Unfiled Returns

[Christian]

A client who has always filed his taxes late has come in bringing his 2020 and 2021 info. I asked if he and spouse had received the EIP payments which most folks got. The reply was they had gotten none. Are these payments still available as credits on these late filed returns. I am wondering if the program has been closed out at this point. The husband is a one of a kind individual and stated flatly he did not care if he got the payments or not. He has for years left refunds on file with the Service to hold against any future tax payments. I am wondering if the Service may simply compute the applicable EIPs and send them to them. Would appreciate any thoughts as I am sorta lost in space on this one.

[jklcpa]

The EIP payments 1 & 2 were advances of the recovery rebate credit that could be claimed on the 2020 return, and any advances received were treated as a reconciling item of that credit. The credit is still available to the taxpayer.

The credit for 2021 is handled in a similar manner.

This page should answer:

https://www.irs.gov/newsroom/recovery-rebate-credit

[Max W]

What I have done in cases like this is to indicate that the EIP pmts were NOT received.  The IRS will review the return and adjust it accordingly, if the EIP was paid, without penalty.  It does lengthen the processing of the return to about 10 weeks.

I don't understand what you mean "He leaves his refunds on file".    Are you saying that each year his returns have the refunds carried over to the next year?

[Christian]

Yes that is exactly what my instructions were.