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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
treatment of an item, use Form 8275. You must person when it is required on a return, state- The IRS doesn't initiate contacts with tax-
also have a reasonable basis for treating the ment, or other document. payers via emails. Also, the IRS doesn't request
item the way you did. For example, if you have a bank account detailed personal information through email or
In cases of substantial understatement only, that earns interest, you must give your SSN to ask taxpayers for the PIN numbers, passwords,
items that meet the requirements of Revenue the bank. The number must be shown on the or similar secret access information for their
Procedure 2019-42 (or later update) are consid- Form 1099-INT or other statement the bank credit card, bank, or other financial accounts.
ered adequately disclosed on your return with- sends you. If you don't give the bank your SSN, If you receive an unsolicited email claiming
out filing Form 8275. you will be subject to the $50 penalty. (You may to be from the IRS, forward the message to
Use Form 8275-R to disclose items or posi- also be subject to “backup” withholding of in- phishing@irs.gov. You may also report misuse
tions contrary to regulations. come tax. See chapter 4.) of the IRS name, logo, forms, or other IRS prop-
Transaction lacking economic sub- You won't have to pay the penalty if you are erty to the Treasury Inspector General for Tax
Administration toll free at 800-366-4484. You
stance. For more information on economic able to show that the failure was due to reason- can forward suspicious emails to the Federal
substance, see section 7701(o). able cause and not willful neglect. Trade Commission (FTC) at spam@uce.gov or
Foreign financial asset. For more informa- report them at ftc.gov/complaint. You can con-
tion on undisclosed foreign financial assets, see Criminal Penalties tact them at ftc.gov/idtheft or 877-IDTHEFT
section 6662(j). You may be subject to criminal prosecution (877-438-4338). If you have been a victim of
Reasonable cause. You won't have to pay (brought to trial) for actions such as: identity theft, see IdentityTheft.gov or Pub.
5027. People who are deaf, hard of hearing, or
a penalty if you show a good reason (reasona- 1. Tax evasion; have a speech disability and who have access
ble cause) for the way you treated an item. You to TTY/TDD equipment can call 866-653-4261.
must also show that you acted in good faith. 2. Willful failure to file a return, supply infor- Go to IRS.gov/IDProtection to learn more
This doesn't apply to a transaction that lacks mation, or pay any tax due;
economic substance. 3. Fraud and false statements; about identity theft and how to reduce your risk.
Filing erroneous claim for refund or credit. 4. Preparing and filing a fraudulent return; or
You may have to pay a penalty if you file an er- 5. Identity theft.
roneous claim for refund or credit. The penalty
is equal to 20% of the disallowed amount of the
claim, unless you can show a reasonable basis Identity Theft
for the way you treated an item. However, any 2.
disallowed amount due to a transaction that Identity theft occurs when someone uses your
lacks economic substance won't be treated as personal information such as your name, SSN,
having a reasonable basis. The penalty won't or other identifying information, without your
permission, to commit fraud or other crimes. An Filing Status
be figured on any part of the disallowed amount
of the claim that relates to the earned income identity thief may use your SSN to get a job or
credit or on which the accuracy-related or fraud may file a tax return using your SSN to receive
penalties are charged. a refund. What’s New
Frivolous tax submission. You may have to To reduce your risk:
pay a penalty of $5,000 if you file a frivolous tax • Protect your SSN, Tuition and fees. The tuition and fees deduc-
return or other frivolous submissions. A frivo- • Ensure your employer is protecting your tion is extended for qualified tuition and fees
lous tax return is one that doesn't include SSN, and paid in calendar years 2018, 2019, and 2020.
enough information to figure the correct tax or Don’t claim the deduction for expenses paid af-
that contains information clearly showing that • Be careful when choosing a tax preparer. ter 2020 unless the credit is extended again.
the tax you reported is substantially incorrect. If your tax records are affected by identity
For more information on frivolous returns, frivo- theft and you receive a notice from the IRS, re-
lous submissions, and a list of positions that are spond right away to the name and phone num- Introduction
identified as frivolous, see Notice 2010-33, ber printed on the IRS notice or letter.
2010-17 I.R.B. 609, available at IRS.gov/irb/ If your SSN has been lost or stolen or you This chapter helps you determine which filing
2010-17_IRB/ar13.html. suspect you are a victim of tax-related identity status to use. There are five filing statuses.
You will have to pay the penalty if you filed theft, visit IRS.gov/IdentityTheft to learn what
this kind of return or submission based on a friv- steps you should take. • Single.
olous position or a desire to delay or interfere For more information, see Pub. 5027. • Married Filing Jointly.
with the administration of federal tax laws. This Victims of identity theft who are experienc- • Married Filing Separately.
includes altering or striking out the preprinted ing economic harm or a systemic problem, or
language above the space provided for your are seeking help in resolving tax problems that • Head of Household.
signature. have not been resolved through normal chan- • Qualifying Widow(er).
This penalty is added to any other penalty nels, may be eligible for Taxpayer Advocate
provided by law. Service (TAS) assistance. You can reach TAS If more than one filing status applies to
you, choose the one that will give you
Fraud. If there is any underpayment of tax on by calling the National Taxpayer Advocate help- TIP the lowest tax.
your return due to fraud, a penalty of 75% of the line at 877-777-4778 or 800-829-4059 (TTY/ You must determine your filing status before
TDD). Deaf or hard-of-hearing individuals can
underpayment due to fraud will be added to
your tax. also contact the IRS through relay services you can determine whether you must file a tax
return (chapter 1), your standard deduction
such as the Federal Relay Service, available at
Joint return. The fraud penalty on a joint re- GSA.gov/fedrelay. (chapter 10), and your tax (chapter 11). You
turn doesn't apply to a spouse unless some part Protect yourself from suspicious emails also use your filing status to determine whether
of the underpayment is due to the fraud of that you are eligible to claim certain deductions and
spouse. or phishing schemes. Phishing is the crea- credits.
tion and use of email and websites designed to
Failure to supply SSN. If you don't include mimic legitimate business emails and websites.
your SSN or the SSN of another person where The most common form is the act of sending an
required on a return, statement, or other docu- email to a user falsely claiming to be an estab-
ment, you will be subject to a penalty of $50 for lished legitimate enterprise in an attempt to
each failure. You will also be subject to a pen- scam the user into surrendering private
alty of $50 if you don't give your SSN to another information that will be used for identity theft.
Page 20 Chapter 2 Filing Status