Did they get the $250??

[Edsel]

This has been discussed on numerous threads, so I will hope for a very succinct answer.
I think it has been concluded that most people who don't remember getting their $250 are mistaken, and they really DID receive the money. We have also been told that if we prepare the Schedule M incorrectly, the IRS has the resources to correct the return.

...and someone has very obviously observed that if the IRS has the information, why don't they create a website which gives you the "black and white" before you even commit to preparing the return. (Like they did last year for the stimulous payment).

My question: Does such a website exist?

I have already been given two such websites which purportedly answers the question definitively. One of them is impossible to figure out how to navigate to the answer, and the other doesn't even address the issue. To my way of thinking, the most obvious agency to create such a website would be the SSA.

[gkaiseril]

From the horse's mouth:

"Taxpayers who can't recall if they received the economic recovery payment should contact their respective agency for confirmation before completing and filing their 2009 tax return in 2010. The IRS will not be able to provide this information. If a taxpayer needs to know whether they got a payment they should contact their respective agency personally."

http://www.irs.gov/newsroom/article/0,,id=204468,00.html

[Edsel]

IRS Bails Out

Thanks Mr. Kaiser - and I have been to the website on your link, where essentially it says the IRS is not touching the information, and refers you to the SSA, giving you a link where you can't get past their firewall...

In all honesty, the $250 actually came from the SSA this year and not the IRS, so I really don't blame them for bailing out. However, none of this solves the problems of practitioners and IRS is going to be in the position of having to correct hundreds of thousands of returns if we don't have access to the correct information.

[taxea]

In an effort to avoid any issues that may pop up, I will require my client to obtain documentation of the payment from SSA. Only then would I be willing to include the payment on the tax return.

[gkaiseril]

1. The IRS can not set up a public access site for this information because of confidentiality.
2. Tax preparers can not get this information form the agencies, only the taxpayer can.
3. Many clients will not remember if they have received the payment.

We are all suffering from this problem.

For clients the receive one of the pensions or disability payments, have a letter explaining the problem and provide instructions on how they can obtain the data either from their bank statements or from the appropriate agency, most likely by a phone call or visit to a service office. If they can not obtain the data explain how you are going to handle it and what can expect to have happen.

[Edsel]

Privacy

If what you say about privacy is true, then there should never have been a website for the stimulous payment last year.

One guy (or gal) made the observation that if someone began receiving SS benefits in March 2009 or later, they would not have received the $250. If they were receiving benefits prior to March 2009 we could be assured that they DID receive the money.

This approach is not very assuring, but it may be more definitive and helpful than anything else out there so far. One thing is for sure, we can't depend upon what most clients tell us.

[BP.]

If what you say about privacy is true, then there should never have been a website for the stimulous payment last year.

Yes, and of course we do have the "Where's My Refund?" button on irs.gov.

[joanmcq]

Pretty much if they fell into the guidelines for getting the $250, they got it. It appears, at least from a coworker who efiled one and forgot to include the $250, the return rejected. So if they did not get it because they qualified for SS after March, you may have to paper file.

[AJsTax]

your approach seems backwards

In an effort to avoid any issues that may pop up, I will require my client to obtain documentation of the payment from SSA. Only then would I be willing to include the payment on the tax return.

to me. If the individual was qualified to receive SS benefits in Nov or Dec 08 or Jan 09, they should have received the payment. If they started benefits after that date they are not eligible. Therefore all who were eligible should be marked as receiving the payment. If their income is only SS, it does not matter anyways, it does not affect their return. If they have earned income and you do not mark the box they might receive too much of the make work pay credit. If you do mark the box that they received the payment and they have earned income, but did not actually qualify to receive the stimulus payment, they will receive an extra 250 refund.
So everyone that had SS in 2009 and earlier should be marked as having received the payment. No documentation is required.

[S T]

Thank you AJ

Your approach (excluding your quoted poster), seems to be more appropriate, we do know what the "qualifications" state and there is a presumption on our part, if the t/p can not affirm receipt. Might be some exceptions for certain taxpayers, but I would think those exceptions would be a rare occasion.

Guess I take a different approach with my clients than some tax professionals, I do try to offer service, assistance, and make it as easy as possible for them , not make it difficult, I also believe, that we have to remember that we are working with some senior groups that it is very difficult for them to gather documents - take a look at what they have to deal with on their medical and the medicare insurance billings

Sometimes it is a wonder that some of these Senior Groups can gather all of their tax documents at the end of tax filing seaons.

very sad that SSA and IRS did not provide the "tools" for us to verify the $250 as they produced a form that is to be completed and an integral part of the tax return.

I guess only when we submit to efile or file a paper return will we know if we were right or wrong in our presumptions. Somehow, IRS has a tool. Wish they would let us know what that was.

Sandy

[JG EA]

Pretty much if they fell into the guidelines for getting the $250, they got it. It appears, at least from a coworker who efiled one and forgot to include the $250, the return rejected. So if they did not get it because they qualified for SS after March, you may have to paper file.

OK now I'm confused. Why would they have to paper file. It is not something they will get now. They get the $400 if enough earned income, but they don't get $250 if started SS after a certain date and no earned income. Right? Or do you mean they won't remember when they started and you don't want to have any reject?

Actually that is an issue - to find out when they started. But if they started this year and can't remember when or whether they got the $250, maybe I'll ask them to contact their bank or statements and find out. But for everyone else, I'm going to assume they got it. I don't like rejects, but it is better than having everyone try to find this out.

[BHoffman]

We can always ask Magic 8 Ball:

http://web.ics.purdue.edu/~ssanty/cgi-bin/eightball.cgi

[David1980]

You can file any return and get the correct amount with only two IRS rejects (worst case.)

File the first time, put down what taxpayer said they got.

It will go through, or it won't.

File it again, this time change the answer. If taxpayer said they didn't get it, they probably did and just don't remember. Add $250 to Sch M.

It will go through, or it won't.

If they're MFJ, there's the possibility they could have gotten $500 ($250 each). File it however you haven't filed it yet.

It will go through.

The correct amount is either $0, $250, or $500. I simply have given up caring too much about it. Yes, it would be nice to get it right the first time. But I don't feel having a return reject makes me less of a preparer or has any real harm. Fix it and retransmit.