Schdule M again

[ChEAr$]

Just got my first reject re a $250 payment allegedly received but not recorded by us on the schedule M. It seems that if a dependent drawing SSI got the 250, since the check was issued to the parent in trust for that dependent, SSA has reported to IRS incorrectly.
In this case both parents work and are eligible for the full $800, but somebody, somewhere
(SSA? IRS?) threw a monkey wrench into the machine.

I think others have had this problem, but has IRS admitted the failure and suggested an official remediy? If so, what?

[Y2KEA]

On the thread I started about the M mightmares, the one example was a 51 y/o who draws NO SS. I think the reject problem may her her dependent mother who is collecting SS.

My theory is that the IRS computers are seeing payments to SSN's on a return but not discriminating between TP/SP/Deps.

In other words, it doesn't bother to check if the payment was to a dependent.

Since the sch M only addresses the issue of payments to TP/SP, a dependent payment should not come into play.

My solution to the reject I had was to resubmit the return with only a $250 MWP credit (as agreed to by the TP) & then hand her a 1040X claiming the additional $250. I figure show the IRS the error of their ways or let it explain why she doesn't qualify for the full $400.

[Jesse]

Thanks Harlan!

That would explain my reject - which puts my mind at ease.