PDF document

- 1 -

                Userid: CPM            Schema: tipx Leadpct: 100% Pt. size: 10            Draft           Ok to Print
AH XSL/XML      Fileid: … ns/P3920/201411/A/XML/Cycle04/source                       (Init. & Date) _______

Page 1 of 23                                                                           14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

            Department of the Treasury Contents
            Internal Revenue Service
                                       Future Developments . . . . . . . . . . . . . . . . . . . . . . .                   1
                                       Introduction            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Publication 3920
(Rev. September 2014)                  Payments to Survivors . . . . . . . . . . . . . . . . . . . . . .                   2
Cat. No. 32806E                        September 11th Victim Compensation Fund 
                                             of 2001           . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2
                                       Disability Payments                   . . . . . . . . . . . . . . . . . . . . . .   2
                                       Qualified Disaster Relief Payments                          . . . . . . . . . . .   3
Tax Relief for 
                                       Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . .                  4
                                       Payments to Survivors of Public Safety 
Victims of                                   Officers          . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   4
                                       Tax Forgiveness for People Who Died . . . . . . . . . .                             4
Terrorist                              Years Eligible for Tax Forgiveness . . . . . . . . . . . .                          4
                                       Amount of Tax Forgiven                      . . . . . . . . . . . . . . . . . . .   5
                                       Refund of Taxes Paid                    . . . . . . . . . . . . . . . . . . . .     11
Attacks                                How To Claim Tax Forgiveness . . . . . . . . . . . . .                              11
                                       Estate Tax Reduction . . . . . . . . . . . . . . . . . . . . . .                    13
                                       Structured Settlement Factoring 
                                       Transactions                  . . . . . . . . . . . . . . . . . . . . . . . . .     13
                                       Illustrated Worksheets B and C                      . . . . . . . . . . . . . .     13
                                       Additional Worksheets . . . . . . . . . . . . . . . . . . . . .                     16
                                       How To Get Tax Help                 . . . . . . . . . . . . . . . . . . . . . .     19
                                       Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           22

                                       Future Developments
                                       For the latest information about developments related to 
                                       Publication 3920, such as legislation enacted after it was 
                                       published, go to www.irs.gov/pub3920.

                                       Introduction
                                       This  publication  explains  some  of  the  provisions  of  the 
                                       Victims  of  Terrorism  Tax  Relief  Act  of  2001.  Under  this 
                                       Act,  the  following  amounts  are  not  included  in  income. 
                                       (See Payments to Survivors, later, for details about the fol-
                                       lowing amounts.)
                                       Certain disability payments received in tax years end-
                                       ing after September 10, 2001, for injuries sustained in 
                                       a terrorist attack.
                                       Payments from the September 11th Victim Compen-
                                       sation Fund of 2001.
                                       Qualified disaster relief payments made after Septem-
                                       ber 10, 2001, to cover personal, family, living, or fu-
Get forms and other information        neral expenses incurred because of a terrorist attack.
faster and easier at IRS.gov           Death benefits paid by an employer to the survivor of 
                                       an employee if the benefits are paid because the em-
                                       ployee died as a result of a terrorist attack.

Sep 09, 2014

- 2 -

Page 2 of 23 Fileid: … ns/P3920/201411/A/XML/Cycle04/source 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

The Act also provides that the federal income tax liabil- Useful Items
ity of those who died as a result of the following attacks is You may want to see:
forgiven for certain tax years.
The September 11, 2001, attacks on the World Trade Publication
Center, the Pentagon, and United Airlines Flight 93 in 556 Examination of Returns, Appeal Rights, and
Somerset County, Pennsylvania (September 11 at Claims for Refund
tacks).
559 Survivors, Executors, and Administrators
Terrorist attacks involving anthrax occurring after Sep-
tember 10, 2001, and before January 1, 2002 (an Form (and Instructions)
thrax attacks). 706 United States Estate (and Generation-Skipping
The April 19, 1995, attack on the Alfred P. Murrah Transfer) Tax Return
Federal Building (Oklahoma City attack). 1040 U.S. Individual Income Tax Return
For details, see Tax Forgiveness for People Who Died,
1040NR U.S. Nonresident Alien Income Tax Return
later.
1040X Amended U.S. Individual Income Tax Return
Comments and suggestions. We welcome your com-
ments about this publication and your suggestions for fu- 1041 U.S. Income Tax Return for Estates and Trusts
ture editions. 1310 Statement of Person Claiming Refund Due a
You can write to us at the following address. Deceased Taxpayer
Internal Revenue Service 4506 Request for Copy of Tax Return
Tax Forms and Publications Division
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224 Payments to Survivors

We respond to many letters by telephone. Therefore, it The following section discusses the tax treatment of cer-
would be helpful if you would include your daytime phone tain amounts received by survivors of the attacks and sur-
number, including the area code, in your correspondence. vivors of people who died as a result of the attacks.
You can send your comments from www.irs.gov/
formspubs/. Click on “More Information” and then on “Give
September 11th Victim Compensation
us feedback.”
Although we cannot respond individually to each com- Fund of 2001
ment received, we do appreciate your feedback and will
Payments from the September 11th Victim Compensation
consider your comments as we revise our tax products.
Fund of 2001 are not included in income.
Ordering forms and publications. Visit www.irs.gov/
formspubs/ to download forms and publications, call Disability Payments
1-800-TAX-FORM (1-800-829-3676), or write to the ad-
dress below and receive a response within 10 days after For tax years ending after September 10, 2001, disability
your request is received. payments (including Social Security Disability Insurance
(SSDI) payments) are not included in income if they are
Internal Revenue Service for injuries incurred as a direct result of a terrorist attack
1201 N. Mitsubishi Motorway (including the September 11 attacks, anthrax attacks, and
Bloomington, IL 61705-6613 Oklahoma City attack) directed against the United States
(or its allies). However, you must include in your income
Questions about Publication 3920. If you have any disability payments you received or you would have
questions about the topics covered in this publication, call received in retirement had you not become disabled as a
the IRS at 18665625227 Monday through Friday during result of a terrorist attack.
the following times.

In English–7 a.m. to 7 p.m. local time. Disability payments you receive for injuries not
In Spanish–7 a.m. to 7 p.m. local time. CAUTION! incurred as a direct result of a terrorist attack or
for illnesses or diseases not resulting from an injury incur
Other tax questions. If you have tax questions about red as a direct result of a terrorist attack cannot be exclu
topics not covered in this publication, check the informa- ded from your income under this provision but may be ex
tion available on IRS.gov or call 1-800-829-1040. cludable for other reasons. For details, see Publication
907, Tax Highlights for Persons with Disabilities.
We cannot answer tax questions sent to either of
the above addresses. Example. Dan, a firefighter, was disabled as a direct
CAUTION!
result of the September 11 terrorist attack on the World
Trade Center. He began receiving Social Security

Page 2 Publication 3920 (September 2014)

- 3 -

Page 3 of 23 Fileid: … ns/P3920/201411/A/XML/Cycle04/source 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Disability Insurance (SSDI) benefits at age 54. Dan's full corrected Forms 1099-R from his employer showing
retirement age for social security retirement benefits is $12,000 of the payments he received in 2012 and $5,000
age 66. Dan's birthday is April 25. In the year Dan turned of those received in 2013, which had been reported as
66, Dan received $1,500 per month in benefits from the taxable, should have been classified as nontaxable disa-
Social Security Administration. Because Dan became eli- bility payments. The policeman files a Form 1040X for
gible for a full retirement benefit in May, the month after he 2012 and a separate one for 2013 asking the IRS to re-
turned 66, he can exclude only four months of his annual classify the payments as nontaxable. He attaches the cor-
benefit from his income ($6,000). Dan must report the re- rected Form 1099-R to each Form 1040X. He writes “Pub-
maining $12,000 on Form 1040, line 20a, or Form 1040A, lication 3920” in Part III of each Form 1040X.
line 14a. He also must complete the Social Security Bene-
fits Worksheet in his tax return instructions to find out if When taxes are incorrectly withheld. If you receive
any part of the $12,000 is taxable. SSDI payments for injuries you incurred as a direct result
of a terrorist attack, you may submit Form W-4V, Volun-
When nontaxable payments are reported as taxable. tary Withholding Request, to your local Social Security
Contact the company or agency making the disability pay- Administration office by mail or in person to stop the with-
ments if it incorrectly reported payments you received in holding of income taxes from the SSDI excluded from your
the prior year as taxable income to the IRS on Form W-2, income.
Wage and Tax Statement, or on Form 1099-R, Distribu- If income taxes are being incorrectly withheld from any
tions From Pensions, Annuities, Retirement or Profit-Shar- other disability payments, you may submit Form W-4, Em-
ing Plans, IRAs, Insurance Contracts, etc. Ask the com- ployee's Withholding Allowance Certificate, to the com-
pany or agency to issue a corrected form to report some pany or agency to stop the withholding of income taxes
or all of these payments as nontaxable income in box 12 from payments reported on Form W-2. You may submit
(under code J) on Form W-2 or in box 1 but not in box 2a Form W-4P, Withholding Certificate for Pension or Annuity
on Form 1099-R. Payments, to stop the withholding of income taxes from
File Form 1040X to correct disability payments that payments reported on Form 1099-R.
were incorrectly reported as taxable income on your previ-
ously filed tax returns. Attach copies of the corrected Qualified Disaster Relief Payments
Form W-2 or Form 1099-R. In Part III of Form 1040X,
mention this publication or Internal Revenue Code section Qualified disaster relief payments are not included in in-
104(a)(5). If you are unable to obtain a corrected Form come. These payments are not subject to income tax,
W-2 or Form 1099-R, mention this fact in Part III of Form self-employment tax, or employment taxes (social secur-
1040X and attach documents that support your claim that ity, Medicare, and federal unemployment taxes). No with-
you received the disability payments due to injuries you holding applies to these payments.
sustained as a direct result of a terrorist attack. Follow the
same procedures when filing Form 1040 or Form Qualified disaster relief payments include payments
1040NR, except that you should explain on a separate you receive (regardless of the source) after September
sheet of paper your inability to get a corrected Form W-2 10, 2001, for the following expenses.
or Form 1099-R and attach it to the return. Reasonable and necessary personal, family, living, or
If you are correcting disability payments for a decedent funeral expenses incurred as a result of a terrorist at-
who is eligible for tax forgiveness (discussed later), con- tack.
sider whether to request only forgiveness for all income Reasonable and necessary expenses incurred for the
tax liabilities for all eligible years on Form 1040X or also repair or rehabilitation of a personal residence due to
state a separate claim for refund on the same Form 1040X a terrorist attack. (A personal residence can be a ren-
for the disability payments incorrectly reported as taxable ted residence or one you own.)
income. The income tax forgiveness available for the de-
cedent includes a minimum amount of relief of $10,000. Reasonable and necessary expenses incurred for the
Accordingly, you may receive a greater total refund by repair or replacement of the contents of a personal
correcting the prior reporting of disability payments sepa- residence due to a terrorist attack.
rately from any request for tax forgiveness when the total Qualified disaster relief payments also include the fol-
tax forgiveness benefit other than for disability payments lowing.
for all eligible years is less than $10,000.
Payments made by common carriers (for example,
Refunds of disability payments that were incor American Airlines and United Airlines regarding the
TIP rectly reported as taxable income are subject to September 11 attacks) because of death or physical
the statute of limitations rules for refunds dis injury incurred as a result of a terrorist attack.
cussed later under Period for filing a claim for credit or re-
fund. Amounts paid by a federal, state, or local government
in connection with a terrorist attack to individuals af-
Example. A policeman is disabled as a direct result of fected by the attack.
injuries sustained in the September 11 attack on the
World Trade Center. He timely filed his Form 1040 income
tax returns for 2012 and 2013. In 2014, he received

Publication 3920 (September 2014) Page 3

- 4 -

Page 4 of 23   Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                    14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

         Qualified disaster relief payments do not include:
CAUTION!                                                             Tax Forgiveness for People 

Payments for expenses otherwise paid for by insur                   Who Died
ance or other reimbursements, or
                                                                     The IRS will forgive the federal income tax liabilities of de-
Income replacement payments, such as payments of 
                                                                     cedents  who  died  as  a  result  of  wounds  or  injury  sus-
lost wages, lost business income, or unemployment 
                                                                     tained in the Oklahoma City or September 11 attacks or 
compensation.
                                                                     from illnesses or diseases arising from wounds or injuries 
                                                                     sustained  in  these  attacks.  The  IRS  will  also  forgive  the 
Death Benefits                                                       federal income tax liabilities of decedents who died as a 
                                                                     result of illness incurred as a result of the anthrax attacks. 
Payments received by an individual or the estate of a de-            Income tax is forgiven for these decedents whether they 
cedent from the employer of an employee who died as a                were killed in an attack or died later as a result of an at-
result of the Oklahoma City or September 11 terrorist at-            tack or participating in rescue or recovery operations. Any 
tacks, or as a result of the anthrax attacks, are not inclu-         forgiven  tax  liability  owed  to  the  IRS  will  not  have  to  be 
ded in income. Only the amount that exceeds the benefits             paid. Any forgiven tax liability that has already been paid 
that would have been payable if the death had occurred               will be refunded if a claim is filed within the open refund 
for a reason other than a terrorist or anthrax attack is ex-         period. (See Period for filing a claim for credit or refund, 
cludable. However, the exclusion does apply to incidental            later.) To determine the amount of tax to be forgiven, read 
death benefits paid under a qualified retirement plan even           Years  Eligible  for  Tax  Forgiveness  first.  Then  read 
if  these  amounts  would  have  been  payable  if  the  death       Amount of Tax Forgiven.
had occurred for a reason other than a terrorist or anthrax 
attack.                                                                     Decedents whose total tax forgiveness benefit for 
                                                                     TIP    all eligible years is less than $10,000 are entitled 
         If you included death benefits in income on a pre                 to $10,000 minimum relief. Even decedents who 
TIP      viously filed return and they are now excludable            were  not  required  to  file  tax  returns  for  the  eligible  tax 
         under the above rule, file Form 1040X to amend              years  are  entitled  to  $10,000  minimum  relief.  See Mini-
that  return.  For  information  on  the  period  for  filing  Form  mum  Amount  of  Relief,  later,  under Amount  of  Tax  For-
1040X,  see  Period  for  filing  a  claim  for  credit  or  refund, given. 
later, under Years Eligible for Tax Forgiveness.

                                                                     Years Eligible for Tax Forgiveness
Payments to Survivors of Public 
                                                                     The following paragraphs explain which years are eligible 
Safety Officers
                                                                     for tax forgiveness.
If you are a survivor of a public safety officer who died in 
                                                                     September 11 attacks and anthrax attacks.           For those 
the line of duty, certain amounts you receive are not inclu-
                                                                     who died as a result of these attacks, income tax is for-
ded in income.
                                                                     given for 2000 and all later years up to and including the 
Bureau of Justice Assistance payments.         If you are a          year of death. However, the law allows the IRS to refund 
surviving  dependent  of  a  public  safety  officer  (law  en-      taxes only for certain years. See Period for filing a claim 
forcement officer or firefighter) who died in the line of duty,      for credit or refund below.
do  not  include  in  your  income  the  death  benefit  paid  to 
                                                                     Oklahoma City attack.  For those who died from this at-
you by the Bureau of Justice Assistance.
                                                                     tack, income tax is forgiven for 1994 and all later years up 
Government plan annuity. If you receive a survivor an-               to and including the year of death. However, the law al-
nuity as the child or spouse (or former spouse) of a public          lows  the  IRS  to  refund  taxes  only  for  certain  years.  See 
safety officer who was killed in the line of duty, you gener-        Period for filing a claim for credit or refund next.
ally do not have to include it in income. This exclusion ap-
                                                                     Period for filing a claim for credit or refund.     Although 
plies to the amount of the annuity based on the officer's 
                                                                     income tax forgiveness applies back to 2000 for the Sep-
service as a public safety officer.
                                                                     tember 11 and anthrax attacks and to 1994 for the Okla-
For  this  purpose,  the  term public  safety  officer  in-          homa City attack, the law allows the IRS to refund taxes 
cludes  police  and  law  enforcement  officers,  firefighters,      only for certain years.
and rescue squad and ambulance crews.                                To obtain a credit or refund for a year for which the de-
                                                                     cedent did not file an income tax return, you must file an 
More information. For more information, see Publication              income tax return (Form 1040 or Form 1040NR) within 3 
559.                                                                 years  after  the  due  date  of  the  return  (including  exten-
                                                                     sions) or within 2 years after the date the decedent paid 
                                                                     the tax, whichever is later.

Page 4                                                                                   Publication 3920 (September 2014)

- 5 -

Page 5 of 23    Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                  14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

To obtain a credit or refund on a previously filed income           Amount of Relief. The $10,000 is treated as a tax payment 
tax return (an original return), you must file an amended           for 2012 and will be refunded if tax forgiveness is reques-
return  (Form  1040X  or  amended  Form  1041)  within  3           ted by April 18, 2016.
years (including extensions) from the time the return was 
filed  or  within  2  years  after  the  time  the  tax  was  paid, Amount of Tax Forgiven
whichever  is  later.  If  an  original  return  was  filed,  the 
amount of the refund claimed on the amended return will             The IRS will forgive the decedent's income tax liability as 
be limited to the amount of tax paid within the 3 years pre-        discussed  earlier  under Years  Eligible  for  Tax  Forgive
ceding  the  date  on  which  the  amended  return  is  filed.      ness. On a joint return, only the decedent's part of the joint 
These  rules  reflect  the  statute  of  limitations  for  refunds, income tax liability is eligible for forgiveness.
and are referred to throughout this publication as the open 
refund period.                                                      To figure the tax to be forgiven, use the following work-
If  the  original  return  was  filed  early  (for  example,  on    sheets.
March 1 for a calendar year return), the return is consid-          Use Worksheet A for any eligible year the decedent 
ered filed on the due date (generally April 15). However, if        filed a return as single, married filing separately, head 
the decedent had an extension to file (for example, until           of household, or qualifying widow(er).
October  15)  but  filed  the  return  earlier  and  the  IRS  re-
                                                                    Use Worksheet B for any eligible year the decedent 
ceived it July 1, the return is considered filed on July 1.
                                                                    filed a joint return. Also see the illustrated Worksheet 
Note. The statute of limitations for refunds can be sus-            B near the end of this publication for a comprehensive 
pended for certain people who live in a federally declared          example.
disaster area or are physically or mentally unable to man-                 Do  not  complete  Worksheet  A  or  B  if  the  dece
age their financial affairs. For details, see Publication 556.      TIP    dent was not required to file tax returns for the eli
                                                                           gible  tax  years.  Instead,  complete    Worksheet  C 
Example 1.     Paul, a U.S. citizen, died in August 2014 
                                                                    and file a return for the decedent's last tax year. See Mini-
as a result of wounds he sustained as a result of the Sep-
                                                                    mum Amount of Relief, later.
tember  11  attacks.  He  had  income  tax  liabilities  of 
$17,500 for 2011, $18,025 for 2012, and $7,000 for 2013. 
Prior to his death, Paul filed his tax returns and paid his         Both spouses died.    If both spouses died as a result of a 
tax due on or before April 15 each year since the Septem-           terrorist attack and they filed a joint return for an eligible 
ber 11 attacks. The total, $42,525, plus any income tax li-         tax  year,  fill  out Worksheet  B  for  each  spouse  for  that 
ability for 2014, is eligible for tax forgiveness. His personal     year. Do this to determine if each spouse qualifies for the 
representative must request tax forgiveness by the follow-          minimum  relief  of  $10,000  (discussed  later  under  Mini
ing  dates  to  claim  a  refund  of  the  income  tax  liabilities mum  Amount  of  Relief).  If  you  are  certain  that  neither 
Paul paid for each tax year.                                        spouse's total forgiven tax liability for all eligible years is 
                                                                    less than $10,000, skip Worksheet B. However, attach a 
2011 tax year – April 15, 2015.                                     computation of the forgiven tax liability to the final income 
                                                                    tax  return  or  amended  tax  return  for  each  eligible  year. 
2012 tax year – April 18, 2016.
                                                                    The forgiven tax liability is the total tax shown on the joint 
2013 tax year – April 18, 2017.                                     return minus the taxes listed in the instructions for line 4 of 
                                                                    Worksheet B.
2014 tax year – April 17, 2018.
                                                                    Residents of community property states.          If the dece-
Although the personal representative may request income             dent was domiciled in a community property state and the 
tax forgiveness after these dates, no refund can be paid            spouse reported half the community income on a separate 
because 3 years will have passed from the date the origi-           return, the surviving spouse can get a refund of taxes paid 
nal return was filed and no payments will have been made            on his or her share of the decedent's income for the eligi-
within the open refund period.                                      ble years. Also, all of the decedent's income taxes paid for 
                                                                    the eligible years will be refunded to either the executor or 
Example 2.     A child wounded in the September 11 at-
                                                                    administrator  of  the  estate,  or  to  the  surviving  spouse  if 
tacks died in 2012 as a result of those wounds and never 
                                                                    there is no legal representative.
had any income tax liability. She qualifies for the minimum 
relief  of  $10,000  as  explained  later  under Minimum 

Publication 3920 (September 2014)                                                                                        Page 5

- 6 -

Page 6 of 23   Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                          14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet A. Figuring the Tax To Be Forgiven
                                                                                                  Keep for Your Records

              (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or 
              Qualifying Widow(er))

                                                                                     (A)      (B)      (C)               (D) 
                                                                                     First    Second   Third    Fourth 
                                                                                     Eligible Eligible Eligible Eligible 
                                                                                     Year     Year     Year          Year
1 Enter the years eligible for tax forgiveness. . . . . . . . .                    1
2 Enter the total tax from the decedent's income tax 
  return. See Table 1, later, for the line number. . . . . . .                     2
3 Enter the following taxes, if any, shown on the 
  decedent's income tax return. (These taxes are not 
  eligible for forgiveness.)
  a Self-employment tax. . . . . . . . . . . . . . . . . . . . . . . . . .         3a
  b Unreported social security and Medicare tax from 
       Forms 4137 and 8919. . . . . . . . . . . . . . . . . . . . . . . . .        3b
  c Tax on excess contributions to IRAs, Coverdell 
       education savings accounts (ESAs), Archer 
       MSAs, or health savings accounts (HSAs). . . . . . .                        3c
  d Tax on excess accumulation in qualified 
       retirement plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3d
  e Household employment taxes. . . . . . . . . . . . . . . . . .                  3e
  f Uncollected social security and Medicare or RRTA 
       tax on tips or group-term life insurance. . . . . . . . . .                 3f
  g Tax on golden parachute payments. . . . . . . . . . . . .                      3g
  h Health care: individual responsibility. . . . . . . . . . . .                  3h
  i Additional Medicare Tax. . . . . . . . . . . . . . . . . . . . . .             3i
  j Net Investment Income Tax. . . . . . . . . . . . . . . . . . . .               3j
  k Excise tax on insider stock compensation from an 
       expatriated corporation. . . . . . . . . . . . . . . . . . . . . . .        3k
4 Add lines 3a through 3k. . . . . . . . . . . . . . . . . . . . . . . . .         4
5 Tax adjustment to be reported with tax return. 
  Subtract line 4 from line 2. . . . . . . . . . . . . . . . . . . . . . . .       5
6 Tax forgiveness benefit provided. Enter the 
  amount from line 5 if filing your claim within 3 years 
  from the due date of the return (including 
  extensions). Otherwise, enter only the part of the tax 
  from line 5 that is currently owed (not including 
  interest and penalties) plus any payments made 
  within the open refund period. . . . . . . . . . . . . . . . . . . .             6
Note. If the total of columns (A), (B), (C), and (D) of line 6 (including any amounts shown on line 16 of Worksheet B) is less 
than $10,000, also complete Worksheet C. 
  Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or 
  amended tax return (Form 1040X) for each year listed on line 1.
  If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of the “Total tax” 
  line as a decrease in tax. The IRS will determine the amount to be refunded.

Page 6                                                                                        Publication 3920 (September 2014)

- 7 -

Page 7 of 23    Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                                           14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet B. Figuring the Tax To Be Forgiven
                                                                                                                Keep for Your Records

             (For Decedents Who Filed a Joint Return)

                                                                                                       (A)      (B)      (C)      (D) 
                                                                                                       First    Second   Third    Fourth
                                                                                                       Eligible Eligible Eligible Eligible 
                                                                                                       Year     Year     Year     Year
1 Enter the years eligible for forgiveness. . . . . . . . . . . . . . . . . . .                      1
2  Enter the decedent's taxable income. Figure taxable income 
   as if a separate return had been filed. See Lines 2 and 6 in 
   the Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . .               2
3  Enter the decedent's total tax. See Lines 3 and 7 in the 
   Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             3
4  Enter the total, if any, of the decedent's taxes not eligible for 
   forgiveness. See Line 4 in the Worksheet B 
   instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5  Subtract line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          5
6  Enter the surviving spouse's taxable income. Figure taxable 
   income as if a separate return had been filed. See Lines 2 
   and 6 in the Worksheet B instructions. . . . . . . . . . . . . . . . . . . .                      6
7  Enter the surviving spouse's total tax. See Lines 3 and 7 in 
   the Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . .               7
8  Enter the total, if any, of the surviving spouse's taxes listed 
   under Line 4 in the Worksheet B instructions. . . . . . . . . . . . . .                           8
9  Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          9
10 Add lines 5 and 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      10
11 Enter the total tax from the joint return. See Table 1, later, 
   for the line number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      11
12 Add lines 4 and 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      12
13 Subtract line 12 from line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . .              13
14 Divide line 5 by line 10. Enter the result as a decimal. . . . . . .                              14
15 Tax adjustment to be reported with tax return. Multiply 
   line 13 by line 14 and enter the result. . . . . . . . . . . . . . . . . . . . .                  15
16 Tax forgiveness benefit provided. Enter the amount from 
   line 15 if filing your claim within 3 years from the due date of 
   the return (including extensions). Otherwise, enter only the 
   part of the tax from line 15 that is currently owed (not 
   including interest and penalties) plus any payments made 
   within the open refund period. . . . . . . . . . . . . . . . . . . . . . . . . . .                16
Note. If the total of columns (A), (B), (C), and (D) of line 16 (including any amounts shown on line 6 of Worksheet A) is less 
than $10,000, also complete Worksheet C. 
  Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or 
  amended tax return (Form 1040X) for each year listed on line 1.
  If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of the “Total 
  tax” line as a decrease in tax. The IRS will determine the amount to be refunded.

Publication 3920 (September 2014)                                                                                                     Page 7

- 8 -

Page 8 of 23       Fileid: … ns/P3920/201411/A/XML/Cycle04/source                            14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Table 1. Total Tax Line on Decedent's Return
         Note: Use this table to find the total tax line on the decedent's income tax return. Enter the total tax on 
         Worksheet A, line 2, or Worksheet B, line 11.

         Form                   2011         2012                               2013           2014
         1040                   Line 61      Line 61                            Line 61        Line 63
         1040A                  Line 35      Line 35                            Line 35        File Form 1040
         1040EZ                 Line 10      Line 10                            Line 10        File Form 1040
         1040NR                 Line 60      Line 60                            Line 60        Line 61
         1040NR-EZ              Line 17      Line 17                            Line 17        File Form 1040NR

Instructions for Worksheet B                                        return,  allocate  the  credit  shown  on  the  joint  return  be-
                                                                    tween the spouses. Examples of credits generally not al-
Lines  2  and  6. Allocate  income  and  deductions  in  the        lowed on a separate return are the child and dependent 
same manner they would have been allocated if the spou-             care credit, credit for the elderly, adoption credit, educa-
ses had filed separate returns.                                     tion credits, and earned income credit.
Income.  Allocate  wages  and  salaries  to  the  spouse 
                                                                    Line 4. Enter the total, if any, of the following taxes.
who performed the services and received the Form W-2. 
Business and investment income (including capital gains)            Self-employment tax.
are generally allocated to the spouse who owned the busi-
ness  or  investment  that  produced  the  income.  If  both        Unreported social security and Medicare tax from 
spouses owned an interest in the business or investment,            Forms 4137 and 8919.
allocate the income in proportion to each spouse’s owner-           Tax on excess contributions to IRAs, Coverdell edu-
ship interest. Income from a jointly owned business or in-          cation savings accounts (ESAs), Archer MSAs, or 
vestment should be allocated equally between the spou-              health savings accounts (HSAs).
ses  unless  there  is  evidence  that  shows  a  different         Tax on excess accumulation in qualified retirement 
allocation is appropriate.                                          plans.
If the income (such as taxable social security benefits) 
is subject to special limits on a separate return, use the in-      Household employment taxes.
come shown on the joint return and allocate it between the 
                                                                    Uncollected social security and Medicare or RRTA tax 
spouses.
                                                                    on tips or group-term life insurance.
Deductions.    Allocate  personal  deductions  (such  as 
                                                                    Tax on golden parachute payments.
itemized  deductions  for  mortgage  interest  and  taxes) 
equally  between  the  spouses  unless  there  is  evidence         Health care: individual responsibility.
that  shows  a  different  allocation  is  appropriate.  Allocate 
deductions related to a business or investment according            Additional Medicare Tax.
to the same allocation rules discussed above that apply to 
income.                                                             Net Investment Income Tax.

If a deduction would not be allowed if separate returns             Excise tax on insider stock compensation from an ex-
were  filed,  use  the  deduction  shown  on  the  joint  return    patriated corporation.
and allocate that amount between the spouses. A similar 
rule  applies  to  deductions  (such  as  the  IRA  deduction) 
                                                                    Minimum Amount of Relief
that are subject to special limits on a separate return. Use 
the  deductions  shown  on  the  joint  return  and  allocate       The  minimum  amount  of  relief  is  $10,000.  If  the  dece-
them between the spouses.                                           dent’s total tax forgiveness benefit for all eligible years is 
                                                                    less  than  $10,000,  the  difference  between  $10,000  and 
Lines 3 and 7. Figure the total tax as if a separate return 
                                                                    the total tax forgiveness benefit provided will be treated as 
had  been  filed.  The  total  tax  is  the  tax  that  would  have 
                                                                    a  tax  payment  for  the  decedent's  last  tax  year.  The  IRS 
been entered on the tax return line shown in Table 1 if a 
                                                                    will  refund  the  difference  if  the  claim  is  filed  within  the 
separate return had been filed. When figuring the tax us-
                                                                    open refund period for the decedent’s last tax year as ex-
ing the Tax Table or Tax Computation Worksheet, use the 
                                                                    plained earlier under Period for filing a claim for credit or 
“Married filing separately” column in the Tax Table or Sec-
                                                                    refund. Use Worksheet C to figure the additional tax pay-
tion C of the Tax Computation Worksheet.
                                                                    ment. But first complete Worksheet A or   if the decedent B
When  figuring  the  total  tax,  allocate  credits  and  other     was required to file tax returns for any eligible tax years for 
taxes,  if  any,  in  the  same  manner  as  they  would  have      which a tax liability is still owed to the IRS or for which the 
been allocated if the spouses had filed separate returns. If        IRS will pay a refund of an amount already paid to the IRS.
a  credit  would  not  have  been  allowed  on  a  separate 

Page 8                                                                          Publication 3920 (September 2014)

- 9 -

Page 9 of 23 Fileid: … ns/P3920/201411/A/XML/Cycle04/source 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Example 1. An individual who died in January 2014 as Income received after date of death. Generally, in-
a result of wounds sustained in the September 11 attacks come of the decedent received after the date of death
had an income tax liability of -0- for 2011, 2012, and 2013, must be reported on Form 1041 if the estate has gross in-
and $6,400 for 2014. The personal representative appoin- come for the tax year of $600 or more. Examples are the
ted after his death claims forgiveness for the $6,400 with final paycheck or dividends on stock owned by the dece-
the IRS in 2015. The IRS will forgive the income tax liabili- dent. However, this income is exempt from income tax
ties for 2014 and treat the difference between $10,000 and is not included on Form 1041 if it is received:
and the $6,400 benefit provided ($3,600) as a tax pay-
After the date of the decedent's death, and
ment for 2014.
Before the end of the decedent's tax year (determined
Example 2. An individual who died in May 2014 as a without regard to death).
result of wounds sustained in the September 11 attacks
had an income tax liability of -0- for 2011, 2012, and 2013, Nonqualifying income. The following income is not
and $6,400 for 2014. The individual also had an outstand- exempt from tax. The tax on it is not eligible for forgive-
ing income tax liability at the time of death of $3,000 for ness.
2006, not counting interest or penalties. The personal rep- Deferred compensation that would have been payable
resentative appointed after death claims forgiveness for if the death had occurred because of an event other
the $3,000 and $6,400 ($9,400) with the IRS in 2015. The than these attacks.
IRS will forgive the income tax liabilities for 2006 and 2014
and treat the difference between $10,000 and the $9,400 Amounts that would not have been payable but for an
benefit provided ($600) as a tax payment for 2014. action taken after September 11, 2001.
The following are examples of nonqualifying income.
Example 3. A child who died in August 2014 as a re-
sult of wounds sustained in the September 11 attacks had Amounts payable from a qualified retirement plan or
no (-0-) income tax liability for 2011, 2012, 2013, or 2014. IRA to the beneficiary or estate of the decedent.
The IRS will treat $10,000 as a tax payment for 2014 and Amounts payable only as death or survivor's benefits
will refund $10,000 if a claim is filed within the open refund from pre-existing arrangements that would have been
period. paid if the death had occurred for another reason.
Example 4. An individual who died in August 2014 as Income received as a result of adjustments made by
a result of wounds sustained in the September 11 attacks the decedent's employer to a plan or arrangement to
had income tax liabilities of $17,500 for 2011, $18,025 for accelerate the vesting of restricted property or the
2012, and $7,000 for 2013. Prior to his death, he filed his payment of nonqualified deferred compensation after
tax returns and paid his tax due on or before April 15 each the date of the attack.
year since the September 11 attacks. The personal repre- Interest on savings bonds cashed by the beneficiary
sentative appointed after his death filed no income tax re- of the decedent.
turns or claims for him until July 2017 when she filed the
decedent’s 2014 income tax return showing $4,800 in tax If you are responsible for the estate of a dece
liability. The IRS will forgive the income tax liabilities for TIP dent, see Publication 559. Publication 559 dis
2014. Because the open refund period for all tax years cusses how to complete and file federal income
prior to 2014 expired on April 18, 2017, the IRS will treat tax returns and explains your responsibility to pay any
the difference between $10,000 and the $4,800 benefit taxes due.
provided ($5,200) as a tax payment for 2014.

Publication 3920 (September 2014) Page 9

- 10 -

Page 10 of 23        Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                                                             14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet C. Amount Treated as Tax Payment for 
Decedent's Last Tax Year                                                           Keep for Your Records
Caution: The decedent is entitled to minimum relief of $10,000. Complete this worksheet only if the total tax forgiveness 
benefit provided for all eligible years is less than $10,000.

1 Minimum relief amount. 
   Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. . . . . . . . . . . . . . .                                                                   1   $10,000
2 Enter the taxable income from Form 1041, line 22.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              2  
3  Enter the distribution deduction from Form 1041, line 18. . . . . . . . . . . . . . . . . . . . . . . . .                                  3  
4  Add lines 2 and 3.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4  
5  Enter exempt income received after death minus expenses allocable to exempt 
   income. (See Income received after date of death, earlier.) . . . . . . . . . . . . . . . . . . . . . .                                    5  
6  Add lines 4 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6  
7  Figure the tax on line 6 using Form 1041, Schedule G.  . . . . . . . . . . . . . . . . . . . . . . . . . .                                 7  
8  Figure the tax on line 4 using Form 1041, Schedule G.  . . . . . . . . . . . . . . . . . . . . . . . . . .                                 8  
9  Tax on exempt income. Subtract line 8 from line 7.  . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                9  
10 Enter the total of columns (A)–(D) from line 6 of Worksheet A or line 16 of 
   Worksheet B. If the decedent was not required to file tax returns for the eligible tax 
   years, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10  
11 Add lines 9 and 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             11  
12 Additional payment allowed. If line 11 is $10,000 or more, enter -0- and stop here. No additional 
   amount is allowed as a tax payment. Otherwise, subtract line 11 from line 1 and enter the 
   result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12          
Note. The amount on line 12 is allowed as a tax payment for the decedent's last tax year. 
  Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended 
  income tax return for the decedent's last tax year. If filing Form 1040, include the amount from line 12 above on the 
  “Credits from Form” line in the “Payments” section of Form 1040, page 2. Write “Sec. 692(d)(2) Payment” and the 
  amount to the right of the entry space. Also indicate whether a Form 1041 is being filed for the decedent's estate.
  If filing Form 1040X, include the amount from line 12 above on Form 1040X on the “Refundable credits from” line, 
  columns (B) and (C). Check the box next to “other (specify)” and write “Sec. 692(d)(2) Payment” on the blank line.

Instructions for lines 2–9 of Worksheet C.          The tax  You have to use lines 2–9 (or the alternative computa-
that would have been payable on the exempt income (dis-      tion) to figure the tax that would have been payable even if 
cussed earlier)  must  be  considered  when  determining     Form 1041 was not required to be filed. Use Form 1041 to 
whether a decedent is entitled to the $10,000 minimum re-    figure what the taxable income would be without including 
lief. To figure the tax that would have been payable, you    the exempt income. Then enter that taxable income (even 
can use lines 2 through 9 of Worksheet C. Or, if special     if a negative number) on line 2 of Worksheet C (or line 1 of 
requirements are met, you can use the alternative compu-     Worksheet D. Alternative Computation of Tax on Exempt 
tation instead. See Alternative computation, later.          Income (Line 9 of Worksheet C)).

Page 10                                                                        Publication 3920 (September 2014)

- 11 -

Page 11 of 23 Fileid: … ns/P3920/201411/A/XML/Cycle04/source 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet D. Alternative Computation of Tax on Exempt
Income (Line 9 of Worksheet C) Keep for Your Records
1 Enter the taxable income from Form 1041, line 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Enter exempt income received after death minus expenses allocable to exempt
income. (See Income received after date of death, earlier.) . . . . . . . . . . . . . . . . . . . . . . 2
3 Add lines 1 and 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Figure the tax on line 3 using Form 1041, Schedule G. . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Figure the tax on line 1 using Form 1041, Schedule G. . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Estate's tax on exempt income. Subtract line 5 from line 4. . . . . . . . . . . . . . . . . . . . . 6
7 Beneficiaries' tax on exempt income. Figure the total tax that would have been
payable by all beneficiaries. Do this by including in each beneficiary's gross income
the exempt income received from the decedent's estate and refiguring the income
tax. Add the amounts by which each beneficiary's income tax is increased. . . . . . . . . 7
8 Add lines 6 and 7. Enter this amount on line 9 of Worksheet C. . . . . . . . . . . . . . . . . . . . 8

Alternative computation. Instead of using lines 2–8 2011, $18,025 for 2012, $7,000 for 2013, and $4,800 for
of Worksheet C to figure the tax on exempt income (line 9 2014. The total, $47,325, is eligible for tax forgiveness.
of Worksheet C), you may be able to use Worksheet D. However, he paid only $38,100 of that amount. The IRS
You can use Worksheet D to figure the tax on the exempt will refund no more than the $38,100 paid.
income payable by the estate and its beneficiaries only if
both of the following requirements are met. Example 2. A child who died in 2014 as a result of
wounds sustained in the September 11 attacks never had
1. The estate claimed an income distribution deduction any income tax liability. The child qualifies for the mini-
on Form 1041, line 18. mum relief of $10,000. The IRS will treat $10,000 as a tax
2. Each beneficiary submits the information necessary payment for 2014 and will refund $10,000 if a claim is filed
to refigure the income tax payable on the exempt in- within the open refund period.
come received from the decedent's estate. The law allows the IRS to refund taxes only for
If requirement (2) is met but requirement (1) is not, you ! certain years. See Years Eligible for Tax Forgive-
can still use Worksheet D if: CAUTION ness, earlier.

Form 1041 was not required because exempt income
was received, and How To Claim Tax Forgiveness
The estate would have claimed an income distribution
deduction if the exempt income were taxable. Use the following procedures to claim income tax forgive-
ness.
If you use this alternative computation, skip lines 2–8 of
Worksheet C and enter the amount from line 8 of Work-
Which Form To Use
sheet D on line 9 of Worksheet C. Complete the rest of
Worksheet C to determine the additional payment al- The form you use depends on whether an income tax re-
lowed. turn for the eligible year was already filed for the dece-
dent.
Refund of Taxes Paid
Return required but not yet filed. File a paper Form
The IRS will refund the following amounts. 1040 if the decedent was a U.S. citizen or resident. File a
paper Form 1040NR if the decedent was a nonresident
1. Forgiven income tax liabilities that have been paid alien. A nonresident alien is someone who is not a U.S.
during the open refund period for the decedent’s last citizen or resident.
tax year. See Period for filing a claim for credit or re
fund, earlier. Return required and already filed. File a separate pa-
2. The excess of $10,000 over the total tax forgiveness per Form 1040X for each year you are claiming tax relief.
benefit provided for all eligible years if a claim is filed
Return not required and not filed. File a paper Form
within the open refund period for the decedent’s last
1040 only for the year of death if the decedent was a U.S.
tax year. See Minimum Amount of Relief, earlier.
citizen or resident. File a paper Form 1040NR if the dece-
Example 1. A first responder who died in August 2014 dent was a nonresident alien.
from a cancer on the List of World Trade Center
Return not required but already filed. File a paper
(WTC)-Related Health Conditions covered in the WTC
Form 1040X only for the year of death.
Health Program had an income tax liability of $17,500 for

Publication 3920 (September 2014) Page 11

- 12 -

Page 12 of 23       Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                   14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

How  to  complete  the  returns. Fill  out  Form  1040  or            Form  1310. You  must  send  Form  1310  with  all  returns 
1040NR  according  to  its  instructions  but  do not reduce          and  claims  for  refund,  unless  either  of  the  following  ap-
the  decedent's  tax  liability  by  any  taxes  that  will  be  for- plies.
given. Attach to each return a computation of the income 
                                                                      You are a surviving spouse filing an original or amen-
tax to be forgiven or a copy of Worksheet A or  . If filing B
                                                                      ded joint return with the decedent.
Form 1040 or Form 1040NR, also attach any Forms W-2. 
If the total tax forgiveness benefit provided for all eligible        You are a personal representative filing an original 
years is less than $10,000, attach to the decedent's final            Form 1040 or Form 1040NR for the decedent and a 
return  a  computation  of  the  additional  tax  payment  al-        court certificate showing your appointment is attached 
lowed or a copy of Worksheet C.                                       to the return.
                                                                      A personal representative is an executor or administrator 
Also, please write one of the following across the top of 
                                                                      of  a  decedent's  estate,  as  certified  or  appointed  by  the 
page 1 of each return.
                                                                      court. A copy of the decedent's will cannot be accepted as 
KITA—Oklahoma City                                                    evidence that you are the personal representative.
KITA—9/11                                                                     If  you  have  proof  of  death  but  do  not  have 
                                                                      TIP     enough tax information to file a timely claim for a 
KITA—Anthrax                                                                  refund, file Form 1040X with Form 1310. Include 
                                                                      a  statement  saying  an  amended  return  will  be  filed  as 
“KITA” means “killed in terrorist attack.”                            soon as the necessary tax information is available.
Need a copy of a previously filed return?         You will 
find it easier to prepare Form 1040X if you have a copy of            Where To File
the  decedent's  previously  filed  tax  return.  If  you  need  a 
copy, use Form 4506. The IRS will provide a free copy of              The IRS has set up a special office for processing returns 
the tax return if you write “DISASTER” in the top margin of           and claims for tax forgiveness.
Form  4506.  Attach  Letters  Testamentary  or  other  evi-
dence to establish that you are authorized to act for the             File these returns and claims at the following address.
decedent's estate. Send Form 4506 to the address shown 
in the form instructions.                                             Internal Revenue Service
                                                                      333 W. Pershing, Stop 6503, P5
Taxpayer identification number.       A taxpayer identifica-          Kansas City, MO 64108
tion number must be furnished on the decedent's returns. 
This  is  usually  the  decedent's  social  security  number                  Do not send these returns or claims to any of the 
(SSN). However, a nonresident alien who is not eligible to                    addresses shown in the tax form instructions.
get an SSN should have an individual taxpayer identifica-             CAUTION!
tion  number  (ITIN).  If  the  decedent  was  a  nonresident 
alien,  had  neither  an  SSN  nor  an  ITIN,  and  was  not  re-     Private  delivery  services. Instead  of  using  U.S.  mail, 
quired to file a U.S. income tax return for any tax year, do          you can use certain private delivery services designated 
not apply  for  an  ITIN.  You  may  claim  a  refund  by  filing     by  the  IRS  to  meet  the  “timely  mailing  as  timely  filing/
Form 1040NR without an SSN or ITIN.                                   paying” rule for tax returns and payments. These private 
                                                                      delivery services include only the following.
Necessary Documents                                                   DHL Express (DHL): DHL “Same Day” Service.

Please  attach  the  following  documents  to  the  return  or        Federal Express (FedEx): FedEx Priority Overnight, 
amended return.                                                       FedEx Standard Overnight, FedEx 2Day, FedEx Inter-
                                                                      national Priority, and FedEx International First.
Proof  of  death. Attach  a  copy  of  the  death  certificate. 
Also attach proof that the death was caused by wounds or              United Parcel Service (UPS): UPS Next Day Air, UPS 
injury sustained in the Oklahoma City or September 11 at-             Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day 
tacks  or  their  rescue  or  recovery  operations  or  by  an  ill-  Air A.M., UPS Worldwide Express Plus, and UPS 
ness  or  disease  arising  from  wounds  or  injury  sustained       Worldwide Express.
during one of these attacks or their rescue or recovery op-           The private delivery service can tell you how to get written 
erations or by an illness incurred as a result of the anthrax         proof of the mailing date.
attacks. You may show the cause of death from the death               For  updates  to  the  list  of  designated  private  delivery 
certificate (if stated) or by attaching a letter from the treat-      services,  go  to  IRS.gov  and  enter  “private  delivery  serv-
ing physician, medical examiner, or hospital that explains            ice” in the search box.
the cause of death. If the Department of Defense issued 
DD  Form  1300,  Report  of  Casualty,  you  can  attach  that 
form instead of the death certificate.

Page 12                                                                             Publication 3920 (September 2014)

- 13 -

Page 13 of 23 Fileid: … ns/P3920/201411/A/XML/Cycle04/source 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

The excise tax is figured on the excess of the undiscoun-
ted amount of the payments being acquired over the total
Estate Tax Reduction amount actually paid to acquire them. However, this tax
will not apply to transactions entered into from February
The federal estate tax is reduced for taxable estates of in- 22, 2002, to July 1, 2002, if certain requirements are met.
dividuals who died as a result of the Oklahoma City at- For information about these requirements, see Internal
tack, the September 11 attacks, and the anthrax attacks. Revenue Code section 5891.
The estate tax is figured using the rate schedule on
page 25 of the November 2001 revision of the Instructions
for Form 706. The estate tax is reduced by credits against
the estate tax, including the unified credit and the state Illustrated Worksheets B and C
death tax credit. These credits may reduce or eliminate
the estate tax due. Sarah's husband Clifton died in June 2014 as a result of
injuries sustained in the September 11 attack on the
Recovery from the September 11th Victim Compen World Trade Center. They filed joint returns and paid the
sation Fund. The value of claims for a decedent's pain tax due on or before April 15 each year since the Septem-
and suffering is normally included in the gross estate. ber 11 attacks until Clifton’s death. Sarah chose to file a
However, if the estate chooses to seek recovery from this joint return as a surviving spouse for 2014. The returns for
fund, the IRS has determined that, in view of the unique 2011, 2012, 2013, and 2014 showed the following in-
circumstances of this situation and the high likelihood that come, deductions, and tax liabilities.
such claims will be valued at a nominal or zero amount,
the claims will be valued at zero for estate tax purposes. 2011 2012 2013 2014
Thus, there are no federal estate tax consequences if an Wages (Sarah). . . . . . . . $40,000 $40,500 $40,500 $41,000
estate or beneficiary receives a recovery from this fund. Net profit from Schedule C,
Profit or Loss From
Which estates must file a return. For decedents dying Business (Clifton). . . . . . 25,000 25,200 26,000 26,000
in 2014, Form 706 must be filed by the executor for the Interest income (joint
estate of every U.S. citizen or resident whose gross es- account). . . . . . . . . . . . 500 550 650 650
tate, plus adjusted taxable gifts and specific exemption, is Deductible portion of
more than $5,340,000; or whose executor elects to trans- self-employment tax
fer the Deceased Spousal Unused Exclusion (DSUE) (Clifton). . . . . . . . . . . . . (1,766) (1,780) (1,837) (1,837)
amount to the surviving spouse, regardless of the size of
the decedent's gross estate. Form 706 must be filed within Standard deduction. . . . . (11,600) (11,900) (12,200) (12,400)
9 months after the date of decedent's death unless you re- Personal exemptions (2). . (7,400) (7,600) (7,800) (7,900)
ceive an extension of time to file. Use Form 4768, Applica- Taxable income . . . . . . $44,734 $44,970 $45,313 $45,513
tion for Extension of Time To File a Return and/or Pay Joint income tax liability. . . $5,859 $5,876 $5,906 $5,921
U.S. Estate (and Generation-Skipping Transfer) Taxes, to Plus: Self-employment tax
apply for an extension. (Clifton). . . . . . . . . . . . . 3,071 3,095 3,674 3,674
Total tax liability. . . . . . $8,930 $8,971 $9,580 $9,595
Where to file. Returns on which the special rate sched-
ule on page 25 of the November 2001 revision of the In- After Clifton died, his estate received income of $4,000.
structions for Form 706 is used should be sent to the fol- Of that amount, $1,000 is net profit from Schedule C re-
lowing address. ceived before the end of 2014. This net profit is exempt
Department of the Treasury from income tax as explained earlier under Income re
Internal Revenue Service Center ceived after date of death. Sarah files Form 1041 because
Cincinnati, OH 45999 the gross income of the estate for the tax year ($3,000) is
$600 or more.
More information. For more information on the federal To determine how much of Clifton's tax liability for
estate tax, see the Instructions for Form 706. 2011, 2012, 2013, and 2014 is to be forgiven, Sarah com-
pletes Worksheet B. She also completes Worksheet C be-
cause the forgiven tax liabilities for 2011, 2012, 2013, and
Structured Settlement 2014 (line 16 of Worksheet B) total less than $10,000.
To claim tax relief for 2011, 2012, and 2013, Sarah files
Factoring Transactions Form 1040X and attaches a copy of Worksheet B. To
claim tax relief for 2014, she files Form 1040 and attaches
A person who acquires payment rights in a structured set- copies of Worksheets B and C.
tlement arrangement after February 21, 2002, may be
subject to a 40% excise tax unless the transfer of the pay-
ment rights was approved in advance in a qualified order.

Publication 3920 (September 2014) Page 13

- 14 -

Page 14 of 23   Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                                           14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet B Illustrated. Figuring the Tax To Be Forgiven                                                                 Keep for Your Records

                            (For Decedents Who Filed a Joint Return)

                                                                                                      (A)       (B)      (C)       (D) 
                                                                                                      First     Second   Third     Fourth
                                                                                                      Eligible  Eligible Eligible  Eligible 
                                                                                                      Year      Year     Year      Year 
1 Enter the years eligible for forgiveness. . . . . . . . . . . . . . . . . .                      1  2011      2012     2013          2014
2 Enter the decedent's taxable income. Figure taxable 
   income as if a separate return had been filed. See Lines 2 
   and 6 in the Worksheet B instructions. . . . . . . . . . . . . . . . . . .                      2  $13,984   $13,945  $14,488   $14,338
3 Enter the decedent's total tax. See Lines 3 and 7 in the 
   Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             3  4,742     4,749    5,399     5,369
4 Enter the total, if any, of the decedent's taxes not eligible for 
   forgiveness. See Line 4 in the Worksheet B 
   instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4  3,071     3,095    3,674     3,674
5 Subtract line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           5  1,671     1,654    1,725     1,695
6 Enter the surviving spouse's taxable income. Figure taxable 
   income as if a separate return had been filed. See Lines 2 
   and 6 in the Worksheet B instructions. . . . . . . . . . . . . . . . . . .                      6  30,750    31,025   30,825    31,175
7 Enter the surviving spouse's total tax. See Lines 3 and 7 in 
   the Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . .               7  4,191     4,219    4,178     4,223
8 Enter the total, if any, of the surviving spouse's taxes listed 
   under Line 4 in the Worksheet B instructions. . . . . . . . . . . . .                           8        -0-      -0-       -0-          -0-
9 Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           9  4,191     4,219    4,178     4,223
10 Add lines 5 and 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      10 5,862     5,873    5,903     5,918
11 Enter the total tax from the joint return. See Table 1, 
   earlier, for the line number. . . . . . . . . . . . . . . . . . . . . . . . . . . . .           11 8,930     8,971    9,580     9,595
12 Add lines 4 and 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      12 3,071     3,095    3,674     3,674
13 Subtract line 12 from line 11. . . . . . . . . . . . . . . . . . . . . . . . . . .              13 5,859     5,876    5,906     5,921
14 Divide line 5 by line 10. Enter the result as a decimal. . . . . .                              14 .285      .282     .292           .286
15 Tax adjustment to be reported with tax return. Multiply 
   line 13 by line 14 and enter the result. . . . . . . . . . . . . . . . . . . .                  15 $1,670    $1,657   $1,725    $1,693
16 Tax forgiveness benefit provided. Enter the amount from 
   line 15 if filing your claim within 3 years from the due date of 
   the return (including extensions). Otherwise, enter only the 
   part of the tax from line 15 that is currently owed (not 
   including interest and penalties) plus any payments made 
   within the open refund period. . . . . . . . . . . . . . . . . . . . . . . . . .                16 $1,670    $1,657   $1,725    $1,693
Note. If the total of columns (A), (B), (C), and (D) of line 16 (including any amounts shown on line 6 of Worksheet A) is less 
than $10,000, also complete Worksheet C. 
   Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or 
   amended tax return (Form 1040X) for each year listed on line 1.
   If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of the “Total 
   tax” line as a decrease in tax. The IRS will determine the amount to be refunded.

Page 14                                                                                                         Publication 3920 (September 2014)

- 15 -

Page 15 of 23    Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                                                                   14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet C Illustrated. Amount Treated as Tax Payment for 
                         Decedent's Last Tax Year                                  Keep for Your Records
Caution: The decedent is entitled to minimum relief of $10,000. Complete this worksheet only if the total tax forgiveness 
benefit provided for all eligible years is less than $10,000.

1 Minimum relief amount. 
   Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. . . . . . . . . . . . . . .                                                               1   $10,000
2 Enter the taxable income from Form 1041, line 22.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 2  2,400
3 Enter the distribution deduction from Form 1041, line 18. . . . . . . . . . . . . . . . . . . . . . . .                                      3  -0-
4 Add lines 2 and 3.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      4  2,400
5 Enter exempt income received after death minus expenses allocable to exempt 
   income. (See Income received after date of death, earlier.) . . . . . . . . . . . . . . . . . . . . .                                       5  1,000
6 Add lines 4 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     6  3,400
7 Figure the tax on line 6 using Form 1041, Schedule G.  . . . . . . . . . . . . . . . . . . . . . . . . .                                     7  600
8 Figure the tax on line 4 using Form 1041, Schedule G.  . . . . . . . . . . . . . . . . . . . . . . . . .                                     8  360
9  Tax on exempt income. Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    9  240
10 Enter the total of columns (A)–(D) from line 6 of Worksheet A or line 16 of 
   Worksheet B. If the decedent was not required to file tax returns for the eligible tax 
   years, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 6,745
11 Add lines 9 and 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         11 $6,985
12 Additional payment allowed. If line 11 is $10,000 or more, enter -0- and stop here. No 
   additional amount is allowed as a tax payment. Otherwise, subtract line 11 from line 1 and enter 
   the result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 $3,015
Note. The amount on line 12 is allowed as a tax payment for the decedent's last tax year. 
Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended 
income tax return for the decedent's last tax year. If filing Form 1040, include the amount from line 12 above on the 
“Credits from Form” line in the “Payments” section of Form 1040, page 2. Write “Sec. 692(d)(2) Payment” and the 
amount to the right of the entry space. Also indicate whether a Form 1041 is being filed for the decedent's estate.
If filing Form 1040X, include the amount from line 12 above on Form 1040X on the “Refundable credits from” line, 
columns (B) and (C). Check the box next to “other (specify)” and write “Sec. 692(d)(2) Payment” on the blank line.

Publication 3920 (September 2014)                                                                                                                                                    Page 15

- 16 -

Page 16 of 23  Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                                  14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Additional Worksheets

The following additional worksheets are provided for your 
convenience.

Worksheet A. Figuring the Tax To Be Forgiven                                                               Keep for Your Records
  (For  Decedents  Who  Filed  a  Return  as  Single,  Married  Filing  Separately,  Head  of  Household,  or  Qualifying 
Widow(er))
                                                                                             (A)      (B)      (C)       (D)
                                                                                             First    Second   Third    Fourth
                                                                                             Eligible Eligible Eligible Eligible 
                                                                                             Year     Year     Year     Year
1 Enter the years eligible for tax forgiveness. . . . . . . . . . .                        1
2 Enter the total tax from the decedent's income tax 
  return. See Table 1, earlier, for the line number. . . . . . .                           2
3 Enter the following taxes, if any, shown on the 
  decedent's income tax return. (These taxes are not 
  eligible for forgiveness.)
  a Self-employment tax. . . . . . . . . . . . . . . . . . . . . . . . . . .               3a
  b Unreported social security and Medicare tax from 
      Forms 4137 and 8919. . . . . . . . . . . . . . . . . . . . . . . . . .               3b
  c Tax on excess contributions to IRAs, Coverdell 
      education savings accounts (ESAs), Archer MSAs, 
      or health savings accounts (HSAs). . . . . . . . . . . . . . .                       3c
  d Tax on excess accumulation in qualified retirement 
      plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3d
  e Household employment taxes. . . . . . . . . . . . . . . . . . .                        3e
  f Uncollected social security and Medicare or RRTA 
      tax on tips or group-term life insurance. . . . . . . . . . . .                      3f
  g Tax on golden parachute payments. . . . . . . . . . . . . .                            3g
  h Health care: individual responsibility. . . . . . . . . . . . . .                      3h
  i Additional Medicare Tax. . . . . . . . . . . . . . . . . . . . . . . .                 3i
  j Net Investment Income Tax. . . . . . . . . . . . . . . . . . . . .                     3j
  k Excise tax on insider stock compensation from an 
      expatriated corporation. . . . . . . . . . . . . . . . . . . . . . . . .             3k
4 Add lines 3a through 3k. . . . . . . . . . . . . . . . . . . . . . . . . .               4
5 Tax adjustment to be reported with tax return. 
  Subtract line 4 from line 2. . . . . . . . . . . . . . . . . . . . . . . . .             5
6 Tax forgiveness benefit provided. Enter the amount 
  from line 5 if filing your claim within 3 years from the due 
  date of the return (including extensions). Otherwise, 
  enter only the part of the tax from line 5 that is currently 
  owed (not including interest and penalties) plus any 
  payments made within the open refund period. . . . . . . .                               6
Note. If the total of columns (A), (B), (C), and (D) of line 6 (including any amounts shown on line 16 of Worksheet 
B) is less than $10,000, also complete Worksheet C. 
  Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax 
  return or amended tax return (Form 1040X) for each year listed on line 1.
  If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of the 
  “Total tax” line as a decrease in tax. The IRS will determine the amount to be refunded.

Page 16                                                                                               Publication 3920 (September 2014)

- 17 -

Page 17 of 23   Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                                           14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet B. Figuring the Tax To Be Forgiven
                                                                                                                Keep for Your Records

             (For Decedents Who Filed a Joint Return)

                                                                                                       (A)      (B)      (C)      (D) 
                                                                                                       First    Second   Third    Fourth 
                                                                                                       Eligible Eligible Eligible Eligible 
                                                                                                       Year     Year     Year     Year
1 Enter the years eligible for forgiveness. . . . . . . . . . . . . . . . . . .                      1
2  Enter the decedent's taxable income. Figure taxable income 
   as if a separate return had been filed. See Lines 2 and 6 in 
   the Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . .               2
3  Enter the decedent's total tax. See Lines 3 and 7 in the 
   Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             3
4  Enter the total, if any, of the decedent's taxes not eligible for 
   forgiveness. See Line 4 in the Worksheet B 
   instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5  Subtract line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          5
6  Enter the surviving spouse's taxable income. Figure taxable 
   income as if a separate return had been filed. See Lines 2 
   and 6 in the Worksheet B instructions. . . . . . . . . . . . . . . . . . . .                      6
7  Enter the surviving spouse's total tax. See Lines 3 and 7 in 
   the Worksheet B instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . .               7
8  Enter the total, if any, of the surviving spouse's taxes listed 
   under Line 4 in the Worksheet B instructions. . . . . . . . . . . . . .                           8
9  Subtract line 8 from line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          9
10 Add lines 5 and 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      10
11 Enter the total tax from the joint return. See Table 1, earlier, 
   for the line number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      11
12 Add lines 4 and 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      12
13 Subtract line 12 from line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . .              13
14 Divide line 5 by line 10. Enter the result as a decimal. . . . . . .                              14
15 Tax adjustment to be reported with tax return. Multiply 
   line 13 by line 14 and enter the result. . . . . . . . . . . . . . . . . . . . .                  15
16 Tax forgiveness benefit provided. Enter the amount from 
   line 15 if filing your claim within 3 years from the due date of 
   the return (including extensions). Otherwise, enter only the 
   part of the tax from line 15 that is currently owed (not 
   including interest and penalties) plus any payments made 
   within the open refund period. . . . . . . . . . . . . . . . . . . . . . . . . . .                16
Note. If the total of columns (A), (B), (C), and (D) of line 16 (including any amounts shown on line 6 of Worksheet A) is less 
than $10,000, also complete Worksheet C. 
  Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or 
  amended tax return (Form 1040X) for each year listed on line 1.
  If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of the “Total 
  tax” line as a decrease in tax. The IRS will determine the amount to be refunded.

Publication 3920 (September 2014)                                                                                                     Page 17

- 18 -

Page 18 of 23    Fileid: … ns/P3920/201411/A/XML/Cycle04/source                                                                                 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet C. Amount Treated as Tax Payment for 
             Decedent's Last Tax Year                                              Keep for Your Records
Caution: The decedent is entitled to minimum relief of $10,000. Complete this worksheet only if the total tax forgiveness 
benefit provided for all eligible years is less than $10,000.

1 Minimum relief amount. 
   Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. . . . . . . . . . . . . . .                                                                   1   $10,000
2 Enter the taxable income from Form 1041, line 22.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              2  
3  Enter the distribution deduction from Form 1041, line 18. . . . . . . . . . . . . . . . . . . . . . . . .                                  3  
4  Add lines 2 and 3.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4  
5  Enter exempt income received after death minus expenses allocable to exempt 
   income. (See Income received after date of death, earlier.) . . . . . . . . . . . . . . . . . . . . . .                                    5  
6  Add lines 4 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6  
7  Figure the tax on line 6 using Form 1041, Schedule G.  . . . . . . . . . . . . . . . . . . . . . . . . . .                                 7  
8  Figure the tax on line 4 using Form 1041, Schedule G.  . . . . . . . . . . . . . . . . . . . . . . . . . .                                 8  
9  Tax on exempt income. Subtract line 8 from line 7.  . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                9  
10 Enter the total of columns (A)–(D) from line 6 of Worksheet A or line 16 of 
   Worksheet B. If the decedent was not required to file tax returns for the eligible tax 
   years, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10  
11 Add lines 9 and 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             11  
12 Additional payment allowed. If line 11 is $10,000 or more, enter -0- and stop here. No additional 
   amount is allowed as a tax payment. Otherwise, subtract line 11 from line 1 and enter the 
   result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12          
Note. The amount on line 12 is allowed as a tax payment for the decedent's last tax year. 
  Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended 
  income tax return for the decedent's last tax year. If filing Form 1040, include the amount from line 12 above on the 
  “Credits from Form” line in the “Payments” section of Form 1040, page 2. Write “Sec. 692(d)(2) Payment” and the 
  amount to the right of the entry space. Also indicate whether a Form 1041 is being filed for the decedent's estate.
  If filing Form 1040X, include the amount from line 12 above on Form 1040X on the “Refundable credits from” line, 
  columns (B) and (C). Check the box next to “other (specify)” and write “Sec. 692(d)(2) Payment” on the blank line.

Page 18                                                                        Publication 3920 (September 2014)

- 19 -

Page 19 of 23 Fileid: … ns/P3920/201411/A/XML/Cycle04/source 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

federal tax news, including information about tax law
changes and important IRS programs.
How To Get Tax Help
Check the status of your 2014 refund with the Where's
Special IRS assistance. The IRS is providing special My Refund? application on IRS.gov or download the
help for those affected by the terrorist attacks, as well as IRS2Go app and select the Refund Status option. The
survivors and personal representatives of the victims. We IRS issues more than 9 out of 10 refunds in less than
have set up a special toll-free number for people who may 21 days. Using these applications, you can start
have trouble filing or paying their taxes because they were checking on the status of your return within 24 hours
affected by the terrorist attacks, or who have other tax is- after we receive your e-filed return or 4 weeks after
sues related to the attacks. you mail a paper return. You will also be given a per-
sonalized refund date as soon as the IRS processes
Call 18665625227 your tax return and approves your refund. The IRS up-
Monday through Friday dates Where's My Refund? every 24 hours, usually
In English–7 a.m. to 7 p.m. local time overnight, so you only need to check once a day.
In Spanish–7 a.m. to 7 p.m. local time
Use the Interactive Tax Assistant (ITA) to research
your tax questions. No need to wait on the phone or
The IRS web site at www.irs.gov has notices and other
stand in line. The ITA is available 24 hours a day, 7
tax relief information. Check it periodically for any new
days a week, and provides you with a variety of tax in-
guidance or to see if Congress has enacted new legisla-
formation related to general filing topics, deductions,
tion.
credits, and income. When you reach the response
For current information on federally declared disaster screen, you can print the entire interview and the final
areas, check the Federal Emergency Management
response for your records. New subject areas are
Agency Web site at www.fema.gov.
added on a regular basis.
Whether it's help with a tax issue, preparing your tax re- Answers not provided through ITA may be found in
turn or a need for a free publication or form, get the help Tax Trails, one of the Tax Topics on IRS.gov which
you need the way you want it: online, use a smart phone, contain general individual and business tax informa-
call or walk in to an IRS office or volunteer site near you. tion or by searching the IRS Tax Map, which includes
an international subject index. You can use the IRS
Free help with your tax return. You can get free help Tax Map, to search publications and instructions by
preparing your return nationwide from IRS-certified volun- topic or keyword. The IRS Tax Map integrates forms
teers. The Volunteer Income Tax Assistance (VITA) pro- and publications into one research tool and provides
gram helps low-to-moderate income, elderly, people with single-point access to tax law information by subject.
disabilities, and limited English proficient taxpayers. The When the user searches the IRS Tax Map, they will be
Tax Counseling for the Elderly (TCE) program helps tax- provided with links to related content in existing IRS
payers age 60 and older with their tax returns. Most VITA publications, forms and instructions, questions and
and TCE sites offer free electronic filing and all volunteers answers, and Tax Topics.
will let you know about credits and deductions you may be You can immediately view and print for free all 5 types
entitled to claim. In addition, some VITA and TCE sites of individual federal tax transcripts (tax returns, tax ac-
provide taxpayers the opportunity to prepare their own re- count, record of account, wage and income state-
turn with help from an IRS-certified volunteer. To find the ment, and certification of non-filing) using Get Tran
nearest VITA or TCE site, you can use the VITA Locator script. You can also ask the IRS to mail a return or an
Tool on IRS.gov, download the IRS2Go app, or call account transcript to you. Only the mail option is avail-
1-800-906-9887. able by choosing the Tax Records option on the
As part of the TCE program, AARP offers the Tax-Aide IRS2Go app by selecting Mail Transcript on IRS.gov
counseling program. To find the nearest AARP Tax-Aide or by calling 1-800-908-9946. Tax return and tax ac-
site, visit AARP's website at www.aarp.org/money/taxaide count transcripts are generally available for the current
or call 1-888-227-7669. For more information on these year and the past three years.
programs, go to IRS.gov and enter “VITA” in the search
box. Determine if you are eligible for the EITC and estimate
the amount of the credit with the Earned Income Tax
Internet. IRS.gov and IRS2Go are ready when you Credit (EITC) Assistant.
are —24 hours a day, 7 days a week. Visit Understanding Your IRS Notice or Letter to get
Download the free IRS2Go app from the iTunes app answers to questions about a notice or letter you re-
store or from Google Play. Use it to check your refund ceived from the IRS.
status, order transcripts of your tax returns or tax ac- If you received the First Time Homebuyer Credit, you
count, watch the IRS YouTube channel, get IRS news can use the First Time Homebuyer Credit Account
as soon as it's released to the public, subscribe to fil- Lookup tool for information on your repayments and
ing season updates or daily tax tips, and follow the account balance.
IRS Twitter news feed, @IRSnews, to get the latest

Publication 3920 (September 2014) Page 19

- 20 -

Page 20 of 23 Fileid: … ns/P3920/201411/A/XML/Cycle04/source 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Check the status of your amended return using let. Download the free IRS2Go app from the iTunes app
Where's My Amended Return? Go to IRS.gov and en- store or from Google Play.
ter Where's My Amended Return? in the search box.
Call to locate the nearest volunteer help site,
You can generally expect your amended return to be
1-800-906-9887 or you can use the VITA Locator Tool
processed up to 12 weeks from the date we receive it.
on IRS.gov, or download the IRS2Go app.
It can take up to 3 weeks from the date you mailed it to
Low-to-moderate income, elderly, people with disabili-
show up in our system.
ties, and limited English proficient taxpayers can get
Make a payment using one of several safe and con- free help with their tax return from the nationwide Vol-
venient electronic payment options available on unteer Income Tax Assistance (VITA) program. The
IRS.gov. Select the Payment tab on the front page of Tax Counseling for the Elderly (TCE) program helps
IRS.gov for more information. taxpayers age 60 and older with their tax returns. Most
Determine if you are eligible and apply for an online VITA and TCE sites offer free electronic filing. Some
payment agreement, if you owe more tax than you can VITA and TCE sites provide IRS-certified volunteers
pay today. who can help prepare your tax return. Through the
TCE program, AARP offers the Tax-Aide counseling
Figure your income tax withholding with the IRS program; call 1-888-227-7669 to find the nearest
Withholding Calculator on IRS.gov. Use it if you've Tax-Aide location.
had too much or too little withheld, your personal sit-
uation has changed, you're starting a new job or you Call the automated Where's My Refund? information
just want to see if you're having the right amount with- hotline to check the status of your 2014 refund 24
held. hours a day, 7 days a week at 1-800-829-1954. If you
e-file, you can start checking on the status of your re-
Determine if you might be subject to the Alternative turn within 24 hours after the IRS receives your tax re-
Minimum Tax by using the Alternative Minimum Tax turn or 4 weeks after you've mailed a paper return.
Assistant on IRS.gov. The IRS issues more than 9 out of 10 refunds in less
Request an Electronic Filing PIN by going to than 21 days. Where's My Refund? will give you a per-
IRS.gov and entering Electronic Filing PIN in the sonalized refund date as soon as the IRS processes
search box. your tax return and approves your refund. Before you
call this automated hotline, have your 2014 tax return
Download forms, instructions and publications, includ-
handy so you can enter your social security number,
ing accessible versions for people with disabilities.
your filing status, and the exact whole dollar amount of
Locate the nearest Taxpayer Assistance Center your refund. The IRS updates Where's My Refund?
(TAC) using the Office Locator tool on IRS.gov, or every 24 hours, usually overnight, so you only need to
choose the Contact Us option on the IRS2Go app and check once a day. Note, the above information is for
search Local Offices. An employee can answer ques- our automated hotline. Our live phone and walk-in as-
tions about your tax account or help you set up a pay- sistors can research the status of your refund only if
ment plan. Before you visit, check the Office Locator it's been 21 days or more since you filed electronically
on IRS.gov, or Local Offices under Contact Us on or more than 6 weeks since you mailed your paper re-
IRS2Go to confirm the address, phone number, days turn.
and hours of operation, and the services provided. If
you have a special need, such as a disability, you can Call the Amended Return Hotline, 1-866-464-2050, to
request an appointment. Call the local number listed check the status of your amended return. You can
in the Office Locator, or look in the phone book under generally expect your amended return to be pro-
United States Government, Internal Revenue Service. cessed up to 12 weeks from the date we receive it. It
can take up to 3 weeks from the date you mailed it to
Apply for an Employer Identification Number (EIN). show up in our system.
Go to IRS.gov and enter Apply for an EIN in the
search box. Call 1-800-TAX-FORM (1-800-829-3676) to order cur-
rent-year forms, instructions, publications, and
Read the Internal Revenue Code, regulations, or other prior-year forms and instructions (limited to 5 years).
official guidance. You should receive your order within 10 business
Read Internal Revenue Bulletins. days.
Call TeleTax, 1-800-829-4477, to listen to pre-recor-
Sign up to receive local and national tax news and
ded messages covering general and business tax in-
more by email. Just click on “subscriptions” above the
formation. If, between January and April 15, you still
search box on IRS.gov and choose from a variety of
have questions about the Form 1040, 1040A, or
options.
1040EZ (like filing requirements, dependents, credits,
Phone. You can call the IRS, or you can carry it in your Schedule D, pensions and IRAs or self-employment
pocket with the IRS2Go app on your smart phone or tab- taxes), call 1-800-829-1040.
Call using TTY/TDD equipment, 1-800-829-4059 to
ask tax questions or order forms and publications. The

Page 20 Publication 3920 (September 2014)

- 21 -

Page 21 of 23 Fileid: … ns/P3920/201411/A/XML/Cycle04/source 14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

TTY/TDD telephone number is for people who are You face (or your business is facing) an immediate
deaf, hard of hearing, or have a speech disability. threat of adverse action.
These individuals can also contact the IRS through re-
You've tried repeatedly to contact the IRS but no one
lay services such as the Federal Relay Service.
has responded, or the IRS hasn't responded by the
Walkin. You can find a selection of forms, publications date promised.
and services — in-person.
Products. You can walk in to some post offices, libra- If you qualify for our help, you'll be assigned to one advo-
ries, and IRS offices to pick up certain forms, instruc- cate who'll be with you at every turn and will do everything
tions, and publications. Some IRS offices, libraries, possible to resolve your problem. Here's why we can help:
and city and county government offices have a collec- TAS is an independent organization within the IRS.
tion of products available to photocopy from reprodu-
cible proofs. Our advocates know how to work with the IRS.

Services. You can walk in to your local TAC for Our services are free and tailored to meet your needs.
face-to-face tax help. An employee can answer ques-
tions about your tax account or help you set up a pay- We have offices in every state, the District of Colum-
ment plan. Before visiting, use the Office Locator tool bia, and Puerto Rico.
on IRS.gov, or choose the Contact Us option on the
IRS2Go app and search Local Offices for days and How can you reach us? If you think TAS can help you, call
hours of operation, and services provided. your local advocate, whose number is in your local direc-
tory and at Taxpayer Advocate, or call us toll-free at
Mail. You can send your order for forms, instructions, and
1-877-777-4778.
publications to the address below. You should receive a

response within 10 business days after your request is re-
How else does TAS help taxpayers?
ceived.

Internal Revenue Service TAS also works to resolve large-scale, systemic problems
1201 N. Mitsubishi Motorway that affect many taxpayers. If you know of one of these
Bloomington, IL 61705-6613 broad issues, please report it to us through our Systemic
Advocacy Management System.

The Taxpayer Advocate Service Is Here to Help You. The Low Income Taxpayer Clinics
Taxpayer Advocate Service (TAS) is your voice at the
IRS. Our job is to ensure that every taxpayer is treated Low Income Taxpayer Clinics (LITCs) serve individuals
fairly and that you know and understand your rights. whose income is below a certain level and need to resolve
tax problems such as audits, appeals and tax collection
What can TAS do for you? We can offer you free help with disputes. Some clinics can provide information about tax-
IRS problems that you can't resolve on your own. We payer rights and responsibilities in different languages for
know this process can be confusing, but the worst thing individuals who speak English as a second language. Visit
you can do is nothing at all! TAS can help if you can't re- Taxpayer Advocate or see IRS Publication 4134, Low In-
solve your tax problem and: come Taxpayer Clinic List.
Your problem is causing financial difficulties for you,
your family, or your business.

Publication 3920 (September 2014) Page 21

- 22 -

Page 22 of 23         Fileid: … ns/P3920/201411/A/XML/Cycle04/source                      14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                    To help us develop a more useful index, please let us know if you have ideas for index entries.
Index               See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
                                       Examples:
$10,000 minimum relief:                  Disability payments 2 3,              M
  Tax forgiveness 8                      Tax forgiveness:                      Married filing separately:
                                           Minimum amount of relief  9          (See also Tax forgiveness)
                                           Refund of taxes paid   11             Figuring tax forgiveness 5 6 16,  , 
A                                          September 11 attacks    5
Amended returns   11
  Disability payments  3                                                       O
  Tax forgiveness 11                   F                                       Oklahoma City attack:
Anthrax attacks:                       Filing deadline:                         (See also Tax forgiveness)
 (See also Tax forgiveness)              Tax forgiveness:                        Years eligible for tax forgiveness        4
  Years eligible for tax forgiveness 4     Credit for taxes paid 4             Ordering:
Assistance   19                            Refund of taxes paid   4              Forms 2
 (See also Tax help)                   Forgiveness, Tax (See Tax                 Publications 2
  Hours 2                                forgiveness)                          Ordering a filed tax return               12
  Phone number    2                    Form 1040:
  Topics not covered in this             Disability payments 3
  publication   2                        Tax forgiveness 11                    P
                                       Form 1040NR:                            Private delivery services  12
                                         Disability payments 3                 Publications (See Tax help)
B                                        Tax forgiveness 11                    Public safety officers:
Bureau of Justice Assistance   4       Form 1040X:                               Survivors of 4
                                         Disability payments 3
                                         Example  3
C                                        Tax forgiveness 4 11,                 Q
Comments and suggestions     2         Form 1041:                              Qualified disaster relief 
                                         Income received after death 9           payments  3
D                                        Tax forgiveness 4                     Qualifying widow(er):
Death benefits  4                      Form 706   13                            (See also Tax forgiveness)
  Public safety officers:              Free tax services 19                      Figuring tax forgiveness 5 6 16,  , 
  Bureau of Justice Assistance   4
  Government plan annuity    4         G                                       R
  Survivors of    4                    Government plan annuity     4           Refund of taxes paid   4
Decedents (See Tax forgiveness)
Disability payments  2
  Examples   2 3,                      H                                       S
  Nontaxable payments reported as      Head of household:                      September 11 attacks:
  taxable    3                          (See also Tax forgiveness)              (See also Tax forgiveness)
  Which form to use    3                 Figuring tax forgiveness 5 6 16,  ,     Years eligible for tax forgiveness        4
  Payments not covered    2            Help (See Tax help)                     September 11th Victim 
  SSDI  2 3,                                                                     Compensation Fund of 2001:
  Taxes incorrectly withheld 3                                                   Payments to survivors   2
  Which form to use:                   I                                         Reduction of estate tax 13
  Form 1040     3                      Income received after death:            Single filing status:
  Form 1040NR        3                   Tax forgiveness 9                      (See also Tax forgiveness)
  Nonresident alien    3               Instructions:                             Figuring tax forgiveness 5 6 16,  , 
                                         Worksheet B  8                        Structured settlement factoring 
                                         Worksheet C  10                         transactions  13
E                                        Worksheet D  11                       Survivors, Payments to    2
Estate tax reduction   13                                                      Survivors, Payments to:
  Form 706:                                                                      Death benefits 4
  When to file    13                   J                                         Disability payments (See Disability 
  Where to file   13                   Joint returns:                            payments)
  Who must file   13                    (See also Tax forgiveness)               Public safety officers 4
  September 11th Victim                  Figuring tax forgiveness 5 7 13,  , ,   Qualified disaster relief payments        3
  Compensation Fund of 2001      13        14 17, 

Page 22                                                                        Publication 3920 (September 2014)

- 23 -

Page 23 of 23          Fileid: … ns/P3920/201411/A/XML/Cycle04/source                         14:45 - 9-Sep-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

  September 11th Victim                    Qualifying widow(er)       5 6 16,  ,      Nonresident alien    11
  Compensation Fund of 2001            2   Single filing status 5 6 16,  ,            Years eligible 4
Survivors:                                 Tax not eligible for forgiveness        9  Anthrax attacks     4
  Of the attacks (See Survivors,           Worksheet A   5 6 8 16,  ,  ,              Oklahoma City attack    4
  Payments to)                             Worksheet B   5 7 8 13 14 17,  ,  , , ,    September 11 attacks      4
  Of victims of the                        Filling out the tax return 12             Tax help 19
  attacks (See Survivors,                  How to claim 11 12,                       Tax return:
  Payments to)                             Form 1310, When required        12         Ordering a filed return 12
                                           Necessary documents        12
                                           Ordering a filed tax return     12
T                                          Private delivery services,                W
Table 1: Total tax line 8                  Using 12                                  Where to file, Special rules for:
Tax forgiveness   4                        Proof of death, What qualifies             Estate tax reduction 13
  $10,000 minimum relief  8 10 11, ,     , as 12                                      Tax forgiveness   12
  13 15 18, ,                              Taxpayer identification number            Worksheet A   5
  Worksheet A       8                      (TIN) requirement          12              Blank 6 16, 
  Worksheet B       8                      Where to file 12                           Line 2, total tax 8
  Worksheet C       8 10 13 15 18, , , ,   Nonresident alien:                        Worksheet B   5
  Worksheet D       11                     Taxpayer identification number             Blank 7 17, 
  Credit for taxes paid 4                  (TIN) requirement          12              Illustrated 13 14, 
  Deadline for filing 4                    Which form to use    11                    Instructions 8
  Examples:                                Refund of taxes paid 4 11,                 Line 11, total tax 8
  September 11 attacks       5             Examples     11                           Worksheet C:
  Figuring the amount   5 8,               Tax not eligible for forgiveness 9         Blank 10 18, 
  Both spouses died     5                  Which form to use:                         Illustrated 13 15, 
  Community property states        5       Amended returns     11                     Instructions 10
  Head of household     5 6 16,  ,         Form 1040    11                           Worksheet D:
  Income received after death          9   Form 1040NR     11                         Blank 11
  Joint returns   5 7 13 14 17,  , , ,     Form 1040X    11                           Instructions 11
  Married filing separately    5 6 16,  ,  Form 1041    9
  Minimum amount of relief       8

Publication 3920 (September 2014)                                                                                        Page 23

PDF file checksum: 876848224

(Plugin #1/9.12/13.0)