on 

Form 1040 or 1040-SR, line 15 (for 2021). Next to line 15, 

enter “CCF” and the amount of the deposits. Do not deduct these CCF deposits on Schedule C (Form 1040).

If you deposit earnings from operations into your 

CCF account and you must complete other forms 

such as Form 6251, Alternative Minimum 

Tax—Individuals, or a worksheet for Schedule D (Form 

1040), you will need to make an extra computation. When 

the other form or worksheet instructs you to refigure the 

amount from Form 1040 or 1040-SR, line 15 (for 2021) 

when line 15 is zero, do not forget to subtract the CCF 

write-in amount when you figure the negative amount that 

would go on line 15 if taxable income could be negative.

Self-employment tax. You must use your net profit or 

loss from your fishing business to figure your self-employment tax. Do not reduce your net profit or loss by any 

earnings from operations you deposit into your CCF account.

Partnerships and S corporations. The deduction for partnership earnings from operations deposited into a CCF account is separately stated 

on Schedule K (Form 1065), line 13d, and allocated to the 

partners on Schedule K-1 (Form 1065), box 13 (for 2021).

The deduction for S corporation earnings deposited into a 

CCF account is separately stated on Schedule K (Form 

1120-S), line 12d, and allocated to the shareholders on 

Schedule K-1 (Form 1120-S), box 12 (for 2021).

Tax Treatment of CCF Earnings

This section explains the tax treatment of the earnings 

from the assets in your CCF account when the earnings 

are redeposited or left in your account. However, if you 

choose to withdraw the earnings in the year earned, you 

must generally pay income tax on them.

Capital gains. Do not report any capital gains from the 

sale of capital assets held in your CCF account. This includes capital gain distributions reported to you on Form 

1099-DIV or a substitute statement. However, you should 

attach a statement to your tax return to list the payers and 

the amounts and to identify the capital gains as “CCF account earnings.”

Interest and dividends. Do not report any ordinary income (such as interest and dividends) you earn on the assets in your CCF account. However, you should attach a 

statement to your return to list the payers and the amounts 

and to identify them as “CCF account earnings.”

If you are required to file Schedule B (Form 1040), you 

can add these earnings to the list of payers and amounts 

on line 1 or line 5 (for 2021) and identify them as “CCF 

earnings.” Then, subtract the same amounts from the list 

and identify them as “CCF deposits.”

CAUTION

!

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Publication 595 (October 2021) Page 3
Tax-exempt interest. Do not report tax-exempt interest from state or local bonds you held in your CCF account. You are not required to report this interest on Form 

1040 or 1040-SR, line 2a (for 2021).

Tax Treatment of CCF Withdrawals

This section discusses the tax treatment of amounts you 

withdraw from your CCF account during the year.

Qualified Withdrawals

A qualified withdrawal from a CCF account is one that is 

approved by NMFS for either of the following uses.

• Acquiring, building, or rebuilding qualified vessels (defined next).

• Making principal payments on the mortgage of a qualified vessel.

• NMFS will not approve amounts withdrawn to purchase nets not continuously attached to the vessel, 

such as seine nets, gill set-nets, and gill drift-nets.

• NMFS will approve amounts withdrawn to purchase 

trawl nets.

Qualified vessel. This is any vessel that meets all of the 

following requirements.

• The vessel was built or rebuilt in the United States.

• The vessel is documented under the laws of the United States.

• The person maintaining the CCF account agrees with 

the Secretary of Commerce that the vessel will be operated in U.S. foreign trade, Great Lakes trade, noncontiguous domestic trade, or the fisheries of the United States.

How to determine the source of qualified withdrawals. When you make a qualified withdrawal, the amount is 

treated as being withdrawn in the following order from the 

accounts listed below.

1. The capital account.

2. The capital gain account.

3. The ordinary income account.

Excluding qualified withdrawals from tax. Do not report on your income tax return any qualified withdrawals 

from your CCF account.

Reduce the depreciable basis of fishing vessels 

you acquire, build, or rebuild when you make a 

qualified withdrawal from either the capital gain or 

the ordinary income account.

Nonqualified Withdrawals

A nonqualified withdrawal from a CCF account is generally any withdrawal that is not a qualified withdrawal. 

Qualified withdrawals are defined under Qualified 

Withdrawals, earlier.

CAUTION

!

Examples. Examples of nonqualified withdrawals include the following amounts from either the ordinary income account or the capital gain account.

• Amounts remaining in a CCF account upon termination of your agreement with NMFS.

• Amounts you withdraw and use to make principal payments on the mortgage of a vessel if the basis of that 

vessel and the bases of other vessels you own have 

already been reduced to zero.

• Amounts determined by the IRS to cause your CCF 

account balance to exceed the amount appropriate to 

meet your planned use of withdrawals. You will generally be given 3 years to revise your plans to cover this 

excess balance.

• Amounts you leave in your account for more than 25 

years. There is a graduated schedule under which the 

percentage applied to determine the amount of the 

nonqualified withdrawal increases from 20% in the 

26th year to 100% in the 30th year.

How to determine the source of nonqualified withdrawals. When you make a nonqualified withdrawal from 

your CCF account, the amount is treated as being withdrawn in the following order from the accounts listed below.

1. The ordinary income account.

2. The capital gain account.

3. The capital account.

Paying tax on nonqualified withdrawals. In general, 

nonqualified withdrawals are taxed separately from your 

other gross income and at the highest marginal tax rate in 

effect for the year of withdrawal. However, for taxpayers 

who are not corporations, nonqualified withdrawals treated as made from the capital gain account are taxed at a 

rate that cannot exceed 20%.

Partnerships and S corporations. Taxable 

nonqualified partnership withdrawals are separately stated on a statement attached to Schedule K (Form 1065), line 20c, and allocated to the partners 

on Schedule K-1 (Form 1065), box 20 (for 2021). Taxable 

nonqualified withdrawals by an S corporation are separately stated on a statement attached to Schedule K 

(Form 1120-S), line 17d, and allocated to the shareholders on Schedule K-1 (Form 1120-S), box 17 (for 2021).

Interest. You must pay interest on the additional tax due 

to nonqualified withdrawals that are treated as made from 

either the ordinary income or the capital gain account. The 

interest period begins on the last date for paying tax for 

the year for which you deposited the amount you withdrew 

from your CCF account. The period ends on the last date 

for paying tax for the year in which you make the nonqualified withdrawal. The interest rate on the nonqualified withdrawal is simple interest. The rate is subject to change annually and is published in the Federal Register.

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Page 4 Publication 595 (October 2021)
You can also call NMFS at 301-427-8784 to get 

the current interest rate.

Interest deduction. You can deduct the interest you 

pay on a nonqualified withdrawal as a trade or business 

expense.

Reporting the additional tax and interest. Attach a 

statement to your income tax return showing your computation of the tax and the interest on a nonqualified withdrawal. Include the tax and interest on Schedule 2 (Form 

1040), line 21 (for 2021). To the left of the entry space for 

line 21, enter the amount of tax and interest and “CCF.”

Tax benefit rule. If any portion of your nonqualified withdrawal is properly attributable to contributions (not earnings on the contributions) you made to the CCF account 

that did not reduce your tax liability for any tax year prior to 

the withdrawal year, the following tax treatment applies.

1. The part that did not reduce your tax liability for any 

year prior to the withdrawal year is not taxed.

2. That part is allowed as a net operating loss deduction.

More Information

This section briefly discusses the CCF program. For more 

detailed information, see the following legislative authorities.

• Section 607 of the Merchant Marine Act of 1936, as 

amended (46 U.S.C. 53503).

• Chapter 2, Part 259 of title 50 of the Code of Federal 

Regulations (50 C.F.R., Part 259).

• Subchapter A, Part 3 of title 26 of the Code of Federal 

Regulations (26 C.F.R., Part 3).

• Section 7518 of the Internal Revenue Code (IRC 

7518).

The application kit you can obtain from NMFS at the address or phone number given earlier may contain copies 

of some of these sources of additional information. Also, 

see their web page at www.fisheries.noaa.gov/national/

funding-and-financial-services/capital-construction-fundprogram.

How To Get Tax Help

If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, 

forms, or instructions, go to IRS.gov and find resources 

that can help you right away.

Preparing and filing your tax return. After receiving all 

your wage and earnings statements (Form W-2, W-2G, 

1099-R, 1099-MISC, 1099-NEC, etc.); unemployment 

compensation statements (by mail or in a digital format) or 

other government payment statements (Form 1099-G); 

and interest, dividend, and retirement statements from 

banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you 

qualify for free tax preparation, or hire a tax professional to 

prepare your return.

Free options for tax preparation. Go to IRS.gov to see 

your options for preparing and filing your return online or 

in your local community, if you qualify, which include the 

following.

• Free File. This program lets you prepare and file your 

federal individual income tax return for free using 

brand-name tax-preparation-and-filing software or 

Free File fillable forms. However, state tax preparation 

may not be available through Free File. Go to IRS.gov/

FreeFile to see if you qualify for free online federal tax 

preparation, e-filing, and direct deposit or payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) 

program offers free tax help to people with 

low-to-moderate incomes, persons with disabilities, 

and limited-English-speaking taxpayers who need 

help preparing their own tax returns. Go to IRS.gov/

VITA, download the free IRS2Go app, or call 

800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly 

those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. 

Go to IRS.gov/TCE, download the free IRS2Go app, 

or call 888-227-7669 for information on free tax return 

preparation.

• MilTax. Members of the U.S. Armed Forces and 

qualified veterans may use MilTax, a free tax service 

offered by the Department of Defense through Military 

OneSource.

Also, the IRS offers Free Fillable Forms, which can 

be completed online and then filed electronically regardless of income.

Using online tools to help prepare your return. Go to 

IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant (IRS.gov/

EITCAssistant) determines if you’re eligible for the 

earned income credit (EIC).

• The Online EIN Application (IRS.gov/EIN) helps you 

get an employer identification number (EIN).

• The Tax Withholding Estimator (IRS.gov/W4App) 

makes it easier for everyone to pay the correct amount 

of tax during the year. The tool is a convenient, online 

way to check and tailor your withholding. It’s more 

user-friendly for taxpayers, including retirees and 

self-employed individuals. The features include the 

following.

– Easy to understand language.

Publication 595 (October 2021) Page 5
– The ability to switch between screens, correct previous entries, and skip screens that don’t apply.

– Tips and links to help you determine if you qualify 

for tax credits and deductions.

– A progress tracker.

– A self-employment tax feature.

– Automatic calculation of taxable social security benefits.

• The First Time Homebuyer Credit Account Look-up 

(IRS.gov/HomeBuyer) tool provides information on 

your repayments and account balance.

• The Sales Tax Deduction Calculator (IRS.gov/

SalesTax) figures the amount you can claim if you 

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On 

IRS.gov, you can get up-to-date information on 

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, a tool that 

will ask you questions on a number of tax law topics 

and provide answers.

• IRS.gov/Forms: Find forms, instructions, and publications. You will find details on 2021 tax changes and 

hundreds of interactive links to help you find answers 

to your questions.

• You may also be able to access tax law information in 

your electronic filing software.

Need someone to prepare your tax return? There are 

various types of tax return preparers, including tax preparers, enrolled agents, certified public accountants (CPAs), 

attorneys, and many others who don’t have professional 

credentials. If you choose to have someone prepare your 

tax return, choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification 

number (PTIN).

Although the tax preparer always signs the return, 

you're ultimately responsible for providing all the information required for the preparer to accurately prepare your 

return. Anyone paid to prepare tax returns for others 

should have a thorough understanding of tax matters. For 

more information on how to choose a tax preparer, go to 

Tips for Choosing a Tax Preparer on IRS.gov.

Coronavirus. Go to IRS.gov/Coronavirus for links to information on the impact of the coronavirus, as well as tax 

relief available for individuals and families, small and large 

businesses, and tax-exempt organizations.

Tax reform. Tax reform legislation affects individuals, 

businesses, and tax-exempt and government entities. Go 

to IRS.gov/TaxReform for information and updates on 

how this legislation affects your taxes.

Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure 

online W-2 filing options to CPAs, accountants, enrolled 

agents, and individuals who process Form W-2, Wage 

and Tax Statement, and Form W-2c, Corrected Wage and 

Tax Statement.

IRS social media. Go to IRS.gov/SocialMedia to see the 

various social media tools the IRS uses to share the latest 

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are 

paramount. We use these tools to share public information with you. Don’t post your SSN or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, 

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations 

for individuals, small businesses, and tax professionals.

Online tax information in other languages. You can 

find information on IRS.gov/MyLanguage if English isn’t 

your native language.

Free interpreter service. Multilingual assistance, provided by the IRS, is available at Taxpayer Assistance Centers (TACs) and other IRS offices. Over-the-phone interpreter service is accessible in more than 350 languages.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print all of the forms, instructions, and publications you may need. You can also download and view popular tax publications and instructions 

(including the Instructions for Forms 1040 and 1040-SR) 

on mobile devices as an eBook at IRS.gov/eBooks. Or 

you can go to IRS.gov/OrderForms to place an order.

Access your online account (individual taxpayers 

only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe, pay online, or set up an online payment agreement.

• Access your tax records online.

• Review your payment history.

• Go to IRS.gov/SecureAccess to review the required 

identity authentication process.

Page 6 Publication 595 (October 2021)
Using direct deposit. The fastest way to receive a tax 

refund is to file electronically and choose direct deposit, 

which securely and electronically transfers your refund directly into your financial account. Direct deposit also 

avoids the possibility that your check could be lost, stolen, 

or returned undeliverable to the IRS. Eight in 10 taxpayers 

use direct deposit to receive their refunds. The IRS issues 

more than 90% of refunds in less than 21 days.

Getting a transcript of your return. The quickest way 

to get a copy of your tax transcript is to go to IRS.gov/

Transcripts. Click on either “Get Transcript Online” or “Get 

Transcript by Mail” to order a free copy of your transcript. 

If you prefer, you can order your transcript by calling 

800-908-9946.

Reporting and resolving your tax-related identity 

theft issues. 

• Tax-related identity theft happens when someone 

steals your personal information to commit tax fraud. 

Your taxes can be affected if your SSN is used to file a 

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by 

email, text messages, telephone calls, or social media 

channels to request personal or financial information. 

This includes requests for personal identification numbers (PINs), passwords, or similar information for 

credit cards, banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft 

Central webpage, for information on identity theft and 

data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or 

stolen or you suspect you’re a victim of tax-related 

identity theft, you can learn what steps you should 

take.

• Get an Identity Protection PIN (IP PIN). IP PINs are 

six-digit numbers assigned to eligible taxpayers to 

help prevent the misuse of their SSNs on fraudulent 

federal income tax returns. When you have an IP PIN, 

it prevents someone else from filing a tax return with 

your SSN. To learn more, go to IRS.gov/IPPIN.

Checking on the status of your refund. 

• Go to IRS.gov/Refunds.

• The IRS can’t issue refunds before mid-February 2022 

for returns that claimed the EIC or the additional child 

tax credit (ACTC). This applies to the entire refund, 

not just the portion associated with these credits.

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

Making a tax payment. The IRS uses the latest encryption technology to ensure your electronic payments are 

safe and secure. You can make electronic payments online, by phone, and from a mobile device using the 

IRS2Go app. Paying electronically is quick, easy, and 

faster than mailing in a check or money order. Go to 

IRS.gov/Payments for information on how to make a payment using any of the following options.

• IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

• Debit or Credit Card: Choose an approved payment 

processor to pay online, by phone, or by mobile device.

• Electronic Funds Withdrawal: Offered only when filing 

your federal taxes using tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System: Best option 

for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes with cash at 

a participating retail store.

• Same-Day Wire: You may be able to do same-day 

wire from your financial institution. Contact your financial institution for availability, cost, and cut-off times.

What if I can’t pay now? Go to IRS.gov/Payments for 

more information about your options.

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once 

you complete the online process, you will receive immediate notification of whether your agreement has 

been approved.

• Use the Offer in Compromise Pre-Qualifier to see if 

you can settle your tax debt for less than the full 

amount you owe. For more information on the Offer in 

Compromise program, go to IRS.gov/OIC.

Filing an amended return. You can now file Form 

1040-X electronically with tax filing software to amend 

2019 Forms 1040 and 1040-SR. To do so, you must have 

e-filed your original 2019 return. Amended returns for all 

prior years must be mailed. See Tips for taxpayers who 

need to file an amended tax return and go to IRS.gov/

Form1040X for information and updates.

Checking the status of your amended return. Go to 

IRS.gov/WMAR to track the status of Form 1040-X amended returns. Please note that it can take up to 3 weeks 

from the date you filed your amended return for it to show 

up in our system, and processing it can take up to 16 

weeks.

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Contacting your local IRS office. Keep in mind, many 

questions can be answered on IRS.gov without visiting an 

IRS Taxpayer Assistance Center (TAC). Go to IRS.gov/

LetUsHelp for the topics people ask about most. If you still 

need help, IRS TACs provide tax help when a tax issue 

Publication 595 (October 2021) Page 7
can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance 

that you can get the service you need without long wait 

times. Before you visit, go to IRS.gov/TACLocator to find 

the nearest TAC and to check hours, available services, 

and appointment options. Or, on the IRS2Go app, under 

the Stay Connected tab, choose the Contact Us option 

and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) 

Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that 

helps taxpayers and protects taxpayer rights. Their job is 

to ensure that every taxpayer is treated fairly and that you 

know and understand your rights under the Taxpayer Bill 

of Rights.

How Can You Learn About Your Taxpayer 

Rights?

The Taxpayer Bill of Rights describes 10 basic rights that 

all taxpayers have when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you understand what 

these rights mean to you and how they apply. These are 

your rights. Know them. Use them.

What Can TAS Do For You?

TAS can help you resolve problems that you can’t resolve 

with the IRS. And their service is free. If you qualify for 

their assistance, you will be assigned to one advocate 

who will work with you throughout the process and will do 

everything possible to resolve your issue. TAS can help 

you if:

• Your problem is causing financial difficulty for you, 

your family, or your business;

• You face (or your business is facing) an immediate 

threat of adverse action; or

• You’ve tried repeatedly to contact the IRS but no one 

has responded, or the IRS hasn’t responded by the 

date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, 

and Puerto Rico. Your local advocate’s number is in your 

local directory and at TaxpayerAdvocate.IRS.gov/

Contact-Us. You can also call them at 877-777-4778.

How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect 

many taxpayers. If you know of one of these broad issues, 

please report it to them at IRS.gov/SAMS.

TAS for Tax Professionals

TAS can provide a variety of information for tax professionals, including tax law updates and guidance, TAS programs, and ways to let TAS know about systemic problems you’ve seen in your practice.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS. LITCs represent individuals whose income is below a certain level and need 

to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can 

provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or 

a small fee for eligible taxpayers. To find a clinic near you, 

visit TaxpayerAdvocate.IRS.gov/about/LITC or see IRS 

Pub. 4134, Low Income Taxpayer Clinic List.

Page 8 Publication 595 (October 2021)