Publication 553 - Highlights Of 2002 Tax Changes Page 9
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31one with the same income but a different filing status. As a
A qualified public educational facility is any school facil-
result, the EIC table now has different columns for married
ity that is:
persons filing jointly than for everyone else. When you look
1) Part of a public elementary school or a public secon-
up your EIC in the EIC Table, be sure to use the correct
dary school, and
column for your filing status.
2) Owned by a private, for-profit corporation under a
Earned income amount is more. The maximum amount
public-private partnership agreement with a state or
of income you can earn and still get the credit has in-
local educational agency.
creased. You may be able to take the credit if:
The issuer of the bond should be able to tell you whether
•
You have more than one qualifying child and you
the bond is tax-exempt.
earned less than $33,178 ($34,178 if married filing
jointly),
Tax Shelter Disclosure Statement
•
You have one qualifying child and you earned less
For each reportable tax shelter transaction in which you
than $29,201 ($30,201 if married filing jointly), or
participated directly or indirectly, you must attach a disclo-
•
You do not have a qualifying child and you earned
sure statement to your return for each year that your tax
less than $11,060 ($12,060 if married filing jointly).
liability is affected by your participation in the transaction.
In addition, for the first year a disclosure statement is
Your AGI also must be less than the amount in the above
attached to your return, you must send a copy to:
list that applies to you.
Internal Revenue Service
Investment income amount is more. The maximum
amount of investment income you can have and still get
LM:PFTG:OTSA
the credit has increased to $2,550.
Large & Mid-Size Business Division
1111 Constitution Avenue, NW
Washington, DC 20224.
Reduction of EIC by alternative minimum tax elimi-
nated. Your credit is no longer reduced by the amount of
alternative minimum tax shown on your return.
Disclosure is required for a reportable transaction that is
a listed transaction. A transaction is a listed transaction if it
Personal Credits Still Allowed Against
is the same as or substantially similar to a transaction
Alternative Minimum Tax
determined to be a tax avoidance transaction and identi-
fied as a listed transaction in a notice, regulation, or other
published guidance. For example, Notice 2001 –51, in
The provision that allowed certain nonrefundable personal
Internal Revenue Bulletin 2001 –34, identifies certain listed
credits to reduce both your regular tax and any alternative
transactions.
minimum tax (AMT) has been extended and will be in
effect for 2002 and 2003. This provision, as it applies to the
See section 1.6011 –4T of the regulations for more
AMT, was originally scheduled to expire after 2001. With-
details including:
out the extension, these credits could not have been used
•
Definitions of “reportable transaction,” “listed trans-
to reduce any AMT in 2002 or 2003.
action,” and “substantially similar.”
•
5-Year Carryback for Net Operating
Form and content of the disclosure statement.
•
Losses (NOLs)
Filing requirements for the disclosure statement.
If you have an NOL from a tax year ending during 2001 or
Certain transactions not previously classified as
2002, you must generally carry back the entire amount of
!
reportable transactions must also be disclosed if
the NOL to the 5 tax years before the NOL year (the
entered into after December 31, 2002. For more
CAUTION
carryback period). However, you can still choose to use the
information, see Disclosure of Reportable Transactions
previous carryback period of 2 or, if applicable, 3 tax years
under 2003 Changes.
before the NOL year. You can also choose not to carry
back an NOL and only carry it forward. For more informa-
tion, see When To Use an NOL in Publication 536, Net
Fast Track Mediation
Operating Losses (NOLs) for Individuals, Estates, and
Trusts.
The IRS now offers fast track mediation services to help
taxpayers promptly resolve many disputes resulting from:
Tax-Exempt Bond Financing for
•
Examinations (audits),
Qualified Public Educational Facilities
•
Offers in compromise,
The private activities for which state and local tax-exempt
•
Trust fund recovery penalties, and
bonds may be issued have been expanded to include
•
providing qualified public educational facilities.
Other collection actions.
Chapter 1 Tax Changes for Individuals
Page 9
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