- Publication 583 - Introductory Material
- Publication 583 - Main Content
- Comments and Suggestions
- What New Business Owners Need To Know
- Determining Which Type of Business to Use
- Getting a Taxpayer Identification Number
- Designating a Tax Year
- Choosing an Accounting Method
- Business Taxes
- Income Tax
- Self-Employment Tax
- Employment Taxes
- Excise Taxes
- Depositing Taxes
- Information Returns
- Deducting Business Expenses
- Why Keep Records?
- Kinds of Records To Keep
- Electronic records.
- Supporting Documents
- Recording Business Transactions
- Bookkeeping System
- Computerized System
- How Long To Keep Records
- Recordkeeping System Example
- How To Get Tax Help
- Preparing and filing your tax return.
- Getting answers to your tax law questions.
- Tax forms and publications.
- Where to file your tax return.
- Getting a transcript or copy of a return.
- Using online tools to help prepare your return.
- Understanding identity theft issues.
- Checking on the status of a refund.
- Making a tax payment.
- What if I cant pay now?
- Checking the status of an amended return.
- Understanding an IRS notice or letter.
- Visiting the IRS.
- Watching IRS videos.
- Getting tax information in other languages.
- The Taxpayer Advocate Service Is Here To Help You
- Low Income Taxpayer Clinics
- Publication 583 - Additional Material
This publication provides basic federal tax information for people who are starting a business. It also provides information on keeping records and illustrates a recordkeeping system.
Throughout this publication we refer to other IRS publications and forms where you will find more information. In addition, you may want to contact other government agencies, such as the Small Business Administration (SBA). See How To Get Tax Help , later.
For the latest information about developments related to Publication 583, such as legislation enacted after it was published, go to www.irs.gov/pub583.
We welcome your comments about this publication and your suggestions for future editions.
You can send us comments from www.irs.gov/formspubs. Click on "More Information" and then on "Give us feedback."
Or you can write to:Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.
As a new business owner, you need to know your federal tax responsibilities. Table 1 can help you learn what those responsibilities are. Ask yourself each question listed in the table, then see the related discussion to find the answer.
In addition to knowing about federal taxes, you need to make some basic business decisions. Ask yourself:
What are my financial resources?
What products and services will I sell?
How will I market my products and services?
How will I develop a strategic business plan?
How will I manage my business on a day-to-day basis?
How will I recruit employees?
The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. For information on how to contact the SBA, see How To Get Tax Help , later.
|(Note: This table is intended to help you, as a new business owner, learn what you need to know about your federal tax responsibilities. To use it, ask yourself each question in the left column, then see the related discussion in the right column.)|
|What Must I Know?||Where To Find the Answer|
|Which form of business will I use?||See Determining Which Type of Business to Use .|
|Will I need an employer identification number (EIN)?||See Getting a Taxpayer Identification Number .|
|Do I have to start my tax year in January, or may I start it in any other month?||See Designating a Tax Year .|
|What method can I use to account for my income and expenses?||See Choosing an Accounting Method .|
|What kinds of federal taxes will I have to pay? How should I pay my taxes?||See Business Taxes .|
|What must I do if I have employees?||See Employment Taxes .|
|Which forms must I file?||See Table 2 and Information Returns .|
|Are there penalties if I do not pay my taxes or file my returns?||See Penalties .|
|What business expenses can I deduct on my federal income tax return?||See Deducting Business Expenses .|
|What records must I keep? How long must I keep them?||See Recordkeeping .|
The most common forms of business are the sole proprietorship, partnership, and corporation. When beginning a business, you must decide which form of business to use. Legal and tax considerations enter into this decision. Only tax considerations are discussed in this publication.
Your form of business determines which income tax return form you have to file. See Table 2 to find out which form you have to file.
You must have a taxpayer identification number so the IRS can process your returns. Two of the most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN).
An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000.
An EIN is issued to individuals (sole proprietors), partnerships, corporations, and other entities by the IRS and is in the following format: 00–0000000.
EINs are assigned to sole proprietors, LLCs, corporations, and partnerships for tax filing and reporting purposes. See Form SS-4 and its instructions for more information and to see which businesses must get an EIN.
In the operation of a business, you will probably make certain payments you must report on information returns (discussed later under Information Returns ). The forms used to report these payments must include the payee's identification number.
You must figure your taxable income and file an income tax return based on an annual accounting period called a tax year. A tax year is usually 12 consecutive months. There are two kinds of tax years.
Calendar tax year. A calendar tax year is 12 consecutive months beginning January 1 and ending December 31.
Fiscal tax year. A fiscal tax year is 12 consecutive months ending on the last day of any month except December. A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month.
If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval.
You must use a calendar tax year if:
You keep no books.
You have no annual accounting period.
Your present tax year does not qualify as a fiscal year.
You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations.
For more information, see Publication 538, Accounting Periods and Methods.
An accounting method is a set of rules used to determine when and how income and expenses are reported. You choose an accounting method for your business when you file your first income tax return. There are two basic accounting methods.
Cash method. Under the cash method, you report income in the tax year you receive it. You usually deduct or capitalize expenses in the tax year you pay them.
Accrual method. Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year.
For other methods, see Publication 538.
If an inventory is necessary to account for your income, you must generally use an accrual method of accounting for purchases and sales. Inventories include goods held for sale in the normal course of business. They also include raw materials and supplies that will physically become a part of merchandise intended for sale. Inventories are explained in Publication 538.
Certain small business taxpayers can use the cash method of accounting and can also account for inventoriable items as materials and supplies that are not incidental. For more information, see Publication 538.
You must use the same accounting method to figure your taxable income and to keep your books. Also, you must use an accounting method that clearly shows your income. In general, any accounting method that consistently uses accounting principles suitable for your trade or business clearly shows income. An accounting method clearly shows income only if it treats all items of gross income and expense the same from year to year.
The form of business you operate determines what taxes you must pay and how you pay them. The following are the four general kinds of business taxes.
See Table 2 for the forms you file to report these taxes.
You may want to get Publication 509. It has tax calendars that tell you when to file returns and make tax payments.
All businesses except partnerships must file an annual income tax return. Partnerships file an information return. Which form you use depends on how your business is organized. See Table 2 to find out which return you have to file.
The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return.
|IF you are a...||THEN you may have to pay...||FILE form...|
|Sole proprietor||Income tax||1040 and Schedule C 1 or C-EZ (Schedule F 1 for farm business)|
|Self-employment tax||1040 and Schedule SE|
|• Social security and Medicare
taxes and income tax
|941 or 944 (943 for farm employees)|
|• Federal unemployment (FUTA)
|Excise taxes||See Excise Taxes|
|Partnership||Annual return of income||1065|
|Employment taxes||Same as sole proprietor|
|Excise taxes||See Excise Taxes|
|Partner in a partnership (individual)||Income tax||1040 and Schedule E 2|
|Self-employment tax||1040 and Schedule SE|
|C corporation or S corporation||Income tax||1120 (C corporation) 2
1120S (S corporation) 2
|Estimated tax||1120-W (corporation only)|
|Employment taxes||Same as sole proprietor|
|Excise taxes||See Excise Taxes|
|S corporation shareholder||Income tax||1040 and Schedule E 2|
|1 File a separate schedule for each business.|
|2 Various other schedules may be needed.|
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.
Your net earnings from self-employment were $400 or more.
You had church employee income of $108.28 or more.
Use Schedule SE (Form 1040) to figure your SE tax. For more information, see Publication 334, Tax Guide for Small Business.
You can deduct a portion of your SE tax as an adjustment to income on your Form 1040.
This section briefly discusses the employment taxes you must pay, the forms you must file to report them, and other forms that must be filed when you have employees.
Employment taxes include the following.
Social security and Medicare taxes.
Federal income tax withholding.
Federal unemployment (FUTA) tax.
If you have employees, you will need to get Publication 15 (Circular E), Employer's Tax Guide. If you have agricultural employees, get Publication 51 (Circular A), Agricultural Employer's Tax Guide. These publications explain your tax responsibilities as an employer.
If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. That publication has information to help you determine whether an individual is an employee or an independent contractor. If you wrongly classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. An independent contractor is someone who is self-employed. Generally, you do not have to withhold or pay any taxes on payments to an independent contractor.
You generally must withhold federal income tax from your employee's wages. To figure how much federal income tax to withhold from each wage payment, use the employee's Form W-4 (discussed later under Hiring Employees ) and the methods described in Publication 15.
Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. Medicare tax pays for benefits under the hospital insurance part of FICA. You withhold part of these taxes from your employee's wages and you pay a part yourself. To find out how much social security and Medicare tax to withhold and to pay, see Publication 15.
The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. You pay FUTA tax only from your own funds. Employees do not pay this tax or have it withheld from their pay.
After the calendar year is over, you must furnish copies of Form W-2, Wage and Tax Statement, to each employee to whom you paid wages during the year. You must also send copies to the Social Security Administration. See Information Returns , later, for more information on Form W-2.
This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following.
Manufacture or sell certain products.
Operate certain kinds of businesses.
Use various kinds of equipment, facilities, or products.
Receive payment for certain services.
For more information on excise taxes, see Publication 510, Excise Taxes.
You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S corporation taxes before you file your return.
Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS).
Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment.
If you make or receive payments in your business, you may have to report them to the IRS on information returns. The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. You must give a copy of each information return you are required to file to the recipient or payer. In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns.
The law provides penalties for not filing returns or paying taxes as required. Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement.
You can deduct business expenses on your business or personal income tax return, depending on the form of your business. These are the current operating costs of running your business. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business, trade, or profession. A necessary expense is one that is helpful and appropriate for your business, trade, or profession. An expense does not have to be indispensable to be considered necessary.
The following are brief explanations of some expenses that are of interest to people starting a business. There are many other expenses that you may be able to deduct. See your form instructions and Publication 535, Business Expenses.
Business start-up costs are the expenses you incur before you actually begin business operations. Your business start-up costs will depend on the type of business you are starting. They may include costs for advertising, travel, surveys, and training. These costs are generally capital expenses.
You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining cost must be amortized.
For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535.
If property you acquire to use in your business has a useful life that extends substantially beyond the year it is placed in service, you generally cannot deduct the entire cost as a business expense in the year you acquire it. You must spread the cost over more than one tax year and deduct part of it each year. This method of deducting the cost of business property is called depreciation.
Business property you must depreciate includes the following items.
Machinery and equipment.
You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. This deduction is known as the "section 179 deduction." For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property.
Depreciation must be taken in the year it is allowable. Allowable depreciation not taken in a prior year cannot be taken in the current year. If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U.S. Individual Income Tax Return, or by changing your accounting method. For more information on how to correct depreciation deductions, see chapter 1 in Publication 946.
To deduct expenses related to the business use of part of your home, you must meet specific requirements. Even then, your deduction may be limited. You may be able to use the simplified method to figure your expenses for business use of your home. For more information, see Schedule C (Form 1040) and its instructions.
To qualify to claim expenses for business use of your home, you must meet both the following tests.
Your use of the business part of your home must be:
Exclusive (however, see Exceptions to exclusive use , later),
For your trade or business, AND
The business part of your home must be one of the following:
Your principal place of business (defined later),
A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or
A separate structure (not attached to your home) you use in connection with your trade or business.
This part explains why you must keep records, what kinds of records you must keep, and how to keep them. It also explains how long you must keep your records for federal tax purposes. A sample recordkeeping system is illustrated at the end of this part.
Everyone in business must keep records. Good records will help you do the following.
Except in a few cases, the law does not require any specific kind of records. You can choose any recordkeeping system suited to your business that clearly shows your income and expenses.
The business you are in affects the type of records you need to keep for federal tax purposes. You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. See Choosing an Accounting Method , earlier. If you are in more than one business, you should keep a complete and separate set of records for each business. A corporation should keep minutes of board of directors' meetings.
Your recordkeeping system should include a summary of your business transactions. This summary is ordinarily made in your books (for example, accounting journals and ledgers). Your books must show your gross income, as well as your deductions and credits. For most small businesses, the business checkbook (discussed later) is the main source for entries in the business books. In addition, you must keep supporting documents, explained later.
Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. These documents contain information you need to record in your books.
It is important to keep these documents because they support the entries in your books and on your tax return. Keep them in an orderly fashion and in a safe place. For instance, organize them by year and type of income or expense.
A good recordkeeping system includes a summary of your business transactions. (Your business transactions are shown on the supporting documents just discussed.) Business transactions are ordinarily summarized in books called journals and ledgers. You can buy them at your local stationery or office supply store.
A journal is a book where you record each business transaction shown on your supporting documents. You may have to keep separate journals for transactions that occur frequently.
A ledger is a book that contains the totals from all of your journals. It is organized into different accounts.
Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. For example, a recordkeeping system for a small business might include the following items.
Daily summary of cash receipts.
Monthly summary of cash receipts.
Check disbursements journal.
Employee compensation record.
The business checkbook is explained next. The other items are illustrated later under Recordkeeping System Example .
The system you use to record business transactions will be more effective if you follow good recordkeeping practices. For example, record expenses when they occur, and identify the source of recorded receipts. Generally, it is best to record transactions on a daily basis.
You must decide whether to use a single-entry or a double-entry bookkeeping system. The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control.
There are computer software packages you can use for recordkeeping. They can be purchased in many retail stores. These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting.
If you use a computerized system, you must be able to produce sufficient legible records to support and verify entries made on your return and determine your correct tax liability. To meet this qualification, the machine-sensible records must reconcile with your books and return. These records must provide enough detail to identify the underlying source documents.
You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. This documentation must be sufficiently detailed to show all of the following items.
Functions being performed as the data flows through the system.
Controls used to ensure accurate and reliable processing.
Controls used to prevent the unauthorized addition, alteration, or deletion of retained records.
Charts of accounts and detailed account descriptions.
For more information, see Revenue Procedure 98-25 in Cumulative Bulletin 1998-1, available at www.irs.gov/Businesses/Automated-Records.
You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out.
The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. Table 3 contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.
Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.
This example illustrates a single-entry system used by Henry Brown, who is the sole proprietor of a small automobile body shop. Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting.
These sample records should not be viewed as a recommendation of how to keep your records. They are intended only to show how one business keeps its records.
This summary is a record of cash sales for the day. It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day.
Henry takes the cash sales entry from his cash register tape. If he had no cash register, he would simply total his cash sale slips and any other cash received that day.
He carries the total receipts shown in this summary for January 3 ($267.80), including cash sales ($263.60) and sales tax ($4.20), to the Monthly Summary of Cash Receipts.
This shows the income activity for the month. Henry carries the total monthly net sales shown in this summary for January ($4,865.05) to his Annual Summary.
To figure total monthly net sales, Henry reduces the total monthly receipts by the sales tax imposed on his customers and turned over to the state. He cannot take a deduction for sales tax turned over to the state because he only collected the tax. He does not include the tax in his income.
Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal.
Frequent expenses have their own headings across the sheet. He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage.
Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. If he did, he would record them in the journal, even though he could not deduct them as business expenses.
Henry carries the January total of expenses for materials ($1,083.50) to the Annual Summary. Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc., in the appropriate columns of that summary.
This record shows the following information.
The number of hours Henry's employee worked in a pay period.
The employee's total pay for the period.
The deductions Henry withheld in figuring the employee's net pay.
The monthly gross payroll.
Henry carries the January gross payroll ($520) to the Annual Summary.
This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. As in the journal, he keeps each major expense in a separate column.
Henry carries the cash receipts total shown in the annual summary ($47,440.95) to Part I of Schedule C (not illustrated). He carries the total for materials ($10,001.00) to Part II of Schedule C.
A business that keeps materials and supplies on hand generally must complete the inventory lines in Part III of Schedule C. However, there are no inventories of materials and supplies in this example. Henry buys parts and supplies on a per-job basis; he does not keep them on hand.
Henry enters annual totals for interest, rent, taxes, and wages on the appropriate lines in Part II of Schedule C. The total for taxes and licenses includes the employer's share of social security and Medicare taxes, and the business license fee. He enters the total of other annual business expenses on the "Other expenses" line of Schedule C.
This worksheet shows the information used in figuring the depreciation allowed on assets used in Henry's business. Henry figures the depreciation using the modified accelerated cost recovery system (MACRS). He purchased and placed in service several used assets that do not qualify for the section 179 deduction. Depreciation and the section 179 deduction are discussed in Publication 946. Henry uses the information in the worksheet to complete Form 4562, Depreciation and Amortization (not illustrated).
Henry reconciles his checkbook with his bank statement and prepares a bank reconciliation for January as follows.
Henry begins by entering his bank statement balance.
Henry compares the deposits listed on the bank statement with deposits shown in his checkbook. Two deposits shown in his checkbook— $701.33 and $516.08—were not on his bank statement. He enters these two amounts on the bank reconciliation. He adds them to the bank statement balance of $1,458.12 to arrive at a subtotal of $2,675.53.
After comparing each canceled check with his checkbook, Henry found four outstanding checks totaling $526.50. He subtracts this amount from the subtotal in (2). The result of $2,149.03 is the adjusted bank statement balance.
Henry enters his checkbook balance on the bank reconciliation.
Henry discovered that he mistakenly entered a deposit of $600.40 in his checkbook as $594.40. He adds the difference ($6.00) to the checkbook balance of $2,153.03. There was a $10.00 bank service charge on his bank statement that he subtracts from the checkbook balance. The result is the adjusted checkbook balance of $2,149.03. This equals his adjusted bank statement balance computed in (3).
The only book adjustment Henry needs to make is to the Check Disbursements Journal for the $10 bank service charge. He does not need to adjust the Monthly Summary of Cash Receipts because he correctly entered the January 8 deposit of $600.40 in that record.
|Year 20— Month January
|Day||Net Sales||Sales Tax||Daily Receipts||Deposit|
|Year 20— Month January|
|Day||Paid To||Check #||Amount of Check||Materials||Gross Payroll||Federal Withheld Income Tax||FICA Social Security Reserve||FICA Medicare Reserve|
|4||Auto Parts, Inc.||76||203.00||203.00|
|4||John E. Marks||77||214.11||260.00||(20.00)||(16.12)||(3.77)|
|6||Joe's Service Station||80||74.50||29.50|
|6||ABC Auto Paint||81||137.50||137.50|
|15||National Bank (Tax Deposit)||84||119.56||40.00||32.24||7.54|
|18||Auto Parts, Inc.||86||472.00||472.00|
|18||John E. Marks||88||214.11||260.00||(20.00)||(16.12)||(3.77)|
|21||Baker's Fender Co.||91||9.80||9.80|
|25||Baker's Fender Co.||94||150.00||150.00|
|Bank service charge||10.00|
|State Withheld Income Tax||Employer's
Do you need help with a tax issue or preparing your tax return, or do you need a free publication or form?
The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service that helps taxpayers and protects taxpayer rights. Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.
We can help you resolve problems that you can’t resolve with the IRS. And our service is free. If you qualify for our 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.
We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at www.taxpayeradvocate.irs.gov. You can also call us at 1-877-777-4778.
The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Our Tax Toolkit at www.taxpayeradvocate.irs.gov can help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.
TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at www.irs.gov/sams.
Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. To find a clinic near you, visit www.irs.gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List.
- Forms of business, Determining Which Type of Business to Use
- FUTA tax, Federal Unemployment (FUTA) Tax
- Getting a taxpayer identification number, Getting a Taxpayer Identification Number
- Income tax, Income Tax, Federal Income, Social Security, and Medicare Taxes
- Information returns, Information Returns
- Inventories, Choosing an Accounting Method
- Limited liability company, Limited liability company.
- Medicare tax, Federal Income, Social Security, and Medicare Taxes
- Office in home, Business Use of Your Home
- S corporation, S corporations.
- Self-employment tax, Self-Employment Tax
- Social security tax, Federal Income, Social Security, and Medicare Taxes
- Sole proprietorship, Sole proprietorships.
- Start-up costs, Business Start-Up Costs
- Tax help, How To Get Tax Help
- Tax year, Designating a Tax Year
- TTY/TDD information, How To Get Tax Help
- Unemployment (FUTA) tax, Federal Unemployment (FUTA) Tax