- 2 -
Enlarge image
|
Form 5213 (Rev. 2-2006) Page 2
General Instructions Generally, in determining whether you are in which you engaged in the activity. If you
engaged in more than one activity, you must are an individual, your identifying number is
Purpose of Form consider all of the following: your social security number (SSN). If you are
Use Form 5213 to elect to postpone an IRS ● The similarity of the activities, other than an individual, your identifying
determination as to whether the presumption ● The business purpose that is (or might be) number is your employer identification
applies that an activity is engaged in for served by carrying on the activities separately number (EIN).
profit. or together in a trade or business or If you and your spouse filed a joint return,
investment setting, and enter both your name and your spouse’s name
General Information as they were shown on your tax return. Enter
● The organizational and economic
Generally, if you are an individual, estate, interrelationship of the activities. the SSN that was shown first on your return as
trust, partnership, or S corporation in an your identifying number.
activity not engaged in for profit, some of When To File Signature and Date
your deductions may not be allowed. File this form within 3 years after the due date Be sure to sign and date the form on the
However, an activity is presumed to be of your return (determined without extensions) appropriate line or lines. Keep a copy for your
engaged in for profit (and, therefore, for the first tax year in which you engaged in records.
deductions are not limited) if the gross the activity. However, if you received a written
income exceeds the deductions: notice that the IRS proposes to disallow
● From an activity that consists mainly of deductions attributable to an activity not Privacy Act and Paperwork Reduction Act
breeding, training, showing, or racing horses engaged in for profit (under Internal Revenue Notice. We ask for the information on this
for each of 2 or more of the tax years in the Code section 183) and you want a form to carry out the Internal Revenue laws of
period of 7 consecutive tax years ending with postponement of the determination, you must the United States. We need this information
the tax year in question or file this form within 60 days after receiving the to determine your eligibility for making the
● From any other activity for each of 3 or notice. This 60-day period does not extend election to postpone determination as to
more of the tax years in the period of 5 the 3-year period referred to above. whether the presumption applies that an
activity is engaged in for profit. If you make
consecutive tax years ending with the tax Where To File this election, you are required by Internal
year in question.
File this form with the Internal Revenue Revenue Code section 183 to provide the
For information on the limits on deductions Service Center where you are required to file information requested on this form. Under
in not-for-profit activities, see Pub. 535, your return. Do not send it in with any other section 6109, you must disclose your SSN,
Business Expenses. return because that will delay processing the individual taxpayer identification number
Who Should File election to postpone. However, if the IRS (ITIN), or EIN. Routine uses of this information
Individuals, estates, trusts, partnerships notifies you about proposing to disallow include giving it to the Department of Justice
(including limited liability companies or other deductions for an activity not engaged in for for civil and criminal litigation, and to cities,
entities that are treated as partnerships for profit, file the form with the IRS office that states, and the District of Columbia for use in
Federal tax purposes), and S corporations sent you the notification. administering their tax laws. We may also
disclose this information to other countries
should use this form if they want to postpone Automatic Extension of Period of under a tax treaty, to federal and state
an IRS determination as to whether the Limitations agencies to enforce federal nontax criminal
presumption applies that they are engaged in laws, or to federal law enforcement and
an activity for profit. An election made by a Generally, filing this form automatically intelligence agencies to combat terrorism. If
partnership or an S corporation is binding on extends the period of limitations for assessing you fail to provide this information in a timely
all persons who were partners or any income tax deficiency specifically manner, or provide incomplete or false
shareholders at any time during the attributable to the activity during any year in information, you may be liable for interest and
presumption period. the presumption period. The extension also
You may not use this form if you have been applies to partners or shareholders in the penalties.
engaged in: activity. You are not required to provide the
● Breeding, training, showing, or racing The period is extended until 2 years after information requested on a form that is
horses for more than 7 years or the due date for filing the return (determined subject to the Paperwork Reduction Act
without extensions) for the last tax year in the unless the form displays a valid OMB control
● Any other activity for more than 5 years. presumption period. For example, for an number. Books or records relating to a form
If you elect a postponement and file this activity subject to a 5-year presumption or its instructions must be retained as long as
form on time, the IRS will generally postpone period that began in 2003 and ends in 2007, their contents may become material in the
the determination until after the end of the 4th the period of limitations automatically extends administration of any Internal Revenue law.
consecutive tax year (6th tax year for an to April 15, 2010, for all tax years in the Generally, tax returns and return information
activity that consists mainly of breeding, presumption period that would otherwise are confidential, as required by Code section
training, showing, or racing horses) after the expire before that date. Periods of limitations 6103.
tax year in which you first engaged in the for tax years in the 5-year period expiring The time needed to complete and file this
activity. This period of 5 (or 7) tax years is after April 15, 2010, would remain open until form will vary depending on individual
called the “presumption period.” The election their normal expiration date. However, early circumstances. The estimated burden for
to postpone covers the entire presumption termination of the presumption period does individual taxpayers filing this form is
period. not terminate the automatic extension of the approved under OMB control number
period of limitations. 1545-0074 and is included in the estimates
Joint Returns shown in the instructions for their individual
The automatic extension applies only to
If you and your spouse filed a joint return, those deductions attributable to the activity income tax return. The estimated burden for
both of you must elect to postpone the and to any deductions (such as medical all other taxpayers who file this form is shown
determination even if only one of you is expenses or charitable contribution below.
engaged in the activity. deductions) that are affected by changes Recordkeeping 7 min.
How Many Forms To File made to adjusted gross income. Learning about the
The automatic extension does not affect law or the form 10 min.
Generally, if you want a postponement for
more than one activity, you must file a general waivers of the statute of limitations Preparing the form 10 min.
separate Form 5213 for each activity. that may be executed. Copying, assembling, and
However, you may file one form for more than sending the form to the IRS 20 min.
one activity if all of the activities have the Specific Instructions If you have comments concerning the
same presumption period. Be sure to Name and Identifying Number as accuracy of these time estimates or
describe each activity in detail and list the Shown on Tax Return suggestions for making this form simpler, we
first tax year in which you were engaged in would be happy to hear from you. See the
the activities. Enter your name(s) and identifying number as instructions for the tax return with which this
shown on your tax return for the first tax year form is filed.
|
