Cover Sheet Department of the Treasury Internal Revenue Service Stop 6525 (SP CIS) Kansas City MO 64999-0025 Date: Name: Tax Identit ation Number TINISSN {or Social Security Number Tax period: | disagree with the changes made to my account under the "Tax calculations, payments and credits” section, Iwas advised to "contact the IRS by to resolve the errors.” Number of pages: Enclosures: Cover Page. Copy of Refund Status Results page Copy of Notice, Copy of Tax Return Identification Card Statement of Facts for Calculation on Schedule 3 lines 13z,14,15 and 1040 lines 31 and 32. Statement of Facts and Correspondence to Notice Dated: requesting rulings under the Internal Revenue Code.‘STATEMENT OF FACTS TINISSN: Greetings to all those who receive this document / To whom it may concern, This statement is “provided for more information on how the sum located on Schedule 3 lines 132,14,15 and 1040 lines 31 and 32 was calculated, which is based on the Gross Income and Expenses, to calculate the AGI. Then, add back certain Deductions to the AGI to calculate the total allowed refundable credits located on Schedule 3 lines 13z,14,15 and 1040 on lines 31 and 32 and attached are ing forms and schedules, as required.” A tax deduction reduces how much your business income is subject to taxes, by potentially putting you into a lower tax bracket. A tax credit is more straightforward in that it reduces the amount of tax owed by giving you a dollar-for-dollar reduction of your bility. “According to the Tax Guide for Small Businesses - Income reported on Schedule C (Attached) may be Qualified Business Income and Entitle you to a deduction and credits resulting in a refund for any part of the credit that is remaining after reducing the tax to Zero. It takes the income(gross), adjusts and modifies it for Certain Exemptions, Qualifications, and Allowances. These may be, Form 1040 Line 13 and refundable credits located on Schedule 3 lines 13z, 14,15 and Form 1040 Line 31,32.” Which lists additional credits to claim and some payments that may get applied. 1) Figure out the gross income, expenses/deductions and AGI for the year. 2) Add all selected Deductions or Multiply the AGI by .59 or multiply the Expenses/Deductions by 3933334 to get (Expected Value to be added to AGI) 3) Then, add back certain deductions to AGI to calculate the total allowed refundable credits located on Schedule 3 line 13z,14,15 and 1040 line 31 and 32. Taxes Owed are reduced to zero and the remaining payment is issued as a Final Refund. Tax credits serve the same function as payments to the IRS; The total Refundable Credits subtracted by the “Taxes Owed” credits the final Refund; It's important because it helps Determine what Tax would be Owed to the IRS. Refundable Tax Credits work like an overpayment. May the tax burden be less than the amount of Refundable Credits; the IRS will send the remaining payment as part of the “Tax Refund’. It's a primary figure, not only for understanding taxable income but also for Certain Qualifying Tax Credits and Deductions. If the amount of the credit exceeds a business's portion of its employment taxes, then the excess Is refunded-paid-directly back to the business. Granted to promote specific behaviors that benefit the economy, environment or anything else the government deems important. In some cases credits cover expenses you pay during the year. Which in all, results in the Refundable Credits located on lines 13z,14,15 of Schedule 3 and Form 1040 lines 31 and 32, may the tax burden be less than the amount of Refundable Credit; the IRS will send the remaining payment as part of the “Tax Refund” Signed, /s/STATEMENT OF FACTS Response to Notice Dated, TIN/SSN:. Greetings to all those who receive this document / To whom it may concern, This statement is provided in consideration of and subsequent correspondence, submitted on behalf of Trust, requesting rulings on the proper tax treatment of the income of an irrevocable trust (“Trust”) under § 671 (§§ 671-679) of the Internal Revenue Code provides that where it is specified in-subpart E of Part | of subchapter J that the grantor or another person shall-be treated as the owner of any portion of a trust. IRC Section 671 also provides that a grantor or another person includes in computing his taxable income and credits those items of income, deductions, and credits against tax which are attributable to or included in any portion of a trust of which he is treated as the owner. IRC Sections 673 through 678 set forth the rules for determining when the grantor or another person is treated as the owner of any portion of a trust. IRC § 673 Reversionary interests (a) General rule... shall be treated as the owner of any portion of a trust in which he has a reversionary interest in either the corpus or the income therefrom. LR.C. § 678(a) General Rule — A person other than the grantor shall be treated as the owner of any portion of a trust with respect to which: LR.C. § 678(a)(1) — such person has a power exerci corpus or the income therefrom in himself, or ILR.C, § 678(e) Cross Reference — For provision under which the beneficiary of trust is, treated as owner of the portion of the trust which consists of stock in an S corporation, see section 1361(d). ble solely by himself to vest the AMENDMENTS 2000--Subsec. (2). Pub. L. 106-554, substituted “an S corporation” for “an electing ‘small business corporation’ IRS Code 766 means that you have a credit on your account, which might be a result of a refund, an overpayment from a previous year, or a credit from the current year's return. The amount next to IRS Code 766 will almost always be negative because it indicates how much credit is owed to you Code 806 is a credit. This is conferring to the IRS Master File code, and it means that it, credits the tax module for excess FICA and withholding taxes claimed on the forms 1040 or 1041 return. The code 806 may also be created by appropriate line adjustment on an Examination Tax adjustment or a DP(Data Processing). IRS code 150 means that the IRS has determined the amount you owe is based on your original tax return. In most cases, it will match the amount due or refund amount you determined when you filed. Code 150 also means that the IRS has received and is processing your tax return. For the record, we wish to effect refund immediately. Signed, /s/