Federal tax returns
All the federal tax returns are filed with IRS or Internal Revenue Service. The reader should note here that various types of returns may also be collected by local or state tax collection agencies as identified by IRS. Federal Tax Returns comprises many types of returns like income tax returns etc. The tax returns in United States are prepared by means of different types of tax forms that have been prescribed by IRS or other taxing authorities. Tax returns submitted by a person denote the tax liabilities and payments made by a person and the overall computation of tax.
Various types of tax returns:
Various types of tax returns submitted in United States can be divided into different categories. First category is the transfer tax returns. In these types of tax returns, all taxes pertaining to transfer of real estate are filed. Similarly, taxes pertaining to gifts made are also filed by means of this return. This category includes Form 706 that is means for U.S estate tax return and Form 709 that is used for Gift tax return. Statutory Excise Taxes is next category under which different types of tax returns are filed. This category consist of Federal Excise Returns that are made on quarterly basis by means of Form 720, Heavy Vehicle use tax returns that are made by means of Form 2290, tax returns pertaining to Return of Excise taxes associated with Employee Benefit Plans and submitted by means of Form 5330 etc. Other category of Federal Tax Return is the Employment Taxes, based on the payrolls. This type of tax returns include FUTA or Federal Unemployment tax returns that is submitted by means of Form 940 and Quarterly Federal Tax Returns made by employers and submitted by means of Form 941. One of most important category of federal tax returns submitted in United States is the Income Tax.
This category comprises different types of tax returns. First is the Individual Income Tax Return that is submitted by means of two forms, Form 1040 and Form 1040A. Second is the income tax return submitted by single and joint capacity people who have no dependents This type of tax return is submitted by means of Form 1040 EZ. Similarly, income tax returns filed by estates and trusts are submitted by means of Form 1041. Income tax returns pertaining to the partnership income are submitted by means of Form 1065 whereas income tax returns pertaining to various titles as well as information returns are filed by way of Form 1099 series. All the corporate file their income tax returns by means of Form 1120 whereas all the S corporations file their income tax returns by way of Form 1120S.
The reader should understand that apart from tax returns, there are also information returns that are filed with Internal Revenue Service and these reports are used for the transmission of information pertaining to receipts, income and other matters that have direct or indirect affect on the tax liabilities. Examples of information returns in United States are Form W2 and Form 1099. If there is any company, party or an employer that has paid amount to such a source which is a taxpayer, it is required to file the information return directly with the Internal Revenue Service. In fact, payee is also mailed a copy of that return.
Other apects:
There are many other aspects related to federal tax returns that have to be completely understood by a person. First is the amended return filing. All the taxpayers that file return with Internal Revenue Service are allowed to file the amended returns, in case some amendments are made by a person. The amended return is required to be submitted in those cases only where the errors made by a person in filing the returns are other than calculations. This is because IRS makes necessary calculations and also carries out corrections if needed. All the individuals can file the amended returns by means of Form 1040X. This form is called as the amended Individual income tax return form.
All the taxpayers are required to file the federal tax returns under the section 26 USC 6011. The above section is applicable to the general legal obligation whereas the specific legal obligation is fulfilled by means of section 26 USC 6012. All the individuals in United States are required to file the federal income tax return by means of Form 1040 and a person finds many variations of this form. There are also many supplemental forms that are filed along with this form. All the residents of United States as well as citizens are required to file the federal income tax returns if they realize the total income more than the specified amount. This generally happens due to adjustment made for inflation. The total income or the gross income of a person includes all types of incomes irrespective of the source of income or whether it has derived from any legitimate business or not. If any person has derived an income by way of illegal drug sale, it is also taxable. Fifth Amendment returns are filed with IRS by those people who have reported their tax liability and income accurately but do not want to disclose the source of income. This is done so as to prevent a person from getting incriminated.
There are many sources in United States that help a person in filing of tax returns. This is because it has been observed in many cases that a person finds it very difficult to file a tax return as compare to paying the tax. At present, a person can easily find many sources that provide free as well as paid services for filing of tax returns.
One of most important aspect of federal tax return is the refund. There are many ways in which a person can find information about the tax refund. One of easiest is to log on to the web site of IRS and going to the Where's My Refund'. A person can easily find information about the date of mailing of refund or the direct deposit of the refund amount. Similarly, if the refund is returned to IRS because of reason of non-delivery, the information about the same is also contained here. A person can also call at the toll free number of IRS which is 1-800-829-4477.
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