em 4255 Tax from Recomputing a Prior Year Investment Credit

uly 1959) (Computation of Recapture Tax)
Patina Revenue sonieenTM Attach to your income tax return
For the calendar year 19 ........, or other taxable year beginning.......... sasneeneevseraen wesveereey 19 an
Name Identifying number as shown on page 1 of your tax return
If there is an unused investment credit attributable to the disposed asset,
compute the recapture tax on a separate schedule. Do not use this form.
7 Original Credit- Recomputed Credit as)
pee tent “ 2 @ | @ @ @ _ @ @ | ao | ap G2 Recapture
ete tte i i p | i te
ere pscet Cost mated | “e8ble imamate Sreit ceed to'se | Actual) SEB | Qualified Timeatmase (column 7 tess
also state whether | in basis useful | por (column'3 x umn 8 x 796) investment Tite | Pe | cotumn Ss eeu 20) credit column
Rew of used) servica lite | centage ‘column 5) column 6 x 796 credit property centage (Column 3 x column 10)) Gcotumn 11 x 796)
@
® _—
o) |
|

@)
®
®)
(9) i
2. Tax from recomputing a pricr year.investment credit. Enter here and on the line provided-on yourtax return. » + +.+ se es ee ee eee te

Note: The recapture tax is an addition to your income tax for the year in which you dispose of investment credit property. Do not use:the recapture tax to offset the current year's
investment credit on Form 3468.

Form 4255 (7-69)


Instructions

A. Who Must tf you received tips of $20 or
more in any month, aay part of which was not reported
to your employer, you must file this form.

{f you reported all your tip income to your employer
you need not use this form, even though your Form
W--2 shows uncollected employee F.1.C.A, tax. In such
case write the amount and the words "’F.1.C.A, Tax on
Tips'’ on the bottom margin of page 1, Form 1040,
and add to the amount of the ‘‘Balance Due’ or
subtract from the amount of the “Overpayment”
accordingly.

B. Tips Which Are Required To Be Reported to an

i nish his employer a
writte tps if he receives $20 or
more in tips during a calendar th. If an employee in
iorms services for two or more
employers and receives tips in the course of his em-
ployment for each employer, the $20 test is applied
separately for cash tips received by the employee for
his services for each employer and not to the total
received. Tips meeting the $20 test must be reported
to employers on or before the 10th day of the month fol-
lowing the meath in which they are received.

C. Certain Tips Not Reportable on This Form.—Do
not report on this forrn tips received in employment
covered by the Rajircad Retirement Tax Act, employ-
ment for State and !ocal governmental entities, or cer-
tain nonprofit organizations not subject to F.I.C.A. tax,
‘act the nearest Railroad Retirement Board office
for information as to how to secure railroad retirement
credit for tips not reported to railroad employers.

D. When Tips Are Taxable.—-Tips timely reported to
an employer on or before the 10th day of the month
foilowing the month in which they are received, are con-
sidered income to an employee in the month when
reported. For example, tips received in December of
1969 which are reported to an employer between
January 1, 1970, and January 10, 1970, are con-
sidered income in 1970 and would be included on the

employee’s 1970 Form W—2 (do not include these tips
in line 1 of this form).

Tips not timely reported and/or tips not reported to
an employer are considered income te an employee in
the month when they are actually received. For ex-
ample, tips received in December of 1969 which are
reported to an employer after January 10, 1970, are
considered income in 1969 since they were not re-
ported to the employer within the required time period
(include these tips in line 1 of this form).

E. Payment of Tax.—Tips you reported to your em-
ployer are subject to social security (or railroad retire-
ment) tax and income tax withholding. These taxes are
collected by your employer to the extent he has wages
(exc! g tips) or other funds of yours available to
cover such amounts. if your wages are not sufficient
to cover these taxes you may furnish your employer
with the additional amounts needed. Your Forin W-2
wiil include the tips you reported to your employer and
the taxes withheld. if there were not sufficient junds
to cover the F.1.C.A. (social security) or railroad retire-
ment tax, the amount of such tax due will also be
shown on your Form W—2.,

F, Penalty fer Failure To Report Tips.—lf an em-
ployee fails to report tips received to his employer, he
may be subject to a penalty equal to 50 percent of the
F.I.C.A. tax due on such tips. Therefore, an employee
should attach a statement to his return explaining why
the tips were not reported to his employer.

G. Quarterly Breakdown of Unreported Tips.—in
order that you receive proper credits to your social
security record it is necessary to allocate your unre-
ported tips subject to F.1.C.A. tax (line 9) to the calen-
dar quarter in which the tips were received (see items
A(1) through A(4) of Schedule U on the other side). Be
sure you have excluded tips of less than $20 received
in any one month from any one employer. Enter the
word ‘none’ for any quarter in which there were no
unreported tips.

U.S, GOVERNMENT PRINTING OFFICE :189-~O-3373115,