Publication 595 - Introductory Material Future Developments Introduction Important Reminder Publication 595 - Main Contents Capital Construction Fund CCF Accounts Opening a CCF account. Eligible vessels. Vessel weighing 5 tons or more. Vessel weighing less than 5 tons. Deferring tax on CCF deposits and earnings. Types of Accounts You Must Maintain Within a CCF Capital account. Capital gain account. Ordinary income account. Tax Treatment of CCF Deposits Capital gains. Depreciation recapture. Earnings from operations. Self-employment tax. Tax Treatment of CCF Earnings Capital gains. Interest and dividends. Tax-exempt interest. Tax Treatment of CCF Withdrawals Qualified Withdrawals Qualified vessel. How to determine the source of qualified withdrawals. Excluding qualified withdrawals from tax. Nonqualified Withdrawals How to determine the source of nonqualified withdrawals. Paying tax on nonqualified withdrawals. Interest. Interest deduction. Reporting the additional tax and interest. Tax benefit rule. More Information How To Get Tax Help Preparing and filing your tax return. Free options for tax preparation. Using online tools to help prepare your return. Need someone to prepare your tax return? Coronavirus. Tax reform. Employers can register to use Business Services Online. IRS social media. Watching IRS videos. Online tax information in other languages. Free interpreter service. Getting tax forms and publications. Access your online account (individual taxpayers only). Using direct deposit. Getting a transcript of your return. Reporting and resolving your tax-related identity theft issues. Checking on the status of your refund. Making a tax payment. What if I can’t pay now? Filing an amended return. Checking the status of your amended return. Understanding an IRS notice or letter you’ve received. Contacting your local IRS office. The Taxpayer Advocate Service (TAS) Is Here To Help You What Is TAS? How Can You Learn About Your Taxpayer Rights? What Can TAS Do For You? How Can You Reach TAS? How Else Does TAS Help Taxpayers? TAS for Tax Professionals Low Income Taxpayer Clinics (LITCs) Publication 595 (10/2021), Capital Construction Fund for Commercial Fishermen Revised: October 2021 Publication 595 - Introductory Material 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. Publication 595 - Main Contents 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. 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-and-financial-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. Allowable depreciation deductions for agreement vessels. Any nontaxable return of capital from either (a) or (b), below. The sale or other disposition of agreement vessels. Insurance or indemnity proceeds attributable to agreement vessels. 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. Any capital gain from either of the following sources. The sale or other disposition of agreement vessels held for more than 6 months. Insurance or indemnity proceeds attributable to agreement vessels held for more than 6 months. 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. 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. Any capital gain from the following sources reduced by any capital losses from assets held in your CCF account for 6 months or less. The sale or other disposition of agreement vessels held for 6 months or less. Insurance or indemnity proceeds attributable to agreement vessels held for 6 months or less. Any capital gain from assets held in your CCF account for 6 months or less. Any ordinary income (such as depreciation recapture) from either of the following sources. The sale or other disposition of agreement vessels. Insurance or indemnity proceeds attributable to agreement vessels. 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." 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. The capital account. The capital gain account. 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. 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. The ordinary income account. The capital gain account. 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. .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. The part that did not reduce your tax liability for any year prior to the withdrawal year is not taxed. 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-fund-program. 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. 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. 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 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.
