Just got this about stimulus package

[bertrans]

To draw this train of thought even further: a stimulus return, where no taxable income is reported, is deemed an information return. Payer documents (W-2s, 1099's, etc) are also information returns. If the payer hires someone to prepare those information returns, would not that preparer be subject to preparer penalties? And, draw the conclusion.

[Bees Knees]

This is getting ridiculous….

Why in the world is everyone going all nuts over this????

Stimulus return?????

An altered 1040A with interest blocked out????

What a bunch of baloney. That’s when you start making errors and causing all kinds of extra headaches and hassles. I will never fill out a 1040A, or 1040EZ, or 1040T, or 1040stimulus.

Put it on a 1040, like 100% of every other return you file. If it can't be e-filed, who cares??? Charge extra for the hassle of printing the thing out.

I don't understand why this has to be sooooo complicated. No other profession bends over backwards like some of you do trying to help someone not have to pay for all the time and effort it takes to fill out a simple return.

We are not a charity, folks, so stop acting like one. It is not our fault taxes have to be this complicated. If it takes you an hour because it can't be e-filed, just so that little old lady with $4,000 of SS gets her $300 rebate check, then charge her for that hour.

[Zee]

Bees-

I don't think everyone is going "nuts" about the tightening of Circular 230 requirements and the possibility of substantial preparer penalties for non-disclosure. It just venting frustration. Preparers are being required to become the policeman of the IRS and threatened with penalties if they don't comply.

As such, these little debates are twofold. They're kinda interesting because they show the amount of apprehension out there. They provide an opportunity to vent.

As I said before, I prefer to e-file all returns. I think the other poster's idea of adding $1 of phantom interest to ensure acceptance is a good one, and has minimal risk of adding any kind of preparer penalty.

I don't think we've reached the paranoia stage you suggest, posts like this are just another way to rid ourselves of frustrations, etc.

[LawrenceGR]

Perhaps

The software companies can alter the program so that instend of printing "So & So deceased on XX-XX-XXXX" it can print "Stimulus Return"

[JohnH]

ATX Users Can Customize

ATX users can create a customized 1040 with the wording entered at the top of the page, save it as a master with a different name, and open it to generate a printed copy for each affected client. (This probably won't work for e-flinging)

[bertrans]

I'm with Bees.

The term 'stimulus return' is what I call a 'vox nullius' i.e. 'an empty sound' that SIGNIFIES DIDDLY. Consider this: do you think the IRS is going to issue 'Stimulus Returns' where the jurat has ascended into the heavens? Do you? It is a tax return; you prepare it: you sign it: you'll do it right. As professionals, we should OWN the return, so to speak.

[Bees Knees]

As I said before, I prefer to e-file all returns. I think the other poster's idea of adding $1 of phantom interest to ensure acceptance is a good one, and has minimal risk of adding any kind of preparer penalty.

I raised my price $35 per return across the board when MN required all of us to e-file. Now I will raise my price $35 per return for everyone I can't e-file.

I had to pay more for my software when I first had to e-file. Now I have to spend more time on returns I can't e-file.

Do what you want, but I'm not doing tax returns for charity. I would rather spend the time in my recording studio than filling out tax returns. So I intend to charge for all the "extra" work this stimulus thing is causing. Rather than make up bogus income just to save time e-filing, why not charge the customer to do it right. You're in business to prepare tax returns, why not act like a business and capitalize on the government's stupidity.

[BP.]

Put it on a 1040, like 100% of every other return you file. If it can't be e-filed, who cares???

Yep

We are not a charity, folks, so stop acting like one. It is not our fault taxes have to be this complicated.

True

[JohnH]

I'm on the fence on this one

It may actually be only a "Stimulus Payment" claim rather than a return.
If you look closely at the example the IRS put up, you'll see that it doesn't even require the taxpayer to select a filing status. It also instructs them to enter any S/E earnings on line 7, which is not where that info would normally go. Whatever this form may be, it's clearly not a normal tax return.

I don't plan to do a lot of these (only for relatives of existing clients, family members, etc), but the ones I do file will be prepared exactly the way the IRS says to complete them. I only paper file but even if I were an eflinger I'd still prepare these on paper unless the IRS provides some clear instructions to do otherwise. It seems to me that fudging the numbers just to facilitate an e-file could have the effect of turning a "Stimulus Payment Claim" into a tax return with all the associated liability issues.

[Fuzzy Faced Leader]

The 1040A example from the IRS only applies to those with only SSA, railroad, or veteran disability payments. But if the taxpayer has other income, such as interest, it has to also be added, and this turns the return into an actual tax return. The return, once filed, could be compared with the 1099's received with that SSN, and if it's not included, could result in a hold-up of the rebate. IMHO let's treat these returns like all other returns, and charge extra for adding "Stimulus Payment" accross the top.

[JohnH]

I respectfully disagree for three reasons:
1) The example has this curious instruction to write certain non-W-2 income on Line 7 where it normally does not belong. They have demonstrated that it isn't intended to be a normal tax return.
2) See paragraph 3 from the instructions copied below - it clearly states that it "shows the limited number of lines that will need to be filled out..."
3) I'm never in favor of providing more information than that to which they are entitled.

Until or unless IRS changes what they say, I'm going to follow their instructions and not give them any additional information on a speculative basis.

From the instructions:

>> The special version of the Form 1040A unveiled today on IRS.gov shows taxpayers in these groups the specific sections of the form they need to fill out to qualify for the stimulus payment. The mock-up is designed to be used as a guide for filling out an actual Form 1040A.

“People who don’t normally need to file have a roadmap on how to fill out the Form 1040A quickly and easily,” Stiff said. “We encourage recipients of Social Security and veterans’ benefits who don’t normally need to file a tax return to use this mock-up of the form as a guide to help them get their stimulus payment.”

The Form 1040A illustration on IRS.gov shows the limited number of lines that will need to be filled out for recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits. A key line is reporting their 2007 benefits on Line 14a of Form 1040A. The IRS reminds taxpayers they can also use Line 20a on Form 1040 to report these same benefits.

In addition, taxpayers in these groups should write the words “Stimulus Payment” at the top of the 1040A or 1040. <<<

[BOB W]

One of my IRS employee just came in and the checks/DD are going in order of the last 2 digits of the SS #.

[Zee]

Bertrans posted this in a another thread.

The 02/18 issue of Federal Tax Weekly says that the IRS will depend "heavily' on direct deposit; 'bulk' of rebate refunds are to go out, in SSN last 2 digit order, by end of August.

This is a reliable CCH publication. I thought the rebates would go to the earlier filers first, I guess that's incorrect unless you're both early and have the right last two digits of your SS number.

[bertrans]

I respectfully disagree for three reasons:
1) The example has this curious instruction to write certain non-W-2 income on Line 7 where it normally does not belong. They have demonstrated that it isn't intended to be a normal tax return.
2) See paragraph 3 from the instructions copied below - it clearly states that it "shows the limited number of lines that will need to be filled out..."
3) I'm never in favor of providing more information than that to which they are entitled.

Until or unless IRS changes what they say, I'm going to follow their instructions and not give them any additional information on a speculative basis.

From the instructions:

>> The special version of the Form 1040A unveiled today on IRS.gov shows taxpayers in these groups the specific sections of the form they need to fill out to qualify for the stimulus payment. The mock-up is designed to be used as a guide for filling out an actual Form 1040A.

“People who don’t normally need to file have a roadmap on how to fill out the Form 1040A quickly and easily,” Stiff said. “We encourage recipients of Social Security and veterans’ benefits who don’t normally need to file a tax return to use this mock-up of the form as a guide to help them get their stimulus payment.”

The Form 1040A illustration on IRS.gov shows the limited number of lines that will need to be filled out for recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits. A key line is reporting their 2007 benefits on Line 14a of Form 1040A. The IRS reminds taxpayers they can also use Line 20a on Form 1040 to report these same benefits.

In addition, taxpayers in these groups should write the words “Stimulus Payment” at the top of the 1040A or 1040. <<<

Since the instructions give unusual, well, instructions for what to put where, the words 'Stimulus Payment' must be written across the top, to ensure correct processing - and no later questions about why you put SE income on l. 7, why no filing status, etc. That means, in turn, paper return is necessary in that situation.

In any event, the jurat is still there - unless, of course, the IRS 'special instructions' tell us to 'disregard it' ....