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Taxmap/pub17/p17-006.htm#TXMP5e8351d5 How Do I Prepare   My Return?

This section explains how to get ready to fill in your tax return and when to report your income and expenses. It also explains how to complete certain sections of the form. You may find Table 1-6 helpful when you prepare your return.

In most cases, based on what you filed last year, the IRS will mail you Form 1040, Form 1040A, or Form 1040EZ with related instructions, or a TeleFile package. Before you fill in the form, look at the form instructions to see if you need, or would benefit from filing, a different form this year. Also see if you need any additional forms or schedules. You may also want to read Does My Return Have To Be on Paper, earlier.

If you do not receive a tax return package in the mail, or if you need other forms, you can order them or print them from the Internet. See How To Get Tax Help in the back of this publication.

Taxmap/pub17/p17-006.htm#TXMP6090d814 Substitute tax forms.

Substitute tax forms.

You cannot use your own version of a tax form unless it meets the requirements explained in Publication 1167, General Rules and Specifications for Substitute Forms and Schedules.

Taxmap/pub17/p17-006.htm#TXMP0ed03e12 Form W-2.

Form W-2.

If you are an employee, you should receive Form W-2 from your employer. You will need the information from this form to prepare your return. See Form W-2 under Credit for Withholding and Estimated Tax in chapter 5.

If you do not receive Form W-2 by January 31, 2005, contact your employer. If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. When you request IRS help, be prepared to provide the following information.

• Your name, address (including zip code), and phone number.
• Your SSN.
• Your dates of employment.
• Your employer's name, address (including zip code), and phone number.

Taxmap/pub17/p17-006.htm#TXMP46f03cd0 Form 1099.

Form 1099.

If you received certain types of income, you may receive a Form 1099. For example, if you received taxable interest of $10 or more, the payer generally must give you a Form 1099-INT. If you have not received it by January 31, 2005, contact the payer. If you still do not get the form by February 15, call the IRS for help.

Taxmap/pub17/p17-006.htm#TXMP09a124d8 When Do I Report My   Income and Expenses?

You must figure your taxable income on the basis of a tax year. A "tax year" is an annual accounting period used for keeping records and reporting income and expenses. You must account for your income and expenses in a way that clearly shows your taxable income. The way you do this is called an accounting method. This section explains which accounting periods and methods you can use.

Taxmap/pub17/p17-006.htm#TXMP46a48f7d Accounting Periods

Accounting Period

Most individual tax returns cover a calendar year—the 12 months from January 1 through December 31. If you do not use a calendar year, your accounting period is a fiscal year. A regular fiscal year is a 12-month period that ends on the last day of any month except December. A 52-53-week fiscal year varies from 52 to 53 weeks and always ends on the same day of the week.

You choose your accounting period (tax year) when you file your first income tax return. It cannot be longer than 12 months.

Taxmap/pub17/p17-006.htm#TXMP63f1a29e More information.

For more information on accounting periods, including how to change your accounting period, see Publication 538, Accounting Periods and Methods.

Taxmap/pub17/p17-006.htm#TXMP7751e0b6 Accounting Methods

Accounting Method

Your accounting method is the way you account for your income and expenses. Most taxpayers use either the cash method or an accrual method. You choose a method when you file your first income tax return. If you want to change your accounting method after that, you generally must get IRS approval.

Taxmap/pub17/p17-006.htm#TXMP7217f46f Cash method.

Cash Method

If you use this method, report all items of income in the year in which you actually or constructively receive them. Generally, you deduct all expenses in the year you actually pay them. This is the method most individual taxpayers use.

Taxmap/pub17/p17-006.htm#TXMP3564ea05 Constructive receipt.

Generally, you constructively receive income when it is credited to your account or set apart in any way that makes it available to you. You do not need to have physical possession of it. For example, interest credited to your bank account on December 31, 2004, is taxable income to you in 2004 if you could have withdrawn it in 2004 (even if the amount is not entered in your passbook or withdrawn until 2005).

Taxmap/pub17/p17-006.htm#TXMP7dd3a79b Garnisheed wages.

If your employer uses your wages to pay your debts, or if your wages are attached or garnisheed, the full amount is constructively received by you. You must include these wages in income for the year you would have received them.

Taxmap/pub17/p17-006.htm#TXMP05f1162b Brokerage and other accounts.

Profits from a brokerage account, or similar account, are fully taxable in the year you earn them. This is true even if:

1. You do not withdraw the earnings,
2. The credit balance in the account may be reduced or eliminated by losses in later years, or
3. Current profits are used to reduce or eliminate a debit balance from previous years.

Taxmap/pub17/p17-006.htm#TXMP1aa71fd0 Debts paid for you.

If another person cancels or pays your debts (but not as a gift or loan), you have constructively received the amount and generally must include it in your gross income for the year. See Canceled Debts in chapter 13 for more information.

Taxmap/pub17/p17-006.htm#TXMP504393b4 Payment to third party.

If a third party is paid income from property you own, you have constructively received the income. It is the same as if you had actually received the income and paid it to the third party.

Taxmap/pub17/p17-006.htm#TXMP081d0c18 Payment to an agent.

Income an agent receives for you is income you constructively received in the year the agent receives it. If you indicate in a contract that your income is to be paid to another person, you must include the amount in your gross income when the other person receives it.

Taxmap/pub17/p17-006.htm#TXMP7724bb60 Check received or available.

A valid check that was made available to you before the end of the tax year is constructively received by you in that year. A check that was "made available to you" includes a check you have already received, but not cashed or deposited. It also includes, for example, your last paycheck of the year that your employer made available for you to pick up at the office before the end of the year. It is constructively received by you in that year whether or not you pick it up before the end of the year or wait to receive it by mail after the end of the year.

Taxmap/pub17/p17-006.htm#TXMP5e01e116 No constructive receipt.

There may be facts to show that you did not constructively receive income.

Taxmap/pub17/p17-006.htm#TXMP793dacba
Example.

Alice Johnson, a teacher, agreed to her school board's condition that, in her absence, she would receive only the difference between her regular salary and the salary of a substitute teacher hired by the school board. Therefore, Alice did not constructively receive the amount by which her salary was reduced to pay the substitute teacher.

Taxmap/pub17/p17-006.htm#TXMP50507ae2 Accrual method.

Accrual Method

If you use an accrual method, you generally report income when you earn it, rather than when you receive it. You generally deduct your expenses when you incur them, rather than when you pay them.

Taxmap/pub17/p17-006.htm#TXMP2af95401 Income paid in advance.

An advance payment of income is generally included in gross income in the year you receive it. Your method of accounting does not matter as long as the income is available to you. An advance payment may include rent or interest you receive in advance and pay for services you will perform later.

Beginning in 2004, a limited deferral until the next tax year may be allowed for certain advance payments. See Publication 538 for specific information.

Taxmap/pub17/p17-006.htm#TXMP11a2fe31 Additional information.

For more information on accounting methods, including how to change your accounting method, get Publication 538.

Taxmap/pub17/p17-006.htm#TXMP33b52b16 Social Security Number

SSN

You must enter your social security number (SSN) in the space provided on your return. Be sure the SSN on your return is the same as the SSN on your social security card. If you are married, enter the SSNs for both you and your spouse, whether you file jointly or separately.

If you are filing a joint return, write the SSNs in the same order as the names. Use this same order in submitting other forms and documents to the IRS.

Taxmap/pub17/p17-006.htm#TXMP14cccefb Name change.

Name change

If you changed your name because of marriage, divorce, etc., immediately notify your Social Security Administration (SSA) office so the name on your tax return is the same as the one the SSA has on its records. This will help prevent delays in issuing your refund and safeguard your future social security benefits.

Taxmap/pub17/p17-006.htm#TXMP2e286176 Dependent's social security number.

Dependent Social Security Number

You must provide the SSN of each dependent you claim, regardless of the dependent's age. This requirement applies to all dependents (not just your children) claimed on your tax return.

Taxmap/pub17/p17-006.htm#TXMP4be10dca Exception.

If your child was born and died in 2004 and you do not have an SSN for the child, you may attach a copy of the child's birth certificate instead. If you do, enter "DIED" in column (2) of line 6c (Form 1040 or 1040A).

Taxmap/pub17/p17-006.htm#TXMP57fc924e No social security number.

No social security number.

File Form SS-5, Application for a Social Security Card, with your local SSA office to get an SSN for yourself or your dependent. It usually takes about 2 weeks to get an SSN. If you or your dependent is not eligible for an SSN, see Individual taxpayer identification number (ITIN), later.

If you are a U.S. citizen or resident alien, you must show proof of age, identity, and citizenship or alien status with your Form SS-5. If you are 12 or older and have never been assigned an SSN, you must appear in person with this proof at an SSA office.

Form SS-5 is available at any SSA office, on the Internet at www.socialsecurity.gov, or by calling 1-800-772-1213. If you have any questions about which documents you can use as proof of age, identity, or citizenship, contact your SSA office.

If your dependent does not have an SSN by the time your return is due, you may want to ask for an extension of time to file, as explained earlier under When Do I Have To File.

If you do not provide a required SSN or if you provide an incorrect SSN, your tax may be increased and any refund may be reduced.

Taxmap/pub17/p17-006.htm#TXMP2e0422d7 Adoption taxpayer identification number (ATIN).

ATIN

If you are in the process of adopting a child who is a U.S. citizen or resident and cannot get an SSN for the child until the adoption is final, you can apply for an ATIN to use instead of an SSN.

File Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, with the IRS to get an ATIN if all of the following are true.

• You have a child living with you who was placed in your home for legal adoption by an authorized placement agency.
• You cannot get the child's existing SSN even though you have made a reasonable attempt to get it from the birth parents, the placement agency, and other persons.
• You cannot get an SSN for the child from the SSA because, for example, the adoption is not final.
• You cannot get an Individual Taxpayer Identification Number (ITIN) (discussed later) for the child.
• You are eligible to claim the child as a dependent on your tax return.

See Form W-7A for more information.

Taxmap/pub17/p17-006.htm#TXMP2069d24d Nonresident alien spouse.

Nonresident alien spouse.

If your spouse is a nonresident alien and you file a joint or separate return, your spouse must have either an SSN or an ITIN. If your spouse is not eligible for an SSN, see the next discussion.

Taxmap/pub17/p17-006.htm#TXMP02b57e6b Individual taxpayer identification number (ITIN).

TIN

The IRS will issue you an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. To apply for an ITIN, file Form W-7 with the IRS. It usually takes about 4 to 6 weeks to get an ITIN. Enter this number on your tax return wherever your SSN is requested.

If you are applying for an ITIN in order to file your tax return, attach your completed tax return to your Form W-7. See the Form W-7 instructions for how and where to file.

Taxmap/pub17/p17-006.htm#TXMP73f95b5d Alien dependent.

If your dependent is a nonresident or resident alien who does not have and is not eligible to get an SSN, file Form W-7 with the IRS to apply for an ITIN. Enter this number on your return wherever the dependent's SSN is requested.

An ITIN is for tax use only. It does not entitle you or your dependent to social security benefits or change the employment or immigration status of either of you under U.S. law.

Taxmap/pub17/p17-006.htm#TXMP4aebfac3 Penalty for not providing social security number.

Penalty for not providing social security number.

If you do not include your SSN or the SSN of your spouse or dependent as required, you may have to pay a penalty. See the discussion on Penalties, later, for more information.

Taxmap/pub17/p17-006.htm#TXMP253368af SSN on correspondence.

SSN on correspondence.

If you write to the IRS about your tax account, be sure to include your SSN (and the name and SSN of your spouse, if you filed a joint return) in your correspondence. Because your SSN is used to identify your account, this helps the IRS respond to your correspondence promptly.

Taxmap/pub17/p17-006.htm#TXMP34c0e651 Presidential Election   Campaign Fund

This fund was set up to help pay for presidential election campaigns. If you have a tax liability of at least $3, you may have $3 of your tax liability go to this fund by checking the "Yes" box on Form 1040, Form 1040A, or Form 1040EZ. If you are filing a joint return and have a tax liability of at least $6, your spouse may also have $3 go to the fund. If you check "Yes," it will not change the tax you pay or the refund you will receive.

Taxmap/pub17/p17-006.htm#TXMP6b186876 Computations

The following information on entering numbers on your tax return may be useful in making the return easier to complete.

Taxmap/pub17/p17-006.htm#TXMP5d034bfb Rounding off dollars.

You may round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

Taxmap/pub17/p17-006.htm#TXMP4000d253
Example.

You receive two Forms W-2: one showing wages of $5,000.55 and one showing wages of $18,500.73. On Form 1040, line 7, you would enter $23,501 ($5,000.55 + $18,500.73 = $23,501.28), not $23,502 ($5,001 + $18,501).

Taxmap/pub17/p17-006.htm#TXMP70a4eed4 Equal amounts.

If you are asked to enter the smaller or larger of two equal amounts, enter that amount.

Taxmap/pub17/p17-006.htm#TXMP14bffac6
Example.

Line 1 is $500. Line 3 is $500. Line 5 asks you to enter the smaller of line 1 or 3. Enter $500 on line 5.

Taxmap/pub17/p17-006.htm#TXMP1c6e4215 Negative amounts.

If you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts.

Taxmap/pub17/p17-006.htm#TXMP26cc0c93 Attachments

Depending on the form you file and the items reported on your return, you may have to complete additional schedules and forms and attach them to your return.

You may be able to file a paperless return using IRS e-file. There's nothing to sign, attach, or mail, not even your Forms W-2.

Taxmap/pub17/p17-006.htm#TXMP06203ee2 Form W-2.

Form W-2.

Form W-2 is a statement from your employer of wages and other compensation paid to you and taxes withheld from your pay. You should have a Form W-2 from each employer. Be sure to attach a copy of Form W-2 in the place indicated on the front page of your return. Attach it only to the front page of your return, not to any attachments. For more information, see Form W-2 in chapter 5.

If you received a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., showing federal income tax withheld, attach a copy of that form in the place indicated on the front page of your return.

Taxmap/pub17/p17-006.htm#TXMP3e95e61e Form 1040EZ.

F1040EZ

There are no additional schedules to file with Form 1040EZ.

Taxmap/pub17/p17-006.htm#TXMP59c3c6e7 Form 1040A.

F1040A

Attach the additional schedules and forms that you had to complete behind the Form 1040A in order by number. If you are filing Schedule EIC, put it last. Do not attach items unless required to do so.

Taxmap/pub17/p17-006.htm#TXMP3167368a Form 1040.

F1040

Attach any forms and schedules behind Form 1040 in order of the "Attachment Sequence Number" shown in the upper right corner of the form or schedule. Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Do not attach items unless required to do so.

Taxmap/pub17/p17-006.htm#TXMP2387d7c3 Third Party Designee

You can authorize the IRS to discuss your return with a friend, family member, or any other person you choose. If you check the "Yes" box in the Third party designee area of your 2004 tax return and provide the information required, you are authorizing:

1. The IRS to call the designee to answer any questions that arise during the processing of your return, and
2. The designee to:
   1. Give information that is missing from your return to the IRS,
   2. Call the IRS for information about the processing of your return or the status of your refund or payments,
   3. Receive copies of notices or transcripts related to your return, upon request, and
   4. Respond to certain IRS notices about math errors, offsets (see Refunds, later), and return preparation.

The authorization will automatically end no later than the due date (without any extensions) for filing your 2005 tax return. This is April 17, 2006, for most people.

See your form instructions for more information.

If you want to allow the paid preparer who signed your return to discuss it with the IRS, just enter "Preparer" in the space for the designee's name.

Taxmap/pub17/p17-006.htm#TXMP7618d1f5 Signatures

Signatures

You must sign and date your return. If you file a joint return, both you and your spouse must sign the return, even if only one of you had income.

If you file a joint return, both spouses are generally liable for the tax, and the entire tax liability may be assessed against either spouse. See chapter 2.

If you e-file your return, you can use an electronic signature to sign your return. See Does My Return Have To Be on Paper, earlier.

If you are due a refund, it cannot be issued unless you have signed your return.

Enter your occupation in the space provided in the signature section. If you file a joint return, enter both your occupation and your spouse's occupation. Entering your daytime phone number may help speed the processing of your return.

Taxmap/pub17/p17-006.htm#TXMP5ae80cdd When someone can sign for you.

You can appoint an agent to sign your return if you are:

1. Unable to sign the return because of disease or injury,
2. Absent from the United States for a continuous period of at least 60 days before the due date for filing your return, or
3. Given permission to do so by the IRS office in your area.

Taxmap/pub17/p17-006.htm#TXMP491af943 Power of attorney.

A return signed by an agent in any of these cases must have a power of attorney (POA) attached that authorizes the agent to sign for you. You can use a POA that states that the agent is granted authority to sign the return, or you can use Form 2848, Power of Attorney and Declaration of Representative. Part I of Form 2848 must state that the agent is granted authority to sign the return.

Taxmap/pub17/p17-006.htm#TXMP147f2ce5 Unable to sign.

If the taxpayer is mentally incompetent and cannot sign the return, it must be signed by a court-appointed representative who can act for the taxpayer.

If the taxpayer is mentally competent but physically unable to sign the return or POA, a valid "signature" is defined under state law. It can be anything that clearly indicates the taxpayer's intent to sign. For example, the taxpayer's "X" with the signatures of two witnesses might be considered a valid signature under a state's law.

Taxmap/pub17/p17-006.htm#TXMP09668909 Spouse unable to sign.

Spouse unable to sign.

If your spouse is unable to sign for any reason, see Signing a joint return in chapter 2.

Taxmap/pub17/p17-006.htm#TXMP68b6a9b7 Child's return.

Child's return.

If a child has to file a tax return but cannot sign the return, the child's parent, guardian, or another legally responsible person must sign the child's name, followed by the words "By (your signature), parent for minor child."

Taxmap/pub17/p17-006.htm#TXMP0b55d5e3 Paid Preparer

Tax Preparer

Generally, anyone you pay to prepare, assist in preparing, or review your tax return must sign it and fill in the other blanks in the paid preparer's area of your return.

A paid preparer can sign the return manually or use a rubber stamp, mechanical device, or computer software program. The preparer is personally responsible for affixing his or her signature to the return.

If the preparer is self-employed (that is, not employed by any person or business to prepare the return), he or she should check the self-employed box in the Paid Preparer's Use Only space on the return.

The preparer must give you a copy of your return in addition to the copy filed with the IRS.

If you prepare your own return, leave this area blank. If another person prepares your return and does not charge you, that person should not sign your return.

If you have questions about whether a preparer must sign your return, contact any IRS office.

Taxmap/pub17/p17-006.htm#TXMP39591c1c Refunds

Refund

When you complete your return, you will determine if you paid more income tax than you owed. If so, you can get a refund of the amount you overpaid or, if you file Form 1040 or Form 1040A, you can choose to apply all or part of the overpayment to your next year's (2005) estimated tax. You cannot have your overpayment applied to your 2005 estimated tax if you file Form 1040EZ.

If you choose to have a 2004 overpayment applied to your 2005 estimated tax, you cannot change your mind and have any of it refunded to you after the due date (without extensions) of your 2004 return.

Follow the form instructions to complete the entries to claim your refund and/or to apply your overpayment to your 2005 estimated tax.

If your refund for 2004 is large, you may want to decrease the amount of income tax withheld from your pay in 2005. See chapter 5 for more information.

Instead of getting a paper check, you may be able to have your refund deposited directly into your account at a bank or other financial institution. Follow the form instructions to request direct deposit.

If the direct deposit cannot be done, the IRS will send a check instead.

Taxmap/pub17/p17-006.htm#TXMP14ea0fa6 Overpayment less than one dollar.

If your overpayment is less than one dollar, you will not get a refund unless you ask for it in writing.

Taxmap/pub17/p17-006.htm#TXMP5030e061 Cashing your refund check.

Cashing your refund check.

Cash your tax refund check soon after you receive it. Checks not cashed within 12 months of the date they are issued will be canceled and the proceeds returned to the IRS.

If your check has been canceled, you can apply to the IRS to have it reissued.

Taxmap/pub17/p17-006.htm#TXMP76328dc2 Refund more or less than expected.

Refund more or less than expected.

If you receive a check for a refund you are not entitled to, or for an overpayment that should have been credited to estimated tax, do not cash the check. Call the IRS.

If you receive a check for more than the refund you claimed, do not cash the check until you receive a notice explaining the difference.

If your refund check is for less than you claimed, it should be accompanied by a notice explaining the difference. Cashing the check does not stop you from claiming an additional amount of refund.

If you did not receive a notice and you have any questions about the amount of your refund, you should wait 2 weeks. If you still have not received a notice, call the IRS.

Taxmap/pub17/p17-006.htm#TXMP47ab014d Offset against debts.

If you are due a refund but have not paid certain amounts you owe, all or part of your refund may be used to pay all or part of the past-due amount. This includes past-due federal income tax, other federal debts (such as student loans), state income tax, and child and spousal support payments. You will be notified if the refund you claimed has been offset against your debts.

Taxmap/pub17/p17-006.htm#TXMP6264e86d Joint return and injured spouse.

When a joint return is filed and only one spouse owes a past-due amount, the other spouse can be considered an injured spouse. An injured spouse can get a refund for his or her share of the overpayment that would otherwise be used to pay the past-due amount.

To be considered an injured spouse, you must:

1. File a joint return, and
2. Have reported income (such as wages, interest, etc.), or
3. Have made and reported tax payments (such as federal income tax withheld from wages or estimated tax payments), or claimed the earned income credit or other refundable credit, and
4. Not be required to pay the past-due amount.

Taxmap/pub17/p17-006.htm#TXMP0856f3fb
Note.If the injured spouse's permanent home is in a community property state, then the injured spouse must only meet (1) and (4) above. For more information, see Publication 555, Community Property.

If you are an injured spouse, you must file Form 8379, Injured Spouse Claim and Allocation, to have your portion of the overpayment refunded to you. Follow the instructions on the form.

If you have not filed your joint return and you know that your joint refund will be offset, file Form 8379 with your return. You should receive your refund within 14 weeks from the date the paper return is filed or within 11 weeks from the date the return is filed electronically.

If you filed your joint return and your joint refund was offset, file Form 8379 by itself. When filed after offset, it can take up to 8 weeks to receive your refund. Do not attach the previously filed tax return, but do include copies of all Forms W-2 and W-2G for both spouses and any Forms 1099 that show income tax withheld.

Generally, you must file Form 8379 no later than 6 years from the date you are notified of the offset (3 years if the offset was used to pay federal tax debt). A separate Form 8379 must be filed for each tax year to be considered.

An injured spouse claim is different from an innocent spouse relief request. An injured spouse uses Form 8379 to request the division of the tax overpayment attributed to each spouse. An innocent spouse uses Form 8857, Request for Innocent Spouse Relief, to request relief from joint liability for tax, interest, and penalties on a joint return for items of the other spouse (or former spouse) that were incorrectly reported on the joint return. For information on innocent spouses, see Relief from joint liability under Filing a Joint Return in chapter 2.

Taxmap/pub17/p17-006.htm#TXMP048dc8d4 Amount You Owe

When you complete your return, you will determine if you have paid the full amount of tax that you owe. If you owe additional tax, you should pay it with your return.

If the IRS figures your tax for you, you will receive a bill for any tax that is due. You should pay this bill within 30 days (or by the due date of your return, if later). See Tax Figured by IRS in chapter 32.

If you do not pay your tax when due, you may have to pay a failure-to-pay penalty. See Penalties, later. For more information about your balance due, see Publication 594, The IRS Collection Process.

If the amount you owe for 2004 is large, you may want to increase the amount of income tax withheld from your pay or make estimated tax payments for 2005. See chapter 5 for more information.

Taxmap/pub17/p17-006.htm#TXMP4d186318 How To Pay

If you have an amount due on your tax return, you can pay by check, money order, or credit card. If you filed electronically, you also may be able to make your payment electronically.

You do not have to pay if the amount you owe is less than $1.

Taxmap/pub17/p17-006.htm#TXMP32b39d1c Check or money order.

If you pay by check or money order, make it out to the "United States Treasury." Show your correct name, address, SSN, daytime phone number, and the tax year and form number on the front of your check or money order. If you are filing a joint return, enter the SSN shown first on your tax return.

For example, if you file Form 1040 for 2004 and you owe additional tax, show your name, address, SSN, daytime phone number, and "2004 Form 1040" on the front of your check or money order. If you file an amended return (Form 1040X) for 2003 and you owe tax, show your name, address, SSN, daytime phone number, and "2003 Form 1040X" on the front of your check or money order.

Enclose your payment with your return, but do not attach it to the form. If you filed Form 1040, please complete Form 1040-V, Payment Voucher, and enclose it with your payment and return. Form 1040-V will help us process your payment more accurately and efficiently. Follow the instructions that come with the form.

Do not mail cash with your return. If you pay cash at an IRS office, keep the receipt as part of your records.

Taxmap/pub17/p17-006.htm#TXMP5688a09a Payment not honored.

If your check or money order is not honored by your bank (or other financial institution) and the IRS does not receive the funds, you still owe the tax. In addition, you may be subject to a dishonored check penalty.

Taxmap/pub17/p17-006.htm#TXMP3b5144f4 Electronic payment options.

Electronic Deposits

Electronic payment options are convenient, safe and secure methods for paying individual income taxes. There's no check to write, money order to buy, or voucher to mail. Payments can be made 24 hours a day, 7 days a week.

Taxmap/pub17/p17-006.htm#TXMP0543bf48 Credit card.

You can use your American Express®, Discover®, MasterCard®, or Visa® credit card.

To pay by credit card, call a service provider and follow the recorded instructions. You can also pay by credit card over the Internet using a service provider's web site.

The service providers charge a convenience fee based on the amount you are paying. Fees may vary between the providers. You will be told what the fee is during the transaction and will have the option to continue or end the transaction. You may also obtain the convenience fee by calling the service provider's automated customer service telephone number or visiting their respective web site.

Do not add the convenience fee to your tax payment.

If you pay by credit card, write the confirmation number you were given at the end of the transaction and the tax payment amount in the upper left corner of page 1 of your tax return.

Service Providers

Official Payments Corporation
To make a payment, call	1-800-2PAY-TAX SM
or	1-800-272-9829
For Customer Service	1-877-754-4413
Web Address	www.officialpayments.com
Link2Gov Corporation
To make a payment, call	1-888-PAY-1040 SM
or	1-888-729-1040
For Customer Service	1-888-658-5465
Web Address	www.PAY1040.com

You can e-file and pay in a single step by authorizing a credit card payment. This option is available through some tax software packages and tax professionals. You can also pay by credit card using the telephone or the Internet.

Taxmap/pub17/p17-006.htm#TXMP4eb37a4f Electronic funds withdrawal.

You can e-file and pay in a single step by authorizing an electronic funds withdrawal from your checking or savings account. This option is available through tax software packages, tax professionals, and TeleFile. If you select this payment option, you will need to have your account number, your financial institution's routing transit number, and account type (checking or savings). You can schedule the payment for any future date up to and including the return due date (April 15, 2005).

Be sure to check with your financial institution to make sure that an electronic funds withdrawal is allowed and to get the correct routing and account numbers.

Taxmap/pub17/p17-006.htm#TXMP1cadbf04 Electronic Federal Tax Payment System (EFTPS).

EFTPS is a free tax payment system that all individual and business taxpayers can use. You can make payments online or by phone.

Here are just a few of the benefits of this easy-to-use system.

• Convenient and flexible. You can use it to schedule payments in advance. For example, you can schedule estimated tax payments (Form 1040-ES) or installment agreement payments weekly, monthly, or quarterly.
• Fast and accurate. You can make a tax payment in minutes. Because there are verification steps along the way, you can check and review your information before sending it.
• Safe and secure. It offers the highest available levels of security. Every transaction receives an immediate confirmation.

For more information or details on enrolling, visit www.EFTPS.gov or call EFTPS Customer Service at 1-800-555-4477.

Taxmap/pub17/p17-006.htm#TXMP44a3792d Estimated tax payments.

Estimated tax payments.

Do not include any 2005 estimated tax payment in the payment for your 2004 income tax return. See chapter 5 for information on how to pay estimated tax.

Taxmap/pub17/p17-006.htm#TXMP34ee15af Interest

Interest

Interest is charged on tax you do not pay by the due date of your return. Interest is charged even if you get an extension of time for filing.

If the IRS figures your tax for you, interest cannot start earlier than the 31st day after the IRS sends you a bill. For information, see Tax Figured by IRS in chapter 32.

Taxmap/pub17/p17-006.htm#TXMP51904be5 Interest on penalties.

Interest on penalties.

Interest is charged on the failure-to-file penalty, the accuracy-related penalty, and the fraud penalty from the due date of the return (including extensions) to the date of payment. Interest on other penalties starts on the date of notice and demand, but is not charged on penalties paid within 21 calendar days from the date of the notice (or within 10 business days if the notice is for $100,000 or more).

Taxmap/pub17/p17-006.htm#TXMP431d7eed Interest due to IRS error or delay.

Interest due to IRS error or delay.

All or part of any interest you were charged can be forgiven if the interest is due to an unreasonable error or delay by an officer or employee of the IRS in performing a ministerial or managerial act.

A ministerial act is a procedural or mechanical act that occurs during the processing of your case. A managerial act includes personnel transfers and extended personnel training. A decision concerning the proper application of federal tax law is not a ministerial or managerial act.

The interest can be forgiven only if you are not responsible in any important way for the error or delay and the IRS has notified you in writing of the deficiency or payment. For more information, get Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund.

Interest and certain penalties may also be suspended for a limited period if you filed your return by the due date (including extensions) and the IRS does not provide you with a notice specifically stating your liability and the basis for it before the close of the 18-month period beginning on the later of:

• The date the return is filed, or
• The due date of the return without regard to extensions.

For more information, get Publication 556.

Taxmap/pub17/p17-006.htm#TXMP17fa381e Installment Agreement

Installment Agreement

If you cannot pay the full amount due with your return, you can ask to make monthly installment payments for the full or a partial amount. However, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2005, even if your request to pay in installments is granted. If your request is granted, you must also pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible with your return. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan.

To ask for an installment agreement, use Form 9465, Installment Agreement Request. You should receive a response to your request within 30 days. But if you file your return after March 31, it may take longer for a reply.

In addition to paying by check or money order, you can use a credit card or EFTPS to make installment agreement payments. See Credit card and Electronic Federal Tax Payment System (EFTPS), under How To Pay, earlier.

Taxmap/pub17/p17-006.htm#TXMP4dbef96c Guaranteed availability of installment agreement.

Guaranteed availability of installment agreement.

The IRS must agree to accept the full payment of your tax liability in installments if, as of the date you offer to enter into the agreement:

1. Your total taxes (not counting interest, penalties, additions to the tax, or additional amounts) do not exceed $10,000,
2. In the last 5 years, you (and your spouse if the liability relates to a joint return) have not:
   1. Failed to file any required income tax return,
   2. Failed to pay any tax shown on any such return, or
   3. Entered into an installment agreement for the payment of any income tax,
3. You show you cannot pay your income tax in full when due,
4. The tax will be paid in full in 3 years or less, and
5. You agree to comply with the tax laws while your agreement is in effect.

Taxmap/pub17/p17-006.htm#TXMP0740d270 Gift To Reduce Debt   Held by the Public

Gift To Reduce Debt Held by the Public

You can make a contribution (gift) to reduce debt held by the public. If you wish to do so, make a separate check payable to "Bureau of the Public Debt." Send your check to: Bureau of the Public Debt   Department G   P.O. Box 2188   Parkersburg, WV 26106-2188. Or, enclose your separate check in the envelope with your income tax return. Do not add this gift to any tax you owe.

You can deduct this gift as a charitable contribution on next year's tax return if you itemize your deductions on Schedule A (Form 1040).

Taxmap/pub17/p17-006.htm#TXMP26084392 Peel-Off Address Label

After you have completed your return, peel off the label with your name and address from the back of your tax return package and place it in the appropriate area of the Form 1040, Form 1040A, or Form 1040EZ you send to the IRS. If you have someone prepare your return, give that person your label to use on your tax return.

If you file electronically and you are not eligible or choose not to sign your return using your PIN, use your label on Form 8453 or 8453-OL. (More information on electronic filing is found earlier in this chapter.)

The label helps the IRS to correctly identify your account. It also saves processing costs and speeds up processing so that refunds can be issued sooner.

You must write your SSN in the spaces provided on your tax return.

Taxmap/pub17/p17-006.htm#TXMP13ceafdf Correcting the label.

Make necessary name and address changes on the label. If you have an apartment number that is not shown on the label, please write it in. If you changed your name, see the discussion under Social Security Number, earlier.

Taxmap/pub17/p17-006.htm#TXMP30f0d165 No label.

If you did not receive a tax return package with a label, print or type your name and address in the spaces provided at the top of Form 1040 or Form 1040A. If you are married filing a separate return, do not enter your spouse's name in the space at the top. Instead, enter his or her name in the space provided on line 3.

If you file Form 1040EZ and you do not have a label, print or type this information in the spaces provided.

Taxmap/pub17/p17-006.htm#TXMP37fec11c P.O. box.

Address on Return

If your post office does not deliver mail to your street address and you have a P.O. box, print your P.O. box number on the line for your present home address instead of your street address.

Taxmap/pub17/p17-006.htm#TXMP4226dfed Foreign address.

Foreign address.

If your address is outside the United States or its possessions or territories, enter the information on the line for "City, town or post office, state, and ZIP code" in the following order:

1. City,
2. Province or state, and
3. Name of foreign country. (Do not abbreviate the name of the country.)

Follow the country's practice for entering the postal code.

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