In the United States tax returns are filed with the Internal Revenue Services or with the state or local tax collection agency containing information used to calculate income tax or other taxes. Tax returns are generally prepared using forms prescribed by the IRS, using a tax accountant, or other applicable taxing authority.
Under the Internal Revenue Code returns can be classified as either tax returns or information returns, although the term “tax return” is sometimes used to describe both kinds of returns in a broad sense. Tax returns, in the more narrow sense, are reports of tax liabilities and payments, often including financial information used to compute the tax.
Information returns are reports used to transmit information about income, receipts or other matters that may affect tax liabilities. For example, Form W-2 and Form 1099 are used to report on the amount of income that an employer, independent contractor, broker, or other payer pays to a taxpayer. A company, employer, or party who has paid income (or, in a few cases, proceeds that may ultimately be determined not to be income) to a taxpayer is required to file the applicable information return directly with the IRS. A copy of the information return is also sent directly to the payee. These procedures enable the IRS to make reasonably sure that taxpayers report income correctly.
Tax returns filed under an Individual Taxpayer Identification Number reporting wages paid are required to show the Social Security Number under which the wages were earned. This creates an identification number (ITIN/SSN) mismatch. For more details see IRS e-file updates for the year 2019.
When it comes to file an Online Tax Return, most people need only to deal the 1040 form and the various schedules that go along with this form. The form 1040 for U.S. Individual Income Tax Return is the first form for personal Federal income tax return filed with the IRS in the United States. Any individual U.S. income tax return payer can use Form 1040 (often referred to as the “long form” to distinguish it from the other 1040 variants). Those with uncomplicated tax return situations (for example, no itemized deductions, no capital gain or loss, etc.) may be able to use the simplified Form 1040A (the “short form”) or the even simpler Form 1040EZ (the “easy form”) instead of Form 1040. The actual form itself is colored blue.
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