Stimulus Payment. Never Filed in the last 5 years.

[ATSMAN]

My new client told me today that her boyfriend is a disabled cop who is getting a municipal disability payment because he was hurt on the job and the taxable portion is like $1200 per year. His gross is $42,000 BUT he was advised by the police union that because it is a disability pension and the taxable amount is well below threshold he did not have to file taxes. Besides the state does not tax municipal pensions so he did not have to file a state tax return also. He does not get any social security income.

So he has not filed any tax returns in the last 5 years and did not get the EIP1, EIP2 or EIP3. His girlfriend got all three of them so they called the police union rep and the told them that he will have to now file tax returns starting with 2019 to get any stimulus money. Ok. I can do that but then does he have to keep on filing to avoid any IRS notices??

I know last year there was a website under IRS that you could register to get the stimulus payment if you never filed but I don't see it this year? I am assuming the RRC worksheet is the only option, but then what about EIP3?

[Lion]

File a 2020 federal return to get RRC1 and RRC2. When that return is processed, he'll get EIP3. Tell him to call you next year to find out if any new laws would benefit him if he files a 2021 federal return. Or, put it on your calendar to contact him. That might make his girlfriend a happy client for life and good source of referrals. And, make the boyfriend a happy cop who refers you to all his colleagues.

[Rapid Robert]

Pretty sure the IRS has extensive FAQs at the web site to explain how non-filers can get RRC for TY2020 (corresponding to EIP1 and EIP2) and TY2021 (EIP3). Plus, once they file for 2020, the EIP3 is supposed to be automatically issued.

Ok. I can do that but then does he have to keep on filing to avoid any IRS notices??

Why does he need to avoid IRS notices? Can't he read and follow instructions on the notice to respond?

[ATSMAN]

I just filed his 2020 tax return. If need be I will file 2019, 2018 and 2017. There were no Fed taxes withheld so it will only be filed if IRS forces him to file previous returns.

>> Why does he need to avoid IRS notices? Can't he read and follow instructions on the notice to respond?

I try to stay clear of those nasty things. Causes much anxiety with my clients and then it affects me!

[Burke]

He will not be "forced" to file previous returns if his income did not require filing. And the IRS won't do so in the future either. He won't get any notices about failure to file unless there is income reported to them that would require it. Lion has the right response. Help your client out and make two people happy......

[ATSMAN]

I think he is going to be ok. I did explain that his income is below the filing threshold and this year was the exception to claim the Stimulus.