H&R Block Income Tax Course

Closed Year - A tax year for which the statute of limitations has expired. Open Year - A taxable year for which the statute of limitations has not yet expired. Failure-to-File Penalty - Generally 5% for each month or part of a month the return is late, but not more than 25% of the tax not paid. Failure to File - Taxpayer fails to file the return by the due date, and there is a balance due. Form 1040X - Amended U.S. Individual Income Tax Return When can an amended return be filed? - Within three years of the date the original return was filed, or within two years of the date the tax was paid, whichever is later. Can the 1040X be e-filed? - No. Portfolio Income and Losses - Those from such sources as dividends, interest, capital gains and losses, and royalties. Schedule E - Supplemental Income and Loss Royalty - Payments received for the right to extract natural resources from the taxpayer's property or to use a taxpayer's literary, musical, or artistic creation