Tax Form for Economic Rebate

[TonyP]

I live and work in an area that has a lot of retirees. Many senior ciitizens don't file because if they're married and both are over 65 years of age the filing requirement starts at $19,600 of taxable income. I've read that you can file a claim for a rebate if you don't meet the requirement to file a return (1040/1040A). Can some inform me what the IRS form number is for that pupose, and does ATX have such a form in their library? If they do, can this form be efiled? Thanks.

[OldJack]

That person should file form 1040A and write the words “Stimulus Payment” across the top of the form you file.

see the IRS example by clicking on the link "Sample of filled-out Form 1040A" at:

http://www.irs.gov/irs/article/0,,id=177937,00.html

[JohnH]

One small item worth noting is that the sample form on the IRS web site does not show any "Filing Status" checked even though there are two names on the 1040A. However, in other written instructions elsewhere they do instruct that the "Filing Status" shouold be checked.

[TonyP]

That person should file form 1040A and write the words “Stimulus Payment” across the top of the form you file.

see the IRS example by clicking on the link "Sample of filled-out Form 1040A" at:

http://www.irs.gov/irs/article/0,,id=177937,00.html

Do you paper-file that 1040A or can you unprotect the 1040A within ATX, write "Stimulus Payment" at the top of the 1040A, protect it and then e-file? Should work, unless it comes back as a reject. Anyone tried it as yet?

[mcb39]

The local IRS walk-in service center says that it MUST be paper filed and that you absolutely cannot put in $1 to make it be accepted as an e-file. She said that caused some sort of glitch.

[Jack from Ohio]

The local IRS walk-in service center says that it MUST be paper filed and that you absolutely cannot put in $1 to make it be accepted as an e-file. She said that caused some sort of glitch.

Did you ask the IRS person what would happen if the person had more than $1 of other income? Would it still not "process?" I am of the mind that the IRS does NOT KNOW what will work or what will not.

If a retired taxpaying couple had $21,000 in SS earnings, $800 of interest income, and $1,500 of W-2 income, could the 1040A be e-filed? Could we file a 1040 with all the information to get the taxpayers into the system for the stimulus payment? Has the IRS been "ignoring" all the "information returns" where there is no tax liability? I have a notion that when the second letter from the IRS telling who is eligible, and how much they will receive, start arriving in mailboxes, lots of people are going to be disappointed, and I am not going to put myself in the position to be told... "But you said I would qualify."

Another thought, how would someone at the IRS entering the information from a paper return into their system, be any different from us e-filing the same information?

[TAXMAN]

Hey maybe we should check out REV proc 2008-21 section 4 and 5. I just found this on IRS web site. Thanks

[Jack from Ohio]

Hey maybe we should check out REV proc 2008-21 section 4 and 5. I just found this on IRS web site. Thanks

<<For now, taxpayers in this group filing a tax return can only file a paper copy of the Form 1040 or Form 1040A. The IRS is working to update its systems to accept electronic versions of these limited-information returns for taxpayers who otherwise have no need to file a tax return. The IRS is also working with the software community to handle these returns electronically at a future date.>>

My question still stands. Has the IRS system been "ignoring" these types of returns in the past? It would seem that the "system" has not been able to accept "limited-information" returns. I would like to know the definition of "limited-information." What if a taxpayer has enough W-2 income to qualify for the rebate, but not enough to be taxable? Is this a "limited-information" return? The Practitioner Priority Line person could not answer these questions for me with more than "we will just have to wait and see."

[SCL]

regarding jack from ohio's example.

i'm wondering (asking), why that return - as a regular efile with 0 tax liability - could not generate the min 300x2 rebate - without having to dummy up some exception/example 1040 or 1040a.

[ajuroff]

Did you ask the IRS person what would happen if the person had more than $1 of other income? Would it still not "process?" I am of the mind that the IRS does NOT KNOW what will work or what will not.

If a retired taxpaying couple had $21,000 in SS earnings, $800 of interest income, and $1,500 of W-2 income, could the 1040A be e-filed? Could we file a 1040 with all the information to get the taxpayers into the system for the stimulus payment? Has the IRS been "ignoring" all the "information returns" where there is no tax liability? I have a notion that when the second letter from the IRS telling who is eligible, and how much they will receive, start arriving in mailboxes, lots of people are going to be disappointed, and I am not going to put myself in the position to be told... "But you said I would qualify."

Another thought, how would someone at the IRS entering the information from a paper return into their system, be any different from us e-filing the same information?

I'm curious about this also. I've had seniors with SS earnings and a little bit of interest income. I've e-filed them through and they have been accepted. If these returns are "ignored", do they need to send in a paper return? It seems like this would cause a huge problem.

[Janitor Bob]

I'm curious about this also. I've had seniors with SS earnings and a little bit of interest income. I've e-filed them through and they have been accepted. If these returns are "ignored", do they need to send in a paper return? It seems like this would cause a huge problem.

Wondering the exact same thing here.....Surely these "normal" filers will not have to file again on some special form just to be considered for the rebate.

[JohnH]

No, normal filers will not have to re-file for the rebate (unless maybe they had a small amount of taxable income & tax due and omitted showing the SocSec on line 20a). The special stimulus return is only for those who have no filing requirement.

[ajuroff]

The local IRS walk-in service center says that it MUST be paper filed and that you absolutely cannot put in $1 to make it be accepted as an e-file. She said that caused some sort of glitch.

And if the client had only SS and $1 in interest and I have already e-filed them through and the return has been accepted?

[MontanaEA]

Here's today's news from the IRS:

Revenue Procedure 2008-21 provides that the IRS will not challenge the accuracy of income tax returns filed in compliance with Notice 2008-28 by eligible individuals who enter $1.00 in adjusted gross income solely for purposes of effectuating the electronic filing of the return. It will be published in IRB 2008-12 dated March 10, 2008.

The Rev Proc is pretty long, so I didn't paste it here, but if you're interested, it's available at E-News for Professionals at the IRS website.