1040x

[Burke]

I did a 1040X for a client and we mailed it in just in time for the pandemic shutdown. 8/2/20 she gets the entire thing back with Form 8009-A asking for Form 1098-T as they didn't get it from the school. We have a copy, but is this normal procedure now? Returning the entire return? Also, the actual form 1098-T (downloaded from her school account) has nothing in any of the boxes, including Box 1. But all the payments are shown below the form in date order.

[Rapid Robert]

There are a number of references to Form 8009 in the IRM. Here's one that might be relevant:

"If the 1040X is missing forms, schedules, signature or other information, the 1040X will be returned to the taxpayer with the appropriate "C" letter or Form 8009-A. The account will reflect TC 971 and AC 270. The date of the 270 is the date the action occurred returning the 1040X. If three weeks has passed from the date of the 270 and the taxpayer has not received the rejected 1040X, inform the taxpayer to refile the completed 1040X. A completed 1040X must include all schedules, forms and signature. SP does not have access to AMS or the Correspondence Imaging System (CIS) and does not have the capability of leaving a case note."

Assuming this is related to a refundable education credit, it may be that the extra preparer due diligence and other requirements are perhaps not being met. After all, Form 1098-T Box 1 was made mandatory many years ago (although the IRS kept on granting waivers for the first 3 years or so after it was made mandatory by law). Hopefully the form you have is considered a valid substitute Form 1098-T.

Is it possible that no original Form 1040 was filed (including paper filed that have not been processed yet?)

Unlike an original return, as you probably know a 1040X is an administrative process granted by the IRS, not required under the law, so rather than try to enter an incomplete amended return in their system and then have it sitting around while waiting for a response, it is easier for them to just wait until everything needed to process the return is available before entering it.

[TaxGuyBill]

Your client should contact the college about the 1098-T and ask them why there isn't anything in Box 1 when it seems clear that payments WERE made. It seems like the college should correct it.

[Burke]

The 8009 apparently simply said to send in a copy of the 1098-T (which we have, but did not attach to the original 1040X). Form 8863 was attached. If I ever have another one like this, I will send 1098-T. Original return was efiled, and refund received. Education credit was not claimed on original return, but it is not a refundable credit, it is Lifetime Credit. Client is mailing me the entire package the IRS sent. I agree with TGB, the college messed up on this one.