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           Publication 3402
           (Rev. June 2016)                                      Contents
           Cat. No. 27940D                                       Reminder . . . . . . . . . . . . . . . . . . . . 1
Department 
of the                                                           Introduction . . . . . . . . . . . . . . . . . . 1
Treasury
Internal   Taxation of                                           What is a Limited Liability 
Revenue                                                          Company? . . . . . . . . . . . . . . . . 2
Service
           Limited Liability                                     Classification of an LLC . . . . . . . . . . . 2
                                                                 LLCs Classified as Partnerships       . . . . . 2
           Companies
                                                                 LLCs Classified as Disregarded 
                                                                 Entities . . . . . . . . . . . . . . . . . . 2
                                                                 LLCs Classified as Corporations       . . . . . 3
                                                                 Subsequent Elections . . . . . . . . . . . . 4
                                                                 Community Property . . . . . . . . . . . . . 4
                                                                 How To Get Tax Help     . . . . . . . . . . . . 4
                                                                 Index . . . . . . . . . . . . . . . . . . . . . . 6

                                                                 Reminder
                                                                 Photographs of missing children.        The Inter
                                                                 nal Revenue Service is a proud partner with the 
                                                                 National Center for Missing and Exploited Chil
                                                                 dren. Photographs of missing children selected 
                                                                 by the Center may appear in this publication on 
                                                                 pages that would otherwise be blank. You can 
                                                                 help bring these children home by looking at the 
                                                                 photographs  and  calling  1800THELOST 
                                                                 (18008435678) if you recognize a child.

                                                                 Introduction
                                                                 This  publication  provides  federal  income,  em
                                                                 ployment, and excise tax information for limited 
                                                                 liability companies. This publication doesn't ad
                                                                 dress state law governing the formation, opera
                                                                 tion, or termination of limited liability companies. 
                                                                 This  publication  doesn't  address  any  state 
                                                                 taxes.
                                                                 Comments  and  suggestions.         We  welcome 
                                                                 your comments about this publication and your 
                                                                 suggestions for future editions.
                                                                 You     can     send    us      comments      from 
                                                                 www.irs.gov/formspubs.  Click  on  “More  Infor
                                                                 mation” and then on “Give us feedback.”
                                                                 Or you can write to:
                                                                 Internal Revenue Service
                                                                 Tax Forms and Publications
                                                                 1111 Constitution Ave. NW, IR6526
                                                                 Washington, DC 20224

                                                                 We  respond  to  many  letters  by  telephone. 
                                                                 Therefore,  it  would  be  helpful  if  you  would  in
                                                                 clude  your  daytime  phone  number,  including 
                                                                 the area code, in your correspondence.
                                                                 Although we cannot respond individually to 
           Get forms and other information faster and easier at: each comment received, we do appreciate your 
           • IRS.gov (English)                                   feedback  and  will  consider  your  comments  as 
           • IRS.gov/Spanish (Español)                           we revise our tax products.
           • IRS.gov/Chinese

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Ordering forms and publications. Visit federal income tax purposes. An LLC with only owned solely by Francis. No entity classification
www.irs.gov/formspubs to download forms and one member is treated as an entity disregarded election is made after the sale to treat the LLC
publications. Otherwise, you can go to as separate from its owner for income tax pur as a corporation for federal tax purposes. The
www.irs.gov/orderforms to order current and poses (but as a separate entity for purposes of partnership terminates when Francis buys
prioryear forms and instructions. Your order employment tax and certain excise taxes). Also, Ethel's entire interest. Ethel must treat the trans
should arrive within 10 business days. an LLC's federal tax classification can subse action as the sale of a partnership interest and
quently change under certain default rules dis must report gain or loss, if any, resulting from
Tax questions. If you have a tax question cussed later. the sale of her partnership interest.
not answered by this publication, check For purposes of determining the tax treat
IRS.gov and How To Get Tax Help at the end of Elected classification. An LLC can elect to be ment of Francis, the partnership is deemed to
this publication. classified as an association taxable as a corpo make a liquidating distribution of all of its assets
ration or as an S corporation. After an LLC has to Ethel and Francis, and after this distribution,
Useful Items determined its federal tax classification, it can Francis is treated as acquiring the assets
You may want to see: later elect to change that classification. For de deemed to have been distributed to Ethel in liq
tails, see Subsequent Elections, later. uidation of Ethel's partnership interest. Francis'
Publication basis in the assets attributable to Ethel's
15 (Circular E), Employer's Tax Guide onehalf interest in the partnership is $10,000,
LLCs Classified as the purchase price for Ethel's partnership inter
334 Tax Guide for Small Business est. Upon the termination of the partnership,
Partnerships
505 Tax Withholding and Estimated Tax Francis is considered to receive a distribution of
those assets attributable to Francis' former in
535 Business Expenses If an LLC has at least two members and is clas terest in the partnership. Francis must recog
sified as a partnership, it generally must file nize gain or loss, if any, on the deemed distribu
541 Partnerships Form 1065, U.S. Return of Partnership Income. tion of the assets to the extent required by
542 Corporations Generally, an LLC classified as a partnership is section 731(a). See Partnership Distributions in
subject to the same filing and reporting require Pub. 541.
544 Sales and Other Dispositions of ments as partnerships. See the Instructions for
Assets Form 1065 for reporting rules that apply specifi Example 2. George and Henrietta are
583 Starting a Business and Keeping cally to LLCs. members of an LLC classified as a partnership
Records for federal tax purposes. Each holds an equal
925 Passive Activity and AtRisk Rules Member manager. Only a member manager membership interest. The LLC doesn't hold any
of an LLC can sign the partnership tax return. unrealized receivables or substantially appreci
Form (and Instructions) And only a member manager can represent the ated inventory. George and Henrietta each sell
LLC as the tax matters partner under the con their entire interests in the LLC to Ian, an unre
1065 U.S. Return of Partnership Income solidated audit proceedings in sections 6221 lated person, in exchange for $10,000. After the
1120 U.S. Corporation Income Tax Return through 6234. A member manager is any owner sale, the business is continued by the LLC,
of an interest in the LLC who, alone or together which is owned solely by Ian. No entity classifi
1120S U.S. Income Tax Return for an S with others, has the continuing authority to cation election is made after the sale to treat the
Corporation make the management decisions necessary to LLC as a corporation for federal tax purposes.
2553 Election by a Small Business conduct the business for which the LLC was The partnership terminates when Ian purchases
Corporation formed. If there are no elected or designated the entire interests of George and Henrietta in
member managers, each owner is treated as a the LLC. George and Henrietta must report gain
8832 Entity Classification Election member manager. or loss, if any, resulting from the sale of their
See How To Get Tax Help near the end of this partnership interests. For purposes of classify
publication for information about getting publi Change in default classification. If the num ing the acquisition by Ian, the partnership is
cations and forms. ber of members in an LLC classified as a part deemed to make a liquidating distribution of its
nership is reduced to only one member, it be assets to George and Henrietta. Immediately
comes an entity disregarded as separate from following this distribution, Ian is deemed to ac
its owner under Regulations section
What is a Limited 301.77013(f)(2). However, if the LLC has quire, by purchase, all of the former partner
Liability Company? made an election to be classified as a corpora ship's assets.
tion (discussed later) and that elective classifi For more details on the preceding two ex
For purposes of this publication, a limited liabil cation is in effect at the time of the change in amples, see Revenue Ruling 996, 19996
ity company (LLC) is a business entity organ membership, the default classification as a dis I.R.B. 6. You can find Revenue Ruling 996 at
ized in the United States under state law. An regarded entity will not apply. www.irs.gov/pub/irsirbs/irb9906.pdf.
LLC may be classified for federal income tax Other tax consequences of a change in
purposes as a partnership, corporation, or an membership, such as recognition of gain or
entity disregarded as separate from its owner loss, are determined by the transactions LLCs Classified as
by applying the rules in Regulations section through which an interest in the LLC is acquired Disregarded Entities
301.77013. or disposed of. If a partnership that becomes a
disregarded entity as a result of a decrease in Income tax. If an LLC has only one member
The information in this publication applies to the number of members makes an election to and is classified as an entity disregarded as
LLCs in general, and different rules may apply be classified as a corporation, the applicable separate from its owner, its income, deductions,
to special situations, including banks, insurance deemed transactions discussed under Subse gains, losses, and credits are reported on the
companies, or nonprofit organizations that are quent Elections, later, apply. owner's income tax return. For example, if the
LLCs or that own LLCs. Check your state's re
quirements and the federal tax regulations for Example 1. Ethel and Francis are mem owner of the LLC is an individual, the LLC's in
further information. bers of an LLC classified as a partnership for come and expenses would be reported on the
federal tax purposes. Each holds an equal following schedules filed with the owner's Form
membership interest. The LLC doesn't hold any 1040:
Classification of an LLC unrealized receivables or substantially appreci Schedule C, Profit or Loss from Business
ated inventory. Ethel sells her entire interest in (Sole Proprietorship);
Default classification. An LLC with at least the LLC to Francis for $10,000. After the sale, Schedule CEZ, Net Profit From Business
two members is classified as a partnership for the business is continued by the LLC, which is (Sole Proprietorship);

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Schedule E, Supplemental Income and employment taxes. Because LLC is treated as a Example 5. Charles, who isn't related to
Loss; or sole proprietorship of Irene for income tax pur Danielle, contributes $10,000 to an LLC owned
Schedule F, Profit or Loss From Farming. poses, Irene must report the income and ex by Danielle for a 50% ownership interest in the
penses from LLC on her Schedule C. Irene will LLC. The LLC uses all of the contributed cash
Note. The LLC should not file an income figure the tax due on her net earnings from in its business. Charles and Danielle continue to
tax return. selfemployment on Schedule SE. Irene can operate the business of the LLC as coowners
also deduct onehalf of her selfemployment tax of the LLC. The LLC is converted from a disre
Employment tax and certain excise taxes. on line 27 of her Form 1040. garded entity to a partnership when Charles
A singlemember LLC disregarded for income contributes cash to the LLC. Charles' contribu
tax purposes is considered a corporation for Taxpayer identification number. For all in tion is treated as a contribution to a partnership
employment tax and collection of income tax come tax purposes, a singlemember LLC clas in exchange for an ownership interest in the
and certain excise tax purposes and must use sified as a disregarded entity must use the own partnership. Danielle is treated as contributing
its own name and identification number for er's social security number (SSN) or EIN. This all of the assets of the LLC to the partnership in
those purposes. includes all information returns and reporting re exchange for a partnership interest. Neither
See the employment and excise tax returns lated to income tax. For example, if a disregar Charles nor Danielle recognizes gain or loss as
and instructions, including the following, for ded entity LLC that is owned by an individual is a result of the conversion of the disregarded en
more information. required to provide a Form W9, Request for tity to a partnership.
Form 637, Application for Registration (For Taxpayer Identification Number and Certifica For more details on the preceding two ex
Certain Excise Tax Activities) tion, the LLC must provide the owner's SSN or amples, see Revenue Ruling 995, 19996
Form 720, Quarterly Federal Excise Tax EIN, not the LLC's EIN. I.R.B. 8. You can find Revenue Ruling 995 at
Return However, most new singlemember LLCs www.irs.gov/pub/irsirbs/irb9906.pdf.
Form 730, Monthly Tax Return for Wagers classified as a disregarded entity will need to
(Section 4401 of the Internal Revenue obtain an EIN for the LLC. An LLC will need an
Code) EIN if it has any employees or if it will be re LLCs Classified as
Form 2290, Heavy Highway Vehicle Use quired to file any of the excise tax forms listed
Tax Return above (see Employment tax and certain excise Corporations
Form 11–C, Occupational Tax and Regis taxes earlier). See Form SS4, Application for
tration Return for Wagering Employer Identification Number, for information An LLC with either a single member or more
Form 8849, Claim for Refund of Excise on applying for an EIN. than one member can elect to be classified as a
Taxes corporation rather than be classified as a part
Change in default classification. If a sin nership or disregarded entity under the default
For the purposes of determining certain ex glemember LLC classified as a disregarded rules discussed earlier. File Form 8832 to elect
ceptions from employment tax because of the entity for income tax purposes acquires an ad classification as a C corporation. File Form
familial relationship or religious affiliation of the ditional member, it becomes a partnership un 2553 to elect classification as an S corporation.
employer and employee, the owner of the LLC der Regulations section 301.77013(f)(2). How An LLC electing classification as an S corpora
is considered the employer. Additionally, the ever, if the LLC has made an election to be tion isn't required to file Form 8832 to elect clas
owner of the entity is subject to the withholding classified as a corporation (discussed later) and sification as a corporation before filing Form
requirements imposed by section 3406 (backup that elective classification is in effect at the time 2553. By filing Form 2553, an LLC is deemed to
withholding). of the change in membership, the default classi have elected classification as a corporation in
fication as a partnership will not apply. addition to the S corporation classification.
Self-employment tax. An individual owner of
a singlemember LLC classified as a disregar Other tax consequences of a change in If the LLC elects to be classified as a
ded entity isn't an employee of the LLC. In membership, such as recognition of gain or ! corporation by filing Form 8832, a
stead, the owner is subject to tax on the net loss, are determined by the transactions CAUTION copy of the LLC's Form 8832 must be
earnings from selfemployment of the LLC through which an interest in the LLC is acquired attached to the federal income tax return of
which is treated in the same manner as a sole or disposed of. If a disregarded entity that be each direct and indirect owner of the LLC for
proprietorship. Similarly, a partner in a partner comes a partnership as a result of an increase the tax year of the owner that includes the date
ship that is the owner of a singlemember LLC in the number of members makes an election to on which the election took effect.
classified as a disregarded entity is not an em be classified as a corporation, the applicable
ployee of the LLC. Instead, the partner is sub deemed transactions discussed in Subsequent
ject to the same selfemployment tax rules as a Elections, later, apply. Example 6. Classification as a corpora
tion without an S election. Wanda and Syl
partner of a partnership that does not own a dis vester are members of an LLC. They agree that
regarded entity. Example 4. Bart, who isn't related to Alain,
buys 50% of Alain's interest in an LLC that is a the LLC should be classified as a corporation
Example 3. LLC is a disregarded entity disregarded entity for $5,000. Alain doesn't but don't want to elect to have the LLC be
owned by Irene. LLC has three employees contribute any portion of the $5,000 to the LLC. treated as an S corporation. The LLC must file
(Kent, Patricia, and Tex) and pays wages. LLC Alain and Bart continue to operate the business Form 8832.
is treated as an entity separate from its owner of the LLC as coowners of the LLC. The LLC is
for purposes of employment taxes. For the wa converted to a partnership when the new mem Example 7. Classification as a corpora
ges paid to Kent, Patricia, and Tex, LLC is liable ber, Bart, buys an interest in the disregarded tion with an S election. Evelyn and Carol are
for income tax withholding, Federal Insurance entity from the owner, Alain. Bart's buying a members of an LLC. They agree that the LLC
Contributions Act (FICA) taxes, and Federal 50% interest in Alain's ownership interest in the should be classified as an S corporation. The
Unemployment Tax Act (FUTA) taxes. In addi LLC is treated as Bart's buying a 50% interest in LLC must file Form 2553 instead of Form 8832.
tion, LLC must file under its name and EIN the each of the LLC's assets, which are treated as If the LLC is classified as a corporation, it
applicable employment tax returns; make timely owned directly by Alain for federal income tax must file a corporation income tax return. If it is
employment tax deposits; and file with the So purposes. Immediately thereafter, Alain and a C corporation, it is taxed on its taxable income
cial Security Administration and furnish to LLC's Bart are treated as contributing their respective and distributions to the members are includible
employees (Kent, Patricia, and Tex) Forms interests in those assets to a partnership in ex in the members' gross income to the extent of
W2, Wage and Tax Statement. Irene is change for ownership interests in the partner the corporation's earnings and profits (double
selfemployed for purposes of the selfemploy ship. Alain recognizes gain or loss from the taxation). If it is an S corporation, the corpora
ment tax. Thus, Irene is subject to selfemploy deemed sale to Bart of the 50% interest in the tion is generally not subject to any income tax
ment tax on her net earnings from selfemploy assets. Neither Alain nor Bart recognizes any and the income, deductions, gains, losses, and
ment with respect to LLC's activities. Irene isn't gain or loss as a result of the deemed contribu credits of the corporation “pass through” to the
an employee of LLC for purposes of tion of the assets to the partnership. members.
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Corporations generally file either: law topics and provide answers. You can
Form 1120; or print the entire interview and the final re
Form 1120S. Community Property sponse.
Enter “Pub 17” in the search box on
For more information on the income taxation A married couple may choose to treat a busi IRS.gov to get Pub. 17, Your Federal In
of corporations and their shareholders, see ness entity as a partnership or as a disregarded come Tax for Individuals, which features
Pub. 542. For more information on the income entity if: details on taxsaving opportunities, tax
taxation of S corporations and their sharehold 1. The business entity is wholly owned by the changes, and thousands of interactive
ers, see the Instructions for Form 1120S. couple as a community property under the links to help you find answers to your ques
laws of a state, a foreign country, or pos tions.
session of the United States; Additionally, you may be able to access
tax law information in your electronic filing
Subsequent Elections 2. No person other than one or both spouses software.
would be considered an owner for federal
An LLC can elect to change its classification. tax purposes; and
Generally, once an LLC has elected to change Tax forms and publications. You can down
its classification, it can't elect again to change 3. The business entity isn't treated as a cor load or print all of the forms and publications
its classification during the 60 months after the poration under Regulations section you may need on www.irs.gov/formspubs. Oth
effective date of the election. An election by a 301.7701–2. erwise, you can go to www.irs.gov/orderforms
newly formed LLC that is effective on the date A change in reporting position will be treated to place an order and have forms mailed to you.
of formation isn't considered a change for pur as a conversion of the entity. You should receive your order within 10 busi
poses of this limitation. For more information ness days.
and exceptions, see Regulations section
301.77013(c) and the Form 8832 instructions. Direct Deposit. The fastest way to receive a
How To Get Tax Help tax refund is by combining direct deposit and
An election to change classification can IRS efile. Direct deposit securely and electroni
have significant tax consequences based on If you have questions about a tax issue, need cally transfers your refund directly into your fi
the following transactions that are deemed to help preparing your tax return, or want to down nancial account. Eight in 10 taxpayers use di
occur as a result of the election. load free publications, forms, or instructions, go rect deposit to receive their refund. The majority
to IRS.gov and find resources that can help you of refunds are received within 21 days or less.
Partnership to corporation. An election to right away.
change classification from a partnership to a Getting a transcript or copy of a return.
corporation will be treated as if the partnership Preparing and filing your tax return. Find Go to IRS.gov and click on “Get Transcript
contributed all of its assets and liabilities to the free options to prepare and file your return on of Your Tax Records” under “Tools.”
corporation in exchange for stock and the part IRS.gov or in your local community if you qual Call the transcript tollfree line at
nership then immediately liquidated by distribut ify. 18009089946.
ing the stock to its partners. Go to IRS.gov and click on the Filing tab to Mail Form 4506T or Form 4506TEZ (both
For more information, see Partnership Distri see your options. available on IRS.gov).
butions in Pub. 541 and Property Exchanged for Enter “Free File” in the search box to see
Stock in Pub. 542. whether you can use brandname software Using online tools to help prepare your re-
to prepare and efile your federal tax return turn. Go to IRS.gov and click on the Tools bar
Corporation to partnership. An election to for free. to use these and other selfservice options.
change classification from a corporation to a Enter “VITA” in the search box, download The Earned Income Tax Credit Assistant
partnership will be treated as if the corporation the free IRS2Go app, or call determines if you are eligible for the EIC.
distributed all of its assets and liabilities to its 18009069887 to find the nearest Volun The Online EIN Application helps you get
shareholders in liquidation and the sharehold teer Income Tax Assistance or Tax Coun an employer identification number.
ers then immediately contributed all of the dis seling for the Elderly (TCE) location for free The IRS Withholding Calculator estimates
tributed assets and liabilities to a new partner tax preparation. the amount you should have withheld from
ship. Enter “TCE” in the search box, download your paycheck for federal income tax pur
For more information, see Contribution of the free IRS2Go app, or call poses.
Property in Pub. 541 and Distributions to Share 18882277669 to find the nearest Tax The First Time Homebuyer Credit Account
holders in Pub. 542. Counseling for the Elderly location for free Lookup tool provides information on your
tax preparation. repayments and account balance.
Corporation to disregarded entity. An elec The Volunteer Income Tax Assistance For help with the alternative minimum tax,
tion to change classification from a corporation (VITA) program offers free tax help to people go to IRS.gov/AMT.
to a disregarded entity will be treated as if the who generally make $54,000 or less, persons
corporation distributed all of its assets and lia with disabilities, the elderly, and limitedEng Understanding identity theft issues.
bilities to its single owner in liquidation. lishspeaking taxpayers who need help prepar Go to www.irs.gov/uac/IdentityProtection
For more information, see Distributions to ing their own tax returns. The Tax Counseling for information and videos.
Shareholders in Pub. 542. for the Elderly (TCE) program offers free tax If your SSN has been lost or stolen or you
help for all taxpayers, particularly those who are suspect you are a victim of taxrelated
Disregarded entity to corporation. An elec 60 years of age and older. TCE volunteers spe identity theft, visit www.irs.gov/identitytheft
tion to change classification from a disregarded cialize in answering questions about pensions to learn what steps you should take.
entity to a corporation will be treated as if the and retirementrelated issues unique to seniors.
owner of the disregarded entity contributed all
of the assets and liabilities to the corporation in Getting answers to your tax law Checking on the status of a refund.
exchange for stock. questions. On IRS.gov, get answers Go to www.irs.gov/refunds.
For more information, see Property Ex to your tax questions anytime, any Download the free IRS2Go app to your
changed for Stock in Pub. 542. where. smart phone and use it to check your re
Go to www.irs.gov/Help &Resources for a fund status.
variety of tools that will help you with your Call the automated refund hotline at
taxes. 18008291954.
Enter “ITA” in the search box on IRS.gov
for the Interactive Tax Assistant, a tool that Making a tax payment. The IRS uses the lat
will ask you questions on a number of tax est encryption technology so electronic
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payments are safe and secure. You can make box. Or choose the “Contact Us” option on the you throughout the process and will do every
electronic payments online, by phone, or from a IRS2Go app and search Local Offices. Before thing possible to resolve your issue. TAS can
mobile device. Paying electronically is quick, you visit, use the Locator tool to check hours help you if:
easy, and faster than mailing in a check or and services available. Your problem is causing financial difficulty
money order. Go to www.irs.gov/payments to for you, your family, or your business,
make a payment using any of the following op Watching IRS videos. The IRS Video portal You face (or your business is facing) an
tions. www.irsvideos.gov contains video and audio immediate threat of adverse action, or
IRS Direct Pay (for individual taxpayers presentations for individuals, small businesses, You’ve tried repeatedly to contact the IRS
who have a checking or savings account). and tax professionals. You’ll find video clips of but no one has responded, or the IRS
Debit or credit card (approved payment tax topics, archived versions of panel discus hasn’t responded by the date promised.
processors online or by phone). sions and Webinars, and audio archives of tax
Electronic Funds Withdrawal (available practitioner phone forums. How Can You Reach Us?
during efile).
Electronic Federal Tax Payment Sys- Getting tax information in other languages. We have offices in every state, the District of
tem (best option for businesses; enroll For taxpayers whose native language is not Columbia, and Puerto Rico. Your local advo
ment required). English, we have the following resources availa cate’s number is in your local directory and at
Check or money order. ble. www.taxpayeradvocate.irs.gov. You can also
IRS2Go provides access to mobilefriendly 1. Taxpayers can find information on IRS.gov call us at 18777774778.
payment options like IRS Direct Pay, offering in the following languages.
you a free, secure way to pay directly from your a. Spanish. How Can You Learn About Your
bank account. You can also make debit or Taxpayer Rights?
credit card payments through an approved pay b. Chinese.
The Taxpayer Bill of Rights describes ten basic
ment processor. Simply download IRS2Go from c. Vietnamese. rights that all taxpayers have when dealing with
Google Play, the Apple App Store, or the Ama
zon Appstore, and make your payments any d. Korean. the IRS. Our Tax Toolkit at
www.taxpayeradvocate.irs.gov can help you
time, anywhere. e. Russian. understand what these rights mean to you and
What if I can’t pay now? Click on the “Pay 2. The IRS Taxpayer Assistance Centers how they apply. These are your rights. Know
Your Tax Bill” icon on IRS.gov for more informa provide overthephone interpreter service them. Use them.
tion about these additional options. in over 170 languages, and the service is
Apply for an online payment agreement to available free to taxpayers. How Else Does the Taxpayer
meet your tax obligation in monthly install Advocate Service Help Taxpayers?
ments if you cannot pay your taxes in full
today. Once you complete the online proc The Taxpayer Advocate
TAS works to resolve largescale problems that
ess, you will receive immediate notification Service Is Here To Help You affect many taxpayers. If you know of one of
of whether your agreement has been ap What is the Taxpayer Advocate these broad issues, please report it to us at
proved. Service? www.irs.gov/sams.
An offer in compromise allows you to settle
your tax debt for less than the full amount The Taxpayer Advocate Service (TAS) is an in Low Income Taxpayer
you owe. Use the Offer in Compromise dependent organization within the Internal
PreQualifier to confirm your eligibility. Revenue Service that helps taxpayers and pro Clinics
tects taxpayer rights. Our job is to ensure that
Checking the status of an amended return. every taxpayer is treated fairly and that you Low Income Taxpayer Clinics (LITCs) serve in
Go to IRS.gov and click on the Tools tab and know and understand your rights under the dividuals whose income is below a certain level
then Where’s My Amended Return? Taxpayer Bill of Rights. and need to resolve tax problems such as au
dits, appeals, and tax collection disputes. Some
Understanding an IRS notice or letter. Enter clinics can provide information about taxpayer
“Understanding your notice” in the search box What Can the Taxpayer Advocate rights and responsibilities in different languages
on IRS.gov to find additional information about Service Do For You? for individuals who speak English as a second
your IRS notice or letter. language. To find a clinic near you, visit
We can help you resolve problems that you www.irs.gov/litc or see IRS Publication 4134,
Visiting the IRS. Locate the nearest Taxpayer can’t resolve with the IRS. And our service is Low Income Taxpayer Clinic List.
Assistance Center using the Office Locator tool free. If you qualify for our assistance, you will be
on IRS.gov. Enter “office locator” in the search assigned to one advocate who will work with

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                      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.
 
                                Recognition of gain or loss 2 4– Employment tax   3          Social security 
A                              Classification as a corporation 3 Excise taxes   3             number (See Taxpayer 
Assistance (See Tax help)      Classification as a disregarded                                identification number)
                                entity 2                                                     Subchapter S election       3
                               Classification as a partnership 2 I
C                              Classification election 3         Identity theft 4
Change in classification:      Classification of an LLC:                                     T
  Disregarded entity to         Default classification 2                                     Tax help 4
  corporation    4              Elected classification 2         P                           Taxpayer identification 
  Disregarded entity to                                          Publications (See Tax help)  number   3
  partnership    3 4, 
  Partnership to corporation 4 E
  Partnership to disregarded   Employer identification           S
  entity    2 4,                number (See Taxpayer             Self-employment tax 3
                                identification number)

Page 6                                                                                        Publication 3402 (June 2016)

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