Tax Topic 309 – Roth IRA Contributions

A Roth Individual Retirement Arrangement (IRA) is an account or annuity set up in the United States solely for the benefit of you or your beneficiaries. You can contribute to a Roth IRA if you have taxable compensation and your modified AGI is within certain limitations. Regardless of the amount of your AGI, you may be able to convert amounts from either a traditional, SEP, or SIMPLE IRA into a Roth IRA. You also may be able to roll over amounts from a qualified retirement plan to a Roth IRA. However, it differs from traditional IRAs in that contributions are not deductible.

What’s New for 2010

Due date for contributions and withdrawals. Contributions can be made to your IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. Because Emancipation Day, Saturday, April 16, 2011, a legal holiday in the District of Columbia, will be observed on Friday, April 15, 2011, the due date for making contributions for 2010 is April 18, 2011. See When Can Contributions Be Made? in chapter 1.There is a 6% excise tax on excess contributions not withdrawn by the due date (including extensions) for your return. You will not have to pay the 6% tax if any 2010 excess contributions are withdrawn by April 18, 2011 (including extensions).

Modified AGI limit for traditional IRA contributions increased. For 2010, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

• More than $89,000 but less than $109,000 for a married couple filing a joint return or a qualifying widow(er),
• More than $56,000 but less than $66,000 for a single individual or head of household, or
• Less than $10,000 for a married individual filing a separate return.

If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $167,000 but less than $177,000. If your modified AGI is $177,000 or more, you cannot take a deduction for contributions to a traditional IRA.

Modified AGI limit for Roth IRA contributions increased. For 2010, your Roth IRA contribution limit is reduced (phased out) in the following situations.

• Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $167,000. You cannot make a Roth IRA contribution if your modified AGI is $177,000 or more.
• Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2010 and your modified AGI is at least $105,000. You cannot make a Roth IRA contribution if your modified AGI is $120,000 or more.
• Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more.

Conversions and rollovers to Roth IRAs. The modified AGI and filing status requirements for converting and rolling over amounts to a Roth IRA are eliminated.Also, for any 2010 conversion or rollover, any amounts that would be included as income will be included in income in equal amounts in 2011 and 2012. You can choose to include the entire amount in income in 2010.

Catch-up contributions in certain employer bankruptcies. The provision for additional catch-up contributions in certain employer bankruptcies does not apply for 2010 or later years.

Qualified charitable distributions (QCDs) made in January 2011. The provision for QCDs has been extended for 2010 and 2011. If you make a QCD in January 2011, you can elect to have it treated as made in 2010. See January 2011 QCDs in chapter 1 for more information.

What’s New for 2011

Modified AGI limit for traditional IRA contributions increased. For 2011, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

• More than $90,000 but less than $110,000 for a married couple filing a joint return or a qualifying widow(er),
• More than $56,000 but less than $66,000 for a single individual or head of household, or
• Less than $10,000 for a married individual filing a separate return.

If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $169,000 but less than $179,000. If your modified AGI is $179,000 or more, you cannot take a deduction for contributions to a traditional IRA.

Modified AGI limit for Roth IRA contributions increased. For 2011, your Roth IRA contribution limit is reduced (phased out) in the following situations.

• Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $169,000. You cannot make a Roth IRA contribution if your modified AGI is $179,000 or more.
• Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2011 and your modified AGI is at least $107,000. You cannot make a Roth IRA contribution if your modified AGI is $122,000 or more.
• Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more.

How to Prepare and File Your Taxes Electronically

IRS Tax Tip 2011-10, January 14, 2011

IRS e-file: It’s safe. It’s easy. It’s time. IRS e-file is now the norm; not the exception. The number of e-filed Form 1040 tax returns is approaching 1 billion after 20 years of safe, secure service. In 2010, 99 million people – 70 percent of all individual taxpayers – used IRS e-file to electronically transmit their tax returns to the IRS. It’s safe, it’s easy to use and it’s time for you to try it.

The 2011 tax season will mark a significant change for both tax preparers and taxpayers. Starting January 1, many tax return preparers must be authorized IRS e-file providers so they can transmit tax returns electronically. The requirement does not apply to volunteer tax preparers. More information for paid preparers is available at http://www.irs.gov.

For taxpayers, this means it’s time to give e-file a try. The number of people who use a paper tax return or who mail a tax return dwindles each year – and for good reason.

An e-filed tax return is safe and secure. The taxpayer receives an acknowledgement within 48 hours that that IRS has received the return. If the IRS rejects the return, the receipt will explain why so the return can be quickly corrected and resubmitted.

Faster Refunds; Greater Payment Options

An e-filed tax return means a fast refund. Taxpayers who combine e-file and direct deposit can get their refunds in as few as 10 days. Nearly 75 percent of all taxpayers receive a refund and last year the average refund was approximately $2,900.

An e-filed tax return means more payment options. Taxpayers can file early and set an automatic payment withdrawal date for any date on or before the April due date. Some taxpayers may like to pay by paper check. And, they still can by mailing a check with a voucher. Taxpayers can even pay by credit card.

Get It Done with e-file

Using e-file is easy. You can e-file through your tax preparer, through commercial tax preparation software or through Free File, the free tax preparation and e-filing service available exclusively at http://www.irs.gov.

The number of people preparing their tax returns on their personal computers is growing tremendously. Software – such as that offered through Free File – guides people through a step-by-step question-and-answer process. So whether you do it yourself or have it done, just get it done with e-file.

Tax Topic 308 – Amended Tax Returns

If you discover an error after your return has been mailed, you may need to amend your return. The service center may correct errors in math on a return and may accept returns with certain forms or schedules left out. In these instances, do not amend your return! However, do file an amended return if your filing status, your income, your deductions or credits are incorrect.

Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040NR (PDF), or Form 1040NR-EZ (PDF). If you are filing to claim an additional refund, wait until you have received your original refund (you may cash that check). If you owe additional tax for a tax year, file Form 1040X and pay the tax by April 15 of the following year to avoid penalties and interest. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. The Form 1040X Instructions list the addresses for the service centers.

File a separate Form 1040X for each year you are amending. Mail each form in a separate envelope. Be sure to indicate the year of the return you are amending on the front of Form 1040X.

The Form 1040X has been redesigned for tax year 2009. Previously the form consisted of three columns; Column A-Original amount, Column B-Net change, and Column C-Correct amount. The redesigned form now has just one column where the Correct Amount is the only figure entered, making it easier to make changes to previously filed returns. Do not include any interest or penalty corrections on Form 1040X; they will be adjusted automatically. See Publication 17, Your Federal Income Tax (For Individuals), Chapter 1, for more information.

There is an area on the front of the form to explain why you are filing Form 1040X. Generally, to claim a refund, Form 1040X must be filed within 3 years from the date of your original return or within 2 years from the date you paid the tax, whichever is later. If you file a claim for certain items, these dates and limits may not apply. See Publication 17, Chapter 1 for a complete list. Returns filed before the due date (without regard to extensions) are considered filed on the due date.

• Attach copies of any forms or schedules that are being changed as a result of the amendment, including any Form(s) W-2 received after the original return was filed.
• Tax forms can be obtained by calling 800-829-3676 or visiting www.irs.gov
• An amended tax return cannot be filed electronically under the e-file system.
• Normal processing time for Forms 1040X is 8 to 12 weeks from the IRS receipt date.

Please Note: Your state tax liability may be affected by a change made on your federal return. For information on how to correct your state tax return, contact your state tax agency.

Eight Facts About Income Tax Filing Status

IRS Tax Tip

2011-09,  January 13, 2011

The first step to filing your federal income tax return is to determine which filing status to use. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child.

Here are eight facts about the five filing status options the IRS wants you to know so that you can choose the best option for your situation.

1. Your marital status on the last day of the year determines your marital status for the entire year.
2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.
3. Single filing status generally applies to anyone who is unmarried, divorced or legally separated according to state law.
4. A married couple may file a joint return together. The couple’s filing status would be Married Filing Jointly.
5. If your spouse died during the year and you did not remarry during 2010, usually you may still file a joint return with that spouse for the year of death.
6. A married couple may elect to file their returns separately. Each person’s filing status would generally be Married Filing Separately.
7. Head of Household generally applies to taxpayers who are unmarried. You must also have paid more than half the cost of maintaining a home for you and a qualifying person to qualify for this filing status.
8. You may be able to choose Qualifying Widow(er) with Dependent Child as your filing status if your spouse died during 2008 or 2009, you have a dependent child and you meet certain other conditions.

There’s much more information about determining your filing status in IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Publication 501 is available at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676). You can also use the Interactive Tax Assistant on the IRS website to determine your filing status. The ITA tool is a tax law resource on the IRS website that takes you through a series of questions and provides you with responses to tax law questions.

Tax Topic 307 – Backup Withholding

Banks or other businesses that pay you certain kinds of income must file an information return Form 1099 with the IRS. The information return shows how much you were paid during the year. It also includes your name and taxpayer identification number (TIN).

These payments generally are not subject to withholding. However, “backup” withholding is required in certain situations.

Payments subject to backup withholding: Backup withholding can apply to most kinds of payments that are reported on Form 1099. These include:

• Interest payments (Form 1099–INT)
• Dividends (Form 1099–DIV)
• Patronage dividends, but only if at least half of the payment is in money (Form 1099–PATR)
• Rents, profits, or other gains (Form 1099–MISC)
• Commissions, fees, or other payments for work you do as an independent contractor (Form 1099–MISC)
• Royalty payments (Form 1099–MISC), and
• Certain other payments.

Backup withholding also may apply to gambling winnings.

Withholding rules. When you open a new account, make an investment, or begin to receive payments reported on Form 1099, the bank or other business will give you Form W-9, Request for Taxpayer Identification Number and Certification, or a similar form. You must enter your TIN on the form and, if your account or investment will earn interest or dividends, you also must certify (under penalties of perjury) that your TIN is correct and that you are not subject to backup withholding.

The payer must withhold at a flat 28% rate in the following situations:

• You do not give the payer your TIN in the required manner
• The IRS notifies the payer that the TIN you gave is incorrect
• You are required, but fail, to certify that you are not subject to backup withholding
• The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. The IRS will do this only after it has mailed you four notices over at least a 210-day period.

How to prevent or stop backup withholding. If you have been notified by a payer that the TIN you gave is incorrect, you usually can prevent backup withholding from starting or stop backup withholding once it has begun by giving the payer your correct name and TIN. You must certify that the TIN you give is correct.

If you have been notified that you underreported interest or dividends, you must request and receive a determination from the IRS to prevent backup withholding from starting or to stop backup withholding once it has begun.

Backup withholding. If income tax has been withheld under the backup withholding rule, take credit for it on your tax return for the fiscal year in which you received the income.

More detailed information on backup withholding can be found in Publication 1281 (PDF), Backup Withholding for Missing and Incorrect Name/Tin(s), including the procedures for payers, and in Publication 505, Tax Withholding and Estimated Tax.

Tax Help in Spanish – Ayuda con los Impuestos en Español

IRS Tax Tip 2011-08,  January 12, 2011

Tax information can be tough to understand in any language, but it can be even more difficult if it is not in your first language. The IRS offers a wide range of free and easy-to-use products and services for Spanish speaking taxpayers. Here are nine ways you can get help from the IRS if you need assistance with your federal taxes in Spanish:

1. Get answers 24 hours a day seven days a week http://www.irs.gov/espanol has a wealth of information accessible all day, every day for individuals and businesses. You will find links to tax-related information, disaster relief, identity theft and warnings about common tax scams that victimize taxpayers. You can also check the status of your tax refund through the online tool ¿Dónde está mi reembolso? and even find out if you qualify for the Earned Income Tax Credit, a refundable tax credit for many people who earned less than $48,000, using the Asistente EITC on our secure website.
2. Find out all about Free File Let Free File do the hard work for you with brand-name tax software or online fillable forms. It’s exclusively at http://www.irs.gov.  Everyone can find an option to prepare their tax return and e-file it for free. If you made $58,000 or less, you qualify for free tax software that is offered through a private-public partnership with manufacturers. Visit http://www.irs.gov/freefile and select En Español to review your options.
3. Find out about e-file After 21 years, IRS e-file has become the safe, easy and most common way to file a tax return. Last year, 70 percent of taxpayers – 99 million people – used IRS e-file. Starting in 2011, many tax preparers will be required to use e-file and will explain your filing options to you. This is your chance to give it a try. IRS e-file is approaching 1 billion returns processed safely and securely. If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, combine e-file with direct deposit and you get your refund in as few as 10 days. For more information visit www.irs.gov/espanol and select Opciones Electrónicas to review your options.
4. Get up-to-date at the Multimedia Center Watch YouTube video tax tips and listen to audio podcasts on various IRS topics in Spanish and English by entering the keywords “Centro Multimediático” into the search box of the IRS website.
5. TeleTax is a toll-free, automated telephone service. TeleTax provides helpful pre-recorded tax topic messages and refund information. You can find a list more than 125 TeleTax topics, available in Spanish and English, in the instructions for Form 1040, 1040A or 1040EZ. TeleTax can also help if at least four weeks have passed since you filed your return and you want to check on the status of your federal refund. Having a copy of your return handy will help you respond to the prompts on the automated system. TeleTax is available 24 hours a day, seven days a week at 800-829-4477.
6. Get tax forms and publications You can view and download several tax forms and publications in Spanish directly from http://www.irs.gov/espanol at any hour of the day or night.
7. Visit the IRS Spanish Newsroom Find the agency’s most recent announcements, tips and information on recently implemented tax law that could affect you. Avoid missing any benefits and keep up to date by typing the keywords “Noticias en Espanol” into the search box of the IRS website.
8. Multilingual Assistance at IRS Taxpayer Assistance Centers Multilingual services are offered to taxpayers in more than 150 languages, including Spanish, through bilingual employees and an Over-the-Phone Interpreter. TAC locations, hours and services are available at http://www.irs.gov/individuals by clicking on the link for Contact My Local Office in the left tool bar section.
9. Toll-Free Telephone Assistance is available from Spanish-speaking IRS representatives by calling the IRS customer service line at 800-829-1040 and then pressing 8.

Tax Topic 306 – Penalty for Underpayment of Estimated Tax

The United States income tax is a pay-as-you-go tax, which means that tax must be paid as you earn or receive your income during the year. You can either do this through withholding or by making estimated tax payments. If you do not pay your tax through withholding, or do not pay enough tax that way, you might also have to pay estimated taxes. If you did not pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. There are special rules for farmers and fishermen. Please refer to Publication 505, Tax Withholding and Estimated Tax, for additional information.

Generally, the payments should be made in four equal amounts to avoid a penalty. However, if your income is received unevenly during the year, you may be able to avoid or lower the penalty by annualizing your income and making unequal payments. Use Form 2210 (PDF), Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you owe a penalty for underpaying your estimated tax.

The penalty may be waived if:

1. The failure to make estimated payments was caused by a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or
2. You retired (after reaching age 62) or became disabled during the tax year for which estimated payments were required to be made or in the preceding tax year, and the underpayment was due to reasonable cause and not willful neglect.

Please refer to the Form 1040 Instructions or the Form 1040A Instructions for where to report the estimated tax penalty on your return.

Free Tax Help Available Nationwide

IR-2011-13, Jan. 28, 2011

WASHINGTON — Over 12,000 free tax preparation sites will be open nationwide this year as the Internal Revenue Service continues to expand its partnerships with nonprofit and community organizations providing vital tax preparation services for low- to moderate-income and elderly taxpayers.

The IRS Volunteer Income Tax Assistance (VITA) Program offers free tax help to people who earn less than $49,000. The Tax Counseling for the Elderly (TCE) Program offers free tax help to taxpayers who are 60 and older.

Today, partners and local officials will be hosting news conferences or issuing news releases nationwide to highlight the Earned Income Tax Credit (EITC) and their free tax preparation programs. The EITC is one of the federal government’s largest benefit programs for working families and individuals. But taxpayers must file a tax return, even if they do not have a filing requirement, and specifically claim the credit to get the benefit.

Taxpayers need to present the following items to have their returns prepared:

• Photo identification
• Valid Social Security cards for the taxpayer, spouse and dependents
• Birth dates for primary, secondary and dependents on the tax return
• Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
• Interest and dividend statements from banks (Forms 1099)
• A copy of last year’s federal and state returns, if available
• Bank routing numbers and account numbers for direct deposit
• Other relevant information about income and expenses
• Total paid for day care
• Day care provider’s identifying number

To file taxes electronically on a Married Filing Jointly tax return, both spouses must be present to sign the required forms.

Trained community volunteers can help eligible taxpayers with all special credits, such as the EITC, Child Tax Credit or Credit for the Elderly. Also, many sites have language specialists to assist people with limited English skills. To locate the nearest VITA site, taxpayers should check the VITA site List available online at www.IRS.gov or call 1-800-906-9887.

As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to people age 60 and older. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP’s Internet site.

The military also partners with the IRS to provide free tax assistance to military personnel and their families. The Armed Forces Tax Council (AFTC) consists of the tax program coordinators for the Army, Air Force, Navy, Marine Corps and Coast Guard. The AFTC oversees the operation of the military tax programs worldwide, and serves as the main conduit for outreach by the IRS to military personnel and their families. Volunteers are trained and equipped to address military specific tax issues, such as combat zone tax benefits and the effect of the EITC guidelines.

In addition to free tax return preparation assistance, most sites use free electronic filing. An e-filed tax return means a fast refund. Taxpayers who combine e-file and direct deposit can generally get their refunds in as few as 10 days.

Taxpayers who file electronically also can opt to file now and pay later. If taxpayers owe, they can make a payment April 18, 2011, by authorizing an electronic funds withdrawal (direct debit) from a checking or savings account, paying by credit, by check or money order (made out to the United States Treasury) using Form 1040-V, Payment Voucher.

For taxpayers who want to prepare and e-file their own tax returns, there is IRS Free File. Everyone can use Free File, the free way to prepare and e-file federal taxes either through brand-name software or online fillable forms. Individuals or families with 2010 adjusted gross incomes of $58,000 or less can use Free File software. Free File Fillable Forms, the electronic version of IRS paper forms, has no income restrictions. For either service, taxpayers must go through www.irs.gov/freefile toaccess the programs.

Taxpayers also can seek free assistance at the 400 IRS Taxpayer Assistance Centers nationwide. On Saturday, Jan. 29, and Saturday, Feb. 5, the IRS will open selected offices to provide special assistance to EITC eligible taxpayers. In addition, a number of community partners will also open their doors. Locations nationwide are listed on www.IRS.gov.

Tax Topic 305 – Recordkeeping

Well organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination, or to prepare a response if an IRS notice is received.

Records such as receipts, canceled checks, and other documents that support an item of income or a deduction, or a credit appearing on a return must be kept so long as they may become material in the administration of any internal revenue law, which generally will be until the period of limitation expires for that return. For assessment of tax you owe, this generally is 3 years from the date you filed the return. Returns filed before the due date are treated as filed on the due date.

There is no period of limitations to assess tax when a return is fraudulent or when no return is filed. If income that you should have reported is not reported, and it is more than 25% of the gross income shown on the return, the time to assess is 6 years from when the return is filed. For filing a claim for credit or refund, the period to make the claim generally is 3 years from the date the original return was filed, or 2 years from the date the tax was paid, whichever is later. For filing a claim for a loss from worthless securities the time to make the claim is 7 years from when the return was due.

If you are an employer, you must keep all your employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later.

If you are in business, there is no particular method of bookkeeping you must use. However, you must use a method that clearly and accurately reflects your gross income and expenses. The records should substantiate both your income and expenses.

• Publication 583, Starting a Business and Keeping Records
• Publication 463, Travel, Entertainment, Gift, and Car Expenses, provide additional information on required documentation for taxpayers with business expenses
• Publication 552, Recordkeeping for Individuals, provides more information on recordkeeping requirements for individuals

Estate Tax What is it, When to File and Where?

The Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death (Refer to Form 706 (PDF)). The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your “Gross Estate.” The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.

Once you have accounted for the Gross Estate, certain deductions (and in special circumstances, reductions to value) are allowed in arriving at your “Taxable Estate.” These deductions may include mortgages and other debts, estate administration expenses, property that passes to surviving spouses and qualified charities. The value of some operating business interests or farms may be reduced for estates that qualify.

What’s New – Estate Tax

Form 706 Changes

The unified credit equivalent is $1,500,000 (2004 – 2005), $2,000,000 (2006 – 2008) and increases to $3,500,000 for decedents dying on or after January 1, 2009.

For Estate Tax returns after 12/31/1976, Line 4 of Form 706 lists the cumulative amount of adjusted taxable gifts within the meaning of IRC section 2503. The computation of gift tax payable (Line 7 of Form 706) uses the IRC section 2001(c) rate schedule in effect as of the date of the decedent’s death, rather than the actual amount of gift taxes paid with respect to the gifts.

With the top bracket tax rates decreasing from 55% (in 2001) down to 45% (in 2007) and an annual drop in rates in-between, Estate Tax Attorneys have encountered situations where gift taxes paid were greater than the tax calculated using the rate in effect at the date of death.

It appears that some Form 706 software used by practitioners require a manual input of the gift tax payable line. Some preparers are reporting gift taxes actually paid rather than calculating the gift tax payable under date of death rates. These errors result in underpayment of estate tax due. Cases with this issue will involve estates where large gifts were made during life and at a time when tax rates were higher than at date of death. (Posted 6-5-06)

Exclusions

• The annual exclusion for gifts is $11,000 (2004 – 2005), $12,000 (2006 – 2008), $13,000 (effective January 1, 2009 per IR 2008 -117).

• The applicable exclusion amount is increased to $3,500,000 for estates effective for decedents dying on or after January 1, 2009 and remains at $1,000,000 for gifts.

When to File

Generally, the estate tax return is due nine months after the date of death. A six month extension is available if requested prior to the due date and the estimated correct amount of tax is paid before the due date.

The gift tax return is due on April 15th following the year in which the gift is made.

Where to File

Use the below mailing address for all tax forms filed at the Cincinnati Service Center including Estate and Gift tax returns:

Internal Revenue Service
Cincinnati, OH 45999

To mail FedEx packages, please use the following street address:

Internal Revenue Service
201 W. Rivercenter Blvd
Covington, KY 41011